Circular No. 39/2018/TT-BCT dated October 30, 2018 of the Ministry of Industry and Trade on prescribing the checking and verification of origin of export goods

CIRCULAR

Prescribing the checking and verification of origin of export goods[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;

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

The Minister of Industry and Trade promulgates the Circular prescribing the checking and verification of origin of export goods.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Circular prescribes the checking and verification of origin of export goods before and after the grant of certificates of origin (C/O) and documents certifying origin of goods under regulations of importing countries, and the self-certification of origin of goods by traders under Clause 1, Article 28 of the Government’s Decree No. 31/2018/ND-CP of March 8, 2018, detailing the Law on Foreign Trade Management regarding origin of goods (below referred to as Decree No. 31/2018/ND-CP).

Article 2.Subjects of application

This Circular applies to:

1. Agencies and organizations granting C/O.

2. Agencies and organizations granting written approvals of self-certification of origin of goods.

3. Agencies and organizations receiving registrations of certification codes of origin of goods.

4. Traders, including:

a/ Traders applying for C/O;

b/ Traders participating in the mechanism of self-certification of origin of goods;

c/ Traders issuing documents certifying origin of goods under regulations of importing countries;

d/ Manufacturers and suppliers of export goods or materials for manufacturing export goods.

5. Related agencies, organizations and individuals.

Article 3.Interpretation of terms

1.Domestic agencies and organizations competent to check and verify origin of goods(below collectively referred to as domestic competent agencies and organizations) include the Agency of Foreign Trade of the Ministry of Industry and Trade; agencies and organizations granting C/O; agencies and organizations granting written approvals of self-certification of origin of goods; and agencies and organizations receiving registrations of certification codes of origin of goods.

2.Agencies competent to check and verify origin of goods of importing countries(below referred to as competent agencies of importing countries) include customs offices and other functional agencies of importing countries.

3.Examination of dossiers and documents certifying of origin of goodsmeans the review, comparison and authentication of granted or issued dossiers and documents certifying origin of goods in order to ensure that goods satisfy the rules of origin.

4.Checking and verification of origin of goods at manufacturing establishmentsmeans checking and verification of origin at places of trading, manufacture, culture, farming or catching and other places of traders in order to ensure that goods satisfy the rules of origin.

5.Request for checking and verification of origin of goodsmeans a written request of a competent agency of an importing country or a domestic functional agency for provision of dossiers, documents and information on origin of goods subject to suspicion or for coordination in the checking and verification of origin of goods.

Article 4.Checking and verification of origin of goods

1. The checking and verification of origin of goods must comply with this Circular.

2. In case preferential rules of origin under treaties to which Vietnam is a contracting party or preferential rules of origin under the Generalized Scheme of Preferences and other unilateral preferences given by importing countries to Vietnam prescribe the checking and verification of origin of goods differently from the provisions of this Circular, the checking and verification of origin of goods shall be carried out under such treaties or regulations of importing countries.

Article 5.Methods of checking and verification of origin of goods

The checking and verification of origin of goods shall be carried out by the following methods:

1. Examination of dossiers and documents certifying origin of goods.

2. Checking and verification of origin of goods at manufacturing establishments.

Chapter II

EXAMINATION OF DOSSIERS AND DOCUMENTS CERTIFYING ORIGIN OF GOODS

Article 6.Cases of examination of granted or issued dossiers and documents certifying origin of goods

The examination of dossiers and documents certifying origin of goods shall be carried out in the following cases:

1. A competent agency of an importing country requests the checking of origin of goods.

2. A domestic competent agency or organization carries out inspection, management of risks and combat of frauds related to origin of goods.

3. A domestic functional agency requests coordination when having a reason for suspicion or detecting a sign of fraud related to origin of goods.

Article 7.Contents of the examination of granted or issued dossiers and documents certifying origin of goods

A domestic competent agency or organization shall review dossiers and documents certifying origin of goods archived by a C/O-granting agency or organization or a trader and request the trader to provide relevant documents to verify:

1. Competence of the C/O-granting agency or organization, and order, procedures and dossier for grant of C/O.

2. Competence of the agency or organization issuing written approvals of self-certification of origin of goods, and order, procedures and dossier for issuance of documents on self-certification of origin of goods; competence of the agency or organization receiving registrations of certification codes of origin of goods, and order, procedures and dossier for issuance of documents certifying origin of goods under regulations of importing countries.

