Description of Certificate of Origin for Duty Relief

What do you know about the certificate of origin that can reduce or exempt customs duties?

About certificate of origin

Certificate of origin: the legal document proving the origin of the goods, equivalent to the "passport" of the goods. All kinds of preferential certificate of origin (including GSP preferential certificate of origin and FTA preferential certificate of origin) are necessary documents for export products to enjoy preferential tariff treatment in the destination country.

Certificates of origin issued by China for export goods are mainly divided into three categories:

1.Non preferential certificate of origin

2. Preferential certificate of origin

3. Special certificate of origin

Among them, the entry-exit inspection and Quarantine Bureau can issue all kinds of certificates of origin (mainly various preferential certificates of origin); the CCPIT mainly issues non preferential general certificates of origin. If there is no special requirement from the foreign side, it can be issued by the entry exit inspection and Quarantine Bureau or CCPIT.

Here we mainly talk about preferential certificate of origin

Preferential certificate of origin includes the form a certificate granted to China by the vast majority of developed countries, as well as the bilateral or multilateral preferential trade agreements signed between China and some countries or regions.

How do you know how much money you can save for your guests?

The tariff reduction is different for different products of different countries. The specific inquiry method of the agreed tax rate is as follows:

Service network in China Free Trade Zone（ http://fta.mofcom.gov.cn/ ）Find the query box at the bottom of the home page, and input the specific information.

What do you know about the certificate of origin that can reduce or exempt customs duties?

01

FORM A

The certificate of origin issued according to the rules of origin of GSP granting countries and relevant requirements is form a certificate. Form a certificate is the certificate of origin in which the beneficiary country (mainly developing country) can enjoy preferential treatment of GSP tariff when the goods are exported to the beneficiary country (mainly developed country). The goods listed in the form a certificate are eligible for tariff reduction only if they meet the GSP rules of origin of the corresponding beneficiary country.

There are 39 countries that give GSP treatment to China:

UK, France, Germany, Italy, Netherlands, Luxembourg, Belgium, Ireland, Denmark, Greece, Spain, Portugal, Austria, Sweden, Finland, Poland, Hungary, Czech Republic, Slovakia, Slovenia, Estonia, Latvia, Lithuania, Cyprus, Malta, Bulgaria, Romania, Switzerland, Liechtenstein, Norway Wei, Russia, Belarus, Ukraine, Kazakhstan, Japan, Australia, New Zealand, Canada, Turkey.

02

FORM B 

Countries: India, Sri Lanka, Bangladesh, Laos and South Korea (members of the Asia Pacific Trade Agreement)

Asia Pacific Trade Agreement certificate of origin. The tax cuts range from 5% to 100%.

03

FORM E

Countries: China, Laos, Vietnam, Thailand, Myanmar, Cambodia, Philippines, Brunei, Indonesia, Malaysia and Singapore (ASEAN Member States)

Certificate of origin of CAFTA.

The country to be mentioned here is Indonesia. With the continuous progress of China ASEAN Free Trade Area construction, China's export to Indonesia has increased significantly. In order to protect its own products, Indonesia deliberately set up non-tariff barriers by means of "refund inquiry", especially for products that have a great impact on its own industry. In 2016, Indonesia's withdrawal accounted for 92.1% of the total.

Indonesia customs takes measures such as delaying preferential tariff treatment, withholding goods in advance, collecting deposit or taxing for the goods returned for inquiry, and then refunding or other treatment according to the investigation results. About half of the certificates queried by the Indonesian customs can return the deposit and enjoy the tariff preference, while the rest will be subject to customs duty as usual, and the deposit can not be returned, and some will even be fined several times the tariff. In order to avoid losses, some enterprises have to give up tariff preference in the free trade zone.

Therefore, when doing form e in Indonesia, we must pay attention to the following to ensure that the Indonesian customs "have no opportunity to take":

Description of goods: the product name shall be detailed and vague. The declaration shall be made in strict accordance with the packing list and invoice items provided to foreign customers for customs clearance, and the name of the manufacturer shall be entered in the Description column of the goods. For example, "machine", "garment", "goods" and "clothing" are general expressions.

Transportation route: according to the relevant provisions of Article 8 of the rules of origin of China ASEAN, if the goods stop at a third place other than China or ASEAN member countries, the certificate of non reprocessing shall be provided to prove that the goods have not been reprocessed or sold in transit. Due to the reasons such as the route and the shipping agency, some goods have stopped in Hong Kong for transshipment, and many export enterprises have not handled the certificate of non reprocessing in time As a result, the goods are overstocked in Indonesian ports, which leads to the return of certificate inquiry by Indonesian side. When booking space, the enterprise directly explains to the shipping company that it only orders ships directly to Indonesia without transshipment. According to the understanding of the shipping company, the cost of booking space is about 10% higher than that of transshipment, but this can ensure the implementation of the preferential tariff of the certificate of origin.

