Circular No. 07/2006/TT-BTM dated April 17, 2006 of the Ministry of Trade guiding the procedures for, and management of, the grant of certificates of origin under the Government's Decree No. 19/2006/ND-CP dated february 20, 2006, detailing the Commercial Law regarding the origin of goods

CIRCULAR

GUIDING THE PROCEDURES FOR, AND MANAGEMENT OF, THE GRANT OF CERTIFICATES OF ORIGIN UNDER THE GOVERNMENT'S DECREE No. 19/2006/ND-CP OF FEBRUARY 20, 2006, DETAILING THE COMMERCIAL LAW REGARDING THE ORIGIN OF GOODS

Pursuant to the Government's Decree No. 29/2004/ ND-CP of January 16, 2004, defining the functions, tasks, powers and organizational structure of the Trade Ministry;

Pursuant to the Government's Decree No. 19/2006/ ND-CP of February 20, 2006, detailing the Commercial Law regarding the origin of goods;

The Trade Ministry hereby guides the procedures for, and management of, the grant of certificates of origin as follows:

I. GENERAL PROVISIONS

1. Scope of regulation

a/ This Circular guides the procedures for, and management of, the grant of certificates of origin (abbreviated to C/Os) for:

- Exported goods ineligible for tariff preferences and non-tariff preferences provided for in the Government's Decree No. 19/2006/ND-CP of February 20, 2006, detailing the Commercial Law regarding the origin of goods;

- Exported goods eligible for the general tariff preferences and other preferential regimes other than those mentioned at Point b, Clause 1, Section I of this Circular.

b/ For goods exported to countries or territories eligible for tariff preferences or non-tariff preferences under treaties to which Vietnam has signed or acceded, the grant of C/Os shall comply with the documents promulgated by the Trade Ministry guiding the implementation of such treaties' sections on rules of origin.

2. C/O forms

a/ Forms of C/O to be granted according to procedures specified in this Circular include:

- Form-A C/Os granted to Vietnamese products exported to countries and territories which sanction the general tariff preferences for Vietnam;

- Textile and garment C/Os granted to Vietnam's textile and garment products exported under international agreements to which Vietnam is a contracting party;

- Handmade textile C/Os granted to Vietnam's handmade textile products exported to the EU according to Protocol D in supplementation to the Textile and Garment Agreement between Vietnam and the EU;

- Coffee C/Os granted to Vietnam's exported coffee products according to regulations of the World Coffee Organization;

- Assorted C/Os set out by countries of importation of Vietnamese products or provided for in other international agreements to which Vietnam is a contracting party;

- Form-B C/Os granted to Vietnam's exported products in cases where exporters do not request the grant of any of the above-said C/O forms.

b/ Each ordinary goods item shall be granted one of the C/O forms enumerated at Point a, Clause 2, Section I of this Circular. Particularly for exported coffee, apart from coffee C/Os granted to Vietnam's exported coffee products according to regulations of the World Coffee Organization, exporters may request the grant of form-A or form-B C/Os. Besides, C/O-granting organizations may grant other C/O forms according to regulations of countries of importation;

c/ C/O forms mentioned in Clause 2, Section I of this Circular shall be issued by C/O-granting organizations.

3. C/O-granting modes

C/Os shall be granted by either of the following two modes:

a/ Paper C/Os: Paper C/Os shall be granted directly to enterprises at C/O-granting organizations;

b/ Electronic C/Os: C/Os shall be granted via the Trade Ministry's system of management and grant of electronic C/Os (hereinafter referred to as eCOSys), operated under the Trade Minister's approval in his Decision No. 0519/QD-BTM of March 21, 2006, and other electronic C/O-granting modes approved by the Trade Ministry for future application;

c/ Conditions for participation in eCOSys shall be specifically announced by the Trade Ministry as soon as this system is actually operated.

4. Responsibilities of C/O applicants

A C/O applicant shall have the responsibilities:

a/ To compile and submit a trader dossier to the C/ O-granting organization, for traders applying for C/O for the first time;

b/ To compile and submit a complete C/O application dossier set to the C/O-granting organization;

c/ To prove that exported goods satisfy origin criteria and facilitate the verification of origin of goods by the C/O-granting organization and verification organization;

d/ To take responsibility before law for the accuracy and truthfulness of contents declared in the trader dossier and the C/O application dossier set as well as the origin of exported goods, even in cases where it is mandated by the exporter;

e/ To take responsibility before law for the accuracy and truthfulness of contents of the electronic dossier, in cases where the enterprise, applies for electronic C/O;

f/ To promptly report to the C/O-granting organization in locality where the trader has applied for C/Os for the goods lots for which C/Os (if any) have been granted by Vietnam's C/O-granting organizations but not recognized by countries of importation.

