Circular 05/2022/TT-BCT providing the Rules of Origin within the framework of the Regional Comprehensive Economic Partnership

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Circular No. 05/2022/TT-BCT dated February 18, 2022 of the Ministry of Industry and Trade providing the Rules of Origin within the framework of the Regional Comprehensive Economic Partnership
Issuing body: Ministry of Industry and TradeEffective date:
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Official number:05/2022/TT-BCTSigner:Nguyen Hong Dien
Type:CircularExpiry date:Updating
Issuing date:18/02/2022Effect status:
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Fields:Export - Import

SUMMARY

Rules of Origin within the framework of the RCEP

The Ministry of Industry and Trade issues the Circular No. 05/2022/TT-BCT, providing the Rules of Origin within the framework of the Regional Comprehensive Economic Partnership (RCEP) on February 18, 2022.

Accordingly, for preferential tariff treatment, the importer shall submit a valid proof of origin to the customs authority of the importing Party. Goods originating in the exporting Party with a customs value does not exceed 200 USD or the equivalent amount or higher in the importing Party’s currency shall not be required a proof of origin, provided that the importation is not a consecutive sequence or the consignment is not intentionally subdivided for the purpose of evading the submission of the proof of origin to the competent authority

Also in accordance with this Circular, packaging materials and containers for transportation purposes shall not be taken into account in determining the originating status of any good. In case a good is subject to a regional value content requirement, the value of the packaging materials and containers in which the good is packaged for retail sale shall be taken into account as originating materials or non-originating materials of the good, as the case may be, in calculating the regional value content of the good, etc.

Besides, in order to verify the origin of imported goods, competent authorities of an importing Party may conduct an inspection or a verification of origin of imports by one or more of the following forms: Sending a written request to the importer for more information; Sending a written request to the exporter or producer for more information; Sending a written request to the C/O issuing authority or organization or the competent authority of the exporting Party for more information, etc.

This Circular takes effect on April 04, 2022.

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Effect status: Known

THE MINISTRY OF INDUSTRY AND TRADE

__________

No. 05/2022/TT-BCT

THE SOCIALIST REPUBLIC OF VIETNAM

Independence - Freedom - Happiness

________________________

Hanoi, February 18, 2022

 

CIRCULAR

Providing the Rules of Origin within the framework of the Regional Comprehensive Economic Partnership

__________

 

Pursuant to the Government’s Decree No. 98/2017/ND-CP dated 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 dated March 08, 2018, detailing the Law on Foreign Trade Management regarding goods origin;

In the implementation of the Regional Comprehensive Economic Partnership signed online on November 15, 2020;

At the proposal of the Director General of the Authority of Foreign Trade,

The Minister of Industry and Trade hereby promulgates the Circular providing the Rules of Origin within the framework of the Regional Comprehensive Economic Partnership.

 

Chapter I

GENERAL PROVISIONS

 

Article 1. Scope of regulation

This Circular provides the Rules of Origin within the framework of the Regional Comprehensive Economic Partnership (hereinafter referred to as the RCEP).

Article 2. Subjects of application

This Circular applies to:

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

2. Traders.

3. Authorities, organizations and individuals engaged in activities concerning origin of imports and exports.

Article 3. Interpretation of terms

In this Circular, the terms below are construed as follows:

1. Aquaculture means farming aquatic organisms including fish, mollusks, crustaceans, other aquatic invertebrates, and aquatic plants from seed stock such as eggs, fry, fingerlings, and larvae, by intervention in the rearing or growth process to enhance production such as regular stocking, feeding or protection from predators.

2. CIF means the value of the imported goods when they are shipped to the port or the border gate of the importing Party, including the insurance and freight charge.

3. Competent authority means the Government authority or organization assigned by one Party as notified to other Parties.

4. FOB is the value of the goods on board, including the cost of goods transportation (regardless of transportation means) to the port or the final place before the cargo ship leaves the port.

5. Fungible goods or materials means goods or materials that are interchangeable for commercial purposes and whose properties are essentially identical.

6. Generally accepted accounting principles mean those principles recognized by consensus or with substantial authoritative support in one Party with respect to the recording of revenues, expenses, costs, assets and liabilities; the disclosure of information; and the preparation of financial statements. These principles may encompass broad guidelines for general application, as well as detailed standards, practices and procedures.

