1. What is the ASEAN-Australia-New Zealand Free Trade Area?

The ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) is a trade

agreement among the ten (10) Member States of the Association of Southeast Asian Nations
(ASEAN), Australia and New Zealand. The Agreement was signed on February 27, 2009 and
entered into force on January 1, 2010.

The AANZFTA is a comprehensive single undertaking Free Trade Area (FTA),

covering trade in goods, trade in services, and investment. It includes Chapters on: (i) rules
of origin; (ii) customs procedures; (iii) sanitary and phytosanitary measures; (iv) standards,
technical regulations and conformity assessment procedures; and (v) safeguard measures.

2. What is the objective of AANZFTA?

The objective of AANZFTA is deeper economic integration between the two regions
through (i) progressive liberalization and facilitation of trade in goods, trade in services,
investments, and (ii) trade and investment facilitation and economic cooperation measures.

3. What is the product coverage of the Trade in Goods (TIG) Chapter of the
AANZFTA?

Except for rice, sugar and selected articles of iron and steel, all products falling under
Harmonized System (HS) Chapters 1 to 97 are covered in the TIG Chapter.

4. What are the two programs of tariff reduction under the TIG Chapter of
AANZFTA?

a. Normal Track (NT) - products included in NT comprise 90% of total tariff lines.
The tariff reduction program was set to commence on January 1, 2008 and by
2015, all products under NT are expected to be duty-free

b. Sensitive Track (ST) - contains the remaining ten percent (10%) of total tariff
lines. It is subdivided into two (2) categories: Sensitive List and Highly Sensitive
List (HSL). Products falling under the SL category have end rates of 0%-5% by
2015, 2018 or 2020 while tariffs of products in the HSL shall be reduced by 20%,
from their base rates, by 2020.

5. What are the Rules of Origin (ROO) under AANZFTA?

Products which are wholly obtained or produced in the exporting party shall be
deemed originating and eligible for preferential tariff treatment.

The General Rule of Regional Value Content (RVC) 40 is applicable to all other
goods except where there is a Product Specific Rule (PSR). The PSR becomes either the
exclusive rule, or an alternative to, or a combination with the General Rule, depending on the
provisions of Annex 2 of the Agreement.

1. ROO Criteria General Rule RVC 40 or Change in Tariff Heading

2. Certificate of Origin (CO) Form Form AANZ
3. Reciprocity Rule None

Date of Last Revision: July 2017 Page 2

 6. Which Executive Orders (EOs) implement the Philippines tariff commitments
under AANZFTA?

EO 851 issued on December 23, 2009 and which took effect on January 1, 2010
EO 191 issued on November 5, 2015 and which took effect on November 12,
2015

7. What is the frequency distribution of Philippine tariffs under AANZFTA?

AANZFTA Number of AHTN 2017 Tariff Lines Percentage Share (%)

Rate (%) 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022
0 10,371 10,404 10,412 10,542 10,542 10,542 92.37 92.66 92.73 93.89 93.89 93.89
2 47 20 13 34 34 34 0.42 0.18 0.12 0.30 0.30 0.30
3 23 23 33 2 2 2 0.20 0.20 0.29 0.02 0.02 0.02
4 16 16 16 19 19 19 0.14 0.14 0.14 0.17 0.17 0.17
5 221 323 312 189 189 189 1.97 2.88 2.78 1.68 1.68 1.68
6 - - - 53 53 53 - - - 0.47 0.47 0.47
7 53 53 53 - - - 0.47 0.47 0.47 - - -
8 108 - - 53 53 53 0.96 - - 0.47 0.47 0.47
10 53 53 53 - - - 0.47 0.47 0.47 - - -
12 - - - 181 181 181 - - - 1.61 1.61 1.61
15 181 181 181 - - - 1.61 1.61 1.61 - - -
16 - - - 1 1 1 - - - 0.01 0.01 0.01
20 1 1 1 4 4 4 0.01 0.01 0.01 0.04 0.04 0.04
24 - - - 4 4 4 - - - 0.04 0.04 0.04
25 4 4 4 - - - 0.04 0.04 0.04 - - -
28 - - - 1 1 1 - - - 0.01 0.01 0.01
30 4 4 4 - - - 0.04 0.04 0.04 - - -
32 - - - 28 28 28 - - - 0.25 0.25 0.25
35 1 1 1 - - - 0.01 0.01 0.01 - - -
40 28 28 28 1 1 1 0.25 0.25 0.25 0.01 0.01 0.01
50 1 1 1 - - - 0.01 0.01 0.01 - - -
U 116 116 116 116 116 116 1.03 1.03 1.03 1.03 1.03 1.03
Grand
11,228 11,228 11,228 11,228 11,228 11,228 100.00 100.00 100.00 100.00 100.00 100.00
Total
U (Unbound) - Excluded from any tariff concessions

Date of Last Revision: July 2017 Page 3