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Changes to AANZFTA Rules of Origin Following Entry Into Force of the First Protocol

The First Protocol entered into force on 1 October 2015

The First Protocol to Amend the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) [the First Protocol] entered into force for the following 10 Parties on 1 October 2015:

  • Australia
  • New Zealand
  • Brunei Darussalam
  • Laos
  • Malaysia
  • Myanmar
  • Philippines
  • Singapore
  • Thailand
  • Vietnam

The First Protocol entered into force for Cambodia on 11 January 2016.

The First Protocol entered into force for Indonesia on 1 March 2019.

Summary of changes under the First Protocol

The First Protocol makes a number of changes to the requirements for the Rules of Origin chapter (Chapter 3). The following summarises the changes affecting business:

A new Certificate of Origin (CoO) [PDF 267 KB] with changes to:

  • Box 7
    • clearly sets out the requirement to include the name of the company issuing a Third Party Invoice.
  • Box 9
    • Free on Board (FOB) value is no longer required unless you are claiming AANZFTA origin on the basis of Regional Value Content (RVC) rule
      • however, in the case of goods exported from and imported by Cambodia and Myanmar, the FOB value shall be included on the Certificate of Origin for all goods for two years after entry into force of the First Protocol
    • where the FOB value is required, Australian exporters can continue to provide the FOB value of each good described in the Certificate of Origin in a separate declaration.
  • Overleaf notes
    • Paragraph 4 - Origin Criteria and accompanying table – has changed to simplify the criteria used in filling out Box 8
    • Paragraph 7 – requirement for FOB only where origin is claimed on the basis of an RVC rule – see comment under Box 9 above
    • Paragraph 9 - clearly sets out the requirement to include the name of the company issuing a Third Party Invoice in Box 7.

A new Continuation Sheet [PDF 82 KB] reflecting the changes to the front page of the Certificate of Origin.

Change in presentation of the Product Specific Rules (PSR), with the removal of the General Rule and a Product Specific Rules Schedule that only covered some goods. All goods are now covered under Annex 2 (Product Specific Rules).

Products Specific Rules are now in HS 2012, making it easier to fill in the import documents and the Certificate of Origin; i.e. all now use the same tariff nomenclature.

AANZFTA Parties have produced a guide to assist business to transition to using the First Protocol, 'Guide for Business: Using the First Protocol' [PDF 467 KB] | [DOCX 355 KB]. This guide includes information on the changes introduced by the First Protocol and agreed positions on how to deal with various situations.

Any questions on the First Protocol should be directed to the DFAT AANZFTA inbox; ASEAN.FTA@dfat.gov.au

Summary of changes to the text of the Agreement under the First Protocol

The following changes to the Rules of Origin chapter (Chapter 3) and the Annex on Operational Certification Procedures resulting from the First Protocol.

Amendments to Chapter 3 (Rules of Origin)

  1. Article 4 (Goods Not Wholly Produced or Obtained) of Chapter 3 (Rules of Origin) of the Agreement has been replaced by a new Article 4 providing for a new Annex 2 to contain a list of consolidated Product Specific Rules (i.e. a list that includes all Harmonized Commodity Description and Coding System [HS] subheadings). The previous Annex 2 only covered some subheadings, with others covered by a 'general rule" set out in Article 4 which treated a product as an originating good if:
    1. the good has a regional value content of not less than 40 per cent of FOB calculated using the formulae as described in Article 5 (Calculation of Regional Value Content) of Chapter 3 (Rules of Origin), and the final process of production is performed within a Party; or
    2. all non-originating materials used in the production of the good have undergone a change in tariff classification at the four-digit level (i.e. a change in tariff heading) of the HS Code in a Party.

The new simpler Article 4 is set out below:

Article 4 - Goods Not Wholly Produced or Obtained

  1. For the purposes of Article 2.1(b) (Originating Goods), a good shall qualify as an originating good of a Party if it satisfies all applicable requirements of the Product Specific Rules.
  2. Where Annex 2 (Product Specific Rules) provides a choice of rule between a regional value content based rule of origin, a change in tariff classification based rule of origin, a specific process of production, or a combination of any of these, a Party shall permit the producer or exporter of the good to decide which rule to use in determining if the good is an originating good."

There were changes to Article 19 (Consultations, Review and Modification), replaced by a new Article 19 as set out below. These changes do not have any immediate impact on business use of AANZFTA, but will allow the AANZFTA parties to respond more promptly to issues identified by business in the future.

Article 19 - Consultations, Review and Modification

  1. The Parties shall consult regularly to ensure that this Chapter is administered effectively, uniformly and consistently in order to achieve the spirit and objectives of this Agreement.
  2. The FTA Joint Committee, upon recommendation of the Committee on Trade in Goods and the ROO Sub-Committee, may adopt a List of Data Requirements for inclusion in the Application for a Certificate of Origin and the Certificate of Origin.
  3. The List of Data Requirements, and any subsequent revisions to it, adopted in accordance with paragraph 2 shall be promptly published and shall come into effect on the date determined by the Parties through the FTA Joint Committee and on the basis of a report from the ROO Sub-Committee, through the Committee on Trade in Goods.
  4. The FTA Joint Committee, upon recommendation of the Committee on Trade in Goods and the ROO Sub-Committee, shall adopt the transposition of Annex 2 (Product Specific Rules) that is in the nomenclature of the revised HS Code following periodic amendments to the HS Code. Such transposition shall be carried out without impairing the existing commitments and shall be completed in a timely manner. The Parties shall promptly publish the transposition of Annex 2 (Product Specific Rules) in the nomenclature of the revised HS Code.
  5. This Chapter may be reviewed and modified in accordance with Article 6 (Amendments) of Chapter 18 (Final Provisions) as and when necessary, upon request of a Party, and subject to the agreement of the Parties, and may be open to such reviews and modifications as may be agreed upon by the FTA Joint Committee."

