RCEP Principles of origin and application

RCEP Principles of origin and application

RCEP was launched by the 10 ASEAN countries in 2012, and currently includes 15 countries including Indonesia, Malaysia, the Philippines, Thailand, Singapore, Brunei, Cambodia, Laos, Myanmar, Vietnam and China, Japan, South Korea, Australia and New Zealand. The free trade agreement aims to create a single market by reducing tariff and non-tariff barriers, and implement zero tariffs on products of origin traded among the aforementioned member countries, so as to better promote the closer trade of goods between the member countries.

Principle of origin：

The term “goods of origin” under the Agreement includes both “goods wholly acquired or produced in a Member” or “goods wholly produced in a Member using materials of origin originating from one or more Member” and special cases “goods manufactured in a Member using materials other than origin, subject to the specific rules of origin of the product”.

The first category is wholly acquired or produced goods, including the following:

1. Plants and plant goods, including fruits, flowers, vegetables, trees, seaweed, fungi and live plants, grown, harvested, picked or collected in the Party

(2) Live animals born and raised in the Contracting Party

3. Goods obtained from live animals kept in the Contracting Party

(4) Goods directly acquired in that Party by hunting, trapping, fishing, farming, aquaculture, gathering or capture

(5) Minerals and other naturally occurring substances not included in subparagraphs (1) to (4) extracted or obtained from the soil, waters, seabed or seabed subsoil of the Party

(6) Marine catch and other Marine life taken by vessels of that Party in accordance with international law from the high seas or the exclusive economic zone to which that Party has the right to develop

(7) Goods not included in subparagraph (vi) obtained by the Party or a person of the Party from waters outside the territorial sea of the Party, the seabed or the subsoil of the seabed in accordance with international law

(8) Goods processed or manufactured on the processing vessel of the Contracting Party exclusively using the goods referred to in subparagraphs (6) and (7)

9. Goods that meet the following conditions:

(1) Waste and debris generated in the production or consumption of that Party and suitable only for disposal or recovery of raw materials; perhaps

(2) Used goods collected in that Contracting Party which are suitable only for waste disposal, recovery of raw materials or recycling; and

10. Goods obtained or produced in the Member only using the goods listed in subparagraphs (1) to (9) or their derivatives.

The second category is goods produced using only original materials:

This kind of goods is a certain depth of the industrial chain (upstream raw materials → intermediate products → downstream finished products), the production process needs to invest in the processing of intermediate products. If the raw materials and components used in the production of the final product are RCEP origin eligible, then the final product will also be RCEP origin eligible. These raw materials or components can use non-origin ingredients from outside the RCEP area in their own production process, and as long as they are eligible for RCEP origin under the RCEP rules of origin, goods produced entirely from them will also be eligible for RCEP origin.

The third category is goods produced with materials other than those of origin:

The RCEP sets out a list of product-specific rules of origin detailing the rules of origin that should apply for each type of goods (for each subitem). The product-specific rules of origin set out in the form of a list of origin standards applicable to the production of non-origin materials for all goods listed in the tariff code, mainly including single criteria such as changes in tariff classification, regional value components, processing procedure standards, and selective criteria consisting of two or more of the above criteria.

All products exported by HEALTHSMILE Medical Technology Co., Ltd. provide certificates of origin to help our partners reduce procurement costs and achieve win-win cooperation.