rules of origin and operational certification …
TRANSCRIPT
RULES OF ORIGIN AND
OPERATIONAL CERTIFICATION
PROCEDURES OF
THE ASIA-PACIFIC TRADE
AGREEMENT
Duty Collection DepartmentGeneral Administration of Customs of P.R.China
October 2020, China
▪ Rules of origin and Operational Procedures For The
Certification And Verification Of The Origin Of Goods
▪ Role & administrative structure of China Customs
in implementation of APTA
▪ Issues & challenges to be addressed with the APTA
implementation
▪ Outlook for fifth round negotiation & Origin electronic
data exchange system
Main Content
▪ Products wholly produced or obtained in the exporting Participating
State (Rule 2: natural products and goods made from natural products
which are obtained entirely in one country);
▪ Substantial Transformation / Sufficient working or processing
(Products not wholly produced or obtained in the exporting
Participating State, provided that the said products are eligible under
Rule 3 or Rule 4 )
Rules of origin - Origin criteria
▪ Sectoral Rules of Origin of APTA( Product Specific Rules)
If the products cannot meet PSR, then the Rule 3(a) would be applied.
Substantial Transformation 1
▪ CTH (Change in Tariff Heading) means that the non-originating materials
have undergone a change in tariff classification of the Harmonized
Commodity Description and Coding System to a Heading from any other
Heading.
Substantial Transformation 1
▪ products worked on or processed as a result of which the total value of
the materials, parts or produce originating from non- Participating
States or of undetermined origin used does not exceed 55 per cent of the
f.o.b. value
▪ the final process of manufacture is performed within the territory of the
exporting Participating State
Substantial Transformation 2
(i) Operations to ensure the preservation of products in good condition either for
transportation or storage (ventilation, spreading out, drying, chilling,
placing in salt, sulphur dioxide or other aqueous solutions, removal of
damaged parts, and like operations);
(ii) Simple operations consisting of removal of dust, sifting or screening,
sorting, classifying, matching (including the making-up of sets of articles),
washing, painting, cutting up;
(iii) Changes of packaging and breaking up and assembly of consignments;
(iv) Simple slicing, cutting or repacking or placing in bottles, flasks, bags,
boxes, fixing on cards or boards, etc.
(v) The affixing of marks, labels or other like distinguishing signs on products
or their packaging;
(vi) Simple mixing;
(vii) Simple assembly of parts of products to constitute a complete product;
(viii) Slaughter of animals;
(ix) Peeling, unflaking, grain removing and removal of bones; and
(x) A combination of two or more operations specified above.
Insufficient Transformation
▪ Products which comply with origin requirements provided for in Rule 1
and which are used by a Participating State as input for a finished
product eligible for preferential treatment by another Participating
State shall be considered as a product originating in the territory of the
Participating State where working or processing of the finished product
has taken place provided that the aggregate content originating in the
territory of the Participating States is not less than 60 percent of its f.o.b.
value.
Cumulative rules of origin
▪ The Certificates of Origin shall be issued by an authority/ authorities
designated by the government of the exporting Participating State.
▪ Each Participating State shall communicate the names and addresses of
their respective Issuing Authorities and shall provide specimens of their
official seals for the endorsement of Certificates of Origin to the other
Participating States. Any change in the above information and
specimens shall be promptly communicated to the other Participating
States.
Issuing Authorities
▪ The Issuing Authorities shall scrutinize each application for a
Certificate of Origin to ensure that:
(a) the application and the Certificate of Origin have been duly completed
and signed by the exporter or authorized signatory or submitted
electronically;
(b) the origin of the goods is in conformity with the Rules of Origin under
the APTA;
(c) the other statements/entries on the Certificate of Origin correspond to
the supporting documentary evidence submitted; and
(d) the tariff item number, description, quantity and weight of goods,
marks and number of packages, number and kinds of packages, as
specified, correspond to the goods to be exported.
Application
▪ The Certificate of Origin shall be on an ISO A4 size paper in
conformity with the specimen text set out in Annex-II to APTA, which
shall be printed in English.
▪ The Certificate of Origin shall comprise one original and one copy or
duplicate to be retained by the Issuing Authority. The colour of the
Certificate of Origin shall be determined by each exporting
Participating State and notified to the other Participating States and
the Secretariat.
▪ Each Certificate of Origin shall bear a unique reference number
separately given by each place of office of issuance.
