From May 1,2024,the Free Trade Agreement between the Government of the People’s Republic of China and the Government of the Republic of Ecuador (referred to as the "China-Ecuador Free Trade Agreement") will officially come into effect.According to this agreement,goods exported to Ecuador can be exempt from customs duties under the terms of the China-Ecuador Free Trade Agreement.certificate under the China-Ecuador Free Trade Agreement.This article has sorted out the common questions and answers regarding the handling of the Certificate of Origin under the China-Ecuador Free Trade Agreement to help enterprises handle the procedures smoothly and enjoy preferential policies.

Enterprises applying for the Certificate of Origin

Both the consignors of export goods and their agents,as well as domestic producers and their agents (collectively referred to as "applicants"),may apply to the customs authorities for the issuance of the China-Ecuador Free Trade Agreement Certificate of Origin.This regulation ensures that enterprises producing in China and exporting to Ecuador can legally and compliantly complete the relevant procedures.

Types of goods eligible for preferential treatment

To apply for the Certificate of Origin under the China-Ecuador Free Trade Agreement and enjoy preferential treatment,the export goods need to meet one of the following conditions:

• GoodscompletelyobtainedorproducedinChina.
• GoodsproducedinChinausingonlyoriginatingmaterialsfromChinaorEcuador.
• GoodsproducedinChinausingnon-originatingmaterials,butfallingwithinthescopeofapplicationoftheProduct-SpecificRulesofOriginandmeetingthecorrespondingchangeintariffclassificationorotherregulations,orgoodswitharegionalvaluecontentofnotlessthan40%.

Calculation of regional value content

The formula for calculating the regional value content is: Regional Value Content = (Free on Board (FOB) price - price of non-originating materials) ÷ FOB price × 100%

Among them,"non-originating material price" refers to the import cost,freight,and insurance of non-originating materials determined in accordance with the WTO Valuation Agreement,including the price of materials of undetermined origin.

Time for applying for the Certificate of Origin

Enterprises should handle the Certificate of Origin under the China-Ecuador Free Trade Agreement before or at the time of goods shipment.If it fails to be issued in a timely manner due to force majeure,unintentional errors,negligence or other reasonable reasons,it can be reissued within one year from the date of goods shipment.

Application process

Applicants can apply for the Certificate of Origin through the following two methods:

• LogintoChina’sInternationalTrade"SingleWindow"—CustomsCertificateofOrigin—CertificateApplication.
• Logintothe"Internet+Customs"integratedonlineserviceplatform—TaxandFeeServices—CertificateofOriginManagement—CertificateofOriginIssuance,andselectthe"China-EcuadorFreeTradeAgreementCertificateofOrigin"fordeclaration.

Selection of origin criteria

Select the corresponding origin criteria according to the production situation of the goods:

• IfthegoodsarewhollyobtainedorproducedinChina,select"WO".
• ForgoodsproducedexclusivelyusingmaterialsoriginatingfromChinaorEcuador,select"WP".
• Forgoodsproducedusingnon-originatingmaterialsthatcomplywiththescopeofapplicationandcorrespondingprovisionsofthe"Product-SpecificRulesofOrigin,"select"PSR."
• Forgoodsnotcoveredbythe"Product-SpecificRulesofOrigin"butwitharegionalvaluecontentofnolessthan40%,select"RVC".

Filling in information

For cases where the departure date and means of transport number are unknown,you may fill in "***" (three asterisks) in the relevant column.If the customer requests to fill in on the certificate of origin,The number can be filled in the "Remarks" column (Column 4) of the certificate.

Self-printing and handling of lost certificates

The Certificate of Origin under the China-Ecuador Free Trade Agreement can be self-printed.If the certificate is stolen,lost or accidentally damaged,and it is confirmed that the original certificate has not been used,the applicant can apply in writing to the customs for the issuance of an approved copy of the Certificate of Origin,which has the same validity period as the original certificate.

By following the above guidelines,enterprises can ensure the smooth handling of the Certificate of Origin under the China-Ecuador Free Trade Agreement,enjoy corresponding tariff preferences,and promote the stable development of China-Ecuador trade.