We are a non-certified exporter, but we purchased finished products for export to the EU from a domestic certified exporter manufacturer. Is it valid for the manufacturer, not us, to issue the origin declaration directly to the EU importer? Released

In accordance with the Korea-EU FTA (Free Trade Agreement), you inquired about the method of proving origin when purchasing finished products from domestic certified exporters and exporting them to EU countries. As a customs broker, I will explain this in detail.

First, the method of proving origin in the Korea-EU FTA is done through the 'Origin Declaration (or Invoice Declaration)'. This is a method of proving origin by the exporter or producer directly stating the origin text on commercial documents (invoice, packing list, delivery note, etc.) without going through a separate origin certification issuing agency. The core of this method lies in the subject and qualification of writing the origin declaration.

Qualification of the Subject Issuing the Origin Declaration

The exporter (or producer) who can validly write the origin declaration must meet the following conditions:

• Located in the Exporting Country: Must be located in the exporting country of the goods.
• Ability to Determine and Prove Origin: Must have the ability to accurately determine and prove the origin of the goods.
• Record Keeping and Verification Subject: Must keep all records related to origin certification and be able to respond to origin verification by customs authorities.
• Status as a Certified Exporter: Most importantly, for export cases exceeding a certain amount (6,000 euros in the case of the Korea-EU FTA), only those granted the status of 'certified exporter' by customs authorities can write the origin declaration. For small export cases of 6,000 euros or less, non-certified exporters can also write the origin declaration.

Validity of Direct Issuance of Origin Declaration by Certified Exporter Manufacturer to EU Importer

In your case, you are purchasing finished products from a domestic certified exporter manufacturer and exporting them. The most important thing here is 'who is the final entity selling and exporting the goods to the EU importer'.

1. When the Manufacturer Directly Exports to the EU Importer (Manufacturer as Final Exporter)

This scenario means that the manufacturer itself is in a contractual relationship to sell and export goods directly to the EU importer, separate from selling goods to your company. For example, your company only performs roles such as transportation or customs clearance, and the manufacturer is the entity of sale.

In this case, yes, if the manufacturer is a certified exporter, the origin declaration stated on the commercial documents (invoice, packing list, delivery note, etc.) issued by the manufacturer to the EU importer can be recognized as a valid origin certificate. The content of the original answer applies to this case. Since the manufacturer directly performs the role of the exporter and has the ability to determine origin and the status of a certified exporter, the declaration is valid.

2. When You (Non-Certified Exporter) Directly Export to the EU Importer (You as Final Exporter)

Based on the question, this scenario is expected to be more common. That is, your company purchases goods from a certified exporter manufacturer and sells and exports them to the EU importer under your company's name.

In this case, the certified exporter manufacturer cannot directly issue the origin declaration to the EU importer. The principle is that the final exporter issues the origin declaration. The manufacturer is only the entity of the domestic transaction selling goods to your company, and your company is the entity of the export transaction with the EU importer.

In this situation, to apply the Korea-EU FTA preferential tariff, your company should consider the following methods.

• If the Shipping Amount is 6,000 Euros or Less: Even if your company is a non-certified exporter, if the total value of the originating goods being shipped does not exceed 6,000 euros, you can state the origin declaration text on your company's commercial documents and use it as a valid origin certificate. In this case, you must receive and keep a 'Comprehensive Origin Confirmation' from the manufacturer proving that the finished product is of Korean origin.
• If the Shipping Amount Exceeds 6,000 Euros: If the total value of the originating goods being shipped in a transaction where your company directly exports exceeds 6,000 euros, your company must obtain the status of 'certified exporter' from the customs office to validly issue the origin declaration. Based on the Comprehensive Origin Confirmation provided by the manufacturer, your company must establish its own origin management system and apply for certified exporter status with the customs office.

Key Summary and Additional Considerations

• Clarification of Transaction Flow: The most important thing is to clearly identify who the parties to the sales and export contract of the goods are. The method of proving origin varies depending on whether it is a 'direct export' form where the manufacturer sells directly to the EU importer or an 'indirect export' form where your company purchases from the manufacturer and resells to the EU importer.
• Role of Comprehensive Origin Confirmation: The manufacturer can provide your company with a 'Comprehensive Origin Confirmation' to prove that the goods are of Korean origin. This document is an important piece of evidence when your company writes the origin declaration or undergoes certified exporter examination. However, this document itself is not a valid origin certificate submitted by the EU importer during customs clearance.
• Importance of Record Keeping: All documents for proving origin (Comprehensive Origin Confirmation, production process data, raw material purchase data, etc.) must be kept for a certain period and prepared for post-verification.

In conclusion, the origin declaration issued by the certified exporter manufacturer is only valid when the manufacturer directly exports to the EU importer. If you, as a non-certified exporter, directly export to the EU, you must issue the origin declaration yourself depending on the shipping amount or obtain certified exporter status. It is important to accurately identify the form of the transaction and choose the appropriate method of proving origin. Please feel free to contact us if you have any further inquiries.