EO 142: ASEAN Regional Self-Certification System

Policy objectives and self-certification design

EO 142 implements the MOU on the Second Pilot Project to introduce a regional self-certification system within the AFTA, in preparation for an ASEAN-wide self-certification system by 2015 (Section 1).
Under the self-certification scheme, claiming tariff preferences no longer requires presentation of Certificate of Origin (Form D) because Certified Exporters self-declare product origin by making the declaration on the commercial invoice (Section 2).
Preferential tariff treatment is linked to either submission of Form D or an Invoice Declaration by a Certified Exporter, following the MOU Annex modalities and applicable Bureau of Customs (BOC) regulations (Sections 2, 4).

Coverage and substantive preferential treatment rules

EO 142 requires the Philippines to accord preferential tariff treatment under Article 19 of ATIGA to goods originating from other participating Member States during implementation of the second pilot project (Section 4; also Article 3 of the MOU).
The Philippines must grant the preferential treatment upon submission of either (a) Certificate of Origin (Form D) or (b) an Invoice Declaration made by a Certified Exporter in accordance with the MOU Annex and BOC regulations (Section 4; Article 3 of the MOU).
The MOU’s pilot project is carried out within the AFTA among the Participating Member States (Article 2 and Article 3 of the MOU).
Preferential treatment is maintained only in accordance with the origin determination and verification system established under the MOU Annex procedures (Annex Rules 3–14, 18–20).

Implementing agency, authority functions, and customs administrative order

The BOC is the implementing agency for the MOU on the Second Pilot Project (Section 5).
The BOC must grant, suspend, or revoke Certified Exporter status, subject to qualifications/criteria/conditions it may impose (Section 5(a)).
The BOC must monitor proper use of Certified Exporter status, including verification of the authenticity and validity of Invoice Declarations (Section 5(b)).
The BOC must monitor compliance by Certified Exporters with laws, rules, and regulations pertinent to exportation and importation (Section 5(c)).
The BOC must perform other appropriate functions consistent with implementation of the MOU (Section 5(d)).
BOC must issue a Customs Administrative Order after consultations with relevant stakeholders to operationalize the pilot project domestically (Section 5).

Incorporation of ATIGA linkage and Form D alternatives

Preferential treatment under the pilot requires the origin products to satisfy ATIGA Rules of Origin (ROO) and the Operational Certification Procedure (OCP) modalities (EO 142 recitals; Annex).
Form D (Certificate of Origin) operates as the certification instrument under the ATIGA framework (MOU definitions, including “Certificate of Origin” and Annex Rule 7).
The self-certification pathway replaces reliance on Form D presentation for tariff preference claims by allowing Certified Exporters to issue Invoice Declarations on invoices (EO 142 Section 2; MOU definition of Invoice Declaration and Annex Rule 12B).
Customs presentation for preferential tariff treatment permits submission of either a Form D with supporting invoices or an Invoice Declaration by a Certified Exporter (Annex Rule 13(1)).

MOU definitions and key terms

“ASEAN” means the Association of Southeast Asian Nations comprising Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Viet Nam (MOU Article 1(1)).
“Participating Member States” are the Member States that agreed to participate in the second pilot project for the regional self-certification scheme (MOU Article 1(2)).
“Exporter” means a natural or juridical person located in a territory of a Participating Member State from whose territory a good is exported (MOU Article 1(3)).
“Importer” means a natural or juridical person located in a territory of a Participating Member State into which a good is imported (MOU Article 1(4)).
“Certified Exporter” means a producer duly authorized to make invoice declarations on the origin of a good exported (MOU Article 1(5)).
“Invoice Declaration” means a declaration as to the origin of exported goods made by a certified exporter on an invoice in accordance with Rule 12B of the MOU Annex (MOU Article 1(6)).
“Certificate of Origin” means Certificate of Origin (Form D) under Article 38 and Annex 7 of ATIGA (MOU Article 1(7)).
The Annex defines additional procedural terms including “competent authority” as the designated government authority responsible for issuing Form D, authorizing certified exporters, and exercising specified rights under the ATIGA rules referenced in the Annex (Annex Rule 1(f)).

