ASEAN Free Trade Area (AFTA)

ASEAN Free Trade Area (AFTA) is the free trade area launched by ASEAN members in January 1992 to eliminate tariffs on goods traded among Southeast Asian countries, now governed by the ASEAN Trade in Goods Agreement.

1992 International Southeast Asia Enforced by ASEAN Secretariat ASEAN Trade in Goods Agreement (ATIGA, 2009)

What it requires

Under ATIGA, in effect since 2010, goods meeting rules of origin, generally 40 percent regional value content or a change in tariff heading, trade at zero or near-zero tariffs, supported by Form D certificates or self-certification. Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand removed duties on almost all tariff lines by 2010, and Cambodia, Laos, Myanmar and Vietnam largely by 2018. Members exchange electronic certificates through the ASEAN Single Window.

Why it matters

AFTA lets brands that source in Southeast Asia move components and finished goods between member countries duty-free, which supports regional hub strategies for Asia-Pacific fulfillment. A company can store inventory in a Singapore or Malaysian warehouse and ship to buyers in Thailand or the Philippines at preferential rates if the goods qualify as ASEAN-originating. It also matters for US tariff planning: as brands shift production from China to Vietnam or Thailand, regional component sourcing affects both preference eligibility and origin claims.

Related laws

Sources

Not legal advice.