Explanatory Memorandum
Circulated By Authority of the Minister for Home Affairs, the Honourable Brendan O'Connor MpANNEX C
SUMMARY OF AANZFTA TARIFF COMMITMENTS
1. Following is a summary of the tariff outcomes for individual product sectors in relation to the four largest ASEAN markets with which Australia does not currently have an FTA, i.e. Indonesia, Malaysia, the Philippines and Vietnam.
Agriculture and Fisheries Products
Live Animals and Meat
2. Indonesia will bind its current tariff-free treatment for most livestock at entry-into-force (EIF). It will eliminate its 5% tariff on other livestock tariff lines in 2010, except for one live animals line (asses, mules etc) which is excluded from tariff commitments and 'other' live bovine animals, for which the 5% tariff will be reduced to 2.5% in 2025. Most meat tariffs (generally at 5%) will be eliminated in 2010. However, tariffs on some lines will be eliminated in 2020, and there is a small number of lines that will be excluded from tariff commitments, including some frozen sheepmeat lines (other cuts with bone-in, and boneless) with significant trade, and 1 frozen beef line (other cuts, bone-in), or which will be subject to a reduction in the tariff from 5% to 2.5% in 2025 (some sheepmeat lines) or phase to 3.75% (1 pigmeat line). Tariffs of 25% on frozen chicken thighs will be reduced to 12.5% in 2025. Tariffs of 5% on most meat preparations will be eliminated in 2010, while the 5% tariff on one line reduces to 4% in 2015 and will be eliminated in 2023.
3. Malaysia will bind its current tariff-free treatment for most livestock and most meat lines. Country-specific tariff quota access will be provided for Australia in relation to 4 live animal lines (live swine other than pure bred, day old chicks and chickens) and 6 meat lines (meat of pork and chicken), with elimination of the in-quota tariff rate by 2013 and reduction of the out-of-quota tariff rate. Tariffs of 0% on most meat preparations will be bound at 0% on EIF, with tariffs of 15% and 20% phasing to 0% by 2012 or 2020.
4. The Philippines will eliminate most of its livestock tariffs, ranging from 1% for sheep and goats (for breeding) and 3% for bovine animals (that are to be eliminated in 2010) to 35% or 40% for other livestock. Tariffs of 40% on goats, other than for breeding, phase to 5% by 2018. Tariffs of 40% on poultry will phase to 0% by 2013 or 2020 for some lines, or to 5% or 32% for other lines. The Philippines will also eliminate its 5% tariff on sheepmeat in 2010, and its 10% tariff on beef in 2012, while tariffs on beef offal will be eliminated in 2011, 2012 or 2019. Tariffs of 35% on goat meat will phase to 5% by 2018. For most fresh or chilled pork, tariffs of 40% will be reduced and eliminated by 2020. For the remaining 16 pork tariff lines, covering frozen pork and fresh or chilled boneless cuts, tariffs will reduce to 32% in one step in 2020. Tariffs of 5-10% on pork offal will be eliminated by 2011 or 2012; but the tariff of 5% on pork liver will reduce from 5% to 4% in 2015. For meat preparations, tariffs of 30%, 35% or 40% on 13 lines will phase to 0% by 2015, and tariffs on the remaining 11 lines will be reduced from 40% to 32% in 2020.
5. Vietnam's tariffs of 0% for breeding animals will be bound on EIF; tariffs of 5% for other animals will be eliminated in one step in 2016. Tariffs of 15% or 20% on beef and beef offal will phase to 0% by 2018 or 2019. Tariffs of 10% on sheep and goat meat will phase to 0% by 2016. Tariffs of 30% on chilled or frozen pork will phase to 0% by 2020, while tariffs of 15% on pork offal will phase to 0% by 2016. Tariffs of 50% on meat preparations phase to 5% by 2022 on 17 lines, and are phased to 0% on the remaining 2 lines by 2019 or 2020.
Fish and Fish Products
6. Indonesia will eliminate tariffs on most fisheries products (currently generally 5%) in 2010. The 5% tariffs on tinned sardines, tuna and mackerel will be reduced to 2.5% in 2025 (4 tariff lines). The 15% tariff on live fish will phase to 0% by 2013. The 15% tariff on some fresh, chilled or frozen fish (kerapu and tilapia) and some fish fillets and fish meat will phase to 7.5% by 2025, with reductions commencing in 2013 (7 tariff lines).
