Circular 02/2021/TT-BCT Rules of Origin in the Free Trade Agreement Vietnam - United Kingdom

CIRCULAR

Providing the Rules of Origin within the framework of the Free Trade Agreement between Vietnam and the United Kingdom of Great Britain and Northern Ireland^[1]

Pursuant to the Government’s Decree No. 98/2017/ND-CP of August 18, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Government’s Decree No. 31/2018/ND-CP of March 8, 2018, detailing the Law on Foreign Trade Management regarding goods origin;

In furtherance of the Free Trade Agreement between Vietnam and the United Kingdom of Great Britain and Northern Ireland, done at London, the United Kingdom, on December 29, 2020;

At the proposal of the Director General of the Agency of Foreign Trade;

The Minister of Industry and Trade promulgates the Circular providing the Rules of Origin within the framework of the Free Trade Agreement between Vietnam and the United Kingdom of Great Britain and Northern Ireland.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular provides the Rules of Origin within the framework of the Free Trade Agreement between Vietnam and the United Kingdom of Great Britain and Northern Ireland (UKVFTA).

Article 2. Subjects of application

This Circular applies to:

1. Agencies and organizations issuing certificates of origin (C/O).

2. Traders.

3. Agencies, organizations and individuals having activities concerning the origin of imported and exported goods.

Article 3. Interpretation of terms

For the purposes of this Circular, the terms below shall be construed as follows:

1. “Chapter”, “Heading” and Subheading” means the Chapter (two-digit code), the Heading (four-digit code) and the Subheading (six-digit code) used in the Harmonized Commodity Description and Coding System (below referred to as the “Harmonized System” or “HS”).

2. “Classified” means included in the classification of a product or material under a particular Chapter, Heading, or Subheading of the Harmonized System.

3. “Consignment” means products which are either sent simultaneously from one exporter to one consignee or covered by a single transport document covering their shipment from the exporter to the consignee or, in the absence of such a document, by a single invoice.

4. “Customs value” means the value as determined in accordance with the Customs Valuation Agreement.

5. “Exporter” means a person, located in the exporting Party, that is exporting the goods to the other Party and is able to prove the origin of the exported goods, whether or not that person is the manufacturer or carries out the export formalities. The exporter is not necessarily the seller but issues invoices for the consignment (third-party invoices). The seller may be located in a territory of a non-Party to the UKVFTA.

6. The United Kingdom of Great Britain and Northern Ireland is below referred to as the United Kingdom (UK).

7. “Ex-works price” means:

a/ The price paid for the product ex-works to the manufacturer in whose undertaking the last working or processing is carried out, provided that the price includes the value of all the materials used and all other costs related to its production, excluding any internal taxes which are, or may be, repaid when the product obtained is exported.

b/ Where the price paid does not reflect all costs related to the manufacturing of the product which are actually incurred in the UK or in Vietnam, ex-works price means the sum of all those costs, excluding any internal taxes which are, or may be, repaid when the product obtained is exported.

c/ Where the last working or processing has been subcontracted to a manufacturer, the term “manufacturer” referred to in this Clause may refer to the enterprise that has employed the subcontractor.

8. “Material” means, inter alia, any ingredient, raw material, component or part used in the manufacture of a product.

9. “Product” means a product being manufactured, even if it is intended for later use in another manufacturing operation.

10. “Goods” means both materials and products.

11. “Manufacture” means any kind of working or processing, manufacturing, producing, processing or assembling of goods.

12. “Fungible materials” means materials that are of the same kind and commercial quality, with the same technical and physical characteristics, and which cannot be distinguished from one another once they are incorporated into the finished product.

13. “Non-originating goods” or “non-originating materials” means goods or materials that do not qualify as originating in accordance with this Circular.

14. “Originating goods” or “originating materials” means goods or materials that qualify as originating in accordance with this Circular.

15. “Territories” includes territorial sea.

16. “Value of materials” means the customs value at the time of importation of the non-originating materials used or, if this is not known and cannot be ascertained, the first ascertainable price paid for the materials in Vietnam or in the UK.

17. EU means the European Union.

Article 4. Provisions on certification and inspection of origin of goods in Vietnam

1. To promulgate together with this Circular the following Appendices:

a/ Appendix I: Notes to the Product Specific Rules provided in Appendix II.

b/ Appendix II: Product Specific Rules.

c/ Appendix III: Fishery materials entitled to cumulation of origin.

d/ Appendix IV: Fishery products entitled to cumulation of origin.

dd/ Appendix V: Textile and garment products entitled to cumulation of origin.

e/ Appendix VI: Specimen of a C/O, Form EUR.1.

g/ Appendix VII: Text of the origin declaration.

h/ Appendix VIII: List of agencies and organizations issuing C/Os, Form EUR.1, within the framework of the UKVFTA.

