WT/COMTD/RTA21/N/1  
 
20 September 2021  
(21-6984) Page: 1/7 
Committe e on Trade and Development  Original: English  
 
 
AGREEMENT ON THE COMMON EFFECTIVE PREFERENTIAL TARIFF (CEPT) SCHEME FOR 
THE ASEAN FREE TRADE AREA (AFTA)  
This document contains the text of the Agreement on the CEPT -AFTA, which  was notified under 
the Enabling Clause in GATT document L/7111 dated 30 October 1992. The text of the Agreement 
on the CEPT -AFTA is reproduced in the present document in order to provide the context for the 
notification contained in document WT/COMTD/RTA2 1/N/1/Add.1, which informs the Committee that 
this Agreement has been superseded by the ASEAN Trade in Goods Agreement (ATIGA).  
 
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  WT/COMTD/RTA21/N/1  
 
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  Agreement on the Common Effective Preferential Tariff (CEPT) Scheme  
 for the ASEAN Free Trade Area (A FTA) 
 
 
The Governments  of Brunei Darussalam, the Republic of Indonesia,  Malaysia, 
the Republic  of the Philippines, the Republic of Singapore and  the Kingdom of Thailand, 
Member  States of the Association of South Asian  Nations (ASEAN):  
 
MINDFUL of the Declaration of ASEAN Concord signed in Bali, Indonesia  on 24 February 1976 
which provides that Member States shall co -operate in  the field of trade in order to promote 
development and growth of new  production and trade;  
 
RECALLING that the ASEAN Heads of G overnment, at their Third Summit  Meeting held in 
Manila on 13 -15 December 1987, declared that Member States  shall strengthen 
intra-ASEAN  economic co -operation to maximize the  realization of the region's potential in trade and 
development;  
 
NOTING that the Agreement on ASEAN Preferential Trading Arrangements  (PTA) signed in 
Manila on 24 February 1977 provides for the adoption of  various instruments on trade liberalization 
on a preferential basis;  
 
ADHERING to the principles, concepts and ideals of the Framew ork Agreement on Enhancing 
ASEAN Economic Co -operation signed in Singapore on  28 January 1992;  
 
CONVINCED that preferential trading arrangements among ASEAN Member  States will act as 
a stimulus to the strengthening of national and ASEAN  economic resilience , and the development of 
the national economies of  Member States by expanding investment and production opportunities, 
trade  and foreign exchange earnings;  
 
DETERMINED to further co -operate in the economic growth of the region  by accelerating the 
liberaliz ation of intra -ASEAN trade and investment with  the objective of creating the 
ASEAN  Free Trade Area using the Common  Effective Preferential Tariff (CEPT) Scheme;  
  
DESIRING to effect improvements on the ASEAN PTA in consonance with  
ASEAN's  international com mitments;  
 
HAVE AGREED AS FOLLOWS:  
 
Article 1  
 
Definitions  
 
For the purposes of this Agreement:  
 
1. "CEPT" means the Common Effective Preferential Tariff, and it is an agreed effective tariff, 
preferential to ASEAN, to be applied to goods originating from ASEAN Member States, and 
which have been identified for inclusion in the CEPT Scheme in accordance with Articles 2  (5) 
and 3.  
 
2. "Non-tariff barriers" mean measures other than tariffs which effectively prohibit or restrict 
import or export of products within Member States.  
 
3. "Quantitative restrictions" mean prohibitions or restrictions on trade with other 
Member  States, whether made effective through quotas, licences or other measures with 
equivalent effect, including administrative measures and requirements which restrict trade.  
 
4. "Foreign exchange restrictions" mean measures taken by Member States in the form of 
restrictions and other administrative procedures in foreign exchange which have the effect of 
restricting trade.  
 
5. "PTA" means ASEAN Preferential Trading Arrangements stipulated in the Agreement on 
ASEAN  Preferential Trading Arrangements, signed in Manila on 24 February 1977, and in the WT/COMTD/RTA21/N/1  
 
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  Protocol on Improvements on Extension of Tariff Preferences under the ASEAN Preferential 
Tradin g Arrangements (PTA), signed in Manila on 15 December 1987.  
 
6 "Exclusion list" means a list containing products that are excluded from the extension of tariff 
preferences under the CEPT Scheme.  
 
7. "Agricultural products" mean:  
 
(a) agricultural raw mater ials/unprocessed products covered under Chapters 1 -24 of the 
Harmonized System (HS), and similar agricultural raw materials/unprocessed products in 
other related HS headings; and  
 
(b) products which have undergone simple processing with minimal change in f orm from 
the original products.  
 
Article 2  
 
General Provisions  
 
1. All Member States shall participate in the CEPT Scheme.  
 
2. Identification of product s to be included in the CEPT Scheme shall be on a sectoral basis, i.e., 
at HS six -digit level.  
 
