FAQ Rules Of Origin (ROO)

 

POO is a document used to certify the origin of a good. POO can be issued in various forms, including Preferential Certificate of Origin (PCO) or Declaration of Origin (DOO) as stipulated in respective Free Trade Agreements.

2.      What is Certificate of Origin (CO)?

​CO is a certificate issued by a competent authority of the exporting country that certifies the origin of the goods. There are 2 types of certificates which are Preferential Certificate of Origin (PCO) and Non-Preferential Certificate of Origin (NPCO).

3.      What is Certificate of Origin (CO)?

​CO is a certificate issued by a competent authority of the exporting country that certifies the origin of the goods. There are 2 types of certificates which are Preferential Certificate of Origin (PCO) and Non-Preferential Certificate of Origin (NPCO).

4.      What is Most-Favoured-Nation (MFN) rate?

​MFN rate is a normal non-discriminatory rate charged on imports (excludes preferential tariff rate under free trade agreements).

5.     What is Preferential Tariff Treatment?

​Preferential Tariff Treatment means the rates of import duty published in the order made under section 11 Customs Act 1967 applicable to originating goods of the exporting country in accordance with the relevant trade agreements.

6.      What is Preferential Certificate of Origin (PCO)?

Preferential Certificate of Origin means a specific document identifying the goods, in which the issuing authority empowered to issue such document certifies expressly that the goods to which the certificate relates originate in a specific country in accordance with the rules of origin adopted within the framework of international or regional agreements in force.

7.      What is Free Trade Agreement (FTA)?

FTA is an agreement made between two or more countries under which countries involved are given preferential market access.

 
8.      How many Free Trade Agreements (FTAs) is enforced in Malaysia?

​Thus far, there are 11 multilateral and 7 bi-lateral FTAs enforced in Malaysia. Below is a list of FTAs enforced. ​

​​Information regarding the agreements can be accessed via Ministry of Investment, Trade and Industry (MITI)  website (https://fta.miti.gov.my/index.php).

​Orders related to preferential tariff rate can be accessed via Federal Legislation Portal (https://lom.agc.gov.my/)

Certified Exporter is an authorized exporter appointed by competent authority of the exporting country to issue Declaration of Origin on the goods exported. 

Declaration of Origin (DOO) document is an origin declaration made on invoice or Certification of Origin under the CPTPP (except for Brunei and Vietnam) issued by Certified Exporter, Approved Exporter, exporter or producer.

However, if the DOO cannot be made out on the invoice at the time of exportation, it may be made out on any of the following commercial documents such as billing statement, delivery order or packing list.

Importers can enjoy preferential tariff treatment by submission of the following documents at the time of importation:

List of proof of origin based on FTAs as follows:

The importer is required to make a claim for preferential tariff treatment at the time of importation. However, if the Proof of Origin Document could not be submitted at the time of importation, importer is required to make a claim for preferential tariff treatment by notifying their intention (in writing) to submit the Proof of Origin Document after importation. Company shall undertake/has confirmed that the goods imported is originating from FTA member country and has complied to rules of origin requirement under the relevant FTA. The Proof of Origin Document shall be submitted within one (1) year from the date of importation for refund subject to the provision stipulated in the relevant FTAs. Referring to the FTAs currently in force, application for refund of import duties is only allowed under CPTPP, RCEP, MCFTA, and MNZFTA.

For example, to apply for duty refund under CPTPP preferential tariff treatment, importer is required to make a claim by notifying their intention to submit the CPTPP Certification of Origin after importation. The notification shall in written format by providing a clause in the Customs Form Number 1 (K1) that the importer undertake/has confirmed that the goods imported is originating from CPTPP country and has complied to rules of origin requirement under CPTPP. The CPTPP Certification of Origin will be submitted within a year from date of importation in accordance with domestic laws and procedures.

14.   Can importer enjoy preferential tariff treatment if the information in the Proof of Origin (POO) and import declaration (Customs Form 1 - K1) declared are different?

​Importer needs to ensure all information of the imported goods in the POO are consistent with the import declaration and supporting documents such as invoice and Bill of Lading.

15.    For Proof of Origin (POO) under verification, can the importation be released from customs control?

The importation can be released after payment of duty of MFN rate has been made. Importers are allowed to submit bank guarantee for difference between MFN and preferential tariff rate.

16.   What actions will be taken if there is a failure to declare full and true declaration information regarding the country of origin during importation, in accordance with the provisions under Section 79(1) of the Customs Act 1967, or if there is a failure to submit valid supporting documents in accordance with the provisions under Section 100 of the Customs Act 1967?

It is an offence under Section 133 of the Customs Act 1967, which may result in a fine not exceeding RM5,000 or imprisonment for a term not exceeding seven (7) years, or both.

HS Version :​

17.       ​​​For situation where the HS code in the Proof of Origin (POO) cannot be found when importer or appointed agent make a submission of ​​import declaration, the importer or appointed agent would need to correlate the HS version in the POO to match the HS code version offered in the FTA. The HS version of respective FTA can be referred in the Customs Duty Order of respective FTAs.

Example: The Form MJEPA is issued using the HS version of 2002 from Japan, whereas the MJEPA Customs Duty Order gazetted is using the HS version of 2007. The importer of appointed agent would need to perform correlation of HS version from 2002 to 2007 to be submitted in the import declaration.

18.    What are the requirements for an export commodity to be declare as MALAYSIA origin?

To declare a commodity as MALAYSIA origin, the manufacturing process of the good must comply with the Non-Preferential Rules of Origin criteria set by MITI or comply with the origin criteria of relevant FTA.

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At the time of exportation:

19.    How exporters apply for a Preferential Certificate of Origin (PCO) or Non-Preferential Certificate of Origin (NPCO)?

• Malaysian exporters can apply for a PCO through Ministry of Investment, Trade and Industry (MITI).
• Malaysian exporters can apply for NPCO through Chambers and Association authorised by Ministry of International Trade and Industry (MITI). The list of issuing authority that issue NPCO can be referred MITI's Web Portal.

​Information on Preferential Certificate of Origin (PCO) or Non-Preferential Certificate of Origin (NPCO) application for export purpose can be referred in MITI website.

20.   How do exporters apply for the Certified Exporter status? 

​The application can be made through Ministry of Investment, Trade and Industry (MITI). ​