RULES OF ORIGIN OPERATIONAL PROCEDURES. Ma Rosario V. Acosta Assistant Chief Export Division, POM Bureau of Customs

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1 RULES OF ORIGIN OPERATIONAL PROCEDURES Ma Rosario V. Acosta Assistant Chief Export Division, POM Bureau of Customs

2 To familiarize Customs Personnel on the procedures for the Issuance and verification of the Certificate of Origin. To guide Exporter on the step-by-step processes in securing a Certificate of Origin from BOC. To guide Importer in claiming Preferential Tariff Treatment for products covered by Certificate of Origin under Bilateral and Multilateral Trade Agreements.

3 Legally binding Agreement Two or more Countries Market Access for products Reduction or elimination of Tariff

4 GSP Form A- Generalized System of Preference Form D- ASEAN Trade in Goods Agreement Form E- ASEAN China Free Trade Area Form AK- ASEAN Korea Free Trade Area Form JP- JAPAN PHILIPPINES Economic Partnership Agreement Form AANZ- ASEAN-AUSTRALIA-NEW ZEALAND Free Trade Area Form AJ- ASEAN-JAPAN Comprehensive Economic Agreement White CO- CO for General Merchandise (non - preferential)

5 -declaration of exporter -certified by a Competent Authority (Bureau of Customs, Ministry of Trade or Department of Commerce or Chamber of Commerce) -states that the export products comply with the ORIGIN REQUIREMENTS -specified under bilateral, regional & multilateral Trading Arrangement

6 - Proves that the product exported is manufactured & produced in a specified country. - Serves as a basis of granting preferential tariff treatment by the importing country

7 GSP form A Generalized system of Preference CEPT Form D ASEAN Common Effective Preferential Tariff Form E ASEAN China FreeTrade Agreement Form JP Agreement Between Japan and the Republic of the Philippines for an Economic Partnership Form AK ASEAN Korea FreeTrade Agreement White CO CO for General Merchandise:

8 b. by the designated bodies under the supervision of government such as Chamber of Commerce or Trader s Association 1. Self-certification system by exporters, importers or either one of the two (e.g. NAFTA, U.S.,Canada, New Zealand) 2. Government certification system a. by the governmental authorities such as Customs or Trade Department (e.g. GSP, ASEAN-CEPT,ASEAN-China, JPEPA, ASEAN-Korea)

9 Certificate of origin Basic principle : 1. The C/O is issued by the competent governmental authority of the exporting country on request having been made in writing by the exporter or its authorized agent.

10 Certificate of origin Certifying authority : 2. The competent governmental authority of the exporting country may designate other entities or bodies to be responsible for the issuance of the certificate of origin. 3. When other entities or bodies are designated, the exporting country notifies in writing the other country of its designees. The competent government authority or the designated entity (the certifying authority) : Philippines Bureau of Customs

11 Certificate of origin Form and validity of C/O : 4. Upon the entry into force, the Parties establishes a format of the C/O in English in the Operational Procedures. 5. The C/O is completed in English. 6. The issued C/O is applicable to a single importation of an originating good of the exporting country into the importing country and be valid for period agreed upon from the date of issuance or such longer period in accordance with that country s laws and regulations.

12 Certificate of origin Administrative provisions : 7. The certifying authority of the exporting country provides the other country with specimen signatures and impressions of stamps used in the offices of the certifying authority. 8. Each country ensures that the certifying authority keeps a record of the C/O issued for a certain period after the date on which the certificate was issued. Such record will include all antecedents, which were presented to prove the qualification as an originating good of the exporting country.

13 Request for checking of certificate of origin 1. For determining whether a good imported under an FTA Party qualifies as an originating good of the other country, the customs authority of the importing country may request information relating to the origin of the good from the competent governmental authority of the exporting country on the basis of a C/O.

14 2. The competent governmental authority of the exporting country provides the information requested, in a period agreed upon, after the date of the receipt of the request. If the customs authority of the importing country considers necessary, it may require additional information relating to the origin of the good. If additional information is requested by the customs authority of the importing country, the competent governmental authority of the exporting country provides the information requested in a period agreed upon after the date of the receipt of the request.

15 Claim for preferential tariff treatment 1. The importing country requires a certificate of origin (C/O) for an originating good of the exporting country from importers who claim the preferential tariff treatment. 2. The importing country does not require a C/O from importers for: (a) an importation of a consignment of originating goods of the exporting country whose aggregate customs value does not exceed a certain amount as it may establish; or (b) an importation of an originating good of the exporting country, for which the importing country has waived the requirement for a C/O.

