ASEAN: Regional Trends in Economic Integration, Export ... - USITC

in the ASEAN region as in other leading automotive countries. However, the presence of
a large number of multinational Tier One parts suppliers in the region has contributed to
the competitiveness of the ASEAN auto parts industry in the OEM market. In any case,
such requirements are less onerous in the aftermarket, where components do not have to
meet global OEMs’ stringent technical specifications and where local manufacturers are
reportedly more active.
With the gradual elimination of duties by the ASEAN-6 (table 7.1) as a result of the
AFTA/CEPT scheme 72 and the phase-out of many NTMs, the ASEAN region
experienced greater trade both within the region and with external partners. ASEAN
imports of auto parts from outside the region totaled $8.4 billion in 2008 and were
dominated by Japan, which was the source for over one-half of such imports (table 7.2).
Japan’s leading role in ASEAN automotive production largely explains its prominent
trading position. The EU and China are secondary import sources, although China’s
growth outpaced that of other sources over the period, more than tripling to $1.0 billion.
Despite its role as a leading export market, the United States is only a small supplier to
the ASEAN auto parts market, accounting for less than 4 percent of total imports in 2008.
TABLE 7.1 ASEAN country tariffs for motor vehicle parts, 2004, 2008, and 2010 (ad valorem percent)
ASEAN members 2004 2008 2010 a
Imports from other
ASEAN countries
Imports from non-
ASEAN countries
(MFN)
Imports from
other ASEAN
countries
Imports from non-
ASEAN countries
(MFN)
Imports from
other ASEAN
countries
Brunei 0–15 0–20 0–5 0–20 0
Burma 1–5 1–5 1–5 1–5 1–5
Cambodia
(b)
15–50 5–20 15–35 5
Indonesia 0–5 0–15 0–5 0–15 0
Laos 5–8 5–10 0–2 5–10 0–2
Malaysia 0–5 0–30 0 0–30 0
Philippines 0–5 3–15 0–5 3–15 0–5
Singapore 0 0 0 0 0
Thailand 0–5 10–30 0–5 10–30 0
Vietnam 0–20 0–30 0–5 0–29 0–5
Source: Agreement on the Common Effective Preferential Tariff (CEPT) Scheme for the ASEAN Free Trade Area,
Consolidated Package of Tariff Reductions for 2008, http://www.aseansec.org/19802.htm; Consolidated 2003 CEPT
Package by Country, Cambodia, http://www.aseansec.org/19119.htm (accessed April 28, 2010); Royal Malaysia
Customs Department, HS-Explorer (accessed April 2010); World Trade Organization, Tariff Analysis Online (accessed
April 2010).
a 2010 MFN rates for ASEAN imports from non-ASEAN countries are not available to USITC staff for every ASEAN
member country.
b Not available.
72 The CEPT scheme is discussed in more detail in chapter 2 of this report.
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