Certificate of origin, FTA and duty on China cargo to Serbia

From 1 July 2024 the free trade agreement between Serbia and China is in force. That matters for importers. It is not a magic switch “duty = 0 on everything”. Preferential treatment depends on the HS line, origin rules and correct documents, most often proof of origin / a certificate of origin (CO) in the form Customs accepts.

This text is practical: what to ask the supplier, what to check with the broker, and where firms fail.

01What the FTA is, and is not

It is: a frame to cut or remove duty on goods that meet the agreement, with proper origin.

It is not:

• automatic deletion of VAT,
• a guarantee for every HS code,
• a substitute for correct classification and declaration,
• “whatever the invoice says”.

Illustration: if the standard duty for your product is 5–10%, and the preferential rate is 0% or reduced, saving on a 50,000 EUR customs base can be illustrative 2,500–5,000 EUR, if you have the right to preference. Figures differ by HS. Always confirm with the customs broker.

More context: Serbia-China FTA.

02Why origin is critical

“From China” on the invoice is not enough. Goods must meet origin rules (wholly obtained / sufficient processing / cumulation where it applies). If a critical part was imported into China and only repacked, preference can fall.

That is why QC and a bill of materials are not only quality. They affect customs treatment.

03What to ask for

In practice, ask the supplier:

1. Which form / electronic proof applies to your shipment in Serbia (confirm with the broker, requirements tighten in use).
2. Exact goods description aligned with the invoice.
3. Correct quantities, weights, HS (where stated).
4. Stamps / authorisations of the export side as required.
5. Issue timing, before or with shipment, not “when the vessel reaches Piraeus”.

A late CO often means you pay the full rate or enter a procedure that costs time.

04Operating sequence

1. Preliminary HS: with broker / customs adviser.
2. Preference check: whether the tariff line benefits under the FTA and on what condition.
3. RFQ with a CO ask: put in the contract that the supplier provides origin proof.
4. Production: no material change that breaks origin without notice.
5. Before loading: draft CO plus invoice plus packing list aligned.
6. Declaration: the broker uses preference only if the file is complete.

Import flow: Import from China.

05Three documents must tell the same story

Customs likes consistency. “Gift / sample value” games on commercial shipments are a bad idea.

06Frequent mistakes

1. Assuming the FTA covers the whole catalogue without an HS check.
2. Asking for CO only when the container is on the water.
3. Different company name on CO and invoice.
4. Vague description (“parts” instead of the actual product).
5. Mixing goods of different origin in one declaration without a clear split.
6. Counting landed cost only with “0% duty” and no fallback.

Landed with and without preference: Landed cost and 50,000 EUR example.

07Contract with the supplier

• Obligation to issue valid origin proof for every shipment.
• Deadline (for example before BL draft).
• Liability if the document is late or rejected for their error.
• No material changes without approval.

This matters especially with trading companies that combine several plants.

08Illustrative scenario (not a guarantee)

Purchase 40,000 EUR FOB, customs base after freight and insurance for example ~45,000 EUR.

• Scenario A

  full duty 8%, ~3,600 EUR duty (plus VAT on the base).

• Scenario B

  preference 0% with valid proof, 0 EUR duty (still count VAT by the rules).

The gap is illustrative: your HS can have different rates. The point: paperwork is money.

For every China shipment above an agreed threshold (for example 10,000 EUR): HS confirmed, FTA check done, CO obligation in the PO, document drafts 5 days before planned sailing, archive 5+ years or per your tax policy.

If preference fails at control, options depend on the case: extra papers, pay standard duty, correction with professional help. Always keep a no-preference scenario in landed cost. Do not plan margin on 0% until you have a routine of successful shipments.

For help aligning documents with the supplier or an indicative landed scenario (with/without preference), write via contact with an HS frame and goods description.