Trans Pacific Partnership

The key features of the Trans Pacific Partnership (TPP) have now been released.

An importer wanting to claim reduced duty rates offered by the TPP will be required to present a Certificate of Origin to justify this reduction in duty, the Certificate of Origin can be supplied by the manufacturer, exporter or importer.  The Certificate of origin can be on a shipment by shipment basis or an annual document and that can be used for multiple shipments over that 12 month period.  The annual certificate would be appropriate if you are a commodity based trader or importing the same product continuously.

As suspected the major difference with existing FTA’s is origin qualification will be based on TPP regional content which can include content from multiple TPP partner countries.  Under this arrangement for example US origin goods can contain components from Mexico, Canada or any TPP member country and still claim the duty reductions.

Another difference between the US FTA and the TPP is goods under the TPP must remain under Customs control when transhipped or they will lose their preferential treatment where under the US FTA goods can be stored in a third country domestic warehouse and qualify for preferential rates as long as no further manufacturing processes are undertaken.

The next step in the process is member countries will need to pass the legislation through their parliaments.