7. Good means any merchandise, product, article or material.

8. Authority or organization issuing C/Os means authority which is assigned or authorized by one Party to issue C/Os and has to notify to other member countries in accordance with this Circular.

9. Material means a good that is used in the production of another good.

10. Non-originating good or non-originating material means a good or material that does not qualify as originating under the rules of origin prescribed in this Circular.

11. Originating good or originating material means a good or material that qualified as originating under the rules of origin prescribed in this Circular.

12. Producer means a person or a legal entity that engages in the production of a good.

13. Production means operations including growing, cultivating, mining, harvesting, breeding, aquaculture, extracting, aquaculture, gathering, capturing, fishing, trapping, hunting, producing, processing or assembling a good.

Article 4. Certification and inspection of origin in Vietnam

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

a) Appendix I: Product specific rules.

b) Appendix II: The list of required information of documents certifying the origin of goods.

c) Appendix III: RCEP C/O form (export) and supplementary declaration form.

d) Appendix IV: The list of goods applied tariff differentials with conditions.

2. The list of authorities and organizations granting Vietnam’s RCEP C/O form shall be updated to the Ministry of Industry and Trade’s system for management and issuance of electronic certificates of origin at https://ecosys.gov.vn. Authorities and organizations issuing Vietnam’s RCEP C/Os shall register their seal and signature specimens and update changes thereof according to instructions of the Ministry of Industry and Trade.

3. The process of certification and inspection of origin must comply with the Government’s Decree No. 31/2018/ND-CP dated March 08, 2018, detailing the Law on Foreign Trade Management regarding origin of goods, law regulations on origin of goods and provisions specified in this Circular.

 

Chapter II

DETERMINATION OF GOODS ORIGIN

 

Article 5. Originating goods

A good is considered originating if it is:

1. Being wholly obtained or produced entirely in the territory of one Party as prescribed in Article 6 of this Circular.

2. Being produced in the territory of one Party and solely from materials originating in one or more of the Parties.

3. Being produced in the territory of one Party using non-originating materials, and meeting the requirements in Appendix I to this Circular.

Article 6. Wholly obtained goods

In pursuance to Clause 1, Article 5 of this Circular, the following goods shall be considered wholly obtained or produced in one Party:

1. Plants and plant products (including fruits, flowers, vegetables, plants, seaweeds, fungi and plants) grown, harvested, picked or gathered in a Party.

2. Live animals born and raised in a Party.

3. Products obtained from live animals raised in a Party.

4. Products obtained by hunting, trapping, fishing, farming, aquaculture, gathering or capturing in a Party.

5. A mineral and another naturally occurring substance, not included in Clauses 1 through 4 of this Article, extracted or taken from soil, water, seabed or layers of soil beneath the seabed.

6. Products of sea-fishing and other marine products taken by vessels of the Party (vessels registered with a Party and entitled to fly the flag of that Party) and other products taken by the Party or individuals or legal persons thereof from the waters, seabed or layers of soil beneath the seabed outside the waters of the Parties and non-Parties, in accordance with international law, provided that, in case products of sea-fishing and other marine products are taken from the exclusive economic zones of the Parties or non-Parties, accordance with international law, in the case of seafood and other marine products caught from the exclusive economic zones of the Parties or non-Parties, the Party or its individual or legal person has the right to exploit such exclusive economic zone and, for other products, the Party or its individual or legal person has the right to exploit the seabed and layers of soil beneath the seabed, in accordance with international law.

7. Products of sea-fishing and other marine products taken by vessels of the Party from the waters in accordance with international law.

8. Products processed or made on board factory ships of the Party, exclusively from the products referred to in Clause 6 or 7 of this Article.

9. Goods which are wastes and scraps derived from production and consumption in a Party, provided that such products are used only for the destruction, recycling of the raw materials or for recycling purposes; or are used products collected in the Party, provided that such products are used only for the destruction, recycling of the raw materials or for recycling purposes.

10. Goods obtained or produced in a Party exclusively from the products referred to in Clauses 1 through 9 of this Article or from their derivatives.

