South African exporters can now apply for certificates of origin for qualifying exports to China after SARS published the application process for China’s zero-tariff preference scheme earlier this week.
The update gives exporters the operational steps needed to claim duty-free treatment in China, including retrospective certificates for qualifying goods exported from May 1.
This follows industry concern over the practical implementation of the agreement, after exporters were still awaiting certainty about certificate-of-origin procedures despite the scheme having come into effect on May 1.
SARS has confirmed that exporters must use the existing SC-RO-02-A02 – Application for Export Origin Certificates form until a new form is amended. The completed form must be submitted to the relevant Customs and Excise branch with supporting documents.
The branch will consider the application and, once approved, issue a certificate of origin with a unique certificate number. Traders must then complete the required fields and return the certificate to the issuing office for certification, authentication and verification.
The certificate becomes valid only once it has been stamped and signed by the issuing office, SARS said.
The certificate details must also be included on the SAD 500 under the additional field.
The scheme allows qualifying South African goods to enter the Chinese market duty-free, provided they comply with the applicable rules of origin and certificate requirements.
SARS Commissioner Johnstone Makhubu said the revenue service understood that exporters had questions about how the scheme would apply, particularly to cargo already in transit, and confirmed that goods already shipped or cleared on or after May 1 would not be disadvantaged.
“Beginning June 1, we are introducing a simple, printable certificate format, allowing exporters to prove origin and claim the tariff preference straight away,” Makhubu said.
As an interim measure, exporters can lodge security with China’s customs administration where goods arrive without a certificate of origin. This security will be released once a valid SARS certificate of origin is lodged for qualifying goods.
SARS’ FAQs indicate that no separate registration is required for the scheme. Registered exporters may export under the scheme, provided the goods qualify.
SARS has also listed the Customs and Excise offices authorised to administer the rules of origin and issue certificates. These include Alberton, Cape Town, Cape Town International Airport, Durban, East London, King Shaka International Airport, OR Tambo International Airport, Port Elizabeth and Pretoria.
SARS has cautioned that not all goods will automatically qualify for zero-tariff treatment, with eligibility dependent on the rules of origin and, in some cases, tariff-rate quotas or specific conditions.
“Traders are encouraged to apply for an origin determination for clarity and certainty,” SARS says in its FAQs.
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