FTA PORTAL - Export case

Process of FTA Utilization when exporting

To utilize FTAs when exporting from the Philippines, the following sequential procedures are necessary.

Step 1

Effective FTA

To utilize an FTA when exporting, it is necessary to verify that an FTA has been signed and is in effect between the Philippines and the destination country.

The countries with effective FTAs can be checked below.

Overview of Status(FTA)

Step 2

Determine the tariff classification (HS Code) of the export product

Harmonized System code — Since FTA tariff rates are determined by the HS Code, accurately identifying the HS Code is essential.

Import — For imported goods, it is necessary to consult with experts such as customs brokers or apply for an advance ruling on tariff classification from the Tariff Commission to confirm the HS Code.

Export — For exported goods, since the HS Code classification may differ between countries, you should inquire about the required HS Code from the importer in the destination country.

When it's difficult to classify an HS code, you can refer to the following.

Advanced Ruling of Tariff commission

+63 0 000-0000

Step 3

Tariff Benefit

After finding the item number of the exported goods, it is necessary to check whether there are FTA tariff benefits in the destination country.

(Destination Country's MFN Rate - FTA Rate) x Export Value = Tariff Benefit

You can confirm whether there is a tariff benefit to issue a certificate of origin through the following path.

Step 4

Rules of origin

To receive FTA tariff benefits, it is necessary to meet the origin determination criteria specified for each HS code in the agreement.
The origin determination criteria vary for each agreement, but generally, they can be categorized into the following types:

General Standard

Wholly Obtained or Produced

Processing within Territory

Raw Material image — **Raw Material** Philippines

processed goods image — **Processed goods** Philippines

finished product image — **Finished product** Philippines

Sufficient Transformation

Change in Tariff Heading

Raw Material: Steel image — **Raw Material: Steel** Philippines

Car parts image — **Car parts** Philippines

HS Code Change image — **HS Code Change**

Regional Value Content

Imported raw materials image — **Imported raw materials** Processed in the Philippines

processed in the Philippines image — **Processed in the Philippines** Imported raw materials

locally produced raw materials image — **Locally produced raw materials** Philippines

Final product image — **Final product** Philippines

Imported raw materials (processed in the Philippines) + locally produced raw materials (Philippines) = final product (Philippines) If 40% or more of the total value of the final product is added in the Philippines, it is recognized as originating in the Philippines.

Specific Exceptions

Component A image — **Component A** Vietnam

Component B image — **Component B** Philippines

If Vietnam and the Philippines are members of the same FTA, the processing done in both countries can be cumulated.

List
Category		Contents
General Standard	General Principal	Wholly obtain, Processing within territory, Sufficient processing
General Standard	Specific Exceptions	Cumulation, De minimis, neutral goods, substitutable goods, indirect materials, sets, accessories, spare parts, tools, packaging, containers
Product specific rules		Change in tariff heading, Regional value content, Specific processing

Overview of Product Specific Rules

Methods of determining the fulfillment of origin criteria is as below

1

Verify raw material details through BOM

BOM is the list of materials, intermediate products, and components required to manufacture the final product.
2

Confirm the procurement path

Based on the BOM, include the purchasing path necessary for determining the origin, such as whether the item was purchased domestically or overseas, whether it was directly purchased/produced by the exporter, and whether it was produced domestically/purchased domestically/imported from suppliers.

**Additionally, include the prices and HS codes for each material.
3

Determine the origin of the final product (exported goods)

Determine the fulfillment of origin determination criteria for the final product (exported goods) based on the origin, HS code, and price of components/parts.

Step 5

Obtain FTA certificate of origin

The essential and official document required to prove that a product is of Philippines origin for the application of FTA tariff rates in the importing country. It must be issued accurately according to the specifications and guidelines set forth in each agreement, enabling the application of FTA tariff rates by the customs of the importing country. The issuance method of the Certificate of Origin varies according to each agreement.

Form D / E-Form D

ATIGA (ASEAN Trade in Goods Agreement)

Method of Issuance: Issued by the authority

Validity Period: 12 months

Retroactive Issuance: 1 year from date of shipment

Form E

ACFTA (ASEAN-China Free Trade Area)

Method of Issuance: Issued by the authority

Validity Period: 1 Year

Retroactive Issuance: 12 months from shipment

Form AK

Form AKFTA (ASEAN-Korea Free Trade Agreement)

Method of Issuance: Issued by the authority

Validity Period: 1 Year

Retroactive Issuance: 1 year from date of shipment

Form AI

AIFTA (ASEAN-India Free Trade Area)

Method of Issuance: Issued by the authority

Validity Period: 12 months

Retroactive Issuance: 12 months from shipment

Form AJ

AJCEP (ASEAN-Japan Comprehensive Economic Partnership)

Method of Issuance: Issued by the authority

Validity Period: 1 Year

Retroactive Issuance: 1 year from date of shipment

Form PJ

PJEPA (Philippines-Japan Economic Partnership Agreement)

Method of Issuance: Issued by the authority

Validity Period: 6 months

Retroactive Issuance: -

Invoice

PH-EFTA (Philippines-European Free Trade Association)

Method of Issuance: Self-issuance

Validity Period: 12 months

Retroactive Issuance: -

Form AHK

AHKFTA (ASEAN-Hong Kong, China Free Trade Agreement)

Method of Issuance: Issued by the authority

Validity Period: 1 year

Retroactive Issuance: 1 year from date of shipment

Form AANZFTA

AANZFTA (ASEAN-Australia-New Zealand Free Trade Agreement)

Method of Issuance: Self-issuance

Validity Period: 12 months

Retroactive Issuance: 12 months from date of exportation

Form RCEP

RCEP (Regional Comprehensive Economic Partnership)

Method of Issuance: Issued by the authority
Self-issuance (Not in effect)

Validity Period: 1 year

Retroactive Issuance: 1 year from date of shipment

Step 6

Maintain data keeping requirement

ATIGA

Data keeping provision: Annex 8 – Rule 17

Data keeping subject: Exporter; Manufacturer; Issuing Authority

Period: 3 years

ACFTA

Data keeping provision: Attachment A – Rule 19

Data keeping subject: Importer; Exporter; Manufacturer; Issuing Authority

Period: 3 years

AKFTA

Data keeping provision: Appendix I – Rule 13

Data keeping subject: Importer; Exporter; Manufacturer; Issuing Authority

Period: 3 years

AIFTA

Data keeping provision: Appendix D – Article 18

Data keeping subject: Importer; Exporter; Manufacturer; Issuing Authority

Period: 2 years

AJCEP

Data keeping provision: Annex 4 – Rule 5

Data keeping subject: Exporter; Manufacturer; Issuing Authority

Period: 3 years

PJEPA

Data keeping provision: Chapter 3 – Article 41

Data keeping subject: Exporter; Manufacturer; Issuing Authority

Period: 5 years

PH-EFTA

Data keeping provision: Annex I – Article 13

Data keeping subject: Exporter

Period: 3 years

AHKFTA

Data keeping provision: Chapter 3 – Rule 16

Data keeping subject: Producer and
or Exporter applying for
the issuance of CO

Period: 3 years

AANZFTA

Data keeping provision: Chapter 3 – Rule 16

Data keeping subject: Issuing Authority/Body
manufacturer; Producer; Exporter; Importer, and their authorized
representatives

Period: 3 years

RCEP

Data keeping provision: Chapter 3 – Article 3.27

Data keeping subject: Exporters; producers; issuing bodies
or competent authorities

Period: 3 years

Export case