Customs outlines rules for RCEP imports, exports

As the Regional Comprehensive Economic Partnership (RCEP) takes effect, the Bureau of Customs (BOC) has issued a set of guidelines outlining the rules to obtain preferential tariff treatment under the regional free trade deal.

In a statement, the BOC said it issued Customs Memorandum Order (CMO) No. 12-2023, dated May 26, 2023.

The bureau said the CMO 12-2023, signed by Customs Commissioner Bienvenido Rubio, took effect on June 2, 2023.

Under the latest order, imported goods that originate from any of the member countries are the only ones eligible to claim the preferential tariff rates provided by the RCEP.

The RCEP removes at least 90% of tariffs on imports within signatory countries, covering the 10 members of the Association of Southeast Asian Nations (ASEAN) and its partners Australia, China, Japan, South Korea, and New Zealand.

The latest Customs order outlines specific procedures that must be followed for the issuance and acceptance of the so-called “certificate of origin.”

Under the RCEP deal, certificates of origin are required to accompany goods as they are transported between member-countries. The certificate confirms the country of origin of the goods, which would allow customs authorities, importers, and exporters to monitor the movement of goods within the RCEP trading bloc.

To qualify for the RCEP tariff rates, the BOC said importers must obtain this certification along with a declaration of origin from exporters who have been authorized by the Philippines, as specified by the Customs.

The BOC said it has tasked its Export Coordination Division (ECD) to scrutinize all submitted certificates of origin and applications for Approved Exporter status.

“ECD shall carry out verifications of the originating status of the goods upon request of the RCEP importing party or based on risk analysis criteria. Verification can be made based on documents requested from the exporter or producer or by inspections at the exporter’s or producer's premises,” the CMO read.

While the RCEP eliminates at least 90% of tariffs on commodities traded between member countries, the Philippines retained its existing preferential tariff rates for 98.1% of the 1,718 agricultural tariff-lines or imported products with tariffs as well as for 82.7% of the 8,102 industrial tariff-lines.

“Out of the 1,685 agricultural tariff lines that are being preserved at present rates, 1,426 will be maintained at a zero rate, while 154 will continue to be charged at their existing most favored nation rates, and will therefore not be included in any form of tariff concessions,” the BOC said.

The bureau, however, said that the final determination on the rate of duty shall be based on the assessment of the submitted documents from the importers.

On the other hand, the BOC said exporters are required to submit an application with the ECD for the issuance of a certification of origin for RCEP.

The agency said the application should include the necessary supporting documents, such as an export declaration, commercial invoice, bill of landing/airway bill, and other relevant permits.

“In cases where the RCEP preferential tariff rate is higher than the applied rate at the time of importation, the importer shall be allowed to apply for a refund of any excess duties and taxes paid for originating goods,” BOC said. —KG, GMA Integrated News