Circular 37/2022/TT-BCT rules of origin within the framework of AJCEP

CIRCULAR

Providing the rules of origin within the framework of the ASEAN-Japan Comprehensive Economic Partnership

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Pursuant to the Government’s Decree No. 96/2022/ND-CP dated November 29, 2022, 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 furtherance of the ASEAN-Japan Comprehensive Economic Partnership alternatively signed between ASEAN Member States and Japan, which was concluded between Vietnam and Japan on April 1, 2008 in Hanoi;

In furtherance of the first Protocol to amend the ASEAN-Japan Comprehensive Economic Partnership, which took effect on August 1, 2020 (for Vietnam);

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

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

Chapter I
GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular provides the Rules of Origin within the framework of the ASEAN-Japan Comprehensive Economic Partnership (hereinafter referred to as the AJCEP).

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 engaged in activities concerning origin of imports and exports.

Article 3. Interpretation of terms

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

1. Exporter means an individual or a legal person located in the exporting Party where a good is exported from by such person.

2. A Party's factory ship or a Party's vessel means a ship that is:

a) Registered with that Party.

b) Entitled to fly the flag of that Party.

c) At least 50% owned by a citizen of a Party or several Parties, or owned by a legal person headquartered in a Party, in which representatives, chair of the board (COB) and most of members of that Board of Directors are citizens of a Party or several Parties, and at least 50% of dividends are owned by a citizen or legal person of one or several Parties.

d) At least 65% of captain, officers and sailors on board ship are citizens of one or several Parties.

3. Generally accepted accounting principles means those principles recognized by consensus or applied 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 and procedures for implementation.

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

5. Identical and interchangeable materials mean materials being of the same kind and quality, possessing the same technical and physical characteristics, and which cannot be distinguished from one another for origin purposes by virtue of any markings, once they are incorporated into the finished good.

6. Importer means an individual or a legal person that imports goods into the importing Party.

7. Material means any matter or substance used or consumed in the production of a good or physically incorporated into another good or subjected to a process in the production of another good.

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

9. Packing material and container for shipment means a good used to protect a product during its transportation, other than the packaging materials or containers in which a good is packaged for retail sale.

10. Eligibility for preferential tariff treatment means the application of preferential tariff treatment to originating goods of the exporting Party.

11. Production means methods of obtaining goods, including growing, mining, harvesting, raising, breeding, extracting, collecting, gathering, capturing, fishing, trapping, hunting, producing, processing or assembling goods.

12. Competent state agency means an agency in charge of grant C/Os, or designating other agencies or organizations to grant C/Os as prescribed by law and regulations of each Party. Agencies and organizations issuing C/Os below are referred to as C/O-issuing authorities.

13. Relevant authority means a competent agency of the importing Party, other than customs offices of that Party, that is in charge of inspecting and conduct physical inspection at production premises in the importing Party.

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: C/O form AJ of ASEAN.

c) Appendix III: C/O form AJ of Japan.

d) Appendix IV: Required information on C/O.

dd) Appendix V: Information technology products.

2. The list of agencies and organizations granting Vietnam's C/Os (form AJ) 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 issuing Vietnam’s C/Os (form AJ) 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 8, 2018, on 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

RULES OF ORIGIN

Article 5. Originating goods

A good is considered originating good of a Party if it is:

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

2. Meeting the conditions specified in Article 7 of this Clause, in case of using non-originating materials.

3. Being produced entirely in the territory of that Party exclusively from originating materials from one or more than one Party.

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 a Party:

1. Plants and plant products grown, harvested, picked or gathered in that Party. Plants include fruits, flowers, vegetables, trees, seaweed, fungi and live plants.

2. Live animals born and raised in that Party. Live animals as prescribed in this Clause and Clause 3 of this Article include mammals, birds, fish, crustaceans, mollusks, reptiles, bacteria and viruses.

3. Products obtained from live animals in that Party.

4. Products obtained by hunting, trapping, fishing, gathering or capturing in that Party.

5. Minerals and other naturally occurring substance, not included in Clauses 1 thru 4 of this Article, extracted or taken from soil, water, seabed or beneath the seabed in that Party.

6. Products taken from the waters, seabed or beneath the seabed outside the territorial waters of that Party, provided that that Party has the right to exploit such waters, seabed and beneath the seabed in accordance with the law, that Party's regulations and international law. Nothing in this Agreement shall affect the rights and obligations of any Party, even under the United Nations Convention on the Law of the Sea.

