Getting A Certificate of Origin
for your Product
Doing Business in Japan Free Trade Area
Philippine Trade Training
Center November 7, 2012
Ma. Rosario V. Acosta
Customs Operations Officer
Bureau of Customs
BENEFITS FROM JAPAN FREE TRADE
AGREEMENT
H.S. CODE
DESCRIPTION
MFN
JPEPA RATE
306.17
3923.90
4418.90
6109.10
7007.19
9405.92
Frozen Shrimps
Carrier Tapes
Wooden Flooring Panels
Cotton Underwear
Tempered Glass
Illuminated Sign Parts
4.00%
5.80%
3.90%
14.00%
5.30%
5.80%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
SUBJECT OUTLINE
1. What is a Certificate of Origin?
2. Rules of Origin
3. How to Get a Certificate of Origin
4. Minimum Data Requirements
5. Operational Procedures
6. 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 ORIGIN
Are regulations to determine the Country of
Origin “nationality of the goods”
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)
Means of determining HOW & WHEN a product
can be considered as ORIGINATING from a
specific country
RULES OF ORIGIN
H.S. CODE
DESCRIPTION
PRODUCT SPECIFIC RULE
306.17
Frozen Shrimps
Wholly Obtained
3923.90
Carrier Tapes
CTC or QVC 40%
4418.90
Wooden Flooring Panels
6109.10
Cotton Underwear
7007.19
Tempered Glass
CTC or QVC 40%
9405.92
Illuminated Sign Parts
CTC or QVC 40%
CTC
CTC and imported textile from both
Party or ASEAN Member
“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.
Raw Materials for Glass Manufactured by Asahi
Silica Sand
Soda Ash
Dolomite
Feldspar
Sodium Sulfate (Salt Cake)
Calumite (Azaite Slags)
Cobalt Oxide
Sodium Selenite
Sodium Nitrate
Cullet
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.
Exported to Japan
Silica Sand
H.S.2505.10
Tempered Glass
H.S. 7007.19
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
FOB
 The formula may measure local content based on the FOB value, the exfactory 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
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%”.
Raw Materials
Silica Sand
Soda Ash
Sodium Sulfate
Total
F.O.B. Price
Country of
Origin
Australia
Oregon
China
Originating
Status
Non - originating
Non - originating
Non - originating
－
－
F.O.B. － V.N.M.
Q.V.C ＝
× 100
F.O.B.
12.79 － 6.10
Q.V.C ＝
× 100 = 52.30%
12.79
Value US$
2.10
2.30
1.70
6.10
12.79
Specific Manufacturing Or Processing
Operation Rule (Process Rule)
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.
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.
Canada
Thailand
Knitted
Wool
51.0
1
Yarn
51.06
Sweater
Chapter 61
Minimum Data Requirement for CO under Annex 3
1. Exporter’s name, address and country
2. Importer’s name, address and country
3. Certification Number
4. Origin of good (s)
5. Invoice number and date
6. Transport details (if known)
7. HS tariff classification number
8. Marks, numbers, number and kind of packages;
Description of good (s)
9. Quantity (Unit)
10.Origin criterion
11.Remarks (e.g. application of de minimis, accumulation
12.Declaration by the exporter
13.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 paper
2) H.S. Code
3) Issued by the competent authority
4) CO must bear a reference number
5) CO issued one day after the date of shipment
6) CO can be issued within 12 months and indicate
“ISSUED RETROACTIVELY” in Box 9
7) 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 date
3) 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 Invoice
c) Commodity Clearance / Permit to Export
d) Duplicate copy of B/L or AWB.
PRIMER ON RULES OF ORIGIN
FOR PJEPA
IN THE PREPARATION FOR STAKEHOLDER
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.