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Announcement of the General Administration of Customs [2024] No. 46 (Announcement on Promulgating the Administrative Measures for the Origin of Imported and Exported Goods under the Free Trade Agreement with the Government of the Republic of Ecuador)

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Announcement of the General Administration of Customs [2024] No. 46 (Announcement on Promulgating the Administrative Measures for the Origin of Imported and Exported Goods under the Free Trade Agreement with the Government of the Republic of Ecuador)

In order to correctly determine the origin of imported and exported goods under the Free Trade Agreement between the Government of the People's Republic of China and the Government of the Republic of Ecuador (hereinafter referred to as the "Agreement") and to promote economic and trade exchanges between the mainland and Ecuador, the General Administration of Customs has formulated the Administrative Measures of the Customs of the People's Republic of China on the Country of Origin of Imported and Exported Goods under the Free Trade Agreement between the Government of the People's Republic of China and the Government of the Republic of Ecuador, which is hereby promulgated.

If the consignee of imported goods or its agent applies for the tax rate under the Agreement when the goods are imported, it shall fill in the Customs Declaration Form of the Customs of the People's Republic of China for Imported Goods and submit the documents of origin in accordance with the relevant requirements of Announcement No. 34 of the General Administration of Customs [2021] on "Imported Goods under Preferential Trade Agreements for which Electronic Exchange of Origin Information Has Not Yet Realized", and fill in the "Preferential Trade Agreement Code" column when filling in the column of "Preferential Trade Agreement Benefits" for the commodity item.

Certificates of origin under the Agreement are self-printable.

The announcement is hereby made.

Customs

April 28, 2024

Measures of the Customs of the People's Republic of China on the Administration of the Origin of Imported and Exported Goods under the Free Trade Agreement between the Government of the People's Republic of China and the Government of the Republic of Ecuador

Article 1 These Measures are formulated in accordance with the Customs Law of the People's Republic of China, the Regulations of the People's Republic of China on the Origin of Import and Export Goods and the provisions of the Agreement in order to correctly determine the origin of import and export goods under the Free Trade Agreement between the Government of the People's Republic of China and the Government of the Republic of Ecuador (hereinafter referred to as the "Agreement") and to promote economic and trade exchanges between the mainland and Ecuador.

Article 2 These Measures shall apply to the administration of the origin of imported and exported goods under the Agreement.

Article 3 Goods that meet one of the following conditions are goods of origin under the Agreement (hereinafter referred to as "Originating Goods") and have the qualification of origin under the Agreement (hereinafter referred to as "Origin Qualifications"):

(1) wholly obtained or produced in China or Ecuador;

(2) In China or Ecuador, it is produced only using original materials that comply with the provisions of these Measures;

(3) Produced in China or Ecuador using non-originating materials:

1. It falls within the scope of application of the Product Specific Rules of Origin (hereinafter referred to as the "Specific Rules", see Annex 1) and complies with the corresponding tariff classification changes or other provisions;

2. It does not fall within the scope of application of the Specific Rules, but meets the requirements of not less than 40% of the regional value content calculated by the formula listed in Article 5 of these Measures;

In the event of any change in the specific rules of origin of products under the Agreement as set out in the Specific Rules, the General Administration of Customs shall make a separate announcement.

Article 4 The term "wholly obtained or produced in China or Ecuador" as mentioned in Article 3 of these Measures refers to:

(1) Live animals born and raised in China or Ecuador;

(b) goods obtained in China or Ecuador from live animals referred to in subparagraph (a) of this Article;

(3) Plants and plant products planted, harvested, picked or collected in China or Ecuador;

(4) goods obtained in China or Ecuador through hunting, trapping, fishing, aquaculture, gathering or capture;

(e) minerals and other naturally occurring substances not included in subparagraphs (a) to (iv) of this Article, extracted or obtained from the soil, waters, seabed or subsoil beneath the seabed of China or Ecuador;