5. Responsibilities of C/O-granting organizations

A C/O-granting organization shall have the responsibilities:

- To guide C/O applicants when so requested;

- To receive and inspect trader dossiers and C/O application dossier sets;

- To verify actual origins of products when necessary;

- To grant C/Os when goods satisfy the origin criteria and dossier sets comply with the provisions of this Circular;

- To archive C/O dossiers;

- To send specimens of signatures of persons authorized to sign C/Os and seals of C/O-granting organizations to the Export and Import Department of the Trade Ministry or the Vietnam Chamber of Commerce and Industry (for units attached to the Chamber) for registration with customs offices of countries of importation;

- To settle complaints about C/Os according to the provisions of Clause 1, Section IV of this Circular;

- To keep secret dossiers and documents related to the verification and certification of origin.

6. Responsibilities of verification organizations

- To verify the origin of goods when so requested by C/O applicants;

- Persons engaged in verification of origin must be professionally knowledgeable about origin of goods.

II. PROCEDURES FOR GRANTING C/Os

1. Registration of trader dossiers

a/ When submitting the first-time C/O application to the C/O-granting organization, a C/O applicant must also submit the following documents:

- Registration of specimen signature of the person authorized to sign the C/O application and specimen seal of the trader;

- The trader's business registration certificate (a copy affixed with "true copy" stamp);

- The tax identification number registration certificate (a copy affixed with "true copy" stamp);

- The list of the trader's production establishments.

b/ Any change in the trader dossier must be promptly notified to the C/O-granting organization where the C/O application is submitted. The trader dossier must be updated once every two (2) years;

c/ The trader applying for C/O shall only be considered for C/O grant at the place where its trader dossier has been registered;

d/ Traders whose C/O applications have been submitted but trader dossiers have not yet been registered shall have to register their trader dossiers within three (3) months after the effective date of this Circular.

2. C/O application dossier sets

a/A C/O application dossier set comprises:

-A completely and validly filled-in C/O application;

- A completely filled-in C/O form, consisting of one (1) original and three (3) copies. The original and one copy shall be sent by the exporter to the importer for submission to the customs office of the port or place of importation. The second copy shall be kept by the C/O-granting organization. The third copy shall be kept by the exporter. Where it is requested by the country of importation, the C/O applicant may request the C/ O-granting organization to grant more than three (3) C/O copies;

- The export customs declaration for which customs procedures have been carried out (a copy bearing signature of the authorized person and affixed with "true copy" stamp), except where exported goods are exempt from export customs declaration as provided for by law. In case of plausible reasons, the C/O applicant may delay the submission of this document for no more than thirty (30) days after the grant of C/O.

b/ When deeming it necessary, the C/O-granting organization may request the C/O applicant to additionally supply documents related to exported products, such as: customs declaration for import of raw materials and auxiliary materials; export permit; purchase and sale contract; value-added invoices on purchase and sale of raw materials and auxiliary materials at home; seaway bills of lading; airway bills of lading and other documents proving the origin of exported products;

c/ For enterprises participating in eCOSys, all documents shall be given such enterprises' electronic signatures and automatically transmitted to C/O-granting organizations. C/O-granting organizations shall base themselves on online dossiers to check the validity of information and grant C/Os to traders upon receipt of complete paper dossier sets.

3. Receipt of dossier sets

When C/O applicants submit their dossier sets, officials in charge of reception are responsible to receive such dossier sets. Officials in charge of reception must notify in writing requirements, make dossier receipts and hand to applicants one copy thereof when C/O-granting organizations request additional production of documents specified at Point b, Clause 8 or when C/O applicants so request. In cases where further verification is required, the time limit therefor must be specified according to the provisions of Point b, Clause 4, Section II of this Circular.

4. Grant of C/Os

a/ The time limit for grant of a C/O shall not exceed three (3) working days after the C/O applicant submits a complete and valid dossier set;

b/ In case of necessity, the C/O-granting organizations may also conduct inspection at places of production when they deem that the examination of dossier sets does not provide sufficient grounds for the grant of C/Os or when they detect signs of law violation in previously granted C/Os. Results of such inspection must be recorded in writing. Such a written record must be signed by the inspector, the C/O applicant and/or the exporter. Where the C/O applicant and/or the exporter fail to sign the written record, the inspector shall sign for certification after clearly stating the reasons therefor. The time limit for granting C/O in this case shall not exceed five (5) working days after the applicant submits a complete dossier set;

c/ In all cases, the time limit for verification must not impede the delivery of goods or payment by the exporter, unless the exporter is at fault.

