x Import -export enterprises, shippers operating in the field of international trade are interested in the terms of WO criteria, regulations and benefits?
X You want to find out what are the purely WO criteria cases?
X You wonder if the criteria of WO origin have encountered any challenges?
The criteria of WO origin is an important provision in international trade, especially quite useful for businesses with domestic products. Proship.vn we will approve the following article to clarify what WO criteria are, WO criteria, how benefits, ... and where are the usual WO pure origin cases.
What is the WO origin criteria and what benefits?
Let's find out what the WO criterion is and what is the benefit that Wo brings:
WO criterion concept
What is Wo criteria? The WO (WO WO (Wholly Obtained) criterion refers to the goods produced entirely in a country without using any imported raw materials. This is one of the simplest criteria to determine the origin of goods.
For example, goods apply WO criteria:
- Agricultural products (fruits, vegetables, rice) cultivated in the country;
- Fisheries caught in the waters of the nation;
- Minerals or exploited resources from underground;
- Products are processed all from domestic materials.
There are 2 types of Wo (Wholly Obtained):
- WO - pure origin within the territory of a member country;
- WO TPP - pure origin within the territory of many member countries in FTA.
Benefits of applying WO origin criteria
Applying WO origin criteria to bring many benefits to import -export enterprises:
- Enjoy tariff incentives: Goods that meet WO criteria are often exempted or reduced taxes when importing into FTA partner countries;
- Improve competitiveness: WO certified products are often more valuable in the international market thanks to its transparency and clear origin;
- Simplify the inspection process: Because the product does not use imported materials, businesses can easily meet the requirements of verification of origin.
Cases of pure origin Wo need to know
What are the pure origin cases of WO criteria? The following cases are considered to have pure Wo:
- Plants and products from crops are grown and harvested in water, water groups, or territories;
- The living animals are born and nurtured in water, water groups, or territories;
- Products from living animals stated in Clause 2 of this Article;
- Products obtained from hunting, trapping, catching, cultivating, collecting or hunting in the country, water groups, or territories;
- Minerals and naturally produced substances are not listed from Clause 1 to Clause 4 of this Article, extracted or removed from soil, water, seabed or at the seabed of a country, water group, or territorial area;
- Products taken from water, seabed or seabed outside the territorial sea of a country, water group, or territorial region, provided water, water group, or territorial region have the right to exploit the waters, seabed and seabed under international law;
- Catching products and other seafood caught from the sea by ships registered in water, water groups, or territories and are allowed to hang flags of water, water groups, or territories;
- Products are processed or manufactured right on the ship from products mentioned in Clause 7 of this Article registered in water, water groups, or territories and are allowed to hang flags of water, water groups, or territories;
- Items obtained during the production or consumption process in water, water groups, or territories are no longer able to perform the original function, cannot be repaired or restored and can only be thrown or used as raw materials, raw materials, or used for recycling purposes;
- The goods collected or produced from products mentioned from Clause 1 to Clause 9 of this Article in the country, water group, or territory.
Form of export goods declaration list meets WO criteria and challenges when applying
What is the definition of WO criteria that has been answered above. Below are the samples of export declaration lists that meet the criteria of pure origin WO:
Form of export declaration list meets WO criteria
Form of declaration of exported goods meets the criteria of pure origin WO using domestic purchasing materials, with value -added invoices.
The form of declaration of exported goods meets the criteria of pure origin WO using domestic purchasing materials, no value -added invoices.
Challenges when applying WO origin criteria
Despite many benefits, the application of Wo criteria faces:
- Complicated proof process: Enterprises need to fully prepare documents and documents proving their origin;
- Application limit: WO criteria only apply to all domestic products, causing many products to produce by imported materials;
- Strict inspection from the customs office: The authorities may conduct strict inspections to ensure the product complies with the criteria.
What are the regulation and order of steps to determine WO criteria?
Legal regulations and steps to determine WO criteria? Let's read with Proship to have the answer:
Relevant legal regulations
Some international trade agreements have specific provisions on the criteria of WO origin:
- RCEP: clearly refers to the rules applicable to domestic products;
- EVFTA and CPTPP: Supporting the fields of agricultural and fishery products to benefit from this criterion;
- ASEAN FTA: Creating favorable conditions for internal trade with flexible origin rules;
The role of the customs authority is very important in checking and confirming the validity of the goods to meet the WO origin criteria.
Steps to determine the criteria of WO origin
To determine whether the product meets the Wo criteria, businesses need to take the steps:
- Step 1 - Verify the origin of raw materials: Ensuring all raw materials originating from the production country;
- Step 2 - Prepare documents: Including Certificate of Origin (C/O), commercial invoices and shipping documents;
- Step 3 - Compare with FTA regulations: Consider the product in the list of WO criteria of trade agreements.
What is WO criteria and knowledge related to pure Wo origin, which has been shared in detail by Proship Logistics in a detailed and complete way for shippers and import -export enterprises. Contact immediately 0909 344 247 for direct advice on the service of transporting imported and exported multimodal imported goods you are interested in.