7. Malaysia will eliminate tariffs on all fisheries products (currently 0%-20%), with most tariffs bound at 0% on EIF, or eliminated in 2010 or phased to 0% by 2011. The 20% tariffs on most octopus will phase to 0% by 2015.
8. The Philippines will eliminate most tariffs on fisheries products ranging from 1% to 15%, by 2015 at the latest, with many eliminated or phased to 0% by 2010, 2011 or 2012. Some 15% tariffs on tinned or preserved fish will phase to 0% by 2015. The tariff on one product (fish fillets, dried, salted or in brine) will phase from 15% to 5% by 2016, and the 5% tariff on frozen mackerel will be reduced to 4% in 2015.
9. Vietnam will phase its tariffs, generally at 30%, on most fresh, chilled, frozen and dried fish to 0% by 2018 (125 tariff lines). Tariffs of 30% on some fish fillets, prawns and crabs will phase to 5% by 2022, commencing in 2017 (17 tariff lines). Tariffs on processed fish and crustaceans will generally phase from 40% to 5% by 2022, with reductions commencing in 2015 (23 tariff lines).
Dairy Products
10. Indonesia will eliminate tariffs on 39 tariff lines, and phase tariffs on the remaining 11 lines to 4%. It will eliminate 5% tariffs on 31 dairy tariff lines in 2010 (including butter, most cheese, ice cream, dairy spreads, yoghurt, and some milk powders including unsweetened WMP, milk preparations) and on 7 tariff lines by 2017 (whey for human consumption), 2018 (cream) or 2019 (including unsweetened SMP for human consumption and sweetened WMP). Tariffs of 5% on 11 lines will reduce to 4% in 2015 (including tariffs on milk, some milk powders, some whey products and grated or powdered cheese). The 0% tariff on casein will be bound on EIF.
11. Malaysia will bind its current tariff-free treatment for many dairy products (including whey, milk powders, casein), and eliminate tariffs on all other dairy products except liquid milk. It will eliminate its 2%-5% tariffs on several dairy products on EIF or in 2010 (butter, dairy spreads, ice cream), eliminate its 25% tariff on some yoghurt on EIF, eliminate its 5%-10% tariff on processed cheese on EIF, and eliminate tariffs on certain milk preparations by 2011. Malaysia will provide market access for Australia through country-specific tariff quotas for liquid milk, with in-quota tariffs to be eliminated from 2013, and out-of-quota tariffs to be reduced from 45% to 20% by 2013.
12. The Philippines will eliminate tariffs on all but 2 products (liquid yoghurt and dairy spreads, on which the 7% tariffs will reduce to 5%). Many tariffs (including the 1% tariff on milk powder, casein, some cheese, butter oil and whey) will be eliminated in 2010. Tariffs of 3% on milk, and 7% on butter, filled milk and processed cheese, will phase to 0% by 2019. Tariffs of 10% on ice cream and 7% on dairy spreads will phase to 0% by 2012.
13. Vietnam will eliminate all tariffs on dairy by 2020 at the latest. Tariffs of 20% on milk, whey, butter and dairy spreads will phase to 0% by 2017, 2018 or 2019. Tariffs of 10%-30% on milk powders will phase to 0% by 2016 or 2019. Tariffs of 10% on cheese will phase to 0% by 2016, 2017, 2019 or 2020. Tariffs of 15% or 30% on milk preparations will phase to 0% by 2016, 2018, 2019 or 2020. Tariffs of 30% on yoghurt will phase to 0% by 2017. The 50% tariff on ice cream will phase to 0% by 2018 while the 10% tariff on casein will phase to 0% by 2019.
Grains and Milled Products (excluding Rice)
14. Indonesia will bind its current tariff free treatment for wheat, barley and grain sorghum, and eliminate its 5% tariffs on many other grains in 2010. The 5% tariffs on wheat flour and unroasted malt will phase to 0% by 2020 and 2023 respectively, both of which are of significant trade interest to Australia. Maize is excluded from tariff commitments.
