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Ref: FRCP 1000/2/6
9 May 2019
Dear Sirs,
Certificate of Origin Circular No. 5/2019
Commercial Information Circular No. 353/2019
Certificate of Preference Circular No. 5/2019
Notice to Exporters :
Series 1 (USA) No. 5/2019
Series 2 (EU) No. 6/2019
Series 3 (Countries other than USA & EU) No. 5/2019
Textiles Trader Registration Circular No. 6/2019
ASEAN - Hong Kong, China Free Trade Agreement (AHKFTA)
Certificate of Hong Kong Origin - Form AHK (CO(Form AHK))
I. Introduction
Certificate of Origin Circular (CoC) No. 4/2019 issued on 9 May 2019 informed the trade of the rules of origin (ROOs) and related requirements which Hong Kong-origin goods must meet in order to enjoy the preferential tariff treatment under the ASEAN – Hong Kong, China Free Trade Agreement (AHKFTA) (Note 1). The commitments made under the Free Trade Agreement between Hong Kong and ASEAN amongst Hong Kong and three ASEAN Member States (AMS), namely Myanmar, Singapore and Thailand will enter into force on 11 June 2019. Goods of Hong Kong origin for exportation to Myanmar, Singapore and Thailand are eligible for preferential tariff treatment under AHKFTA. Subject to completion of the necessary procedures of the respective AMS, the effective dates for other AMS to provide preferential tariff treatment under AHKFTA will be separately announced.
2.Among other things, for the purpose of claiming preferential tariff treatment, the importer of the goods concerned must submit to the customs authority of the importing Party (Note 2) a valid Certificate of Hong Kong Origin - Form AHK (CO(Form AHK)). This Circular sets out the application procedures and conditions for issuing CO(Form AHK) to cover eligible Hong Kong-origin goods. Trade and Industry Department (TID) and the Government Approved Certification Organizations (GACOs) (Note 3) will start accepting CO(Form AHK) application on 11 June 2019. Details on Movement Confirmation covering goods originating in an AMS passing through Hong Kong to another AMS are provided in CoC No. 6/2019.
3.TID will announce the updated list of Parties on its website from time to time. Traders are advised to read the relevant provisions of the AHKFTA and its Annexes, other relevant Circulars issued by TID as well as updated information posted on TID's website from time to time, in conjunction with this Circular. The full text and other details of the AHKFTA are also available from TID's webpage <https://www.tid.gov.hk/english/ita/fta/hkasean/index.html>. Please also refer to the "Notes for Traders Lodging CO(Form AHK) Applications" <https://www.tid.gov.hk/english/aboutus/publications/registcert/files/note(ASEAN)_e.pdf> when making an application. The format of CO(Form AHK) is attached at Appendix.
II. Certificate of Hong Kong Origin - Form AHK
Product Coverage
4.AMS' tariff reduction commitments under the AHKFTA cover different kinds of commodities, including jewellery, articles of apparel and clothing accessories, watches and clocks, toys, etc. Details of tariff reduction commitments of each AMS can be found on TID's webpage <https://www.tid.gov.hk/english/ita/fta/hkasean/text_agreement.html>. Traders are advised to check if the products fall within a description of products eligible for concessions in the importing Party when considering whether to take out a CO(Form AHK).
5.CO(Form AHK) is issued to cover eligible Hong Kong-origin goods meeting the applicable ROO and related requirements under the AHKFTA.
Issuing Authorities
6.CO(Form AHK) will be issued by TID and GACOs.
Factory Registration (FR)
7.To ensure that the factories concerned are capable of manufacturing goods which meet the ROO requirements under the AHKFTA, manufacturers and subcontractors must register with TID for FR before they are eligible to apply for CO(Form AHK). Please refer to TID's website <http://www.tid.gov.hk/english/import_export/cert/cert_aboutco_factory.html> for details on the registration conditions and procedures.
8.Manufacturers and subcontractors who have valid FR covering other types of COs are also required to update their FR records to include CO(Form AHK). They may do so by returning the completed form "Application for Amendment of Registration Particulars under Factory Registration (FR)". The form can be downloaded from TID's webpage <http://www.tid.gov.hk/english/aboutus/form/publicform/others/allforms.html#Factory> or obtained from Factory Registration and Origin Certification (FR&OC) Branch of TID. FR registrants are legally bound to observe all conditions of registration and they have to ensure all registration particulars (e.g. address, ownership, products, line of production, machinery, etc.) are accurate and up-to-date. If FR registrants fail to update their registration particulars or their CO(Form AHK) applications cover goods that are not registered with TID, their CO(Form AHK) applications will be deferred or rejected.