2. The list of Vietnamese agencies and organizations issuing C/Os, Form EUR.1, within the framework of the UKVFTA shall be updated at the Ministry of Industry and Trade’s electronic certificate of origin issuance system at www.ecosys.gov.vn. Vietnamese agencies and organizations issuing C/Os within the framework of the UKVFTA shall register specimens of their seals and update these specimens according to the guidance of the Ministry of Industry and Trade.

3. The process of certification and inspection of origin of goods must comply with the Government’s Decree No. 31/2018/ND-CP of March 8, 2018, detailing the Law on Management of Foreign Trade regarding origin of goods, legal provisions on origin of goods, and this Circular.

Chapter II

METHODS OF IDENTIFYING ORIGIN OF GOODS

Article 5. Originating goods

Goods shall be considered as originating when:

1. Goods are wholly obtained in a Party within the meaning of Article 6 of this Circular.

2. Goods are not wholly obtained in a Party from non-originating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing in the Party concerned within the meaning of Article 7 of this Circular. 

Article 6. Wholly obtained goods

1. Within the meaning of Clause 1, Article 5 of this Circular, the following shall be considered as wholly obtained in a Party:

a/ Mineral products extracted from its soil or from its seabed.

b/ Plants and vegetable products grown and harvested or gathered there.

c/ Live animals born and raised there.

d/ Products from live animals raised there.

dd/ Products from slaughtered animals born and raised there.

e/ Products obtained by hunting or fishing conducted there.

g/ Products of aquaculture, where the fish, crustaceans and mollusks are born or raised there from eggs, fry, fingerlings and larvae.

h/ Products of sea fishing and other products taken from outside any territorial sea by its vessels.

i/ Products made aboard its factory ships exclusively from products referred to at Point h of this Clause.

k/ Used articles collected there which are only fit for the recovery of raw materials.

l/ Waste and scrap resulting from manufacturing operations conducted there.

m/ Products extracted from the seabed or below the seabed which is situated outside any territorial sea but where it has exclusive exploitation rights.

n/ Goods produced there exclusively from the products specified at Points a thru m of this Clause.

2. The term “plants and vegetable products” at Point b, Clause 1 of this Article covers plants, flowers, fruits, vegetables, seaweeds and mushrooms.

3. The terms “its vessels” and “its factory ships” at Point h and Point i, Clause 1 of this Article apply only to vessels and factory ships which:

a/ Are registered in and fly the flag of Vietnam or the UK or a Member State of the EU and are at least 50% owned by natural persons of a Party or a Member State of the EU; or,

b/ Are registered in and fly the flag of Vietnam or the UK or a Member State of the EU and are owned by legal persons which are at least 50% owned by Vietnam, the UK or a Member State of the EU or by their public entities or nationals.

Article 7. Not wholly obtained goods

1. Within the meaning of Clause 2, Article 5 of this Circular, products which are not wholly obtained are considered to be sufficiently worked or processed when the Product Specific Rules provided in Appendix II to this Circular are fulfilled.

2. For the materials used for manufacture of products and goods:

a/ The Product Specific Rules referred to in Clause 1 of this Article shall only apply to non-originating materials.

b/ If a product which has acquired originating status by fulfilling the conditions specified in Appendix II to this Circular is used in the manufacture of another product, the conditions applicable to the product in which it is incorporated do not apply to it, and no account shall be taken of the non-originating materials which may have been used in its manufacture.

Article 8. Tolerances for materials not qualifying as originating

1. By way of derogation from Clause 1, Article 7 of this Circular and subject to Clauses 2 and 3 of this Article, non-originating materials may nevertheless be used, provided that their total value or net weight assessed for the product does not exceed:

a/ 10% of the weight of the product or ex-works price for products of Chapters 2 and 4 to 24 of the Harmonized System, other than processed fishery products referred to in Chapter 16 of the Harmonized System.

b/ 10% of the ex-works price of the product for other products, except products of Chapters 50 to 63 of the Harmonized System.

c/ For products of Chapters 50 to 63 of the Harmonized System, the tolerances mentioned in Notes 6 and 7 of Appendix I to this Circular apply.

2. The application of Clause 1 of this Article shall not allow exceeding any of the percentages for the maximum value or weight of non-originating materials as specified in Appendix II to this Circular.

3. Clauses 1 and 2 of this Article do not apply to wholly obtained goods within the meaning of Article 6 of this Circular.

