Cambodia has simplified its tariff system in recent years and eliminated most non-tariff barriers to trade. Customs duties are now divided into four simple categories: luxury goods, such as automobiles, alcohol, tobacco, and cosmetics have a rate of 70%; finished products such as electronics, paint, and furniture carry a tariff of 35%; machinery and capital equipment have a rate of 15%; and raw materials carry a tariff of 7%. A few products, such as agricultural equipment and pharmaceutical products, are exempt from import tariffs, but are still subject to the 10% value-added tax (VAT). The United States resumed diplomatic ties with Cambodia in September 1993. Cambodia joined ASEAN in 1998.