FTA PORTAL - Benefits and Precautions

Benefits and Precautions of FTA to Approved Exporters

PH-EFTA
RCEP
EU REX
AWSC

PH-EFTA

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PH secured tariff concessions on substantially all PH agriculture exports to EFTA (e.g., frozen tuna/mackerel, canned pineapple, crude coconut oil, fresh/dried bananas).

Under the FTA, PH may qualify for zero tariffs for preparations of meat/fish, even if the meat or fish is imported.

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PH gained significant concessions on the country’s agricultural exports, particularly those that are currently being exported to the EFTA Member States, or those with high potential export interest, including those that are being sold to its neighboring European countries, which can be alternately exported to the EFTA States.

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It contributes directly to the Philippines’ commitment to the European Union Generalized System of Preferences (EU GSP+), aiming to bolster the number of exporters engaged with EFTA States. By expanding the list of Approved Exporters, the Philippines strengthens its trade ties and opens new avenues for economic growth.

RCEP

01

Expanded market access and trade flows

One of the key benefits of the RCEP for the Philippines is the expanded market access it provides. By reducing trade barriers and eliminating tariffs on a wide array of goods and services, the agreement opens new avenues for Philippine businesses to tap into a larger consumer base within the RCEP member countries. This increased access can drive export growth, enhance market diversification, and contribute to the country’s economic expansion.

RCEP Agreement flowchart — 02

Strengthened regional supply chains

As the agreement aims to promote closer economic integration among its member nations, fostering the development of regional supply chains,

for the Philippines, this presents an opportunity to deepen its participation in global value chains (particularly in sectors where it holds a competitive advantage).

By integrating with the supply chains of RCEP countries, the Philippines can enhance its manufacturing capabilities, attract foreign direct investment (FDI), and leverage its skilled workforce.

03

Enhanced investment opportunities

The RCEP facilitates investment flows and provides a more predictable and transparent investment environment. This can attract foreign investors to the Philippines, as the agreement offers a framework of rules and regulations that protect their investments. The increased inflow of foreign direct investment can stimulate economic growth, promote technology transfer, and spur innovation in key sectors of the Philippine economy.

RCEP: The RCEP's implementation in the Philippines symbolizes a transformative moment, where the nation stands poised to harness its strengths and seize the opportunities this landmark agreement offers. By leveraging its strategic geographical location and vibrant economy, the Philippines can position itself as a competitive player in the global market, contributing to regional prosperity and building a brighter future for its people.

Registered Exporter System (REX)

Simplifying Export Procedures: The Registered Exporter System (REX) streamlines the issuance of Origin Declarations and simplifying export procedures. This system empowers exporters to self-certify the origin of their products, thereby enhancing efficiency and promoting international trade relations.

Saves both time and money: REX Certification simplifies the export process and saves both time and money. Because exporters can self-certify their goods rather than getting it done through a certificate of origin.

03 **The REX Certificate promotes preferential trade agreements with developing nations.**

ASEAN WIDE Self-Certification Scheme (AWSC)

'self-certification' system flowchart — Self-certification enables CEs to make a declaration of the origin of exported goods on certain commercial documents at anytime

ATIGA’s commitments flowchart — In terms of utilization of ATIGA's commitments, the AWSC encourages traders who are reluctant to apply for the paper-based COs for the products which have low MFN tariff rates, which may result in low margins as the benefits brought by the tariff preferences fail to cover the administrative costs of application.

Certified Exporters no longer need to prepare and submit supporting documents to apply for CO on their registered goods. Furthermore, they do not have to visit the issuing authorities’ offices to submit, follow up and receive their paper-based Form D, which may discourage those who are located far away from issuing authority offices.

Besides a sharp decrease in the application cost, the AWSC reduces time for processing shipments, which may be associated with storage, demurrage and detention fees. Altogether, CEs are encouraged to trade more efficiently, gain more profit, and generate more jobs. The AWSC also reduces administrative burden on issuing authorities since exporters who have been accorded with CE status can self-certify their goods.

PH-EFTA
RCEP
EU REX
AWSC

PH-EFTA

Approved Exporter

The customs authority of the exporting Party may, subject to domestic requirements, authorize an exporter of that Party.

