Key Takeaways
- RVC Full Form in Customs: Regional Value Content, commonly calculated via the Build-Down formula:
((FOB - VNM) / FOB) × 100 ≥ 40%. - CTH Meaning: Change in Tariff Heading at the 4-digit HS Code level between imported non-originating inputs and the finished exported product.
- Form E, Form AK & Form AJ: Preferential Certificates of Origin for ASEAN-China (ACFTA), ASEAN-Korea (AKFTA), and ASEAN-Japan (AJCEP) trade agreements.
- Direct Consignment & Non-Manipulation: Shipments transshipped via a third country must provide a Through B/L or Non-Manipulation Certificate confirming no further processing occurred during transit.
1. How RVC and CTH Are Calculated
Under the Department of Foreign Trade (DFT) and ASEAN Free Trade Agreement protocols, Regional Value Content (RVC) is calculated as:
RVC (%) = [ (FOB Price − Value of Non-Originating Materials VNM) ÷ FOB Price ] × 100
When a product uses the CTH (Change in Tariff Heading) rule instead of RVC, all non-originating raw materials must fall under a different 4-digit HS heading than the finished good.
2. Form E, Form AK Korea, and Form AJ Certificate of Origin Overview
- FTA Form E (ASEAN-China): Grants preferential tariff reduction between China and ASEAN. When invoiced by a trading company in a third territory (e.g., Singapore or Hong Kong), Box 13 must have Third Party Invoicing ticked and Box 7 must list the third-party issuer details.
- Form AK (ASEAN-Korea FTA): Covers trade between South Korea and ASEAN member states, typically allowing co-equal choice between RVC 40% or CTH for general industrial goods.
- Form AJ (ASEAN-Japan CEP): Covers trade between Japan and ASEAN with regional cumulation benefits.
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Contact Our Experts Now3. Customs Verification & Non-Manipulation Requirements
To claim FTA duty exemption with Thai Customs, the HS Code, origin criterion in Box 8 (e.g., WO, PE, RVC, CTH), invoice references, and Direct Consignment evidence must strictly match the import declaration and Bill of Lading.
Official Sources: Department of Foreign Trade, Ministry of Commerce (dft.go.th) and Customs Tariff Bureau, Thai Customs Department (customs.go.th).
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Logistics No Limit (LNL) assists importers and exporters with Certificate of Origin applications (Form E, Form D, Form AK, Form AJ) and FTA customs declaration verification.
Explore Form E & Customs ServicesIn customs Rules of Origin, RVC (Regional Value Content) measures the percentage of a product's FOB value originating within FTA member states (typically requiring RVC ≥ 40%). CTH (Change in Tariff Heading) requires non-originating materials to undergo substantial transformation resulting in a different 4-digit HS Code heading. Both criteria govern preferential tariff eligibility under Form E (ASEAN-China), Form AK (ASEAN-Korea), and Form AJ (ASEAN-Japan).
Frequently Asked Questions
Q:What is the RVC full form in customs?
A:RVC stands for Regional Value Content. It calculates the percentage of a product's FOB value derived from originating materials and production costs within FTA member countries, typically requiring at least 40%.
Q:Can Form E be used with a Singapore or Hong Kong third-party invoice?
A:Yes. Under ACFTA Third-Party Invoicing rules, Form E remains valid when Box 13 has 'Third Party Invoicing' checked and Box 7 lists the name and address of the third-party invoicing company, provided the goods are shipped directly from China to Thailand (or supported by a Non-Manipulation Certificate).
Q:What is the difference between Form AK and Form AJ?
A:Form AK is the Certificate of Origin for the ASEAN-Korea Free Trade Area (AKFTA), whereas Form AJ is the Certificate of Origin for the ASEAN-Japan Comprehensive Economic Partnership (AJCEP).