Article 7. Accumulation

Goods and materials specified in Article 5 of this Circular and used as raw materials in another Party in the production of other goods or materials shall be considered originating in the latter Party where working or processing of the finished goods has taken place.

Article 8. Regional value content

1. The regional value content (RVC) specified in Appendix I to this Circular shall be calculated by using either of the following formulas:

a) Build-down method:

RVC =

FOB - VNM

x 100

FOB

 

b) Build-up method:

RVC =

VOM + direct labor costs + direct overhead costs + profits + other costs

x 100

FOB

 

In which:

RVC is the regional value content, expressed as a percentage.

FOB is FOB price defined in Clause 4, Article 3 of this Circular.

VOM is the value of originating materials, parts, or products acquired or self-produced, and used in the production of goods.

VNM is the value of non-originating materials used in the production of goods.

Direct labor cost includes wages, remuneration, and other employee benefits.

Direct overhead cost is the total overhead expense.

2. The value of goods under this Circular shall be calculated in accordance with Article VII of the General Agreement on Tariffs and Trade (GATT) 1994 and the Customs Valuation Agreement. All costs shall be recorded and maintained in accordance with the Generally Accepted Accounting Principles applicable in the Party where the goods are produced.

3. The value of non-originating materials:

a) For imported materials, it is the CIF price of the materials at the time of importation.

b) For domestically produced materials, it is the selling price of the manufacturer of such materials.

4. A material of undetermined origin shall be treated as a non-originating material.

5. The following expenses may be deducted from the value of non-originating materials or materials of undetermined origin:

a) The costs of freight, insurance, packing and all other costs related to transportation incurred in transporting the material to the location of the producer of the good.

b) Duties, taxes, and customs brokerage fees, other than duties that are waived, refunded, or otherwise recovered.

c) Costs for waste and spillage, less the value of any renewable scrap or by-products.

6. In case where the expenses listed in Points a through c, Clause 5 of this Article are unknown or documentary evidence is not available, then no deduction is allowed for those expenses.

Article 9. Country of origin

1. Country of origin is a Party where the goods meet the requirements of Article 5 of this Circular.

2. In case goods are produced in a Party solely from originating materials of one or more Parties according to Clause 2, Article 5 of this Circular, the country of origin of the goods is the exporting Party, provided that the production process of such goods has passed minimal operations and processes as prescribed in Clause 3, Article 10 of this Circular.

3. In case goods are on the list of goods applied tariff differentials with additional rules of origin according to Appendix IV to this Circular, the country of origin of the goods is the exporting Party, provided that the goods meet the requirements specified in Article 5 of this Circular and the Domestic Value Content (DVC) is not less than 20%.

4. In case the exporting Party is not identified as the country of origin according to Clauses 1 through 3 of this Article, the country of origin shall be the Party with the highest total value of the originating materials used in the production of the goods in the exporting Party.

5. DVC is calculated according to the formula for calculating RVC specified in Article 8 of this Circular. Originating materials imported from other Parties are considered as non-originating materials when calculating the DVC.

Article 10. Minimal operations and processes

1. “Simple” means an activity that does not require special skills, machinery, equipment, or specially manufactured or installed equipment to perform the activity.

2. “Slaughter” means killing animals.

3. The following operations are considered as minimal operations and processes:

a) Preserving operations to ensure that the goods remain in good condition for the purposes of transport or storage.

b) Packaging or presenting goods for transportation or sale.

c) Simple processes, consisting of sifting, screening, sorting, classifying, sharpening, cutting, slitting, grinding, bending, coiling, or uncoiling.

d) Affixing or printing of marks, labels, logos, or other like distinguishing signs on goods or their packaging.

dd) Mere dilution with water or another substance that does not materially alter the characteristics of the goods.

e) Disassembly of products into parts.

g) Slaughtering of animals.

h) Simple painting and polishing operations.

i) Simple peeling, stoning, or shelling.

k) Simple mixing of goods, whether or not of different kinds.

l) Combination of two or more operations referred to at Points a through k of this Clause.

4. The operations specified in Clause 3 of this Article when undertaken on non-originating materials to produce goods shall be considered as insufficient working or processing to confer on that good the status of an originating good.

