Circular 11/2020/TT-BCT Rules of Origin in the Free Trade Agreement VN - EU

CIRCULAR

Providing the Rules of Origin in the Free Trade Agreement between Vietnam and the European Union^[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 origin of goods;

In furtherance of the Free Trade Agreement between Vietnam and the European Union which was signed on June 30, 2019, in Hanoi, Vietnam;

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

The Minister of Industry and Trade promulgates the Circular providing the Rules of Origin in the Free Trade Agreement between Vietnam and the European Union.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Circular provides the Rules of Origin in the Free Trade Agreement between Vietnam and the European Union(EVFTA).

Article 2.Subjects of application

This Circular applies to:

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

2. Traders.

3. Agencies, organizations and individuals involved in the origin of imports and exports.

Article 3.Interpretation of terms

For the purpose of this Circular, the terms below are construed as follows:

1. “Chapters”, “headings” and “subheadings” mean the chapters (2-digit codes), the headings (4-digit codes) and the subheadings (6-digit codes) used in the Harmonized Commodity Description and Coding System (below referred to as the Harmonized System or the HS).

2. “Classified” means included in the classification of a good or material under a particular Chapter, heading, or subheading of the HS.

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 an individual or organization located in the exporting Party that is exporting the goods to the other Party and that is able to prove the origin of the exported goods. The exporter may be the manufacturer or the entity carrying out the export formalities. The exporter is not necessarily the seller that issues an invoice for the consignment (third-party invoicing). The seller can be located in the territory of a non-Party to the EVFTA.

6. “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, minus any internal taxes which are, or may be, repaid when the product obtained is exported.

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

c/ In case the last working or processing has been subcontracted to a manufacturer, the term “manufacturer” referred to in this Clause is understood as the trader that has employed the subcontractor.

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

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

9. “Goods” means both materials and products.

10. “Manufacture” means any kind of activities to turn out products, including working, processing, manufacturing, processing or assembling.

11. “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.

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

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

14. “Territories” includes territorial sea.

15. “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 buying price of the materials in Vietnam or 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: Introductory notes to the Product Specific Rules referred to in Appendix II.

b/ Appendix II: Product Specific Rules.

c/ Appendix III: Aquaculture materials eligible for cumulation of origin.

d/ Appendix IV: Aquaculture products eligible for cumulation of origin.

dd/ Appendix V: Textile products eligible for cumulation of origin.

e/ Appendix VI: Specimen of EUR.1 movement certificate of Vietnam.

g/ Appendix VII: Text of origin declaration by the exporter.

h/ Appendix VIII: List of agencies and organizations issuing EUR.1 movement certificates of Vietnam.

2. The list of agencies and organizations issuing EUR.1 movement certificates of Vietnam shall be updated at the Ministry of Industry and Trade’s Vietnam Electronic Certificate of Origin Issuance System (www.ecosys.gov.vn). Agencies and organizations issuing EUR.1 movement certificates of Vietnam shall register specimen seals and update these specimen seals according to guidance of the Ministry of Industry and Trade.

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

Chapter II

METHODS OF DETERMINING THE ORIGINATING STATUS OF GOODS

Article 5.Originating goods

A good shall be regarded as originating if:

1. It is wholly obtained in a Party within the meaning of Article 6 of this Circular.

2.  It is not wholly obtained in a Party incorporating non-originating materials, 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. For the purpose of Clause 1, Article 5 of this Circular, the following goods shall be regarded as wholly obtained in a Party:

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

b/ Plants and plant 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 the 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 its territorial sea but inside its exclusive economic zone.

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

2. The term “plants and plant products” specified 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” specified respectively at Points h and i, Clause 1 of this Article apply only to vessels and factory ships which meet either of the following conditions:

a/ Being registered in, and sailing under the flag of, Vietnam or a Member State of the European Union and being at least 50% owned by natural persons of a Party.

b/ Being registered in, and sailing under the flag of, Vietnam or a Member State of the European Union and being owned by legal persons which have their head office and their main place of business in the concerned Party, and which are at least 50% owned by Vietnam or a Member State of the European Union or by public entities or natural persons of a Party.

