Promulgation Authorities:  General Administration of Customs

Promulgation Date:  2021.11.23

Effective Date:  2022.01.01

Validity Status:  valid

Document Number:  GACC Decree No. 255

Administrative Measures of the GACC on Origin of Imports and Exports under the Regional Comprehensive Economic Partnership (RCEP)

Administrative Measures of the GACC on Origin of Imports and Exports under the Regional Comprehensive Economic Partnership (RCEP)

GACC Decree No. 255

(Promulgated under Decree No. 255 of the General Administration of Customs of the People's Republic of China ("GACC") on 23 November 2021, effective 1 January 2022)

Chapter I General Provisions

Article 1    These Measures are enacted pursuant to the provisions of the Customs Law of the People's Republic of China, the Regulation of the People's Republic of China on Origin of Imports and Exports and the Regional Comprehensive Economic Partnership (hereinafter referred to as the "RCEP") for the purposes of properly determining the origin of imports and exports under the RCEP and promoting economic and trade exchanges between China and other members of the RCEP.

Article 2    These Measures shall apply to administration of origin of imports and exports under the RCEP between the People's Republic of China and other members of the RCEP.

Members referred to in these Measures shall mean countries (regions) which have implemented the RCEP. The specific list shall be separately promulgated by the GACC.

Chapter II Rules of Origin

Article 3    Goods which satisfy any of the following criteria shall be originating goods under the RCEP (hereinafter referred to as the "originating goods") and shall qualify as originating goods under the RCEP (hereinafter referred to as the "origin qualification"):

(1) wholly obtained or produced in a member;

(2) wholly produced in a member with originating materials; or

(3) wholly produced in a member using non-originating materials but comply with change in tariff classification, regional value content, manufacturing or processing procedures or other requirements stipulated by the product-specific rules of origin.

The product-specific rules of origin shall be separately announced by the GACC.

Article 4    Goods wholly obtained or produced in a member referred to in Article 3 hereof shall mean:

(1) plants or plant products grown, harvested, picked or collected in that member;

(2) live animals born and raised in that member;

(3) goods obtained from the live animals raised by the said member;

(4) goods directly obtained through hunting, trapping, fishing, farming, aquaculture, collection or capturing in the said member;

(5) minerals and other natural resources extracted or obtained from the territory, territorial waters, seabed or subsoil beneath the seabed of that member but not included in Items (1) to (4) of this Article;

(6) goods of sea-fishing and other marine life taken by vessels of that member from the high seas or exclusive economic zones that that member has the right to exploit in accordance with international law;

(7) goods not included in Item (6) of this Article that are obtained by that member or by persons of that member from the waters, seabed or subsoil beneath the seabed outside the territorial sea of that member in accordance with international law;

(8) goods processed or manufactured exclusively using goods referred to in Item (6) or Item (7) of this Article on board any factory ship of that member;

(9) waste and scrap derived from the production or consumption of such member and only used for the disposal of wastes or the recycling and utilization of raw materials;

(10) used goods collected in the said member only for the purpose of waste disposal or recycling of raw materials; and

(11) goods obtained or produced by using only the goods as listed in Items (1) to (10) of this Article or their derivatives in that member.

Article 5    With respect to the goods that conform to the provisions of Item (3), Paragraph 1 of Article 3 hereof, if the non-originating materials used in the production only undergo one or more of the following processing or treatment in a member, such goods still do not have the origin qualification:

(1) storage operations to ensure that the goods are kept in good condition during the transportation or storage period;

(2) packaging or display for transportation or sale of goods;

(3) simple processing, including sifting, screening, sorting, classifying, sharpening, cutting, slitting, grinding, bending, coiling or uncoiling;

(4) affixing or printing marks, labels, logos and other similar signs for distinguishing on goods or the packaging thereof;

(5) only diluting with water or other substances, which does not substantially change the characteristics of the goods;

(6) dismantling products into parts;

(7) slaughtering animals;

(8) simple lacquering and polishing;

(9) simple peeling, removal of seeds or shells; or

(10) simple mixing of products, regardless of whether they are of different types.