Form D requirements and invoice declaration content

Form D must be made on ISO A4 size white paper conforming to the Annex 7 specimen and must be in the English language (Annex Rule 7(1)).
Each Form D consists of one (1) original and two (2) carbon copies: Duplicate and Triplicate (Annex Rule 7(2)).
Each Form D must bear a reference number separately given by each issuing place or office (Annex Rule 7(3)).
Each Form D must bear the manually executed signature and seal of the authorized competent authority (Annex Rule 7(4)).
The original is forwarded by the exporter to the importer for customs submission, the duplicate is retained by the competent authority, and the triplicate is retained by the exporter (Annex Rule 7(5)).
A Form D must indicate the relevant origin criterion in Box 8 (Annex Rule 8).
Neither erasures nor superimpositions are allowed; alterations must be made by authorized strikeout and certified approval or by issuance of a new Form D (Annex Rule 9).
A Certified Exporter’s Invoice Declaration must be placed on the invoice stating the exporter’s Certified Exporter Authorization Code and declaring that the products satisfy ATIGA ROO to be considered ASEAN Originating Products, including signature over the printed name of the authorized signatory (Annex Rule 12B(1)).
The invoice must describe goods in sufficient detail to identify them for origin determination (Annex Rule 12B(2)).
The invoice declaration must be signed by hand with the addition of the authorized signatory’s name (Annex Rule 12B(3)).
The date shown in the commercial invoice is treated as the issuance date of the Invoice Declaration (Annex Rule 12B(4)).

Issuance timing, retroactivity, and loss replacement

Form D is issued by competent authorities at the time of exportation or soon thereafter when products qualify as originating in the exporting Member State under the ASEAN ROO (Annex Rule 10(1)).
Retroactive issuance of Form D is allowed only in exceptional cases not issued at exportation or within three (3) days from the declared shipment date due to involuntary errors/omissions or other valid causes, and only up to one (1) year from the shipment date, marked “Issued Retroactively” (Annex Rule 10(2)).
In theft, loss, or destruction of Form D, the exporter may apply in writing for a certified true copy of the original and triplicate based on export documents endorsed “CERTIFIED TRUE COPY” in Box 12.
The certified true copy bears the date of issuance of the original Form D and must be issued no longer than one (1) year from the original Form D issuance date (Annex Rule 12).

Certified Exporter regime: authorization, duties, monitoring

Competent authorities may authorize an exporter who makes shipments under the Agreement to become a Certified Exporter to make Invoice Declarations on originating status (Annex Rule 12A(1)).
An exporter seeking authorization must apply in writing or electronically and must offer all guarantees necessary to verify the originating status of goods for which invoice declarations are issued (Annex Rule 12A(1)).
Competent authorities grant Certified Exporter status subject to conditions including access to records and premises for monitoring and verification during at least three years from making out the declaration, as required by domestic laws and regulations (Annex Rule 12A(2)(a)).
The Certified Exporter must ensure invoice declarations are made only for goods the exporter produces and for which it has appropriate documents proving origin status at the time of declaration (Annex Rule 12A(2)(b)).
The Certified Exporter must ensure responsible persons understand the Rules of Origin laid down in the Agreement (Annex Rule 12A(2)(c)).
Certified Exporters assume full responsibility for all invoice declarations including misuse (Annex Rule 12A(2)(d)).
Authorization is given in writing; competent authorities assign an authorization number that must be included in the Invoice Declaration (Annex Rule 12A(3)).
Competent authorities must communicate the authorization granted to the ASEAN Secretariat in conformity with Annex Rule 2(3) (Annex Rule 12A(3)).
Competent authorities monitor proper use of authorization and verify correctness of invoice declarations using risk-based frequency and depth, and act on retrospective verification requests from importing customs authorities (Annex Rule 12C).
Competent authorities may withdraw the authorization at any time if guarantees are no longer offered, conditions no longer fulfilled, or the authorization is abused, and withdrawal must be immediately communicated to the ASEAN Secretariat (Annex Rule 12D).

