Korea-China FTA: Defining the Shipped Date for Retroactive CO Issuance on Transshipments via Hong Kong Released

When importing cargo from China to Korea via Hong Kong, the "shipped date" used as the baseline for the retroactive issuance of the Korea-China FTA Certificate of Origin (CO) is the date of loading at the port of initial departure in China. This interpretation is grounded in the "Direct Consignment Rule," a core principle of Free Trade Agreements.

1. The Principle of Direct Consignment and Transit Documents

FTAs grant preferential tariff treatment to facilitate trade between signatory countries. To prevent non-originating goods from being substituted or altered during transit through non-signatory countries, the agreement requires "direct consignment." However, goods transiting through a third party (e.g., Hong Kong) can still be considered directly transported under specific conditions.

In such cases, the most critical document is the Non-manipulation Certificate (or Transit Certificate) issued by the competent authority in the transit country (e.g., Hong Kong Customs). This document proves that the cargo was merely stored or transferred to another mode of transport without undergoing any processing or modification. Upon submission of this document, the cargo is recognized as directly transported, and the "shipped date" for CO issuance remains the date the goods were loaded in China, the country of origin.

2. Distinguishing B/L Dates from FTA Shipped Dates

It is common for the Bill of Lading (B/L) to indicate a shipping date from Hong Kong. This often occurs in logistics operations where goods are moved from a Chinese port via a Feeder Vessel to a hub like Hong Kong, then transferred to a Mother Vessel for the final leg to Korea. While the final B/L may reflect the Hong Kong departure, the FTA Rules of Origin define the "shipped date" as the date the originating goods were first loaded for export in the originating country (China).

Therefore, relying solely on the Master B/L date can be misleading. To ascertain the correct date, one must carefully review the Commercial Invoice issued by the Chinese exporter, container terminal receipts, or the shipped date on the Feeder Vessel's B/L.

3. Deadlines for Retroactive Issuance

The Korea-China FTA stipulates that a Certificate of Origin should be issued prior to or at the time of shipment. However, it allows for retroactive issuance if the certificate is issued "within 7 working days from the shipped date." Note that "7 working days" excludes weekends and public holidays.

Crucially, this timeline is calculated starting from the initial shipment date in China, not the transit date in Hong Kong. If the CO is not issued and sent by the Chinese exporter within 7 working days of the initial Chinese departure, the importer risks losing FTA benefits and may be subject to the general tariff rate.

4. Conclusion and Recommendations

For imports routing through China-Hong Kong-Korea, importers should not be misled by the Hong Kong shipping date on the B/L. To ensure compliance and secure tariff benefits, follow these steps:

• Accurately verify the initial shipped date in China.
• Ensure the Chinese exporter obtains the CO within 7 working days of that initial date.
• Prepare supporting documents, such as the Non-manipulation Certificate, to prove the transit status to customs authorities.