(f) goods extracted from waters other than the waters adjacent to China or Ecuador, the seabed or the subsoil under the seabed, provided that that Party has the right under international law and its domestic law to exploit such waters, seabed or seabed subsoil;

(7) fish and other marine products obtained by vessels registered in China or Ecuador and flying the flag of that Side;

(8) goods processed or made solely from the goods referred to in subparagraph (7) of this Article on a processing vessel registered in China or Ecuador and flying the flag of that Party;

(9) Waste and scrap materials produced during processing in China or Ecuador that are only suitable for the recovery of raw materials;

(10) Used goods that are only applicable to the recycling of raw materials consumed and collected in China or Ecuador;

(11) Goods produced in China or Ecuador solely from the goods referred to in subparagraphs (1) to (10) of this Article.

Article 5 The "regional value component" provided for in Article 3 (3) of these Measures shall be calculated according to the following formula:

Regional Value Component = (FOB – Non-Originating Material Price) / FOB * 100%

Among them, "price of non-originating materials" refers to the import cost of non-originating materials, freight and insurance costs of transporting them to the port or place of destination determined in accordance with the WTO Valuation Agreement, including the price of materials of unknown origin. When non-originating materials are acquired in China or Ecuador, the transaction price determined in accordance with the WTO Valuation Agreement shall be the actual or payable price for the non-originating materials as first determined in China or Ecuador, excluding freight, insurance, packaging and any other costs for transporting the non-originating materials from the supplier's warehouse to the manufacturer's location.

The price of non-originating materials does not include the price of non-originating materials used in the production process for the production of raw materials for the purpose of calculating the regional value content of goods in accordance with paragraph 1 of this article.

Article 6 For goods subject to the requirements of the change in tariff classification stipulated in the Specific Rules to determine the qualification of origin, and the non-originating materials (including materials of unknown origin) used in the production process that do not meet the requirements of the change in tariff classification, the price determined in accordance with Article 5 of these Measures shall not exceed 10% of the FOB price of the goods, and all other provisions of these Measures shall be regarded as originating goods.

Article 7 Where a material originating in China or Ecuador is used in the production of another good in the other side, the material shall be deemed to be the original material of the other side.

Article 8 Goods that meet the provisions of Article 3 (3) of these Measures, if the non-originating materials used in production have only been processed or processed by one or more of the following, the goods do not have the qualification of origin:

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

(2) Simply assembling parts into a complete finished product, or disassembling the product into parts;

(3) Packaging, unpacking or repackaging for the purpose of sale or display;

(4) animal slaughter;

(5) Washing, cleaning, dust removal, oxide removal, degreasing, paint removal and removal of other coatings;

(6) Ironing or flattening of textiles;

(7) Simple painting and polishing operations;

(8) Hulling, partial or total bleaching, polishing and glazing of grains and rice;

(9) The operation of coloring sugar or processing it into sugar cubes;

(10) peeling, pitting and hulling of fruits, nuts and vegetables;

(11) sharpening, simple grinding or simple cutting;

(12) filtering, screening, selecting, classifying, grading, matching (including the combination of complete sets of articles), cutting, slitting, bending, winding or unfolding;

(13) Simple bottling, canning, jugting, bagging, boxing or boxing, fixing on cardboard or wood boards and other simple packaging operations;

(14) pasting or printing marks, labels, logos or other similar distinguishing marks on products or their packaging;

(xv) simple mixing of different kinds of products, whether or not they are of different kinds;

(16) It is only diluted with water or other substances without substantially changing the characteristics of the goods;

(17) Processes that are only for the purpose of facilitating port operations.

Article 9 Interchangeable materials shall be distinguished by one of the following methods to determine their qualifications of origin:

(1) Physical separation;

(ii) Inventory management methods recognized by the exporter's generally accepted accounting principles and used for at least 12 consecutive months.

