World Customs Journal The impact on Customs of the implementation of the ASEAN-China FTA

This paper examines the impact of the ASEAN-China Free Trade Area (ACFTA) on regional trade facilitation. An overview of the development of ACFTA is followed by a discussion on the need for ongoing consideration of new policies and measures to further enhance economic complementarity and industry cooperation with the goal of strengthening zero tariff FTA policies. Research indicates that although utilisation of preferential concessions is increasing, it is less than the original expectations of China’s Central Government. Policies are therefore being considered and other measures designed to enhance the utilisation rate. The challenges presented by these initiatives and their impact on Customs ’ already limited resources are outlined. The paper concludes by identifying opportunities for Customs to effectively address the growth in regional trade and contribute to the negotiation, formulation and enforcement of rules of origin. 1. History and development of ACFTA A Free Trade Agreement (FTA) is a legally binding agreement between two or more countries to reduce or eliminate trade barriers in terms of both tariff and non-tariff, and to facilitate the cross-border movement of goods and services between the territories of the Parties. The ASEAN-China Free Trade Area (ACFTA) is a free trade area between ten member states of th