Post on 23-Dec-2015
Thailand-Thailand-Australia Australia Free Trade Free Trade AgreementAgreement
Fiscal Policy Office, Ministry of Fiscal Policy Office, Ministry of FinanceFinance
Dr. Somchai Sujjapongse, Deputy Director General
June 21, 2004
Exports, Imports Exports, Imports and Trade Balanceand Trade Balance
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
2001 2002 2003
Total Exports Total Imports
Million Baht
0
15,000
30,000
45,000
60,000
75,000
90,000
2001 2002 2003
Exports to Australia Imports from Australia
Million Baht
Year 2003
Total Exports = 3,334 Billion Baht
Total Imports = 3,138 Billion Baht
Trade Balance = 196 Billion Baht
Trade with Australia
Exports = 89.7 Billion Baht (2.7%)
Imports = 65.6 Billion Baht (2.1%)
Trade Balance = 24.1 Billion Baht
Industrial Industrial Products: Products: ExportsExports
HS Cod
e
Exports to Australia
(2003)Million Baht %
87 Vehicles, parts and accessories
25,422.5 28.3
84Machinery, mechanical appliances and parts
12,556.4 14.0
39 Plastics and articles thereof 6,893.2 7.7
85Electrical machinery, equipment and parts
5,463.4 6.1
01-97 Total
89,744.1 100.0
Industrial Industrial Products: Products: ImportsImports
HSCod
e
Imports from Australia
(2003)Million
Baht %
71Precious stones, precious metals and articles thereof 12,415.8 18.9
76 Aluminum and articles thereof 10,367.1 15.8
72 Iron and steel 5,043.1 7.7
27Mineral fuels, mineral oils and products of their distillation 3,657.6 5.6
52 Cotton 3,412.6 5.2
01-97 Total 65,578.0 100.0
Vehicles, Parts and Vehicles, Parts and AccessoriesAccessories(Chapter 87)(Chapter 87)
Exports
Imports
0.2%
47.8%
ASEAN EU
AUSTRALIA BAHRAIN
BANGLADESH CANADA
CHILE CHINA
INDIA JAPAN
KOREA,REPUBLIC OF MEXICO
NEW ZEALAND RUSSIAN FEDERATION
SOUTH AFRICA SRI LANKA
UNITED STATES OTHERS
14.8% 23.0%
25.9%
13.0% 10.1%
Year 2003
World = 171.9 Billion BahtAustralia = 25.4 Billion Baht
World = 130.8 Billion BahtAustralia = 0.3 Billion Baht
Vehicles, Parts Vehicles, Parts and Accessoriesand Accessories
(Chapter 87)(Chapter 87)
0
5000
10000
15000
20000
25000
2001 2002 2003
Exports Imports
Million Baht
8% 15%
77%8704: Motor vehicles for the transport of goods
8708: Parts and accessories
8703: Motor vehicles for the transport of persons (<10 persons)
Exports
Tariff StructureTariff Structure8701 Tractors 5%, 20%
8702 Motor vehicles for the transport of persons (>10 persons) 40%
8703 Motor vehicles for the transport of persons (<10 persons) 80%
8704 Motor vehicles for the transport of goods 40%
8705 Special purpose motor vehicles 10%, 40%
8706 Chassis fitted with engines, for 87.01 to 87.05. 30%
8707 Bodies (including cabs), for 87.01 to 87.05. 40%, 80%
8708Parts and accessories of the motor vehicles of 87.01 to 87.05.
10%, 30%
8709Works trucks; tractors used on railway station platforms; parts
10%, 20%
8710 Motorized tanks; parts 0%
8711 Motorcycles and cycles; side-cars. 60%
8712 Bicycles and other cycles, not motorized. 30%
8713 Carriages for disabled persons 0%
8714 Parts and accessories of vehicles of 87.11 to 87.13. 25%, 30%
8715 Baby carriages and parts thereof 30%
8716 Trailers ; other vehicles, not mechanically propelled; parts 10%, 25%, 40%
Tariff Rate
Avg. 33%
Thailand’s Tariff Thailand’s Tariff Reduction ScheduleReduction Schedule
• On January 1, 2005, On January 1, 2005, 38% of products in 38% of products in chapter 87 will have chapter 87 will have their tariff rates reduced their tariff rates reduced to 0%.to 0%.
