Scope and Legal Framework
- Based on the ASEAN Trade in Goods Agreement (ATIGA).
- Follows Articles 19, 21, 38 and Annexes 7 and 8 of ATIGA concerning preferential tariff treatment and Rules of Origin (ROO).
- Implements commitments under Executive Order No. 850 (s. 2009).
Self-Certification Scheme
- Certified Exporters can self-declare that their goods meet ATIGA ROO via invoice declaration instead of submitting Certificate of Origin (Form D).
- Eliminates need to present Certificate of Origin for tariff preferences when using self-certification.
Participating Member States
- The second pilot project includes the Philippines, Indonesia, and Lao PDR.
- Other ASEAN members may join subject to consent by current participants.
Obligations and Preferential Treatment
- Preferential tariff treatment must be accorded upon submission of either:
- Certificate of Origin (Form D); or
- Invoice Declaration by Certified Exporters.
Implementing Agency and Functions
- The Bureau of Customs (BOC) is the implementing agency in the Philippines.
- Responsible for granting, suspending, or revoking Certified Exporter status.
- Monitors proper use and verifies Invoice Declarations.
- Ensures compliance with pertinent laws related to export/import.
Procedural Arrangements
- Execution governed by modalities in the attached Annex of the MOU.
- Includes issuance and verification of Certificates of Origin and Invoice Declarations.
Rules and Definitions (Article 1 of MOU)
- Defines "ASEAN", "Participating Member States", "Exporter", "Importer", "Certified Exporter", "Invoice Declaration", and "Certificate of Origin".
Confidentiality and Data Protection
- Participating states must keep all exchanged information confidential.
- Prohibits unauthorized disclosure or use of confidential data.
- Confidentiality obligations survive suspension or termination of the MOU.
Suspension and Termination
- Each member reserves the right to suspend implementation for reasons such as national security or public health with prior notification.
- MOU remains in effect until all members agree to terminate.
Consultation and Dispute Resolution
- Differences or disputes to be resolved amicably through consultation or negotiation.
Amendment and Accession
- Amendments require unanimous written consent of all participating members.
- Non-participating ASEAN members may join with approval from current participants.
Operational Certification Procedures (Annex Highlights)
- Procedures cover issuance of Certificate of Origin (Form D), Certified Exporter regime, and Invoice Declarations.
- Verification includes retroactive checks and on-site visits if fraud is suspected.
- Certified Exporters must maintain records for at least 3 years.
Certified Exporter Authorization
- Exporters must apply and meet conditions to become Certified Exporters.
- Responsibilities include accurate declarations, record keeping, and acceptance of full liability.
Invoice Declaration Requirements
- Must include specific wording affirming goods meet ROO, authorized signatory signature, and sufficient product detail.
Validity and Use
- Certificates and Invoice Declarations valid for 12 months from issuance.
- Accepts simplified declarations for goods under US$200 FOB.
- Minor typographical errors do not invalidate documents if origin is clear.
Verification and Fraud Prevention
- Importing states may request verification or conduct retroactive checks.
- Verification visits require prior notification and consent.
- Legal sanctions apply for fraudulent acts related to certificates or declarations.
Record-Keeping and Documentation
- Exporters and authorities must retain relevant documents for at least 3 years.
- Information exchanged for verification must be treated confidentially.
Special Provisions
- Allows back-to-back certificates for intermediate exporting states.
- Provides rules for direct consignment, exhibition goods, and third-country invoicing.
Effectivity and Implementation
- Executive Order takes effect upon publication and lasts until MOU termination.
- BOC to issue Customs Administrative Orders consistent with this system.