9.If the goods to be covered by a CO(Form AHK) are subject to ROOs involving Regional Value Content (RVC) under the AHKFTA, the manufacturers concerned must provide a Proforma Cost Statement detailing the RVC calculation for each type of goods in support of its FR application or amendment. In the circumstances where the production of goods involves any local subcontracting, the subcontractor concerned is required to declare its own part of RVC calculation to support the Proforma Cost Statement made by the manufacturer. The form can be downloaded from TID's webpage <http://www.tid.gov.hk/english/aboutus/form/publicform/others/allforms.html#Factory> or obtained from FR&OC Branch of TID. Please refer to Article 6 (Calculation of Regional Value Content) of Chapter 3 of the AHKFTA for details regarding the RVC calculation. A Cost Statement is valid from the date of submission to the expiry date of the manufacturers' FR, if approved. A fresh Cost Statement must be submitted for TID's approval at the time of FR renewal or in case of major updates to the cost information contained in the Cost Statement, e.g. a decrease in the RVC of the goods to a level below the applicable RVC requirement for the goods under the AHKFTA.
10.TID normally completes the processing of a new FR application or an FR amendment request involving product/certification types within 14 clear working days after receipt of application and all supporting documents. Traders intending to take out CO(Form AHK) to cover their products should take this into account in planning their production and shipment schedules.
Electronic Service for CO(Form AHK)
11.All CO(Form AHK) applications (including fresh submissions, re-submissions, amendments and cancellations) must be lodged through electronic trade document submission services. Traders may register with the Certificate of Origin (CO) Electronic Service Providers appointed by the Government (Note 4) in order to use the electronic trade document submission services. Traders who are not ready to make electronic submissions can make use of the paper-to-electronic conversion service provided at the designated Service Centres by the Service Providers for lodging CO(Form AHK) applications.
Submission of CO(Form AHK) Applications
12.All required information must be provided in a CO(Form AHK) application accurately. Moreover, applicants have to comply with the following requirements in respect of CO(Form AHK) applications -
- The exporter, manufacturer, and subcontractor (if applicable) have to make the following declaration in the CO(Form AHK) application:
ASE - I declare that the goods described in this application comply with the rules of origin specified for those goods in the ASEAN - Hong Kong, China Free Trade Agreement. - The exporter is also required to make the following declaration in the CO(Form AHK) application:
U01 - For the purpose of completion of box 11 on CO(Form AHK), I declare that the details and statements provided for this application are correct; and that all the goods were produced in Hong Kong, China and that they comply with the rules of origin, as provided in Chapter 3 (Rules of Origin) of the ASEAN - Hong Kong, China Free Trade Agreement for the goods exported to the country/place as entered under "Importing Country/Party". - Each CO(Form AHK) can only be used to cover one batch of goods entering into an importing Party at the same time.
- Each CO(Form AHK) can cover a maximum of 5 product items with their 8-digit Hong Kong Harmonized System (HKHS) codes, and all of them must be goods eligible for preferential tariff treatment under the AHKFTA and originating in their own right.
- Under normal circumstances, traders are required to apply for a CO(Form AHK) before exportation of goods, and the departure date should be at least 2 clear working days after the date of application.
13.While the data requirements for CO(Form AHK) applications are mostly the same as those for Certificate of Hong Kong Origin (CHKO), applicants should note the following requirements specifically applicable to CO(Form AHK) applications -
- HS Code: Traders are required to provide the 8-digit HKHS codes corresponding to the goods concerned according to the "Hong Kong Imports and Exports Classification List (Harmonized System)" published by the Census and Statistics Department. The first 6 digits of the HS codes will be printed on the CO(Form AHK).
- Consignee's Name and Address: The consignee's name and address must be provided.
- Origin-Conferring Criterion: Traders should indicate in the application the ROO applicable to and met by each product item. For CO(Form AHK) applications where the RVC criterion is applicable, traders should indicate the RVC percentage and the FOB value of the relevant item.
- Third Party Invoicing: The importing Party will accept CO(Form AHK) in the case where sales invoice is issued either by a company located in a third party or by an exporter for the account of the said company, provided that the goods meet the requirements of the AHKFTA. Such case(s) must be so indicated in the CO(Form AHK) application. The name and country/party of the company issuing the third party invoice, the number of the invoices issued by the manufacturers or the exporters and the number of the invoices issued by the trader (if known) must also be provided in the CO(Form AHK) application and will be printed on the CO(Form AHK).
- Exhibition: Cases involving originating goods for exhibition in a Party, and sold during or after the exhibition for importing into a Party, must be so indicated in the CO(Form AHK) application. The name and address of the exhibition must also be provided.
- De Minimis and Accumulation: Application of such must be indicated and the relevant details on raw materials and components must be provided in the application. The supporting calculations and/or records must be kept and be made available for Customs & Excise Department (C&ED)'s inspection upon request.