15. Malaysia will bind its current tariff-free treatment for wheat, other grains, wheat flour and malt at EIF, and will eliminate the tariff of 5% on flour and meal of sago and manioc in 2010.
16. The Philippines will eliminate its 3% or 7% tariffs on wheat and wheat flour and most other grains in 2010 or 2011. The 1% tariff on malt will be eliminated in 2010. The 50% tariff on maize will reduce to 40% in 2020. Tariffs on manioc starch and some maize products will reduce to 5% by 2017.
17. Vietnam will eliminate tariffs on all grains. Most tariffs (5% on wheat, malt, maize and grain sorghum; 3% on rye, barley and oats) will be eliminated in 2016, while the 20% tariff on wheat flour will phase to 0% by 2018. Tariffs of 5%-50% on other products will phase to 0% by 2020 at the latest.
Rice
18. Indonesia, Malaysia and the Philippines will exclude rice from tariff commitments. Vietnam will eliminate all its rice tariffs, which are generally in the 40% to 50% range, by 2019 or 2020.
Horticulture (Plants, cut flowers, vegetables, fruit, nuts, preparations of these)
19. Indonesia's horticulture tariffs (270 tariff lines) range between 0% and 25%, with most at 5%. It will bind tariffs of 0% on EIF on 17 lines and eliminate tariffs on another 202 lines in 2010, and phase tariffs to 0% on an additional 25 lines by 2023. The remaining lines will have tariffs reduced to 4% or 5% (including pineapples, bananas, avocadoes, strawberries and some vegetables), except for 6 lines (including mangoes, mandarins, potatoes, shallots and carrots) where the current 25% tariff will be reduced to 12.5% or 18.75% in 2025.
20. Malaysia will bind tariffs of 0% (covering most fruit, nuts and vegetables) on 173 lines on EIF. Tariffs between 2% and 10% covering apples, pears, peaches, and cherries, will be eliminated by 2012. Tariffs of 20% and 30% (17 lines covering mainly dried fruits) will phase to 0% by 2020. Compound tariffs on 21 lines (some fruits, including mangoes and melons) will have the specific component of the tariff eliminated by 2020, leaving only a 5% tariff or a low specific rate (pineapples).
21. The Philippines has tariffs between 1% and 40% on 270 lines, with the majority of tariffs (197 lines) between 1% and 10%. It will eliminate tariffs on all but 22 lines between EIF and 2015, with another 10 lines phased to 0% by 2020 (e.g. tariffs of 10% on mandarins will phase to 0% by 2015; other tariffs of 3%-15% on plants, fruit and nuts, vegetables will phase to 0% by 2010, 2011, 2012 or 2013). The 15% tariff on cut flowers will phase to 0% by 2013 or 2015. Tariffs of 25% on cauliflowers, broccoli and lettuce will reduce from 25% to 20% in one step in 2020; tariffs of 20% on celery will reduce in one step to 16% in 2020. Tariffs of 40% on onions and garlic will reduce to 5% by 2018, while tariffs of 40% on potatoes and carrots will reduce to 32% in 2020. Tariffs on all preparations of vegetables, fruits and nuts, with tariffs between 1% and 15%, will phase to 0% by 2015 or, for 1 line, 2020.
22. Vietnam has tariffs between 0% and 50%, covering 261 lines. Tariffs will be eliminated on all but one line ('other' citrus fruit), with reductions generally commencing in 2010. Tariffs of 10%-20% on vegetables will phase to 0% by 2016 or 2017 with tariffs of 30% to be eliminated by 2018. Tariffs of 20-25% for grapes, apples, pears, quinces, and berries will phase to 0% by 2016; tariffs of 40% on one tariff line covering some minor citrus fruit will reduce to 32% in one step in 2022; other tariffs of 40% will phase to 0% by 2017 or 2020. The 40% tariffs on cut flowers will phase to 0% by 2017 or 2018. Tariffs on preparations of vegetables, fruits and nuts will phase to 0% by 2018, 2019 or 2020.
Sugar
23. Indonesia and the Philippines will exclude sugar from tariff commitments. Malaysia will bind its current tariff-free treatment on EIF. Vietnam will retain the tariff quota treatment for sugar, but will phase the 30% in-quota tariff to 0% by 2020, and reduce the 80% out-of-quota tariff to 50% in 2022.
