MEMORANDUM OF UNDERSTANDING,
ON STANDSTILL AND ROLLBACK ON NON-TARIFF BARRIERS AMONG ASEAN COUNTRIES
THE G O V E R N M E N T S OF B R U N E I DARUSSALAM, THE REPUBLIC OF INDONESIA, MALAYSIA, THE REPUBLIC OF THE PHILIPPINES, THE REPUBLIC OF SINGAPORE AND THE KINGDOM OF THAILAND ( h e r e i n a f t e r r e f e r r e d t o ' a s t h e " C o n t r a c t i n g P a r t i e s " ) , Member S t a t e s of the A s s o c i a t i o n of Southeast A s i a n N a t i o n s
(ASEAN):
MINDFUL of the D e c l a r a t i o n of ASEAN C o n c o r d signed in B a l i , I n d o n e s i a on 24 February 1976 which p r o v i d e s t h a t Member S t a t e s shall take c o o p e r a t i v e a c t i o n in t h e i r n a t i o n a l and r e g i o n a l d e v e l o p m e n t p r o g r a m m e s , u t i l i z i n g as far as p o s s i b l e the r e s o u r c e s a v a i l a b l e in, the ASEAN r e g i o n to b r o a d e n the c o m p l e m e n t a r i t y of t h e i r r e s p e c t i v e e c o n o m i e s ;
AWARE of the D e c l a r a t i o n of ASEAN C o n c o r d ' s p r o v i s i o n for a p r o g r a m m e of action that seeks c o o p e r a t i o n in the f i e l d s of t r a d e in o r d e r to p r o m o t e d e v e l o p m e n t and growth of new p r o d u c t i o n and t r a d e and to improve the trade s t r u c t u r e s of i n d i v i d u a l s t a t e s and among ASEAN c o u n t r i e s ;
C O N S C I O U S of the need to a d d r e s s b o t h t a r i f f and n o n - t a r i f f b a r r i e r s to t r a d e as means for a c h i e v i n g t h e s e ends ; ,
24 F e b r u a r y 1977 p r o v i d e s for the a d o p t i o n of v a r i o u s i n s t r u m e n t s , among t h e m the l i b e r a l i z a t i o n of n o n - t a r i f f b a r r i e r s on a p r e f e r e n t i a l b a s i s ;
DESIRING to e f f e c t further the p r o v i s i o n s of the ASEAN-PTA in consonance with ASEAN's i n t e r n a t i o n a l
commi t m e n t s ;
HAVE agreed to sign a Memorandum of U n d e r s t a n d i n g
with the following p r o v i s i o n s :
I. DEFINITIONS
1. For the p u r p o s e of t h i s M e m o r a n d u m , all p a r t i e s
agree to the f o l l o w i n g d e f i n i t i o n s :
a) " S t a n d s t i l l C o m m i t m e n t " means the u n d e r t a k i n g by and among the C o n t r a c t i n g P a r t i e s not to i n t r o d u c e new or a d d i t i o n a l n o n - t a r i f f m e a s u r e s which would
impede i n t r a - A S E A N t r a d e ;
b) "Rollback Commitment" means the u n d e r t a k i n g by arid among C o n t r a c t i n g P a r t i e s to phase out or e l i m i n a t e n o n - t a r i f f m e a s u r e s which would i m p e d e
intra-ASEAN t r a d e ;
c) "Non-tariff measures" r e f e r 'to gove rnment m e a s u r e s
or p o l i c i e s other than d u t i e s wh ich a f f e c t t r a d e .
II. EXTENT/COVERAGE OF COMMITMENT
e e m e a s u r e s wh ich are i n c o n s i s t e n t with the G e n e r a l A g r e e m e n t on T a r i f f s and Trade (GATT) but also n o n - t a r i f f m e a s u r e s
which are c o n s i s t e n t with GATT;
3. The C o n t r a c t i n g P a r t i e s shall ' implement t h e i r c ommi tments on s t a n d s t i l l and r o l l b a c k to c a t e g o r i e s of non-t a r i f f m e a s u r e s , innon-ter a l i a , non-t h o s e l i s non-t e d in Annex I,
a f f e c t i n g ASEAN p r o d u c t s of i n t e r e s t to and b e i n g t r a d e d in
ASEAN; ' , '
4. W i t h o u t p r e j u d i c e to the o b l i g a t i o n s of the C o n t r a c t i n g P a r t i e s under GATT, ASEAN p r o d u c t s shall be
taken to mean p r o d u c t s which q u a l i f y as such i>n a c c o r d a n c with the r u l e s of o r i g i n in C h a p t e r VIII, A r t i c l e 15 of th PTA.
