It has to be an ASEAN product, i.e., it has to
satisfy the local content requirement of 40%.
WHAT IS THE LOCAL CONTENT
REQUIREMENTR FOR CEPT?
The CEPT Scheme has set a local content
requirement of 40%,that is a product is considered as originating from
ASEAN Member States if at least 40% of its content originates from any
The 40% local content requirement refers to both
single country and cumulative ASEAN content.
RULES OF ORIGIN FOR CEPT?
In determining the origin of products eligible for the CEPT Scheme
under the Agreement on the CEPT, the following Rules shall be applied:
Products under the CEPT imported into the
territory of a Member State from another Member States, which are
eligible for preferential concessions, if they conform to the origin
requirements under any one of the following conditions:
Products wholly produced or obtained in the exporting Member
Products not wholly produced or obtained in the exporting
Wholly Produced or Obtained
The following shall be considered as
wholly produced or obtained in the exporting Member States:
Mineral products extracted from its soil, its water or its
Agricultural products harvested there;
Animals born and raised there;
Products obtained from animals referred to in paragraph
Products obtained by hunting or fishing conducted there;
Products of sea fishing and other marine products taken from
the sea by its vessels;
Products processed and/or made on board its factory ships
exclusively from products referred to in paragraph (f) above;
Used articles collected here, fit only for the recovery of
Waste and scrap resulting from manufacturing operations
conducted there; and
Goods produced there exclusively from the products referred
to in paragraph (1) to (10) above.
Not Wholly Produced or Obtained
A product shall be deemed to be originating from ASEAN Member
States, if at least 40% of its content originated from any Member
States. For the purpose of implementing this provisions, products
worked on and processed as a result of which the total value of the
materials, parts or produce originating from non-ASEAN countries or of
undetermined origin used does not exceed 60% of the FOB value of the
product produced or obtained and the final process of the manufacture
is performed within the territory of the exporting Member States.
The value of the non-originating materials, parts or produce
The CIF value at the time of importation of the products or
importation can be proven; or
earliest ascertained price paid for the products of undetermined
origin in the territory of the Member State where the working or
processing takes place.
Cumulative Rule of
Products which comply with origin requirements
which are used in a Member State as inputs for a finished product
eligible for preferential treatment in another Member States shall be
considered as products originating in the Member States where working
or processing of the finished product has taken place provided that
the aggregate ASEAN content of the final product is not less than 40%.
Note: Exporters of textile and textile products
can use the substantial transformation criterion as an alternative to
the 40% local content requirement. This criterion is to be applied
based on the CEPT Rules of origin for textile and textile products and
the ASEAN single list.
The following shall be considered as consigned
directly from the exporting Member State to the importing Member
If the products are transported passing through the territory
of any other ASEAN country;
If the products are transported without passing through the
territory of any other non-ASEAN country;
iii. The products whose transport involves transit through one or
more intermediate non-ASEAN countries with or without transshipment or
temporary storage in such countries, provided that:
The transit entry is justified for geographical reason or by
consideration related exclusively to transport requirements;
The products have not entered into trade or consumption there;
The products have not undergone any operation there other than
unloading and reloading or any operation required to keep them in good
Certificate of Origin
A claim that products shall be accepted as
eligible for preferential concession shall be supported by a
Certificate of Origin issued by a government authority designated by
the exporting Member.
HOW TO EXPORT UNDER CEPT?
Establish the tariff classification of product
Product classification is normally in accordance
with the Harmonised Commodity Description and Ceiling System (HS).
Check the product coverage
Not all products are eligible for preferential
treatment under the CEPT. The exporter must therefore check, before he
proceeds further, whether his goods are included under the inclusion
list of Malaysia and the importing ASEAN countries.
Comply with Rules of Origin
The Rules of Origin are an essential parts of the
CEPT scheme in order to ensure that the tariff concession under the
CEPT are confined to products wholly or satisfy the ASEAN content
requirement by the exporting company. Strict enforcement of rules of
origin is necessary to prevent products originating from third
countries and traded in transit benefit under the CEPT.
DO MANUFACTURERS EXPORTERS APPLY FOR CEPT SCHEME?
The claim for CEPT tariff concession must be supported by appropriate
documentary evidence as to origin and consignment. Form D is a
certificate that is accepted as evidence of origin by all ASEAN member
states to obtain CEPT scheme. In Malaysia the certifying authority for
CEPT Form D is the Trade Support Division of the Ministry of
International Trade and Industry (MITI). This service is also provided
at MITI branch Offices in Penang, Ipoh, Kota Bharu, Johor Bahru,
Kuantan, Kuching and Kota Kinabalu.
Step 1 : Registrations
Manufacturer/Exporters are required to submit
CEPT Application Form to Trade Support of MITI or MITIís branch
offices. The form could be obtained at:
MITIís Service Counter,
Ministry of International Trade and Industry,
Block 10, Jalan Duta
50622 Kuala Lumpur and MITIís branch offices
Manufacturers/exporters who qualify will be given
an approval letter.
Step 2 : Endorsement of CEPT Form D
Form D is only valid for tariff concession if it
has been endorsed by MITI. Form D can be purchased from Federation of
Malaysian Manufacturers (FMM) at:
No. 3, Persiaran Dagang,
PJU9, Bandar Sri Damansara,
52200, Kuala Lumpur.
Manufacturers/exporters must submit the following
documents with CEPT Form D to MITI for endorsement :
A copy of MITI approval letter
Customs declaration (K2) - duplicate
Invoice - 1 copy
Bill of Lading - 2 copies
TO SEEK ADVICE?
For further information you may contact:-
MITIís Service Counter at Ground
Ministry of International Trade and Industry (MITI),
50622 KUALA LUMPUR
Tel : 03-651 6022
Fax : 03-651 3012
Officers : En. Azmi (ext. 4983)
Pn. Zainab (ext. 4992)
Tel : 03-651 6022
Fax : 03-651 3012
Officers : En. Abdul Kahar Abdullah (ext.
Ipoh - 05-241 7751 (En. Muíaz Hj. Zawawi)
Penang - 04-262 5131 (En. Abd. Jamil Abd. Halim
Kuantan - 09-513 0851 (En. Syed Ahmad Fuad Syed Toha)
Kota Bharu - 09-748 3457 (En. Mohd. Yunus)
Johor Bahru - 07-2244 639 (En. Yusof Aman)
Kota Kinabalu - 088-236 758 (En. Md. Idrus Ismail)
7. Kuching - 082-257 164 (Pn. Hasnah