Indonesian Form E refunds frequently, exporters must pay attention!
- Author:Kyrie
- Source:Shipping Network
- Release Date:2019-12-10
Refund certificate inquiry is the verification of the certificate of origin issued by the customs of the importing country, including random checks and authenticity verification.
Consequences of returning the certificate: The return of the certificate means that China's export goods are blocked in the customs clearance of the other party, or are subject to cross-examination, detention, or even enjoy the preferential tax rate that the other country should give to our products in accordance with the relevant agreement, and bring import and export enterprises Economic losses in warehousing, logistics and customs duties, deposits, etc.
The content of the inquiry for withdrawal
Country of origin
According to the standard of origin agreement of the ASEAN agreement, the situation of truthful declaration of the goods must not be convenient for the moment to fill in "WO" (complete origin).
Cargo description
Try to declare separately according to the product's specifications and models. Some ASEAN Customs do not accept product merger declarations, even if the HS code is the same. In addition, please note that each ASEAN certificate can declare a maximum of 20 item names. If the quantity exceeds the limit, a separate invoice must be issued and another certificate must be issued.
Direct shipping rules
The transshipment cargo is required to obtain a non-reprocessing certificate at the transit customs. All goods that are stopped or transshipped through Hong Kong must be stamped with the unprocessed certificate by the Hong Kong Customs or the Hong Kong Inspection Company.
manufacturer
Article 5 of the FORM E (ASEAN Certificate) endorsement stipulates that the manufacturer's name of the product must be declared under the final terminator at the end of the description of the goods. At present, the Indonesian Customs strictly checks this content, and adopts the process of refunding the exporter's undeclared name of the manufacturer.
Exporter
The ASEAN certificate consignor refers to the applicant, that is, the exporter, of the country that issued the certificate of origin. And double-headed situations such as O / B or ON BEHALF OF must not appear in this column.
(Indonesia) reasons for refund
Indonesia's unilateral trade protectionism rises
In recent years, Indonesian customs have used the inquiry of origin certificate return as a means of trade protection. With the rapid development of China's trade with ASEAN, the market share of Chinese exports in Indonesia continues to expand, causing Indonesian officials' attention and even anxiety. Indonesian Customs has delayed or even cancelled tariff preferences by means of frequent repatriation investigations on China's export goods, and has set obstacles to Chinese exports. Since 2012, Indonesia's permit renewal inquiry has continued to increase, much higher than the rate of revocation in other ASEAN countries, and the reasons for revocation are also varied, from questioning the visa official's handwriting and origin standards to the recent questioning of the certificate format. Meeting the endorsement requirements of the certificate has caused great distress and losses to Chinese export enterprises. The randomness of Indonesia's return permit inquiry shows the country's clear intention to set up trade barriers.
Differences in understanding the requirements for the certificate of origin
For example, in Indonesia's refund, there is a question that the format of the certificate does not meet the requirements of the endorsement of the certificate, that is, the model name and manufacturer of each product should be marked in the description box of the product name. Taking export fasteners as an example, a batch of exported goods often contains dozens of different types of bolts and nuts, and the models are separately listed one by one, and the actual operation is tedious. Regarding the requirement to mark the manufacturer on the certificate, many trading companies are reluctant to worry that foreign customers will directly go to the manufacturer for trade cooperation and lose customers. And ASEAN countries have different requirements for the filling of certificates of origin, and the other nine countries of the ten ASEAN countries have not returned their certificates or refused to grant tariff preferences.
Recommended actions-
The first is to complete the columns of the certificate of origin in strict accordance with Indonesian customs requirements. Be as detailed and detailed as possible, and you cannot blindly follow the customer's requirements in the columns such as the invoice amount, especially the middleman trade involving third countries must be filled in truthfully.
The second is to choose strong and reputable Indonesian customers, strengthen communication with customers, and obtain relevant Indonesian customs policy requirements from multiple parties.
Third, as far as possible, products exported to Indonesia should be signed at FOB prices to avoid Indonesian customs clearance risks.
Fourth, the goods transiting to Hong Kong, China should take the initiative to go to the Hong Kong Inspection and Quarantine Company to apply for "unprocessed certificate" to meet the direct shipping rules in the China-ASEAN Free Trade Area Agreement of Origin.
Fifth, a document file related to the certificate of origin was established in accordance with the requirements and kept for three years, so as to avoid the failure to provide the evidence required by Indonesian customs when encountering an inquiry.
view--
At present, the Indonesian Customs adopts measures such as suspension of preferential tariff treatment, suspension of release, collection of deposits or taxation on goods that are subject to refunds and inquiries, and a few months later, tax refunds or other treatments are made according to investigation responses from relevant parties. Indonesian customers have suffered huge losses even though they have finally obtained tariff reductions through the official reply of our visa agency. In fact, it is estimated that many companies have encountered this situation. When customers tell us that there is a problem with the certificate of origin, we do not know how to do it. There is no need to panic. There is a way: According to the bilateral trade agreement, the importing country has issued a certificate of origin. If the information is questioned, a certificate of withdrawal shall be issued for verification. Therefore, when you encounter the issue of certificate of origin, you should ask the customer to urge the local customs to issue a letter of return for the inquiry as soon as possible.
