Generally speaking, all items imported into the Philippines from another country are subject, on importation, to duty and value added tax (VAT), calculated on the basis of two factors: (1) the customs value of the imported goods; and (2) classification of imported goods. Agreement on ASEAN Products The 2010 Agreement on ASEAN Products (ATIGA) bound all commitments under the Common Preferential Duty/ASEAN Free Trade Area (CEPT/AFTA) concerning trade in goods. The aim is to create an internal market and a free-flow production base in the ASEAN region, an important component of the ASEAN Economic Community (ACS). ATIGA includes customs liberalization, initiatives to facilitate trade, simplification of rules of origin and the creation of an ASEAN trade repository. Visit investasean.asean.org/ for updates on ASEAN trade. The country`s merchandise trade with ASEAN in 2017 is estimated at $10 billion and accounted for 14.7 percent of Philippines` total exports. The vast majority of trade agreements contain rules of origin to prevent third parties from freely making the sacrifices that the parties to the agreements make. These rules determine who is entitled to benefits under a particular agreement and under what circumstances those parties may do so. Philippines – Japan Economic Partnership Agreement The Philippines and Japan concluded a free trade agreement in 2008. Abs is the only bilateral free trade agreement between the Philippines, which includes, among others, trade in goods, trade in services, investment, transport of natural persons, intellectual property, customs procedures, improvement of the business environment and government procurement. Currently, the ASEAN Trade in Goods Agreement (ATIGA) – ASEAN`s main agreement on regional tariff reduction – contains a number of criteria for determining the country of origin of a product and guidelines for determining whether certain products benefit from preferential tariff treatment. CEs can claim that their products satisfy at will the requirements of ATIGA and meet the very moment they need them, whether on weekends or holidays. CEs are not required to submit repeated requests for CO Form D, which saves time and money.

With the introduction of the ACS and the increasing harmonization of regional standards, the importance of regional supply chains cannot be underestimated. Further progress in regional integration is expected to continue these trends, further reduce barriers to trade, and reduce the impact of compliance on businesses across the region. . . .