The term "simple" as used in the preceding paragraph describes an activity which does not need special skills, or machines, apparatus, or equipment especially produced or installed for carrying out the activity.

Article 6    Originating goods or materials obtained or produced in one member and used in the production of another member shall be deemed as originating materials of that member.

Article 7    Regional value content as referred to in Article 3 hereof shall be calculated according to either of the following formulas:

(1) Build-down formula

Regional value content = (FOB of the goods – value of non-originating materials) ÷ FOB of the goods × 100%

(2) Build-up formula

Regional value content = (value of originating materials + direct labour cost + direct overhead cost + profits + other costs) ÷ FOB of the goods × 100%

FOB of the goods

Value of originating materials refers to the price of originating materials and parts used for the production of the goods;

Direct labour cost includes wages, remuneration and other employee benefits;

Direct overhead cost refers to the overall operating expenses; and

Value of non-originating materials refers to the import costs of non-originating materials, freight charges and insurance premiums for delivery to the port or place of destination, including the price of materials of undetermined origin. Where non-originating materials are obtained in the territory of a member, the value shall be the earliest determinable paid-in or payable price in that member.

The following expenses may be deducted from the price of non-originating materials:

(1) freight charges, insurance premiums and packaging fees for transporting non-originating materials to the manufacturer, as well as other transport-related expenses incurred in the process;

(2) customs duties, other taxes and customs clearance agency fees that have not been exempted, returned or otherwise refunded; and

(3) waste and emission costs after deducting the recycling price of waste and by-products.

The price of goods referred to herein shall be calculated with reference to the WTO Agreement on Customs Valuation. All costs shall be recorded and kept in accordance with the generally accepted accounting principles applicable to the member producing the goods.

Article 8    With regard to the goods for which the requirements for change in tariff classification under the RCEP apply for determination of origin qualification, if they do not fall under the circumstances stipulated in Article 5 hereof, and the non-originating materials used in the production process which do not satisfy the requirements for change in tariff classification meet any of the following conditions, they shall be deemed as originating goods:

(1) the price of all the aforesaid non-originating materials determined in accordance with Article 7 hereof does not exceed 10% of the FOB of the goods; or

(2) where the goods are included in Chapter 50 to Chapter 63 of the Customs Import and Export Tariff of the People's Republic of China (hereinafter referred to as the "Tariff"), the weight of all the aforesaid non-originating materials does not exceed 10% of the total weight of the goods.

Article 9    The following packaging materials and containers do not affect the determination of the origin qualification of the goods:

(1) packaging materials and containers used for protection of the goods during transportation; and

(2) packaging materials and containers classified together with the goods for retail purpose.

Where the origin qualification of the goods is determined by the applicable standard of regional value content, the price of packaging materials and containers classified together with the goods for retail purpose shall be included in the price of originating materials or non-originating materials for calculation in the calculation of regional value content of the goods.

Article 10    The accessories, spare parts, tools and explanatory materials declared together with the goods for import, classified together under the Tariff and for which no separate invoice is issued do not affect the determination of the origin qualification of the goods.

Where the origin qualification of the goods is determined by the applicable standard of regional value content, the price of the accessories, spare parts, tools and explanatory materials listed in the preceding paragraph shall be included in the price of originating materials or non-originating materials for calculation in the calculation of regional value content of the goods.

The quantity and price of the accessories, spare parts, tools and explanatory materials shall be within a reasonable range.

Article 11    The following materials used in the production, testing or inspection of goods and not themselves part of the goods shall be deemed as originating materials:

(1) fuel and energy resources;

(2) tools, dies and molds;

(3) spare parts and materials used for maintenance of equipment and buildings;

(4) lubricants, oil (grease), synthetic materials and other materials used in the production or used to operate equipment and maintain workshops and buildings;

(5) gloves, glasses, shoes and boots, clothing, safety equipment and supplies;

(6) equipment, devices and supplies used for testing or inspection of the goods;

(7) catalysts and solvents; and

(8) other materials that can be reasonably proved to be used for production.