4. Without prejudice to Article 10 and Clause 2, Article 11 of this Circular, the tolerances provided for in Clauses 1 and 2 of this Article apply to the sum of all the materials which are used in the manufacture of a product for which Appendix II to this Circular requires that such materials be wholly obtained.

Article 9. Cumulation of origin

1. Products shall be considered as originating in the exporting Party if such products are obtained there by incorporating materials originating in the other Party or the EU, provided that the working or processing carried out in the exporting Party goes beyond the operations referred to in Article 10 of this Circular.

2. For the purpose of Clause 1 of this Article, the origin of the materials shall be determined according to the rules of origin of the UKVFTA.

3. Notwithstanding Article 5 of this Circular, working or processing carried out in the EU shall be considered as having been carried out in the UK when the products obtained undergo subsequent working or processing in the UK provided that the working or processing carried out in the UK goes beyond the operations referred to in Article 10 of this Circular.

4. For the purpose of Clause 1 of this Circular, the originating status of materials exported from the EU to a Party to be used in further working or processing shall be established by a proof of origin under which these materials could be exported directly to that Party.

5. The cumulation of origin in respect of the EU as provided for in this Article applies if the Member States of the EU involved in the acquisition of the originating status and the country of destination have arrangements on administrative cooperation which ensure the correct implementation of this Article.

6. Materials listed in Appendix III to this Circular originating in an ASEAN country which applies with the UK a trade agreement in accordance with Article XXIV of GATT 1994, shall be considered as materials originating in Vietnam when further processed or incorporated into one of the products listed in Appendix IV to this Circular.

7. For the purpose of Clause 6 of this Article, the origin of the materials shall be determined according to the rules of origin applicable in the framework of trade agreements between the UK and those ASEAN countries.

8. For the purpose of Clause 6 of this Article, the originating status of materials exported from an ASEAN country to Vietnam to be used in further working or processing shall be established by a proof of origin as if those materials were exported directly to the UK.

9. The cumulation of origin within the meaning of Clauses 6, 7 and 8 of this Article shall only apply when:

a/ The ASEAN countries involved the cumulation of origin have undertaken to comply or ensure compliance with the UKVTA and provide the administrative cooperation necessary to ensure the correct implementation of the UKVFTA both with regard to the UK and among themselves.

b/ The undertakings referred to at Point a of this Clause have been notified to the UK.

c/ The preferential tariff duty the UK applies to the products listed in Appendix IV to this Circular is higher than or the same as the duty the UK applies to the same product originating in the ASEAN country involved in the cumulation.

10. Proofs of origin issued by application of Clause 6 of this Article shall bear the following entry: “Application of Article 3(6) of Protocol 1 to the Vietnam-UK FTA”.

11. Fabrics originating in the Republic of Korea shall be considered as originating in Vietnam when further processed or incorporated into one of the products listed in Appendix V to this Circular obtained in Vietnam, provided that they have undergone working or processing in Vietnam which goes beyond the operations referred to in Article 10 of this Circular.

12. For the purpose of Clause 11 of this Article, the origin of the fabrics shall be determined in accordance with the rules of origin applicable in the framework of the Free Trade Agreement between the United Kingdom of Great Britain and Northern Ireland, and the Republic of Korea, done at London on August 22, 2019, except for the rules set out in Annex II(a) to the Protocol concerning the Rules of Origin of that Agreement.

13. For the purpose of Clause 11 of this Article, the originating status of the fabrics exported from the Republic of Korea to Vietnam to be used in further working or processing shall be established by a proof of origin as if those fabrics were exported directly from the Republic of Korea to the UK.

14. The cumulation provided for in Clauses 11, 12 and 13 of this Article applies if the Republic of Korea and Vietnam have undertaken and notified to the UK their undertaking to comply or ensure compliance with the cumulation and provide the administrative cooperation necessary to ensure the correct implementation of the UKVFTA both with regard to the UK and between themselves.

5. Proofs of origin issued to implement Clause 7 of this Article shall bear the following entry: “Application of Article 3(11) of Protocol 1 to the Vietnam-UK FTA”.

16. The cumulation applicable to materials originating from countries other than Parties to the UKVFTA as provided for in this Article must comply with the Ministry of Industry and Trade’s guidance.

