What Is FTA? What Is an FTA Certificate of Origin?

1. What is an FTA?

FTA is the English abbreviation for Free Trade Agreement, which refers to agreements signed between countries (regions) to mutually eliminate or significantly reduce tariffs, lower trade barriers, and promote investment and trade liberalization.

As of 2026, China has signed free trade agreements with more than 20 countries (regions), covering ASEAN, South Korea, Australia, New Zealand, Chile, Peru, Pakistan, Switzerland, Georgia, the Maldives, Mauritius, Cambodia, Ecuador, etc. In addition, together with the 15 member states covered by the Regional Comprehensive Economic Partnership (RCEP), China's FTA partners span all major continents.

For exporting companies, the most direct value of an FTA is tariff reduction: as long as the goods meet the rules of origin stipulated in the agreement and the corresponding certificate of origin is obtained, the importer can enjoy preferential tariffs or even zero tariffs at the customs of the destination country.

2. What is an FTA Certificate of Origin?

In export business, "FTA Certificate of Origin" usually refers to a preferential certificate of origin issued under free trade agreements signed between China and relevant countries (regions). It is the core document for importers to enjoy tariff reductions at the customs of the destination country.

The essence of a Certificate of Origin is to prove the "nationality" of the goods — that is, the goods were actually produced or processed in a contracting state and comply with the agreement's rules of origin. Only with a valid certificate of origin can the importer clear customs at the preferential tariff rate; otherwise, duties must be paid at the ordinary rate.

Two concepts need to be distinguished:

• Preferential Certificate of Origin (FTA Certificate of Origin): issued based on a free trade agreement, used to enjoy preferential tariff rates under the agreement;
• General Certificate of Origin (C/O, non-preferential certificate of origin): only certifies the origin of the goods, used for importing country statistics, trade control, or letter of credit settlement, and does not confer tariff preferences.

3. Common Types of FTA Certificates of Origin

Common preferential certificates of origin issued by China (partial list):

RCEP (Regional Comprehensive Economic Partnership) entered into force on January 1, 2022. It is the free trade agreement with the broadest coverage and the largest population among those in which China participates. A prominent feature of the RCEP rules of origin is the regional accumulation rule — raw materials originating in any party can be cumulatively counted toward the originating content, greatly facilitating companies with supply chains spread across multiple countries.

Tip: The tariff concession scope, rules of origin, and certificate formats differ among agreements. Before exporting, you should confirm whether the goods meet the rules of origin under the target market's agreement.

4. Rules of Origin: What Goods Can Obtain an FTA Certificate of Origin

Whether a certificate of origin can be issued depends on whether the goods comply with the rules of origin of the agreement. Understanding the rules of origin is the prerequisite for applying for an FTA certificate of origin. The main criteria include:

Wholly Obtained Criterion

Goods that are planted, bred, mined, caught, or naturally produced within the territory of a contracting state (such as minerals, agricultural products, and aquatic products) are considered wholly obtained originating goods and can directly apply the rules of origin without further assessment of processing or value added.

Substantial Transformation Criterion

Products processed using non-originating materials must undergo substantial transformation in the country of origin, usually determined by any of the following:

• Change in tariff classification: the HS code (first 4 or 6 digits) of the processed goods changes relative to the imported raw materials;
• Regional Value Content (RVC): the regional value added in the exporting country reaches the proportion specified in the agreement (usually 40%-60%);
• Specific production process: a specific production process specified in the agreement that must be completed in the country of origin.

Direct Consignment Rule

Goods must be shipped directly from the exporting country to the importing country without processing or repacking in a third country; if transshipment is necessary, the transit conditions specified in the agreement must be met and relevant transit documentation provided.

RCEP Regional Accumulation Rule

The biggest feature of RCEP is regional accumulation: materials originating in any party can be treated as originating materials of another party and cumulatively counted toward the originating content. This makes it easier for companies with supply chains across multiple RCEP member states to meet the origin requirements and enjoy preferential tariffs under the agreement.

5. The Role of the FTA Certificate of Origin

Importers holding an FTA certificate of origin can obtain the following practical benefits:

1. Tariff reduction: clearance at the preferential tariff rate means most goods can enjoy substantial duty reductions or even zero tariffs, directly lowering import costs;
2. Customs facilitation: preferential certificates of origin are often paired with trade facilitation measures, enabling faster customs release;
3. Market access: some agreements also cover quotas, mutual recognition of standards, and other arrangements, which help products enter target markets;
4. Enhanced competitiveness: importers are more willing to purchase because of lower tariff costs, giving exporters an ordering advantage.

6. Application Process for an FTA Certificate of Origin

At present, companies apply online through the customs certificate of origin declaration system (International Trade "Single Window"). The process is as follows:

1. Company registration: complete corporate qualification registration and customs filing in the Single Window;
2. Product pre-assessment (filing): enter the intended export product information into the system and submit for pre-assessment of rules of origin;
3. Apply for certificate of origin: fill in and submit the certificate of origin application online according to the shipment plan;
4. Customs review and issuance: the certificate is issued electronically after customs review and approval;
5. Self-printing: print the electronic certificate of origin yourself (or apply for a paper certificate).

Note: Electronic certificates of origin have the same legal effect as paper versions; self-printing greatly shortens the issuance cycle, allowing exporting companies to apply for certificates of origin "without leaving the office."

7. Frequently Asked Questions

Q1: What conditions must goods meet to obtain an FTA certificate of origin? A: The goods must comply with the rules of origin specified in the agreement, including originating status (wholly obtained/substantial transformation) and the direct consignment rule. You can first confirm through product pre-assessment in the Single Window.

Q2: What is the difference between RCEP and the ASEAN FORM E? A: RCEP has broader coverage (including China, Japan, South Korea, Australia, and New Zealand) and includes the regional accumulation rule; FORM E applies only to the China-ASEAN agreement. When exporting to ASEAN, either option can be considered, and you should compare tariff concession levels and certificate convenience.

Q3: Can goods still be exported without an FTA certificate of origin? A: Yes. If no preferential certificate of origin is obtained, the goods can still be exported normally, but the importer will clear customs at the ordinary tariff rate and cannot enjoy preferential rates under the agreement, which may affect the transaction price and order competitiveness.

Further Reading

• Certificate of Origin Compared: CO / FORM A / FORM B / FORM E / FORM F / FTA / RCEP
• Which imported and exported goods does customs grant tariff reductions or exemptions?
• Relationship and logical order of document dates in foreign trade

Bofeng Logistics specializes in providing one-stop logistics services including domestic container sea freight, international sea freight (FCL/LCL), Hong Kong and Macau logistics dedicated lines, as well as trailer, customs declaration, warehousing, etc. We can assist in organizing export documentation and logistics arrangements. For export logistics and customs clearance consultation, please call 130-7567-8958 (Manager Huang) or leave a message online.