Beginner's Guide to Exporting. 4th Edition.

2 9 Beginner’s Guide To Exporting CHAPTER 6 OTHER USEFUL CONSIDERATIONS 6.1 FREE TRADE AGREEMENT (FTA) FTA is a legally binding agreement between two or more countries where member countries provide each other more favourable treatment such as: • Lower or zero tariff for export of goods • Relaxed or removal of quantitative import restrictions • Hassle free customs procedures • Improved market access for various services • Easier entry for businessmen • Better terms for investment Steps to benefit from FTAs: • Identify the FTA market you are exporting to • Determine the Harmonised System (HS Code) of your products • Check if the product is included in the tariff reduction and elimination schedule of each FTA.* • Check if the product satisfies the Rules of Origin (ROO) requirement. ROO determines the country of origin of a product to be eligible for tariff concession. • Apply for Cost Analysis (CA) through Dagang Net online application (http://www.dagangnet.com ) • Once CA is approved, apply for Preferential Certificate of Origin (PCO) from the same online application. • Present the PCO together with import documents to Custom Authority of the importing country to enjoy the tariff concession. * Please log on to (www.miti.gov.my > MITI > Promoting Trade > Free Trade Agreement) for further information.