Consequences of returning the certificate: The return of the certificate means that China's export goods are blocked in the customs clearance of the other party, or are subject to cross-examination, detention, or even enjoy the preferential tax rate that the other country should give to our products in accordance with the relevant agreement, and bring import and export enterprises Economic losses in warehousing, logistics and customs duties, deposits, etc.
The content of the inquiry for withdrawal
Country of origin
According to the standard of origin agreement of the ASEAN agreement, the situation of truthful declaration of the goods must not be convenient for the moment to fill in "WO" (complete origin).
Cargo description
Try to declare separately according to the product's specifications and models. Some ASEAN Customs do not accept product merger declarations, even if the HS code is the same. In addition, please note that each ASEAN certificate can declare a maximum of 20 item names. If the quantity exceeds the limit, a separate invoice must be issued and another certificate must be issued.
Direct shipping rules
The transshipment cargo is required to obtain a non-reprocessing certificate at the transit customs. All goods that are stopped or transshipped through Hong Kong must be stamped with the unprocessed certificate by the Hong Kong Customs or the Hong Kong Inspection Company.
manufacturer
Article 5 of the FORM E (ASEAN Certificate) endorsement stipulates that the manufacturer's name of the product must be declared under the final terminator at the end of the description of the goods. At present, the Indonesian Customs strictly checks this content, and adopts the process of refunding the exporter's undeclared name of the manufacturer.
Exporter
The ASEAN certificate consignor refers to the applicant, that is, the exporter, of the country that issued the certificate of origin. And double-headed situations such as O / B or ON BEHALF OF must not appear in this column.
(Indonesia) reasons for refund
Indonesia's unilateral trade protectionism rises
In recent years, Indonesian customs have used the inquiry of origin certificate return as a means of trade protection. With the rapid development of China's trade with ASEAN, the market share of Chinese exports in Indonesia continues to expand, causing Indonesian officials' attention and even anxiety. Indonesian Customs has delayed or even cancelled tariff preferences by means of frequent repatriation investigations on China's export goods, and has set obstacles to Chinese exports. Since 2012, Indonesia's permit renewal inquiry has continued to increase, much higher than the rate of revocation in other ASEAN countries, and the reasons for revocation are also varied, from questioning the visa official's handwriting and origin standards to the recent questioning of the certificate format. Meeting the endorsement requirements of the certificate has caused great distress and losses to Chinese export enterprises. The randomness of Indonesia's return permit inquiry shows the country's clear intention to set up trade barriers.
Differences in understanding the requirements for the certificate of origin
For example, in Indonesia's refund, there is a question that the format of the certificate does not meet the requirements of the endorsement of the certificate, that is, the model name and manufacturer of each product should be marked in the description box of the product name. Taking export fasteners as an example, a batch of exported goods often contains dozens of different types of bolts and nuts, and the models are separately listed one by one, and the actual operation is tedious. Regarding the requirement to mark the manufacturer on the certificate, many trading companies are reluctant to worry that foreign customers will directly go to the manufacturer for trade cooperation and lose customers. And ASEAN countries have different requirements for the filling of certificates of origin, and the other nine countries of the ten ASEAN countries have not returned their certificates or refused to grant tariff preferences.
Recommended actions-
The first is to complete the columns of the certificate of origin in strict accordance with Indonesian customs requirements. Be as detailed and detailed as possible, and you cannot blindly follow the customer's requirements in the columns such as the invoice amount, especially the middleman trade involving third countries must be filled in truthfully.
The second is to choose strong and reputable Indonesian customers, strengthen communication with customers, and obtain relevant Indonesian customs policy requirements from multiple parties.
Third, as far as possible, products exported to Indonesia should be signed at FOB prices to avoid Indonesian customs clearance risks.
Fourth, the goods transiting to Hong Kong, China should take the initiative to go to the Hong Kong Inspection and Quarantine Company to apply for "unprocessed certificate" to meet the direct shipping rules in the China-ASEAN Free Trade Area Agreement of Origin.
Fifth, a document file related to the certificate of origin was established in accordance with the requirements and kept for three years, so as to avoid the failure to provide the evidence required by Indonesian customs when encountering an inquiry.
view--
At present, the Indonesian Customs adopts measures such as suspension of preferential tariff treatment, suspension of release, collection of deposits or taxation on goods that are subject to refunds and inquiries, and a few months later, tax refunds or other treatments are made according to investigation responses from relevant parties. Indonesian customers have suffered huge losses even though they have finally obtained tariff reductions through the official reply of our visa agency. In fact, it is estimated that many companies have encountered this situation. When customers tell us that there is a problem with the certificate of origin, we do not know how to do it. There is no need to panic. There is a way: According to the bilateral trade agreement, the importing country has issued a certificate of origin. If the information is questioned, a certificate of withdrawal shall be issued for verification. Therefore, when you encounter the issue of certificate of origin, you should ask the customer to urge the local customs to issue a letter of return for the inquiry as soon as possible.
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