Regional / Bilateral Trade Agreements

Pakistan                       Malaysia

Early Harvest Programme (EHP)

The Agreement on the Early Harvest Programme (EHP) for the Free Trade Area ( FTA ) between Malaysia and Pakistan was signed on Saturday, 1 October 2005 in Kuala Lumpur. The Pak-Malaysia EHP is operational from  January 1st 2006 and shall expire upon entry into force of the FTA or 31st March 2007.  The EHP is based on the 2004 import statistics and the Most Favoured Nation (MFN) applied tariff rates of 1 January 2005 of both countries.

The EHP covers products with MFN tariffs of 10% and below and upon implementation products with MFN tariffs of:

• 5% will be eliminated ;and

• 10% will be accorded a margin of preference of 50%.

Pakistan's EHP offer to Malaysia covers 125 tariff lines . The products include:

• Machinery; mechanical equipments and appliances; plastic products; chemical products; rubber and rubber products; and timber products.

Malaysia's offer to Pakistan covers 114 tariff lines.  The products are:

• Textile and clothing; agricultural products; and jewellery.

Interim Rules of Origin (ROO) will be applied to the products covered under the EHP. A 40% local content rule will be applied on the EHP products, while product specific rules will be applied to textile and clothing , and jewellery . The EHP ROO will be replaced by a new set of rules under the FTA.

World Trade Organisation (WTO) provisions governing safeguard actions, emergency measures and other remedies, including anti-dumping and countervailing measures shall be applicable to the products under the EHP and it shall be superseded and replaced by the relevant disciplines to be negotiated under the FTA. Disputes concerning the implementation of the EHP Agreement shall be settled amicably by mutual consultation.

The Pak-Malaysia EHP consists of the following components:

• AGREEMENT ON THE EARLY HARVEST PROGRAMME

• Annexes I, II, and III

Annexes

Annex 'I'

Annex "I"  is the List of products and the tariff preferences to be granted by the Government of Malaysia. 

Annex 'II'

Annex "II" is the List of products and the tariff preferences to be granted by the Government of Pakistan.

Annex 'III'

Annex "III" relates to the RULES OF ORIGIN - which have to be complied with by the exporters of the two countries in order to qualify their products for preferential duty benefits.

Government of Pakistan has issued following notifications to enforce Pak-Malaysia EHP:

Exemption from customs duty on imports from Malaysia notified by CBR, Customs (S.R.O.1298(I)/2005)