7. Products of sea-fishing and other marine products taken by vessels of that Party from outside the waters of any Party.

8. Products processed and/or made on board factory ships of that Party, exclusively from the products specified in Clause 7 of this Article.

9. Articles collected in that Party which can no longer perform their original purpose nor are capable of being restored or repaired and are fit only for the disposal or recovery of parts of raw materials, or for recycling purposes.

10. Waste and scrap derived from production or processing, including exploitation, agricultural production, manufacturing, refinement, burn and processing waste, or resulting from consumption in that Party and are fit only for the disposal or recovery of raw materials.

11. Goods obtained or manufactured in that Party, exclusively from the products specified from Clauses 1 thru 10 of this Article.

Article 7. Not wholly obtained goods

1. In pursuance to Clause 2 Article 5 of this Circular, a goods is deemed to be originating in a Party if it:

a) Has a regional value content (RVC) of not less than 40% calculated using the formula prescribed in Article 8 of this Circular and the final process of production is performed within that Party.

a) All non-originating materials used in the production of the product have undergone in that Party a change of tariff classification (CTC) at 4-digit level (i.e. a change in tariff heading) of Harmonized System.

Exporters of each Party are allowed to decide whether to use the origin criteria specified at Point a or b Clause 1 of this Article in determining the origin of goods.

2. Goods that are on the List of Product specific rules prescribed in Appendix I to this Circular shall not apply Clause 1 of this Article. A good shall be treated as originating if it meets the specific rules prescribed in Appendix I to this Circular. In case this List prescribes the selection to apply one of requirements such as RVC, CTC, process of production or processing of a good or the combination of these criteria, the exporter of a Party may choose an appropriate requirement to determine the of origin of goods.

3. In case of applying the RVC requirement under Point a Clause 1 of this Article and Appendix I to this Circular, RVC shall be calculated according to the formula specified in Article 8 of this Circular, and not be less than the specific percentage (%) of the RVC requirement applicable to such good.

4. Origin criteria specified at Point b Clause 1 of this Article and CTC requirement or the requirement for process of production or processing of a specific good provided in Appendix I to this Circular apply only to non-originating materials.

Article 8. Regional value content

1. The formula for calculating the RVC shall be:

Where:

a) FOB, except for the provisions of Clause 2 of this Article, means the free-on-board value of the good, inclusive of the costs of transport from the manufacturer to the port or site of final shipment abroad.

b) RVC means the regional value content of a good, expressed as a percentage.

c) VNM means the value of non-originating materials used in the production of goods.

2. In pursuance to Point a Clause 1 of this Article, FOB is the value determined by one of the following methods:

a) Calculated by the first ascertainable price paid for a good from the buyer to the manufacturer of the good, if there is FOB value of the good, but it is unknown and cannot be ascertained.

b) Determined in accordance with Articles 1 thru 8 of the Agreement of Customs Valuation, if there is no FOB value of a good.

3. For the purposes of Clause 1 of this Article, the value of non-originating materials used in the production of a good in a Party shall be determined according to one of the following cases:

a) Determined in accordance with the Agreement of Customs Valuation and included costs for packing and all other costs incurred in transporting the material to the importation port in the Party where the good is produced.

b) If the material value is unknown and cannot be ascertained, this value shall be the first ascertainable price paid for the material in that Party, but may exclude all the costs incurred in that Party in transporting the material from the provider’s warehouse to the production place, such as freight, insurance, packing as well as any other known and ascertainable cost incurred in that Party.

4. For the purposes of Clause 1 of this Article, the VNM of a good shall not include the value of non-originating materials used in the production of originating materials of that Party which are used in the production of the good.

5. For the purposes of Point b Clause 2 of this Article or Point a Clause 3 of this Article, in applying the Agreement of Customs Valuation to determine the value of a good or a non-originating material, the Agreement of Customs Valuation shall apply, mutatis mutandis, to domestic transactions or to the cases where there is no domestic transaction of the good or non-originating material.