Rules 6, 7 and 10 of the Annex on Operational Certification Procedures to the Rules of Origin chapter have been replaced by new Rules 6, 7 and 10 as set out below:

Pre-exportation examination - Rule 6

The Issuing Authority/Body shall, to the best of its competence and ability, carry out proper examination, in accordance with the domestic laws and regulations of the exporting Party or the procedures of the Issuing Authority/Body, upon each application for a Certificate of Origin to ensure that:

  1. the application and the Certificate of Origin are duly completed and signed by the authorised signatory;
  2. the good is an originating good in accordance with Article 2 (Originating Goods) of Chapter 3 (Rules of Origin);
  3. other statements in the Certificate of Origin correspond to appropriate supporting documents and other relevant information; and
  4. information in the List of Data Requirements is provided for the goods being exported.

Issuance of Certificate of Origin - Rule 7

  1. The format of the Certificate of Origin is to be determined by the Parties and it must contain the data requirements listed in the List of Data Requirements.
  2. The Certificate of Origin shall comprise one (1) original and two (2) copies.
  3. The Certificate of Origin shall:
    1. be in hardcopy;
    2. bear a unique reference number separately given by each place or office of issuance;
    3. be in the English language; and
    4. bear an authorised signature and official seal of the Issuing Authority/Body. The signature and official seal may be applied electronically.
  4. The original Certificate of Origin shall be forwarded by the exporter to the importer for submission to the Customs Authority of the importing Party. Copies shall be retained by the Issuing Authority/Body and the exporter.
  5. Multiple goods declared on the same Certificate of Origin shall be allowed, provided that each good is originating in its own right.

Rule 10

  1. The Certificate of Origin shall be issued as near as possible to, but no later than three (3) working days after, the date of exportation.
  2. Where a Certificate of Origin has not been issued as provided for in Paragraph 1 due to involuntary errors or omissions or other valid causes, the Certificate of Origin may be issued retroactively, but no longer than 12 months from the date of exportation, bearing the words "Issued Retroactively".
  3. An Issuing Authority/Body of an intermediate Party shall issue a back-to-back Certificate of Origin, if an application is made by the exporter while the good is passing through that intermediate Party, provided that:
    1. a valid original Certificate of Origin or its certified true copy is presented;
    2. the period of validity of the back-to-back Certificate of Origin does not exceed the period of validity of the original Certificate of Origin;
    3. the consignment which is to be re-exported using the back-to-back Certificate of Origin does not undergo any further processing in the intermediate Party, except for repacking or logistics activities such as unloading, reloading, storing, or any other operations necessary to preserve them in good condition or to transport them to the importing Party;
    4. the back-to-back Certificate of Origin contains relevant information from the original Certificate of Origin in accordance with the List of Data Requirements; and
    5. the verification procedures in Rules 17 and 18 shall also apply to the back-to-back Certificate of Origin."

Appendix 1 (Minimum Data Requirements – Application for a Certificate of Origin) and Appendix 2 (Minimum Data Requirements – Certificate of Origin) of the Annex on Operational Certification Procedures (OCP) have been removed. In their place, the List of Data Requirements as set out below apply as a transitional measure until such time as a List of Data Requirements is adopted by the FTA Joint Committee in accordance with the new Article 19.2 (Consultations, Review and Modification) of the Rules of Origin chapter.

List of data requirements

1. Exporter details The name and address and contact details of the exporter
2. Shipment details (a Certificate of Origin can only apply to a single shipment of goods)
  • Consignee name and address
  • Sufficient details to identify the consignment, such as importer's purchase order number, invoice number and date and Air Way Bill or Sea Way Bill or Bill of Lading
  • Port of Discharge, if known
3. Full description of goods (i) Detailed description of the goods, including HS Code (6-digit level), and if applicable, product number and brand name

(ii) The relevant origin conferring criteria

(iii) FOB value when the regional value content origin criteria is used1

4. Certification by Issuing Authority/ Body Certification by the Issuing Authority/Body that the goods specified in the Certificate of Origin meet all the relevant requirements of Chapter 3 (Rules of Origin) based on the evidence provided
5. Certificate of Origin number A unique number assigned to the Certificate of Origin by the Issuing Authority/Body

If you are having trouble accessing these documents please contact ASEAN.FTA@dfat.gov.au

1 In the case of goods exported from and imported by Cambodia and Myanmar, the FOB value shall be included in the Certificate of Origin or the back-to-back Certificate of Origin for all goods, irrespective of the origin criteria used, for two (2) years from the date of entry into force of the First Protocol or an earlier date as endorsed by the Committee on Trade in Goods.

The FOB value, where required to be included in the back-to-back Certificate of Origin, shall be the FOB value of the goods exported from the intermediate Party.

In the case of Australia and New Zealand, a Certificate of Origin or back-to-back Certificate of Origin which does not state the FOB value, in cases where this would otherwise be required, shall be accompanied by a declaration made by the exporter stating the FOB value of each good described in the Certificate of Origin.

Last Updated: 14 March 2019
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