Free Trade Agreements

• A free trade agreement is an agreement between two or more nations to reduce barriers to imports and exports.
• Under a free trade policy, goods and services can be traded internationally with little or no government tariffs, quotas, subsidies, or prohibitions.

Kinds of Free Trade Agreements

• Unilateral agreements are commerce treaties a nation imposes without regard to others, benefiting only the imposing country and not open to negotiation.
• Example: Generalized System of Preference (Form A)
• Bilateral agreements are exchange agreements between two nations or trading groups that give each party favored trade status for certain goods, setting purchase guarantees, removing tariffs, and eliminating trade barriers.
• Example: Philippine-Japan Economic Partnership Agreement (Form JP), Free Trade Agreement Between EFTA States and the Philippines (PH-EFTA)
• Multilateral agreements are commerce treaties between three or more nations, reducing tariffs and facilitating import and export, but are difficult to negotiate due to the involvement of many countries.
• Example: ATIGA, ACFTA, AKFTA, AJCEP, AIFTA, AANZFTA, AHKFTA

Certificate of Origin (CO) Forms and Beneficiary Countries

• These forms may grant preferential tariff treatment.
• Certificate of Origin FORMS are available for members and beneficiary countries like Australia, Canada, Japan, New Zealand, and the United Kingdom.
• Form A is for exporters to the European Union not accepted anymore, they must apply as a REX Exporter under the Registered Exporter System (REX) per CMO-50-2019.
• Form JP is for trade between the Philippines and Japan.
• Origin Declaration (PH-EFTA) is for trade between the Philippines, Iceland, Liechtenstein, Norway, and Switzerland.
• Form D, E-Certificate of Origin/Origin Declaration covers Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam (10 ASEAN Member States).
• Form AANZ covers Australia, New Zealand, Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.
• Form E is for China, Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.
• Form AI is for India, Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.
• Form AHK relates to Hongkong, Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.
• Form AJ is for Japan, Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.
• Form AK covers Korea, Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.

Certificate of Origin Application

• For export products where the origin is not easily ascertained, the exporter must apply for pre-evaluation for every goods for export.
• Pre-evaluation of exporters and their products for the issuance of Certificate of Origin must be filed at the Export Coordination Division (ECD), Assessment and Operations Coordination Group (AOCG) for exports where the port of loading is Port of Manila (POM), Manila International Container Port (MICP), or the Ninoy Aquino International Airport (NAIA).
• Alternatively, it can be filed at the Export Division or equivalent unit where the port of loading is outside Metro Manila.
• The exporter or their representative must submit the application for pre-evaluation at least twenty (20) working days before the intended exportation.

Required Documents

• Exporters must submit an application for pre-evaluation with the following documents:
• A letter requesting to the Chief of the Export Coordination Division/Export Division, mentioning goods description, HS Code, CO Form, and destination country.
• Company profile.
• Cost of production analysis per product (in dollars).
• Manufacturing flowchart.
• A list of raw materials used.
• Plant visit, if deemed necessary

Application Review Process

• The ECD or Export Division/Unit reviews the documents and acts on the application within twenty-one (21) working days from receipt of complete documents and the evaluation may be extended for another ten (10) days if a plant visit is needed.
• Approved applications result in the ECD/Export Division generating and issuing a PER with the list of qualified products and the bases for such findings, with the original PER copy given to the Exporter through the port's CCC.
• Disapproved applications result in the ECD/Export Division informing the Exporter via message thread and uploading a PDF copy of the PER with the reason for disapproval.
• Once notified that the PER is available, the exporter may claim it at the Customer Care Center.
• Certificates of Origin can be purchased at the Cashier Division or the Customer Care Center of the concerned port.

CO Form RCEP Issuance

• Exporters, producers, or authorized representatives apply to the ECD or Export Division/Unit with these documents:
• Export Declaration.
• Commercial Invoice.
• Bill of lading/Airway bill.
• PER (if applicable).
• Other relevant permits (PCA, Phytosanitary certificate, FDA, etc.).
• The ECD or Export Division/Unit evaluates the CO Form and affixes the signature of the authorized signatory with the BOC seal upon approval.
• The signed CO Form with a unique CO number is transmitted to CCC for retrieval of the copies for exporter and importer.