Article 9. De Minimis

1. A good that does not satisfy the requirements of Point b Clause 1 Article 7 of an applicable CTC requirement specified in Appendix I to this Circular shall be considered as an originating good of a Party if it meets all of the other requirements of this Circular and subject to one of the following cases:

a) For a good classified in Chapters 16, 19, 20, 22, 23, 64 thru 97 of the Harmonized System, the total value of all non-originating materials used in the production of the good that have not undergone the required CTC does not exceed 10% of the FOB value of such good.

b) For a good classified in Chapters 18 and 21 of the Harmonized System, the total value of all non-originating materials used in the production of the good that have not undergone the required CTC does not exceed 10% or 75 of the FOB value of such good, as prescribed in Appendix I to this Circular.

c) For a good classified in Chapters 50 thru 63 of the Harmonized System, the weight of all non-originating materials used in the production of the good that have not undergone the required CTC does not exceed 10% of the 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 RVC requirement, as prescribed in Clause 1 Article 8 of this Circular.

Article 10. Accumulation

Originating materials of a Party used in the production of a good in another Party shall be considered as originating materials of that Party where the production or processing of the good has taken placed.

Article 11. Minimal operations and processes

A good shall not be considered to satisfy the CTC requirement or specific processing operation merely by reason of:

1. Operations to ensure the preservation of products in good condition during transport and storage (such as drying, freezing, keeping in brine) and other similar operations.

2. Changes of packaging and breaking up, and assembly of packages.

3. Disassembly.

4. Placing in bottles, cases, boxes and other simple packing operations.

5. Collection of parts and components classified as a good pursuant to Rule 2(a) of the General Rules for the Interpretation of the Harmonized System.

6. Mere making-up of sets of articles.

7. Any combination of operations specified in Clauses 1 thru 6 of this Article.

Article 12. Direct consignment

1. Preferential tariff treatment shall be applied goods satisfying the requirements of this Circular and which are consigned directly between the exporting Party and the importing Party.

2. The following shall be considered consigned directly from the exporting Party to the importing Party:

a) Goods transported directly from the exporting Party to the importing Party; or

b) Goods transported through one or more than one Party other than the exporting Party and the importing Party, or through a non-Party, provided that such goods do not undergo operations other than transit or temporary storage in warehouses, unloading, reloading, and any other operation to preserve them in good condition.

Article 13. Packaging materials and containers

1. Packaging materials and containers for transportation and shipment of a good shall not be taken into account in determining the origin of any good.

2. Packaging materials and containers in which a good is packaged for retail sale, when classified together with the good, shall not be taken into account in determining the origin of the good according to the CTC requirement.

3. In case of determining the good origin under RVC requirement, the value of materials and containers in which the good is packaged for retail sale shall be taken into account as originating or non-originating materials, as the case may be, in calculating the RVC of the good.

Article 14. Accessories, spare parts, tools and instructional or other information materials

1. If the good is subject to the requirement of CTC or specific processing operation, the origin of accessories, spare parts, tools and instructional or other information materials presented with the good shall not be taken into account in determining the origin of the good, provided that:

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

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

2. If a good is subject to the RVC requirement, the value of the accessories, spare parts, tools and instructional or information materials shall be regarded as the value of the originating or non-originating materials, as the case may be, in calculating the RVC of the good.

Article 15. Indirect materials

1. Indirect materials shall be treated as originating materials regardless of where they are produced.

2. “Indirect materials” mean goods used in the production, testing or inspection of a good but not physically incorporated into the 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 molds.

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, safety equipment and supplies.

e) Equipment, devices and machinery used to inspect or test the good.

g) Catalysts and solvents.

h) Any other good that is not incorporated into the good but the use of which in the production of the good can reasonably be demonstrated to be a part of that production.

Article 16. Identical and interchangeable materials

The determination of whether identical and interchangeable materials are originating materials shall be made by the use of generally accepted accounting principles on stock control or inventory management practices applicable in the exporting Party.

Chapter III

CERTIFICATION AND EXAMINATION OF ORIGIN OF GOODS

Article 17. Application for C/Os

1. An application for a C/O must be submitted by the exporter or a person authorized by the exporter to the C/O-issuing authority of the exporting Party under Clause 1 Article 19 of this Circular, together with documents proving the originating status of the goods, for C/O issuance in accordance with the law of the exporting Party.

2. In case the good has been undergone the pre-exportation examination and verification of origin, the result of such inspection and verification, which is subject to review periodically or whenever appropriate, shall be considered as the supporting evidence in determining the origin of the good thereafter. The pre-exportation examination and verification may not apply to the good of which, by its nature, origin can be easily determined.

