RULES OF ORIGIN AND OPERATIONAL CERTIFICATION …

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.


▪ 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


(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


▪ Reference Number over 30 digit


▪ To compare with specimens of official seals only，not signatures


▪ Defects in the provided information of Issuing

Authorities


▪ No reply within three (3) months after receipt of

the verification request


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!

RULES OF ORIGIN AND OPERATIONAL CERTIFICATION …

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