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Certificate of Origin using RCEP

The number of Type 2024 Specific Certificates of Origin issued in 6.0 increased by 45% from the previous year to 3,293.

In particular, issuance for RCEP (Regional Comprehensive Economic Partnership) agreements increased significantly by 17.9% to 16, accounting for 1,691% of the total.

This is because an increasing number of companies are enjoying the benefits of tariff reductions following the entry into force of RCEP.

What is RCEP? ~Asia's largest economic partnership agreement~

The Regional Comprehensive Economic Partnership (RCEP) is the world's largest free trade agreement, involving 15 countries in the Asia-Pacific region (the 10 ASEAN countries, Japan, China, South Korea, Australia, and New Zealand).

The agreement will see the gradual reduction and elimination of tariffs among participating countries, streamline trade procedures, and apply cumulative rules of origin, making international trade easier and more cost-effective for companies.

What will change if RCEP Certificate of Origin is used?

By utilizing the RCEP Certificate of Origin, it will be possible to apply the agreed tariff rates (no tax or low tax rates) to eligible items.

For example, automobile parts and electronic devices are items that are normally subject to tariffs, but under RCEP, many items are eligible for zero tariffs or gradual tax reductions.

For trading companies and manufacturers,

  • Strengthening cost competitiveness
  • Expanding sales channels (exports with price advantages)
  • This has major benefits, such as ensuring flexibility when restructuring the supply chain.

The concept of origin and accumulation rules in RCEP

The origin determination in RCEP will be based on the following criteria:

  • Wholly Produced: All materials and processing are from a single country of origin.
  • Substantial transformation criteria: A product is considered to be an originating product if a certain level of processing or added value is recognized (CTC: tariff change criteria, VA: value added criteria, etc.).

Furthermore, one of the major features of RCEP is the "cumulative rules."

This is a system in which materials and parts that are procured and processed in multiple RCEP member countries can be treated as coming from a single country of origin and be eligible for preferential tariff treatment, so long as certain conditions are met.

This system allows for more flexible and practical determination of country of origin, and is having a major impact on companies' trade strategies.

Note the differences from other EPAs

Because RCEP and other EPAs (Economic Partnership Agreements) have different rules of origin and whether or not they can be applied cumulatively, it is necessary to accurately understand the differences in the systems and utilize them effectively.

For example, RCEP uses the 2022 edition of the HS code, but other EPAs use different editions, so it is necessary to check.

Key points for obtaining a Certificate of Origin

Under the RCEP agreement, the application process must be completed online at the Japan Chamber of Commerce and Industry.

The application details require confirmation of the HS code, product specific regulations (PSR), and whether or not there is cumulative application.

There is also a risk that tariff preferences will not be applied if the wrong HS code or product-specific regulations are selected.

Therefore, you can feel at ease knowing that you have the support of a professional institution to carry out the process.

For inquiries regarding Certificates of Origin, please contact Support Administrative Scriveners Corporation.

The importer has asked me to obtain a Certificate of Origin, but I don't know how to do it...

If you have any concerns or problems, please contact us.

    (Author: Ishikura)

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