As we work through some of the new processes associated with ChAFTA we are experiencing a spate of late Certificates of Origin. Our focus is always on avoiding delays at customs and not receiving these certificates in a timely manner has knock-on effects for our clients that include avoidable delays to customs clearance and in some instances paying duty unnecessarily and incurring professional services fees for refund processing once the certificate is received.
We are doing everything in our control to minimise or avoid delays completely and we would like to alert you to some steps you can take to facilitate the receipt of the Certificate of Origin in a timely manner.
1). Remind your supplier not to delay applying for the Certificate of Origin on the basis of unknown means of transport or routing;
2) Changes to vessel or flight details will not affect the eligibility of the consignment to obtain reduced duty rates provided the goods are still destined for direct shipment to Australia;
3). Advise your supplier to forward the certificate ASAP. There is no need to forward the original certificate as copies are acceptable.
A couple of refresher points that will also help with avoiding customs delays by ensuring certificates are issued as quickly as possible and are valid for use:
- Ensure that only authorised bodies are used to issue the certificates. The only two authorised bodies are the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), and The China Council for the Promotion of International Trade
- Certificate’s must be completed in English
- Certificates can include multiple goods but must not exceed 20 individual classifications
- Can only be used for a single shipment of goods
- They are valid for one year
- Ensure that the invoice number(s) and the marks and numbers listed on the Certificate of Origin match the documentation used for customs clearance.
The origin criterion listed on the certificate indicates how the goods listed on the certificate comply with the regulations of the ChAFTA. The criteria indicate how much of the raw materials or manufactured goods was obtained or manufactured within Australia and or China. Some goods will be ineligible to use some origin criterion due to their nature, for example manufactured goods would be unlikely to qualify for reduced duty rates under ChAFTA via the Wholly Obtained criterion as this is intended for use for raw materials such as minerals.
Whereas, manufactured goods which are entirely produced from components made within Australia or China or a combination of both would more than likely qualify via the Wholly Produced (WP) criterion; and manufactured goods that are made in China from components made within Australia and or China and other countries would more than likely qualify via the Product Specific Rule (PSR).
- WO (Wholly Obtained) – for goods such as minerals, agricultural products and animals born in China. Would not apply to products that are further manufactured.
- WP (Wholly Produced) – for goods that are produced entirely from Australian or Chinese originating materials.
- PSR (Product Specific Rules) – for goods produced from Australian and/or Chinese goods and goods that have been manufactured in other countries and satisfy the applicable product specific rules relating to the classification of the good to be exported.