 Article 10. Insufficient working or processing

1. The following operations shall be considered as insufficient working or processing to confer the status of originating products, whether or not the requirements of Articles 7 and 8 of this Circular are satisfied:

a/ Preserving operations to ensure that the products remain in good condition during transport and storage.

b/ Breaking-up and assembly of packages.

c/ Washing, cleaning, removal of dust, oxide, oil, paint or other coverings.

d/ Ironing or pressing of textiles and textile articles.

dd/ Simple painting and polishing operations.

e/ Husking and partial or total milling of rice; polishing and glazing of cereals and rice.

g/ Operations to color or flavor sugar or form sugar lumps; partial or total milling of crystal sugar.

h/ Peeling, stoning and shelling of fruits, nuts and vegetables.

i/ Sharpening, simple grinding or simple cutting.

k/ Sifting, screening, sorting, classifying, grading, or matching (including the making-up of sets of articles).

l/ Simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations.

m/ Affixing or printing marks, labels, logos and other like distinguishing signs on products or their packaging.

n/ Simple mixing of products, whether or not of different kinds; mixing of sugar with any material.

o/ Simple addition of water, dilution, dehydration or denaturation of products.

p/ Simple assembly of parts of articles to constitute a complete article or disassembly of products into parts.

q/ A combination of two or more of the operations specified at Points a thru p of this Clause.

r/ Slaughter of animals.

2. The operations referred to in Clause 1 of this Article shall be considered simple when for their performance neither special skills are required nor machines, apparatus or tools especially produced or installed for those operations.

3. All operations carried out either in Vietnam or the UK on a given product shall be considered together when determining whether the working or processing undergone by that product is to be regarded as insufficient within the meaning of Clause 1 of this Article.

Article 11. Unit of qualification

1. The unit of qualification shall be the particular product which is considered as the basic unit when determining classification using the nomenclature of the Harmonized System.

 2. When a consignment consists of a number of identical products classified under the same Subheading of the Harmonized System, the unit of qualification shall apply to each individual item.

3. Where, under General Rule 5 of the Harmonized System, packaging is included in the product for classification purposes, it shall be included for the purpose of determining origin.

Article 12. Accessories, spare parts and tools

Accessories, spare parts, tools and instructional or other information materials dispatched with a piece of equipment, machine, apparatus or vehicle, which are part of the normal equipment and included in the price thereof or which are not separately invoiced, shall be regarded as one with the piece of equipment, machine, apparatus or vehicle whose originating status is in question.

Article 13. Sets

Sets, as defined in General Rule 3 of the Harmonized System, shall be regarded as originating when all component products are originating products. When a set is composed of originating and non-originating products, the set as a whole shall be regarded as originating, provided that the value of the non-originating products does not exceed 15% of the ex-works price of the set.

Article 14. Neutral elements

In order to determine the originating status of a product, it shall not be necessary to determine the origin of the following elements which might be used in its manufacture:

a/ Energy and fuel.

b/ Production plants and equipment, including goods to be used for their maintenance.

c/ Machines, tools, dies and molds; spare parts and materials used in the maintenance of equipment and buildings; lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings; gloves, glasses, footwear, clothing, safety equipment and supplies; catalysts and solvents; equipment, devices and supplies used for testing or inspecting the product.

d/ Other goods which do not enter and which are not intended to enter into the final composition of the product.

Article 15. Accounting segregation

1. If originating and non-originating fungible materials are used in the working or processing of a product, the accounting segregation method may be applied according to current regulations, provided that the quantity of originating goods stated in account books equals the actual quantity of originating goods in stocks.

2. Accounting principles cover processes, practices and specific regulations on the recording of revenues, expenditures, costs, assets and debts, disclosure of information, and preparation of financial statements.

Article 16. Principle of territoriality

1. The conditions specified in Chapter II of this Circular shall be fulfilled without interruption in a Party.

2. If originating goods exported from a Party return from a country other than a Party to the UKVFTA, they shall be considered as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities that the returning goods:

a/ Are the same as those exported.

b/ Have not undergone any operation beyond what is necessary to preserve them in good condition while they were in that third country or while being exported.

Article 17. Non-alteration

1. The products declared for home use in a Party shall be the same products as exported from the other Party in which they are considered to originate, provided during transport or storage, they are not altered, transformed in any way or subjected to operations, except the following:

a/ Operations to preserve them in good condition.

b/ Adding or affixing marks, labels, seals or any other documentation to ensure compliance with specific domestic requirements of the importing Party.

c/ The operations referred to at Points a and b of this Clause are conducted under customs supervision in the country or countries of transit or splitting prior to being declared for home use.

 2. Storage of products or consignments may take place provided they remain under customs supervision in the country or countries of transit.

3. The splitting of consignments may take place where carried out by the exporter or under his responsibility, provided they remain under customs supervision in the country or countries of splitting.