Article 11. De Minimis

1. A good that does not satisfy the applicable change in tariff classification requirement specified in Appendix I to this Circular is nonetheless an originating good if it meets all of the other provisions of this Circular and is subject to one of the following cases:

a) For a good classified in Chapters 01 through 97 of the Harmonized Commodity Classification and Coding System, the value of all non-originating materials that have been used in the production of the good and did not undergo the applicable change in tariff classification does not exceed 10% of the FOB value of such good. The value of non-originating materials shall be calculated according to Clause 3, Article 8 of this Circular.

b) For a good classified in Chapters 50 through 63 of the Harmonized Commodity Classification and Coding System, the weight of all non-originating materials used in the production of the good that did not undergo the applicable change in tariff classification does not exceed 10% of total weight of the good.

2. The value of non-originating materials referred to in Clause 1 of this Article shall, however, be included in the value of non-originating materials for any applicable regional value content requirement.

Article 12. Packaging materials and containers

1. Packaging materials and containers for transportation purposes shall not be taken into account in determining the originating status of any good.

2. Packaging materials and containers in which a good is packaged for retail sale, which are classified together with the good, shall not be taken into account in determining the originating status of the good, provided that:

a) Being wholly obtained or produced entirely in a Party as prescribed in Clause 1, Article 5 of this Circular.

b) Being produced in a Party exclusively from originating materials in one or more of the Parties as prescribed in Clause 2, Article 5 of this Circular.

c) Satisfying the change in tariff classification or a specific manufacturing or processing operation requirement provided in Appendix I to this Circular.

3. In case a good is subject to a regional value content requirement, the value of the packaging materials and containers in which the good is packaged for retail sale shall be taken into account as originating materials or non-originating materials of the good, as the case may be, in calculating the regional value content of the good.

Article 13. Accessories, spare parts and tools

1. Accessories, spare parts, tools and instructional or other information materials presented with the good shall be considered as part of the good and shall be disregarded in determining whether all the non-originating materials used in the production of the good have undergone the applicable change in tariff classification or a specific manufacturing or processing operation as prescribed in Appendix I to this Circular, provided that:

a) The accessories, spare parts, tools, and instructional or other information materials presented with the good are not invoiced separately from the good.

b) The quantities and value of the accessories, spare parts, tools, and instructional or other information materials presented with the good are customary for the good.

2. Notwithstanding Clause 1 of this Article, if a good is subject to a regional value content requirement, the value of the accessories, spare parts, tools, and instructional or other information materials presented with the good shall be taken into account as originating materials or non-originating materials, as the case may be, in calculating the regional value content of the good, provided that:

a) The accessories, spare parts, tools, and instructional or other information materials presented with the good are not invoiced separately from the good.

b) The quantities and value of the accessories, spare parts, tools, and instructional or other information materials presented with the good are customary for the good.

Article 14. Indirect materials

1. An indirect material shall be treated as an originating material without regard to where it is produced and its value shall be the cost registered in accordance with the Generally Accepted Accounting Principles in the records of the producer.

2. Indirect material means a good used in the production, testing, or inspection of another good but not physically incorporated into that other good, or a good used in the maintenance of buildings or the operation of equipment associated with the production of a good, including:

a) Fuel and energy.

b) Tools, dies and moulds.

c) Spare parts and materials used in the maintenance of equipment and buildings.

d) Lubricants, greases, compounding substances and other materials used in production or used to operate equipment and buildings.

dd) Gloves, glasses, footwear, clothing, supplies and equipment for labor protection.

e) Equipment, machinery and supplies used for testing or inspecting goods.

g) Catalysts and solvents.

h) Any other materials that are not incorporated into the product but whose use in the production of the good can reasonably be demonstrated to be a part of that production.

Article 15. Fungible goods or materials

The determination of whether fungible goods or materials are originating or non-originating shall be made either by physical segregation of each of the similar fungible goods or materials or, where commingled, by the use of an inventory management method which is recognized in the Generally Accepted Accounting Principles of the exporting Party, and should be used throughout the fiscal year.

Article 16. Materials used in production

A non-originating material that satisfies the requirements of this Circular, the material shall be treated as originating when determining the originating status of the subsequently produced good, regardless of whether that material was produced by the producer of the good.

