Patrick Wong
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Based on Cross-Strait Economic Cooperation Framework Agreement (ECFA), ECFA early harvest for trade in goods tariff reduction arrangement will be implemented on 1 January, 2011. For cross-strait cargo trade in goods, in addition to the early harvest under the ECFA list of products, businesses are still consistent with the "Provisional Rules of Origin Applicable to Products Under the Early Harvest for Trade in Goods (the "Provisional Rules of Origin")", and the rules and regulations laid down by its product-specific rules of origin (Product Specific Rules, referred to as the "PSR"), before it can be applied. With respect to the aforesaid two regulations and the necessary administrative procedures for the implementation of the Provisional Rules of Origin, the Consultative Group on business rules of origin of both sides have completed their negotiations and their determination were announced by the Ministry of Finance on 27 December, 2010.
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According to Article 2 of the Provisional Rules of Origin, the cross-strait import and export goods must be either wholly obtained or produced entirely in one side or both, exclusively from originating materials. In case of the materials for the manufacture of the goods are imported from third country, the products must be conformed to their respective PSR, in order to identify the goods as originated from cross-strait products. ECFA early harvest products, such as trade in goods of non-originating materials used by the manufacturers, the assembling or manufacturing processes required to achieve substantial degree of transformation before they can identify the goods as originated from cross-strait products. PSR set the standards for real transformation for individual product lines according to their different characteristics, including the standards for the change of tariff rate, the regional value content standards, processing standards and so on.
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The administrative procedures for early harvest for trade in goods under the Provisional Rules of Origin include the formation, issuance and application requirements, validity period, the conditions for the application of replacement, maintenance requirements of the certificate of origin of ECFA, and imports of related obligations verification of origin regulations, refusal to grant preferential tariff treatment of the case, the two sides of the channels of communication and so on. ECFA trade in goods to apply for preferential tariff rates of the early harvest industry, the export declaration is required before the application for ECFA Certificate of Origin (the certificate of origin of Taiwan will be issued by the relevant agencies appointed by the Bureau of Foreign Trade of the Ministry of Economic Affairs). In addition, the following items should be noted by the applicant:
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To ensure that the goods apply for ECFA preferential tariff treatment are in the early harvest list.
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Except for special circumstances, the certificate of origin should be obtained before exportation.
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The initiative to declare the imported goods as originating goods, and apply for the preferential tariff treatment.
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To submit a valid certificate of origin.
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Application for ECFA early harvest trade in goods tariff concessions for goods, the goods must be exported on or after 1 January, 2011.
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Apply for preferential tariff treatment, in addition to the goods must meet the relevant standards determined origin, the goods must have cross-strait direct transportation, that is, unless there are special considerations which, meet specific conditions, the goods shall not transfer or stay in any third party.
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Manufacturers or exporters should keep the relevant documents of origin.
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