Industry insiders call the RCEP Certificate of Origin "paper gold." Use the cumulation rules well, and you can directly cut tariff costs.
What RCEP Is
RCEP stands for the Regional Comprehensive Economic Partnership. It took effect on January 1, 2022, with 15 member states: China, Japan, South Korea, Australia, New Zealand + the ten ASEAN countries.
As of now, China has signed 24 free trade agreements with 31 countries and regions.
Why the Origin Cumulation Rules Are Valuable
The cumulation rules allow originating materials from RCEP member states to count as originating content of the final product.
In other words, if you process raw materials from Japan or South Korea in China, the value added on both sides can be combined, making it easier to meet the origin qualification.
Once you meet the origin qualification, exports to other member states can enjoy the agreement tariff rates.
Three Facilitation Tools
| Tool | Function |
|---|---|
| Origin cumulation rules | Combine originating content from member states, making qualification easier |
| Back-to-back proof of origin | When goods are transshipped in a member state, a new proof is issued against the original, preserving preferential status |
| Approved Exporter self-issued origin declaration | Qualified enterprises can issue declarations themselves, without applying for a certificate for each shipment |
How to Judge Whether You Can Use It
Step one: confirm the export destination is an RCEP member state.
Step two: check the specific tariff reduction arrangement and rules for your product to see whether it meets the origin requirements.
Step three: choose the certificate form — a general Certificate of Origin, an Approved Exporter declaration, and so on.
How to Apply for the Certificate
A general Certificate of Origin can be applied for from customs, the CCPIT and other agencies.
An Approved Exporter, once approved, can issue an origin declaration on its own, saving the per-shipment application.
Whichever form is used, the product must meet the corresponding rules of origin, and the certificate and declaration are subject to the actual goods.
Where the Cost Savings Come From
Agreement tariff rates are usually lower than MFN rates, and the difference is direct profit.
The cumulation rules also loosen sourcing options, so the nationality of ingredients is no longer an obstacle.
But tariff cuts have transition periods, and the reduction varies by product, so you must check each one.
Three Common Misconceptions
Misconception one: as long as you have a certificate, you will definitely get a tariff cut. The cut depends on the specific product list and transition arrangements.
Misconception two: cumulation rules mean you can use materials from any country. Only originating materials from RCEP member states can be cumulated.
Misconception three: transshipment means losing the preference. With a back-to-back proof, preferential status can continue.
How Enterprises Put It Into Practice
On the procurement side, record the country of origin and proof of origin of raw materials.
On the production side, keep documents that prove processing and value added.
On the export side, choose the certificate type by destination, and consult customs, the CCPIT and other agencies in advance.
Build "whether preference applies" into your quotation. Don't give away tariff savings you could keep.
RCEP tariff cuts advance in stages, and the pace differs by member state and product. For specifics, refer to the latest arrangements from customs and the agreement.
