To be considered originating under the CTC rule, non-originating materials used in the manufacture of the good must not have the same HS classification as the finished product. Producers and exporters need to know the HS classification of the final product and non-originating raw materials in order to apply this method. The CGR requires that a certain percentage of the value of the goods come from an FTA member country for the goods to be considered originating. Under ASEAN free trade agreements, this percentage is usually 40% of freedom on board (FOB). FOB is the price actually paid or payable to the exporter for a good when the goods are loaded onto the carrier at that port of export, including the cost of the goods and all costs necessary to bring the goods to the carrier. In any case, exporters who are members of an FHA member country must receive a corresponding Certificate of Origin (CO) for each shipment, regardless of the substantive criteria used to meet the origin requirements; Verification of the origin of the product in order to take advantage of the tariff concessions available under the FTA and to obtain better market access. For goods that are partially produced in an FTA member country, substantial transformation ensures that a significant manufacturing process has taken place in the free trade area so that the goods are considered originating. The criteria for determining the country of origin of these goods are based on three methods, as explained below. This generally applies to chemicals. Goods are considered originating products only if they are produced by a specific chemical process that took place in an FTA country. The criteria for the origin of a good can be one or the other of these methods. In addition, two or three equivalent alternative criteria of origin may apply to certain products; This allows the exporter or manufacturer to select the origin criteria that are best suited to the production of their product.

It is important to note that the origin of these goods depends on the country where the last substantial transformation is carried out. Importers of products in an FTA country must also ensure that their suppliers understand the FTA protocol and attach relevant documentation to their shipments. The preferential CO is issued by the exporting FTA partner country to the exporter or manufacturer and proves to the importing FHA partner country that the imported product complies with the applicable rules of origin. Note: Acfta Form E is a Certificate of Preferential Origin accepted by preferential countries (ACFTA member countries) as proof of origin in order to benefit from preferential treatment. The free trade agreement lowered tariffs to zero on 7,881 product categories, or 90% of imported goods. [15] This reduction entered into force in China and the top six ASEAN members, Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand. The other four countries are expected to follow suit in 2015. [16] Rules of origin are guidelines that help importers and manufacturers determine the country of origin of a product. RoOs stipulate that the product is eligible for preferential tariff treatment under free trade agreements. In other words, products considered to originate in a free trade agreement may be allowed to pay lower or zero import duties when imported into another FTA country.

To be considered originating, imported goods must either: Essentially, different free trade agreements have different RoO systems and requirements regarding the methods used to determine the origin of the goods. The roOs criteria for ASEAN free trade agreements are set out in the table below. Rules of origin are a set of criteria that determine the originating status of a product in the respective FTA. It aims to ensure that only products from FTA partner countries benefit from tariff concessions. After approval of the MCS, the manufacturer must request a preferred CO for each shipment. The preferential CO is usually valid for one year. The manufacturer must then sign the CO and send the original copy to the importer so that the importer can apply for tariff concessions. The CO can be obtained from the respective authority in any FTA country.

Exporters or manufacturers wishing to obtain the Certificate of Origin must first apply for registration using the form provided (see table below). Upon registration, the customs authority inspects the applicant`s factory to verify the production process and confirm manufacturing operations, machinery and labour, as well as updated production records. The DCFTA, which was implemented on 1 January 2010, provided the necessary platform to deepen economic engagement. Economic relations have intensified following the signing of the Framework Agreement and later the ASEAN-China Free Trade Agreement in 2004, which provided a solid basis for increasing trade and investment flows between ASEAN and China. The process, from registration to receipt from PCO, usually takes less than a month. More information can be found here. The 1. In January 2010, the average tariff rate on Chinese products sold in ASEAN countries rose from 12.8% to 0.6% until other ASEAN members implemented the free trade area. Meanwhile, the average tariff rate on ASEAN products sold in China rose from 9.8% to 0.1%.

[13] In 2015, ASEAN`s total trade in goods with China reached $346.5 billion (15.2% of ASEAN trade), and ACFTA accelerated the growth of China`s direct investment and trade cooperation. [6] The ASEAN-China Free Trade Area (ACFTA) is a free trade area between the ten member states of the Association of Southeast Asian Nations (ASEAN) and the People`s Republic of China. After the initial 6 signatories reached their target by 2010, the CLMV countries (Cambodia, Lao People`s Democratic Republic, Myanmar, Vietnam) pursued the same customs policy with the same objective of achieving it by 2015. [6] In 2010, the ASEAN-China Free Trade Area became the largest free trade area in terms of population and the third largest in terms of nominal GDP. It was also the third largest volume of trade after the European Economic Area and the North American Free Trade Area. [12] [7] The Framework Agreement contains, inter alia, provisions for the establishment of an ACFTA within 10 years: trade in goods, early harvest programmes, trade in services, investment, dispute settlement mechanism and economic cooperation. Singapore Customs is the approved body in Singapore for the application for an FTA Certificate of Preferential Origin (BCP). Here are the three general documentation processes when using FTA. .

Agreement on Trade in Goods of the Framework Agreement for Comprehensive Economic Cooperation between China and ASEAN (English + Chinese version) Protocol amending the Framework Agreement on Comprehensive Economic Cooperation and certain agreements in this context between the People`s Republic of China and the Association of Southeast Asian Nations (ASEAN) (English version + Chinese version) Annex 1: Rules of origin (English version) Revised Annex A Certification procedures Operational (OCP) for China-ASEAN Free Trade Area Rules of Origin (English version) Annex B Product-specific rules (English version) The changes to the framework of the free trade area mainly concerned Vietnam. These changes were intended to help Vietnam reduce tariffs and set dates as guidelines. [14] Next Article Philippine Employment Contracts: What You Need to Know » In line with the current regional and global economic landscape, the Protocol Amending the FRAMEWORK Agreement on Comprehensive Economic Cooperation between ASEAN and China was signed at the 27th ASEAN Summit on November 22, 2015. The modernization of the ACFTA aims to streamline and further improve economic cooperation, including amendments to the Agreement on Trade in Goods, Services, Investment and Economic and Technical Cooperation (ECOTECH). .