3. Completeness and validity of origin declarations and commitments of exporters, manufacturers and suppliers of export goods or materials for manufacturing export goods in accordance with the law on origin of goods.

4. Operation status of traders, including those in operation, suspended from business, transformed, dissolved or falling bankrupt in accordance with law.

5. Information, documents and other relevant documents serving the checking of origin of goods.

Article 8.Procedures for examination of C/O dossiers and granted certificates of non-manipulation (CNM)

1. At the request of a competent agency of an importing country, the examination of a C/O dossier and a granted certificate of non-manipulation shall be carried out as follows:

a/ The Ministry of Industry and Trade shall send to the agency or organization having granted the C/O a written request for examination, enclosed with a request for checking of origin of goods of the competent agency of the importing country;

b/ The agency or organization having granted the C/O shall check the origin of goods and notify in writing checking results to the competent agency of the importing country, and copy and send to the Ministry of Industry and Trade checking results within 2 months after receiving the written request for examination mentioned at Point a, Clause 1 of this Article. In case of necessity to extend such time limit, the agency or organization having granted the C/O shall send to the Ministry of Industry and Trade an explanatory document at least 10 working days before the expiration of such time limit in order to send a written request for extension to the competent agency of the importing country. In the course of examination of the C/O dossier and granted CNM, the agency or organization having granted the C/O shall request the trader to add documents when necessary.

c/ In case preferential rules of origin under a treaty to which Vietnam is a contracting party or preferential rules of origin under the Generalized Scheme of Preferences and other unilateral preferences given by the importing country to Vietnam otherwise prescribe the time limit and extended time limit for notification of results of the checking of origin of goods to the competent agency of the importing country, the agency or organization having granted the C/O shall comply with such treaty or regulations of the importing country;

d/ Within 5 working days after receiving a notice (if any) from the competent agency of the importing country on results of the checking of origin of goods mentioned at Point b, Clause 1 of this Article, the agency or organization having granted the C/O shall send such notice to the Ministry of Industry and Trade and the concerned trader.

2. In case a domestic competent agency or organization carries out the examination, risk management and combat of frauds related to origin of goods, the examination of a C/O dossier and a granted CNM on a random or periodical basis or upon a suspicion about an origin fraud shall be carried out as follows:

a/ The Ministry of Industry and Trade shall send to the agency or organization having granted the C/O a written request for examination;

b/ The agency or organization having granted the C/O shall carry out the examination and notify in writing examination results to the Ministry of Industry and Trade within 20 working days after receiving the written request for examination mentioned at Point a, Clause 2 of this Article. In case of necessity to extend such time limit, the agency or organization having granted the C/O shall send to the Ministry of Industry and Trade an explanatory document at least 5 working days before the expiration of such time limit. In the course of examination of the C/O dossier and granted CNM, the agency or organization having granted the C/O shall request the trader to add documents when necessary.

3. In case it receives a request of the competent agency of the importing country or a domestic functional agency for examination of a C/O dossier and a granted CNM, the agency or organization having granted the C/O shall report such to the Ministry of Industry and Trade for coordinated handling.

Article 9.Procedures for examination of issued documents on self-certification of origin of goods

1. At the request of a competent agency of an importing country, the examination of issued documents on self-certification of origin of goods shall be carried out as follows:

a/ The agency or organization having given the written approval of self-certification of origin of goods shall send to the trader participating in the mechanism of self-certification of origin of goods a written request for examination of such written approval, enclosed with a request for checking of origin of goods of the competent agency of the importing country;

b/ The trader participating in the mechanism of self-certification of origin of goods shall check the origin of goods and notify in writing checking results to the agency or organization having given the written approval of self-certification of origin of goods:

- Within 20 working days after receiving the written request mentioned at Point a, Clause 1 of this Article;

- Within 10 working days after receiving the written request mentioned at Point a, Clause 1 of this Article in case the competent agency of the importing country repeats the request for checking of origin of goods.