3. Exclusions at the HS eight/nine digit level for specific products are permitted for those 
Member  States, which are temporarily not ready to include such products in the CEPT Scheme. 
For specific products, which are sensitive to a Member State, pursuant to Article 1  (3) of the 
Framework Agreement on Enhancing ASEAN Economic Co -operation, a Member State may 
exclude products from the CEPT Scheme, subject to a waiver of any concession herein 
provided for such products. A  review of this Agreement shall be carrie d out in the eighth year 
to decide on the final Exclusion List or any amendment to this Agreement.  
 
4. A product shall be deemed to be originating from ASEAN Member States, if at least 40 per  cent 
of its content originates from any Member States.  
 
5. All manufactured products, including capital goods, processed agricultural products and those 
products falling outside the definition of agricultural products, as set out in this Agreement, 
shall be in the CEPT Scheme. These products shall automatically be subj ect to the schedule of 
tariff reduction, as set out in Article 4 of this Agreement. In respect of PTA items, the schedule 
of tariff reduction provided for in Article 4 of this Agreement shall be applied, taking into 
account the tariff rate after the applic ation of the existing margin of preferences (MOP) as at 
31 December 1992.  
 
6. All products under the PTA which are not transferred to the CEPT Scheme shall continue to 
enjoy the MOP existing as at 31 December 1992.  
 
7. Member States, whose tariffs for the agreed products are reduced from 20 per cent and below 
to 0 per cent -5 per cent, even though granted on an m.f.n. basis, shall still enjoy concessions. 
Member States with tariff rates at m.f.n. rates of 0 per cent -5 per cent shall be deemed to 
have satisfi ed the obligations under this Agreement and shall also enjoy the concessions.  
 
Article 3  
 
Product Coverage  
 
This Agreement shall apply to all manufactured products, including capital goods, processed 
agricultural products, and those products falling outside the definition of agricultural products as set 
out in this Agreement. Agricultural products shall be exclu ded from the CEPT Scheme.  
 WT/COMTD/RTA21/N/1  
 
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  Article 4  
 
Schedule of Tariff Reduction  
 
1. Member States agree to the following schedule of effective preferential tariff reductions:  
 
(a) The reduction from the existing tariff rates to 20 per cent shal l be done within a 
time-frame of five years to eight years, from 1 January 1993, subject to a programme 
of reduction to be decided by each Member State, which shall be announced at the start 
of the programme. Member States are encouraged to adopt an annual rate of reduction, 
which shall be (X -20)% /5 or 8, where X equals the existing tariff rates of individual 
Member States.  
 
(b) The subsequent reduction of tariff rates from 20 per cent or below shall be done within 
a time -frame of seven years. The rate of re duction shall be at a minimum of 5 per cent 
quantum per reduction. A programme of reduction to be decided by each Member State 
shall be announced at the start of the programme.  
 
(c) For products with existing tariff rates of 20 per cent or below as at 1 Ja nuary 1993, 
Member States shall decide upon a programme of tariff reductions, and announce at 
the start, the schedule of tariff reductions. Two or more Member States may enter into 
arrangements for tariff reductions to 0 per cent -5 per cent on specific pro ducts at an 
accelerated pace to be announced at the start of the programme.  
 
2. Subject to Articles 4  (1) (b) and 4  (1) (c) of this Agreement, products which reach, or are at 
tariff rates of 20 per cent or below, shall automatically enjoy the concessions.  
 
3. The above schedules of tariff reduction shall not prevent Member States from immediately 
reducing their tariffs to 0 per cent -5 per cent or following an accelerated schedule of tariff 
reduction.  
 
Article 5  
 
Other Provisions  
 
A. Quantitative restriction s and non -tariff barriers  
 
1. Member States shall eliminate all quantitative restrictions in respect of products under the 
CEPT Scheme upon enjoyment of the concessions applicable to those products.  
 
2. Member States shall eliminate other non -tariff barrie rs on a gradual  basis within a period of 
five years after the enjoyment of concessions applicable to those products.  
 
B. Foreign exchange restrictions  
 
Member States shall make exceptions to their foreign exchange restrictions relating to  
payments for the  products under the CEPT Scheme, as well as repatriation of such payments without 
prejudice to their rights under Article XVIII of the General Agreement on Tariffs and Trade (GATT) 
and relevant provisions of the Articles of Agreement of the International M onetary Fund (IMF).  
 
C. Other areas of co -operation  
 
Member States shall explore further measures on border and non -border areas of co -operation 
to supplement and complement the liberalization of trade. These may include, among others, the 
harmonization of standards, reciprocal recognition of tests and certification of products, removal of 
barriers to foreign investments, macroeconomic consultations, rules for fair competition, and 
promotion of venture capital.  
 WT/COMTD/RTA21/N/1  
 
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  D. Maintenance of concessions  
 
Member States shall not nullify or impair any of the concessions as agreed upon through the 
application of methods of customs valuation, any new charges or measures restricting trade, except 
in cases provided for in this Agreement.  
 
