By Tony Li    Photo：CANVA

Reciprocal Tariffs

The implementation of reciprocal tariffs is generally based on the principle of mutual benefit. When one country reduces tariffs on specific products from another country, the other country may take similar action to avoid trade imbalances and to protect domestic industries. Reciprocal tariffs can be broad or targeted toward specific products or industries. For example, if one country imposes a 10% tariff on cars from another country, the latter may impose the same 10% tariff on cars from the former.

On April 2, U.S. President Donald Trump announced a reciprocal tariff policy, sending shockwaves through global markets. However, the policy was soon postponed by 90 days. As the deadline approached, Trump signed an executive order on July 7 to extend the effective date of reciprocal tariffs to August 1.

Many believe the main target of the reciprocal tariff policy is China. Although the grace period for the policy is nearing its end, the U.S. and China reached a partial agreement in May, with Trump lowering tariffs on Chinese goods to 30%. The final tariff rate has not yet been announced. Meanwhile, many Chinese companies have been exporting goods to Southeast Asia to "wash" their origin before shipping them to the U.S., thereby circumventing the tariffs. In response, Trump implemented additional measures to block such practices. For example, the U.S. has announced a 20% tariff on goods imported from Vietnam, but products transshipped through Vietnam may face a 40% tariff. This is widely regarded as a measure to prevent origin fraud by Chinese goods.

As a result, certificates of origin are now required for all shipments to the U.S. from various countries.

Certificate of Origin (C/O)

A Certificate of Origin plays an essential role in international trade. It serves not only as proof of a product’s origin for the importing country but also as a key document for exporters applying for tariff preferences or fulfilling the requirements of specific trade agreements (such as Free Trade Agreements). Certificates of origin are typically issued by government agencies, chambers of commerce, or designated institutions.

I. Who Can Apply for a Certificate of Origin?

Usually, the following parties are eligible to apply:

• Exporters (export companies)
• Customs brokers or freight forwarders acting on behalf of exporters

II. How to Apply for a Certificate of Origin (Using Taiwan as an Example)

Step 1: Prepare Required Documents

Basic documentation includes:

• Commercial Invoice – Required; details the product description, quantity, and value
• Packing List – Shows packaging methods and item quantities
• Export Declaration or Bill of Lading – Available only after export; required for some COs
• Declaration of Origin (if applicable) – Needed if some materials are imported; explains the source of raw materials
• Manufacturing Process Description (for specific products) – Required for certain items to show production steps

Step 2: Choose the Issuing Authority

In Taiwan, the following organizations issue COs:

• CIECA (Chinese International Economic Cooperation Association) – Most local chambers of commerce fall under this system
• TAITRA (Taiwan External Trade Development Council) – Issues COs for specific FTAs (e.g., ECFA)
• BOFT (Bureau of Foreign Trade) – Issues special CO types such as Generalized System of Preferences (GSP) certificates

Step 3: Apply Online or In Person

Most institutions offer online application systems. For example:

• Taipei Chamber of Commerce (TCCOC): https://co.tccoc.org.tw/
• BOFT e-Certificate System: https://web2.trade.gov.tw

Step 4: Payment and Collection

• Processing Time: Usually 1–2 business days (expedited service available)
• Application Fee: NT$200–300 per certificate (varies by chamber and quantity)
• Collection Method: In-person pickup or postal delivery (electronic CO also available)

III. Types of Certificates of Origin (Based on Export Destination)

• Non-Preferential CO – For standard trade, not linked to tariff benefits
• Preferential CO – Used under FTAs or preferential schemes (e.g., USMCA, ECFA, CPTPP)
• FORM A – Previously used for GSP; now mostly phased out
• FORM E – Used under the China–ASEAN Free Trade Agreement
• FORM AANZ – For trade with Australia and New Zealand under FTA

IV. Important Notes

• No falsification or misleading origin declaration – Violations may lead to confiscation, fines, or bans by U.S. or other customs authorities.
• Caution with transshipment goods – Intermediate processing or shipping through third countries may disqualify origin status.
• Keep records – It is recommended to retain all export-related documents and manufacturing records for at least 5 years for audit purposes.

Conclusion

Reciprocal tariffs are trade policies in which two countries grant each other equivalent tariff treatment to ensure fair trade relations. A Certificate of Origin (C/O), on the other hand, is a document that certifies the country of origin of goods and is used to determine whether the goods qualify for preferential tariff treatment or comply with specific trade agreements.

Both reciprocal tariffs and certificates of origin are key tools in international trade. While reciprocal tariffs safeguard trade fairness, certificates of origin ensure the correct application of tariff preferences and the enforcement of trade agreements. Together, they form indispensable components of the global trade system.

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