c/ In case of necessity to extend the time limit for notification of results of the checking of origin of goods prescribed at Point b, Clause 1 of this Article, the trader participating in the mechanism of self-certification of origin of goods shall send to the agency or organization having given the written approval of self-certification of origin of goods an explanatory document at least 5 working days before the expiration of such time limit. In the course of examination of the issued documents on self-certification of origin of goods, the agency or organization having given the written approval of self-certification of origin of goods shall request the trader to add documents when necessary;

d/ The agency or organization having given the written approval of self-certification of origin of goods shall notify in writing results of the checking of origin of goods mentioned at Point b, Clause 1 of this Article to the competent agency of the importing country within 5 working days after receiving such results.

dd/ In case preferential rules of origin under a treaty to which Vietnam is a contracting party otherwise prescribe the time limit and extended time limit for notification of results of the checking of origin of goods to the competent agency of the importing country, the agency or organization having given the written approval of self-certification of origin of goods shall comply with such treaty.

e/ Within 5 working days after receiving a notice (if any) from the competent agency of the importing country on results of the checking of origin of goods mentioned at Point d, Clause 1 of this Article, the agency or organization having given the written approval of self-certification of origin of goods shall send such notice to the concerned trader participating in the mechanism of self-certification of origin of goods.

2. In case an agency or organization having given the written approval of self-certification of origin of goods carries out the examination, risk management and combat of frauds related to origin of goods, the examination of the issued documents on self-certification of origin of goods on a random or periodical basis or upon a suspicion about an origin fraud shall be carried out as follows:

a/ The agency or organization having given the written approval of self-certification of origin of goods shall send to the trader participating in the mechanism of self-certification of origin of goods a written request for examination;

b/ The trader participating in the mechanism of self-certification of origin of goods shall send to the agency or organization having given the written approval of self-certification of origin of goods written results of the checking of origin of goods within 20 working days after receiving the written request for examination mentioned at Point a, Clause 2 of this Article;

c/ In case of necessity to extend the time limit for responding to the written request for checking of origin of goods, the trader participating in the mechanism of self-certification of origin of goods shall send to the agency or organization having given the written approval of self-certification of origin of goods an explanatory document at least 5 working days before the expiration of such time limit. In the course of examination of the issued documents on self-certification of origin of goods, the agency or organization having given the written approval of self-certification of origin of goods shall request the trader to add documents when necessary;

d/ The agency or organization having given the written approval of self-certification of origin of goods shall report to the Ministry of Industry and Trade on results of the checking of origin of goods after completing the checking.

3. In case it/he/she receives a request of the competent agency of the importing country or a domestic functional agency for examination of issued documents on self-certification of origin of goods, a trader participating in the mechanism of self-certification of origin of goods shall report such to the Ministry of Industry and Trade for coordinated handling.

Article 10.Procedures for examination of documents on certification of origin of goods issued by traders under regulations of importing countries

1. At the request of a competent agency of an importing country, the examination of documents on certification of origin of goods issued by a trader under regulations of the importing country shall be carried out as follows:

a/ The agency or organization receiving the registration of certification code of origin of goods shall comply with Clause 1, Article 9 of this Circular;

b/ In case preferential rules of origin under Generalized Scheme of Preferences and other unilateral preferences given by the importing country to Vietnam otherwise prescribe the time limit and extended time limit for notification of results of the checking of origin of goods to the competent agency of the importing country, the agency or organization receiving the registration of certification code of origin of goods shall comply with regulations of the importing country.

2. In case an agency or organization receiving the registration of certification code of origin of goods carries out the examination, risk management and combat of frauds related to origin of goods, the examination of documents on certification of origin of goods issued by a trader under regulations of an importing country on a random or periodical basis or upon a suspicion about an origin fraud shall be carried out under Clause 2, Article 9 of this Circular.

3. In case it/he/she receives a request of a competent agency of an importing country or a domestic functional agency for examination of documents on certification of origin of goods issued by itself/himself/herself under regulations of the importing country, a trader shall report such to the Ministry of Industry and Trade for coordinated handling.

