PwC Tax Insight PwC Tax Insight # 03/2014 TAX & LEGAL UPDATE

PwC Tax Insight # 03/2014
TAX & LEGAL UPDATE
TAX & LEGAL Services
Heading:
The following report
may be of interest to:
Summary:
*Issue Date: 18 February 201
2014
Removal of FOB value in Certificate of Origin Form AK for Certain
shipments
Importers / Exporters
Following to 8th Meeting of the ASEAN-Korea
ASEAN Korea FTA (AKFTA) Implementing
Committee (AKFTA-IC)
(AKFTA IC) which took place during 25 – 27 June 2013, the
amendment of certain Rules under the AKFTA Operational Certification
Procedure (OCP) was endorsed.
In line with such endorsement by the AKFTA-IC,
IC, Thai Customs has now issued
Customs Notification no. 9/2557 re: criteria and procedures regarding duty
exemption and reduction for AKFTA, dated 10 February 2014, and repealed the
previous Operational Certification Procedures (OCP)
(OCP) which was issued under
Notification no. 8/2555.
Similar to the recent changes to the OCP and Certificate of Origin Form D (Form
D) under the ASEAN Trade in Goods Agreement, Rule 5 of the new AKFTA OCP
now specifies that the FOB value in box 9 is requir
required only when the Regional
Value Content (RVC) rule is applied. This means that where other rules of origin
are applied (e.g. Wholly Obtained (WO), Change in Tariff Classification (CTC) or
Specific Process), there is no longer a requirement to include the FOB value in
box 9 of the Form AK.
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This means companies may no longer be required to make their manufacturing
prices known to buyers, particularly where goods are shipped from Thailand but
billed through a regional headquarters.
In addition, the validity period of Form AK is extended from 6 months to 12
months and further rules are specified in relation to declaring multiple items in
the Form AK.
The new Notification is retroactively effective from 1 January 2014 onwards and
similar to the Form D, there will be a transition period of 6 months (until 30
June 2014) during which the customs authorities would accept the old version of
the Form AK. Nevertheless, for Form AKs issued to and from Cambodia and
Myanmar, the FOB value would be still required regard
regardless of the origin criteria,
given that these two countries have been given a 2 year transition period to
implement the new rule.
For further information, please contact:
For further information, please contact:
- Mr. Paul Sumner at [email protected] or 02
02-344-1305.
- Mr. Santi Krongsithidej at [email protected] or 02-344-1341.
- Mr. Nu To Van at [email protected] or 02-344
344-1353.
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