© 2014 Tradewin, Business Confidential and Proprietary. Reproduction by written authorization only.

Tradewin - Asia Trade Update

2015 - Fourth Quarter

Country Development What does it mean?

Philippines Strategic Goods (Export) Controls regulations approved

After many years of trying, the Philippines has passed a law on the control of imports and exports of dual-use strategic goods. Implementing regulations will be issued in the coming months. Companies importing/exporting goods that are controlled in other countries (e.g. US/EU/Singapore/Malaysia) should be aware that licenses will also be required in Philippines on import as well as export.

Indonesia Amendments to Importer IdentificationNumber (API) regulations

Indonesia has changed its policies on what manufacturing companies are allowed to import into Indonesia several times. This amendment may make it easier for manufacturers to import some kinds of goods that are not used directly as production raw materials.

Indonesia Import labelling requirements

Indonesia has changed its requirements on product labelling many times over the last couple years. In September they were changed again. For many (but not all) products there are now more flexible Bahasa labelling requirements than previously.

Indonesia Goods RegistrationLetter (SPB) no longer required on import.

The Goods Registration Letter (Surat Pendaftaran Barang /SPB) for imported goods has been eliminated. However, many categories of imported goods must still have a Goods Registration Number (Nomor PendaftaranBarang /NPB). The NPB may be used on multiple shipments of the same goods.

Tradewin is the trade consulting and outsourced trade compliance arm of Expeditorsb

The Tradewin Asia Trade Update is meant as a resource for busy professionals to gain a quick awareness of important trade compliance developments in the Asia region that may effect the performance or cost of their supply chain. In this December 2015 edition, there are major developments around strategic goods in Philippines, some easing of restrictions in Indonesia, and a lot of new Free Trade Agreements that can offer great savings opportunities. Feel free to contact us anytime if you want to learn more or have any other trade compliance related need.Thank you! Greg Nichols, Principal – Tradewin Asia gregory.nichols@tradewin.net

Recent developments in APAC

© 2014 Tradewin, Business Confidential and Proprietary. Reproduction by written authorization only.

Country Development What does it mean?

Myanmar US companies may now utilize the Asia World Port Terminal (AWPT)

US companies were formally prohibited from using AWPT because its owner appears on a restriction list. US OFAC General License 20 allows the payment of port fees and shipping and handling charges to AWPT.

Australia ‘Bulk’ type licenses for export of controlleddual-use goods

Certain types of goods being exported to certain countries may be eligible for an ‘Australian General Export License’ or AUSGEL. This may cut down on the documentary compliance requirements on shipments of controlled goods and technologies.

2015 - Fourth Quarter

Tradewin Asia in Action!Accurate HS tariff classification is important not just for payment of customs duty and taxes but also to ensure the proper licenses have been obtained. Poor classification is a leading cause of supply chain disruptions.

Tradewin Asia has recently taken on HS tariff classification services for:- A leading consumer goods brand with retail stores throughout Asia- A fast expanding restaurant group which has opened over 15 new stores in five new countries in 2015 alone- A medical device company importing into China- A hardware provider to the construction industry throughout Asia

Tradewin is the trade consulting and outsourced trade compliance arm of Expeditors

Recent developments in APAC (Continued)

© 2014 Tradewin, Business Confidential and Proprietary. Reproduction by written authorization only.

Country Development What does it mean?

Asia / N America

Trans-Pacific Partnership (TPP) negotiations concluded

The TPP, a huge Free Trade Agreement including 11 countries, has taken a big step forward as negotiations have concluded. The Agreement now needs to be ratified in each country before it can take effect. Latest news is that it may not be voted on in US until late 2016 so implementation before 2017/18 is unlikely.

Singapore Turkey – Singapore Free Trade Agreement signed

This FTA will present an opportunity for Singapore manufacturers to lower their landed cost into Turkey through lower duty rates. It will likely go into effect sometime in 2016/17.

Vietnam EU-Vietnam Free Trade Agreement concluded

The negotiations for an FTA between Vietnam and EU are concluded. This Agreement will be the first full FTA between a developing Asian country and EU. For certain high duty goods, Vietnam may become a more desirable sourcing country. The Agreement must now be ratified and will likely not enter into force before 2018.

China – Korea China-Korea Free Trade Agreement ratified

The China-Korea FTA has been ratified and should go into effect in December 2015 or early 2016. Duties will be reduced gradually on most types of goods traded between the two countries. Goods must meet the Rules of Origin.

Australia –China

Australia – China Free Trade Agreement in force on December 20, 2015

Many goods will receive duty reductions immediately under the FTA. More duty reductions will occur in January 2016. Goods must meet the Rules of Origin.

Recent developments in Asia – Free Trade Agreements

2015 - Fourth Quarter

Tradewin is the trade consulting and outsourced trade compliance arm of Expeditors