The day of reckoning under Afta

MANUFACTURED goods of Asean origin are already enjoying preferential rates of not more than 5% under the Asean Free Trade Area (Afta), except for cars. The Government had asked for a two-year extension (up to Jan 1, 2005) to include cars in the Afta scheme, but what exactly will happen to tariffs under Afta? 

What we do know is that under Afta, import duty on cars of Asean origin will be reduced so that by 2005, the import duty will be at 20% compared with the present tariffs ranging from 140% to 300%. However, the preferential rates will only apply to cars of Asean origin (i.e. at least 40% Asean content).