Chapter III

CHECKING AND VERIFICATION OF ORIGIN OF GOODS AT MANUFACTURING ESTABLISHMENTS

Article 11.Cases of checking and verification of origin of goods at manufacturing establishments

The checking and verification of origin of goods at a manufacturing establishment shall be carried out in the following cases:

1. A competent agency of an importing country shall request the checking and verification at the manufacturing establishment when results of the examination of documents on certification of origin of goods prescribed in Article 8, 9 or 10 of this Circular are not enough to identify the origin of goods or there is a reason for suspicion about the origin of goods.

2. A domestic competent agency or organization shall carry out the checking and verification of origin of goods, risk management and combat of frauds related to origin of goods in the following cases:

a/ Before the grant of a C/O;

b/ Before the giving of a written approval of self-certification of origin of goods or grant of a certification code of origin of goods;

c/ After the issuance of a document on certification of origin of goods.

3. A domestic functional agency shall request coordination in handling when having a reason for suspicion or detecting a sign of fraud related to origin of goods.

Article 12.Contents of checking and verification of origin of goods at manufacturing establishments

A domestic competent agency or organization shall carry out the checking and verification of origin of goods at a manufacturing establishment to collect and verify:

1. Operation status of the trader, whether in operation, suspended from business, transformed, dissolved or falling bankrupt in accordance with law.

2. Existence of the manufacturing establishment and its office in consistency with information in the trader dossier registration.

3. Manufacturing and trading activities, market from which materials are imported, and market to which goods are exported before the time of checking and verification.

4. Manufacturing capacity, state of machinery, storage location, and employees.

5. Information on export goods, materials, manufacturer or supplier of export goods or materials for manufacturing export goods.

6. Archive and production of, and explanation about, granted or issued documents on certification of origin of goods and other relevant documents.

Article 13.Procedures for checking and verification of origin of goods at manufacturing establishments and after grant of C/O

1. At the request of a competent agency of an importing country, the checking and verification of origin of goods at a manufacturing establishment shall be carried out as follows:

a/ The agency or organization having granted the C/O shall issue a decision to set up a working team to check and verify the origin of goods at the manufacturing establishment after reaching agreement with the competent agency of the importing country. Such decision must have such principal contents as composition, tasks and powers of the working team, and trader subject to, and duration of, the checking and verification;

b/ The agency or organization having granted the C/O shall notify in writing or via the trader’s email of the time of checking and verification, and preparations to be made to serve the checking and verification at least 7 working days before the tentative date of checking and verification at the manufacturing establishment;

c/ The working team and competent agency of the importing country shall carry out the checking and verification of origin of goods at the manufacturing establishment at the notified time and make a minutes recording opinions of related parties after completing the checking and verification;

d/ Within 5 working days after receiving a notice (if any) from the competent agency of the importing country on results of the checking and verification of origin of goods at the manufacturing establishment, the agency or organization having granted the C/O shall send it to the Ministry of Industry and Trade and concerned trader.

2. In case a domestic competent agency or organization carries out the checking, verification, risk management and combat of frauds related to origin of goods, the checking and verification of origin of goods at a manufacturing establishment on a random or periodical basis or upon a suspicion about an origin fraud shall be carried out as follows:

a/ The agency or organization having granted the C/O shall issue a decision to set up a working team to check and verify the origin of goods at the manufacturing establishment. Such decision must have such principal contents as composition, tasks and powers of the working team, and trader subject to, and duration of, the checking and verification;

b/ The agency or organization having granted the C/O shall notify in writing or via the trader’s email of the time of checking and verification, and preparations to be made to serve the checking and verification:

- At least 3 working days before the tentative date of checking and verification at the manufacturing establishment, for the case mentioned at Point a, Clause 2, Article 11 of this Circular. The duration of checking and verification at the manufacturing establishment shall not be counted into the time limit for consideration and approval of the dossier of C/O application by the C/O-granting agency or organization;

- At least 7 working days before the tentative date of checking and verification at the manufacturing establishment, for the case mentioned at Point c, Clause 2, Article 11 of this Circular.

c/ The working team shall carry out the checking and verification of origin of goods at the manufacturing establishment at the notified time and make a minutes after completing the checking and verification;

d/ The agency or organization having granted the C/O shall notify in writing or via the trader’s email of results of the checking and verification of origin of goods at the manufacturing establishment:

- Within 3 working days after the checking and verification are completed, for the case mentioned at Point a, Clause 2, Article 11 of this Circular;

- Within 7 working days after the checking and verification are completed, for the case mentioned at Point c, Clause 2, Article 11 of this Circular.