Article 12    The origin qualification of goods or materials that are fungible for commercial purposes and are essentially the same in nature shall be determined respectively by one of the following methods:

(1) physical separation; or

(2) inventory management methods recognized by the generally accepted accounting principles of the exporting member and continuously used throughout the accounting year.

Article 13    When determining the origin qualification of goods, the standard unit of the goods shall be consistent with the basic unit used for determining the commodity classification under the Convention on the Harmonized Commodity Description and Coding System.

Where a consignment consists of a number of identical goods classified under the same tariff line, the origin qualification of each good shall be determined respectively.

Article 14    With regard to the goods that qualify as originating and are included in the List of Special Goods of the importing member, if the value content of the exporting member is not less than 20%, the country (region) of origin under the RCEP (hereinafter referred to as the country (region) of origin) shall be the exporting member.

The value content of the exporting member stipulated in the preceding paragraph shall be calculated in accordance with the provisions of Article 7 hereof, but the materials produced by other members shall be deemed as non-originating materials.

The List of Special Goods of all members shall be separately announced by the GACC.

Article 15    With regard to the goods that possess origin qualification but are not included in the List of Special Goods of the importing member, their country (region) of origin shall be the exporting member if one of the following conditions is met:

(1) such goods have been wholly obtained or produced in the exporting member;

(2) such goods are produced exclusively from originating materials and have undergone processing or treatment other than those stipulated in Article 5 hereof in the exporting member; or

(3) such goods are produced in the exporting member using non-originating materials and comply with the provisions of the product-specific rules of origin.

Article 16    For the goods that possess origin qualification but whose country (region) of origin cannot be determined in accordance with the provisions of Article 14 and Article 15 hereof, their country (region) of origin is the member whose price accounts for the highest proportion of all the originating materials provided for the production of the goods in the exporting member.

Article 17    With regard to the originating goods transported from the exporting member to the importing member, such goods shall retain their origin qualification if one of the following conditions is met:

(1) such goods do not pass through any other country (region); or

(2) such goods pass through any other country (region), but except for logistics activities such as loading and unloading, storage and other necessary operations for transporting the goods or keeping the goods in good condition, the goods have not undergone any other treatment in the territory and are under the supervision of the customs of the said country (region).

Chapter III Proof of Origin

Article 18    The proof of origin under the RCEP shall include a certificate of origin and a declaration of origin.

The proof of origin shall be completed in writing in English and the specific format shall be separately announced by the GACC.

Article 19    A certificate of origin shall satisfy the following conditions:

(1) it shall have a unique certificate number;

(2) it shall indicate the basis on which the goods possess origin qualification; and

(3) it shall be issued by the issuing authority of the exporting member and bear the authorized signature and seal of the issuing authority.

The certificate of origin shall be issued before the shipment of the goods; if it is issued after the shipment due to negligence or other reasonable cause, it shall be endorsed with the words "ISSUED RETROACTIVELY".

If there is any correction to the contents set out in the certificate of origin, the authorized signature and seal of the issuing authority of the exporting member shall be affixed to the corrections.

Article 20    The certified copy of a certificate of origin shall have the same certificate number and issuance date as the original certificate of origin and shall be endorsed with the words "CERTIFIED TRUE COPY", which shall be deemed as the original certificate of origin.

Article 21    A declaration of origin shall be issued by an approved exporter and shall satisfy the following criteria:

(1) it shall have a unique number of the approved exporter;

(2) it shall have a unique declaration number;

(3) it shall bear the name and signature of the issuer;

(4) it shall indicate the date on which the declaration of origin is issued; and

(5) the exporting member has notified the other members of the information of the approved exporter.

