How to Enjoy the Preferential Tariff of ASEAN Free Trade Area
Release time:
2020-10-14 09:33
Source:
The ASEAN Public
On September 20, the ASEAN-Wide Self Certification Scheme (AWSC) was officially launched.
"Certified exporters" (Certified Exporter, referred to as CE) operating in ASEAN countries can choose to make a "declaration of origin" on export documents such as commercial invoices, as a certificate of origin for exports to other ASEAN countries, and enjoy the ASEAN Free Trade Area tariff preferences, without the need to apply for the ASEAN Certificate of Origin (Form D) from the origin visa agency. This measure will help reduce the time required for enterprises to import and export and reduce trade costs.
Where does the legal basis come from?
Ten ASEAN countries signed the First Protocol to Amend the ATIGA in January this year and approved it recently. The Protocol modifies the operating procedures for the certification of rules of origin, and expands the certificate of origin (Proof of Origin) from the original one (I. e. certificate of origin) to two, namely:
Certificate of Origin (Certificate of Origin, ASEAN Certificate is Form D); or Declaration of Origin (Origin Declaration) completed by "Certified Exporter" (CE).
When exporting to another ASEAN country, eligible exporters can export normally and enjoy the tariff reduction and exemption under the ASEAN Free Trade Area as long as they provide any of the above two certificates.
Which companies can become "certified exporters"?
● The exporter is legally registered in the exporting country;
● Exporters must ensure that their authorized signatories responsible for making a declaration of origin know and understand the rules of origin in the ASEAN Agreement on Trade in Goods;
● Exporters should have a satisfactory level of experience in exporting goods in accordance with the laws and regulations of the exporting country;
● The exporter has no record of any fraud in the rules of origin in accordance with the laws and regulations of the exporting country;
:: Exporters must have good compliance in accordance with the standards of risk management of the competent authorities of the exporting country;
● If the exporter is a trader (trader), it must have a "manufacturer's statement" (manufacturer's declaration), indicating the country of origin of the product, indicating that the manufacturer is ready to cooperate with the product retrospective inspection and verification if necessary.
● In accordance with the laws and regulations of the exporting country, exporters must have a sound accounting and recording system.
ASEAN member states have specific regulations on their "certified exporter" qualifications. For details, please refer to the regulations of the competent authorities of each country. Once approved as a "certified exporter", the enterprise is eligible to make a "declaration of origin. "Certified exporters" must bear corresponding legal responsibilities to ensure that their declarations of origin are legal and compliant, and cooperate with the competent authorities for retrospective verification.
How do I apply to become a "certified exporter"?
The exporter shall, at the request of the competent authority, submit an application in writing or electronically to the competent authority (generally the customs authority) of the country in which it is located, providing all necessary supporting documents.
If the competent authority determines that the exporter is eligible, it will approve the status of "certified exporter", inform the exporter in writing, and provide a business authorization code (Authorisation Code). The exporter must indicate the code in the declaration of origin.
After approval by the competent authorities of various countries, the "certified exporter" information will be entered into the "ASEAN region independent certification database" (AWSC Database). The database is managed and maintained by the ASEAN Secretariat and can be entered and queried by customs departments of various countries.
How does a "Certified Exporter" (CE) make a "Declaration of Origin"?
1. "Declaration of Origin" must contain the following information
1.CE Information: CE Enterprise Authorization Code (Authorisation Code)
2. Description of goods: product name; HS six-digit customs code or ASEAN Harmonized Tariff Mechanism (AHTN) code; criteria for determining origin; country of origin; FOB (FOB) when the criteria for determining origin of regional value components are used; Quantity of goods; Trademark (if applicable); Back to back declaration of origin, that is, the declaration of origin made by the ASEAN re-exporting country on the basis of the certificate text of the ASEAN country of origin, the certificate text code of the country of origin, the date of issue, the first exporting country, and the CE authorization code of the first exporting country (if applicable).
3. Certification of CE Authorized Signatory: The CE Authorized Signatory shall indicate in the Declaration of Origin that the goods meet all relevant requirements; hand-write the name or seal of the authorized signatory.
2. declaration of origin carrier. The declaration of origin should be indicated on the commercial invoice. If it is not possible to indicate on the commercial invoice at the export stage, you can choose to fill in the statement on any of the following commercial documents: bill, waybill or packing list, and submit it to the customs department together with the commercial invoice at the import stage. The above documents shall describe the condition of the goods in detail.
The date on which the document/instrument containing the declaration of origin is 3. shall be deemed to be the date of issue of the declaration of origin.
The number of 4. document/instrument containing a declaration of origin shall be deemed to be the number of the declaration of origin.
5., if the declaration of origin document itself does not have sufficient place to fill in all product information, an additional page can be listed.
6. validity period. The declaration of origin is valid for the same period as the certificate of origin, which is 12 months.
For more information, please refer to Annex 8 of the ASEAN Agreement on Trade in Goods, "Operating Procedures for Certification of Rules of Origin" (link attached) and the specific regulations of the competent authorities of each country. Encourage the vast number of Chinese enterprises that have invested and set up factories in ASEAN to actively make use of the preferential policies of the ASEAN Free Trade Area to carry out trade,There is no need to make a "wide net" investment in ASEAN, and you can choose to apply for a certificate of origin (including electronic certificate of origin) or make a declaration of origin when exporting to other ASEAN countries, saving costs.
"Operating Procedures for Certification of Rules of Origin" link: https://asean.org/storage/2012/05/ATIGA-08-Annex-8-amended-OCP-to-allow-AWSC-endorsed-AFTAC33.pdf
Tariff, Origin, ASEAN, Goods, Export