Origin standard: the origin of goods shall be declared truthfully. All products in a batch of goods must meet the origin standard. If a batch of goods contains similar goods or spare parts of different specifications, each product shall meet the origin standard.

Invoice information: invoice information should be accurate, especially check invoice number and date. Do not blindly follow the customer's requirements in the invoice amount and other columns, and do not blindly follow the customer's requirements to reduce the invoice amount. The intermediary trade involving the third country must be filled in truthfully, and the third party invoice shall be used for customs clearance. First, the third party invoice number and date shall be filled in as required, and the name and detailed address of the third party company outside the mainland of China shall be noted in the seventh column. In addition, the option of "third party Invoicing" shall be checked.

Shipping mark declaration: the information of the shipping mark shall be completely consistent with the shipping mark on the outer package of the actual goods. There shall be no words made in other regions or countries other than China, and no words of origin in Hong Kong, Macao or Taiwan. If there is no shipping mark, enter "n / M". If there is a special pattern on the shipping mark, A4 paper shall be used for printing and the number of the certificate, date of application and visa shall be marked on the corresponding position, and the enterprise seal shall be affixed as an attachment.

Retention of certificate of origin data: the original form e certificate shall be submitted to the customs of the importing country, and the third copy shall be filed and kept for at least 3 years. If there is any inquiry work of returning the certificate, it shall actively cooperate with the visa agency for investigation.

What do you know about the certificate of origin that can reduce or exempt customs duties?

04

FORM P

Country: Pakistan

Form P is the official certificate of origin issued according to the agreement between China and Pakistan on the early harvest plan of FTA and the rules of origin of China Pakistan Free Trade Area under the agreement.

Founded in 2006, China Pakistan free trade area is the third free trade agreement signed by China after China ASEAN Free Trade Area and China Chile Free Trade Agreement. According to the agreement, China and Pakistan implement tax reduction for all goods and products in two stages. In the first stage, within five years after the agreement comes into force, the two sides will implement tax reduction for 85% of their total tax items according to different tax reduction ranges, of which 36% will be reduced to zero within three years. China's tax reduction products mainly include livestock products, aquatic products, vegetables, mineral products, textiles, etc., while Pakistan's tax reduction products mainly include beef and mutton, chemical products, mechanical and electrical products, etc. In the second stage, starting from the sixth year of the entry into force of the agreement, the two sides will further implement tax reduction for their products on the basis of reviewing the previous situation, and make their zero tariff products account for 90% of the tax number and trade volume on the basis of taking care of their respective concerns.

It should be noted here that according to the announcement (No. 29, 2018) issued by the General Administration of Customs on April 16, 2018, since April 30, 2018 (inclusive, the same below), the "China Pakistan origin electronic information exchange system" has been officially put into operation, transmitting the original origin electronic data under the agreement in real time. The announcement mentioned:

“……

3. In order to avoid difficulties in the import clearance of export goods in Pakistan, the consignor of export goods or his agent (hereinafter referred to as the exporter) shall fill in the customs declaration form of the people's Republic of China for export goods or the record list of the people's Republic of China for export goods (hereinafter referred to as the export declaration form) in accordance with the relevant provisions of Announcement No. 51.

4. Due to special circumstances, the customs cannot receive the electronic data of the certificate of origin exported by the certification authority, which results in that the electronic information of the certificate of origin does not exist in the pre entry client of the declaration form when the enterprise is exporting, or the exporter fails to fill in the information of the place of origin of the goods according to the requirements of Announcement No. 51 when the goods are exported, the exporter shall timely obtain the information of the place of origin of the exported goods Apply to the Customs for amendment of the declaration form and supplement the origin information.

5. If the export declaration form needs to be modified due to the change of the certificate of origin information after the export of the goods, the exporter shall apply to the Customs for handling the modification formalities of the declaration form and supplement the origin information. "

What do you know about the certificate of origin that can reduce or exempt customs duties?

05

FORM F

Country: Chile

It is an official certificate of origin issued in accordance with the China Chile Free Trade Agreement and the rules of origin of the China Chile Free Trade Area under the agreement, which provides reciprocal tariff reduction and exemption for specific products between China and Chile.

China Chile FTA was signed in November 2005 and implemented in October 2006. It mainly covers trade in goods, economic and technical cooperation, etc. it is the first FTA signed between China and Latin American countries, and also one of the FTA with the highest level of trade liberalization in goods signed by China. On November 11, 2017, the protocol between the government of the people's Republic of China and the government of the Republic of Chile on Amending the free trade agreement and the supplementary agreement of the free trade agreement on trade in services, the outcome document of the China Chile FTA upgrade negotiation, was officially signed.