Article 22    With regard to unprocessed originating goods that are transited or re-exported in a member, the issuing authority or approved exporter of that member may issue a back-to-back proof of origin based on the initial original proof of origin to prove that the origin qualification and the country (region) of origin of the goods remain unchanged.

The processing referred to in the preceding paragraph shall exclude logistics operations such as loading and unloading, storage, dismantling and transportation, repackaging, labeling in accordance with the legal requirements of the importing member and other operations necessary for the transportation of the goods or for keeping the goods in good condition.

Article 23    A back-to-back proof of origin shall comply with the relevant provisions of the present Measures on proof of origin and satisfy the following conditions:

(1) it shall include the date of issuance of the initial proof of origin, serial number and other relevant information; and

(2) for goods that are exported through logistics splitting, the quantity after splitting shall be stated, and the total quantity of exported goods after splitting shall not exceed the quantity of goods specified in the initial proof of origin.

Article 24    A proof of origin shall be valid for one year from the date of issuance.

The validity period of a back-to-back proof of origin shall be the same as that of the initial proof of origin.

Chapter IV Procedures for Enjoying Preferential Customs Clearance of Imported Goods

Article 25    The corresponding tariff rates under the RCEP may apply to the imported goods with the origin qualification according to their countries (regions) of origin.

Article 26    Where a consignee of imported goods or the agent thereof applies for the application of tariff rates under the RCEP for the imported originating goods, it shall declare in accordance with the relevant provisions of the GACC and go through the formalities by presenting the following documents:

(1) a valid proof of origin under the RCEP;

(2) a commercial invoice of the goods; and

(3) full transport documents of the goods.

Where the goods are transported to the territory of China after passing through any other country (region), other supporting documents proving that the goods comply with the provisions of Article 17 hereof shall also be submitted.

Article 27    Regardless of whether the country (region) of origin of the goods is endorsed in the proof of origin under the RCEP, a consignee of imported goods or the agent thereof may apply for the application of the highest tariff rate under the RCEP applied to the same originating goods of other members; where the consignee of imported goods or the agent thereof is able to prove that it provides originating materials for the production of such goods, it may also apply for the application of the highest tariff rate under the RCEP applied to the same originating goods of the aforesaid members.

Article 28    Where the dutiable value of originating goods imported in the same batch does not exceed USD200, a consignee of imported goods or the agent thereof may be exempted from submitting the proof of origin when applying for the application of tariff rate under the RCEP.

The provisions of the preceding paragraph shall not apply to split declaration of imports for the purpose of evading the provisions of the present Measures.

Article 29    For the imported goods whose country (region) of origin is declared as a member, if a consignee of the imported goods or its agent fails to obtain a valid proof of origin before completing the customs formalities, it shall make a supplementary declaration to the customs on whether the goods possess the origin qualification before completing the customs formalities, unless it is otherwise prescribed by the GACC.

Where the consignee of imported goods or the agent thereof makes a supplementary declaration to the customs that the imported goods possess the origin qualification and provides tax guarantee pursuant to the provisions of the preceding paragraph, the customs shall handle import formalities in accordance with the law, except where the laws and administrative regulations stipulate that guarantee shall not be handled. Where a tax guarantee equivalent to the maximum amount of tax for the goods has been provided due to advance clearance or other reasons, it shall be deemed as compliance with the provisions of the present paragraph on provision of tax guarantee.

Article 30    In order to determine the authenticity and accuracy of the proof of origin and verify the origin qualification and the country (region) of origin of the imported goods, the Customs may verify the origin through the following methods:

(1) requiring the consignee of imported goods or the agent thereof, the overseas exporter or manufacturer to provide supplementary information; or

(2) requiring the issuing authorities or competent authorities of the exporting member to provide supplementary information.

Where necessary, the Customs may, upon consent of the exporting member, conduct on-site verification on the overseas exporter or manufacturer or conduct verification in any other manner agreed with the exporting member.