- Other Details to Identify the Consignment: "Invoice No." is required for each product item and these data will be printed on the CO(Form AHK). Traders may also indicate in the application other necessary details to identify the consignment which the CO(Form AHK) covers if necessary. The name of manufacturer and trade mark should also be specified.
- Signature of Authorized Signatory: The exporter's authorized signatory submitting the application must sign the declaration (Box 11) on the issued CO(Form AHK) before passing the document to the importer for claiming preferential tariff treatment.
Supporting Documents for CO(Form AHK) Applications
14.If required by the issuing organization and/or C&ED, the manufacturer, subcontractor (if any) and the exporter of the goods applying for a CO(Form AHK) should provide appropriate supporting documents and other relevant information proving that the goods covered in the application qualify as originating goods in accordance with Chapter 3 (Rules of Origin) of the AHKFTA. This will include relevant information concerning any manufacturing processes completed in Hong Kong and the Parties, as well as the names and addresses of the parties (including subcontractors) involved.
Processing and Approval of CO(Form AHK) Applications
15.Target turnaround time for TID's processing a CO(Form AHK) application is 1.5 clear working days (excluding day of receipt), except for applications selected for pre-issue checks (paragraph 19 below).
Collection of CO(Form AHK)
16.Upon approval of a CO(Form AHK) application, the issuing organization will send an electronic approval message to the applicants through Electronic Service Providers. Exporters may print out the collection slip, apply its company chop on it, and collect the CO(Form AHK) from the issuing organization.
Validity Period
17.A CO(Form AHK) is valid for a period of one year from the date of issuance and should be submitted to the customs authorities of the importing Party within that period.
Record Keeping Requirement
18.Under the AHKFTA, the manufacturer and/or exporter applying for a CO(Form HK) should keep its supporting records for application for not less than three years from the date of issuance of the CO(Form AHK).
Verification of CO
19.In order to uphold the integrity of the origin certification system, TID, in conjunction with C&ED of Hong Kong, may conduct consignment checks to verify the accuracy of material particulars declared on CO(Form AHK) applications. In particular, CO applicants should note that if an application is selected for pre-issue check, it will normally take a relative longer time to process that application. Traders should bear this in mind in drawing up their shipment schedules. C&ED also conducts pre-registration factory inspections on FR applicants and periodic re-inspections upon registration.
20.The importing Party may request C&ED to conduct retroactive checks on CO(Form AHK) at random or when it has reasonable doubt as to the authenticity of the document, or as to the accuracy of the information regarding the true origin of the goods in questions or of certain parts thereof. It may also request verification visits to the premises of the exporter or manufacturer, in accordance with the procedures laid down in Rule 17 and Rule 18 respectively of Annex 3-1 to Chapter 3 of the AHKFTA.
21.The importing Party may suspend the provisions of preferential tariff treatment to a good that is the subject of a retroactive check or verification check for the duration of that action or any part thereof. However, in accordance with the internal laws and regulations of the importing Party, the competent authority of the importing Party may release the good to the importer subject to any administrative measures deemed necessary, provided that it is not held to be subject to import prohibition or restriction and there is no suspicion of fraud. In the event that a determination is made by the importing Party that the good qualifies as an originating good of Hong Kong, any suspended preferential tariff treatment shall be reinstated. The importing Party may deny preferential tariff treatment if the origin of the goods concerned cannot be verified.
Request for Amendment
22.If amendment is required after the issuance of a CO(Form AHK), traders can lodge an amendment request. The issuing organization will only consider the request for amendment provided that the CO(Form AHK) has not yet been used for claiming preferential tariff treatment. Such request should be lodged within 30 days from the date of issue and all copies of the CO(Form AHK) must be returned to the issuing organization. Issuing organizations will consider each amendment request on its own merits.
Request for Cancellation
23.If a CO(Form AHK) is subsequently not used for claiming preferential tariff treatment under the AHKFTA, the trader concerned may lodge a request for cancellation. All copies of the CO(Form AHK) must be returned to the issuing organization for cancellation.
Application for Certified True Copy (CTC)
24.In the event of theft, loss or destruction of a CO(Form AHK), traders may apply for a CTC of the CO(Form AHK) by :
- explaining in writing the circumstances leading to the request; and
- providing supporting documents to substantiate the claim of theft, loss or destruction, and a photocopy of the CO(Form AHK) concerned, where available.