Wine
24. Indonesia and Malaysia will exclude all wine from tariff commitments.
25. The Philippines will phase all wine tariffs, currently in the 5%-7% range, to 0% by 2010 (3 tariff lines covering sparkling wine and some grape must), 2011 (1 tariff line for wine not exceeding 15% alcohol in containers exceeding 2 litres) or 2015 (remaining 7 tariff lines covering other wine and some grape must lines).
26. In 2022, Vietnam will reduce its current 80% tariffs to 20% on wine and 40% on grape must.
Wool and Cotton
27. Indonesia will eliminate tariffs of 5% on all wool in 2010. It will bind current tariff-free treatment for uncarded uncombed cotton, and will eliminate 5% tariffs on other cotton, cotton yarn and cotton sewing thread in 2010.
28. Malaysia will bind all wool and cotton tariffs at 0% on EIF. Tariffs on wool yarn will also be bound at 0% on EIF, while tariffs of 10% and 15% on cotton yarn and sewing thread will phase to 0% by 2011 and 2012 respectively.
29. The Philippines will eliminate all wool and cotton tariffs. Tariffs of 1% or 3% on raw, carded, combed, waste (as well as wool yarn) will be eliminated in 2010. Tariffs of 7% and 10% on cotton yarn and sewing thread phase to 0% by 2011 and 2012 respectively.
30. Vietnam will bind its current tariff-free treatment for raw wool and cotton and carded or combed wool on EIF. Tariffs of 10% on wool waste and cotton waste will phase to 0% by 2016. Tariffs of 20% on wool yarn and cotton yarn will phase to 0% by 2017, while the 30% tariff on cotton sewing thread will phase to 0% by 2018.
Resources and Industrial Products
Wood
31. Indonesia will eliminate tariffs on all 235 tariff lines covering wood. Tariffs of 0% on unworked timber will be bound at 0% on EIF. Tariffs of 5% will be eliminated in 2010 (including most sawn timber, particleboard). Most tariffs of 10% (most plywoods and other worked timbers) will phase to 0% by 2012, with tariffs on only 3 lines phasing from 10% to 0% by 2020.
32. Malaysia will bind tariffs of 0% on EIF (1,857 lines) and will phase all other tariffs (113 lines) to 0%. Tariffs of 5% will be eliminated by 2010, tariffs of 10% will be eliminated by 2011, and tariffs in the 15%-40% range will be eliminated by 2012 or 2013.
33. The Philippines' tariffs range from 0% to 15%. The Philippines will eliminate tariffs on all 235 tariff lines, mostly by 2012 or earlier. Tariffs of 15% on plywoods and veneers generally will phase to 0% by 2020. Other tariffs of 15% (e.g. on particleboard, fibreboard) will mostly phase to 0% by 2013 or 2015.
34. Vietnam will eliminate tariffs on all 235 tariff lines covering wood (with tariffs ranging from 0% to 40%), mostly by 2016, but with higher tariffs phasing to 0% by 2017, 2018 or 2020.
Pulp and Paper
35. Indonesia will eliminate tariffs on all 244 tariff lines covering pulp and paper. Tariffs of 5% (240 lines) will be eliminated in 2010, while tariffs of 15% will phase to 0% by 2013.
36. Malaysia will eliminate tariffs on all 310 pulp and paper tariff lines. Tariffs on 113 lines will be bound at 0% on EIF, with most other tariffs (ranging from 5% to 30%) being eliminated by 2011, 2012 or 2013. Tariffs of 10% on newsprint in rolls (1 tariff line) will phase to 0% by 2020.
37. The Philippines will eliminate tariffs between 1% and 15% on all 317 pulp and paper tariff lines. Many tariffs will be eliminated by 2010, 2011 or 2012, with the remaining tariffs phasing to 0% by 2020 at the latest.
38. Vietnam's tariffs range from 0% to 50%. Tariffs of 0% will be bound on EIF. Vietnam will eliminate tariffs of 1%-15% by 2016, but higher tariffs will phase to 0% by 2017, 2018 or 2020. Tariffs will eventually phase to 0% on a total of 197 tariff lines out of a total of 231 lines. Tariffs of 50% and some 40% tariffs will phase to 5% by 2022 (involving the remaining 34 tariff lines).