• All of the tariff rates on All of the tariff rates on vehicles and parts invehicles and parts in chapter 87 will be chapter 87 will be reduced to 0% by 2010.reduced to 0% by 2010.
Thailand’s Tariff Thailand’s Tariff Reduction ScheduleReduction Schedule
8703: Motor vehicles for the transport of persons (<10 persons) - Of a cylinder capacity not exceeding 3,000 cc
Base Base RateRate
20052005 20062006 20072007 20082008 20092009 20102010
8080 3030 2424 1818 1212 66 00
8703: Motor vehicles for the transport of persons (<10 persons) - Of a cylinder capacity exceeding 3,000 cc8704: Motor vehicles for the transport of goods
Base Base RateRate
20052005 20062006 20072007 20082008 20092009 20102010
40, 60, 40, 60, 8080
00 00 00 00 00 00
8708: Parts and accessories
Base Base RateRate
20052005 20062006 20072007 20082008 20092009 20102010
>20>20 2020 1616 1212 88 55 00
Australia’s Tariff Australia’s Tariff Reduction ScheduleReduction Schedule• Australia will reduce its Australia will reduce its tariff rates on vehiclestariff rates on vehicles from 5-15% to 0% on from 5-15% to 0% on January 1, 2005.January 1, 2005.
• For some parts and For some parts and accessories in chapter 87, accessories in chapter 87, in particular 8708, tariff in particular 8708, tariff rates will be reduced torates will be reduced to 5% in 2005-2009 and 5% in 2005-2009 and reduced to 0% by 2010.reduced to 0% by 2010.
Rules of OriginRules of Origin• For vehicles: Substantial For vehicles: Substantial Transformation (Change Transformation (Change to Heading) with a Regional to Heading) with a Regional Value Content of not lessValue Content of not less than 40 percent than 40 percent
• For parts and accessories For parts and accessories (8708): Substantial (8708): Substantial Transformation (Change to Transformation (Change to Sub-Heading) with a Sub-Heading) with a Regional Value Content of Regional Value Content of not less than 40 percent not less than 40 percent
• For parts and accessories For parts and accessories (8714): Substantial (8714): Substantial Transformation (Change to Transformation (Change to Sub-Heading from any Sub-Heading from any other Heading)other Heading)
Textiles and Textiles and Textile ArticlesTextile Articles(Chapter 50-63)(Chapter 50-63)
4% 8%
15%
33%
29%
Imports
Exports World: Year 2003
Exports = 229.5 Billion Baht
Imports = 100.6 Billion Baht
11%
10%16%
35%
Silk WoolCotton Paper yarnMan-made fi laments Man-made staple fibersWadding, felt and nonwovens Carpets Special woven fabrics Textile articles for industrial useKnitted or crocheted fabrics Apparels (knitted or crocheted)Apparels (not knitted or crocheted) Others made up textile articles
Textiles and Textiles and Textile ArticlesTextile Articles(Chapter 50-63)(Chapter 50-63)
2%
39%
57%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2001 2002 2003
Exports Imports
Imports: 60. Billion Baht (6.0%)
Exports: 2.6 Billion Baht (1.2% of Total Textile Exports)
Australia
Silk Wool CottonPaper yarn Man-made filaments Man-made staple f ibersWadding, felt and nonw ovens Carpets Special w oven fabricsTextile articles for industrial use Knitted or crocheted fabrics Apparels (knitted or crocheted)Apparels (not knitted or crocheted) Others made up textile articles
Tariff Tariff StructureStructure
50 Silk 0, 15 1, 5, 10, 17.5
51 Wool 0, 5, 15 1, 5, 7.5
52 Cotton 0, 5, 15 0, 5, 12.5
53 Other vegetable textile fibers, Paper yarn 0, 5 5, 12.5
54 Man-made filaments 0, 5, 15 5, 12.5
55 Man-made staple fibers 0, 5, 10, 15 5, 12.5
56 Wadding, felt and non-wovens 0, 5, 10 5 - 20
57 Carpets 0, 5, 15 30
58 Special woven fabrics 0, 5, 10, 15, 25 12.5, 15
59 Textile articles for industrial use 0, 4, 5, 10, 15 1 - 30
60 Knitted or crocheted fabrics 10, 15, 25 12.5
61 Apparels (knitted or crocheted) 0, 10, 25 30
62 Apparels (not knitted or crocheted) 0, 10, 25 10, 30, 60
63 Others made up textile articles 0, 5, 10, 15, 25 1, 10, 30
Tariff Rate (%)
Australia Thailand
Thailand’s Tariff Thailand’s Tariff Reduction ScheduleReduction Schedule
• On January 1, 2005, 15% On January 1, 2005, 15% of textile productof textile product categories will have their categories will have their tariff rates reduced to 0%.tariff rates reduced to 0%.• 58% of the textile product 58% of the textile product categories will categories will have their tariff rates have their tariff rates reduced to 0% by 2010, reduced to 0% by 2010, and the tariff rates of the and the tariff rates of the other 27% will beother 27% will be reduced to 0% in 2015.reduced to 0% in 2015.