Annex OCP procedures: lists, records, and checks

Each Member State must provide to the ASEAN Secretariat in hard copy and soft copy formats the list of names, addresses, specimen signatures, and official seal specimens of its competent authorities; changes must be promptly provided similarly (Annex Rule 2(1)).
Competent authority seal/signature lists are updated annually; Form D issued by an official not included in the list is not honored by the receiving Member State (Annex Rule 2(2)).
Immediately after granting Certified Exporter status, each Member State communicates to the ASEAN Secretariat the company legal name, registration, location, authorized signatories (not exceeding three (3) persons), authorization code (with issuance and expiry dates), and the list of products authorized for invoice declarations; withdrawals or suspensions are communicated similarly (Annex Rule 2(3)).
The ASEAN Secretariat records Certified Exporters in a database consultable online by Member States; receiving Member States accept invoice declarations only from exporters and products included in the database (Annex Rule 2(4)).
Competent authorities may request supporting documentary evidence and carry out checks considered appropriate in line with their national laws (Annex Rule 3).
For issuance of Form D, the producer/exporter (other than a Certified Exporter) or its authorized representative may apply for pre-exportation examination of origin; the examination result accepted as supporting evidence to determine origin unless review is required periodically or when appropriate (Annex Rule 4(1)).
Self-declaration by the final manufacturer exporting qualifies as a basis for locally-procured materials when applying for issuance of Form D (Annex Rule 4(2)).
For applications for Form D, the exporter or authorized representative must submit a written application with supporting documents proving the products qualify for Form D issuance at the time of exporting for preferential treatment (Annex Rule 5(1)).
A Certified Exporter may apply for Form D at its discretion instead of making out invoice declarations (Annex Rule 5(2)).
Competent authorities examine each Form D application to ensure completion and signatures by authorized signatory, conformity of origin with ASEAN ROO, correspondence of statements to supporting evidence, correct descriptions/quantities/weights/package details, and separate qualification of multiple items (Annex Rule 6(a)–(e)).
Multiple items are allowed on the same Form D provided each item separately qualifies (Annex Rule 6(e)).

Validity periods, belated presentation, and preferential waiver thresholds

For claiming preferential tariff treatment, importers must submit to the importing customs authority at the time of import either (a) Form D with supporting documents (including invoices) or (b) an Invoice Declaration by a Certified Exporter (Annex Rule 13(1)).
If Form D is rejected, the Form D must be marked in Box 4 and returned by the original competent authority to the competent authority within a reasonable period not exceeding sixty (60) days; the competent authority must be notified of the grounds for denial of tariff preference (Annex Rule 13(2)).
If Form D is not accepted, the importing Member State should accept and consider clarifications by the exporting Member State’s competent authority and reassess whether the application can be accepted, requiring detailed and exhaustive clarifications addressing denial grounds (Annex Rule 13(3)).
Form D and Invoice Declarations are valid for twelve (12) months for origin certification purposes from the issuance date (or invoice declaration date) and must be submitted within that period (Annex Rule 14(a)).
If submitted after the submission period, the Form D or Invoice Declaration still must be accepted when failure resulted from force majeure or other valid causes beyond the control of the exporter (Annex Rule 14(b)).
In other cases of belated presentation, importing customs may accept provided goods were imported before expiration of the time limit (Annex Rule 14(c)).
Proof of origin is waived for consignments not exceeding US$ 200.00 FOB: production of Form D or an Invoice Declaration is waived, and customs accepts a simplified declaration by the exporter that the goods originated in the exporting Member State; goods sent through post not exceeding US$ 200.00 FOB are treated similarly (Annex Rule 15).

Handling discrepancies, classification differences, and multiple items

Minor discrepancies (such as typographical errors) between Form D/Invoice Declaration statements and import documents do not automatically invalidate the document if it is established that the document corresponds to the goods submitted, provided ASEAN origin is not in doubt (Annex Rule 16(1)).
When exporting and importing Member States have different tariff classifications for a good subject to preferential tariffs, goods are released at MFN rates or at the higher preferential rate, subject to compliance with applicable ROO; no penalty or other charges are imposed under the importing Member State’s relevant laws and regulations, and overpaid duty is refunded if applicable once classification differences are resolved (Annex Rule 16(2)).
A problem encountered with one item in a multiple-item Form D or Invoice Declaration does not affect or delay preferential treatment and customs clearance of the remaining items; problematic items can follow Rule 18(c) application (Annex Rule 16(3)).