25.Application for a CTC of CO(Form AHK) issued by TID and GACOs must be fully substantiated by documentary evidence. Application form for a CTC of a CO(Form AHK) issued by TID can be downloaded from TID's website <https://www.tid.gov.hk/english/aboutus/form/publicform/cert/files/e8122.pdf> or obtained from the FR&OC Branch of TID. The CTC of a CO(Form AHK) will be issued within one year from the date of issuance of the original CO(Form AHK) and will be valid during the term of validity of the original CO(Form AHK). Issuing organizations will consider each case on its own merits and reserve the full right to approve or reject the application. Traders are reminded that if the original CO(Form AHK) is used in claiming preferential tariff treatment under the AHKFTA, the CTC of the CO(Form AHK) will at once become invalid. Likewise, the original CO(Form AHK) will become invalid once the CTC of the CO(Form AHK) is used.
Review of the ROOs, Conditions of Issuing CO(Form AHK) and Application Procedures
26.Upon entry into force of the AHKFTA, both sides will continue the Product Specific Rules negotiations for other products set out in Annex 3-3 of Chapter 3 of the AHKFTA. The application procedures and conditions of issuing CO(Form AHK) may also be reviewed after implementation. Any changes will be announced through Circulars to be issued by TID and on TID's website from time to time.
III. Customs Clearance
27.In the event that traders encounter problems in customs clearance of goods covered by a CO(Form AHK), they may seek assistance from the FR&OC Branch of TID [contact details at paragraph 31 below]. However, TID will not accept any liability in cases where the customs authorities of the importing Party do not accept the claim for preferential tariff treatment under the AHKFTA.
IV. Handling of Information
28.CO(Form AHK) issuing organizations will keep the data provided by traders in strict confidence. However, TID may under certain circumstances disclose such data to C&ED or other government departments, or to third parties within or outside Hong Kong. These circumstances include the following: the disclosure is necessary to facilitate the consideration or verification of the CO(Form AHK) in question; the disclosure is authorized or required by the laws; or an explicit consent to the disclosure is given by the traders concerned.
V. Important Note and Warning
29.It is the responsibility of traders to complete the application for CO(Form AHK) fully and truthfully, and provide the supporting documents as required under the issuing conditions for CO(Form AHK). Failure to provide accurate and complete information may affect the consideration and processing of the application, and may result in the application being deferred or rejected.
30.TID and GACOs work closely with C&ED, through checks and inspections, to ensure compliance with the provisions of the Import and Export Ordinance (Cap. 60) and its subsidiary legislations as well as the Protection of Non-Government Certificates of Origin Ordinance (Cap. 324). Companies/registered businesses/individuals may be liable to criminal prosecution for circumventing the conditions of CO(Form AHK). A company/registered business/individual which commits an offence under the above Ordinances is liable to a maximum penalty of a fine of HK$500,000 and 2 years' imprisonment. Moreover, TID and GACOs may take administrative actions against the traders concerned irrespective of whether they have been prosecuted. Such administrative actions may involve, but shall not necessarily be confined to, any or all of the following: refusal to issue a CO including CO(Form AHK); suspension of all kinds of certification facilities; suspension/cancellation of FR of the company/registered business/individual concerned.
VI. Enquiries
31.For enquiries, please contact us through the following channels:
| Trade and Industry Department (Factory Registration and Origin Certification Branch) |
Tel: 2398 5545 Fax: 2787 6048 E-mail: co_enquiry@tid.gov.hk |
| GACOs | |
| - The Hong Kong General Chamber of Commerce | Tel: 2395 5515 |
| - The Federation of Hong Kong Industries | Tel: 2396 3318 |
| - The Chinese Manufacturers' Association of Hong Kong | Tel: 2542 8613 |
| - The Indian Chamber of Commerce, Hong Kong | Tel: 2525 0138 |
| - The Chinese General Chamber of Commerce | Tel: 2526 0623 |
| Electronic Service Providers | |
| - Brio Electronic Commerce Limited | Tel: 2111 1288 |
| - Tradelink Electronic Commerce Limited | Tel: 2917 8888 |
Yours faithfully,
(Nicholas FUNG)
for Director-General of Trade and Industry
Encl.
Note 1: ASEAN comprises Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam.
Note 2: "Party/Parties" refers to Hong Kong and/or AMS whose commitments made under the AHKFTA have entered into force. As set out in paragraph 1 of this Circular, the commitments made under the Free Trade Agreement between Hong Kong and ASEAN amongst Hong Kong and three AMS, namely Myanmar, Singapore and Thailand will enter into force on 11 June 2019.
Note 3: The Government Approved Certification Organizations (GACOs) include the Hong Kong General Chamber of Commerce; the Federation of Hong Kong Industries; the Chinese Manufacturers' Association of Hong Kong; the Indian Chamber of Commerce, Hong Kong and the Chinese General Chamber of Commerce.
Note 4: The existing CO Electronic Service Providers are Brio Electronic Commerce Limited (Brio) and Tradelink Electronic Commerce Limited (Tradelink). The contact details of the service providers can be found at paragraph 31.