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Nov. 2--FREE TRADE AREAS AND THE AUTO SECTOR: Free Trade Area (FTA) agreements will lower customs duties on imported products and reduce non-tariff barriers such as licensing, quotas and prohibitive customs procedures. These measures will usher in a new environment for the automotive industry in Asia in the next decade.
The auto industry is protected by high tariff and non-tariff barriers. In Thailand, imported cars are subject to 80 percent customs duty and car parts are taxed up to 42 percent. In a number of countries (including Thailand) excise duty is charged on complete vehicles based on the Cost, Insurance and Freight (CIF) price plus the customs duty, multiplying its effect.
Many countries exclude their auto sectors in ...