ASEAN and China signed the Framework Agreement on Comprehensive Economic Co-operation in November, 2002. The Parties, on the basis of this Framework Agreement, signed the Agreement on Trade in Goods (effective from July, 2005), Agreement on Trade in Services (effective from July, 2005), and Agreement on Investment (effective from February, 2010) with the aim of establishing an ASEAN –

China Free Trade Area. In Nov 2015, ASEAN and China signed the Protocol to Amend the ACFTA and Certain Agreements thereunder between ASEAN and China, including some new commitments in terms of Goods, Services and Investment. This Protocol came into force in May 2016.

Vietnam’s commitment in ACFTA

• Vietnam commits to eliminate 90% of tariff lines within 10 years, flexibly until the final year of schedule in 2018. The remaining tariff lines Vietnam commits to reduce from 5% to 50% by the end of the schedule is 2020.
• From January 1, 2015, Vietnam cut another 3691 tariff lines to 0% compared to 2014 (the number of tariff lines cut to 0% was 7983 lines, accounting for 84.11% of the total tariff table), focusing on commodity group: plastic & plastic raw materials, furniture & wood products, machinery and equipment, spare parts, computers and electronic components products, garment fabrics, raw materials textile materials, footwear, textile products, and some iron and steel products. Tax rates in 2016 and 2017 remained the same compared to 2015.
• From January 1, 2018, there were 588 more tariff lines cut to 0%, bringing the number of tariff lines cut to 0% to 8571 lines, accounting for 90.3% of the total list, including some meat and processed products, products from vegetables and fruits, cereals, electric motors, household goods, chemicals, auto parts, construction materials, plastic, rubber, paper...
• By 2020, about 475 sensitive tarriff lines will be reduced to 5%, including iron and steel products, electric cables, and household electrical products; rubber products, ceramics, paper, cement, plastic and other industrial products; processed agricultural products; some lines of trucks and specialized vehicles...
• Tariff lines that maintain high rates or do not commit to tariff reductions include 456 tariff lines, including: poultry eggs, sugar, tobacco, engines, means of transport (cars, motorbikes, excluding trucks 6-) 10 tons), petroleum, iron and steel, construction materials, some items related to national security.

China’s commitment

• China committed to eliminate tariffs for 95% of tariff lines by 2011. The remaining number of sensitive tariff lines, China committed to reduce 5% to 50% by the end of the roadmap in 2018.
• By 2015, there were 7845 tariff lines cut to 0%, accounting for 95.35% of total tariff lines and accounting for 91.59% of total import turnover from Vietnam. The average tax rate of China's tariff for ASEAN for the period 2015-2017 is 0.73%/year and in 2018 is 0.56%/year.
• Some Chinese products still maintain tax rates, including cereals and grain products; coffee, tea, spices; Petroleum; fertilizers of all kinds; plastic raw materials; apparel fabrics; textile and footwear materials; engines, machinery and equipment; automobiles, engines, auto parts; furniture...

Framework Agreement on Comprehensive Economic Co-Operation

Protocol 1 to Amend the Framework Agreement

             Appendix 1 Rules of Origin

Appendix 2 Exclusion List of a Party for Products Excluded from the Early Harvest Program Under Article 6.3.a.i

Appendix 3 Specific Products covered by the Early Harvest Program Under Article 6.3.a.iii

Protocol 2 to Amend the Framework Agreement

Protocol 3 to Amend the Framework Agreement

Agreement on Dispute Settlement Mechanism of the Framework Agreement

Agreement on Trade in Goods of the Framework Agreement

Annex 1 Modality for Tariff Reduction & Elimination for Tariff Lines Placed in the Normal Track

Annex 2 Modality for Tariff Reduction & Elimination for Tariff Lines Placed in the Sensitive Track

Annex 3 Rules of Origin for ACFTA

Protocol 1 to Amend the Agreement on Trade in Goods

Annex to Protocol 1 to Amend the Trade in Goods Agreement

Protocol 2 to Amend the Agreement on Trade in Goods

Annex 1 to  Protocol 2 Revised Operational Certification Procedures for ROO

Annex 2 to Protocol 2 CO Form E (ASEAN version)

Annex 2a to Protocol 2 Overleaf Notes

Protocol to TBT and SPM

Tariff Reduction Schedule

Brunei Darussalam

Cambodia

China

Indonesia

Lao PDR

Malaysia

Myanmar

Philippines

Thailand

Singapore

Viet Nam

Agreement on Trade in Services of the Framework Agreement

1st Package

Brunei Darussalam

Cambodia

China

Indonesia

Lao PDR

Malaysia

Myanmar

Philippines

Thailand

Singapore

Viet Nam

2nd Package

Protocol to Implement 2nd Package of Specific Commitments

Cover and Headnote

Brunei Darussalam

Cambodia

China

Indonesia

Lao PDR

Malaysia

Myanmar

Philippines

Thailand

Singapore

Viet Nam

Agreement on Investment of the Framework Agreement

Protocol to Amend the Framework Agreement & Certain Agreements thereunder

Other related document

Memorandum of Understanding in the field of Intellectual Property

Memorandum of Understanding in the field of Standards, Technical Regulations and Conformity Assessment

Memorandum of Understanding between ASEAN and the Ministry of Agriculture of China on Agricultural Cooperation

Overview of Asean-China

• For the process of certifying and inspecting the origin of goods: Regarding the time limit for replying, checking and verifying the origin of goods, in case the agency or organization issuing C/O of the exporting country does not reply within 90 days after receiving the request for verification from the customs authority of the importing country, the agency or organization issuing the C/O of the exporting country may send a written request for an extension of 90 days.
• For Product Specific Rules (PSR): In addition to the general rules of origin, the PSR is built on the HS Version 2017, adding origin criteria for many products.

ASEAN countries and China have not yet concluded negotiations on services within the ACFTA. Currently, the member countries are negotiating package 2 on services. Vietnam's commitments in package 1 are equivalent to WTO commitments.