FTA Documentation: Is the Original Certificate of Origin Required or is a Copy Sufficient? Released

When importing goods under FTA preferential tariffs, it is important to distinguish between the requirements at the time of application and the requirements for post-clearance record-keeping. In summary, while a valid original (or its equivalent) must be available at the time of application, retaining a copy is generally sufficient for storage purposes once the application is processed.

1. Requirements at the Time of Application

When an importer applies for FTA preferential tariff treatment, a valid Certificate of Origin (C/O) must exist as the primary supporting document. Under the Customs Act and the FTA Special Act, the existence of a valid C/O is a mandatory requirement for tax benefits. While physical originals were traditionally required, most modern FTA agreements and regulations now recognize electronic certificates or scanned copies as equivalent to the original. The key factor is the validity and existence of the document at the time of application; importers must be able to present a verifiable original or equivalent document if the Customs Service requests it to confirm authenticity.

2. Document Retention After Customs Clearance

Once the import declaration is accepted and the preferential tariff is applied, most FTA agreements and domestic laws (such as the Special Act on the Implementation of FTA and its Enforcement Decree) allow for the storage of copies of the Certificate of Origin. This is intended to improve administrative efficiency and reduce the burden of document management for importers. While the mandate to keep physical originals has been relaxed, the principle remains that copies must be managed diligently so they can be submitted during a Post-Clearance Audit or Origin Verification.

3. Key Considerations for Storing Certificates of Origin

• Retention Period: According to Article 13 of the Customs Act and Article 14 of the FTA Special Act, the Certificate of Origin and related documents (contracts, invoices, bills of lading, etc.) must be kept for five years from the date the import declaration is accepted.
• Scope of 'Copy': A 'copy' typically includes photocopies, scanned files (such as PDFs), or faxed documents. The copy must clearly display all essential information, including issuance details, signatures (if required), item descriptions, and origin criteria. Blurred or damaged copies may lose their validity as evidence.
• Availability of the Original: Even when storing copies, it is prudent to have a system in place to request a re-issuance or verification of the original from the exporter or the issuing authority if necessary. Customs authorities may still request the original during a rigorous origin verification process.
• Risks of Non-Compliance: Failure to maintain or properly store the Certificate of Origin can lead to the denial of preferential tariffs, collection of back taxes, administrative penalties, and additional surcharges. This can negatively impact a company’s financial standing and customs compliance rating.

Conclusion

Importers utilizing FTA benefits should ensure that copies of the Certificate of Origin are securely stored for at least five years and periodically check that these copies remain legible and accurate reflections of the originals. Implementing a digital archiving system is a highly recommended approach to ensure documents can be retrieved and submitted promptly upon request.