Article 7.Not wholly obtained goods

1. For the purpose of Clause 2, Article 5 of this Circular, goods which are not wholly obtained shall be regarded to be sufficiently worked or processed when reaching the Product Specific Rules referred to in Appendix II to this Circular.

2. For materials used to manufacture products or goods:

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

b/ In case a product which has acquired originating status as prescribed in Appendix II to this Circular is later used as materials for the manufacture of another product, the conditions applicable to the other product shall not apply to the product used as materials as well as non-originating materials which may have been used in its manufacture.

Article 8.Tolerances applicable to non-originating materials

1. In case of failure to meet the requirements in Clause 1, Article 7 of this Circular and subject to Clauses 2 and 3 of this Article, non-originating materials may be used, provided that their total value or net weight does not exceed:

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

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

c/ The tolerances for products of Chapters 50 to 63 of the HS shall comply with Notes 6 and 7 of Appendix I to this Circular.

2. The application of Clause 1 of this Article shall not allow to exceed 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 shall not apply to wholly obtained products 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 prescribed in Clauses 1 and 2 of this Article shall apply to 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. Goods shall be considered originating in the exporting Party if they are manufactured there from materials originating in the other Party, 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. Materials listed in Appendix III to this Circular originating in an ASEAN country which has signed with the European Union a trade agreement in accordance with Article XXIV of GATT 1994 shall be regarded as materials originating in Vietnam when further processed or incorporated into one of the products listed in Appendix IV to this Circular.

3. For the purpose of Clause 2 of this Article, the origin of the materials shall be determined according to the rules of origin applicable in the framework of the European Union’s trade agreements with such ASEAN country.

4. For the purpose of Clause 2 of this Article, the originating status of materials exported from one of the ASEAN countries 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 European Union.

5. The cumulation provided for in Clauses 2 to 4 of this Circular may only be applied if:

a/ The ASEAN countries involved in the acquisition of the originating status have undertaken to comply or ensure compliance with the provisions of the EVFTA and provide the administrative cooperation necessary to ensure the correct implementation of the EVFTA both with regard to the European Union and among themselves;

b/ The undertakings referred to at Point a of this Clause have been notified to the European Union;

c/ The preferential tariff duty the European Union applies to the products listed in Appendix IV to this Circular is higher than or the same as the duty applicable to the countries involved in the cumulation.

6. Proofs of origin issued for application of Clause 2 of this Article shall bear the following entry: “Application of Article 3(2) of the Protocol of the Vietnam - EU FTA”.

7. Fabrics originating in the Republic of Korea shall be regarded 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.

8. For the purpose of Clause 7 of this Article, the originating status of the fabrics shall be determined in accordance with the rules of origin applicable in the framework of the Free Trade Agreement between the European Union and the Republic of Korea, except the rules set out in Annex II(a) to the Protocol on the Rules of Origin attached to that Agreement.

9. For the purpose of Clause 7 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 to the European Union.

10. The cumulation provided for in Clauses 7 to 9 may only be applied if:

a/ The Republic of Korea and the European Union have signed a free trade agreement in accordance with Article XXIV of the GATT 1994.

b/ The Republic of Korea and Vietnam have undertaken and notified to the European Union their undertaking to comply with the cumulation and provide the administrative cooperation necessary to ensure the correct implementation of the EVFTA.

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

12. The cumulation provided for in this Article for materials originating in countries other than Parties to the EVFTA must comply with guidance of the Ministry of Industry and Trade.

Article 10.Insufficient working or processing

1. The following operations shall be considered insufficient working or processing when conducted separately or in combination with one another and shall not be considered when determining the originating status of 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 to p of this Clause.

r/ Slaughter of animals.

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

3. All operations carried out either in Vietnam or the European Union on a given good shall be considered together when determining whether the working or processing undergone by that good 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 a particular product which is regarded as the basic unit when determining classification using the nomenclature of the HS.