Article 10 The following goods used in the process of production, testing or inspection of goods that do not form part of the goods shall be regarded as originating materials:

(1) Fuels, energy, catalysts and solvents;

(2) Plant, equipment and machinery, including equipment and supplies used for testing or inspecting goods;

(3) Gloves, glasses, shoes, clothing, safety equipment and supplies;

(4) Tools, molds and models;

(5) spare parts and materials for the maintenance of equipment and buildings;

(6) Lubricants, oils (greases), synthetic materials and other materials used in production or used in equipment operation and building maintenance;

(7) Other materials that can be reasonably proved to be used for production.

Article 11 The following packaging materials and containers do not affect the determination of the qualification of origin of the goods:

(1) Containers and packaging materials used for the transportation of goods;

(2) Containers and packaging materials for retail use that are classified together with the goods.

If the applicable regional value content of the goods requires the determination of the qualification of origin, the price of packaging materials and containers for retail use classified together with the goods shall be included in the price of the originating materials or non-originating materials when calculating the regional value content of the goods.

Article 12 The attachments, spare parts, tools and explanatory materials that are declared for import together with the goods, classified together in the Import and Export Tariff of the People's Republic of China (hereinafter referred to as the "Tariff") and not separately invoiced, shall not affect the determination of the qualification of origin of the goods.

Where the goods are subject to the regional value content standard to determine the origin qualification, the prices of the accessories, spare parts, tools and explanatory materials listed in the preceding paragraph shall be included in the price of the originating materials or non-originating materials when calculating the regional value components of the goods.

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

Article 13 For a set of goods as defined in General Rules 3 of the Tariff Classification, if all its components are originating, the set of goods shall be deemed to be originating. When the set of goods is composed of originating and non-originating products, if the value of the non-originating goods determined in accordance with Article 5 (Regional Value Component) of these Measures does not exceed 15% of the total value of the package, the set of goods shall still be regarded as originating.

Article 14 Goods of origin transported from the exporter to the importer shall retain their qualifications of origin if one of the following conditions is met:

(1) Not passing through other countries (regions);

(2) Passing through other countries (regions), except for the change of means of transport, the following conditions are met:

1. The goods pass through these countries or regions only due to geographical reasons or transportation needs;

2. The goods have not been processed in any way other than loading and unloading or handling to keep the goods in good condition;

3. Temporary storage not more than 6 months;

4. The goods are always under customs supervision when they are transshipped in these countries or regions.

Article 15 The certificate of origin under the Agreement shall comply with the following provisions:

(A) the listed goods have the origin of the qualifications described in these measures;

(2) Issued by a Chinese or Ecuadorian visa authority;

(3) Have a unique certificate number;

(4) One or more of the listed goods are goods of the same batch;

(5) Indicate the basis on which the goods have the qualifications of origin;

(6) The seal and signature of the visa authority of the certificate of origin are consistent with the sample notified by the exporter to the importer;

(vii) Completed in English and in accordance with the format listed in the "Format of Certificate of Origin" (see Annex 2).

Article 16 The certificate of origin shall be issued before or at the time of shipment of the goods, and shall be valid for one year from the date of issuance by the exporter.

If the Certificate of Origin is not issued before or at the time of shipment of the goods due to force majeure, unintentional error, negligence or other reasonable causes, the Certificate of Origin may be reissued within 1 year from the date of shipment of the goods. THE REISSUED CERTIFICATE OF ORIGIN SHALL BE MARKED "ISSUED RETROSPECTIVELY" AND SHALL BE VALID FOR ONE YEAR FROM THE DATE OF SHIPMENT.

Article 17 In the event of theft, loss or accidental damage to the Certificate of Origin, the exporter or producer may apply in writing to the visa authority of the exporter for the issuance of an approved copy of the Certificate of Origin. The approved copy of the Certificate of Origin shall be marked with the words "CERTIFIED TRUE COPY of the original Certificate of Origin number ___ dated ___" and shall be valid for the same period as the original Certificate of Origin.

Article 18 The tax rate under the Agreement may be applied to imported goods with the qualification of origin.