16 3. When an originating good of the exporting country is imported through the territory or territories of one or more third countries, the importing country may require importers, who claim the preferential tariff treatment, to submit: (a) (a) a copy of through bill of lading; or a certificate or any other information given by the customs authorities of such third countries or other relevant entities, which evidences that it has not undergone operations other than unloading, reloading or any other operation to preserve it in good condition in those third countries.

17 MATRIX OF OPERATIONAL PROCEDURES OF VARIOUS FTA-ROO ASEAN FTA I. ISSUING AUTHORITIES Government authorities: Customs PHI, SGP Ministry of Commerce- THA, KH, LA and MM Ministry of Trade IDN, MAL, VN Ministry of Foreign Affairs and Trade - BRU ASEAN CHINA FTA Government authorities China - Customs ASEAN KOREA FTA Authority designated by governments Korea - Chamber of Commerce Korean Customs Service

18 MATRIX OF OPERATIONAL PROCEDURES OF VARIOUS FTA-ROO ASEAN FTA ASEAN CHINA FTA ASEAN KOREA FTA II. APPLICATION Manufacturer and/or exporter shall apply in writing to relevant government authorities for pre-exportation verification Exporter or his authorized representative to submit written application for CO together with appropriate documents Same as in AFTA Producer and/or exporter or its representatives to apply for CO to apply after preexportation examination

19 MATRIX OF OPERATIONAL PROCEDURES OF VARIOUS FTA-ROO ASEAN FTA ASEAN CHINA FTA ASEAN KOREA FTA III. PRE-EXPORTATION EXAMINATION Government authorities ensure that: > application is duly completed and signed > origin of the product is in conformity with the ROO > statements in CO correspond with the documents > description, quantity and weight, marks and numbers conform with the product to be exported Same as in AFTA Same as in AFTA

20 MATRIX OF OPERATIONAL PROCEDURES OF VARIOUS FTA-ROO ASEAN FTA ASEAN CHINA FTA ASEAN KOREA FTA IV. ISSUANCE OF CO > Form D in quadruplicate > At the time of exportation or soon thereafter > Issued retroactively ( not more than 1 year after shipment) > Certified true copy (not > 1yr after issuance of original) Same but Form E Same but Form AK KOREA, Electronically issued C.O. ASEAN, manual issuance

21 MATRIX OF OPERATIONAL PROCEDURES OF VARIOUS FTA-ROO ASEAN FTA ASEAN CHINA FTA ASEAN KOREA FTA V. PRESENTATION Within 6 months after date of endorsement Submission thereafter for valid reason Within 4 months but could be extended up to 6 months Within 6 months Provided importation was before expiration < $200 no CO

22 MATRIX OF OPERATIONAL PROCEDURES OF VARIOUS FTA-ROO ASEAN FTA ASEAN CHINA FTA ASEAN KOREA FTA VI. ADMINISTRATIVE COOPERATION Member countries may request the issuing authority to conduct retroactive verification Same as in AFTA Same as in AFTA If not satisfied, member countries may request verification visits No provision

23 MATRIX OF OPERATIONAL PROCEDURES OF VARIOUS FTA-ROO ASEAN FTA ASEAN CHINA FTA ASEAN KOREA FTA VII. BACK TO BACK CO Issuing authority of third ASEAN country may issue the back to back CO subject to the presentation of the original CO No provision Issuing authority of intermediate party may issue a back to back CO provided that > a valid original CO is presented and > the importer is the exporter applying for the back to back CO > Verification procedures apply

24 MATRIX OF OPERATIONAL PROCEDURES OF VARIOUS FTA-ROO ASEAN FTA ASEAN CHINA FTA ASEAN KOREA FTA VIII. THIRD COUNTRY INVOICING Importing member state may accept the CO in cases where the invoice is issued by company or exporter located in third country No provision Same as in AFTA

25 MATRIX OF OPERATIONAL PROCEDURES OF VARIOUS FTA-ROO ASEAN FTA ASEAN CHINA FTA ASEAN KOREA FTA IX. PRODUCTS FOR EXHIBITION The good is originating The exporter dispatched the good from the territory of the exporting country The exporter sold the good in the importing country The good has been consigned during the exhibition in the territory of the importing party in the state in which it was sent for exhibition Same as in AFTA Same as in AFTA

26 MATRIX OF OPERATIONAL PROCEDURES OF VARIOUS FTA-ROO ASEAN FTA ASEAN CHINA FTA ASEAN KOREA FTA X. ACTION AGAINST FRAUD Government authorities to cooperate in the action to be taken in the respective state against the person involved Same as in AFTA Same as in AFTA Each party shall provide legal sanctions for fraudulent acts related to ROO