Base Base RateRate
20052005 20062006 20072007 20082008 20092009 20102010
>20>20 2020 1616 1212 88 55 00
Base Base RateRate
20052005 20062006 20072007 20082008 20092009 20102010 20112011 20122012 20132013 20142014 20152015
>20>20 2020 1616 12.512.5 12.512.5 12.512.5 55 55 55 55 55 00
Australia’s Tariff Australia’s Tariff Reduction ScheduleReduction Schedule• For apparel items and For apparel items and
some finished textiles some finished textiles with current tariffs of with current tariffs of 25%, Australia will reduce 25%, Australia will reduce the tariffs to 12.5% on the tariffs to 12.5% on January 1, 2005. Tariffs will January 1, 2005. Tariffs will be further reduced to 5% be further reduced to 5% in 2010, and eliminatedin 2010, and eliminated in 2015.in 2015.
Base Base RateRate
20052005 20062006 20072007 20082008 20092009 20102010 20112011 20122012 20132013 20142014 20152015
2525 12.512.5 12.512.5 12.512.5 12.512.5 12.512.5 55 55 55 55 55 00
Australia’s Tariff Australia’s Tariff Reduction ScheduleReduction Schedule• For textiles with For textiles with tariffs at 10% and 15%, tariffs at 10% and 15%, Australia will reduce Australia will reduce the tariffs to 5% on the tariffs to 5% on January 1, 2005, and January 1, 2005, and eliminate the tariffs eliminate the tariffs in 2010.in 2010.
Base Base RateRate
20052005 20062006 20072007 20082008 20092009 20102010
10, 1510, 15 55 55 55 55 55 00
Rules of OriginRules of Origin
• Substantial Substantial Transformation Transformation and and Regional Value Regional Value Content of not less Content of not less than than 55 percent55 percent
At least 30 percent of value of a textile product is from Thailand. The other 25 percent of value of the product can come from developing countries.
Plastic and Articles Plastic and Articles thereof thereof
(Chapter 39)(Chapter 39)
5%
ASEAN EU AUSTRALIA BAHRAINBANGLADESH CANADA CHILE CHINAINDIA JAPAN KOREA,REPUBLIC OF MEXICONEW ZEALAND RUSSIAN FEDERATION SOUTH AFRICA SRI LANKAUNITED STATES OTHERS
5%
7%
11%
10%
11% 19%
36%
Exports
World = 141.8 Billion BahtAustralia = 6.9 Billion Baht
World = 126.4 Billion BahtAustralia = 0.7 Billion Baht
Imports
Year 2003
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Million Baht
2001 2002 2003Exports Imports
Plastic and Articles Plastic and Articles thereof thereof
(Chapter 39)(Chapter 39)
56%
12%
3923: Plastic articles for packing of goods, lids, caps, and other closures
3901: Polymers of ethylene
Exports
Tariff Tariff StructureStructure
3901 Polymers of ethylene, in primary forms 5 10, 20
3902Polymers of propylene or of other olefins, in primary forms
0, 5 5, 10, 20
3906 Acrylic polymers, in primary forms 5 20
3907Polyacetals, other polyethers, in primary forms
5 20
3909Amino-resins, phenolic resins and polyurethanes
5 5, 20
3919
Self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes of plastics
5 10, 20, 30
3920
Other plastic plates, sheets, film, foil, non-cellular, and not combined with other materials
0, 5 5, 10, 30
3921Other plates, sheets , film, foil, strip of plastics
0, 5 5, 10, 20,30
3923Plastic articles for packing of goods, lids, caps, and other closures
5 5, 15, 30
3926 Other articles of plastics 0, 5, 10, 25 10, 30
Tariff Rate (%)
Australia Thailand
Thailand’s Tariff Thailand’s Tariff Reduction ScheduleReduction Schedule
• Approximately 10% of Approximately 10% of plastic products plastic products will have their tariff will have their tariff rates reduced to 0% rates reduced to 0% on January 1, 2005, and on January 1, 2005, and the other 90% willthe other 90% will have their tariff rates have their tariff rates reduced to 0% by 2010.reduced to 0% by 2010.
