When importing goods by applying FTA preferential tariffs, must the original Certificate of Origin be continuously retained, or is a copy sufficient? Released

When importing under FTA preferential tariff rates, it is crucial to understand the storage method of the Certificate of Origin by dividing it into the point of application for preferential tariff rates and the point of post-management. To put it simply, an original or an equivalent valid certificate must be possessed at the time of application for preferential tariff rates, but a copy is sufficient for storage purposes after application.

First, let's look at the time of application for preferential tariff rates. When an importer applies for FTA preferential tariff rates, the relevant Certificate of Origin must exist, which serves as key supporting documentation for applying preferential tariffs. The existence of a valid Certificate of Origin is essential as a requirement for receiving customs benefits under the Customs Act and the Act on Special Cases concerning the Implementation of Free Trade Agreements. In the past, 'original' submission was often required, but recently, according to individual FTA agreements and related laws, electronic copies such as electronic document Certificates of Origin or scanned copies are often recognized as identical to the original. The important point is that if requested by customs, a valid original or equivalent material that can confirm the authenticity of the certificate must be presented. In other words, the 'validity' and 'existence' of a valid Certificate of Origin at the time of application are key.

Next, I will explain the document retention period after applying for preferential tariff rates. Once an import declaration is accepted after applying for preferential tariff rates, most FTA agreements and domestic relevant laws (such as the Act on Special Cases concerning the Implementation of Free Trade Agreements for the Customs Act and its Enforcement Decree) stipulate that copies of the Certificate of Origin may be retained. This is intended to promote administrative convenience for importers and reduce the burden of document management. While the mandatory retention of physical original documents is relaxed, the principle remains unchanged: copies must be diligently managed to be submitted at any time in preparation for post-clearance audits or origin verifications.

The importance and considerations for storing Certificates of Origin are as follows:

1. Retention Period: According to Article 13 of the Customs Act and Article 14 of the FTA Special Act, etc., Certificates of Origin and other related documents (import contracts, invoices, bills of lading, etc.) must be retained for 5 years from the date of acceptance of the import declaration. Thorough management is essential during this period as requests for post-clearance audits or origin verifications may come from customs.
2. Scope of Copy: A 'copy' typically refers to a form that clearly verifies the content of the original, such as a duplicated original (photocopy), a scanned and stored file (e.g., PDF), or a document received via fax. The important thing is that all core contents, including the Certificate of Origin's issuance information, signature (if required), item information, and origin determination criteria, must be clearly identifiable through the copy. Blurry or damaged copies may lose their effectiveness as evidentiary material.
3. Possibility of Securing the Original: Even if a copy is kept, it is advisable to have a system in place to obtain reissuance or original verification from the exporter or institution that issued the original, in case of emergencies. Especially during origin verification, customs may sometimes request the submission of the original.
4. Risk of Non-Retention or Poor Retention: Non-retention or poor retention of the Certificate of Origin can lead to exclusion from preferential tariff application, imposition of additional customs duties and surtaxes, and even administrative fines. This can negatively impact not only a company's financial losses but also its customs compliance rating.

Therefore, if an importer has applied FTA preferential tariff rates, it is important to properly retain copies of the Certificate of Origin for at least 5 years and to regularly verify that these copies clearly reflect the content of the original. Furthermore, establishing a digital archiving system for efficient management and preparing to submit them promptly when needed is a wise approach.