Article 17. Unit for determining origin of goods

1. The unit used to determine the origin of goods for the application of this Circular shall be the particular good which is considered as the basic unit when determining classification under the Harmonized System of Goods Description and Coding.

2. When a consignment consists of a number of identical goods classified under a single tariff line, each good shall be individually taken into account in determining whether it qualifies as an originating good.

Article 18. Direct consignment

1. An originating good shall retain its originating status as determined under Article 5 of this Circular if the following conditions have been met:

a) The good has been transported directly from an exporting Party to an importing Party.

b) The good has been transported through one or more Parties other than the exporting Party and the importing Party (hereinafter referred to as intermediate Parties), or non-Parties, provided that the good:

b1) Has not undergone any further processing in the intermediate Parties or the non-Parties, except for logistics activities such as unloading, reloading, storing, or any other operations necessary to preserve it in good condition or to transport it to the importing Party.

b2) Remains under the control of the customs authorities in the intermediate Parties or the non-Parties.

2. In the case goods are transported according to Point b, Clause 1 of this Article shall be evidenced by presenting the customs authorities of the importing Party either with customs documents of the intermediate Parties or the non-Parties, or with any other appropriate documentation on request of the customs authorities of the importing Party.

3. Appropriate documentation according to Clause 2 of this Article may include commercial shipping or freight documents such as airway bills, bills of lading, multimodal or combined transport documents, a copy of the original commercial invoice in respect of the good, financial records, a non-manipulation certificate, or other relevant supporting documents, as may be requested by the customs authorities of the importing Party.

 

Chapter III

CERTIFICATION AND INSPECTION OF ORIGIN

 

Article 19. General provisions on the mechanism of certification of origin

1. Originating goods of Vietnam exported to Parties shall be considered for preferential tariff treatment within the framework of the RCEP when a C/O is issued according to this Circular.

2. Originating goods imported into Vietnam from Parties shall be considered for preferential tariff treatment within the framework of the RCEP upon submitting one of the following proofs of origin:

a) The C/O is issued by the C/O-issuing authority or organization in accordance with Articles 21 and 22 of this Circular.

b) The declaration of origin issued by an approved exporter in accordance with Articles 20 and 22 of this Circular.

3. A declaration of origin specified at Point b, Clause 2 of this Article shall:

a) Be issued in writing or other forms, including electronic form.

b) Include the minimum information specified in Appendix II to this Circular.

c) Be valid for 1 year from the date of issuance.

d) Be in English language, bear the signature and name of the declaring person and date of issuance.

Article 20. Approved exporter

1. The competent authority of an exporting Party may apply the mechanism of declaration of origin to the approved exporter according to regulations of the exporting Party. An approved exporter must satisfy the following requirements:

a) The exporter is duly registered in accordance with regulations of the exporting Party.

b) The exporter knows and understands the rules of origin.

c) The exporter has a satisfactory level of experience in export according to regulations of the exporting Party.

d) The exporter has a record of good compliance and risk management system.

dd) The exporter, in the case of a trader, is able to obtain a declaration by the producer confirming the originating status of the good for which the declaration of origin is completed by an approved exporter and the readiness of the producer to cooperate in verification according to regulations.

e) The exporter has a well-maintained bookkeeping and record-keeping system according to regulations of the exporting Party.

2. The competent authority of the exporting Party shall grant a written approval to the approved exporter in writing or electronic form, provide the authorization code to the approved exporter, and inform information of the approved exporter as prescribed in Clause 4 of this Article.

3. An approved exporter shall be entitled to grant declarations of origin for goods that are allowed to do so and provide documents related to such export goods.

4. The competent authority of the exporting Party shall include information on the approved exporter in the database, including:

a) The legal name and address of the approved exporter.

b) The approved exporter authorization code.

c) The issuance date and, if applicable, the expiry date of the authorization code.

d) A list of goods subject to the authorization, at least at the HS Chapter level.

5. Any change referred to in Points a through d, Clause 4 of this Article, or the removal or suspension of authorization for declaration of origin, shall be promptly notified to the other Parties. In case the competent authority of the exporting Party has established its own secured website, that is accessible to the Parties, it is not required to notify in the form above.