Minerals
39. Indonesia's tariffs range from 0% to 30%. Tariffs of 0% on 75 tariff lines will be bound on EIF. Tariffs on lubricating oils, greases and hydraulic brake fluid (4 lines) will phase from 30% to 15% by 2025. Tariffs on some salt will phase from 10% or 15% to 5% by 2015 or 2016 (2 tariff lines). Tariffs on some other salt (2 tariff lines) will phase to 0% by 2013. All other tariffs will be eliminated in 2010 or phase to 0% by 2013.
40. Malaysia's tariffs range from 0% to 50%. Tariffs of 0% will be bound on EIF (179 lines) and all other tariffs (25 lines) will phase to 0% by 2010, 2012, 2013 or 2020.
41. The Philippines' tariffs range from 1% to 7%. Tariffs will phase to 0% by 2010, 2015 or 2018 for 210 tariff lines but for the remaining 3 lines (some types of cement) the tariff of 5% will reduce to 4% in 2015.
42. Vietnam's tariffs range from 0% to 60%, including a tariff quota on salt which Vietnam will retain but where in-quota tariffs will phase to 0% by 2020. Some petroleum oils are excluded from Vietnam's tariff commitments, and the current tariffs of 5% on condensate and some gases and 15% on one line for crude oil will be bound but not reduced. All other tariffs (171 lines out of a total of 220 lines) will phase to 0% by 2016 (121 tariff lines), 2018 or 2020.
Iron and Steel, and Articles of Iron and Steel
43. Indonesia will bind current tariff-free treatment for 88 iron and steel tariff lines, and eliminate tariffs on 512 other lines (currently between 5% and 20%) by 2015, with most of these eliminated by 2010 or 2012. Tariffs on an additional 8 lines will phase to 0% by 2020, with tariffs on the remaining 187 lines being reduced to levels no higher than 5%.
44. Malaysia's tariffs on iron and steel range between 0% and 50%, with more than half in the 20% to 50% range. Malaysia will bind current tariff-free treatment for 121 tariff lines, and eliminate tariffs on another 315 tariff lines by 2013 at the latest. Tariffs on a further 12 lines will be phased to 0% by 2020. Tariffs on the remaining 189 lines will be phased to a level no higher than 10% (3 lines no higher than 5%) by 2019.
45. The Philippines' iron and steel tariffs range between 0% and 15%. The Philippines will eliminate tariffs on 320 iron and steel tariff lines by 2010. Tariffs on a further 177 lines will be eliminated by 2011, 2012, 2013 or 2015. Tariffs on another 162 lines will be reduced to a level between 2% and 8%. The remaining 77 lines, with tariffs at levels of 0%-3%, will be excluded from tariff commitments.
46. Vietnam's iron and steel tariffs range between 0% and 50%. Vietnam will bind tariffs on 246 tariff lines at 0% on EIF. Tariffs on 145 lines will be eliminated by 2016, tariffs on 96 lines will phase to 0% by 2017, 2018, 2019 or 2020. Of the remaining 243 tariff lines in this sector, tariffs on 95 lines will be reduced mostly to levels no higher than 5% (but will not be eliminated), tariffs on a further 95 lines will be bound at their base rates ranging from 3% to 30% (but will not be reduced), and 53 lines (generally with tariffs of 40%) will be excluded from tariff commitments.
Other Metals (Aluminium, Copper, Lead, Zinc, and Articles of these metals)
47. With the exception of 1 tariff line, Indonesia will eliminate tariffs on copper and copper products (ranging from 0% to 20%) by 2014, with most eliminated by 2012. The tariff of 5% on copper cathodes will be bound but not reduced. All tariffs, ranging from 0% to 20% on aluminium and aluminium products will be bound at 0% on EIF or will phase to 0% by 2015 at the latest, with the majority of tariffs eliminated by 2010 or 2012. All tariffs, ranging from 0% to 15%, on lead and zinc products will be bound at 0% on EIF or will phase to 0% by 2013 at the latest.