Recordkeeping and confidentiality for verification

Exporters applying for Form D and Certified Exporters making invoice declarations must keep supporting records for at least three (3) years from the date of Form D issuance or invoice declaration-making, subject to exporting Member State laws (Annex Rule 17(1)).
Competent authorities retain applications for Form D and certified exporter authorization, and all related documents for at least three (3) years from issuance of certificate or granting of authorization (Annex Rule 17(2)).
Competent authority must furnish information on validity of Form D and correctness of invoice declarations upon request by the importing Member State (Annex Rule 17(3)).
Information communicated between Member States is treated as confidential and used only for validation of Form D and invoice declarations (Annex Rule 17(4)).
Member States must maintain confidentiality of classified business information collected during verification under Rules 18 and 19 according to their laws and protect it from disclosure that could prejudice the competitive position of the information provider; classified business information may be disclosed only to authorities responsible for administration and enforcement of origin determination (Annex Rule 20).
Participating Member States commit to confidentiality and secrecy of documents, information, and other data received from or supplied to other participating Member States and prohibit disclosure or use for other purposes without prior authorization; confidentiality bindings continue even if MOU is suspended or terminated (MOU Article 6).

Retroactive checks, verification visits, and timelines

The importing Member State may request a retroactive check from the exporting Member State’s competent authority at random and/or when there is reasonable doubt on authenticity or accuracy regarding true origin (Annex Rule 18).
Upon request, the exporting competent authority conducts a retroactive check on the producer/exporter’s cost statement based on current costs and prices within a six-month timeframe specified at the date of exportation (Annex Rule 18).
A retroactive check request must include the concerned Form D or invoice declaration and specify reasons and additional information suggesting inaccuracies, unless requested on a random basis (Annex Rule 18(a)).
The competent authority receiving the request must respond promptly and reply within ninety (90) days from receipt (Annex Rule 18(b)).
Import customs may suspend preferential treatment while awaiting results but may release goods subject to administrative measures when there is no import prohibition/restriction and no suspicion of fraud (Annex Rule 18(c)).
The competent authority must promptly transmit verification results to the importing Member State; the whole retroactive check process, including notification of origin determination, must be completed within one hundred and eighty (180) days, applying Rule 18(c) while awaiting results (Annex Rule 18(d)).
If not satisfied with retroactive results, the importing Member State may request verification visits in exceptional cases (Annex Rule 19).
Before a verification visit, the importing Member State must provide written notifications to the exporter/producer to be visited, the exporting competent authority, customs authority of where the visit occurs, and the importer (Annex Rule 19(a)(i)).
The written notification must be comprehensive, including notifying customs official name, exporter/producer name, proposed visit date, scope and references to subject goods, and names/designations of visiting officials (Annex Rule 19(a)(ii)).
The exporter/producer must consent in writing; if written consent is not obtained within thirty (30) days after notification receipt, the notifying Member State may deny preferential treatment for goods subject to the visit (Annex Rule 19(a)(iii) and (b)).
A verification visit may be postponed by the receiving competent authority, but any visit must occur within sixty (60) days from notification receipt or longer period if agreed (Annex Rule 19(c)).
The visiting Member State must provide a written determination to the exporter/producer and relevant competent authority on whether goods qualify as originating goods (Annex Rule 19(d)).
Any suspended preferential treatment must be reinstated upon the written determination that goods qualify as originating (Annex Rule 19(e)).
The exporter/producer has thirty (30) days from receipt of written determination to provide written comments or additional information; if goods are found non-originating, the final determination is communicated within thirty (30) days from receipt of comments/additional information (Annex Rule 19(f)).
The verification visit process (visit and determination and communication to competent authority) must be completed and communicated within a maximum of one hundred and eighty (180) days, with Rule 18(c) applied while awaiting results (Annex Rule 19(g)).

