Paper Title
Utilization Of Preferential Tariff Under Asean Free Trade Area (AFTA): Analysis On Malaysia

Abstract
It has been a common word of mouth that when referring to ASEAN Free Trade Area (AFTA), the reducing numbers of tariff lines liberalized to 0% is a measure of success and further associated to increased intra-regional trade. With more countries in ASEAN generally liberalizing their economies and actively reducing the Most Favoured Nation (MFN) rates, the preferential tariff under AFTA would have minimal impact on trade patterns unless the preferential tariff and its policy is effective. This paper aims to calculate and analyse the utilization of tariffs under AFTA by taking Malaysia as an example for the period 2007-2011 based on the value of Certificate of Origin (CO) and its export to ASEAN countries. Analysis is expanded with a �MFN proxy� by excluding Singapore and the results show that the utilization rates remain low and suggest that preferential tariffs are only used in the same products. Keywords - Tariff Utilization, AFTA, AFTA Utilization, Malaysia Exports, Certificate of Origin, Rules of Origin, ASEAN, AFTA Malaysia.