Hereinafter referred to as “Approved Exporter” to complete origin declarations without signature.

Application for Authorization

An exporter who applies for such authorization must offer, to the satisfaction of the customs authority of the exporting Party.

All guarantees necessary to verify the originating status of the goods as well as the fulfillment of any other requirement under this Annex.

Authorization Number

The customs authority of the exporting Party shall provide, to the Approved Exporter.

An authorization number to be included in the origin declaration instead of the signature.

Verification and Withdrawal

The customs authority of the exporting Party may verify the proper use of an authorization and withdraw it at any time, if the exporter no longer meets the conditions or otherwise makes improper use of it.

The withdrawal of an authorization shall be made available to the customs authorities of the other parties.

Article 14 : Approved Exporter

RCEP

Authorization of Approved Exporter

Each Party shall provide for the authorization of an exporter who exports goods under this Agreement as an approved exporter, in accordance with its laws and regulations.

Application Process

An exporter seeking such authorization must apply in writing or electronically and must provide all guarantees necessary to verify the originating status of the goods to the satisfaction of the competent authority of the exporting Party.

Conditions

That the exporter is duly registered in accordance with the laws and regulations of the exporting Party

That the exporter knows and understands the rules of origin as set out in this Chapter;

That the exporter has a satisfactory level of experience in export in accordance with the laws and regulations of the exporting Party

That the exporter has a record of good compliance, measured by risk management of the competent authority of the exporting Party;

That the exporter, in the case of a trader, is able to obtain a declaration by the producer confirming the originating status of the good for which the Declaration of Origin is completed by an approved exporter and the readiness of the producer to cooperate in verification in accordance with Article 3.24 (Verification) and meet all requirements of this Chapter; and

That the exporter has a well-maintained bookkeeping and record-keeping system, in accordance with the laws and regulations of the exporting Party.

Article 3.21: Approved Exporter

Registered Exporter System (REX)

REX European Commission — REX is a system established by the European Union (EU) which allows a Registered Exporter to self-certify the preferential origin by accomplishing a “Statement of Origin” under Generalized System of Preference (GSP) on the invoice or other commercial document identifying the exported products.

Export, Certificate of Origin — The registered exporter does not need to apply upon each export for the issuance of a Certificate of Origin.

The AOCG, through the ECD

One of the key benefits of the RCEP for the Philippines is the expanded market access it provides. By reducing trade barriers and eliminating tariffs on a wide array of goods and services, the agreement opens new avenues for Philippine businesses to tap into a larger consumer base within the RCEP member countries. This increased access can drive export growth, enhance market diversification, and contribute to the country’s economic expansion.

Shall carry-out proper examination of the application for Certified Exporter status as provided under Section 5.1 of the CMO. They shall also have the right to request for additional supporting documentary evidence, as necessary.

ECD, Export Divisions (ED) flowchart — The ECD, through the Export Divisions (ED) or its equivalent, shall monitor the proper use of the authorization, including verification of the correctness or authenticity of Origin Declarations made out by Philippine Certified Exporters.

Rule 18 ( Retroactive Check) of Annex 8 ( Operational Certification Procedures) of ATIGA.

Furthermore, the ECD or its equivalent unit, shall act on retrospective verification requests by the Customs Authorities of the Importing AMS on Origin Declarations made out by Philippine Certified Exporters in conformity with Rule 18 (Retroactive Check) of Annex 8 (Operational Certification Procedures) of ATIGA.

Preferential Rules of Origin Unit(PRU), ATIGA preferential tariff rates accordingly flowchart — The PRU shall evaluate the authenticity and validity of the Origin Declaration submitted by importers and grant ATIGA preferential tariff rates accordingly.

AWSC

Authorization of Certified Exporters

The Competent Authority of the exporting Member State may authorize an exporter who makes shipments of products under the Agreement, hereinafter referred to as ‘Certified Exporter’, to make Origin Declarations with regard to the originating status of the goods concerned.

Application Process and Requirements

An exporter seeking such authorization must apply in writing or electronically and must offer to the satisfaction of the Competent Authority all guarantees necessary to verify the originating status of the goods for which an Origin Declaration was made out.
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