During the verification period, the Customs may, upon application by the consignee of imported goods or the agent thereof, handle guaranteed clearance, unless otherwise stipulated by laws and regulations.

The Customs shall notify the consignee of imported goods (or the agent thereof), the overseas exporter (or manufacturer) or the issuing authorities (or competent authorities) of the exporting member in writing of the verification results and reasons.

Article 31    Under any of the following circumstances, the Customs shall handle the formalities for the return of the property or rights used as guarantee in accordance with the law:

(1) the consignee of imported goods or the agent thereof has made supplementary declaration to the Customs in accordance with the provisions of the present Measures and submitted a valid proof of origin under the RCEP; or

(2) the verification results of the Customs are sufficient to determine the origin qualification and the country (region) of origin of the goods.

Article 32    Under any of the following circumstances, the tariff rate under the RCEP shall not apply to the imported goods:

(1) the consignee of imported goods or the agent thereof fails to apply the tariff rate under the RCEP in accordance with the provisions of Article 26 hereof or fails to make supplementary declaration in accordance with the provisions of Article 29 hereof before the customs formalities for the goods are completed;

(2) the goods do not qualify as originating;

(3) the proof of origin does not comply with the provisions of the present Measures;

(4) the goods listed in the proof of origin are inconsistent with the actually imported goods;

(5) within 90 days as of the date when the consignee of imported goods or the agent thereof, the overseas exporter or manufacturer, the issuing authorities or competent authorities of the exporting member receive the request for verification of origin, the Customs office receives no verification feedback, or the feedback is insufficient to determine the authenticity of the proof of origin, the origin qualification of the goods or the country (region) of origin;

(6) within 30 days as of the date when the exporting member or the overseas exporter or manufacturer receives the request for on-site verification, the Customs office receives no reply, or the request for on-site verification is rejected; or

(7) the consignee of imported goods or the agent thereof commits any other act in violation of the relevant provisions of the present Measures.

Chapter V Procedures for the Issuance of Export Certificates

Article 33    Consignors of exported goods and their agents, domestic manufacturers which have completed record-filing formalities for enterprises at the place of origin and their agents (hereinafter referred to collectively as the "applicants") may apply to the Chinese issuing authorities for the issuance of a certificate of origin.

Article 34    An applicant shall apply for the issuance of a certificate of origin prior to shipment of goods and submit materials to prove the origin qualification and the country (region) of origin simultaneously. The applicant shall be responsible for the veracity, integrity and accuracy of the materials submitted.

The applicant applying for a back-to-back certificate of origin shall also submit the original copy of the initial proof of origin.

Article 35    The issuing authorities shall examine the materials submitted by an applicant and issue a certificate of origin if the application complies with the provisions of the present Measures; where the application fails to do so, the issuing authorities shall decide not to issue a certificate of origin and notify the applicant in writing and state the reason.

The issuing authorities may verify the origin qualification and the country (region) of origin of the goods through the following methods during the examination:

(1) requiring the applicant to provide supplementary information and materials relating to the origin qualification and the country (region) of origin of the goods;

(2) verifying the origin qualification and country (region) of origin of the manufacturing equipment, processing workflow, raw materials and spare parts of the exports as well as the manual, packaging, trademark, shipping mark and origin mark of the exports on the spot; and

(3) inspecting and making copies of the relevant contracts, invoices, account books and other relevant materials.

Article 36    Where an applicant fails to apply to the issuing authority for the issuance of a certificate of origin prior to shipment due to negligence or any other reasonable cause, it may apply to the issuing authority for a replacement within one year from the date of shipment.

Article 37    Where there is an error in the information stated in a certificate of origin or there is a need to supplement information, an applicant may present the original copy of the certificate of origin to apply to the original issuing authority for correction within one year from the date of issuance of the certificate of origin. The issuing authority may make correction in the following methods:

(1) making correction to the certificate of origin and affixing signature and seal at the correction; or

(2) issuing a new certificate of origin and invalidating the original certificate of origin.

