Decision No. 3188/2005/QD-BTM dated December 30, 2005 of the Ministry of Trade promulgating amendments and supplements to the Regulation on issuance of Vietnam’s certificate of goods origin - Form D to enjoy preferences under the Agreement on Common Effective Rreferential Tariff (CEPT) scheme for the establishment of the ASEAN free-trade area (AFTA)

DECISION

PROMULGATING AMENDMENTS AND SUPPLEMENTS TO THE REGULATION ON ISSUANCE OF VIETNAMS CERTIFICATE OF GOODS ORIGIN - FORM D TO ENJOY PREFERENCES UNDER THE AGREEMENT ON COMMON EFFECTIVE PREFERENTIAL TARIFF (CEPT) SCHEME FOR THE ESTABLISHMENT OF THE ASEAN FREE-TRADE AREA (AFTA)

THE MINISTER OF TRADE

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

At the proposal of the director of the Import and Export Department,

DECIDES:

Article 1.- To supplement Appendix 8 to the Trade Ministers Decision No. 1420/2004/QD-BTM of October 4, 2004, promulgating the Regulation on issuance of Vietnams certificate of goods origin form D to enjoy preferences under the Agreement on Common Effective Preferential Tariff (CEPT) Scheme for the establishment of the ASEAN Free-Trade Area (AFTA) on the rules of origin applicable to wood and aluminum commodity items.

Article 2.- This Decision takes effect 15 days after its publication in CONG BAO.

Article 3.- The director of the Office, the director of the Organization and Personnel Department, the director of the Import and Export Department, and heads of concerned agencies under the Trade Ministry shall have to implement and guide the implementation of this Decision.

SUPPLEMENT TO APPENDIX 8

(Promulgated together with the Trade Ministers Decision No.3188/2005/QD-BTM of December 30, 2005)

RULES OF ORIGIN FOR THE CEPT AGREEMENT APPLICABLE TO WOOD AND ALUMINUM COMMODITY ITEMS SUBSTANTIAL TRANSFORMATION CRITERION

A. GENERAL REGULATIONS:

Rule 1: A country of origin is where the last stage of substantial transformation is carried out to create a new product. Raw materials and auxiliary materials which have undergone the substantial transformation in a country shall be considered product of that country.

Rule 2: For a product, of which the manufacturing process takes place in two or more countries, its country of origin shall be where the substantial transformation or the processing for creation of a new product occurs.

Rule 3: A product shall be considered having been substantially transformed if it has been changed through the manufacturing or processing process for creation of a new commercial product.

Rule 4: A new commercial product shall be considered having undergone the manufacture or processing if changes have been made to:

(i) Its commercial nature or design

(ii) Its substantial characteristics

(iii) Its commercial utilities 

B. FOR WOOD PRODUCTS:

1. Wood products governed by this regulation mean those under the following HS codes:

(i) HS codes in Chapter 44

(ii) HS codes from 94.01 to 94.03 and 94.06

2. When wood products are decided to have been substantially transformed or not, the following conditions must be complied with:

2.1. Substantial changes made to raw materials in the manufacturing or processing process shall adhere to the principle of change of subheadings in the Tariff (6-digit HS codes).

2.2. Products shall be considered having not originated from ASEAN member states if they have undergone one of the following stages:

2.2.1: Being planed, cut into pieces, polished or dressed with accessories, such as decoration fabric; or

2.2.2. Coated and/or painted with chemicals or natural substances.

C. For aluminum products, the following substantial transformation criteria must be satisfied:

Chapter 76

ALUMINUM AND ARTICLES THEREOF

D. CERTIFICATE OF ORIGIN:

Procedures for issuing certificate of origin, form D used for the CEPT/AFTA origin regulation are provided for in Appendix 2 to the Trade Ministers Decision No. 1420/2004/QD-BTM of October 4, 2004.

Certificate of origin

Rule 5: Certificates of origin issued by competent authorities of countries of exportation which are ASEAN member states must be truthful and certify the ASEAN origin of the aforesaid products.

Rule 6: When two or more countries are involved in the manufacturing process to create the aforesaid products, the country where the last stage of substantial transformation or processing takes place shall issue certificates of origin.

Rule 7: Certificates of origin must be produced at customs authorities of countries of importation together with other relevant documents.

Rule 8: When a dispute arises over the truthfulness of ASEAN origin, it shall be settled according to the ASEANs dispute settlement mechanism (DSM). In this case, customs offices shall clear goods suspected of origin truthfulness after the importer supplies to the customs a written certification of the country of exportation.