6. The competent authority of the exporting Party shall monitor the use of the authorization, including verification of the declarations of origin by an approved exporter, and withdraw the authorization where the conditions referred to in Clause 1 are not met.

7. An approved exporter shall be prepared to submit at any time, on request of the customs authorities of the importing Party, all appropriate documents proving the originating status of the goods concerned, including statements from the suppliers or producers in accordance with the laws and regulations of the importing Party as well as the fulfillment of the other requirements of this Circular.

8. This Article applies to exporters eligible approved for declaration of origin for goods imported from other Parties to Vietnam.

Article 21. C/Os

1. A C/O shall be issued by the issuing authority or organization of an exporting Party upon an application by an exporter, a producer, or the authorized representative.

2. The exporter, producer, or the authorized representative shall apply in writing or by electronic form for a C/O, to the issuing authority or organization in accordance with the exporting Party’s regulations.

3. A C/O shall:

a) Bear a unique certificate of origin number.

b) Be in the English language.

c) Bear an authorized signature and official seal of the issuing authority or organization of the exporting Party. The signature and seal shall be applied manually or electronically.

d) Indicate two or more invoices issued for a single shipment.

dd) Contain multiple goods, provided that each good qualifies as an originating good separately in its own right.

e) Determine that the goods are originating and satisfy the provisions of this Circular.

g) Include the minimum information specified in Appendix II to this Circular.

4. The form of RCEP C/O specified in Appendix III to this Circular applies to goods exported from Vietnam to other Parties.

5. In case of a C/O contains incorrect information, the issuing authority or organization of the exporting Party shall:

a) Issue a new C/O and invalidate the original C/O.

b) Make modifications to the original C/O by striking out errors and making any additions or corrections. Any changes shall be certified by the authorized signature and official seal of the issuing authority or organization of the exporting Party.

6. In the exception when a C/O has not been issued at the time of shipment due to involuntary errors, omissions, or other valid causes, or in the circumstances specified at Point a, Clause 5 of this Article, a C/O may be issued retrospectively but no later than one year after the date of shipment. In that case, the C/O shall bear the words “ISSUED RETROACTIVELY”.

7. In case of theft, loss, or destruction of an original C/O, the exporter, producer, or their authorized representative may apply in writing to the issuing authority or organization of the exporting Party for a certified true copy of the original C/O. The copy of shall:

a) Be issued no later than one year after the date of issuance of the original C/O.

b) Be based on the application for the original C/O.

c) Contain the same C/O number and date as the original C/O.

d) Be endorsed with the words “CERTIFIED TRUE COPY”.

8. The C/O is valid for one year from the date of issuance.

Article 22. Back-to-back proof of origin

1. An issuing authority or organization, approved exporter of an intermediate Party may issue a back-to-back proof of origin provided that:

a) A valid original proof of origin or its certified true copy is presented.

b) The period of validity of the back-to-back proof of origin does not exceed the period of validity of the original proof of origin.

c) The back-to-back proof of origin contains relevant information from the original proof of origin in accordance with Appendix II to this Circular.

d) The consignment which is to be re-exported using the back-to-back proof of origin does not undergo any further processing in the intermediate Party, except for repacking or logistics activities such as unloading, reloading, storing, splitting up of the consignment, or labeling only as required by regulations of the importing Party, or any other operations necessary to preserve a good in good condition or to transport a good to the importing Party.

dd) For partial export shipments, the partial export quantity shall be shown instead of the full quantity of the original proof of origin, and the total quantity re-exported under the partial shipment shall not exceed the total quantity of the original proof of origin.

e) Information on the back-to-back proof of origin includes the date of issuance and reference number of the original proof of origin.

2. The verification procedures as prescribed in Article 24 of this Circular shall also apply to the back-to-back proof of origin.

Article 23. Third-Party invoicing

The customs authority of an importing Party shall not deny a claim for preferential tariff treatment for the sole reason that an invoice was not issued by the exporter or producer of a good, provided that the good meets the requirements in this Circular.