27 MATRIX OF OPERATIONAL PROCEDURES OF VARIOUS FTA-ROO ASEAN FTA ASEAN CHINA FTA ASEAN KOREA FTA XI. DISPUTE SETTLEMENT Importing and exporting countries to consult each other If no settlement, the issue will be raised to SEOM The dispute settlement mechanism shall apply Exporting and importing countries shall consult each other to resolve the issue DSM Contact points designated by the parties shall endeavor to resolve the matter DSM

28 EXPORTER: 1. files written request to BOC Export Division five (5) days prior to exportation and submit the following information: a. the exact nature, description or type of the goods/products for exportation; b. final country of destination, and the transport route as far as known;

29 c. the complete list of all materials, parts or components (both locally made or imported) used in the manufacture of the product, with their respective country of origin, if imported; d. Breakdown of the cost elements that make up the ex-factory cost, ex=factory price and FOB price of the finished product; e. the manufacturing operations to be performed locally on the product.

30 FORMS TO BE ACCOMPLISHED 1. Checklist 2. Cost Breakdown 3. Certification by the Exporter

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35 BOC-Export Division Trade Control Examiner -Check & Validate Declaration and Supporting Documents -conducts plant visits and examination of office books of account and records. - submit reports and recommendation. Assistant Chief - Reviews documents and indorse report to the Chief Chief -Issue Ruling

36 EXPORTER: 1) Presents CO declaration to the Export Division at the time of exportation or as soon as thereafter, with the ff. : a) Copy of Export Declaration w/ authority to Load b) Commercial Invoice c) Commodity Clearance/ Permit to Export d) Duplicate copy of B/L or AWB.

37 BOC-Export Division Trade Control Examiner 1) conducts evaluation & verification of documents 2) check if the product is included in the list covered by the Preferential Tariff 3) submit findings to the Chief-Export Division Chief 1) signs Certificate of Origin

38 BOC Clearance Procedure Yellow Lane FORM D/E/AK Check by Preferential Rate Unit (PRU), Formal Entry Division (FED) for: Formal Compliance Presentation Time Compliance ASEAN/ ACFTA/ AKFTA Content Compliance

39 BOC Clearance Procedure Form D/E/AK Check Formal Compliance ISO A4 (size) Original Light Violet/Beige/White Triplicate Light Orange/Light Green/White Reference Number Signatories

40 BOC Clearance Procedure Form D/E/AK Check Presentation Time Compliance Within 4 months (Form E), 6 months (Form D & AK), from issuance? Issued retroactively, within 1 year from shipment? Certified True Copy

41 BOC Clearance Procedure Form D/E/AK / JP Check ASEAN CEPT/ACFTA/AKFTA/JP Content Compliance Passed thru Non-ASEAN/ACFTA/AKFTA Country? Correct Tariff Line? 40% ASEAN/ACFTA/AKFTA Content/ or CTC or Product Specific Rule

42 BOC Clearance Procedure Form D/E/AK Check Box 12 Check Authorized Signatory Semblance with specimen, signature, seal, on file?

43 BOC Clearance Procedure Acceptance of Form D/E/AK If in order, accepts Certificate of Origin Apply Philippine CEPT/ACFTA/AKFTA rate For further processing under GREEN or RED lane until release If not hit by valuation screen, physical examination is subject to approval by District Collector unless under Alert/ Hold Order

44 Retroactive Check of Form D/E/AK Verification of FORM D/E/AK with issuing office abroad Reasonable Doubt Exists authenticity of the documents accuracy of the information regarding the origin of products or certain parts

45 Customs Authorities in the Importing country can conduct a verification in the Exporting Party. 1. If not satisfied with the verification conducted by the issuing authority in the exporting party under exceptional cases. a. Systematic Fraud b. Cost benefits - the revenue that can be recovered is greater than the cost of verification.

46 1. The PRU-FED officer- written request to the CEPT AFTA OVERSIGHT COMMITTEE, specifying the reason/s for the retroverification with original copy of CO attached. 2. Deputy Collector for Assessment endorsed the request for retro-verification to the OVERSIGHT COMMITTEE. 3. Oversight Committee makes the official verification with the issuing authority.

47 The shipment may be granted provisional release under the following term: Importer to post a guarantee in the form of either a manager /cashier check or a company postdated check Amount equivalent to the difference of the duties & taxes due based on MFN rates and the preferential rates.

48 SAMPLE CO FORM

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55 Form E

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