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

3. In case packaging is also classified under General Rule 5 of the HS, it shall be included for the purposes of determining origin.

Article 12.Accessories, spare parts and tools

Accessories, spare parts, tools and instructional materials 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 in question.

Article 13.Sets

Sets, as defined in General Rule 3 of the HS, 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

Neutral elements are elements which might be used in the manufacture of goods but shall not be taken into account when determining the origin of the goods. Neutral elements include:

1. Energy and fuel.

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

3. 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 the manufacture 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 goods.

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

Article 15.Accounting segregation

1. If originating and non-originating fungible materials are used in the working or processing of goods, the accounting segregation method may be applied according to current regulations provided that the quantity of originating goods recorded in books is the same as the quantity of originating goods actually kept in stocks.

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

Article 16.Principle of territoriality

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

2. In case originating goods are exported from a Party then re-imported from a non-Party to the EVFTA, the re-imported goods shall be regarded as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities that the re-imported 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 non-Party to the EVFTA or while being exported.

Article 17.Non-alteration

1. The goods declared for importation into a Party shall be regarded as having their initial origin kept unchanged, provided that while being transported or stored, they are not altered, transformed in any way or subjected to operations other than the following operations:

a/ Preserving 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, which are carried out under customs supervision in the country(ies) of transit or the consignment is split before carrying out procedures for importation into the inland.

2. Storage of goods may take place provided they remain under customs supervision in the country(ies) of transit.

3. The splitting of consignments may take place where carried out by the exporter or under the authorization of the exporter, provided that they remain under customs supervision in the country(ies) of splitting.

4. In case of doubt, the importing Party may request the customs 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 competent authority of the country(ies) of transit or splitting, or any other documents demonstrating that the goods remained under customs supervision in the country(ies) 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 identify cases when it is needed to request the importer to provide proofs under Clause 4 of this Article but it cannot routinely require the submission of these proofs.

Article 18.Exhibitions and fairs

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

a/ The exporter has consigned these goods from the territory of the exporting Party to the country in which the exhibition is held and has exhibited them there.

b/ The exporter has sold or transferred these goods to the consignee in the importing Party.

c/ These goods have been consigned to the importing Party during the exhibition or immediately thereafter in the state in which they were sent for exhibition.

d/ These goods 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 made out in accordance with the provisions of Chapter III of this Circular and submitted to the customs authorities of the importing Party according to regulations. The name and address of the exhibition must be indicated thereon. Where necessary, the customs authorities of the importing Party may request presentation of additional documentary evidence of the conditions under which the goods have been exhibited.

3. Clause 1 of this Article shall apply 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 goods, provided that these goods remain under customs supervision.

Chapter III

CERTIFICATION AND INSPECTION OF ORIGIN

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

1. Goods originating in the European Union shall, on importation into Vietnam, benefit from the preferential tariff treatment under the EVFTA upon submission of any of the following proofs of origin:

a/ A C/O made out in accordance with Articles 20 to 23 of this 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 European Union, for any consignment regardless of its value; or by any exporter, for consignments whose total value does not exceed EUR 6,000 (six thousand euros).

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

2. Goods originating in Vietnam shall, on importation into the European Union, benefit from the preferential tariff treatment under the EVFTA upon submission of any of the following proofs of origin:

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

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

c/ An origin declaration made out by an exporter approved or an exporter registered in a database in accordance with regulations of the Ministry of Industry and Trade.

d/ The origin declaration referred to at Point c of this Clause must be conducted in compliance with regulations of the Ministry of Industry and Trade and after Vietnam has notified the European Union thereof.

3. Originating goods shall, in the cases specified in Article 29 of this Circular, benefit from the preferential tariff treatment under the EVFTA without requiring the submission of any of the proofs of origin referred to in this Article.

Article 20.Filling in EUR.1 movement certificates

1. The specimen of EUR.1 movement certificate is provided in Appendix VI to this Circular.

2. Movement certificates must not be erased or overwritten. Modifications shall be made by crossing out false information and adding correct information. The modifications must be accompanied with paraphs of the persons filling in the movement certificates and approved by competent authorities.