3. In case it receives a request of a competent agency of an importing country or a domestic functional agency for checking and verification of origin of goods at a manufacturing establishment, an agency or organization having granted the C/O shall report such to the Ministry of Industry and Trade for coordinated handling.

Article 14.Procedures for checking and verification of origin of goods at manufacturing establishments before and after the issuance of documents on self-certification of origin of goods

1. At the request of a competent agency of an importing country, the checking and verification of origin of goods at a manufacturing establishment shall be carried out as follows:

a/ The agency or organization having given a written approval of self-certification of origin of goods shall issue a decision to set up a working team to check and verify the origin of goods at the manufacturing establishment after reaching agreement with the competent agency of the importing country. Such decision must have such principal contents as composition, tasks and powers of the working team, and the trader subject to, and duration of, the checking and verification;

b/ The agency or organization having given a written approval of self-certification of origin of goods shall notify in writing or via the trader’s email of the time of checking and verification, and preparations to be made to serve the checking and verification at least 7 working days before the tentative date of checking and verification at the manufacturing establishment;

c/ The working team and competent agency of the importing country shall carry out the checking and verification of origin of goods at the manufacturing establishment at the notified time and make a minutes recording opinions of related parties after completing the checking and verification;

d/ In case preferential rules of origin under a treaty to which Vietnam is a contracting party otherwise prescribe the procedures for checking and verification at manufacturing establishments, the agency or organization having given a written approval of self-certification of origin of goods and trader participating in the mechanism of self-certification of origin of goods shall comply with such treaty;

dd/ Within 5 working days after receiving a notice (if any) from the competent agency of the importing country on results of the checking and verification of origin of goods at the manufacturing establishment, the agency or organization having given a written approval of self-certification of origin of goods shall send it to the Ministry of Industry and Trade and trader participating in the mechanism of self-certification of origin of goods.

2. In case a domestic competent agency or organization carries out the checking, verification, risk management and combat of frauds related to origin of goods, the checking and verification of origin of goods at a manufacturing establishment on a random or periodical basis or upon a suspicion about an origin fraud shall be carried out as follows:

a/ The agency or organization having given a written approval of self-certification of origin of goods shall issue a decision to set up a working team to check and verify the origin of goods at the manufacturing establishment. Such decision must have such principal contents as composition, tasks and powers of the working party, and the trader subject to, and duration of, the checking and verification.

b/ The agency or organization having given a written approval of self-certification of origin of goods shall notify in writing or via the trader’s email of the time of checking and verification, and preparations to be made to serve the checking and verification:

- At least 5 working days before the tentative date of checking and verification at the manufacturing establishment, for the case mentioned at Point b, Clause 2, Article 11 of this Circular;

- At least 7 working days before the tentative date of checking and verification at the manufacturing establishment, for the case mentioned at Point c, Clause 2, Article 11 of this Circular.

c/ The working team shall carry out the checking and verification of origin of goods at the manufacturing establishment at the notified time and make a minutes after completing the checking and verification;.

d/ The agency or organization having given a written approval of self-certification of origin of goods shall notify in writing or via the trader’s email of results of the checking and verification of origin of goods at the manufacturing establishment:

- Within 3 working days after the checking and verification are completed, for the case mentioned at Point b, Clause 2, Article 11 of this Circular;

- Within 7 working days after the checking and verification are completed, for the case mentioned at Point c, Clause 2, Article 11 of this Circular.

3. In case it/he/she receives a request of a competent agency of an importing country or a domestic functional agency for checking and verification of origin of goods at a manufacturing establishment, a trader participating in the mechanism of self-certification or origin of goods shall report such to the Ministry of Industry and Trade for coordinated handling.

