Supreme Court E-Library
Information At Your Fingertips

April 21, 2004

The Governments of Brunei Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, the Lao People's Democratic Republic, Malaysia, ihe Union of Myanmar, tho Republic of the Philippines, the Republic ot Singapore, the Kingdom of Thailand, and the Socialist Republic of Vietnam, Member States of the Association of South East Asian Nations (ASEAN);

RECALLING the Basic Agreement on the ASEAN Industrial Cooperation (AICO) Scheme signed on 27 April 1996 in Singapore, hereinafter referred to as "the Agreement" which aims to provide the guidelines and institutional framework within which the ASEAN private sector may collaborate on the basis of mutual and equitable benefits far the ASEAN Member Countries and increased industrial production foi the region as a whole;

ACKNOWLEDGING with satisfaction that the AICO Scheme has met its set objectives;

NOTING also that Article } of the Protocol to Amend the Agreement on the CEPT Scheme for the AFTA for the Elimination of Import Duties signed on 3IS1 January 2003 amended the final CEPT rale to zero percent (0%);

RECALLING the decision of the ASEAN Economic Meetings Retieattn Genting BigWand, Malaysia in July 2Q02to maintain the relevance of the AICO Scheme beyond 2002 and to work towards setting the A1C0 rate at zero percent (0%);

RECALLING the decision of the 34th Meeting of the ASEAN Economic Ministers (AEMJ held on 12 September 2002 in Bandar Seri Begawan, Brunei Darussalam to amend the preferential tariff rates applicable to participating countries on the AICO Scheme;

RECOGNISING the need to update the Agreement to maintain its continued relevance beyond 2002;

NOTING that Article 13 of the Agreement provides for amendments to it;

HAVE AGREED AS FOLLOWS:

ARTICLE 1

Article 1 (Definitions) of the Agreement shall be amended by substituting Article 1(6), with the following:

"6. "Piefeieniial Teiifi Rate" shall mean the advanced final CEPT rate fixed by Participating Countries atO% as provided for by the Protocol to Amend the Agreement on the CEPT Scheme for the AFTA for the Elimination of Import Duty. This definition shall be read together with Article 2(4) of the Agreement agreed upon in this Protocol and Article 4 of the Agreement"

ARTICLE 2

Article 2 (General Provisions) of the Agreement shall be amended as follows;

(a) by inserting a new Article 2(4) alter existing Article 2(3) as follows:

"4. In the case of AICO Arrangements approved from 01 January 2003, the Preferential Tariff Rate for Participating Countries shall be within the band as follows;

a. Brunei Darussalam	-	0%
b. The Kingdom of Cambodia	-	0%
c. Repubiic ol Indonesia	-	0%
d. Lao People's Democratic Republic	-	0%
e. Malaysi	-	0%
f. Union of Myanmar	-	0-5%
g. Republic of the Philippines	-	0-1%
h. Republic of Singapore	-	0%
i. The Kingdom of Thailand	-	0-3%
j. Socialist Republic ofVietnam	-	0-5%

Participating Countries upon mutual agreement may establish preferential tariff rate arrangements between or amongst Participating Countries within the applicable bands stated above of the respective Participating Countries."

(b) by inserting the following new Article 215) as follows:

"5. The ASEAN Member Countries referred to in Article 2(4) that are temporarily not ready to implement the Preferential Tariff Rate of 0%, shall work towards reducing the Preferential Tariff Rate to 0% for AICO

Arrangements by 1 January 2O05, whereas the Socialist Republic of Vietnam shall do so by Januaty 2006."

ARTICLE 3

Article 5 (Privileges) of the Agreement shall be amended by substituting Article 5(1)(a] with the following :

"a. approved A1C0 Products traded between Participating Companies shall enjoy the Preferential Tariff Rate stipulated in Article 1(6} and Article 2(4}, where applicable. Where the stipulated Preferential Tariff- Rate is within a band, ihe actual rale shall be determined by that Participating Country concerned. The Preferential Tariff Rate shall cease when the tariff rate of the product reaches the final CEPT rate;"

ARTICLE 4

Article 7 (Application Procedures) of the Agreement shall be amended by substituting Article 7(2) with the following:

"2. ASEAN Member Countries snail, within ED days oi receipt of the application, inform the ASEAN Secretariat of;

a. their decisions in participating in an AICO Arrangement, and,

b. where applicable, the Preferential Tariff Rate to be applied as stipulated in Article 1(6) and Article 2(4),

ASEAN Member Countries, where applicable, which ate unablatointiitate a decision on the tariff rate within this period shall nevertheless indicate their decision on acceptance or otherwise, of the arrangement and the product as an AICO Product."

ARTICLE 5

Article 12 (Repealing Provision) of the Agreement shall be amended by replacing the word "final" in the second sentence of Article 12(d) with "prevailing"

ARTICLE 6

This Protocol shall enter into force on the date of deposit of the instruments of ratification or acceptance by all signatory governments with the Secretary-General of ASEAN.

This Protocol shall be deposited with the Secretary-Gen era I of ASEAN, who shall promptly furnish a certified copy thereof to each Member Country.

IN WITNESS THEREOF, the undersigned, being duly authorised thereto by their respective Governments, have signed the Protocol to Amend the Basic Agreement on the ASEAN Industrial Cooperation Scheme.

DONE at Singapore, this 21" day of April 2004, in a single copy in the English Language.