It might be confusing to navigate the complexities of exporting goods from China to ASEAN. There is a long history of free-trade agreements that China and ASEAN have negotiated. The Framework Agreement on China-ASEAN Comprehensive Economic Cooperation, which was signed in November 2002, was the earliest of these agreements. The most recent agreement was signed in August 2009 and pertains to investment.
To benefit from the free-trade agreement when importing goods, the China-ASEAN Free Trade Certificate of Origin (E-FORM) is now valid for exportations to the 10 main countries that include Indonesia, Thailand, Malaysia, Vietnam, the Philippines, Singapore, Brunei, Cambodia, Myanmar, and Laos. However, it's crucial to adhere to the applicable E-FORM requirements.
The 10 countries mentioned before can benefit from preferential tariffs, which can result in up to a 5% lower tax rate. It is important to note that the "Trade in Goods Agreement" defines the sample format of certificates of origin that has to be respected. Additionally, the "Trade in goods agreement" Protocol II requires a description of the contents that has to be mentioned on the back page. As a result, your supplier must give you an E-form, which the import service will verify and check. It is crucial to beware of errors in the E-form, as they can result in paying taxes. This is why it is important to have the E-form checked before the scheduled departure.
It is vital to remember that the E-form exempts duties and taxes, but VAT is still mandatory. When exporting goods from China into ASEAN, it is important to consider factors such as the country's regulations and tariffs. It is also important to have a reliable supplier who can provide you with the necessary documentation, such as the E-form.
Additionally, it is crucial to ensure that the E-form is accurate and has been checked before the scheduled departure to avoid any tax-related issues. It is also important to stay updated with any changes or updates in the free-trade agreements between China and ASEAN. By staying informed and taking the necessary precautions, you can successfully export goods from China into ASEAN.