48. Malaysia's tariffs on copper and copper products range from 0% to 25%. Malaysia will bind all tariffs at 0% on EIF or phase them to 0% by 2013 (except for 2 lines that will be phased to 0% in 2020). Malaysia's tariffs on aluminium and aluminium products range from 0% to 30%. Malaysia will bind all tariffs at 0% on EIF or will phase them to 0% by 2013 at the latest. All lead and zinc tariffs (currently 0%-25%) will be bound at 0% on EIF or phased to 0% by 2013.
49. The Philippines' tariffs on copper and copper products range from 1% to 15%. The Philippines will phase all tariffs to 0% by 2013 at the latest. Tariffs on all aluminium and aluminium products (where tariffs range between 1% and 15%) will be eliminated by 2015, with the majority eliminated by 2010 or 2012. Tariffs on all lead and zinc products (where tariffs are between 1% and 5%) will be eliminated in 2010.
50. Vietnam's tariffs on 94 copper and copper products range from 0% to 40%. Vietnam will bind all 0% tariffs at EIF, and eliminate or phase tariffs to 0% by 2018 at the latest. Vietnam will bind tariffs on all 88 aluminium and aluminium products tariff lines at 0% on EIF or will phase tariffs (ranging from 1% to 40%) to 0% by 2020 at the latest, with the majority reaching 0% by 2016. All tariffs on lead and zinc will either be bound at 0% on EIF or will be phased to 0% by 2016.
Passenger Motor Vehicles, other Automotive Vehicles and Automotive Parts
51. Indonesia, which has vehicle tariffs ranging between 25% and 80%, will eliminate tariffs on passenger motor vehicles (PMV) with an engine capacity between 3000cc and 4000cc in 2014, and on PMV with smaller engines in 2019. Tariffs on PMV with engines above 4000cc, or with diesel engines, will only be subject to a modest reduction to 50%. Buses and vehicles for the transport of goods generally have tariffs in the 25% to 40% range, and most of these will be phased to 0% by 2012, 2015 or 2020, but some of those with 40% tariffs will only have these reduced to 20% in 2025. Some other vehicle tariffs of 45% and 80% will reduce to 22.5% and 50% respectively in 2025. Tariffs on automotive parts (323 tariff lines) range between 0% and 15%. Tariffs at 0% will increase from 62 tariff lines on EIF, to 121 lines in 2010, 261 lines in 2013, and 318 lines in 2020. Tariffs will be retained at reduced levels on 5 lines - 3 lines will reduce from 5% to 4% in 2015 and 2 lines (bodies for some vehicles) will reduce from 45% to 22.5% in 2025.
52. Malaysia, which has tariffs of 30% to 50 % for most vehicles, will eliminate tariffs on larger PMV (engines above 2500cc) in 2013, and phase tariffs on PMV with smaller engines to 5% in 2017. Buses generally have 30% tariffs that will be phased to 5% by 2017. Trucks and other vehicles for transporting goods generally have 30%-35% tariffs that will be phased to 5% by 2017. Automotive parts tariffs (168 tariff lines) range from 0% to 50%, with about half in the 0% to 5% range. Tariffs on 56 lines will be bound at 0% on EIF, with the tariff eliminated on another 32 lines in 2010. The number of tariff lines at 0% will increase to 148 lines in 2015, and to all 168 lines by 2020.
53. The Philippines, which has tariffs for PMV of 30%, for buses of 15%-20%, and for trucks and other vehicles for transporting goods of 20%-30%, will eliminate tariffs on 187 vehicle lines on EIF. Tariffs on PMV with an engine capacity greater than 3000cc will be eliminated in 2010, and tariffs on PMV with smaller engines will be eliminated in 2012. All tariff lines for buses and vehicles for the transport of goods will be phased to 0% no later than 2012. Automotive parts (327 tariff lines) have tariffs ranging between 0% and 15%. Tariffs on 164 lines will be at 0% on EIF, with another 134 lines phasing to 0% in 2010, 2012 or 2013. By 2015 tariffs on 304 lines will be at 0%, and tariffs on 17 lines (horns, some seat belts, some brakes, some gearboxes, some radiators and silencers, exhausts, some clutches and some chassis) will be 5% and will remain at this level; 4 lines (some body parts, seats and springs) will fall to 5% in 2016 and remain at that level; and 1 line (toughened safety glass) will fall to 8% in 2020.
