Today an old customer sent me a message, He encountered problems with his new supplier and wanted to seek help from me.
They wanted to import a batch of watches but wanted a new supplier to do the FE, the new supplier gave him a very high quote, so he asked me how we shipped and get the Form E before. Then I helped the customer to solve the problem.
Then Let’s know more about the FORM E for our Indonesian customer
What is Form E?
Form E， short for FE, Also named Format E
Form E is the certificate of origin of China ASEAN Free Trade Area, which is only applicable to the certificate of origin between China and ASEAN countries. It is a preferential certificate of origin signed under the provisions of the China-ASEAN Framework Agreement on Comprehensive Economic Cooperation on Trade in Goods signed between China and ASEAN.
In China, the AQSIQ inspection and quarantine agencies located in various regions are responsible for issuing such certificates of origin. The certificate is brown in color and issued in four copies.
Why Indonesia Market Customers Need Form E
If you want to know why you need to use form e, then you need to know what FORM E does.
The certificate of origin is an effective certificate for trade relations to hand over goods, settle payments, claim claims, importing countries to clear customs and collect tariffs, and it is also a certificate for exporting countries to enjoy quota treatment and importing countries to implement different trade policies for different exporting countries.
Purpose: It’s a free trade agreement to create a unified market by reducing tariff and non-tariff barriers
In other words: Form E is used by ASEAN customers for customs clearance, and can be used to:
- prove that the products were imported from China;
- the local government will reduce import duties for you.
Which Countries Benefit from ASEAN Certificate of Origin?
The free trade Area countries benefiting are 10 ASEAN countries, including China, there are 10+1 countries
They are: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam to form a free trade area, which came into effect on January 1, 2010
Approximately how much duty can be reduced?
Take ASEAN as an example, it will have an average tariff reduction of 8%
What is the Difference Between a Certificate of Origin CO and FORM E?
In the process of communication, some customers will ask, “I have heard that the Certificate of Origin is not a Certificate of Origin. Then what is the difference between a Certificate of Origin (short for CO) and Form E? Can I just provide CO for customs clearance?
1、CO is a general certificate of origin, which can be applied for in any country to prove that the goods originate from China, without the effect of tariff reduction.
FORM E is the ASEAN GSP Certificate of Origin, which can be applied to 10 ASEAN countries to prove that the goods originated from China and that there are tariff preferences for customs clearance in the destination country.
2、CO is possible if you consider customs clearance alone, but there is no tariff reduction.
It is recommended to do FORM E for customers, FORM E can reduce the tariff for customers, which is indirectly beneficial to you, indicating that customers import from you at a low cost, which is conducive to future cooperation.
When Shipping to Indonesia Market, Notes on doing FORM E
To ensure that the Form E application is available and valid, you can remind your suppliers to do this before they apply to ensure that you can clear customs and reduce duties
The content of these files should remain the same as Form e.: the bill of lading, commercial invoice, packing list, and PI to be consistent, You need to send the original before arranging shipment to the customer.
Consistent means that the recipient, sender, cargo information, amount, unit price, etc. should be consistent
How to Avoid the Return of the Certificate?
- For goods exported to Indonesia, Thailand, the Philippines, and other countries, the customs clearance invoice should be consistent with the certificate of the exporter;
- for goods exported to Indonesia, Thailand, and other countries, the commercial documents and the description of the trade name on the certificate should be consistent;
- for goods transhipped through Hong Kong and Macao, regardless of whether the bill of lading shows, the relevant local departments should apply for “no reprocessing certificate” countersignature as early as possible;
Classification of Certificate of Origin
Certificates of origin are divided into 4 categories, they are
See below for details:
First, GSP Certificate of Origin (FORM A)
GSP certificate of origin is an official certificate with legal effect for our export products to enjoy further reduction of import tariff on the basis of the most favored nation rate in the country of preference.
At present, there are 38 countries that give GSP treatment to China:
27 countries of EU (Belgium, Denmark, Britain, Germany, France, Ireland, Italy, Luxembourg, Netherlands, Greece, Portugal, Spain, Austria, Finland, Sweden, Poland, Czech Republic, Slovakia, Latvia, Estonia, Lithuania, Hungary, Malta, Cyprus, Slovenia, Bulgaria, Romania ),
Norway, Switzerland, Turkey, Russia, Belarus, Ukraine, Kazakhstan, Japan, Canada, Australia and New Zealand.
