Trade in Goods Guide - China Market

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constitute professional advice. IE Singapore or its employees shall not be held responsible for any consequence arising
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Trade in Goods Guide to using ASEAN-CHINA FTA / CHINA-SINGAPORE FTA
to export to China

China in this text refers to China Mainland only. (Hongkong and Macau not inclusive)

Step1 : Knowing your HS Code
Check for the China HS (Harmonised System) Code of your product. China HS code will
be required to find out your products MFN rate
1
or tariff concession rate
2
when
importing to China. You may check with either the China Customs or your importer in
China to find out your products HS Code in China.

To find Singapores HS code of your product, please refer to Singapore Customs.
http://www.customs.gov.sg/leftNav/trad/per/Classification+of+Goods.htm

Step 2 : Getting the MFN Rate and Tariff Concession Rates
With the HS code, check for
1) Chinas MFN rate for your product.
2) Tariff concession rates given to your product.

You can check with the China Customs or China importing party for the latest import
duty (MFN Rate) imposed on your product.

Note: If the product has 0% import duty, FTAs may not be beneficial to you in terms of
tariff savings.

For a quick check, you can make use of the following Tariff Calculators:
China MofCom website (Tariff Calculator):
http://ftanew.mofcom.gov.cn/ftaEn/FTABrowser.jsp

Singapore FTA website (Tariff Calculator):
http://www.fta.gov.sg/tariff_calculator.asp

The legal text for ASEAN-China FTA Tariff Reduction Schedule can be found in the link
below.
http://www.asean.org/19105.htm

China-Singapore FTA provides earlier reduction/elimination for a list of products under
ASEAN-China FTA. The list can be found in the link below.
http://www.fta.gov.sg/csfta/annex1a_chinatariffeliminationschedule.pdf

1
MFN (Most Favoured Nation) Rate refers to the tax payable for the purpose of importing a product into a
WTO Country.
2
Tariff Concession Rate refers to the import duty which would be applicable to a product which is
imported under a specific FTA.
Step 3 : Compare MFN and Tariff Concession Rates.
Compare MFN and Tariff Concessions Rates to find out if you will be able to benefit
from any of the FTA.

Step 4: Check the Rules of Origin for the FTA which is beneficial to you
To qualify for the FTA tariff concession rate, check that the product satisfies the Rules of
Origin
3
(ROO).

For ACFTA:

To be considered as Originating Goods under ACFTA,

1. Your product will be considered originating if it is Wholly Obtained or
Produced in Singapore according to Rule 3 under ACFTA Rules of Origin
Legal Text. http://www.fta.gov.sg/acfta/annex3-rulesoforigin_new.pdf

2. If your product is not Wholly Obtained,

a. Check if your product falls under Product Specific Rules according to
Rule 6 of ACFTA Rules of Origin Legal Text. Please refer to
Attachment B for the list of products under Product Specific Rules.
i. Products under Exclusive Rule/Criterion will have to follow
the specific criteria defined.
ii. Products under Alternative Rule are given the choice between
the Origin Criteria stated or ACFTA General Rule.

b. If your product does not falls under Product Specific rules, it will have
to meet the ACFTA General Rule of having Regional Value Content
of 40% FOB price or more; according Rule 4 of the ACFTA Rules of
Origin Legal Text. Accumulation of originating raw materials from
other FTA partners is allowed according to Rule 5.

Please take note that Operations and Processes as specific according to:
1. Rule 7 under ACFTA Rules of Origin Legal Text and,
2. Singapore Customs Minimal Operation
http://www.customs.gov.sg/NR/rdonlyres/01FDFC8A-F652-4BDD-
A8A3-61D7A5AAA07B/12922/MinimalOP.doc
will not be taken into account when determining the Rules of Origin.

3
Rules of Origin is a set of criteria which determines if your product qualifies as originating product under
a specific FTA.
For CSFTA:
To be considered as Originating Goods under CSFTA,

1. Your product will be considered originating if it is Wholly Obtained or
Produced in Singapore according to Article 12 under CSFTA Rules of Origin
Legal Text. http://www.fta.gov.sg/csfta/chapter4_rulesoforigin.pdf

2. If your product is not Wholly Obtained,

a. Check if your product falls under Product Specific Rules according to
Article 15 of CSFTA Rules of Origin Legal Text. Please refer to
Annex 2: Product Specific Rules; for the list of products under Product
Specific Rules.
http://www.fta.gov.sg/csfta/annex2_product%20specific%20rules.pdf
i. Products under Exclusive Rule/Criterion will have to follow
the specific criteria defined.
ii. Products under Alternative Rule are given the choice between
the Origin Criteria stated or CSFTA General Rule.

b. If your product does not falls under Product Specific rules, it will have
to meet the CSFTA General Rule of having Regional Value Content of
40% FOB price or more; according Article 13 of the CSFTA Rules of
Origin Legal Text. Accumulation of originating raw materials from
other FTA partners is allowed according to Article 14.