▪ The original shall be forwarded by the exporter to the importer for
submission to the Customs Authority at the port or place of
importation.
Certificate of Origin
▪ A Certificate of Origin shall be issued manually or electronically by the
Issuing Authorities of the exporting Participating State at the time of
exportation or within three working days from the date of shipment
whenever the products to be exported can be considered originating in
that Participating State within the meaning of the Rules of Origin
under the APTA. A Certificate of Origin shall be valid for one year
from the date of issuance.
▪ The Issuing Authority of the exporting Participating State shall
indicate, in Box 8 of the Certificate of Origin, the relevant rules and
applicable percentage of regional content.
Issuance of Certificate of Origin
▪ The Customs Authority of the importing Participating State may
request the Issuing Authority of the exporting Participating State for a
retroactive random check and/or when it has reasonable doubt as to
the authenticity of the documents or as to the accuracy of the origin
status of the goods in question.
▪ The Customs Authority of the importing Participating State may
suspend the preferential treatment while awaiting the result of the
verification. However, it may release the goods to the importer subject
to any administrative measures deemed necessary, provided that they
are not held to be subject to import prohibition or restriction and
there is no suspicion of fraud.
▪ The Issuing Authority receiving a request for verification shall respond
to the request promptly and reply within three (3) months after receipt
of the request. The verification process, including the actual process
and the determination of whether the subject goods are originating or
not, should be completed and the result should be communicated to the
Issuing Authority within six (6) months.
Origin Verification
▪ When it is suspected that fraudulent acts regarding the Certificate of
Origin have been committed, the authorities in the Participating States
concerned shall co-operate in taking action against the persons
involved, and undertake legal sanctions against fraudulent acts
according to their respective domestic legislations.
▪ In the case of any dispute concerning origin determination,
classification, goods or other matters, the competent authorities
concerned in the importing and exporting Participating States shall
consult each other with a view to resolving the dispute, and the result
shall be communicated to other Participating States.
Cooperation of the Participating States
Role of China Customs
Feasibility Study & Decision
Making Supporting
Negotiations on ROO and
Customs Procedure
Implementation of Tariff
Concession , Preferential
ROO & Custom Procedures
ADMINISTRATIVE STRUCTURE
ROO Office, Department of Duty Collection
General Administration of Customs
National Supervision
Bureau for Duty
Collection (Shanghai)
National Supervision
Bureau for Duty
Collection
(Beijing & Tianjin )
National
Supervision Bureau
for Duty Collection
(Guanghzou)
Assisting GACC in ROO
administration of APTA
Issues & challenges in implementation
▪ COs issued after “three working days from the
date of shipment”
▪ Wrong Tariff item number
Issues & challenges in implementation
▪ Reference Number over 30 digit
Issues & challenges in implementation
▪ To compare with specimens of official seals only,not signatures
Issues & challenges in implementation
▪ Defects in the provided information of Issuing
Authorities
Issues & challenges in implementation
▪ No reply within three (3) months after receipt of
the verification request
Issues & challenges in implementation
Outlook for fifth round negotiation
▪ Revision on ROO and PSR
▪ Improving and optimizing OCP
出口商Exporter 出口商Exporter签证机构Issuing
body
签证机构Issuing
Body
海关Customs海关Customs
Apply for CO
Information of CO
向海关申报
Declaration
进口商Importer
向海关申报
Declaration原产地证书和声明CO and OD
申领证书
原产地证书信息
Data Exchange
Origin electronic data exchange system
Origin electronic data exchange system
Electronic CO Data includes:❖ CO Number
❖ Issuing Body
❖ Issuing Data of CO
❖ Valid Data of CO
❖ Port of Loading
❖ Port of Discharge
❖ HS Code
❖ Description of Goods
❖ Origin Criteria
❖ Quantity
❖ Unit of Quantity, etc.
Advantages of Electronic Origin
Data Exchange
Improving
Clearance
Efficiency
Trade Facilitation
Paperless
Clearance
Preventing Origin
Fraud
OEDES connected Free Trade Agreements
with China Customs
❖ APTA (South Korea)
❖ ASEAN–China (Singapore, Indonesia)
❖ China-Pakistan FTA
❖ China-Chile FTA
❖ China-New Zealand FTA
❖ China- Singapore FTA
❖ China-South Korea FTA
❖ China-Georgia FTA
❖ Mainland and Hong Kong CEPA
❖ Mainland and Macao CEPA
❖ Economic Cooperation Framework Agreement
Thank You!