Issuance of AKFTA Certificate of Origin for Used Car Exports to the Philippines by Non-Producers Released

You inquired about the feasibility of issuing a Certificate of Origin (C/O) under the ASEAN-Korea Free Trade Agreement (AKFTA) for used cars exported from Korea to the Philippines, specifically regarding the procedures when the exporter is not the producer. To summarize, even though the vehicles are used rather than new, a Certificate of Origin can be issued if the goods meet the AKFTA origin criteria. Furthermore, exporters who are not producers can obtain the certificate by following the appropriate legal procedures.

Eligibility of Used Vehicles under AKFTA

The AKFTA does not restrict the issuance of Certificates of Origin to new goods only. The decisive factor is whether the item satisfies the specific Rules of Origin (e.g., Wholly Obtained or Product Specific Rules) stipulated in the agreement to be recognized as Korean-origin goods. In the case of used automobiles, if the vehicle was manufactured in Korea, it qualifies under the Wholly Obtained (WO) criterion. Even if the vehicle has been traded multiple times as a used item, its intrinsic origin does not change; therefore, a Certificate of Origin can be issued.

Application Procedures for Non-Producers

When the exporter is not the producer, the application for a Certificate of Origin generally follows one of two methods:

• Direct Producer Application: The manufacturer (e.g., the automaker) applies directly. However, in the context of used car exports, it is rare for the original manufacturer to facilitate this.
• Exporter Application with Origin Confirmation: This is the most suitable method for your situation. The exporter obtains an Origin Confirmation Letter from the supplier (the dealer or individual seller) who provided the used car, and uses this document to apply for the C/O.

The Importance of the Origin Confirmation Letter

The most critical document in this process is the Origin Confirmation Letter. This is a document wherein the producer or supplier verifies that the goods are of Korean origin. Since it is often difficult to obtain this directly from the original manufacturer for used cars, the supplier (e.g., the used car dealer) must issue the confirmation based on evidence such as past purchase history, the Vehicle Registration Certificate, and the Certificate of Manufacture. This letter must explicitly state the vehicle's Model Name, Vehicle Identification Number (VIN), producer information, and a clear declaration of Korean origin.

Drafting the Origin Explanation Statement

Once you have received the Origin Confirmation Letter, you (the exporter) must prepare an Origin Explanation Statement. This is a self-substantiation document where the exporter proves the origin of the goods to the issuing authority (Customs or Chamber of Commerce). For used cars manufactured and circulated within Korea, you can justify the origin by applying the Wholly Obtained (WO) criterion, treating the vehicle as a wholly produced Korean good.

Required Supporting Documents

In addition to the above, the following documents are typically required:

• Export Declaration Certificate: Proof that the export has actually taken place.
• Commercial Invoice or Contract: Basic commercial documents specifying the terms of the transaction.
• Evidence Substantiating Origin: Documents proving the details in the Origin Explanation Statement, if requested by the issuing authority. For used cars, this includes the Vehicle Registration Certificate, Certificate of Manufacture, previous ownership records, or manufacturer data verifying the VIN.

Conclusion

Issuing a Certificate of Origin is contingent upon the export goods meeting AKFTA origin requirements. For Korean-manufactured used cars, determining origin is generally straightforward. However, the accuracy and reliability of the submitted documents are paramount. It is highly recommended to meticulously verify and archive key documents, such as the Origin Confirmation Letter, to ensure compliance. Since this certificate allows for preferential tariff treatment in the Philippines, correctly following these procedures is essential for cost savings. For precise preparation, consulting with a customs expert is advisable.