54. Vietnam, with many vehicle tariffs at 100%, will reduce the tariffs on PMV, buses and some vehicles for transporting goods, to 50% in 2022. For those vehicles for transporting goods which currently have tariffs in the 15%-60% range, these will be reduced to 5%-30% by 2022. Tariffs on automotive parts (323 tariff lines) range between 0% and 50%, with over half at 30%. By 2017, 283 tariff lines will be in the 0%-5% range, with all of these lines falling to 0% by 2020. A further 36 lines (diesel engines, locks, new tyres, signalling equipment, some bodies and chassis, carburettors and pistons) will reduce to 5% in 2022. Three tariff lines (retreated tyres) are excluded from tariff commitments.
Chemicals
55. Indonesia's tariffs range from 0% to 170%. Tariffs on 1181 tariff lines will either be bound at 0% on EIF or phased to 0% in 2010, 2012 or 2013, and tariffs on 3 lines will be phased to 0% by 2020. Tariffs on the remaining 2 lines covering odoriferous alcoholic preparations will reduce from 170% to 85% in 2025.
56. Malaysia's tariffs range from 0% to 50% and all will be eliminated. Current tariffs of 0% on 837 lines will be bound on EIF. Tariffs on a further 93 lines will phase to 0% by 2013. Tariffs on the remaining 100 lines (currently mainly at levels of 20% -50%) will phase to 0% by 2020.
57. The Philippines' tariffs range from 0% to 30% on 1187 tariff lines. Tariffs of 0% will be bound on EIF. Tariffs on almost all tariff lines will be phased to 0% by 2010 or 2011. Remaining tariffs will be phased to 0% by 2020, except for tariffs on 6 products that will be reduced from 5% to 4% or from 7% to 5%.
58. Vietnam's tariffs range from 0% to 50%. Tariffs on all 1164 tariff lines will either be bound at 0% on EIF (631 lines) or phased to 0% by 2016, 2017, 2018, 2019 or 2020, except for 18 lines covering explosives, fireworks and waste chemicals that will be excluded from tariff commitments.
Pharmaceutical Products
59. Indonesia will exclude 1 tariff line (waste pharmaceuticals) from tariff commitments, but all other 124 pharmaceutical lines will either be bound at 0% on EIF or eliminated by 2011.
60. Malaysia will bind on EIF its current tariff-free treatment for all pharmaceutical products (198 lines).
61. The Philippines will bind its 0% tariff on 1 pharmaceutical tariff line at EIF and eliminate tariffs (ranging from 1% to 5%) on another 118 lines in 2010, with the remaining tariff line (waste pharmaceuticals) phasing from 20% to 0% by 2013.
62. Vietnam's tariffs on pharmaceuticals range from 0% to 20%. Tariffs on 113 lines will either be bound at 0% on EIF or will phase to 0% by 2016. Tariffs on another 3 lines will phase to 0% by 2020, another 3 lines will phase to 5% by 2022. One line (waste pharmaceuticals) is excluded from tariff commitments.
Textiles, Clothing and Footwear
63. Indonesia's textile tariffs are generally 5%, 10% or 15%, and it will eliminate tariffs on almost all tariff lines, with tariffs on the remaining 12 lines reduced to 5%. About 98% of all textile lines will have tariff-free treatment by 2013. Clothing tariffs are generally 10% or 15%. Indonesia will eliminate tariffs on 338 clothing lines by 2012 or 2013, eliminate the tariff on 1 line in 2020, and reduce tariffs on the remaining 77 tariffs to 5% by 2016. Tariffs on footwear range between 5% and 15%, and all will be eliminated, the 5% tariffs (on parts) by 2010 and the rest at 10% or 15% by 2012 or 2013.
64. Malaysia's textile tariffs range between 0% and 30%, and it will bind tariffs of 0% on EIF, and eliminate all other textile tariffs by 2013. Clothing tariffs range between 0% and 20%, and Malaysia will bind 0% tariffs on EIF for 49 lines and eliminate other tariffs (252 lines) by 2012. On footwear, it will bind the current tariff-free treatment on 21 tariff lines, and eliminate tariffs ranging between 2% and 30% on the other 29 lines by 2013.
