Compliance with Certificate of Origin requirements
Appropriateness of the Issuing Entity
Institutional Issuance
Whether it was issued by an exporter residing in a contracting state.
Whether the exporter is a person who is obligated to keep export-related document.
If the exporter and the producer are different, whether the certificate of origin was issued based on the notification of origin prepared by the producer.
Self – Issuance
Whether it was issued by an exporter residing in a contracting state
Validity Period
months
year
Appropriateness
of the Certificate of Origin Form
Whether it is prepared in accordance with the format prescribed by the agreement.
Whether the language used is the language prescribed by the agreement.
Whether the information is truthful.
Missing items.
Whether the counterparty
requirements are met
Principle: Direct transaction between the exporting party and the importing party.
Even if a non-party intermediary intervenes and issues a letter of delivery, it is also recognized under certain conditions.
Items subject to the agreed tax rate and the appropriateness of the tax rate
The Philippines implemented the 2017 version of the ASEAN Harmonized Tariff Nomenclature
(AHTN).
The Philippines’ simple average Most Favored Nation (MFN) applied tariff rate was 6.1%
in 2022. The Philippines’ simple average MFN applied tariff rate was 9.8% for
agricultural products and 5.5% for non-agricultural products in 2022. The Philippines
bound 67.6% of its tariff lines in the World Trade Organization (WTO), with a simple
average final bound tariff rate of 24.9%.
As a rule, imported manufactured goods competing with locally produced goods face higher
tariffs than those without local competition.
The Philippines cites domestic and global economic developments to justify modifying
applied duty rates for certain products to protect local producers.
The Philippines eliminated tariffs on approximately 99% of all goods from ASEAN trading partners under the ASEAN Free Trade Area (AFTA) agreementUnder the Regional Comprehensive Economic Partnership (RCEP) agreement, the Philippines retained zero tariff rates or existing MFN rates for 98.1% of all goods from China, Japan, South Korea, New Zealand, Australia, and ASEAN trading partners.
Appropriate To Apply Tax Rates by Priority
Most Favored Nation (MFN) Rates
- Default Application
- If no preferential treatment is claimed, the MFN tariff rates apply. These rates are standard tariffs agreed upon among World Trade Organization (WTO) members.
- Certificate of Origin Not Required
- The CO isn't typically needed if claiming MFN rates as they are the default for countries without specific trade agreements.
Most Favored Nation (MFN) Rates
- Preferential Rates
- These lower tariff rates apply when goods qualify under FTAs. Examples include ASEAN, ASEAN-China, and ASEAN-Korea FTAs.
- Certificate of Origin Required
- To benefit from these rates, a CO must be presented, showing that the goods originate from the FTA member country. Each FTA has specific rules of origin that must be met.
Most Favored Nation (MFN) Rates
- Preferential Rates for Developing Countries
- The GSP allows certain products from developing countries to enter duty-free or at reduced rates.
- Certificate of Origin Required
- A special form of CO (often Form A) is required to claim GSP benefits.
Most Favored Nation (MFN) Rates
- Special Tariff Concessions
- These may include specific bilateral agreements or trade incentives for certain goods.
- Certificate of Origin Required
- To avail of these concessions, proof of origin as specified by the arrangement is necessary.
Origin Determination Criteria for Each Agreement
Essentially, for different FTAs, different RoO systems and requirements exist in terms of the methods used to determine the origin of the good. RoOs criteria for ASEAN’s FTAs are given in the table below.
FTA Rules of Origin Summary
- Method of Issuance
- 40% Local/Regional Value-Add based on FOB price
- Retroactive Issuance
- Change in Tariff Heading (CTH) at 4-digit level or PSR
- Method of Issuance
- Regional value content of at least 40%
- Retroactive Issuance
- Product Specific Rules (PSR)
- Method of Issuance
- 35% Regional Value Content based on FOB price
- Retroactive Issuance
- Change in Tariff Sub-heading (CTSH)
- Method of Issuance
- 40% Regional Value-Add based on FOB price
- Retroactive Issuance
- Change in Tariff Heading (CTH) at 4-digit level or PSR
- Method of Issuance
- 40% Regional Value-Add based on FOB price
- Retroactive Issuance
- Change in Tariff Heading (CTH) at 4-digit level or PSR
- Method of Issuance
- 40% Regional Value-Add based on FOB price
- Retroactive Issuance
- Change in Tariff Heading (CTH) at 4-digit level or PSR
- Method of Issuance
- Regional value content of at least 40%
- Retroactive Issuance
- Product Specific Rules (PSR) or Change in Tariff Classification (CTC)
- Method of Issuance
- Goods must satisfy the Product Specific Rules (PSR)
- Retroactive Issuance
- Change in tariff classification or a specific manufacturing/processing operation
- Method of Issuance
- Product Specific Rules (PSRs)
- Retroactive Issuance
- Exporter can issue an origin declaration, no certificate required
- Whether or not third-country goods are imported into countries that are parties to the agreement
- Whether to re-export in its original state after importing to a party to the agreement (not recognized) Whether to obtain a certificate of origin during transshipment or simple port call in a party to the agreement (not recognized)
Whether transportation requirements are met
Preferential treatment provided when goods depart from the exporting Party and are transported directly to the importing Party without any intermediate transit.
- Transportation Regulations
- Annex 8 Rule 21 (Article 32 (2)(b) Direct Consignment)
- FTA
- ATIGA
Vietnam
Brunei
Singapore
Thailand
Myanmar
Malaysia
Indonesia
Cambodia
Laos
- Transportation Regulations
- Annex 3 Article 9 (Direct Transportation)
- FTA
- AKFTA
South Korea
- Transportation regulations
- Annex 3 Rule 8 ( Direct Consignment)
- FTA
- ACFTA
China
- Transportation regulations
- Chapter 3 ROO , Article 40 No. 3
- FTA
- PJEPA
Japan
- Transportation regulations
- Chapter 3 ROO, Rule 21 Article 14 (Direct Consignment)
- FTA
- AANZFTA
Australia
New Zealand
- Transportation regulations
- Annex 2 Rule 8 ( Direct Consignment)
- FTA
- AIFTA
India
- Transportation regulations
- Chapter 3 Rule 20 (Direct Consignment)
- FTA
- AHKFTA
Hong Kong
- Transportation Regulations
- Annex 2A Article 12 (Direct Transport)
- FTA
- PH-EFTA
Iceland
Liechtenstein
Norway
Switzerland
Compliance with data storage obligations
- Target
- Exporter/Producer/Importer
- Storage entity
- -Copy of Certificate of Origin
- -Copy of Approved Export Declaration
- -Copy of Bill of Lading/Airway Bill
- -Copy of Commercial Invoice
- -Copy of Packing List
- -Copy of Export Commodity Clearance for Regulated Products