4. In case of doubt, the importing Party may request the declarant to provide evidence of compliance, which may be given by any means, including:

a/ Contractual transport documents such as bills of lading.

b/ Factual or concrete evidence based on marking or numbering of packages.

c/ Any evidence related to the goods themselves.

d/ A certificate of non-manipulation provided by the customs authorities of the country or countries of transit or splitting, or any other documents demonstrating that the goods remained under customs supervision in the country or countries of transit or splitting.

5. The term “in case of doubt” referred to in Clause 4 of this Article is understood as that the importing Party may determine cases of necessity to request the importers to provide proofs under Clause 4 of this Article but must not request the submission of these proofs on a regular basis.

Article 18. Exhibitions

1. Originating products sent for exhibition in a country other than a Party to the UKVFTA and sold after the exhibition for importation in a Party shall benefit on importation from the provisions of the UKVFTA provided it is shown to the satisfaction of the customs authorities that:

a/ An exporter has consigned these products from a Party to the country in which the exhibition is held and has exhibited them there.

b/ The products have been sold or otherwise disposed of by that exporter to a person in the importing Party.

c/ The products have been consigned during the exhibition or immediately thereafter in the state in which they were sent for exhibition.

d/ The products have not, since they were consigned for exhibition, been used for any purpose other than demonstration at the exhibition.

2. A proof of origin must be issued or made out in accordance with the provisions of Chapter III of this Circular and submitted to the customs authorities of the importing Party in the normal manner. The name and address of the exhibition must be indicated thereon. Where necessary, the customs authorities of the importing Party may require additional documentary evidence of the conditions under which the products have been exhibited.

3. Clause 1 of this Article applies to any trade, industrial, agricultural or crafts exhibition, fair or similar public show or display which is not organized for private purposes in shops or business premises with a view to the sale of foreign products, provided that the products remain under customs control.

Chapter III

CERTIFICATION OF ORIGIN AND INSPECTION OF ORIGIN

Article 19. General provisions on mechanisms for certification of origin

1. Products originating in the UK shall, on importation into Vietnam, benefit from preferential tariff treatment within the framework of the UKVFTA upon submission of any of the following proofs of origin:

a/ A C/O made out in accordance with Articles 20 thru 23 of the Circular.

b/ An origin declaration made out in accordance with Article 24 of this Circular by an approved exporter in accordance with the relevant legislation of the UK for any consignment regardless of its value or any exporter for consignments the total value of which does not exceed EUR 6,000 (six thousand euros).

c/ A statement of origin made out by exporters registered in an electronic database in accordance with the relevant legislation of the UK after the UK has notified to Vietnam that such legislation applies to its exporters. Such notification may stipulate that Points a and b, Clause 1 of this Article shall cease to apply to the UK.

2. Products originating in Vietnam shall, on importation into the UK, benefit from preferential tariff treatment within the framework of the UKVFTA upon submission of any of the following proofs of origin:

a/ A C/O made out in accordance with Articles 4 and 20 thru 23 of this Circular.

b/ An origin declaration made out in accordance with Article 25 of this Circular for consignments the total value of which does not exceed EUR 6,000 (six thousand euros).

c/ An origin declaration made out by the exporter according to regulations of the Ministry of Industry and Trade.

d/ The origin declaration referred to at Point c, Clause 2 of this Article shall be made according to regulations of the Ministry of Industry and Trade and apply after Vietnam has notified to the UK that such regulations apply to its exporters.

3. In cases of applying Article 29 of this Circular, originating products shall benefit from preferential tariff treatment within the framework of the UKVFTA without requiring the submission of any of the proofs of origin referred to in this Article.

Article 20. Provisions on filling of C/Os, Form EUR.1

1. The specimen of a C/O, Form EUR.1, is provided in Appendix VI to this Circular.

2. A C/O shall not contain erasures or words written over one another. Any alterations must be made by deleting the incorrect particulars and adding any necessary corrections. Any such alteration must be initialed by the person who completed the C/O and endorsed by a competent authority.

3. No spaces shall be left between the items entered on a C/O and each item must be preceded by an item number. A horizontal line must be drawn immediately below the last item. Any unused space must be struck through in such a manner as to make any later additions impossible.

4. Goods shall be described in accordance with commercial practice and with sufficient details to enable them to be identified.

Article 21. Provisions on issuance of C/Os, Form EUR.1, within the framework of the UKVFTA

1. Competent authorities of the exporting Party shall check the declared descriptions of products in order to avoid any addition of false information.

2. The date of issuance of a C/O shall be indicated in Box 11 thereof.

3. A C/O shall be issued as soon as possible but not later than three working days after the date of exportation (the declared shipment date).