Other operational scenarios: loss/erroneous, direct consignment, exhibitions

Back-to-back Certificates of Origin may be issued by an intermediate Member State upon exporter application if a valid original Form D is presented (or its certified true copy when no original is presented), back-to-back contains some of the same information as the original with completion of every column, Box 9 FOB price reflects intermediate Member State FOB price, partial export shipments show partial export value and total re-exported quantity does not exceed the original certificate quantity, and verification rules applicable to back-to-back are likewise applied (Annex Rule 11(a)–(e)).
For erroneous Form D, corrections must be done by authorized alteration certification or replacement by a new certificate; unused spaces must be crossed out to prevent subsequent additions (Annex Rule 9(a)–(b)).
For direct consignment through non-Member State transit, the importing Member State requires specified documentation including a through Bill of Lading, Form D issued by exporting authorities or invoice declaration by a certified exporter established in exporting Member State, a copy of the original commercial invoice (where applicable), and supporting documents evidencing compliance with direct consignment requirements (Annex Rule 21(a)–(d)).
Exhibition goods sent for exhibition in another Member State and sold during or after exhibition for import into a Member State receive preferential treatment if ASEAN ROO requirements are met and importing government authorities are satisfied that goods were dispatched from exporting territory for exhibition, exhibited there, sold or transferred to a consignee in the importing Member State, and consigned during the exhibition or immediately thereafter in the state sent for exhibition (Annex Rule 22(1)(a)–(c)).
For exhibitions, the importing government authorities must be provided with Form D or, for certified exporters, the invoice declaration, and the exhibition name and address must be indicated; evidence may be provided by authorities of the exhibition country together with supporting documents prescribed in Rule 21(d) for product identification and exhibition conditions (Annex Rule 22(2)).
The exhibition rule applies to trade, agricultural, or crafts exhibitions, fairs, and similar shows or displays in shops/business premises for sale of foreign goods where goods remain under customs control during exhibition (Annex Rule 22(3)).

Accession, amendments, suspension, and dispute settlement

Participating Member States agree to introduce the second pilot project (MOU Article 2(1)).
Other ASEAN Member States may apply to become Participating Member States at any time, subject to the MOU’s accession rules (MOU Article 2(2); Article 9).
Each Participating Member State reserves the right to suspend temporarily implementation for reasons of national security, national interest, public order or public health, in whole or in part, taking effect immediately after written notification through diplomatic channels or the ASEAN Secretariat (MOU Article 5).
Differences or disputes among Participating Member States concerning interpretation, implementation, or application must be settled amicably through consultation and/or negotiation (MOU Article 7).
Amendments require proposal by a Participating Member State and written consent of all Participating Member States at the level of their representatives to the SEOM, with a certified true copy furnished to each Participating Member State (MOU Article 8(1)).
Amendments must not prejudice existing rights and obligations established before or up to the effective date of amendment, except by agreement of all Participating Member States (MOU Article 8(2)).
The amendment effective date is the date of written consent by all Participating Member States (MOU Article 8(3)).
Non-participating ASEAN Member States may accede subject to Participating Member States’ agreement at SEOM level; the MOU enters into force for acceding states upon deposit of instruments of ratification or letters of acceptance with the ASEAN Secretary-General, who promptly informs all Participating Member States (MOU Article 9).
The MOU is deposited with the ASEAN Secretary-General, who promptly furnishes a certified true copy to each Participating Member State (MOU Article 10(1)).
The MOU is subject to ratification or acceptance by all Participating Member States; instruments are deposited with the ASEAN Secretary-General (MOU Article 10(2)).
The MOU enters into force upon deposit of instruments by all Participating Member States (MOU Article 10(3)).
The MOU remains in force unless terminated by all Participating Member States (MOU Article 10(4)).
Termination requires written agreement of all Participating Member States and does not prejudice rights and obligations established before or up to the effective date of termination except by agreement of all Participating Member States (MOU Article 10(5)).

Implementation limits, sanctions for fraud, and domestic legal consequences

Each Member State must provide legal sanctions for fraudulent acts related to Form D and Invoice Declarations (Annex Rule 24(2)).
When fraudulent acts in connection with Form D or the invoice declaration are suspected, concerned government authorities must cooperate in actions against persons involved under their respective Member States’ systems (Annex Rule 24(1)).

Repeal, separability, and duration of enforcement

EO 142 repeals, amends, or modifies all issuances, orders, rules and regulations, or parts thereof, that are inconsistent with the Order (Section 6).
If any provision of EO 142 is declared invalid or unconstitutional, the remaining provisions remain valid and subsisting (Section 7).
EO 142 remains in force until termination of the MOU on the Second Pilot Project (Section 8).