Getting A Certificate of Origin for your Product

Bureau of Customs

Ma. Rosario V. AcostaCustoms Operations Officer

Doing Business in Japan Free Trade Area

Philippine Trade Training Center November 7, 2012

306.17 Frozen Shrimps 4.00% 0.00%3923.90 Carrier Tapes 5.80% 0.00%4418.90 Wooden Flooring Panels 3.90% 0.00%6109.10 Cotton Underwear 14.00% 0.00%7007.19 Tempered Glass 5.30% 0.00%9405.92 Illuminated Sign Parts 5.80% 0.00%

H.S. CODE DESCRIPTION MFN JPEPA RATE

BENEFITS FROM JAPAN FREE TRADE AGREEMENT

SUBJECT OUTLINE

1. What is a Certificate of Origin?2. Rules of Origin3. How to Get a Certificate of Origin4. Minimum Data Requirements5. Operational Procedures6. Primer on Rules of Origin for PJEPA: In

the Preparation for Stakeholder

CERTIFICATE OF ORIGIN

(CO) declaration of exporter certified by a Competent Authority (Bureau

of Customs, Ministry of Trade or Department of Commerce or Chamber of Commerce)

states that the export products comply with the ORIGIN REQUIREMENTS

specified under bilateral, regional & multi-lateral Trading Arrangement

PURPOSES OF CO

Proves that the product exported is manufactured & produced in a specified country.

Serves as a basis of granting preferential tariff treatment by the importing country

RULES OF RULES OF ORIGINORIGIN

Determine whether imported products shall be subjected to a most-favoured nation (MFN) treatment or preferential treatment (e.g.,ATIGA, ACFTA, AKFTA, AIFTA, AANZFTA, PJEPA, AJCEP))

Are regulations to determine the Country of Origin “nationality of the goods”

Means of determining HOW & WHEN a product can be considered as ORIGINATING from a specific country

306.17 Frozen Shrimps Wholly Obtained

3923.90 Carrier Tapes CTC or QVC 40%

4418.90 Wooden Flooring Panels CTC

6109.10 Cotton UnderwearCTC and imported textile from both

Party or ASEAN Member

7007.19 Tempered Glass CTC or QVC 40%

9405.92 Illuminated Sign Parts CTC or QVC 40%

H.S. CODE DESCRIPTION PRODUCT SPECIFIC RULE

RULES OF ORIGIN

“ORIGINATING” GOODS

Wholly-obtained and produced goods

Goods made entirely in the exporting FTA Party (e.g. the Philippines) from materials produced in that same country (e.g. goods grown, born and raised, gathered, or extracted in the Philippines)

Example: The Philippines’ agricultural exports including seafood harvested within the country, and mineral goods

Goods underwent substantial transformation process

Products manufactured from exporting country wholly or partly from imported materials or components, including materials of undetermined or of unknown origin, are considered as ORIGINATING in that country if its materials, parts or components have undergone SUBSTANTIAL WORKING OR PROCESSING there.

Silica SandSilica Sand

DolomiteDolomiteFeldsparFeldsparSodium Sulfate (Salt Cake)Sodium Sulfate (Salt Cake)

Sodium SeleniteSodium Selenite

CulletCullet

Soda AshSoda Ash

Raw Materials for Glass Manufactured by Raw Materials for Glass Manufactured by Asahi Asahi

Cobalt OxideCobalt Oxide

Sodium NitrateSodium Nitrate

Calumite (Azaite Slags)Calumite (Azaite Slags)

Change in – tariff classification Rule (CTC Rule)The HS code of Tempered Glass is H.S. 7007.19 and its origin rule is “A change to heading 70.02 through 70.17 from any other heading; or No required change in tariff classification to heading 70.02 through 70.17, provided that there is a qualifying value content of not less than 40%”. The rule requires that the 6-digit code of the Tempered Glass be different from those of the materials used in its production in the Phil.

Tempered GlassH.S. 7007.19

Exported to JapanSilica Sand H.S.2505.10

Soda Ash H.S. 2836.20

Sodium Sulfate H.S. 2833.11

VALUE ADDED RULE (VA rule)

ROO based on value-added (i.e., value-added rule) measure the extent of manufacturing or processing undertaken in a country by reference to the value added to the good.

There are two requirements:

• the final processing must be performed in a country; and• the value added in the country, calculated using a given formula, must satisfy the required threshold.

FOB-VNM x 100%= QVC%

FOB

The formula may measure local content based on the FOB value, the ex-factory price or the ex-factory cost. Certain cost adjustments may be required.

