The Regional Comprehensive Economic Partnership (RCEP) is a free trade zone among 15 countries and regions in the Asia-Pacific region, including Japan, and promotes tariff reductions and supply chain integration. It is also making a significant contribution to Japan's strengthening of its competitiveness in exports and imports to RCEP countries.
1. Key points of the declaration system
DO (Declaration of Origin) is a method in which the certified exporter declares the country of origin themselves, allowing for a quick and simple procedure. On the other hand, if you want to ensure greater peace of mind and reliability, you can also use a third-party certification system. This is a method in which the Japan Chamber of Commerce and Industry (JCCI) issues a certificate of origin, and as it is certified by a third party other than the parties involved in the trade, it has the advantage of increasing its authenticity and legal credibility. Therefore, if you want to "finish the process with peace of mind," we recommend using the third-party certification system.
2. Tariff rates under RCEP
Under RCEP, preferential tariff rates set out in the agreement are applied to originating products based on the HS code set for each product. Furthermore, if RCEP is utilized effectively, there is a high possibility that some products may be able to enjoy significant tax reductions or even complete tax exemptions. For example, peach jam (HS code 2007.99) was previously subject to tariffs of up to 30-34% between Japan and Thailand, but under RCEP this will be reduced to zero, significantly improving price competitiveness.
Even for items that are not subject to duty exemptions, the RCEP agreement provides for gradual tariff reductions for many items. For example, tariffs on most imports will be reduced within a certain period after the agreement comes into effect, and ultimately, more than 90% of tariff lines are expected to have zero tariffs.
3. Recent system reforms (2023 and beyond)
Transition to HS2022 (effective January 2023, 1)
RCEP member countries have agreed to standardize the HS code on Certificates of Origin (COO/DO) to HS2023 from January 1, 1. Japan is also being asked to follow suit.
Transitional measures (use in conjunction with HS2012)
If DOs prepared under the old standard (HS2012) are submitted after 2023, they may be accepted in exceptional cases if the country of origin is clear, but it is recommended that they be re-prepared under HS2022 whenever possible.
In order to respond appropriately to these system revisions, it is essential to have the expertise to properly prepare documents while understanding the practical operations and exceptions of each country. We support the preparation of Certificates of Origin in line with the latest HS revisions and RCEP operations, and provide support from document preparation to application procedures.
Summary
The RCEP third-party system provides a highly reliable method for Japanese companies to efficiently certify country of origin. Accurate HS code entry and a determination of origin based on "CTC or RVC 40%" are required as prerequisites for applying tariff rates. By thoroughly understanding the system and taking appropriate measures, you can smoothly declare country of origin under the RCEP and take advantage of preferential tariff treatment. Please contact us if you have any questions or need support.
