Common use of Consumption abroad Clause in Contracts

Consumption abroad. Nationals of A have moved abroad as tourists, students, or patients to consume the respective services. Mode 3: Commercial presence The service is provided within A by a locally-established affiliate, subsidiary, or representative office of a foreign-owned and – controlled company (bank, hotel group, construction company, etc.) Mode 4: Movement of natural persons A foreign national provides a service within A as an independent supplier (e.g., consultant, health worker) or employee of a service supplier (e.g. consultancy firm, hospital, construction company). Commercial linkages may exist among all four modes of supply. For example, a foreign company established under mode 3 in country A may employ nationals from country B (mode 4) to export services cross-border into countries B, C etc. Similarly, business visits into A (mode 4) may prove necessary to complement cross-border supplies into that country (mode 1) or to upgrade the capacity of a locally established office (mode 3). The ability of ASEAN individual professional service providers to provide the same professional service in another ASEAN member state is facilitated by the ASEAN Agreement of the Movement of Natural Persons (MNP Agreement) signed on 19 November 2012 in Cambodia which came into force 180 days thereafter. The MNP Agreement covers temporary entry of skilled workers, professionals and executives. The scope of the MNP Agreement is limited to business visitors, intra-corporate transferees, business visitors and contractual service suppliers. The agreement does not cover permanent entry to such persons including professionals who seek access to employment market and does not apply to unskilled labours. AMS have made commitments under the agreement in the form of the schedule of commitments. In addition, liberalisation of investment in the form of commercial presence of Mode 3 of professional service providers may also fall within the scope of liberalisation of investment sectors under the ASEAN Comprehensive Investment Agreement (ACIA).2 Liberalized services sectors under ACIA include services incidental to manufacturing; services incidental to agriculture; services incidental to fishery; services incidental to forestry; and services incidental to mining and quarrying. The Handbook also discusses the “mutual recognition agreement” (MRA) at the international and ASEAN levels. MRA is one of the important tools to increase the level of utilization of the liberalization of cross-border trade in professional services in ASEAN. MRA may be able to facilitate liberalization and increased cross-border trade in services in the sub-sectors as it facilitates recognition of professional qualifications rather than trying to obtain full harmonisation in regulations in professional services throughout all AMS. Part 2 of the Handbook discusses the various framework of mutual recognition on accountancy services, at the international and regional levels. Part 3 of the Handbooks provides a survey of the qualifications needed to qualify as professional accountants in AMS. Part 3 also discusses the preconditions required to set-up accountancy practices in AMS. Part 4 analyses various issues surrounding the liberalisation of accountancy profession in ASEAN, with particular attention on Mode 3 and Mode 4. Part 5 of the Handbook makes several proposals for reform before Part 6 concludes the Handbook.