If the B/L required for Korea-ASEAN FTA Certificate of Origin was issued after the completion of goods shipment, can it be accepted as proof of direct consignment? Released

Regarding direct consignment proof for Korea-ASEAN (ASEAN) Free Trade Agreement (FTA) Certificate of Origin, you have inquired about the admissibility of a Bill of Lading (B/L) issued after the completion of goods shipment. To answer directly, even if a B/L is issued after shipment, it can be fully accepted as direct consignment proof, provided certain requirements are met.

In FTA agreements, the 'direct consignment principle' is a very important element. This means that goods eligible for the agreement must be transported directly between the signatory countries, and even if transiting through a non-signatory country, no processing other than simple unloading, reloading, or operations to preserve the goods should occur in that non-signatory country. This principle aims to prevent circumvention imports through non-signatory countries and to ensure that FTA benefits apply only to goods from signatory countries.

For the B/L you inquired about to be accepted as direct consignment proof, even if issued after shipment, the following requirements must be met. First, the B/L must be issued in the exporting Party. This indicates that the origin of the transportation contract was made within a Party to the agreement. Second, the Port of Loading, Transit Port, and Port of Destination must be clearly and consistently stated on the B/L. This information is crucial evidence for tracking the goods' transportation route and verifying compliance with the direct consignment principle.

Third, the B/L must be issued by a carrier who takes full responsibility for the goods throughout the entire transport journey. This is often connected to the concept of a 'Through Bill of Lading'. A Through Bill of Lading is a document where a single carrier provides transportation responsibility and proof for the entire journey, even when goods are transported through multiple segments to the final destination. Therefore, even if the mode of transport changes at a transit point, if the Through Bill of Lading issued by the initial carrier clearly defines responsibility for the entire transport route, it can be fully accepted as direct consignment proof.

Especially when transshipment occurs via a non-signatory country, it is important to prove that the goods were under customs control at that transit point. For example, a Transit Certificate issued by the customs authorities of the transit country, a copy of the Transshipment B/L, or other documents confirming the storage and transshipment of goods at the transit point (e.g., warehouse receipts, port entry/exit records, etc.) can further robustly support the direct consignment principle. In the case of the Korea-ASEAN FTA, even if the agreement does not explicitly stipulate that 'goods transiting through a non-Party must remain under customs supervision in that non-Party,' such proof significantly contributes to increasing the credibility of direct consignment proof during customs examination.

In conclusion, even a B/L issued after shipment can be accepted as direct consignment proof for Korea-ASEAN FTA application if it meets the above requirements, especially if it possesses the characteristics of a Through Bill of Lading. It is crucial that the information on the Certificate of Origin (CO), the Commercial Invoice, and the transportation information on the B/L are mutually consistent. Inconsistencies in documents can cause delays in customs examination or lead to the denial of preferential origin treatment.

From the perspective of import/export businesses, it is advisable to keep this FTA direct consignment principle in mind from the time of entering into a transportation contract, and to request the carrier to issue a Through Bill of Lading or to pay attention to securing detailed records and supporting documents for the transportation process at transit points. If there are any uncertainties, it is important to consult with a customs expert in advance to minimize risks.