Article 18. C/Os

1. A C/O shall be issued on A4 size, in conformity to the forms as shown in Appendices II and III to this Circular.

2. A C/O of ASEAN member states shall comprise one original and two copies; A C/O of Japan shall comprise only one original.

3. Each C/O shall bear a reference number separately given by each C/O-issuing authority.

4. In case there is an invoiced of the third party, such invoice must be indicated on the C/O, together with other information such as the invoice-issuing person’s name and address.

5. The exporter shall make commitments to the declarations on C/O at box 11, for C/Os of ASEAN member states, and box 1o, for C/Os of Japan, with a handwritten or digital signature.

6. The signature on a C/O of an officer competent to issue C/Os of a C/O-issuing authority of an exporting Party may be a a handwritten or digital one.

7. The original C/O shall be forwarded by the exporter to the importer for submission to the customs office of the importing Party. For ASEAN member states, C/O-issuing authorities and exporters shall retain C/O copies.

8. Customs offices of the importing Party may accept one C/O showing two or more invoices issued for the same shipment.

9. Multiple goods declared on the same C/O shall be allowed, provided that each good is originating one.

10. In case multiple goods are declared on the same C/O, a problem encountered with one or several items shall not affect or delay the grant of preferential tariff treatment and customs clearance procedures of the remaining items listed on such C/O. Provisions of Clause 5 Article 30 of this Circular may be applied to the items with problem in terms of origin.

Article 19. Issuance of C/Os

1. A C/O shall be issued by a C/O-issuing authority of the exporting Party at the request in writing of the exporter or a person authorized by the exporter.

2. Each Party must notify the List including name, address, signature and seal samples of the C/O-issuing authority to all other Parties.

3. A C/O bearing a signature other than those registered in the List referred to in Clause 2 of this Article shall be regarded valid.

4. In case the exporter is not the manufacturer located in the exporting Party, it may request for the issuance of a C/O by one of the following methods:

a) The exporter's declarations submitted to the C/O-issuing authority based on the information provided for such exporter by the manufacturer.

b) Declarations voluntarily and directly provided to the C/O-issuing authority by the manufacturer at the exporter's request.

5. A C/O shall only be issued after the exporter or the manufacturer in the exporting Party specified at Point b Clause 4 of this Article proves to the C/O-issuing authority that the exported good is the originating good of the exporting Party.

6. After obtaining a C/O, if the exporter or the manufacturer referred to in Clause 5 of this Article detects that the good is not the originating good of the exporting Party, it shall immediately notify in writing to the C/O-issuing authority in accordance with the law of the exporting Party.

7. Upon receiving the notification mentioned in Clause 6 of this Article, or when detecting that the good for which the C/O is issued is not the originating good of the exporting Party, the C/O-issuing authority must destroy that C/O and immediately notify such destruction to the exporter that has been issued the C/O, as well as the customs office of the importing Party, except for the cases where the exporter has returned the C/O to the competent state authority of the exporting Party.

8. The C/O form AJ and information shown on the C/O shall be completed in the English language, including the principal information specified in Appendix IV. to this Circular.

Article 20. Modifications

1. The customs office of the importing Party shall tolerate minor errors such as inconsistencies and minor omissions, typographical errors or out-of-box information, provided that these minor errors do not affect the the authenticity of the C/O or the accuracy of the information written on the C/O.

2. Neither erasures nor superimpositions shall be allowed on the C/O. Any alteration shall be made by one of the following forms:

a) Striking out the erroneous materials and making any addition required. Such alterations must be approved by a person competent to sign in the C/O and certified by the C/O-issuing authority. The unused space must be crossed out to prevent any subsequent addition.

b) Issuing a new C/O to replace the erroneous one.

Article 21. Loss, mislaying or destruction of C/Os

For a C/O that is mislaid, lost or damaged before its validity duration expires, the exporter or a person authorized by the exporter may request the C/O-issuing authority:

1. To grant a new C/O with the new reference number based on the export documents kept at the C/O-issuing authority of the exporting Party. In such case, the previous C/O shall be invalid. The date of issuance and reference number of the previous one must be shown in box 12 of the new one, for C/Os of ASEAN member states, and box 9 of the new one, for C/Os of Japan. The new one shall has the same validity duration as that of the previous one.