5. Late grant of C/Os

In exceptional cases where C/Os are not granted at the time of exportation due to the fault of C/O granters or force majeure circumstances or for justifiable reasons supplied by C/O applicants, C/Os may be granted later and shall be valid as from the time of goods delivery but must not exceed one (1) year counting from the date of delivery to the date of actual grant, and bear the words "ISSUED RETROACTIVELY."

6. Re-grant of C/Os

a/ Where a C/O is lost, misplaced or damaged, the C/O applicant who wishes to apply for re-grant thereof must submit an application to the C/O-granting organization, clearly stating the reasons for re-grant application, a dossier set, the C/O original and copies (if any). The re-granted C/O shall bear the serial number and date of the old C/O and affixed with "CERTIFIED TRUE COPY" seal. A re-granted C/O must be granted within one (1) year after the grant of the original one. The time limit for re-grant shall not exceed three (3) days after the C/O-granting organization receives the C/O re-grant application;

b/ Where a C/O needs to be split into two (2) or more sets, the C/O applicant must submit an application to the C/O-granting organization, clearly stating the reasons for splitting up the C/O, submit the dossier set, the original and copies (if any) of the old C/O. In this case, one set of re-granted C/O shall bear the serial number and date of the old C/O while other sets shall be given new serial numbers and grant date;

c/ For goods which must be re-imported for reprocessing or transfer to another country of importation, the C/O applicant must submit an application, enclosed with the original and copies (if any) of the old C/O, to the C/O-granting organization, clearly stating the reasons for re-grant. Where at the time of application for grant, the old C/O is not yet withdrawn, the to be re-granted C/O shall be given new serial number and date of grant and type-written with the words "THIS C/O REPLACES THE C/O No. (serial number of the old C/O) DATED (date of grant of the old C/O)" in a proper box of the C/O form.

7. Refusal to grant C/Os

a/ A C/O-granting organization may refuse to grant a C/O in the following cases:

- The C/O applicant has not yet registered its trader dossier according to the provisions of Clause 1, Section II of this Circular;

- The C/O application dossier set is inaccurate and incomplete according to the provisions of Clause 2, Section II of this Circular;

- The C/O applicant has not yet submitted the delayed documents according to the provisions of Clause 2, Section II of this Circular;

- The dossier set contains contradictory details;

- The dossier set for C/O grant is produced not at the place where the trader dossier has been registered;

- The C/O form is filled in with handwriting, erased, faded out or printed in different colors;

- There exist lawful grounds proving that the product does not originate from Vietnam or the C/O applicant is fraudulent or dishonest in proving the origin of product.

b/ When refusing to grant C/O, the C/O-granting organization must clearly notify in writing the reasons therefor to the C/O applicant within three (3) working days after the date of refusal.

8. Fee for C/O grant

C/O applicants shall pay C/O-granting fee to C/O-granting organizations. The C/O-granting fee shall be set by C/O-granting organizations according to the Finance Ministry's current regulations on fees and charges. C/O grant fee rates must be publicly posted up at places of C/O grant.

9. Re-verification of origin of goods at the request of countries of importation

Where customs offices of countries or territories which import Vietnamese goods or Vietnamese competent agencies request the inspection of truthfulness of origin of such goods, Vietnam's C/O-granting organizations shall conduct the verification of origin of such goods and notify verification results to the above-said requesting agencies as soon as possible within six (6) months after receiving the verification request. Where C/O-granting organizations cannot reply within six (6) months, they must notify such to the requesting customs offices.

III. ORGANIZATION AND MANAGEMENT OF GRANT OF C/Os

1. Archive of dossiers

C/O copies granted by C/O-granting organizations and C/O application dossiers must be archived by C/ O-granting organizations, exporters and C/O applicants for three (3) years after the grant of such C/Os. Particularly for granted C/Os, exporters and C/ O applicants must archive copies granted by C/O-granting organizations to them. Certified photocopies of these C/O copies shall be valid for reference only.

2. Competence to sign C/Os

The Trade Minister or the Chairman of the Vietnam Chamber of Commerce and Industry shall designate competent persons to sign C/Os depending on the kinds thereof.