Article 22. C/Os issued retrospectively

1. Notwithstanding Clause 3, Article 21 of this Circular, a C/O may also be issued after exportation of the products to which it relates in specific situations where:

a/ It was not issued at the time of exportation because of errors, involuntary omissions or other valid reasons.

b/ It is demonstrated to the competent authorities that a C/O was issued but was not accepted at importation for technical reasons.

c/ The final destination of the products concerned was not known at the time of exportation and was determined during their transportation, storage or after splitting of consignments in accordance with Article 17 of this Circular.

2. In order to be issued a C/O after exportation of products according to Clause 1 of this Article, the exporter shall indicate in his application the place and date of exportation of the products to which the C/O relates, and state the reasons for his request.

3. Agencies or organizations issuing C/Os may issue a C/O retrospectively only after verifying the information provided in the exporter’s dossier of application for a C/O and other proofs (if any).

4. A C/O issued retrospectively shall be endorsed with the following phrase in English: “ISSUED RETROSPECTIVELY” in Box 7.

Article 23. Issuance of a duplicate C/O

1. In the event of theft, loss or destruction of a C/O, the exporter may apply to the competent authorities which issued it for a duplicate made out on the basis of the export documents in their possession.

2. The duplicate issued in this way must be endorsed with the following word in English: “DUPLICATE” in Box 7.

3. The duplicate, which must bear the date of issuance of the original C/O, shall take effect as from that date.

Article 24. Conditions for making out an origin declaration for products from the UK

1. An exporter may make out an origin declaration if the products concerned can be considered as products originating in the UK and fulfill the other requirements of the UKVFTA.

2. An origin declaration shall be made out by the exporter on the invoice, the delivery note or any other commercial document which describes the products concerned in sufficient details to enable them to be identified, by typing, stamping or printing on that document the declaration. The exporter shall use the text of the declaration in any of the languages appeared in Appendix VII to this Circular in accordance with the provisions of the domestic law of the UK. If the declaration is hand-written, it shall be written in ink in capital characters.

3. The term “any other commercial document” referred to in Clause 2 of this Article may be a consignment note, pro forma invoice or packing slip. Transport documents such as bill of lading or airway bill shall not be regarded as other commercial documents.

4. Origin declarations must not be made out in a separate form. An origin declaration may be made out in a page of a commercial invoice provided that such page is recognizable as part of the commercial invoice.

5. Origin declarations shall bear the original signature of the exporter in manuscript. However, an approved exporter as specified by the UK shall not be required to sign such declarations provided that he gives the competent authorities of the exporting Party a written undertaking that he accepts full responsibility for any origin declaration which identifies him as if it had been signed in manuscript by him.

6. An origin declaration may be made out after exportation provided that it is presented in the importing Party no later than 2 years, or the period specified in the legislation of the importing Party, after the entry of the goods into the territory of the importing Party.

Article 25. Conditions for making out an origin declaration for products from Vietnam

1. An exporter may make out an origin declaration according to the provisions at Point b, Clause 2, Article 19 of this Circular if the products concerned can be considered as products originating in Vietnam and fulfill the other requirements of the UKVFTA.

2. An origin declaration shall be made out by the exporter on the invoice, the delivery note or any other commercial document which describes the products concerned in sufficient details to enable them to be identified, by typing, stamping or printing on that document the declaration. The exporter shall use the text of the declaration in any of the languages appeared in Appendix VII to this Circular in accordance with the provisions of the law of Vietnam. If the declaration is hand-written, it shall be written in ink in capital characters.

3. The term “any other commercial document” referred to in Clause 2 of this Article may be a consignment note, pro forma invoice or packing slip. Transport documents such as bill of lading or airway bill shall not be regarded as other commercial documents.

4. Origin declarations must not be made out in a separate form. An origin declaration may be made out in a page of a commercial invoice provided such page is recognizable as part of the commercial invoice.

5. Exporters making out origin declarations as specified in Clause 1 of this Article shall submit proofs of origin of the products as well as proofs of compliance with other provisions of this Circular at the request of competent authorities.

6. An origin declaration may be made out after exportation provided that it is presented in the importing Party no later than 2 years, or the period specified in the legislation of the importing Party, after the entry of the goods into the territory of the importing Party.

7. Within 3 working days after making out an origin declaration, the exporter referred to in Clause 1 of this Article shall declare and post the origin declaration and documents relating to the consignment specified at Points c thru h, Clause 1, Article 15 of Decree No. 31/2018/ND-CP to the Ministry of Industry and Trade’s electronic certificate of origin issuance system at www.ecosys.gov.vn.

