The updates to Article 136 of Announcement 136 are seen as further improvements to preferential rules of origin under the ASEAN-China Free Trade Agreement and the implementation of the ASEAN-China Free Trade Area. For more information on this topic or to learn more about KPMG`s commercial and customs services, please contact: In accordance with the rules of origin framework, merchants must first comply with the PSR list for certain rules, in order to define the rules of origin applicable to products other than WO or PE products. If the products are not included in the PSR list, you will then determine whether the products are applicable to (i.e. included in the HS codes of the 46 chapters) and comply with the CTH rules or whether they meet the criteria of the Regional Value Rules (RVC). After 31 August 2019, all parties to the ASEAN-China Free Trade Agreement will be required to adopt the standard international A4 E format form. The updated Form E has been improved and has a simplified procedure for filling out the information. In keeping with the current regional and global economic landscape, Form E was signed on 22 November 2015 at the 27th ASEAN Summit to amend the framework agreement on comprehensive economic cooperation between ASEAN and China. The modernization of ACFTA aims to further streamline and improve economic cooperation, including changes to the agreement on trade in goods, services, investment and economic and technical cooperation (ECOTECH). KPMG`s logo and name are trademarks of KPMG International.
KPMG International is a Swiss cooperative that acts as a coordination unit for a network of independent member companies. KPMG International does not offer audits or other customer services. These services are provided exclusively by member companies located in their respective geographic areas. KPMG International and its member companies are legally separate and distinct entities. They are not and nothing of what it contains should be interpreted in such a way that these companies fall within the relationship between parent companies, subsidiaries, agents, partners or joint ventures. No member company has any authority (real, apparent, implied or otherwise) to hire or hire KPMG International or a member company in any way. The information contained in it is general in nature and is not intended to respond to the circumstances of a particular individual or corporation. While we strive to provide accurate and timely information, there is no guarantee that this information will be correct at the time of receipt or that it will be correct in the future. No one should react to this information after a thorough review of the particular situation without appropriate technical assistance.
For more information, please contact KPMG`s Federal Tax Legislative and Regulatory Services Group at 1 202 533 4366, 1801 K Street NW, Washington, DC 20006. As part of the adjustment of the rules of origin, in addition to changes to the rules of origin framework, a number of changes have been made to other rules and criteria. For example, the definition of transaction price was introduced by the WTO assessment agreement to determine the price of materials under the RVC measure; Encapsulation in the electronics industry has been excluded from the criteria for minimal operations or processes; the simple assembly of products under Chapters 27 (mineral products) and chapters 84, 85 and 90 (mechanical and electronic products) was excluded from the original character; and the definition of “easy” was specified in the SRS. Businesses must consider the additional criteria and the influence these changes will have on the original destination. ACFTA, launched on January 1, 2010, provided the necessary platform for deepening economic engagement. Economic relations intensified following the signing of the framework agreement and subsequently the ASEAN-China Free Trade Agreement in 2004, which provides a solid basis for increased trade and investment flows between ASEAN and China.