Certificate of Origin Selection Strategy

The global free trade agreement network has created significant tariff reduction opportunities for the export of elevator parts, but the rules of origin of different markets vary significantly.

Strategies for the application of duty-free certificates of origin in key markets:

(I) Asia-Pacific market: superimposed agreement dividends and industrial chain synergy

1. China-ASEAN Free Trade Agreement (Form E)

Categories covered: Elevator guide rails (HS 7308), safety clamps (HS 843131), door machine systems (HS 853710)

Tax reduction range: Thailand/Vietnam’s basic tariff on elevator parts is 5%-15%, with a 30%-50% reduction in the first year based on Form E, and zero within 5 years.

Key rules:

Regional value content (RVC) ≥ 40%: Chinese-funded factories in Vietnam need to provide a "cost breakdown" to prove local processing costs for exports

Material traceability: Malaysian re-exports need to provide galvanizing/heat treatment process certificates (to meet HS code changes)

2. RCEP Agreement Certificate of Origin

Core advantages:

Transnational production and finance: Elevator control cabinets imported from Japan (HS 853710) can use Vietnamese aluminum profiles + Chinese precision processing to calculate regional value content.

Cumulative rules: The buffer piston rod (HS 732690) produced in Indonesia is exported to South Korea after heat treatment in China, and the processes of the two countries are combined to determine the origin qualification.

3. China-Korea Free Trade Agreement (Form FK)

Applicable products: Elevator inverter (HS 8504), LED car lighting (HS 9405)

Tariff concessions: South Korea's tariff on electronic accessories will be reduced from 8% to 5.6% in the first year, and cables (HS 8544) will be immediately zero tariff.

(II) High-end market in Europe and America

1. EU market (EUR.1/declared origin)

Tariff policy: The general tax rate for elevator guide rails is 4.5%, which can be reduced to 0% with the EUR.1 certificate (processing standards must be met).

Dual compliance requirements:

Origin rules: Value of non-origin materials ≤ 15% of product FOB price (HS 7308 series)

Technical certification: Safety components must comply with CE directive (EN 81-20) + provide DOC declaration of conformity

2. North American market

Differences in US-Canada tariffs:

US: A 25% tariff is imposed on Chinese elevator wire ropes (HS 7312). It is recommended to be tax-free with USMCA certificate after processing in Mexico (regional value component ≥ 65%)

Canada: Hydraulic buffers (HS 843131) tariffs are reduced from 5.8% to 0% with CPTPP certificates (transit in Vietnam/Malaysia required)

Tax avoidance path:

> Chinese stamping parts → Vietnam turning (HS change 8431 → 8466) → value-added ratio ≥ 40% → apply for Vietnam Form E to export to the United States

(III) Emerging markets: policy dividends and localization layout

1. China-Maldives Free Trade Agreement

Tax reduction arrangement: The tariff on elevators will be reduced from 20% to 0% in 5 years, and 4% will be reduced in the first year (the FTA certificate of origin issued by China must be provided).

2. Eurasian Economic Union (EAC certification)

Applicable products: safety clamps (HS 843131), speed limiters (HS 9032)

Tax exemption conditions:

Assembly in Belarus: Chinese components account for ≤50%

Kazakhstan bonded area: complete spraying + circuit board glue filling process (HS tax number change)

3. Middle East market (GCC unified certificate of origin

UAE: Elevator door machine (HS 8501) tariff 5%→0% (Saudi SASO certification must be provided)

Saudi Arabia: Certificate of origin is required to be accompanied by chamber of commerce certification + invoice consular endorsement