Second, the general certificate of origin (CO)
General certificate of origin is to prove that the goods originated in a particular country or region, enjoy the normal tariff (most-favored-nation) treatment of the importing country’s supporting documents.
It is applicable to the imposition of tariffs, trade statistics, safeguard measures, discriminatory quantitative restrictions, anti-dumping and countervailing, origin marking, government procurement, etc.
Third, regional economic grouping reciprocal certificate of origin
At present, there are mainly
- <China-ASEAN Free Trade Area>preferential certificate of origin,
- <Asia-Pacific Trade Agreement>certificate of origin,
- <China-Pakistan Preferential Trade Arrangement> preferential certificate of origin
- <China-Chile Free Trade Area> certificate of origin, etc.
A Regional Preferential Certificate of Origin is an official certificate with legal effect to enjoy reciprocal tariff reduction and the exemption for specific products among member countries of the agreement.
1、Certificate of Origin of <Asia-Pacific Trade Agreement> (FORM B)
The Certificate of Origin has been issued since September 1, 2006. The countries are: Korea, Sri Lanka, India, Bangladesh, and the other 4 countries. The rate of tariff reduction ranges from 5% to 100%.
2、<China-ASEAN Free Trade Area> Preferential Certificate of Origin (FORM E)
Since January 1, 2004, all agricultural products exported to ASEAN (HS Chapter 1 to Chapter 8) can enjoy preferential tariff treatment by virtue of FORM E.
Since July 20, 2005, more than 7,000 kinds of normal products began to reduce tariffs across the board.
China and 6 old ASEAN member countries (i.e. Brunei, Indonesia, Malaysia, the Philippines, Singapore, and Thailand) to July 2005 40% tariff items to 0-5%;
January 2007 60% tariff items to be reduced to 0-5%. January 1, 2010, will be the final reduction of tariffs to zero.
Laos, Myanmar until January 2009, Cambodia until January 2012 50% tariff lines tariff reduction to 0-5%;
2013 40% tariff lines tariff reduction to zero. Vietnam reduced tariffs to 0-5% for 50% tariff lines in 2010.
the other four countries (Laos, Myanmar, Cambodia, and Vietnam) reduced tariffs to zero in 2015.
The countries that can issue certificates of origin are: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam, and other 10 countries.
FORM D is the certificate of origin of the ASEAN FTA, and FORM E is the preferential certificate of origin used in China-ASEAN FTA.
Remark: FROM D is the production area of ASEAN Free Trade Area, this ASEAN Free Trade Area actually does not include China, but for example, Thailand, Vietnam, Malaysia and other ASEAN countries between the certificate of origin.
Therefore, many ASEAN customers do not understand that China-ASEAN FTA is using FORM E, not FORM D, so they make such a request. So to engage in trade with ASEAN customers, it is fine as long as we provide FORM E.
3、China-Chile Free Trade Area Certificate of Origin (FORM F)
Since October 1, 2006, entry-exit inspection and quarantine agencies around the world have started to issue “China-Chile Free Trade Area Preferential Certificate of Origin” (FORM F), and the tariff of 5891 6-digit tariff items of products originating from China has been reduced to zero since that date.
4. <China and Pakistan Free Trade Area> Certificate of Origin (FORM P)
The preferential certificate of origin of the China-Pakistan Free Trade Area can be issued to Pakistan, and more than 3,000 tariff lines of products with tariff reduction implemented by both sides from January 1, 2006, will have zero tariff and preferential tariff respectively.
The tariff of 486 8-digit zero tariff items originating from China was reduced to “zero” on January 1, 2008,
and the preferential tariff of 486 8-digit zero tariff items originating from China will be implemented, with an average preferential rate of 22%.
The tariff preferences are given to the tariff-preferential range of goods from 1% to 10%.
5. Form L: China and Costa Rica
The tariff will come into effect on August 1, 2011. China and Costa Rica will implement zero tariffs for more than 90% of their respective products in phases.
