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Regulations on the rule of origin

On 30 July 2019, the Ministry of Industry and Trade issued Circular No. 12/2019/TT-BCT regulating the rules of origin in the Framework Agreement on Comprehensive Economic Co-operation between the Association of South East Asian Nations and the People’s Republic of China. Circular 12 takes effect from 12 September 2019 and has the following new points:

Regarding the rule of origin

Goods are considered to have origins if produced only from origin materials; besides the criterion “Regional value content” (RVC), the general rule also applies to origin criteria for converting commodity codes at level of 4 digits (CTH); regulations on De Minimis (the proportion of raw materials does not meet the criteria for change in tariff classification-reporter); identical and interchangeable.

Regarding C/O (Form E)

  • C/O (Form E) will be issued prior to or at the time of shipment. In exceptional cases where the C/O (Form E) has not been issued at the time of shipment or no later than 3 days from the date of shipment, at the request of the exporter, the C/O (Form E) will be issued retroactively in accordance with the laws and regulations of the exporting member country. The C/O (Form E) issued retroactively within 12 months from the date of shipment must be marked in Box 13 “ISSUED RETROACTIVELY”.
  • If the goods originate from an exporting member country and do not exceed USD200 in FOB value, the C/O (Form E) will be waived and the use of a simplified declaration by the exporter that the products in question originated in the exporting member country will be accepted. Waivers will not be applicable if it is established by the customs authorities of the importing country that the importation of a series of shipments may be arranged for the purpose of avoiding the submission of a C/O (Form E).

Regarding the time limit for giving feedback and verifying origins of goods

In case the agency or organization granting C/O of the exporting country fails to respond within 90 days after the date of receipt of the verification request from the customs authorities of the importing country, the agency or organization granting C/O may submit a written request for an extension of 90 days.

Also related to the rules of origin. The Ministry of Industry and Trade issued Circular 13/2019/TT-BCT dated 31 July 2019 on amending and supplementing some articles of Circular No. 20/2014/TT-BCT implementing the rules of origins in the ASEAN – South Korea Free Trade Agreement.

Accordingly, the procedures for issuance and verification of Certificates of Origin (C/O) – Form AK of Vietnam will be implemented as per Decree No. 31/2018/ND-CP of the Government detailing the Law on Foreign Trade Management in terms of origins of goods; Circular No. 05/2018/TT-BCT of the Ministry of Industry and Trade on rules of origin; Annex V issued in attachment to Circular No. 20/2014/TT-BC.

Besides, Circular No. 13/2019/TT-BCT abolishes Annex II issued in attachment to Circular No. 20/2014/TT-BCT and replaces it with a new Annex issued in attachment to this Circular.

Circular No. 13/2019/TT-BCT takes effect from 13 September 2019.

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