3. Movement certificates must not contain space between items and items must be numbered. A horizontal line must be drawn below the last item. Empty space must be crossed through to prevent any subsequent addition.

4. Goods descriptions must comply with trade practices and contain sufficient details to identify goods.

Article 21.Issuance of EUR.1 movement certificates

1. Competent authorities of the exporting party shall check the description of the goods so as to exclude all possibilities of fraudulent additions.

2. The date of issuance of a movement certificate shall be indicated in Box 11 of the certificate.

3. A movement certificate shall be issued as soon as possible but in any case not later than 3 working days after the date of exportation (the declared shipment date).

Article 22.Movement certificates issued retrospectively

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

a/ No movement certificate was issued at the time of exportation because of errors, involuntary omissions or other valid reasons.

b/ It is demonstrated by the exporter to the competent authorities that a movement certificate was issued but was not accepted at importation for technical reasons.

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

2. In order to obtain a movement certificate after the exportation of goods under Clause 1 of this Article, the exporter shall indicate in the application for issuance of a movement certificate the date and place of exportation of the goods and state the reasons.

3. Movement certificate-issuing agencies or organizations may issue a movement certificate retrospectively only after verifying that the information provided in the exporter’s application conforms with that in the corresponding file.

4. Movement certificates issued retrospectively shall be endorsed with the following phrase: “ISSUED RETROSPECTIVELY” in Box 7.

Article 23.Issuance of a duplicate movement certificate

1. In the event of theft, loss or destruction of a movement certificate, the exporter may apply to the competent authority which issued it for a duplicate made out on the basis of the documents in their possession.

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

3. The duplicate, which must bear the date of issue of the original movement certificate, shall take effect as from that date.

Article 24.Provisions on making out an origin declaration for goods from the European Union

1. The exporter may make out an origin declaration if the goods concerned originate in the European Union and fulfill the other requirements of the EVFTA.

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 goods concerned in sufficient details, by typing, stamping or printing on that document the declaration, the text of which appears in Appendix VII to this Circular, using one of the linguistic versions set out in that Appendix and in accordance with the legislation of the European Union. If the declaration is hand-written, the text shall be written in ink in capital letters.

3. The term “other commercial document” referred to in Clause 2 of this Article can be understood as a consignment note,proforma invoice or packing list. Transport documents such as bill of lading or airway bill shall not be regarded as other commercial documents.

4. The origin declaration shall not be made out in a separate form but may be made in another page of a commercial document provided that it is acknowledgeable as an integral part of the commercial document.

5. The origin declaration shall bear the original signature of the exporter in manuscript. However, an approved exporter under the legislation of the European Union shall not be required to sign such declaration provided that the exporter gives the competent authorities of the exporting Party a written undertaking that it/he/she accepts full responsibility for the declaration.

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.Provisions on making out an origin declaration for goods from Vietnam

1. The exporter may make out an origin declaration under Point b, Clause 2, Article 19 of this Circular if the goods concerned originate in Vietnam and fulfill the other requirements of the EVFTA.

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 goods concerned in sufficient details, by typing, stamping or printing on that document the declaration, the text of which appears in Appendix VII to this Circular, using one of the linguistic versions set out in that Appendix and in accordance with the legislation of Vietnam. If the declaration is hand-written, the text shall be written in ink in capital letters.

3. The term “other commercial document” referred to in Clause 2 of this Article can be understood as a consignment note,proforma invoice or packing list. Transport documents such as bill of lading or airway bill shall not be regarded as other commercial documents.

4. The origin declaration shall not be made out in a separate form but may be made in another page of a commercial document provided that it is acknowledgeable as an integral part of the commercial document.

