You inquired about a situation where the FOB (Free On Board) price was entered in Box 9 of the ASEAN-Korea FTA Certificate of Origin (COO), even though the origin criterion was 'Wholly Obtained' (WO). The core question is whether this COO can be validly recognized in such a case.
To state the conclusion first, even if the FOB price is entered in Box 9 of the Certificate of Origin when the origin criterion is 'Wholly Obtained' (WO), the Certificate of Origin can be recognized as valid.
Box 9 of the Certificate of Origin is for indicating 'Gross weight or other quantity and price.' The main reason for stipulating that the FOB price be entered in this box is when the origin determination criterion for the goods requires calculations based on price information, such as the 'Value Added Criterion (e.g., Regional Value Content - RVC).' Since the Value Added Criterion determines the originating status through the ratio of value added occurring within the region or the value of non-originating materials relative to the FOB price of the final product, the FOB price becomes essential supporting data for determining whether the origin is met.
However, the 'Wholly Obtained (WO) criterion' means that the goods are entirely produced or obtained within the territory of a specific contracting party. This encompasses goods cultivated, mined, fished, hunted, or obtained from animals born and raised in that country, and also includes products produced solely from such wholly obtained goods. The Wholly Obtained criterion requires a qualitative judgment about the manufacturing process of the goods or the origin of the materials, and has no direct relation to the 'price' of the goods. In other words, FOB price information has no influence on the determination of origin.
Therefore, even if the FOB price is entered in Box 9 of the Certificate of Origin when the origin criterion is 'Wholly Obtained' (WO), this is not considered a material error that affects the origin determination. Customs authorities will conduct an examination to confirm whether the goods actually meet the Wholly Obtained criterion, and the presence or absence of the FOB price entry will not invalidate the Certificate of Origin. It can be seen as merely adding unnecessary information, but it is irrelevant to the essential determination of origin.
Of course, the Certificate of Origin is a very important document for applying FTA benefits, so it is always crucial to understand the regulations of each agreement accurately and pay attention to avoid errors when completing it. This is because entering unnecessary or incorrect information can sometimes trigger requests for additional clarification from customs, leading to inconveniences such as customs clearance delays. Exporters must carefully complete each item on the Certificate of Origin based on an accurate understanding of the origin determination criteria.
If you require clear understanding or assistance with Certificate of Origin preparation in the future, we recommend seeking advice from a professional customs broker at any time. This will greatly help in preventing unnecessary customs clearance issues in advance and maximizing the effectiveness of FTA utilization.
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