Ill . MODALITIES
5. The C o n t r a c t i n g P a r t i e s shall i m p l e m e n t t h e i r s t a n d s t i l l c o m m i t m e n t s under t h i s M e m o r a n d u m from its ' d a t e
of entry into f o r c e ;
6. The C o n t r a c t i n g P a r t i e s reiterat'e t h e i r c o m m i t m e n t s
m a d e on' s t a n d s t i l l at Punta del E s t e . Noh-tar-iff measures which are c o n s i s t e n t with GATT, if i n t r o d u c e d , shall not be a p p l i e d , or may be a'pplied to a l e s s e r d e g r e e , on i m p o r t s from the C o n t r a c t i n g P a r t i e s if th.ey quali'fy under the rules
of orig'in in the PTA;
Non-tariff m e a s u r e s which are c o n s i s t e n t with GATT shall be n e g o t i a t e d for r o l l b a c k by the C o n t r a c t i n g P a r t i e s on a p r e f e r e n t i a l b a s i s ;
8. The n e g o t i a t i o n s r e f e r r e d to in p a r a g r a p h 7 shall
be u n d e r t a k e n by the Trade P r e f e r e n c e s N e g o t i a t i n g Group (TPNG) e s t a b l i s h e d by the C o m m i t t e e on Trade and Tourism (COTT) and shall commence at the 23rd M e e t i n g of COTT;
9. N e g o t i a t i o n s shall be undertaken in any of the
following manners: a p r o d u c t s p e c i f i c a p p r o a c h or a b a r r i e r -s p e c i f i c a p p r o a c h or a -s e c t o r - -s p e c i f i c a p p r o a c h ;
10. Each C o n t r a c t i n g Party shall' e x t e n d all c o n c e s s i o n s
agreed u p o n in the n e g o t i a t i o n s to all the C o n t r a c t i n g P a r t i e s on an.ASEAN M o s t - F a v o u r e d N a t i o n (MFN) b a s i s .
IV. SURVEILLANCE
11. T h e ASEAN S e c r e t a r i a t shall function a n d serve a s the s u r v e i l l a n c e body r e s p o n s i b l e for m o n i t o r i n g the a d h e r e n c e to the c o m m i t m e n t s and o b l i g a t i o n s of the C o n t r a c t i n g P a r t i e s u n d e r this Memorandum';
1 2 . The ASEAN S e c r e t a r i a t shall receiv.e all
n o t i f i c a t i o n s and r e v e r s e n o t i f i c a t i o n s on the s u s p e n s i o n
and v i o l a t i o n of commitments under this Memorandum and
13. The ASEAN S e c r e t a r i a t shall r e p o r t to all the C o n t r a c t i n g P a r t i e s on a semi-annual b a s i s and i n ' a c o n s o l i d a t e d fashion a-11 d e v e l o p m e n t s on the i m p l e m e n t a t i o n
of this M e m o r a n d u m .
V. NOTIFICATION PROCEDURES
14. The C o n t r a c t i n g P a r t i e s shall notify the AS'EAN
S e c r e t a r i a t of any i m p o s i t i o n of new n o n - t a r i f f m e a s u r e s by
them and shall also submit 'periodically to the said b o d y an
u p d a t e d list of n o n - t a r i f f m e a s u r e s m a i n t a i n e d by t h e m ;
VI. CONSULTATIONS
15. C o n s u l t a t i o n s may be u n d e r t a k e n by the C o n t r a c t i n g
P a r t i e s in a c c o r d a n c e w i t h the p r o v i s i o n s of C h a p t e r V-II ,
A r t i c l e 14 of the ASEAN-PTA.
VII. EMERGENCY/SAFEGUARD MEASURES/ DEVELOPMENTAL ASSISTANCE
16. C o n t r a c t i n g Parties may suspend p r o v i s i o n a l l y and w i t h o u t d i s c r i m i n a t i o n t h e a p p l i c a t i o n o f t h e i r s t a n d s t i l l or rollback c o m m i t m e n t s with r e s p e c t to p a r t i c u l a r p r o d u c t ( s ) w i t h c o n c u r r e n t n o t i f i c a t i o n t o t h e ASEAN
market share,1 p r o f i t s , p r o d u c t i v i t y , return on investments
or u t i l i z a t i o n of c a p a c i t y .
1 7 . W i t h o u t p r e j u d i c e to its i n t e r n a t i o n a l o b l i g a t i o n s ,
a C o n t r a c t i n g Party may i n s t i t u t e or i n t e n s i f y q u a n t i t a t i v e
r e s t r i c t i o n s to f o r e s t a l l1 the threat of or to s t o p a s e r i o u s
d e c l i n e in m o n e t a r y r e s e r v e s ;
18. W h e r e any of the' a f o r e c i t e d e m e r g e n c y / s a f e g u a r d measures in p a r a g r a p h s 16 and 17 are taken, concurrent
n o t i f i c a t i o n of such action must be g i v e n to the ASEAN S e c r e t a r i a t . The s u s p e n s i o n shall be for a p e r i o d of ninety d a y s d u r i n g which there shall be c o n s u l t a t i o n and
n e g o t i a t i o n s among i n t e r e s t e d C o n t r a c t i n g P a r t i e s with the view to a r r i v i n g at a s a t i s f a c t o r y s o l u t i o n i n c l u d i n g c o m p e n s a t o r y a d j u s t m e n t s , if n e c e s s a r y ;
19. W i t h o u t p r e j u d i c e to the c o m m i t m e n t o f1 C o n t r a c t i-ng P a r t i e s to GATT, p r o t e c t i o n of d e s e r v i n g infant i n d u s t r i e s
w i l l be allowed p r o v i d e d t h a t immed iate n o t i f i c a t i o n is served to o t h e r C o n t r a c t i n g P a r t i e s . The d u r a t i o n of
p r o t e c t i o n will be for a s p e c i f i c p e r i o d of time with p o s s i b l e p r e f e r e n t i a l t r e a t m e n t t o b e n e g o t i a t e d w i t h
a f f e c t e d C o n t r a c t i n g P a r t i e s .