Under the existing China Chile Free Trade Agreement, over 97% of the products of both sides have achieved zero tariff, and the level of goods trade liberalization is very high. In the upgrading negotiations last year, the two sides continued to expand market opening on the basis of high-level liberalization of goods under the original FTA. The two sides promised to further implement zero tariff on 54 products, and the overall proportion of zero tariff products will reach about 98%. As a result, China Chile FTA will become the FTA with the highest level of goods opening up in China. Among them, within three years after the entry into force of the protocol, China has gradually eliminated 30 tariffs on wood products of Chile, involving the export of about 400000 US dollars per year by Chile to China; Chile has immediately cancelled tariffs on 24 products such as textiles, clothing, household appliances and sucrose, involving the export of about 4 million US dollars per year to Chile.

06

FORM N

Country: New Zealand It is an official certificate of origin issued in accordance with the China New Zealand Free Trade Agreement and the measures for the administration of the origin of import and export goods under the China New Zealand Free Trade Agreement for the reciprocal tariff reduction and exemption of specific products between China and New Zealand.

07

FORM X

Country: Singapore

It is an official certificate of origin issued in accordance with the China Singapore Free Trade Agreement and the measures for the administration of the origin of import and export goods under the China Singapore Free Trade Agreement for the reciprocal tariff reduction and exemption of specific products between China and Singapore.

08

FORM S

Country: Switzerland

It is an official certificate of origin issued in accordance with the requirements of the free trade agreement between China and the Swiss Federation and its relevant provisions for reciprocal tariff reduction and exemption of specific products between China and Switzerland. 09 China Peru FTA certificate of origin Country: Peru It is an official certificate of origin issued in accordance with the China Peru free trade agreement and the rules of origin of the China Peru free trade area under the China Peru free trade agreement to enjoy reciprocal tariff reduction and exemption for specific products between China and Peru.

09

China Peru FTA Certificate of Origin

Country: Peru

It is an official certificate of origin issued in accordance with the China Peru free trade agreement and the rules of origin of the China Peru free trade area under the China Peru free trade agreement to enjoy reciprocal tariff reduction and exemption for specific products between China and Peru.

10

FORM L

Country: Costa Rica

It is an official certificate of origin issued in accordance with the China Costa Rica free trade agreement and the rules of origin of the China Costa Rica free trade area under the agreement. It is an official certificate of origin issued between China and Costa Rica to enjoy reciprocal tariff reduction and exemption for specific products.

11

FORM K

Country: South Korea

Form K certificate is an official certificate of origin issued in accordance with the China Korea Free Trade Agreement and the rules of origin and the implementation procedures of origin under the China Korea free trade agreement. It is an official certificate of origin issued between China and South Korea to enjoy reciprocal tariff reduction and exemption for specific products. South Korea can issue from K certificate of China South Korea free trade area or form B certificate of Asia Pacific Trade Agreement.

12

China Australia FTA Certificate of Origin

Country: Australia

The China Australia free trade agreement came into force on December 20, 2015. According to preliminary calculation, after the signing and implementation of the China Australia Free Trade Agreement, China's products exported to Australia will receive tariff relief of about 1.66 billion US dollars in total. Within three years after the entry into force of the agreement, China Australia Free Trade Agreement will achieve tariff relief of about 1.6 billion US dollars, or 96.45%, of which about 1.02 billion US dollars, or 61.45%, on the effective date of the agreement Can be achieved.

For China's export enterprises, the proportion of tax items and trade volume that Australia ultimately achieves zero tariff will reach 100%, and the transition period of tax reduction will not exceed 5 years. The products that China enjoys higher tariff relief mainly include clothing and leather, electronics and machinery, other manufactured products, steel and metal products, and chemical products.

Australia continues to implement the GSP scheme for China, and the GSP certificate of origin is still applicable. Export enterprises can compare the extent of tariff reduction for export goods, and choose to apply for the certificate of origin of China and Australia or the GSP certificate of origin.

13

China Georgia FTA Certificate of Origin

Country: Georgia

The free trade agreement between the government of the people's Republic of China and the government of Georgia came into force on January 1, 2018 and has been put into effect. This is the first free trade agreement signed between China and the countries in the Eurasian region. With the China Georgia free trade agreement preferential certificate of origin issued by the inspection and quarantine department, the enterprise will enjoy the great preferential policy of reducing the export tariff of 9891 Chinese products to zero.

After the agreement came into force, in terms of goods trade, Georgia immediately implemented zero tariff on 96.5% of China's products, covering 99.6% of Georgia's total imports from China; China implemented zero tariff on 93.9% of Georgia's products, covering 93.8% of China's total imports from Georgia, of which 90.9% of products (42.7% of imports) immediately implemented zero tariff, and the remaining 3% of products (51.1% of imports) gradually reduced to zero within 5 years Tariffs. China's exports of electronic products, machinery and equipment, textile and clothing products, meat products, vegetables and fruits to Georgia will have great growth potential.