Article 24. Inspection and verification of origin

1. In order to verify the origin of imported goods, competent authorities of an importing Party may conduct an inspection or a verification of origin of imports by one or more of the following forms:

a) Sending a written request to the importer for more information.

b) Sending a written request to the exporter or producer for more information.

c) Sending a written request to the C/O issuing authority or organization or the competent authority of the exporting Party for more information.

d) Physically inspecting the premises of the exporter or producer of the good in the exporting Party to observe the premises and producing processes of the good and documents related to the origin of goods including accounting documents. The physical inspection at the premises shall be carried out only after conducting the verification according to Point c of this Clause.

dd) Other forms as agreed between Parties.

2. The importing Party shall inspect and verify the origin of goods as follows:

a) In case of inspection and verification of the origin of goods according to Point b, Clause 1 of this Article, the importing Party shall send a letter of request enclosed with a copy of the proof of origin and reasons for the verification to the exporter or producer and the competent authority of the exporting Party.

b) In case of inspection and verification of the origin of goods according to Point c, Clause 1 of this Article, the importing Party shall send a letter of request enclosed with a copy of the proof of origin and reasons for the verification to the C/O issuing authority or organization or the competent authority of the exporting Party.

c) In case of inspection and verification of the origin of goods according to Point d, Clause 1 of this Article, the importing Party shall request the exporter or producer and the competent authority of the exporting Party to send a letter agreeing to the inspection and verification at the premises and stating the expected work schedule, inspection location and purpose of the inspection.

3. At the request of the importing Party, an inspection of the premises of the exporter or the producer may be carried out with the consent and assistance of the exporting Member State subject to an agreement between the importing Party and the exporting Party.

4. In the case of verification specified at Points a through d, Clause 1 of this Article, the importing Party shall:

a) Allow the importer, exporter, producer or C/O issuing authority or organization or competent authority of the exporting Party to respond within 30 days to 90 days from the date of receipt of a letter of request for verification according to Points a through c, Clause 1 of this Article.

b) Allow the exporter, producer or competent authority to accept or reject the request within 30 days from the date of receipt of the request for verification mentioned at Point d, Clause 1 of this Article.

c) Issue a decision between 90 days and 180 days from the date of receipt of the information necessary to make the decision.

5. According to Clause 1 of this Article, the importing Party shall send a written notice of the results of the inspection or verification with reasons to the importer, exporter, or producer, C/O issuing authority or organization or competent authority of the exporting Party.

6. The customs authority of the importing Party may suspend the application of preferential tariff treatment while waiting for the results of the verification. The importing Party shall allow the clearance of goods but may require compliance with domestic regulations.

Article 25. Submission of proof of origin of goods for preferential tariff treatment

1. For preferential tariff treatment, the importer shall submit a valid proof of origin to the customs authority of the importing Party.

2. Goods originating in the exporting Party with a customs value does not exceed 200 (two hundred) USD or the equivalent amount or higher in the importing Party’s currency shall not be required a proof of origin, provided that the importation is not a consecutive sequence or the consignment is not intentionally subdivided for the purpose of evading the submission of the proof of origin to the competent authority.

3. In case the good has been transported through one or more Parties other than the exporting Party and the importing Party according to Point b, Clause 1, Article 18 of this Circular, the customs authority may require the importer to submit proof of origin as prescribed in Clause 3, Article 18 of this Circular.

4. In case proof of origin is submitted to the customs authority of an importing Party after the prescribed time limit, such proof of origin may still be accepted, when failure to observe the prescribed time limit results from force majeure or other valid causes beyond the control of the importer or exporter.

Article 26. Additional submission of proof of origin of goods for preferential tariff treatment

In case the importer has not yet declared for preferential tariff treatment at the time of carrying out import customs procedures, for preferential tariff treatment, the importer shall be responsible for:

1. Specifying the origin of goods and declaring late submission of proof of origin on the import customs declaration at the time of customs clearance.

2. Declaring and submitting the proof of origin within the specified time limit.

Article 27. Denial of preferential tariff treatment

1. The customs authority of the importing Party may deny preferential tariff treatment in either of the following cases:

a) The good does not meet the requirements of this Circular.

b) The importer, exporter or producer of goods cannot prove that the goods meet the requirements of this Circular for preferential tariff treatment.

2. If the customs authority of the importing Party denies a claim for preferential tariff treatment, it shall provide the decision in writing to the importer that includes the reasons for the decision.

