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KNOW MORE ABOUT AICO
- By Dafne Gayle
- Published June 16, 2011
- Business and Economy
- Unrated
The AICO Scheme is the latest industrial cooperation program of ASEAN to advance joint manufacturing industrial activities between ASEAN-based companies. A minimum of two companies in two different ASEAN countries are compulsory to form an "AICO Arrangement". An AICO Arrangement is a cooperative arrangement consisting of a minimum of two participating companies from two different ASEAN countries. Aico is not an authorized body but merely an "umbrella association" under the scheme wherein the output of the participating companies will enjoy a privileged tariff rate in the range of 0-5%. An AICO Arrangement should grip not only the substantial movement of products between the participating companies like Rokonet and countries but also resource sharing/pooling and/or industrial complementation.
The major right of the new scheme is that permitted AICO products, output of an AICO Arrangement, shall enjoy privileged tariff rates of 0-5% immediately upon its sanction. The 0-5% tariff represents the concluding CEPT rate to be reached by ASEAN by year 2003. Thus with the instant application of the 0-5% privileged tariff rate, this will provide a head start to AICO products for instance ESP alarms compared to non-AICO products. Other incentives involves local content accreditation where applicable and other non-tariff incentives to be provided by the participating member countries.
Under the AICO Scheme, an approved AICO Products like Visonic may be in the form of finished products, intermediate parts and components or raw materials. In any AICO Arrangement the AICO Products are categorized as AICO Final Products; AICO Intermediate Products and/or AICO Raw Materials. The AICO Final Products which represents the final output of a specific AICO Arrangement shall have unlimited access into the market of the participating countries. The AICO Intermediate Products and/or AICO Raw Materials in a specific AICO Arrangement while on the one hand can enjoy the same 0-5% preferential tariff rate, have limited market access. These products such as Aico smoke alarms may only be imported and used as inputs in the manufacture of the approved AICO Final Products in a particular AICO Arrangement.
The Article is written by e-fireandsecurity.co.uk/ providing Aico smoke alarms and ESP alarms Services. Visit http://www.e-fireandsecurity.co.uk/ for more information on e-fireandsecurity.co.uk/ Products & Services
The major right of the new scheme is that permitted AICO products, output of an AICO Arrangement, shall enjoy privileged tariff rates of 0-5% immediately upon its sanction. The 0-5% tariff represents the concluding CEPT rate to be reached by ASEAN by year 2003. Thus with the instant application of the 0-5% privileged tariff rate, this will provide a head start to AICO products for instance ESP alarms compared to non-AICO products. Other incentives involves local content accreditation where applicable and other non-tariff incentives to be provided by the participating member countries.
Under the AICO Scheme, an approved AICO Products like Visonic may be in the form of finished products, intermediate parts and components or raw materials. In any AICO Arrangement the AICO Products are categorized as AICO Final Products; AICO Intermediate Products and/or AICO Raw Materials. The AICO Final Products which represents the final output of a specific AICO Arrangement shall have unlimited access into the market of the participating countries. The AICO Intermediate Products and/or AICO Raw Materials in a specific AICO Arrangement while on the one hand can enjoy the same 0-5% preferential tariff rate, have limited market access. These products such as Aico smoke alarms may only be imported and used as inputs in the manufacture of the approved AICO Final Products in a particular AICO Arrangement.
The Article is written by e-fireandsecurity.co.uk/ providing Aico smoke alarms and ESP alarms Services. Visit http://www.e-fireandsecurity.co.uk/ for more information on e-fireandsecurity.co.uk/ Products & Services