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Rules of Origin (ROO)


 Continuous improvements are being undertaken on the ROO and Operational Certification Procedures (OCP) to simplify the rules and trading procedures under the ACFTA. These include the possibility of adopting the:
· Back-to-Back Certificate of Origin arrangement to facilitate exports of partial shipments, of which the bulk-break activities are conducted in an intermediate ACFTA party; and
· Third-Party reinvoicing arrangement, whereby sales invoice to the importer are allowed to be issued by companies located in a non-ACFTA territory.
ASEAN and China has also adopted Product Specific Rules (PSR) for the following products:
textiles and apparel;
plastic products;
footwear products;
iron and steel products;
preserved fish canned products;
palm oil and ice cream; and
jewelry product.
With the adoption of PSR, ASEAN and Chinese exporters/ manufacturers now have the flexibility of choosing the most convenient rule in meeting the origin criteria of the products i.e., either 40% Regional Value Content (RVC) or PSR, in order to enjoy the ACFTA preferential rate.
In order for Malaysian exporters to enjoy the tariff concessions offered by China under the ACFTA, Certificates of Origin (Form E) must be obtained from MITI.

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