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Settling Origin Before the Shipment

1. The problem

A shipment meets the Singapore declaration requirements, so the exporter declares the duty in Singapore and sends, and the paperwork is complete before the goods are handed over.

An export to another market has documents that cannot be prepared perfectly in advance unless the origin is settled in advance too.

2. The one thing that shifts the work earlier

Origin.

A certificate of origin requires an origin analysis before the certificate can be issued.

3. The chain

A credible analysis takes a bill of materials with codes.

That requires the component list to be fixed before the certificate is applied for.

4. The component list changes

Components are sourced, substituted, and re-sourced.

Every change is an origin event.

5. The design of a working file

Per product, per agreement:

The product code in the destination tariff.

The product-specific rule.

Each component, its code, its origin, its value.

The test applied and the result.

The date and the version of the data.

6. The scenario

An exporter kept the analysis file and updated it when a component changed.

When a verification request arrived, the file answered it in a day.

7. What made it work

The file was maintained, not reconstructed.

8. The rule

Origin work done in advance is cheap.

Origin work done after a verification request is expensive.

9. Closing view

The paperwork for any consignment takes the same steps.

The only difference is when you start them.

*This article is based on the origin rules of China’s free trade agreements.*

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