Article 19 Where the consignee of imported goods or its agent applies for the application of the tax rate under the Agreement for the imported goods, it shall make a declaration in accordance with the relevant provisions of the General Administration of Customs and handle it with the following documents:

(A) in accordance with the provisions of these measures certificate of origin;

(2) Commercial invoices for goods;

(3) The whole transport document of the goods.

If the goods are transported to China through other countries (regions), the certification documents issued by the customs of other countries or regions or other certification documents recognized by the customs shall also be submitted.

If the transport documents referred to in subparagraph (c) of the first paragraph of this Article submitted by the consignee of imported goods or its agent can meet the relevant provisions on direct transportation, it is not necessary to submit the supporting documents referred to in the second paragraph of this Article.

Article 20 When declaring to the Customs for goods originating in Ecuador under the Agreement, if the consignee of the imported goods or its agent fails to obtain a valid certificate of origin under the Agreement before completing the customs formalities, it shall make a supplementary declaration to the Customs on whether the goods have the qualification of origin before the customs formalities are completed (see Annex 3 for the format), unless otherwise stipulated by the General Administration of Customs.

Where the consignee of the imported goods or its agent makes a supplementary declaration to the Customs in accordance with the provisions of the preceding paragraph regarding the qualification of origin of the imported goods and provides a tax guarantee, the Customs shall handle the import formalities in accordance with the law, except for the circumstances in which the guarantee shall not be handled in accordance with the provisions of laws and administrative regulations. If a tax guarantee equivalent to the maximum total amount of tax that may be borne by the goods has been submitted due to early release or other reasons, it shall be deemed to comply with the provisions of this paragraph on the provision of tax security.

Article 21 In order to determine the authenticity and accuracy of the certificate of origin, to determine the qualification of origin of the imported and exported goods, or to determine whether the imported and exported goods meet other requirements stipulated in these Measures, the Customs may carry out verification of the country of origin in the following ways:

(1) Requiring the consignee of the imported goods or its agent to provide supplementary information;

(2) Request the relevant competent authority of Ecuador to verify the authenticity of the certificate of origin and the qualification of origin of the goods, and if necessary, provide relevant information about the exporter or producer and the goods;

(3) Conduct verification visits to the exporter.

During the verification period, the Customs may apply for the release of the consignee of the imported goods or its agent, unless otherwise provided by laws and regulations.

Article 22 Under any of the following circumstances, the consignee of imported goods or its agent may apply to the Customs for the release of the tax guarantee within the guarantee period approved by the Customs:

(1) The consignee of the imported goods or its agent has made a supplementary declaration to the Customs in accordance with the provisions of these Measures and submitted a valid certificate of origin under the Agreement;

(2) The verification procedures for the country of origin have been completed in accordance with the provisions of these Measures, and the verification results are sufficient to determine the qualification of the origin of the goods.

Article 23 Under any of the following circumstances, the tax rate under the Agreement shall not apply to imported goods:

(1) The consignee of the imported goods or its agent fails to apply for the application of the tax rate under the Agreement in accordance with the provisions of Articles 18 and 19 of these Measures before the goods go through customs formalities, nor does it make a supplementary declaration in accordance with the provisions of Article 20 of these Measures;

(2) the goods do not have the Ecuadorian origin qualification;

(C) the certificate of origin does not comply with the provisions of these measures;

(4) The goods listed in the certificate of origin are inconsistent with the actual imported goods;

(5) Within 6 months from the date on which the visa authority or competent authority of the exporter receives the request for verification of origin, the Customs does not receive the verification feedback, or the feedback result is insufficient to determine the authenticity of the certificate of origin and the qualification of the origin of the goods;

(6) The consignee of the imported goods or its agent has other acts in violation of the relevant provisions of these Measures.

Article 24 Consignors of export goods and their agents, domestic producers and their agents (hereinafter referred to as "applicants") may apply to the mainland visa authorities for the issuance of a certificate of origin.

Article 25 The applicant shall apply for the issuance of a certificate of origin before or at the time of shipment of the goods, and submit materials proving the qualification of origin of the goods. The applicant shall be responsible for the authenticity, completeness and accuracy of the materials submitted.