VIII. GENERAL EXCEPTIONS
h i s t o r i c and a r c h a e o l o g i c a l v a l u e as p r o v i d e d for under
A r t i c l e XX of the GAIT,
IX. ENTRY INTO FORCE
2 1 . This M e m o r a n d u m of U n d e r s t a n d i n g shall e n t e r into
force from the d a t e of its s i g n a t u r e and shall i n i t i a l l y
apply for a p e r i o d of five (5) y e a r s . It may be extended by
the consensus of all member states beyond the original five-year p e r i o d .
X. FINAL PROVISIONS
22. This M e m o r a n d u m of U n d e r s t a n d i n g may be amended by consensus of the C o n t r a c t i n g P a r t i e s ;
23. This M e m o r a n d u m of U n d e r s t a n d i n g shall be d e p o s i t e d with the S e c r e t a r y - G e n e r a l of the ASEAN S e c r e t a r i a t who
shall p r o m p t l y furnish a c e r t i f i e d copy t h e r e o f to each of t h e C o n t r a c t i n g P a r t i e s .
In witness wh ereof, the undersigned, duly
authorized t h e r e t o by t h e i r r e s p e c t i v e G o v e r n m e n t s , 'have
s i g n e d t h i s A g r e e m e n t .
Done in M a n i l a , P h i l i p p i n e s this F i f t e e n t h day of D e c e m b e r N i n e t e e n Hundred E i g h t y Seven in one o r i g i n a l copy
For the G o v e r n m e n t B r u n e i Darussalam:
o f
PG. DATO DR. HJ. ISMAIL M i n i s t e r of D e:
PG. HJ. DAMIT
For the Government of the R e p u b l i c of I n d o n e s i a :
M i n i s t e r
F i n a n c e ,
ALI W A R D H A N A
C o o r d i n a t o r for Economy,
I n d u s t r y and D e v e l o p m e n t Superv i s ion
For the Government of M a l a y s ia:
DATIN PADUKA RAFIDAH AZIZ M i n i s t e r of Trade and Industry
For the G o v e r n m e n t of the R e p u b l i c of the Philippines.:
S . CONCEPi
of Trade and Industry
For the G o v e r n m e n t of the R e p u b l i c of Singapore:
RICHARD HU TSU TAU M i n i s t e r for F i n a n c e
For the Government of the K i n g d o m of T h a i l a n d :
ANNEX I
LIST OF NON-TARIFF MEASURES
I. GOVERNMENT PARTICIPATION IN TRADE AND RESTRICTIVE PRACTICES TOLERATED B Y ' G O V E R N M E N T S
Government aid
C o u n t e r v a i l i n g d u t i e s
Government procurement
Restrictive practices toler,ated by governments
State t r a d i n g , g o v e r n m e n t monopoly p r a c t i c e s , etc. II. CUSTOMS AND ADMINISTRATIVE ENTRY PROCEDURES
Ant i-dump ing d u t i e s
Valua't ion
C u s t o m s c l a s s i f i c a t i o n
Consular f o r m a l i t i e s and d o c u m e n t a t i o n
Samples ;
Rules of o r i g i n Customs formal i t i e s
III. TECHNICAL BARRIERS TO' TRADE
G e n e r a l
Technical regulations and standards .Testing and c e r t i f i c a t i o n a r r a n g e m e n t s IV. SPECIFIC LIMITATIONS
Q u a n t i t a t i v e r e s t r i c t i o n s a n d i m p o r t licensing Embargoes and o.ther restrictions of similar effect
Screen-time quotas and other mixing r e g u l a t i o n s
E x c h a n g e c o n t r o l
D i s c r i m i n a t i o n r e s u l t i n g from b i l a t e r a l a g r e e m e n t s D i s c r i m i n a t o r y sourcing
Measures to reg'ulate d o m e s t i c p r i c e
R e q u i r e m e n t s c o n c e r n i n g marking, l a b e l l i n g and p a c k a g i n g
T a r i f f q u o t a s
V. CHARGES ON IMPORTS Prior import d e p o s i t s
S u r c h a r g e s , port taxes, s t a t i s t i c a l taxes, etc. D i s c r i m i n a t o r y film't-axes, use taxes,' e t c .
D i s c r i m i n a t o r y c r e d i t r e s t r i c t i o n s Border tax adjustments