Please take note that Operations and Processes as specific according to:
1. Article 17 under CSFTA Rules of Origin Legal Text and,
2. Singapore Customs Minimal Operation
http://www.customs.gov.sg/NR/rdonlyres/01FDFC8A-F652-4BDD-
A8A3-61D7A5AAA07B/12922/MinimalOP.doc
will not be taken into account when determining the Rules of Origin.

Step 5: Comply with the documentation procedures
If your product is able to benefit from the Preferential Concessions and meet the Rules of
Origin, you may start the documentation procedures to apply for relevant Preferential
Certificate of Origin.

1) Register your factory with Singapore Customs.
2) Submit Manufacturing Cost Statement for approval.
3) Apply for Preferential Certificate of Origin for each shipment.

For information on customs documentation, please refer to
http://www.customs.gov.sg/leftNav/trad/Certificates+of+Origin.htm

Step 6: Sent product and Preferential Certificate of Origin to Importer
Once you have completed the above 5 steps, your product would be ready to enjoy the
preferential concessions. Sent your products and its original Preferential Certificate of
Origin (PCO) to your importer. Your importer will be able to enjoy the preferential
concessions upon showing China Customs the PCO when clearing the products.

Please keep all your documents for any post verification according to the period stated
below:
For ACFTA = 3 Years
For CSFTA = 3 Years

Legal Texts
Legal Texts for both FTAs are available for detailed information.

ACFTA Legal Texts can be found at the link below.
http://www.fta.gov.sg/fta_acfta.asp?hl=2

CSFTA Legal Texts can be found at the link below.
http://www.fta.gov.sg/fta_csfta.asp?hl=27
General Steps in use Singapores FTA with China
for Exports (Flowchart)
* For a quick check, you can make use of the following:
Singapore FTA website (Chinas Preferential Tariff Rate and Rules of Origin):
http://www.fta.gov.sg/tariff_calculator.asp

China MofCom website (Chinas Import Duty):
http://ftanew.mofcom.gov.cn/ftaEn/FTABrowser.jsp

** For Rules of Origin on China-Singapore Free Trade Agreement or ASEAN-China Free Trade Agreement, Please refer
to respective flow chart.
Yes
No
No
Yes
Steps to using Singapores FTA with China

Step 1: Know your products HS Code
Step 2: Find out normal import duty rate (MFN Rates) and
your products concession rate for intended FTA *
Step 5: Comply with documentation procedures
Step 3: Compare if there is
monetary benefit in using FTA

Step 4: Check and meet the
Rules of Origin for your
product **

Step 6: Sent product and Preferential
Certification of Origin to Importer
No monetary
Benefit
Cannot Use
ASEAN China Free Trade Agreement
Rules Of Origin for Exports (Flowchart)
* Please refer to Attachment B of http://www.fta.gov.sg/acfta/annex3-rulesoforigin_new.pdf for the list of
products and their criteria under Product Specific Rules.

** Regional Value Content = x 100%

*** Non-originating materials are materials which do not qualify under the specific FTA which your product
would be exported under.
No

No
Yes
Yes
No

No
No
Yes
Yes
ACFTA Rules of Origin (ROO)
Is your product Wholly
Obtained or manufactured
within Singapore?

Does your product
falls under Product
Specific Rules? *
May Qualify
Does your product meet
Regional Value Content
of 40% FOB price? **
Does your product
falls under and
meet Exclusive
rule/Criterion *

Does not
qualify
of 40% FOB price ** or
the Alternative
rule/Criterion *

Yes
Does not
qualify
May Qualify
May Qualify
May Qualify
China Singapore Free Trade Agreement
Rules Of Origin for Exports (Flowchart)

* Please refer to Annex 2, http://www.fta.gov.sg/csfta/annex2_product%20specific%20rules.pdf for the list of
products and their criteria under Product Specific Rules.

** Regional Value Content = x 100%

*** Non-originating materials are materials which do not qualify under the specific FTA which your product
would be exported under.
No

No
Yes
Yes
No

No
No
Yes
Yes
CSFTA Rules of Origin (ROO)
Is your product Wholly
Obtained or manufactured
within Singapore?

Does your product
falls under Product
Specific Rules? *
May Qualify
of 40% FOB price? **
Does your product
falls under and
meet Exclusive
rule/Criterion *

Does not
qualify
of 40% FOB price ** or
the Alternative
rule/Criterion *

Yes
Does not
qualify
May Qualify
May Qualify
May Qualify

Trade in Goods Guide - China Market

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