Article 15.Procedures for checking and verification of origin of goods at manufacturing establishments for documents on certification of origin of goods issued by traders under regulations of importing countries

1. At the request of a competent agency of an importing country, the checking and verification of origin of goods at a manufacturing establishment for a document on certification of origin of goods issued by a trader under regulations of the importing country shall be carried out as follows:

a/ The agency or organization receiving a registration of certification code of origin of goods shall comply with Clause 1, Article 14 of this Circular;

b/ In case preferential rules of origin under the Generalized Scheme of Preferences and other unilateral preferences given by the importing country to Vietnam otherwise prescribe the procedures for checking and verification at manufacturing establishments for documents on certification of origin of goods issued by traders under regulations of importing countries, the agency or organization receiving the registration of certification code of origin of goods and concerned trader shall comply with regulations of the importing country.

2. In case an agency or organization receiving a registration of certification code of origin of goods carries out the checking, verification, risk management and combat of frauds related to origin of goods, the checking and verification of origin of goods at a manufacturing establishment shall be carried out under Clause 2, Article 14 of this Circular.

3. In case it/he/she receives a request of a competent agency of an importing country or a domestic functional agency for checking and verification of origin of goods at a manufacturing establishment for a document on certification of origin of goods issued by itself/himself/herself under regulations on the importing country, a trader shall report such to the Ministry of Industry and Trade for coordinated handling.

Chapter IV

RESPONSIBILITIES OF RELATED AGENCIES, ORGANIZATIONS AND INDIVIDUALS AND IMPLEMENTATION PROVISIONS

Article 16.Responsibilities of the Agency of Foreign Trade of the Ministry of Industry and Trade

1. To assist the Minister of Industry and Trade in monitoring, urging, inspecting, summing up and reporting on difficulties and problems in the course of implementation of this Circular.

2. To assume the prime responsibility for, and coordinate with competent agencies of importing countries and other domestic functional agencies in, checking and verifying origin of goods.

3. To carry out, or provide guidance to agencies and organizations granting C/O, those giving written approvals of self-certification of origin of goods and those receiving registrations of certification codes of origin of goods and traders in carrying out, the checking and verification of origin of export goods.

4. To notify agencies and organizations granting C/O, those giving written approvals of self-certification of origin of goods and those receiving registrations of certification codes of origin of goods and related parties of goods items highly prone to origin-related frauds.

Article 17.Responsibilities of agencies and organizations granting C/O, those giving written approvals of self-certification of origin of goods and those receiving registrations of certification codes of origin of goods

1. To coordinate with the Ministry of Industry and Trade, other domestic functional agencies and competent agencies of importing countries in checking and verifying origin of export goods.

2. To take responsibility for results of the checking and verification of origin of goods and notify them to competent agencies of importing countries within the prescribed time limit.

3. To quarterly and annually report to the Ministry of Industry and Trade on the checking and verification of origin of goods.

4. To apply, or propose the application of, measures to combat frauds related to origin of goods under Points b and c, Clause 1, and Clauses 2 and 3, Article 29 of Decree No. 31/2018/ND-CP.

5. To archive, keep confidential and provide dossiers, related documents and information to serve the checking and verification of origin of goods under Article 30 of Decree No. 31/2018/ND-CP.

Article 18.Responsibilities of traders

1. To coordinate with domestic competent agencies and organizations and competent agencies of importing countries in checking and verifying origin of export goods.

2. To contact manufacturers and suppliers of export goods or materials with origin for manufacturing export goods to get information to serve the checking and verification of origin of goods, for traders other than manufacturers or suppliers such goods or materials.

3. To explain, provide or add within the prescribed time limit dossiers and related documents and information to serve the checking and verification of origin of goods.

4. To take responsibility before law for the accuracy and truthfulness of explanatory documents, dossiers and related documents and information to serve the checking and verification of origin of goods.

5. To archive, keep confidential and provide dossiers, related documents and information to serve the checking and verification of origin of goods under Article 30 of Decree No. 31/2018/ND-CP.

Article 19.Responsibilities of related agencies, organizations and individuals

Related agencies, organizations and individuals shall coordinate with the Ministry of Industry and Trade in providing information and documents to facilitate the checking and verification of origin of goods.

Article 20.Effect

This Circular takes effect on December 14, 2018.-

Minister of Industry and Trade
TRAN TUAN ANH