3. The customs authority may deny preferential tariff treatment in the following cases:

a) The customs authority has not received sufficient information to determine that the good is originating.

b) The exporter, producer, or the competent authority of the exporting Party fails to respond to a written request for inspection and verification of origin of goods as prescribed in Article 24 of this Circular.

c) The request for inspection and verification at premises according to Article 24 of this Circular is refused.

Article 28. Transitional provisions for goods in transit

On the effective date of the RCEP, goods in transit to or not yet been imported into the importing Party that meet the requirements of this Circular shall be considered for preferential tariff treatment. The importer shall declare and submit the proof of origin within 180 days from the effective date of the RCEP.

Article 29. Minor discrepancies or errors

In case where there is no doubt about the origin of the goods, the discovery of minor discrepancies such as typographical errors between the information on the proof of origin and the information on the proof of origin submitted to the customs authority of the importing Party for import clearance shall not invalidate the proof of origin if these discrepancies are consistent with the actual imported goods.

Article 30. Record keeping

1. The exporter, producer, C/O issuing authority or organization, or competent authority shall retain, for at least a period of three years from the date of issuance of the proof of origin, or a longer period according to its regulations, all records necessary to prove that the good for which the proof of origin was issued was originating.

2. The importer shall retain, for at least a period of three years from the date of importation of the good, or a longer period according to its regulations, all records necessary to prove that the good for which preferential tariff treatment was claimed was originating.

3. The records referred to in Clauses 1 and 2 may be maintained in any medium that allows for prompt retrieval, including in digital, electronic, optical, magnetic, or written form according to the Party’s regulations.

 

Chapter IV

IMPLEMENTATION PROVISIONS

 

Article 31. Organization of implementation

1. Guidelines and consensus on understanding related to the rules of origin of goods which are agreed by the Parties one after another or in the report of the implementation sessions of the Joint Committee and Sub-Committee on Rules of Origin within the framework of the RCEP shall serve as grounds for implementation by C/O issuing authorities or organizations and customs authorities.

2. The contents mentioned in Clause 1 of this Article shall be notified to C/O issuing authorities or organizations and customs authorities through the Ministry of Industry and Trade and the Ministry of Finance (the General Department of Customs).

Article 32. Implementation provisions

1. This Circular takes effect on April 04, 2022.

2. Authorities and organizations issuing C/Os shall consider granting the RCEP C/O forms for Vietnam’s exported goods before the effective date of this Circular for entitlement to preferential tariff treatment under the RCEP and regulations of importing Parties.

3. Customs authorities of importing Parties shall accept proof of origin issued from January 01, 2022. Procedures for examining proof of origin for grant of preferential tariffs treatment shall comply with the RCEP, provisions of Chapter III of this Circular and relevant legal documents./.

 

 

THE MINISTER

 

Nguyen Hong Dien

 

 

* All Appendices are not translated herein.

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Decree No. 51/2022/ND-CP dated August 08, 2022 of the Government amending the preferential import duty rates applicable to petroleum products under heading 27.10 in the Preferential Import Tariff promulgated together with the Government's Decree No. 57/2020/ND-CP dated May 25, 2020, amending and supplementing a number of articles of the Government’s Decree No. 122/2016/ND-CP of September 1, 2016, on the Export Tariff, the Preferential Import Tariff and the list of commodity items and their specific duty rates, compound duty rates and out-of-quota import duty rates, and Decree No. 125/2017/ND-CP of November 16, 2017, amending and supplementing a number of articles of Decree No. 122/2016/ND-CP

Decree No. 51/2022/ND-CP dated August 08, 2022 of the Government amending the preferential import duty rates applicable to petroleum products under heading 27.10 in the Preferential Import Tariff promulgated together with the Government's Decree No. 57/2020/ND-CP dated May 25, 2020, amending and supplementing a number of articles of the Government’s Decree No. 122/2016/ND-CP of September 1, 2016, on the Export Tariff, the Preferential Import Tariff and the list of commodity items and their specific duty rates, compound duty rates and out-of-quota import duty rates, and Decree No. 125/2017/ND-CP of November 16, 2017, amending and supplementing a number of articles of Decree No. 122/2016/ND-CP

Export - Import , Tax - Fee - Charge

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