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Philippine Standard Time:
21 April 2024, 10:38 AM

What is a Free Trade Agreement?

A free trade agreement is an agreement between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.

Kinds of Free Trade Agreement

  1. Unilateral – is a commerce treaty that a nation imposes without regard to others. It benefits that one country only. It is unilateral because other nations have no choice in the matter. It is not open to negotiation.
    Example: Generalized System of Preference (Form A)
  2. Bilateral – an exchange agreement between two nations or trading groups that gives each party favored trade status pertaining to certain goods obtained from the signatories. The agreement sets purchase guarantees, removes tariffs and other trade barriers.
    Example: Philippine-Japan Economic Partnership Agreement (Form JP)Free Trade Agreement Between EFTA States and the Philippines (PH- EFTA)
  3. Multilateral – are commerce treaties between three or more nations. The agreements reduce tariffs and make it easier for businesses to import and export. Since they are among many countries, they are difficult to negotiate.
    Example: ATIGA, ACFTA, AKFTA, AJCEP, AIFTA, AANZFTA, AHKFTA 

Below is the list of CO Forms that may be granted preferential tariff treatment by other member countries:

Certificate of Origin FORMS Members and Beneficiary
1. Form A Australia, Canada, Japan, New Zealand, United Kingdom

 

NOTE: For European Union, Certificate of Origin Form A is no longer being accepted. Hence, the exporter must apply as a REX Exporter  under  the  Registered

Exporter System (REX). (CMO-50- 2019)

2. Form JP PHILIPPINES AND JAPAN
3. Origin Declaration (PH-EFTA) Philippines, Iceland, Liechtenstein, Norway and Switzerland
4. Form D, E-Certificate of Origin or Origin Declaration Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam (10 ASEAN Member States)
5. Form AANZ Australia, New Zealand, Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam
6. Form E China, Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam
7. Form AI India, Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia,  Myanmar,  Philippines,

Singapore, Thailand, Vietnam

8. Form AHK Hongkong, Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam
9. Form AJ Japan, Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam
10. Form AK Korea, Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam

How to Avail Certificate of Origin?

For export products where the origin cannot be easily ascertained by its nature, the exporter must submit an application for pre-evaluation of every goods for export.

Where to File

Pre-evaluation of exporters and their products for the issuance of Certificate of Origin shall be filed at the following offices:

  1. Export Coordination Division (ECD), Assessment and Operations Coordination Group (AOCG), for exports where the port of loading is Port

of Manila (POM), Manila International Container Port (MICP), or the Ninoy Aquino International Airport (NAIA); or

  1. Export Division or equivalent unit where the port of loading is outside Metro Manila.

When to File

The exporter or his/her duly authorized representative must submit his/her application for pre-evaluation of export product at least twenty (20) working days prior to the intended exportation of the products.

Procedures and Documentary Requirements

Exporters intending to export goods must first submit an application for pre-evaluation for every export product to the concerned office with the following documentary requirements:

–Letter Request addressed to the Chief, Export Coordination Division/Export Division, specifying the description of the goods, HS Code, CO Form being requested and Country of destination. Kindly address it to:

Chief, Export Coordination Division

Customer Care Center, Gate 3, South Harbor,

Port Area, Manila

In case of application outside Metro Manila:

Chief, Export Division

Customer Care Center

–Company profile

–Cost of production analysis per product (format guide attached, use dollar as currency)

–Manufacturing flowchart

–List of raw materials used

–Plant visit, if deemed necessary

The ECD or Export Division/Unit shall review the documents and act on the application within twenty-one (21) working days from the date of receipt of complete documents. The evaluation may be extended for another ten (10) working days in case of plant visits.

In case of approved application, the ECD/Export Division shall generate and issue a PER containing the list of qualified products and the bases for such findings. The original copy of the PER shall be given to the Exporter through the port’s CCC.

In case the application is disapproved, the ECD/Export Division shall inform the Exporter of such fact at the message thread of the Ticket and upload the PDF copy of the PER stating the reason for the disapproval, without prejudice to the filing of a new application by the Exporter.

Once the exporter has been duly notified that the PER is available for release through the BOC Portal, the exporter may claim the PER in the Customer Care Center.

Where to Purchase Certificate of Origin?

The Certificate of Origin may be purchased at the Cashier Division or at the Customer Care Center of the port concerned.

Application Procedure for issuance of CO

Exporters, producers, or their authorized representatives shall apply to ECD or Export Division/Unit for issuance of a CO Form RCEP along with the following documents:

  1. Export Declaration;
  2. Commercial Invoice;
  3. Bill of lading/Airway bill;
  4. PER (if applicable); and
  5. Other relevant permits (PCA, Phytosanitary certificate, FDA, etc. ).

The ECD or Export Division/Unit shall evaluate the CO Form and affix the signature of the authorized signatory, together with the BOC seal, upon approval. The signed CO Form with a unique CO number shall be transmitted back to CCC for retrieval of the copies intended for exporter and importer.

Issuances:

https://customs.gov.ph/wp-content/uploads/2023/01/CMO-27-2004.pdf https://customs.gov.ph/wp-content/uploads/2023/01/cmo-17-2016-Guidelines- Procedures-on-the-Implementation-of-the-Electronic-Certificate-of-Origin-System- eCOS.pdf

https://customs.gov.ph/wp-content/uploads/2023/01/cmo-15- 2019_Operational_Procedures_for_ASEAN_E_CO_with_form.pdf

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