RULES OF ORIGIN AND ORIGIN PROCEDURES CHALLENGES WHEN THAILAND JOINS CPTPP

Abstract

We study challenges might be faced in Rules of Origin (ROO) and origin procedures practices when Thailand decides to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). ROO and origin procedures currently most practiced for multi-lateral FTAs in Thailand is those under ATIGA, become the comparison benchmark. This study shows several core differences between ROO and origin procedures under ATIGA and CPTPP. By using literature study and interview method, it is argued that CPTPP practice is more liberalised and flexible than ATIGA practice. However, several challenges are identified, namely: CPTPP’s relaxed requirements of originating goods which may impact to Thai’s industries; Thai’s unfamiliarity with Regional Value Content (RVC)’s calculation methods need careful attention and knowledge improvement so that Thai’s firms will be able to declare accurate information for the certificate of origin (c/o) issuance; liberal accumulation that highly facilitates trade; and  the producer, exporter, and importer are allowed to issue the certificate of origin where pre-exportation origin verification and checking on certificate of origin accuracy are not inspected by any authority in the exporting Party. Circumventions may be occurred and become Customs’ challenges due to responsibilities of Customs are both trade facilitation and revenue collection.