Base RateBase Rate 20052005 20062006 20072007 20082008 20092009 20102010
1010 88 88 55 55 00 00
2020 1616 1212 88 55 55 00
>20>20 2020 1616 1212 88 55 00
Australia’s Tariff Australia’s Tariff Reduction ScheduleReduction Schedule• For plastic and chemical For plastic and chemical
items with currentitems with current tariffs of 5%, Australia tariffs of 5%, Australia will eliminate the tariffswill eliminate the tariffs in 2008.in 2008.Base Base
RateRate
20052005 20062006 20072007 20082008 20092009 20102010
55 55 55 55 00 00 00
1010 55 55 55 55 55 00
Rules of OriginRules of Origin
• Product of a Product of a chemical reaction chemical reaction oror• Substantial Substantial TransformationTransformation• Substantial Substantial Transformation and Transformation and RegionalRegional Value Content (40% by weight)
Iron and Steel Iron and Steel (Chapter 72-73)(Chapter 72-73)
Year 2003
5%11%
18%
11%
32%
ASEAN EU AUSTRALIABAHRAIN BANGLADESH CANADACHILE CHINA INDIAJAPAN KOREA,REPUBLIC OF MEXICONEW ZEALAND RUSSIAN FEDERATION SOUTH AFRICASRI LANKA UNITED STATES OTHERS
15% 9%2%
42%
Exports
Imports
World = 74.4 Billion BahtAustralia = 3.6 Billion Baht
World = 234.3 Billion BahtAustralia = 5.7 Billion Baht
Iron and Steel Iron and Steel (Chapter 72-73)(Chapter 72-73)
-
1,000
2,000
3,000
4,000
5,000
6,000
Million Baht
2001 2002 2003
Exports Imports
HSHS DescriptionDescription TradeTrade72072077
Semi-finished products of Semi-finished products of iron or non-alloy steeliron or non-alloy steel
Net Net ImporterImporter
72172166
Angles, shapes and Angles, shapes and sections ofsections of
Iron or non-alloy steelIron or non-alloy steel
Net Net ExporterExporter
72072088
Flat-rolled products of iron Flat-rolled products of iron or non-alloy steel, hot or non-alloy steel, hot rolledrolled
Net Net ImporterImporter
72072044
Waste and scrap; re-Waste and scrap; re-melting scrap ingots of iron melting scrap ingots of iron or steelor steel
Net Net ImporterImporter
72172199
Flat-rolled products of Flat-rolled products of stainless steelstainless steel
Net Net ExporterExporter
73073066
Other tubes, pipes and Other tubes, pipes and hollowhollow
profiles of iron or steelprofiles of iron or steel
Net Net ExporterExporter
73273266
Other articles of iron or Other articles of iron or steel (ex. grinding balls, steel (ex. grinding balls, baskets)baskets)
Net Net ImporterImporter
Tariff Tariff StructureStructure
72077207Semi-finished products of iron or Semi-finished products of iron or non-alloy steelnon-alloy steel
0 1
72167216
Angles, shapes and sections ofAngles, shapes and sections of
Iron or non-alloy steelIron or non-alloy steel0 10, 11
72087208Flat-rolled products of iron or non-Flat-rolled products of iron or non-alloy steel, hot rolledalloy steel, hot rolled
0, 4 1, 7.5
72047204Waste and scrap; re-melting scrap Waste and scrap; re-melting scrap ingots of iron or steelingots of iron or steel
0, 4 1
72197219Flat-rolled products of stainless Flat-rolled products of stainless steelsteel
0, 4 1, 5
73067306
Other tubes, pipes and hollowOther tubes, pipes and hollow
profiles of iron or steelprofiles of iron or steel4 1, 12
73267326Other articles of iron or steel (ex. Other articles of iron or steel (ex. grinding balls, baskets)grinding balls, baskets)