Chinese textile raw materials and products, light industry, machinery, electrical equipment, vegetables, fruits, automobiles, chemicals, raw fur and leather, and Colombian coffee, beef, pork, pineapple juice, frozen orange juice, jam, fish meal, minerals, raw hides, and other products will benefit from the tariff reduction arrangement.
Enterprises can enjoy the tariff reduction with the certificate of origin.
6. China – New Zealand FTA Certificate of Origin
If the goods are re-exported to Chile via Hong Kong and Macao, after obtaining the certificate of origin, the exporter should hold the above certificate and relevant documents to Hong Kong and Macao China Inspection Company Limited to apply for “no further processing certificate. You can also reduce the tariff
7. China – Singapore FTA Certificate of Origin
In addition to the goods listed in the form of product-specific rules of origin, other products exported to Singapore that are to enjoy preferential tariff treatment under the Agreement must have a regional value component of no less than 40%.
8. China – Peru Free Trade Area Preferential Certificate of Origin.
9. Mainland China and Hong Kong and Macau
10. Mainland China and both sides of the Taiwan Strait Certificate of Origin
Fourth, the special certificate of origin
Special certificate of origin is the certificate of origin stipulated by international organizations and countries according to the special needs of policies and trade measures for specific products of a particular industry.
There are mainly certificates of origin for canned mushrooms exported to the EU,
- Certificates of authenticity for tobacco, etc.
- Certificate of origin for agricultural products exported to EU
- Certificate of Origin for Tokoyi Wine.
- Certificate of Origin for Tokoyi Wine to the EU
So, it is:
- FORM A is the official certificate with legal effect for our export products to enjoy a further reduction of import tariff on the basis of MFN rate in the country of preference.
- FORM B Certificate of Origin of Asia-Pacific Trade Agreement
- FORM C for non-multi-fiber textiles declaration, applicable to the main value or the main weight of raw materials belonging to hemp or silk, or the weight of wool contained therein does not exceed 17% of the textiles for multi-country declaration of origin (Multiple country declaration), declaring that the raw materials of goods are generated by several countries.
- FORM D is the certificate of origin of the ASEAN Free Trade Area
- FORM E is the preferential certificate of origin used in the China-ASEAN FTA
- FORM F is the “Golden Certificate” for Chilean exports
- FORM P is the Certificate of Origin for China-Pakistan Free Trade Area.
- Form L is China to Costa Rica
And in form, it will be more clear.
This means, for the above countries, when imports from China, you can also use the Certificate of Origin to reduce or eliminate Customs duties/import taxes.
When customers from these countries want to import in China, you can remind your watch manufacturer to do the following:
If you are a Chinese watch manufacturer (of course not only limited to this one product), if you (purchaser) from these countries, to order products in China, you can remind your customers, or purchasers to remind your Chinese suppliers that:
- Apply Certificate of Origin for Tax Refund
- Apply certificate before shipping, At least 15-30 days ahead.
- Be sure to confirm all information matches yourself so that you don’t lose money
Questions On Form E
1. Is the Supplier Column Written Down the Manufacturer’s Company Name or the Other Company’s Name? Can the Customer Declare the Customs?
In general, the point of contention is whether the names of the manufacturer and exporter are consistent, but in fact, If your exporter’s name is consistent with all the documents, it does not affect the buyer’s import customs clearance
So you can ask the customer what they required.
- If the customer does not require the shipper & the manufacturer to keep the same, you can choose to use the agent of the license as the exporter, and in the manufacturer column, you can still fill in the name of the watch manufacturer.
- If the purchaser company regulations, the exporter & manufacturer must be the same name and must be the name of the real manufacturer, then the manufacturer can only go to the local Trade Promotion Council or inspection and quarantine agencies or local commodity inspection agencies to apply, but the manufacturer is not sure Whether the application requirements have been met, the time or cost can not estimate.
2. Is it True that if Form E is Filled in with a Hong Kong Company, the Client （ Receiver ）will not have the Tax Deduction Benefit?
As long as the company is in China, there can be preferential treatment, Hong Kong is also a part of China
Pensamento final
The above is about the benefits of Form e for Indonesian customers, as well as for some customers in free trade zones, if you are looking for Chinese watch suppliers or suppliers on the way, and feel that the price is too expensive, then you can calculate the price after the tax reduction, I believe that it must be beneficial to you to reduce costs and capture the market!
