The Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) Trade Agreement will enter into force on December 30, 2018. Australia the sixth participating member country to ratify the CPTPP has met the threshold requirements to enter into force by end of December. The CPTPP consists of 11 participating member countries.
Vietnam has now also ratified the CPTPP Agreement. So far Japan, Canada, Mexico, Singapore and New Zealand have also formally ratified the agreement. The CPTPP is expected to be in effect on 30th December 2018. The remaining member countries to ratify the agreement is Brunei, Chile, Malaysia, Peru.
The agreement is expected to reduce tariffs between the 11 participating economies that together add up to US$10 trillion. Other countries have also expressed interest in joining the agreement.
On December 30, a first round of tariff cuts will come into effect. Staging category EIF of the tariff reductions will take place on the day the implementation of the agreement. If the rate reduction is set to duty free status this means goods will be duty free. Other categories of the tariff reductions would take place on January 1, 2019.
Claiming the preferential treatment to CPTPP
The preferential treatment can be used if a certificate of origin is completed by the exporter, producer or importer. In reference in Article 3.20 and 3.21., if an importer completes the Certificate of origin they are required to provide documents or other information to support the certification. Failure to comply will lead to prohibition of issuing a certificate.
Format of the certificate of origin
The certification of origin:
- a) Need not follow a prescribed format;
- b) Be in writing, including electronic format;
- c) Specifies that the good is both originating and meets the requirements of this Chapter; and
- d) Contains a set of minimum data requirements as set out in Annex 3-B (Minimum Data Requirements).
The Certificate of origin can be issued for each shipment as blanket certificate, and cannot exceed 12 months or for such longer period specified by the laws and regulations of the importing country.
More information
Visit Livingston webpage on CPTPP page for detailed information and duty elimination time frame.