We intend to issue a blanket certificate of origin for goods repeatedly exported to the U.S. How should the 12-month blanket period be specified, and is it mandatory to state the quantity even if order quantities vary each time? Released

Detailed Guidance on Issuance and Quantity Entry for Blanket Certificates of Origin for Goods Exported to the U.S.

As a customs broker, I will provide a detailed explanation regarding your inquiry about the issuance of Blanket Certificates of Origin for goods repeatedly exported to the United States. A Blanket Certificate of Origin is a system designed to alleviate the inconvenience of issuing a Certificate of Origin for each shipment when the same goods are repeatedly exported, and to enhance the efficiency of applying FTA preferential treatment. It is one of the important methods of origin certification stipulated in most FTAs, including the Korea-U.S. Free Trade Agreement (KORUS FTA).

1. How to Specify the Blanket Period for a Blanket Certificate of Origin

Under the KORUS FTA, the validity period of a Blanket Certificate of Origin can generally be set within a range not exceeding 12 months from the date the certificate is issued. This allows exporters or producers to set the validity period of the Certificate of Origin for up to one year when issuing it to an importer, in accordance with the provisions specified in Article 6.15 (Certificate of Origin) of the KORUS FTA.

**Example of Entry:** If the date of issuance of the Certificate of Origin is March 8, 2024, the validity period should be entered as **"From (Start Date) 2024/03/08 To (End Date) 2025/03/07"**. Here, it is important to set the end date to the day before the 12-month mark from the start date, ensuring that the total period does not 'exceed' 12 months. If the origin determination criteria continue to be met for the same goods during this specified period, the blanket certificate can be used repeatedly.

Setting such a blanket period is a practical convenience system that reduces the administrative burden on businesses and supports the efficient application of FTA preferential tariffs in recurring transactions.

2. Whether to Enter the Quantity of Exported Goods

As you inquired, regarding whether the quantity must be entered on a Blanket Certificate of Origin when order quantities vary each time, this can be clarified through the mandatory information required for a Certificate of Origin under the KORUS FTA.

**The mandatory information required for a KORUS FTA Certificate of Origin does not include the quantity of goods.** Particularly for blanket certificates, only the validity period of the certificate is stipulated as mandatory information. Therefore, in your case, it is perfectly acceptable not to enter the quantity on the Blanket Certificate of Origin, and this poses no issue under KORUS FTA regulations.

This regulation is deeply connected to the institutional purpose of the Blanket Certificate of Origin. A blanket certificate proves that a specific 'good' itself meets the rules of origin, and the quantity is not mandatory to enter, reflecting the characteristic of recurring transactions where the quantity of 'goods' varies with each shipment. Even if the quantity is not entered, all identical goods exported within the specified validity period can qualify for preferential treatment. Conversely, if a specific quantity is entered, goods exceeding that quantity may require another Certificate of Origin, or discrepancies between the certificate content and the actual shipment quantity could lead to unnecessary misunderstandings during import clearance. Therefore, if there is no obligation to enter the quantity under KORUS FTA regulations, it is generally common and advisable not to enter it unless there is a specific reason.

3. Points to Note When Utilizing a Blanket Certificate of Origin

• Maintenance of Identity and Origin Criteria: All goods exported during the blanket period must consistently meet the same product name, HS CODE classification, and origin determination criteria. If the fulfillment of origin determination criteria changes due to alterations in product specifications, production processes, or raw materials, the validity of the existing blanket certificate must be re-evaluated, and a new certificate should be issued if necessary.
• Accurate Record Keeping: The exporter who issues a Blanket Certificate of Origin must meticulously retain all supporting documents for the origin status of that certificate (such as production process records, raw material purchase history, cost statements, BOM, etc.) for the period stipulated by the KORUS FTA (generally 5 years from the date of export). This is to prepare for post-verification by the importing country's customs authorities (e.g., U.S. CBP).
• Importer's Understanding and Communication: It is crucial for the importer to accurately understand the purpose and utilization methods of the Blanket Certificate of Origin to smoothly receive tariff benefits. Thorough communication with the importer before issuing the certificate is important to avoid misunderstandings, and providing explanatory materials along with a copy of the certificate is a good practice if needed.
• Verification of Agreement Text and Related Regulations: Since detailed regulations regarding the required information or validity period of a Certificate of Origin may differ for each specific FTA agreement, it is advisable to always check the relevant agreement text and guidelines provided by the customs authorities of each country (e.g., Korea Customs Service, U.S. CBP).

A Blanket Certificate of Origin is an effective tool that significantly enhances a company's convenience in utilizing FTAs, but it requires accurate understanding and systematic management. We hope you successfully utilize the Blanket Certificate of Origin based on the information explained above. Please feel free to ask any further questions you may have.