2. To issue a certified copy of the original C/O on the basis of the export documents of the exporter or the person authorized by the exporter, where possible, in which, the phrase “CERTIFIED TRUE COPY” must be clearly stated in box 12 of the certified copy of C/O of ASEAN member states. The copy shall have the issuing date of the original C/O and has the same validity duration as that of the original C/O. The certified copy of a C/O shall be issued no longer than one year from the date of issuance of the original.

Article 22. Waiver of C/Os

1. Pursuant to Clause 2 Article 27 of this Circular, the requirement of a C/O shall be waived in the case the customs value of the good does not exceed:

a) Two hundred thousand Yen (¥ 200,000), calculated by customs value, for Japan.

b) Two hundred US dollar (USD 200), calculated by customs value, for ASEAN member states.

2. Pursuant to Clause 2 Article 27 of this Circular, in case a Party changes the value specified in Clause 1 of this Article or has any change to any value, it must notify to other Parties about such changes, through the ASEAN Secretary Board.

Article 23. C/Os issued retrospectively

A C/O shall be issued before the time of delivery of a good or no later than three (3) days from the delivery date. In exceptional cases, if a C/O is not issued before the time of good delivery or no later than three (3) days from the delivery date, the C/O shall, as required by the exporter, be issued retrospectively within twelve (12) months after the delivery date in accordance with the law of the exporting Party, and the mark “V” shall be put on “Issued Retrospectively” box. In such case, if the importer wishes to benefit from preferential tariff treatment under the law of the importing Party, it must provide the customs office of the importing Party the issued-retrospectively C/O as mentioned above. The delivery date must be clearly stated on box 3 of the issued-retrospectively C/O.

Article 24. Documents in case of accumulation

Pursuant to Article 10 of this Circular, in case where documents proving the issuance of C/Os, or serving the inspection and verification to prove that materials used in origin accumulation in the processing operation of a good are originating materials of a Party, are required, one of the following documents is accepted:

1. Declarations of the exporter or manufacturer.

2. Commercial invoices.

3. A copy of the C/O already issued to the material provided by the Party exporting the material, including a copy of the issued-retrospectively C/O.

4. Any relevant document.

Article 25. Back-to-back C/Os for export of a part of the shipment

Pursuant to Clause 4 Article 27 of this Circular, in case of re-export a part of the shipment, the export value and the number of the part of the shipment shall be shown on the back-to-back C/O. The Party issuing back-to-back C/Os must ensure the total export of a part of the shipment not exceeding the total number of goods on the initial C/O.

Article 26. Recording HS codes on C/Os

HS codes must be recorded on the C/O at 6-digit level. Descriptions on the C/O must be basically as same as those recorded on the commercial invoice, and those on the tax tariff, if any.

Article 27. C/O submission

1. For the purpose of claiming preferential tariff treatment, an exporter must submit the following documents to the customs office of the importing Party:

a) A valid C/O.

b) Other necessary documents as prescribed by the law of the importing Party (such as commercial invoices, including those issued by the third party, and through bills of lading issued in the exporting Party).

2. An importer is not required to submit C/Os for the imported shipments originating from the exporting Party with the customs value of not exceeding two hundred US dollar (USD 200), or equivalent, calculated by the currency of the exporting Party, or a higher value as prescribed by the importing Party.

3. In case a good originating from the exporting Party is imported through one or more than one Party other than the exporting Party and the importing Party, or is imported through countries other than the member states, the importing Party may request the importer wishing to claim preferential tariff treatment applicable to the above-mentioned good to submit one of the following documents:

a) A copy of the through bill of lading.

b) Certification or other information provided by the customs office or relevant authorities of one or more than one Parties, or of countries other than member states, to prove that such good is not undergone any other operations other than unloading or reloading the good on board, and any other operation to preserve the good in good condition in such Parties or countries.

4. Except for the provisions of Clause 5 Article 19 of this Circular, originating goods that have been granted with a C/O by a C/O-issuing authority of the exporting Party (hereinafter referred to as the initial C/O), then are exported from the importing Party to another Party, the C/O-issuing authority of the importing Party may issue a back-to-back C/O and it shall be considered as a new C/O for such originating goods, if the exporter located in the importing Party or the authorized agent requests the issuance of a back-to-back C/O and return the initial C/O that still remains valid.