5. The exporter making out an origin declaration under Clause 1 of this Article shall submit documents proving the originating status of the goods concerned as well as the fulfillment of the other requirements 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 prescribed in Clause 1 of this Article shall declare and publish the origin declaration and documents concerning the consignment according to the provisions of Points c to h, Clause 1, Article 15 of Decree No. 31/2018/ND-CP on the Ministry of Industry and Trade’s Vietnam Electronic Certificate of Origin Issuance System atwww.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 must 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 under the EVFTA, when the importer failed to submit those documents by the final date of the period of validity due toforce majeureor other valid reasons beyond the importer’s control.

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

Article 27.Submission of proofs of origin

In order to enjoy preferential tariff treatment under the EVFTA, proofs of origin must be submitted to the customs authorities of the importing Party in accordance with regulations of that Party. 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 goods within the meaning of General Rule 2(a) of the HS falling within Sections XVI and XVII or headings 7308 and 9406 of the HS are imported by installments, a single proof of origin for such goods shall be submitted to the customs authorities upon importation of the first installment.

Article 29.Exemptions from proofs of origin

1. Goods sent as small packages from private persons to private persons or forming part of travellers’ personal luggage shall be admitted as originating goods without requiring the submission of a proof of origin, provided that such goods 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 goods sent by post, this declaration can be made on the importation 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 travellers or their families shall not be considered imports by way of trade if it is evident from the nature and quantity of the products that no commercial purpose is intended.

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

a/ 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 goods forming part of travellers’ personal luggage, when the travellers enter the European Union.

b/ USD 200 (two hundred US dollars), both in the case of small packages and in the case of  goods forming part of travellers’ personal luggage, when the travellers enter Vietnam.

Article 30.Supporting documents

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

1. Direct evidence of the manufacture or processing carried out by the exporter or manufacturer, for example, statements or internal book-keeping.

2. Documents proving the originating status of materials used, issued or made out in a Party according to current regulations.

3. Documents proving the working or processing of materials used, issued or made out in a Party according to 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 documentation and records

1. The exporter making out an origin declaration or the trader applying for 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 C/O-issuing competent authorities of the exporting Party shall keep for at least 3 years the dossier of application for 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. Exporters in a Party shall, in accordance with that Party’s laws and regulations, 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 the proof of origin and those made in the documents submitted to the customs authority for the purpose of carrying out the formalities for importing goods shall notipso factorender the proof of origin null and void if it is duly established that this document corresponds to the goods actually imported.

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 grant of preferential tariff treatment under the EVFTA and customs clearance of the remaining goods listed in the proof of origin.

Article 33.Conversion of currency units

1. In cases where the limit values of the goods referred to at Point b, Clause 1, Article 19 and Point a, Clause 3, Article 29 of this Circular are calculated in a currency other than euro, the equivalent amounts in the national currencies of the Member States of the European Union or of Vietnam shall be fixed annually by each Party.

2. For a consignment which is invoiced in a currency other than euro, the limit values referred to at Point b, Clause 1, Article 19 and Point a, Clause 3, Article 29 of this Circular shall comply with the values fixed by the concerned Party.

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 goods concerned or the fulfillment of the other requirements of the EVFTA.

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 document 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 exporting Party shall notify the competent authorities of the importing Party of the receipt of the request for verification of the proof of origin. The notification can be made in any forms, including also electronic form.

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 account books or any other check considered appropriate.

4. If the competent authorities of the importing Party decide to suspend the grant of preferential tariff treatment under the EVFTA to the consignment concerned while awaiting the results of the verification, the release of goods shall be offered to the importer subject to any precautionary measures deemed necessary. Any suspension of preferential tariff treatment under the EVFTA shall be reinstated as soon as possible after the originating status of the goods 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 goods concerned can be regarded as goods originating in the Parties and fulfill the other requirements of the EVFTA.

6. If in cases of reasonable doubts there is no reply within 10 months of the date of the verification request from the competent authorities of the exporting Party or if the reply does not contain sufficient information to determine the authenticity of the document in question or the real origin of the goods, the verification-requesting competent authorities of the importing Party may, except in exceptional circumstances, refuse entitlement to the preferential tariff treatment. Before entitlement to the preferential tariff treatment is refused, it is necessary to clarify whether or not the competent authorities of the exporting Party receive the verification request.

