Unlock Zero Duty Rates with the Right Certificate of Origin || ASICO

Have you been using the correct Certificate of Origin (COO) during import and export to optimize your duty savings?

Preferential vs Non-Preferential — What’s the Difference & When to Use Each

Paying more import duties than you should?

You might be missing out on Free Trade Agreement (FTA) benefits! 

It often comes down to using the right Certificate of Origin (COO).

Let’s break it down so you never overpay or face customs delays again.

🌍 What Is a Certificate of Origin (COO)?

A COO is an official document that proves where your goods are made. Customs authorities use it to decide how your shipment is treated at the border especially when it comes to import duties.

Soft reminder: NOT all COOs are the same…

✅ Trade smarter: Malaysia has FTAs with more than 5 countries. If your shipment is going to one of them, you might qualify for duty exemptions!

1. Preferential COO

Use this to unlock duty-free or reduced tariffs under FTAs.

✅ When to Use:

• Your product qualifies under an FTA’s origin rules

• You’re trading between FTA partner countries→ Example: Japan to Malaysia under AJCEP (ASEAN JAPAN COMPREHENSIVE  ECONOMIC PARTNERSHIP) 

  
  

🔧 Real Case:You Importing Smart TV from Japan to Malaysia under AJCEP. If your product meets origin criteria, you can enjoy zero duty — but only if you have a Preferential COO.

Smart TV import duty : 30% 

Rate with AJCEP

2. Non-Preferential COO

   
   

Does not reduce duties, but may still be required for:

⚠️ When to Use:

• No FTA with the destination country→ Example: Exporting to a country with no FTA with Malaysia

• Destination customs need origin proof for legal, safety, or anti-dumping checks

• You’re accessing a quota for certain restricted items

🔧 Real Case:Shipping steel pipes to a country with no FTA. Their customs may request for a Non-Preferential COO to check for anti-dumping. No COO? Your shipment may be held or delayed. 

🧠 Quick Comparison 

🛠 Situation	🧾 Use Which COO?
FTA in place & product qualifies	✅ Preferential COO
No FTA, but origin proof is still required	⚠️ Non-Preferential COO
Need to reduce or eliminate import duties	✅ Preferential COO
Complying with quotas, anti-dumping, trade laws	⚠️ Non-Preferential COO

📈 Why It Matters to Your Business

Using the correct COO helps you:

• 💰 Save on import duties

• 🚀 Speed up customs clearance

• 🏷 Stay competitive in overseas markets

• 🛡 Avoid penalties, delays, or compliance issues

At Asico Logistics, we do not issue COOs, but we make sure you are not missing out on the benefits offer.

✅ We check every shipment’s eligibility:Are you entitled to FTA duty savings?

✅ We advise clearly:If your shipment could benefit from a Preferential COO, we will guide you to take the right next step with your documentation team or chamber.

📦 Whether you’re trading under ASEAN, RCEP, CPTPP, or beyond — we are here to help you pay less, clear faster, trade smarter and easy with Asico.

✉️ Ready to Save on Duties?

📞 Talk to Asico Logistics today — let’s make sure your goods are getting the treatment they deserve.

Published by Qistina Allysa