4, 5, 10 15, 20
Tariff Rate (%)
Australia Thailand
Thailand’s Tariff Thailand’s Tariff Reduction ScheduleReduction Schedule
Base Base RateRate
20052005 20062006 20072007 20082008 20092009 20102010 20112011 20122012 20132013 20142014 20152015
1010 55 55 55 55 55 55 55 55 55 55 00
> 10> 10 1010 1010 1010 1010 1010 1010 1010 1010 1010 1010 00
72167216 Angles, shapes and sections of iron or non-alloy steelAngles, shapes and sections of iron or non-alloy steel
• For semi-finished For semi-finished products (7207), waste and products (7207), waste and scrap (7204), and flat scrap (7204), and flat rolled products of stainlessrolled products of stainless steel (7219), tariff rates steel (7219), tariff rates will be reduced to 0% on will be reduced to 0% on January 1, 2005January 1, 2005
• For angles, shapes and For angles, shapes and sections of iron or non-sections of iron or non- alloy steel (7216):alloy steel (7216):
Thailand’s Tariff Thailand’s Tariff Reduction ScheduleReduction Schedule
Base Base RateRate
20052005 20062006 20072007 20082008 20092009 20102010 20112011 20122012 20132013 20142014 20152015
11 11 11 11 11 11 11 11 11 11 11 00
1010 1010 1010 1010 1010 1010 55 55 55 55 55 00
1010 55 55 55 55 55 55 55 55 55 55 00
72087208 Flat-rolled products of iron or non-alloy steel, hot rolledFlat-rolled products of iron or non-alloy steel, hot rolled
• For flat-rolled products For flat-rolled products of iron or non-alloy steel,of iron or non-alloy steel, hot rolled (7216):hot rolled (7216):
• For other tubes, pipes and hollow profiles of iron or steel (7306):(7306):
Base Base RateRate
20052005 20062006 20072007 20082008 20092009 20102010 20112011 20122012 20132013 20142014 20152015
1212 66 66 66 66 66 66 66 66 66 66 00
73067306 Other tubes, pipes and hollow profiles of iron or steelOther tubes, pipes and hollow profiles of iron or steel
Thailand’s Tariff Thailand’s Tariff Reduction ScheduleReduction Schedule
• For other articles of iron or steel (7326):(7326):
Base Base RateRate
20052005 20062006 20072007 20082008 20092009 20102010
2020 1616 1212 88 55 55 00
73267326 Other articles of iron or steelOther articles of iron or steel
Australia’s Tariff Australia’s Tariff Reduction ScheduleReduction Schedule• Nearly all of iron and Nearly all of iron and
steel products will have steel products will have their tariffs reduced to their tariffs reduced to 0% on January 1, 2005.0% on January 1, 2005.
• For wire of iron or steel For wire of iron or steel
(7217), some of tubes and (7217), some of tubes and pipes (7306), Australia pipes (7306), Australia will bind its current 4% will bind its current 4% tariffs through 2009, tariffs through 2009, before elimination in 2010.before elimination in 2010.• For springs and their For springs and their leaves (7320), tariff ratesleaves (7320), tariff rates will be reduced from 10% will be reduced from 10% to 5% on January 1,to 5% on January 1, 2005 and further reduced 2005 and further reduced to 0% in 2010to 0% in 2010
Rules of OriginRules of Origin
• Substantial Substantial TransformationTransformation - Change to subheading from any other heading - Change to heading from any other heading - Change to subheading from any other subheading