Packaging materials and containers for retail sale, if classified with the good, are included in the calculation of value-added while packing materials and shipping containers are excluded

Raw Materials Country of Origin

OriginatingStatus

Value US$

Silica Sand Australia Non - originating 2.10Soda Ash Oregon Non - originating 2.30

Sodium Sulfate China Non - originating 1.70Total 6.10

F.O.B. Price － － 12.79

　　　　 F.O.B. －　 V.N.M. 　Q.V.C ＝　 　　　 　　 × 100　　　　　　　　 F.O.B.

The HS code of Tempered Glass is H.S. 7007.19 and its origin rule is “A change to heading 70.02 through 70.17 from any other heading; or No required change in tariff classification to heading 70.02 through 70.17, provided that there is a qualifying value content of not less than 40%”.

　　　　 12.79 －　 6.10 　Q.V.C ＝　 　　　 　　 × 100 = 52.30% 　　　　　　　　 12.79

ROO based on process ascertain the critical process or element in the manufacture of a good.

The country where such a critical process is done or where a critical element is obtained would be the country of origin of the good.

Specific Manufacturing Or Processing Operation Rule (Process Rule)

Canada Thailand

Wool51.01

Yarn51.06

Knitted

Sewed

SweaterChapter 61

PSR Rule: A change to heading 61.01 , through 61.17 from any other chapter provided that where non-originating materials of heading 50.07,51.11 through 51.13, 52.08 through 52.12, 53.09 through 53.11, 54.07 through 54.08,55.12 through 55.16 or chapter 60 are used, each of the non-originating materials is knitted or crocheted in either Party or a non-Party which is a member country of the ASEAN.

Minimum Data Requirement for CO under Annex 3

1. Exporter’s name, address and country2. Importer’s name, address and country3. Certification Number4. Origin of good (s)5. Invoice number and date6. Transport details (if known)7. HS tariff classification number8. Marks, numbers, number and kind of packages;

Description of good (s)9. Quantity (Unit)10.Origin criterion11.Remarks (e.g. application of de minimis, accumulation12.Declaration by the exporter13.Certification

Minimum Data Requirement for CO under Annex 3

14 (a) With respect to good (s) of chapter 16 (i.e. sardines), materials taken by the aauthorized fishing vessels on the IOTC Record (Indian Ocean Tuna Conference), names, registered numbers and nationalities of such vessel.

(b) With respect to good (s) of chapter 18 or 20 ( i.e. cocoa, fruit jams), if imported materials are used, indicate the name of the ASEAN Member company

(c ) With respect to good (s) of chapter 50 or 63 ( i.e. textiles, garments and blankets), if imported materials are used, indicate the name of the ASEAN Member company, processes oroperations conducted

OPERATIONAL PROCEDURES

A.Issuance of a Certificate of Origin

1) Form JP should be on ISO A-4 size paper2) H.S. Code3) Issued by the competent authority4) CO must bear a reference number5) CO issued one day after the date of shipment6) CO can be issued within 12 months and indicate

“ISSUED RETROACTIVELY” in Box 97) Multiple items declared in the CO allowed,

provided each item are qualified as originating good

8) Signature of the competent authority

B. Application

1)Notice to Exporter (CMO # 27-2004)2)Presentation of documents for the evaluation, 5 days before the shipment date3)Plant visit as needed

C. Modification

In the event of loss, new certificate of origin can be issued

D. Minor Error

Typing errors, discrepancies or omissions

E. Single Shipment

Two or more invoices for one shipment can be accepted

F. Invoice of a Non Party

Third Party Invoicing is allowed and to be indicated in Box 9

G. Others

If some goods not subject to preferential are included in the CO, the said CO is still valid.

PROCEDURES: POST EXPORTATION

EXPORTER: Presents CO declaration to the Export

Division at the time of exportation or as soon as thereafter, with the ff. :

a) Copy of Export Declaration w/ Authority to Load

b) Commercial Invoicec) Commodity Clearance / Permit to Exportd) Duplicate copy of B/L or AWB.

Notice to readers

This primer is just a reference for your understanding. If you deal with actual trade under PJEPA, you should read main body, Annexes, or Operational Procedures of the Agreement or other related domestic laws and regulations at first.

In the event of any inconsistency between this primer and PJEPA (like modification or elimination of the contents or definitions of PJEPA), contents or definitions of the Agreement should prevail to the extent of the inconsistency.

PRIMER ON RULES OF ORIGIN FOR PJEPA

IN THE PREPARATION FOR STAKEHOLDER