Article 6  
 
Emergency Measures  
 
1. If, as a result of the implementation of this Agreement, import of a particular product eligible 
under the CEPT Scheme is increasing in such a manner as to cause or threaten to cause 
serious injury to sectors producing like or directly competi tive products in the importing 
Member States, the importing Member States may, to the extent and for such time as may 
be necessary to prevent or to remedy such injury, suspend preferences provisionally and 
without discriminating, subject to Article 6  (3) o f this Agreement. Such suspension of 
preferences shall be consistent with the GATT.  
 
2. Without prejudice to existing international obligations, a Member State, which finds it 
necessary to create or intensify quantitative restrictions or other measures lim iting imports 
with a view to forestalling the threat of or stopping a serious decline of its monetary reserves, 
shall endeavour to do so in a manner which safeguards the value of the concessions agreed 
upon.  
 
3. Where emergency measures are taken pursuant to this Article, immediate notice of such action 
shall be given to the Council referred to in Article 7 of this Agreement, and such action may 
be the subject of consultations as provided for in Article 8 of this Agreement.  
 
Article 7  
 
Institutional Arrange ments  
 
1. The ASEAN Economic Ministers (AEM) shall, for the purposes of this Agreement, establish a 
ministerial -level Council comprising one nominee from each Member State and the Secretary 
General of the ASEAN Secretariat. The ASEAN Secretariat shall prov ide the support to the 
ministerial -level Council for supervising, co -ordinating and reviewing the implementation of 
this Agreement, and assisting the AEM in all matters relating thereto. In the performance of 
its functions, the ministerial -level Council sh all also be supported by the Senior Economic 
Officials ' Meeting (SEOM).  
 
2. Member States which enter into bilateral arrangements on tariff reductions pursuant to 
Article  4 of this Agreement shall notify all other Member States and the ASEAN Secretariat of 
such arrangements.  
 
3. The ASEAN Secretariat shall monitor and report to the SEOM on the implementation of the 
Agreement pursuant to the Article III  (2) (8) of the Agreement on the Establishment of the 
ASEAN Secretariat. Member States shall co-operate with the ASEAN Secretariat in the 
performance of its duties.  
 
Article 8  
 
Consultations  
 
1. Member States shall accord adequate opportunity for consultations regarding any 
representations made by other Member States with respect to any matter aff ecting the 
implementation of this Agreement. The Council referred to in Article 7 of this Agreement, may 
seek guidance from the AEM in respect of any matter for which it has not been possible to find 
a satisfactory solution during previous consultations.  
 
2. Member States, which consider that any other Member State has not carried out its obligations 
under this Agreement, resulting in the nullification or impairment of any benefit accruing to 
them, may, with a view to achieving satisfactory adjustment of th e matter, make WT/COMTD/RTA21/N/1  
 
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  representations or proposals to the other Member States concerned, which shall give due 
consideration to the representations or proposals made to it.  
 
3. Any differences between the Member States concerning the interpretation or application of 
this Agreement shall, as far as possible, be settled amicably between the parties. If such 
differences cannot be settled amicably, it shall be submitted to the Council referred to in 
Article  7 of this Agreement, and, if necessary, to the AEM.  
 
Article 9  
 
General Exceptions  
 
Nothing in this Agreement shall prevent any Member State from taking action and adopting 
measures, which it considers necessary for the protection of its national security, the protection of 
public morals, the protection of human, ani mal or plant life and health, and the protection of articles 
of artistic, historic and archaeological value.  
 
Article 10  
 
Final Provisions  
 
1. The respective Governments of Member States shall undertake the appropriate measures to 
fulfil the agreed obligations arising from this Agreement.  
 
2. Any amendment to this Agreement shall be made by consensus and shall become effective 
upon acceptance by all Member States.  
 
3. This Agreement shall be effective upon signing.  
 
4. This Agreement shall be deposit ed with the Secretary General of the ASEAN Secretariat, who 
shall likewise promptly furnish a certified copy thereof to each Member State.  
 
5. No reservation shall be made with respect to any of the provisions of this Agreement.  
 
 
In Witness Whereof, the u ndersigned, being duly authorized thereto by their respective 
Governments, have signed this Agreement on Common Effective Preferential Tariff (CEPT) 
Scheme for the ASEAN Free Trade Area (AFTA).  
 
 
Done at Singapore, this twenty -eighth day of January 1992 in  a single copy in the 
English  language.  
 
 
For the Government of  
Brunei Darussalam  
 
Abdul Rahman Taib  
Minister of Industry and  
Primary Resources  
 
 
For the Government of the  
Republic of Indonesia  
 
Dr. Arifin M. Siregar  
Minister of Trade  
 
 
For the Government of Malaysia  
 WT/COMTD/RTA21/N/1  
 
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  Rafidah Aziz  
Minister of International Trade  
and Industry  
 
 
For the Government of the  
Republic of the Philippines  
 
Peter D. Garrucho Jr.  
Secretary of Trade and Industry  
 
 
For the Government of the  
Republic of Singapore  
 
Lee Hsien Loong  
Deputy Prime Minister and  
Minister for Trade and Industry  
 
 
For the Government of the  
Kingdom of Thailand  
 
Amaret Sila -On 
Minister of Commerce  
 
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