5. Once a back-to-back C/O is issued under Clause 4 of this Article, the good originating from the exporting Party as prescribed in this Circular shall be considered originating in the Party where the initial C/O is issued.

Article 28. Validity of C/Os

1. A C/O must be submitted to the customs office of the importing Party within one (01) year from the date on which it is issued by the C/O-issuing authority of the exporting Party.

2. In case a C/O is submitted to the customs office of the importing Party after the expiration of the validity duration specified in Clause 1 of this Article, it may be accepted if the late submission is resulted from force majeure events or other reasons beyond the control of the exporter or importer.

3. One C/O shall apply to only one importation of goods originating from the exporting Party to the importing Party.

Article 29. Preservation of records

1. The exported granted with a C/O, or the manufacturer located in the exporting Party specified at Point b Clause 4 Article 19 of this Circular must keep records relating to the origin of goods for three (03) years from the date of issuing the C/O.

2. The C/O-issuing authority shall retain the applications for C/O for three (03) years from the date of issuance. Such applications must comprise all submitted documents to prove the goods originating from the exporting Party.

Article 30. Inspection and verification of origin

1. For the purpose of verification of the origin of imports, the customs office or relevant competent authority of the importing Party may request the competent state authority of the exporting Party to provide information on origin of the goods on the basis of data recorded on that C/O.

2. In pursuant to Clause 1 of this Article and the law of the exporting Party, the competent state authority of the exporting Party must provide the required information within three (03) months after receiving the request for inspection and verification. In case of necessity, the customs office or relevant competent authority of the importing Party may request the additional provision of information about the good origin. In such case, the competent state authority of the exporting Party shall, based on the law of the exporting Party, provide additional information within three (03) months after receiving such request.

3. Pursuant to Clause 2 of this Article, the competent state authority of the exporting Party may request the exporter that has been granted with a C/O, or the manufacturer of the exporting Party prescribed at Point b Clause 4 Article 19 of this Circular to provide the required information to the competent state authority of the exporting Party.

4. The request for information provision specified in Clause 1 of this Article shall not prevent the request for physical inspection at production premises specified in Article 31 of this Circular.

5. During the process of inspection and verification under this Article and Article 31 of this Circular, the customs office of the importing Party may temporarily suspend the grant of preferential tariff treatment while awaiting the inspection and verification result, but the exporter's goods are still cleared, unless such goods are subject to appropriate administrative measures.

Article 31. Physical inspection at production premises of the exporting Party

1. The customs office or relevant competent authority of the importing Party may request the exporting Party to:

a) Collect and provide information relating to the origin of the good and examine equipment used in the production of the good through the physical inspection at production premises of the exporter already granted with a C/O or of the manufacturer located in the exporting Party specified at Point b Clause 4 Article 19 of this Circular, that is carried out by the competent state authority of the exporting Party and customs office or relevant competent authority of the importing Party.

b) Provide information relating to the origin of the good currently under the management of the competent state authority of the exporting Party or an authorized organization while conducting the physical inspection at production premise in accordance with Point a of this Clause.

2. When requesting the exporting Party to conduct an inspection under Clause 1 of this Article, the customs office or relevant competent authority of the importing Party shall send a written notice to the exporting Party at least sixty (60) days prior to the expected inspection date. The receipt of the notice must be confirmed by the exporting Party. The competent state authority of the exporting Party must request the exporter or the manufacturer of which the factory is inspected to send an approval letter.

3. Such a notice specified in Clause 2 of this Article must include the following information:

a) Information of the customs office or relevant competent authority that has issued such notice.

b) Name of the exporter or the manufacturer in the exporting Party of which the factory is inspected.

c) Date and premise expected to be inspected.

d) Subject and scope of inspection, including specific information relating to the good to be inspected that is recorded in the C/O.

dd) Name and titles of officers of the customs office or relevant competent authority of the importing Party that participate in the inspection team.

4. The exporting Party shall issue a written reply to accept or refuse to conduct the inspection at request. as prescribed in Clause 1 of this Article, to the importing Party within thirty (30) days after receiving the notice specified in Clause 2 of this Article.

5. The competent state authority of the exporting Party shall, based on its law, provide any additionally collected information as prescribed in Clause 1 of this Article to the customs office or relevant competent authority of the importing Party within forty-five (45) days, or within a period of time as agreed by both parties, from the last date of the inspection.

