Exporting Used Cars to the Philippines: AKFTA Certificate of Origin Guidelines for Non-Manufacturers Released

Regarding your inquiry about exporting a used vehicle purchased in South Korea to the Philippines and the possibility of issuing a Certificate of Origin (CO) under the ASEAN-Korea Free Trade Agreement (AKFTA): Even as a non-manufacturer, you are eligible to issue a CO for used goods provided the vehicle satisfies the origin criteria established by the agreement.

The AKFTA does not restrict the issuance of a CO solely to new products. The determining factor is whether the goods meet the Rules of Origin (RoO)—such as the Wholly Obtained (WO) criterion or Product Specific Rules (PSR)—to be officially recognized as Korean origin. For vehicles manufactured in Korea, the 'Wholly Obtained' status generally applies, and this origin remains valid regardless of subsequent domestic transactions.

Procedures for Non-Manufacturer Exporters

When the exporter is not the original manufacturer, the CO application process typically follows one of two paths. While the manufacturer could theoretically apply, it is rare in the used car trade. The most practical method for your case is to obtain a Declaration of Origin from your supplier (the dealer or individual seller) and use it as the basis for your application.

The Role of the Declaration of Origin

The Declaration of Origin is the most critical document in this process. It is a statement from the supplier confirming that the goods were produced in Korea. Since it may be difficult to obtain this directly from the original manufacturer (e.g., Hyundai or Kia) for a used vehicle, you should receive it from the entity that sold you the car. This document should be backed by supporting evidence such as the Vehicle Registration Certificate, Manufacturer’s Certificate, or purchase history, and must include the model name, Vehicle Identification Number (VIN), and manufacturer details.

Preparation of the Statement of Origin

Once you have secured the Declaration of Origin, you must prepare a Statement of Origin. This is a document where the exporter formally explains why the goods qualify as Korean origin. For vehicles manufactured and distributed within Korea, you can apply the Wholly Obtained (WO) criterion, asserting that the vehicle is a product of the exporting party’s territory.

Required Documentation for CO Issuance

To finalize the application through the Korea Customs Service or the Korea Chamber of Commerce and Industry (KCCI), the following documents are generally required:

• Export Declaration: Proof that the export process has been initiated.
• Commercial Invoice or Sales Contract: Basic commercial documents detailing the transaction.
• Statement of Origin and Supporting Evidence: This includes the Declaration of Origin from the supplier, the Vehicle Registration, and documents confirming the VIN, which is essential for verifying the country of manufacture.

Strategic Benefits and Professional Advice

Securing a Certificate of Origin allows the importer in the Philippines to benefit from preferential tariff rates, significantly reducing the overall cost of the transaction. Because accuracy and the reliability of documentation are paramount in customs audits, it is vital to maintain a thorough paper trail of the vehicle’s origin. For a seamless process, consulting with a Customs Broker or trade expert is highly recommended to ensure compliance with the specific administrative requirements of the AKFTA.