Article 26. Validity of proofs of origin

1. A proof of origin shall be valid for 12 months from the date of issuance in the exporting Party, and shall be submitted to the customs authorities of the importing Party within that period.

2. Proofs of origin which are submitted to the customs authorities of the importing Party after the period of validity referred to in Clause 1 of this Article may be accepted for the purpose of applying preferential tariff treatment within the framework of the UKVFTA, when the importer failed to submit those documents by the final date of the period of validity due to force majeure or other valid reasons beyond that person’s control.

3. In other cases of belated presentation, the customs authorities of the importing Party may accept the proofs of origin when the products have been imported within the period of validity referred to in Clause 1 of this Article.

Article 27. Submission of proofs of origin

For the purpose of claiming preferential tariff treatment within the framework of the UKVFTA, proofs of origin shall be submitted to the customs authorities of Vietnam within 2 years after the importation. The customs authorities may request a translation of the proof of origin if it is not issued in English.

Article 28. Importation by installments

Where, at the request of the importer and on the conditions laid down by the customs authorities of the importing Party, dismantled or non-assembled products within the meaning of General Rule 2(a) of the Harmonized System falling within Sections XVI and XVII or headings 7308 and 9406 of the Harmonized System are imported by installments, a single proof of origin for such products shall be submitted to the customs authorities upon importation of the first installment.

Article 29. Exemptions from proof of origin

1. Products sent as small packages from private persons to private persons or forming part of travelers’ personal luggage shall be admitted as originating products without requiring the submission of a proof of origin, provided that such products are not imported by way of trade and have been declared as meeting the requirements of this Circular and where there is no doubt as to the veracity of such declaration. In the case of products sent by post, this declaration can be made on the customs declaration or on a sheet of paper attached to that document.

2. Imports which are occasional and consist solely of products for the personal use of the recipients or travelers or their families shall not be considered as imports by way of trade if it is evident from the nature and quantity of the products that no commercial purpose exists.

3. The total value of the products referred to in Clauses 1 and 2 of this Article shall not exceed:

a/ When entering the UK, EUR 500 (five hundred euros) in the case of small packages or EUR 1,200 (one thousand and two hundred euros) in the case of products forming part of travelers’ personal luggage.

b/ When entering Vietnam, USD 200 (two hundred US dollars), both in the case of small packages and in the case of products forming part of travelers’ personal luggage.

Article 30. Supporting documents

The documents used for the purpose of proving the originating status of goods serving the issuance of a C/O or making out of an origin declaration include the following:

1. Direct evidence of the manufacturing or other processes carried out by the exporter or manufacturer to obtain the goods concerned, contained for example in his accounts or internal bookkeeping.

2. Documents proving the originating status of materials used, issued or made out in a Party, where those documents are used in accordance with current regulations.

3. Documents proving the working or processing of materials in a Party, issued or made out in a Party, where those documents are used in accordance with current regulations.

4. Proofs of origin proving the originating status of materials used, issued or made out in a Party in accordance with this Circular.

Article 31. Preservation of proof of origin and supporting documents

1. The exporter making out an origin declaration or applying for the issuance of a C/O shall keep for at least 3 years a copy of this origin declaration or of the C/O as well as of other documents.

2. The competent authorities of the exporting Party issuing a C/O shall keep for at least 3 years the application for issuance of a C/O.

3. The customs authorities of the importing Party shall keep for at least 3 years the proofs of origin submitted to them.

4. Each Party shall permit, in accordance with that Party’s laws and regulations, exporters in its territory to maintain documentation or records in any form or medium, provided that the documentation or records can be retrieved and printed.

Article 32. Discrepancies and formal errors

1. The discovery of slight discrepancies between the statements made in a proof of origin and those made in the documents submitted to the customs authorities for the purpose of carrying out the formalities for importing the products shall not ipso facto render the proof of origin null and void if it is duly established that this document corresponds to the products submitted.

2. Obvious formal errors such as typing errors on a proof of origin shall not cause this document to be rejected if these errors are not such as to create doubts concerning the correctness of the statements made in this document.

3. For multiple goods declared under the same proof of origin, a problem encountered with one of the goods listed shall not affect or delay the granting of preferential tariff treatment within the framework of the UKVFTA and customs clearance of the remaining goods listed in the proof of origin.

Article 33. Conversion of currencies

1. In cases where the value of goods referred to at Point b, Clause 1, Article 19 and Point a, Clause 3, Article 29 of this Circular are invoiced in a currency other than euro, amounts in the national currency of the UK or of Vietnam equivalent to the amounts expressed in euro shall be fixed annually by each Party.