Article 26 The visa authority shall examine the materials submitted by the applicant and issue a certificate of origin if it meets the requirements of these Measures;

The visa authority can verify the origin of the goods in the following ways:

(1) Require the applicant to provide additional information and materials related to the qualification of origin of the goods;

(2) On-the-spot verification of the production equipment, processing procedures, origin qualifications of raw materials and parts and components, the country (region) of origin, as well as the instructions, packaging, trademarks, marks and marks of origin of the exported goods;

(3) Consult and copy relevant contracts, invoices, account books and other relevant materials.

Article 27 Customs may verify the origin of exported goods in the following ways:

(1) Require the applicant to provide additional information and materials related to the qualification of origin of the goods;

(2) On-the-spot verification of the production equipment, processing procedures, origin qualifications of raw materials and parts and components, the country (region) of origin, as well as the instructions, packaging, trademarks, marks and marks of origin of the exported goods;

(3) Consult and copy relevant contracts, invoices, account books and other relevant materials.

Article 28 When declaring export goods, the consignor of the export goods and its agent shall, in accordance with the declaration regulations of the Customs, fill in the Customs Declaration Form for Export Goods of the People's Republic of China.

Article 29 The consignor and the manufacturer of export goods applying for a certificate of origin shall, within three years from the date of issuance of the certificate of origin, keep documents and records that can fully prove the qualification of origin of the goods.

The consignee of the imported goods subject to the tax rates under the Agreement shall keep the documents and records that can fully prove the qualification of the origin of the goods for a period of three years from the date on which the goods have completed the customs formalities.

The visa authority shall keep a copy of the certificate of origin and other relevant application materials for three years from the date of issuance of the certificate of origin.

These documents may be kept in electronic or paper form.

Article 30 The meaning of the following terms in these Measures:

(1) The exporter and the importer refer to the member party where the goods are declared for export and import, respectively;

(2) "Issuing authority" means an institution designated or authorized by a member to issue a certificate of origin and which has been notified to the other member in accordance with the provisions of the Agreement. Directly under the customs, subordinate customs, China Council for the Promotion of International Trade and its local branches are mainland visa agencies;

3. "Competent authority" means one or more government agencies designated by a Member and notified to the other Member in accordance with the provisions of the Agreement. The General Administration of Customs is the competent authority in mainland China;

(4) "WTO Valuation Agreement" means the Agreement on the Implementation of Article VII of the 1994 GATT;

(5) CIF refers to the price of imported goods, including insurance premiums and freight charges at the port or place of entry of the importing side;

(6) FOB price refers to the free on board price, including the cost of transportation of the goods to the final port or place of departure;

(7) Generally accepted accounting standards (GAAP) refer to accounting standards generally accepted or officially recognized by a member for recording income, expenses, costs, assets and liabilities, information disclosure, and preparation of financial statements, including generally applicable broad guiding principles and detailed standards, practices and procedures;

(8) "Goods" means any commodity, product, article or material;

(9) "Material" means a component, part, component, semi-assembled part, and/or a product that forms an integral part of another product in physical form or has been used in the production process of another product;

(10) Non-originating materials or non-originating goods refer to materials or goods that do not have the qualification of origin in accordance with the provisions of these Measures;

(11) Originating materials or originating goods refer to materials or goods that have the qualification of origin in accordance with the provisions of these Measures;

(12) "Interchangeable materials" refers to materials that are interchangeable for commercial purposes, are substantially the same in nature, and cannot be distinguished by superficial inspection alone;

(xiii) "product" means a product that is manufactured, even if it is intended for subsequent use in another production operation;

(14) "Production" means any method of obtaining goods, including but not limited to planting, raising, mining, harvesting, fishing, aquaculture, farming, trapping, hunting, capture, gathering, gathering, breeding, extraction, manufacturing, processing or assembly of goods;

(15) Aquaculture refers to the cultivation of aquatic organisms, including eggs, fry, insects and eggs

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