It is the preferential tariffs concessions and other commitments negotiated and agreed upon by each ASEAN Member State within the framework of the ATIGA. These commitments are transposed into domestic legislation.
Malaysia has eliminated duties on 98.74% of its tariff lines in our ATIGA Tariff Schedules for 2015. We now only have 73 tariff lines or less than 1% (0.59%) that have duties of 5% to 20% covering tropical fruits and tobacco and highly sensitive products (rice), respectively. Malaysia has placed 82 Tariff Lines (TLs) which comprise of alcoholic beverages and arms weapons in the General Exclusion List. These products are not subject or import duties reduction or elimination.
Based on the commitments under AFTA, Cambodia, Lao PDR, Myanmar and Viet Nam eliminated duties on all products in 2015 with flexibility of 7% of tariff lines up to 2018.
With the reduction and elimination of the import duties, producers/manufacturers can afford to buy raw materials at a cheaper price and better quality from ASEAN countries. This would lead to the reduction in costs of production due to the elimination and reduction in tariff. As a result, prices of products will be cheaper and can compete not only within ASEAN Member States but within other countries as well. With larger scale of production and 625 million ASEAN populations, it provides broader market access to producers/manufacturers.