Article 38    Where the original copy of an issued certificate of origin is lost or damaged, an applicant may apply to the original issuing authority for a certified duplicate copy of the certificate of origin within one year from the date of issuance of the certificate of origin.

Article 39    An approved exporter may issue a declaration of origin for the originating goods exported or produced by it pursuant to the provisions of the present Measures.

The Customs shall implement administration of approved exporters pursuant to the Administrative Measures of the Customs of the People's Republic of China on Approved Exporters.

Article 40    The Customs may, at the request of an importing member, verify the origin of exports through the following methods:

(1) requiring the applicant to provide supplementary information and materials relating to the origin qualification and the country (region) of origin of the goods;

(2) verifying the origin qualification and country (region) of origin of the manufacturing equipment, processing workflow, raw materials and spare parts of the exports, as well as the manual, packaging, trademark, shipping mark and origin mark of the exports on site; and

(3) inspecting and copying the relevant contracts, invoices, account books and other relevant materials.

Chapter VI Supplementary Provisions

Article 41    Consignors and manufacturers of the exported goods that apply for a certificate of origin and approved exporters that issue a declaration of origin shall, within 3 years as of the date of issuance of the certificate of origin, keep the documentary records that can sufficiently prove the origin qualification and the country (region) of origin of the goods.

Consignees of imported goods to which the tariff rates under the RCEP are applicable shall keep documentary records which can adequately prove the origin qualification and country (region) of origin of the goods within 3 years from the date of completion of Customs formalities for the goods.

The issuing authorities shall keep the application materials for a certificate of origin within 3 years from the date of issuance of the certificate of origin.

The aforesaid documentary records may be kept in electronic or hard copy form.

Article 42    The following terms used in these Measures shall be defined as follows:

(1) "exporting member" and "importing member" shall refer to the members where the goods are declared for export and import respectively;

(2) "production" refers to the method of obtaining the goods, including planting, exploiting, harvesting, farming, cultivation, breeding, extraction, collection, gathering, capturing, fishing, aquaculture, trapping, hunting, manufacturing, processing or assembly of the goods;

(3) "originating materials" refer to the materials possessing the origin qualification in accordance with the provisions of these Measures;

(4) "non-originating materials" refer to the materials not possessing the origin qualification in accordance with the provisions of these Measures;

(5) "right to exploit" refers to the right of members to obtain the fishery resources of coastal states in accordance with agreements or arrangements entered into with such states;

(6) "factory ship of a member" or "vessel of a member" means a factory ship or a vessel registered in a member and entitled to fly the flag of that member, respectively; but any factory ship or vessel operating in the exclusive economic zone of Australia that falls within the definition of "Australian boat" under the Fisheries Management Act 1991 (Commonwealth) or any successor legislation shall be deemed as an Australian factory ship or vessel, respectively;

(7) "WTO Agreement on Customs Valuation" refers to the Agreement on Implementation of Article 7 of the General Agreement on Tariffs and Trade 1994;

(8) "generally accepted accounting principles" refer to the accounting standards generally accepted by a member or officially recognised in respect of the recording of income, expenses, costs, assets and liabilities, information disclosure and preparation of financial statements, including generally applicable broad guidelines as well as detailed standards, practices and procedures;

(9) "issuing authorities" refer to the authorities designated or authorised by a member to issue a certificate of origin and have been notified to other members in accordance with the provisions of the RCEP. Customs directly under the GACC, subordinate Customs, China Council for the Promotion of International Trade and its branches are the issuing authorities of China; and

(10) "competent authorities" refer to one or more government authorities designated by a member and notified to other members in accordance with the provisions of the RCEP.

Article 43    The GACC shall be responsible for interpretation of these Measures.

Article 44    These Measures shall come into force on 1 January 2022.