3. C/O-granting organizations

a/ C/O-granting organizations are regional import and export management departments under the Trade Ministry and units attached to the Vietnam Chamber of Commerce and Industry;

b/ The Vietnam Chamber of Commerce and Industry shall authorize its attached units to grant C/Os and take responsibility for operation of such units. The authorization and termination of authorization must be promptly reported to the Trade Ministry for the latter to handle related matters;

c/ The grant of certificates of origin, form A, to footwear exported to the EU shall be conducted by regional import and export management departments under the Trade Ministry in Hanoi, Hai Phong, Da Nang, Dong Nai, Binh Duong, Ho Chi Minh city and Vung Tau;

d/ The Trade Ministry shall authorize the Vietnam Chamber of Commerce and Industry to grant other C/O forms which are enumerated at Point a, Clause 2, Section I of this Circular. The list of C/O-granting organizations shall be announced by the Trade Ministry and the Vietnam Chamber of Commerce and Industry;

e/ Where errors or violations are detected in operation of C/O-granting organizations, the Trade Ministry shall stop C/O granting activities of such C/ O-granting organizations.

f/ The Trade Ministry shall publicize the list of C/ O-granting organizations on its website.

4. Reporting and information-updating regime

a/ C/O-granting organizations must observe the daily information updating regime (even when no C/O is granted in a day) on the grant of C/O and report such information to the Trade Ministry. The information updating shall comply with the Trade Ministry's standards;

b/ Where, within five (5) working days counting from the date of the latest report, the Trade Ministry does not receive such report, it shall remind in writing the C/O-granting organization for the first time. Within ten (10) working days after the receipt of the latest report, if it still receives no report, the Trade Ministry shall remind in writing the C/O-granting organization for the second time. Within fifteen (15) days after the receipt of the latest report, if it still receives no report, the Trade Ministry shall issue a decision to stop the C/O grant by such organization and publicize such decision on its website;

c/ The Trade Ministry shall guide and inspect the grant of C/Os in order to ensure that the grant of C/Os is conducted in compliance with regulations.

IV. SETTLEMENT OF COMPLAINTS AND HANDLING OF VIOLATIONS

1. Complaint-settling agencies

Exporters and C/O applicants may make complaints as follows:

a/ Where their C/Os are granted by regional import and export management departments of the Trade Ministry, they shall lodge complaints with such import and export management departments. Such import and export management departments must reply within three (3) working days. Where they do not satisfy with the replies, the C/O applicants may lodge their complaints with the Trade Minister or initiate lawsuits at administrative courts according to the provisions of law on complaints and denunciations;

b/ Where their C/Os are granted by the Vietnam Chamber of Commerce and Industry, they shall lodge their complaints with the Vietnam Chamber of Commerce and Industry, which shall have to reply within three (3) working days after receiving such complaints. Where they do not satisfy with the granter's replies, the C/O applicants may lodge their complaints with the Trade Minister or initiate lawsuits at administrative courts according to the provisions of law on complaints and denunciations.

2. Handling of violations

All fraudulent acts related to certificates of origin shall be handled according to the provisions of the Decree on sanctioning of administrative violations in the commercial domain. If their violations cause serious consequences, violators shall, depending on the nature and seriousness of their violations, be examined for penal liability. Where their violations cause damage to interests of the State or of agencies, organizations or individuals, they must pay compensations therefor according to the provisions of law.

3. Withdrawal of granted C/Os

C/O-granting organizations shall withdraw granted C/Os in the following cases:

a/ C/O applicants have forged any documents in submitted dossier sets. Besides, C/O-granting organizations shall put names of exporters that have forged documents as well as their testimonies on the list of C/O applicants to whom stricter inspection measures should be applied upon the grant of C/Os, and at the same time notify such acts of forging documents to competent agencies for handling.

b/ Granted C/Os are not conformable to origin criteria.

V. IMPLEMENTATION PROVISIONS

1. Implementation effect

This Circular takes effect 15 days after its publication in "CONG BAO." Any problem arising in the course of implementation should be promptly reported by concerned organizations and individuals to the Trade Ministry at the following address for solution:

The Import and Export Department - the Trade Ministry

21 Ngo Quyen Street, Hanoi

Telephone: 04-8262538

Facsimile: 04-8264696

E-mail: [email protected]

The E-Commerce Department- the Trade Ministry 21 Ngo Quyen Street, Hanoi Telephone: 04-8262538 Facsimile: 04-8264696 E-mail: [email protected]