On The Perfection Of The Rules Of Origin Of China-Asean Free Trade Area

The Regional Comprehensive Economic Partnership(RCEP)serves as an "integrator" of economic and trade rules within the region,bringing together the standards for enforcing origin regulations among its 15 member countries.In contrast to the China-ASEAN Free Trade Area’s(CAFTA)rules of origin,the RCEP’s are more relaxed and practical.This is due to five key differences between the two sets of regulations.In terms of origin standard,most goods under RCEP are permitted to choose specific origin criteria,and there are two methods available for calculating regional value.On the other hand,CAFTA only allows a select few goods to apply origin criteria,and there is only one method for calculating regional value.In terms of accumulative rules,RCEP covers a much larger geographical scope than CAFTA,and the rules can also apply a wider range of origin criteria.Regarding micro-processing and micro-content rules,RCEP provides a more comprehensive list of micro-processing details and includes indirect materials that are not covered by CAFTA.As for direct transport rules,CAFTA mandates an explanation for transit transport,whereas RCEP not only removes this obligation but also outlines more exceptions to preserve the origin status.Regarding certificates of origin,RCEP’s back-to-back rules of origin represent an improved iteration of certificates of flow.Additionally,the fully autonomous declaration mechanism goes beyond the restrictions of CAFTA,which only permits official declarations.Based on the experience gained through the RCEP and the realities of the CAFTA,it is recommended that the rules of origin for CAFTA should gradually shift towards utilizing origin criteria based on tariff classification change criteria.Additionally,it is suggested that the AD valorem percentage criteria and processing procedure criteria be updated,diagonal accumulation be increased,and a sensitive product list be established,refining the criteria for minor processing,eliminating the subjective certification requirement for direct transport,and streamlining the certification of origin process.