In determining whether a product is originating in Brunei Darussalam, an Ordinary Certificate of Origin or a Preferential Certificate of Origin can be issued if the exporter/manufacturer meets the relevant criteria of being locally produced / manufactured under the various Schemes of Preference and Free Trade Agreement.
Origin Criteria
To qualify that a product is originating in Brunei Darussalam, it must be either:
- Wholly Obtained in Brunei Darussalam, i.e. wholly produced or obtained in Brunei Darussalam without any imported materials or
- Manufactured in Brunei Darussalam from materials and parts, which are either wholly or partially imported, according to the appropriate rules of origin and must not be made through a simple or minimal operations as stipulated in the relevant Free Trade Agreement.
Depending on the Free Trade Agreement or preferential scheme, for manufactured product, the rules of origin is either one or a combination of the following criteria:
- The value-added or percentage criterion
Under the value added criterion, the origin is determined by the percentage of either the imported materials or the local materials plus the direct processing cost in relation to the ex-factory cost or ex-factory price of the product.
For this criterion, the imported materials must have undergone substantial transformation. This result in the final product qualifying to be classified under a different tariff classification, as distinct from those classified for the imported materials. There are however exception to this rule.
Below shows an overview of the various Rules of Origin that exporters/manufacturers in Brunei Darussalam need to meet in order to qualify for different type of Certificate of Origin.
1. Rules of Origin requirement for an Ordinary CO
Product must be wholly obtained or manufactured in Brunei with at least 25% of local content based on the ex-factory price of the finished product.
2. Rules of Origin requirement for General Scheme of Preferences (GSP)
The following countries grant GSP preferences: Australia, Belarus, Bulgaria, Canada, Estonia, the European Union, Japan, New Zealand, Norway, the Russian Federation, Switzerland, Turkey and the United States of America. Each country has its own percentage rule, for example:
• United States= 35 % local content
• Canada = 60 % local content
3. Rules of Origin requirement under different Free Trade Agreements
If you need assistance to identify specific Rules of Origin of a product/s, please contact us at 673-2383374 / 673-2383378 or email us at coo.officebrunei@mfa.gov.bn