Article 32. Determination of good origin and preferential tariff treatment

1. The customs office of the importing Party may deny preferential tariff treatment to an imported good if it does not qualify as an originating good of the exporting Party or if the importer fails to comply with the provisions specified in this Circular.

2. When carrying out the inspection and verification specified in Article 30 or 31 of this Circular, the Customs office of the importing Party may determine that a good does not qualify as an originating good of the exporting Party and may deny preferential tariff treatment in one of the following cases:

a) The competent state authority of the exporting Party fails to respond to the request for inspection and verification within the period referred to in Clause 2 Article 30 or Clause 5 Article 31 of this Circular.

b) The exporting Party refuses to conduct a physical inspection at production premises as required by the customs office or relevant competent authority of the importing Party, or the exporting Party fails to respond to the notice referred to in Clause 2 Article 31 of this Circular within the period referred to in Clause 4 Article 31 of this Circular.

c) The information provided to the customs office or relevant competent authority of the importing Party under Article 30 or 31 is not sufficient to prove that the good qualifies as an originating good of the exporting Party.

3. In case where the inspection and verification are carried out under Article 30 or 31 of this Circular, the customs office of the importing Party shall make a written determination of whether or not the good qualifies as an originating good of the exporting Party, including findings of fact and the legal basis for the determination, and send it to the competent state authority of the exporting Party. This determination shall be provided no later than thirty (30) days after receiving the information lastly provided by the competent state authority of the exporting Party in accordance with Article 30 of this Circular, or no later than sixty (60) days after the last day of the inspection and verification at the production premise under Article 31 of this Circular, unless otherwise agreed by the exporting Party and importing Party.

4. The competent state authority of the exporting Party shall notify the decision of the customs office of the importing Party specified in Clause 3 of this Article to the exporter or the manufacturer of the exporting Party of which the factory is inspected under Article 1 of this Circular. In case of determining that the good qualifies as an originating good, it shall be given preferential tariff treatment.

Article 33. Confidentiality

1. In case a Party provides information to another Party under this Circular, and determines that information is classified as confidential, the Party receiving such information shall keep the information confidential and protect the it from being disclosed to avoid damage to the competitive position of those providing information, and use the information only for the purposes specified by the disclosing Party, and not disclose the information without obtain the written consent of the Party that disclosed the information.

2. Information collected by the customs office or relevant competent authority of the importing Party in accordance with this Circular shall:

a) Be used only for the purpose of checking C/Os under this Circular.

b) Not be used in any criminal procedure carried out by a court or judge by the importing Party without the written consent of the exporting Party that has disclosed the information.

Chapter IV 
IMPLEMENTATION PROVISIONS

Article 34. Transitional provisions on applying converted product specific rules

1. Where the converted product specific rules have not yet taken effect, the C/Os issued based on the Product Specific Rules HS 2002 version shall be accepted by the customs office of the importing Party.

2. In case a C/O is issued based on the Product Specific Rules HS 2002 version before the effective date of the converted product specific rules and is issued to the customs office of the importing Party under Clause 1 Article 28 of this Circular at the effective date of the converted product specific rules, it will be accepted by the customs office of the importing Party.

3. For the shipment exported before the effective date of the converted product specific rules, the C/O issued after the effective date of the converted product specific rules specified in Article 23 of this Circular shall be issued based on the Product Specific Rules HS 2017 version.

4. In case of issuing the back-to-back C/O under Clause 4 Article 27 of this Circular, the C/O-issuing authority of the importing Party shall issue the back-to-back C/O according to the converted HS code based on the HS code of the initial C/O, depending on the effective status of the converted product specific rules of the exporting Party or other Parties.

Article 35. Implementation organization

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 AJCEP shall serve as grounds for implementation by C/O-issuing authorities and customs offices.

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

Article 36. Implementation provisions

1. This Circular takes effect on March 1, 2023.

2. This Circular repeals Decision No. 44/2008/QD-BTM dated December 8, 2008, of the Minister of Trade (Minister of Industry and Trade), on the promulgation of the Regulation on issuance of Certificates of origin form AJ for the benefit of incentives under the ASEAN-Japan Comprehensive Economic Partnership.

3. In case any legal document referred to in this Circular is amended, supplemented or replaced, the newest one shall prevail./.

* All Appendices are not translated herein.