7. When it takes more than 10 months to conduct the verification and give a reply under Clause 6 of this Article, the competent authorities of the exporting Party or the customs authorities of the exporting country shall notify thereof to the competent authorities of the importing Party.

Chapter IV

SPECIAL CONDITIONS

Article 35.Ceuta and Melilla

1. The term “Party” referred to in this Circular does not cover Ceuta and Melilla.

2. Goods originating in Vietnam, when imported into Ceuta or Melilla, shall enjoy in all respects the same customs treatment as that which is applied to goods originating in the customs territory of the European Union.

3. Goods originating in Ceuta and Melilla, when imported into Vietnam, shall enjoy in all respects the same customs treatment as that which is applied to goods imported from and originating in the European Union.

4. For the purpose of the application of Clauses 2 and 3 of this Article, goods must meet the special conditions set out in Article 36 of this Circular.

Article 36.Special conditions concerning Ceuta and Melilla

1. Provided that they satisfy the requirements of Article 17 of this Circular, the following goods shall be regarded as goods originating in Ceuta and Melilla:

a/ Goods wholly obtained in Ceuta and Melilla.

b/ Goods obtained in Ceuta and Melilla which have undergone sufficient working or processing within the meaning of Article 7 of this Circular.

c/ Goods originating in a Party, provided that they have been submitted to working or processing which goes beyond the operations referred to in Article 10 of this Circular.

2. Provided that they satisfy the requirements of Article 17 of this Circular, the following goods shall be regarded as goods originating in Vietnam:

a/ Goods wholly obtained in Vietnam.

b/ Goods obtained in Vietnam which have undergone sufficient working or processing within the meaning of Article 7 of this Circular.

c/ Goods originating in Ceuta and Melilla or in the European Union, provided that they have been submitted to working or processing which goes beyond the operations referred to in Article 10 of this Circular.

2. Ceuta and Melilla shall be considered a single territory.

3. The exporter or authorized representative of the exporter shall enter “Vietnam” and “Ceuta and Melilla” on the proof of origin.

Article 37.Principality of Andorra

1. Goods originating in the Principality of Andorra falling within Chapters 25 to 97 of the HS shall be accepted by Vietnam as originating in the European Union within the meaning of the EVFTA.

2. Clause 1 of this Article shall apply provided that, the Principality of Andorra applies to goods originating in Vietnam the same preferential tariff treatment as the European Union applies to such goods.

3. The EVFTA shall applymutatis mutandisfor the purpose of defining the originating status of the goods referred to in Clause 1 of this Article.

Article 38.Republic of San Marino

1. Goods originating in the Republic of San Marino shall be accepted by Vietnam as originating in the European Union within the meaning of the EVFTA.

2. Clause 1 of this Article shall apply provided that the Republic of San Marino applies to goods originating in Vietnam the same preferential tariff treatment as the European Union applies to such goods.

3. The EVFTA shall applymutatis mutandisfor the purpose of defining the originating status of the goods referred to in Clause 1 of this Article.

Chapter V

IMPLEMENTATION PROVISIONS

Article 39.Goods in transit or temporary storage

The preferential tariff treatment under the EVFTA may be applied to goods, which comply with this Circular and which, on the date of entry into force of the EVFTA, are either in a Party, 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 to the customs authorities of the importing Party evidence showing that the goods have not been altered in accordance with Article 17 of this Circular.

Article 40.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 41.Organization of implementation

1. The guidance and interpretation of the Rules of Origin adopted by the Parties or agreed upon in meeting reports of the Committee on Customs within the framework of the EVFTA shall serve as a basis for implementation by C/O-issuing agencies and organizations and customs authorities.

2. The contents referred to in Clause 1 of this Article shall be informed to C/O-issuing agencies and organizations and customs authorities via the contact point of the Committee on Customs for implementation of the EVFTA.-

Article 42.Effect

This Circular takes effect on August 1, 2020.

Minister of Industry and Trade
TRAN TUAN ANH

* The appendices to this Circular are not translated.