65. The Philippines will eliminate almost all textile tariffs (724 out of 732 tariff lines, with tariffs ranging between 0% and 20%) by 2015, with most eliminated by 2013. The remaining tariffs will be reduced to 5% or 12%. The Philippines will eliminate all clothing tariffs (397 lines with base rates at 0-15%) by 2013. It will eliminate tariffs on 28 footwear lines, generally with tariffs in the 10%-15% range, mostly by 2012, and phase tariffs on a further 11 lines to 5% by 2016.
66. Vietnam's textile tariffs range between 0% and 100%, with a majority at 30%-40%, and it will eliminate tariffs on 712 textile lines by 2016-2019, with the remaining 5 lines (worn clothing, textiles and rags) excluded from tariff commitments. Tariffs on all clothing and footwear tariff lines will be eliminated. Most lines have 50% tariffs that will phase to 0% by 2018 or, for a few lines 2019, with the remaining lines having tariffs in the range of 5%-30% that will phase to 0% by 2016 or 2017.
Machinery and Mechanical Appliances
67. Indonesia will bind tariffs on 959 tariff lines at the current level of 0% on EIF, and will phase tariffs on another 423 tariff lines, with tariffs between 5% and 15%, to 0%, mostly by 2013. Twenty-two lines will be excluded from tariff commitments, while tariffs on the remaining 35 lines will phase to 4% or 5%.
68. Malaysia will bind tariffs on 467 tariff lines at the current level of 0% on EIF, and will phase tariffs on the remaining 251 lines to 0% on EIF, or by 2011 for lower tariffs (5%-15%) and mostly by 2020 for higher tariffs (17%-35%).
69. The Philippines will bind 88 tariff lines at 0% on EIF and will phase tariffs on another 1355 tariff lines (with tariffs currently ranging from 1% to 15%) to 0%, most (1224 lines) by 2010. Tariffs on some lines will phase to 0% by 2011, 2012 or 2013. Tariffs on the remaining 6 lines (air conditioners, some refrigerators, clothes dryers) will phase from 10% to 5%, or from 5% to 4%, by 2015.
70. Vietnam's tariffs on its 1436 machinery and mechanical appliance lines range between 0% and 100%. Tariffs on 783 lines will be bound at 0% on EIF, and tariffs on another 588 lines will be eliminated or phase to 0% by 2020 at the latest. Tariffs on the remaining 65 lines (covering certain engines and engine parts) will phase to 5% (or 3% for 1 line) by 2022.
Electrical Machinery and Equipment
71. Indonesia's tariffs on the lines covered by this category range from 0% to 15%. All but 20 of the 768 tariff lines will either be bound on EIF or phased to 0%, with most (743 lines) at 0% by 2013. By 2016 all tariffs will be at 5% or less, with the only remaining tariffs by 2025 being 3 lines at 4% and 17 lines at 5%.
72. Malaysia's tariffs range from 0% to 50%. Current tariffs of 0% on 228 of the 496 lines in this category will be bound on EIF, with tariffs on a further 63 lines also being bound at 0% on EIF. Tariffs on all but 5 lines will phase to 0% by 2013 - these remaining lines, all with current tariffs at 30%, will phase to 0% by 2020.
73. The Philippines' tariffs range from 0% to 15%. Tariffs of 0% (170 tariff lines) will be bound on EIF. Virtually all other tariffs (covering 599 tariff lines) will be phased to 0% by 2013, with tariffs on 8 lines falling to and remaining at 5% by 2016, and 2 lines covering transformers with current tariffs at 10%, remaining at that level until 2020, when they will fall to 8%.
74. Vietnam's tariffs, covering 766 tariff lines, range from 0% to 50%. Tariffs on all but 3 tariff lines will either be bound at 0% on EIF (226 lines) or phased to 0% by 2016, 2017, 2018 or 2020. The 3 remaining lines, covering some lighting equipment and with current tariff rates of 30%, will phase to 5% by 2022.
Gaming Machines
75. Indonesia will phase the current 15% tariffs to 0% by 2013.
76. Malaysia will phase the current 5%-30% tariffs to 0% by 2013 (with the 5% tariff eliminated in 2010).
77. The Philippines will phase the current 7% tariffs to 0% by 2011.
78. Vietnam will phase its tariffs of 50% to 0% by 2017.