‘If you are a trader, you need to know who produces the good or you still have a declaration that it is originating in the Philippines so that you will be ready during the retro verification or verification of the importing country.’
Exporters wishing to avail themselves of preferential tariffs under the Regional Comprehensive Economic Partnership can apply with the Bureau of Customs to become an approved exporter, according to a customs official.
Gina German, head of the Preferential Rate Unit of the BoC Port of Manila, is encouraging Filipino exporters to start leveraging the RCEP's benefits, foremost of which is being allowed to source materials and products from the 14 other member parties of the mega free trade agreement at lower duty rates.
Study and comply
German also urged companies to study and comply with the RCEP's rules of origin (ROO), a requirement to get preferential tariff treatment under the world's biggest trade deal.
Essentially, the ROO can be regarded as a passport for products, a way to determine the country of origin of a product and establish its eligibility for preferential tariff treatment. It can help businesses reduce costs and boost their competitiveness within the regional market.
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Under RCEP, originating goods are those falling under three categories: wholly obtained in the RCEP party or member state of the agreement; those produced in a party exclusively from originating materials from one or more of the parties; and those produced in a party using non-originating materials, provided the good satisfies the applicable requirements set out in Annex 3A (Product-Specific Rules).
Documentary requirements
German said applicants seeking "approved exporter" status under RCEP should submit the following documentary requirements:
• Duly accomplished application form
• BoC's Certificate of Registration
• Product Evaluation Report or PER, if applicable
Meanwhile, traders applying for approved exporter status, should submit a producer's declaration indicating the originating status of the good for which the trader will be completing a declaration of origin and stating the producer's readiness to cooperate in verification.
"If you are a trader, you need to know who produces the good or you still have a declaration that it is originating in the Philippines so that you will be ready during the retro verification or verification of the importing country," said German during her talk last month at a Department of Trade and Industry webinar.
In addition applicants have to submit a list of the authorized signatories of the DO and their respective specimen signatures.
The application form should be submitted in both hard copy and electronic Portable Document Format to the deputy commissioner of the Assessment and Operations Coordinating Group through the Customer Care Center or CCC.
The Export Coordination Division or ECD will then evaluate the application based on the following criteria:
Exporter is a legitimate exporter who must have been transacting with the BOC for at least one year prior to the date of application
Exporter must have been exporting products to at least one RCEP party for at least one year
• Exporter must have good compliance measured by risk management of the BOC
• Exporter must have a sound bookkeeping and recordkeeping system
• Exporter must have responsible officers or persons authorized to sign the DO, who must have sufficient knowledge, competence in ROO application
• Exporter must be willing to be subjected to regular monitoring and inspection to determine correctness of its declaration with respect to the goods exported.
Written authorization
After evaluation the ECD will grant the status of approved exporter to the successful applicants by issuing a written authorization with its corresponding authorization code within 14 working days.
From there, the BOC will input the details of the approved exporter in its Approved Exporter Database for circulation among the RCEP parties.
RCEP came into effect officially for the Philippines on June 2, 2023 after the Senate finally ratified the agreement in February this year.
The Philippines was the last country to ratify RCEP, a free trade pact among the 10 members of the Association of Southeast Asian Nations — Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam — and the five ASEAN FTA partners Australia, China, Japan, South Korea, and New Zealand.