2. A consignment shall benefit from Point b, Clause 1, Article 19 and Point a, Clause 3, Article 29 of this Circular by reference to the currency in which the invoice is drawn up, according to the amount fixed by the Party concerned.

Article 34. Verification of proofs of origin

1. Subsequent verifications of proofs of origin shall be carried out at random or whenever the competent authorities of the importing Party have reasonable doubts as to the authenticity of such documents, the originating status of the products concerned or the fulfillment of the other requirements of the UKVFTA.

2. For the purpose of Clause 1 of this Article, the competent authorities of the importing Party shall return the C/O and the invoice, if it has been submitted, or the origin declaration, or a copy of these documents, to the competent authorities of the exporting Party giving, where appropriate, the reasons for the enquiry. Any documents and information obtained suggesting that the information given on the proof of origin is incorrect shall be forwarded in support of the request for verification. The competent authorities or customs authorities of the export Party shall notify the competent authorities of the importing Party of the receipt of the request for verification of proofs of origin. The notification may be made in any modes, including also electronic mode.

3. The verification shall be carried out by the competent authorities of the exporting Party. For that purpose, they shall have the right to request any evidence and to carry out any inspection of the exporter’s accounts or any other check considered appropriate.

4. If the competent authorities of the importing Party decide to suspend the granting of preferential tariff treatment within the framework of the UKVFTA to the consignment concerned while awaiting the results of the verification, release of the products shall be offered to the importer subject to any precautionary measures deemed necessary. Any suspension of preferential tariff treatment within the framework of the UKVFTA shall be reinstated as soon as possible after the originating status of the products concerned or the fulfillment of the other requirements of this Circular has been ascertained by the competent authorities of the importing Party.

5. The competent authorities requesting the verification shall be informed of the results of this verification as soon as possible. These results must indicate clearly whether the documents are authentic and whether the products concerned can be considered as products originating in the Parties and fulfill the other requirements of the UKVFTA.

6. If in cases of reasonable doubt there is no reply from the competent authorities of the exporting Party within 10 months of the date of the verification request or if the reply does not contain sufficient information to determine the authenticity of the document in question or the real origin of the products, the competent authorities of the importing Party may, except in exceptional circumstances, refuse entitlement to the preferential tariff treatment. Before refusing entitlement to the preferential tariff treatment, the fact that whether or not the competent authorities of the exporting Party have received the request for verification must be clarified.

7. In case it must take more than 10 months to carry out the verification and make a reply according to Clause 6 of this Circular, the competent authorities of the exporting Party or the custom authorities of the exporting country shall notify thereof to the competent authorities of the importing Party.

Chapter IV

SPECIAL PROVISIONS

Article 35. The Principality of Andorra (Andorra)

Products originating in the Principality of Andorra and falling within Chapters 25 to 97 of the Harmonized System shall be accepted by the Parties as originating in the EU within the meaning of the UKVFTA.

Article 36. The Republic of San Marino (San Marino)

Products originating in the Republic of San Marino shall be accepted by the Parties as originating in the EU within the meaning of the UKVFTA.

Chapter V

IMPLEMENTATION PROVISIONS

Article 37. Goods in transit or temporary storage

The preferential tariff treatment within the framework of the UKVFTA may be applied to originating goods, which from January 1, 2021, are either in the Parties, in transit, in temporary storage, in customs warehouses or in free zones, subject to the submission of a proof of origin made out retrospectively to the customs authorities of the importing Party. If requested, the importer shall submit evidence according to Article 17 of this Circular to the customs authorities of the importing Party, showing that the goods have not been altered.

Article 38. Confidentiality

Each Party shall maintain, in accordance with its law, the confidentiality of information and data collected in the process of verification and shall protect that information and data from disclosure that could prejudice the competitive position of the person providing them. Any information and data communicated between the authorities of the Parties competent for the administration and enforcement of origin determination shall be treated as confidential.

Article 39. Organization of implementation

1. Instructions and arrangements for unanimous understanding concerning the Rules of Origin provided by the Parties one after another or together at reports of enforcement meetings of the Customs Committee within the framework of the UKVFTA shall serve as a basis for administration by C/O-issuing agencies and organizations and customs authorities.

2. The contents referred to in Clause 1 of this Article shall be notified to C/O-issuing agencies and organizations and customs authorities via focal points of the Customs Committee for implementation of the UKVFTA.

Article 40. Effect

This Circular takes effect on July 26, 2021.-

Minister of Industry and Trade
NGUYEN HONG DIEN

* The appendices to this Circular are not translated.