As of June 15th, 2020, the Ministry of Industry and Trade issued Circular No. 11/2020/TT-BTC on rules of origin in EU-Vietnam Free Trade Agreement (EVFTA). It comes into effect on August 01st, 2020. It includes 5 chapters, 42 Articles and 8 Annex. This Circular applies to the issuing authorities of certificate of origin (C/O); Traders; Agencies, organizations, and individuals related to the origin of exported goods and imported goods. This is an important Circular that goods which exported to EU are issued proofs of origin and enjoy the preferential tax when EVFTA takes effect from August 1st, 2020.
1. Type of proofs of origin for goods which are imported into Vietnam, and vice versa
Products originate from EU, when they imported into Vietnam, they shall ve benefited from EVFTA upon submission of any of the following proofs of origin:
- A certificate of origin (C/O) form EUR.1.
- An origin declaration made out by an approved exporter within requirements of the Union for any consignment regardless of its value; any exporter for consignments the total value of which does not exceed 6.000 EUR (six thousand euros).
- A statement of origin made out by exporters registered in an electronic database in accordance with the relevant legislation of the Union after the Union has notified to Viet Nam that such legislation applies to its exporters.
Products originate from Vietnam, when they imported into EU, they shall ve benefited from EVFTA upon submission of any of the following proofs of origin:
- A certificate of origin form EUR.1.
- An origin declaration made out by any exporter for consignments the total value of which shall not exceed 6.000 EUR (six thousand euros).
- An origin declaration made out by an exporter approved or registered in accordance with the relevant legislation of the Ministry of Industry and Trade.
2. Procedures of issuance of the certificate of origin (C/O) following Vietnam Law
- Application for issuance of C/O
- An application form for issuance of C/O;
- Certificate of C/O which is declared according to EUR.1 form;
- A printed export customs declaration. If exported goods are exempt from customs declaration as prescribed by law, copy of customs declaration shall not be required;
- A copy of the commercial invoice (stamped as a true copy of the original by trader);
- A copy of bill of lading or copy of equivalent transport document (stamped as a true copy of the original by trader) in a case where the trader has no bill of lading;
- A detailed list of exported goods qualifying preferential rules of origin or non-preferential rules of origin using the form prescribed by the Ministry of Industry and Trade;
- A declaration of origin provided by manufacturer or supplier of originating material or locally produced originating good using the form prescribed by the Ministry of Industry and Trade if such material is used in subsequent stage to produce another good;
- A copy of good manufacturing process (stamped as a true copy of the original by trader);
- In exceptional circumstances, the issuing authority shall undertake an inspection visit to the manufacturing facility of trader; or require the applicant to submit copies of the following documents (stamped as a true copy of the original by trader): A customs declaration of materials imported and used in production of exported goods (if imported materials are used in the production process); a sale contract or VAT invoice of locally purchased materials (if locally purchased materials are used in the production process); export license (if any); other documents as deemed necessary.
- The Ministry of Industry and Trade;
- The Vietnam Chamber of Commerce and Industry and other organizations are authorized to issue C/O of exported goods by the Ministry of Industry and Trade.
- Declaration and issuance of C/O
- An applicant for issuance of C/O shall fill in the electronic application form available in the electronic C/O issuance system at the address www.ecosys.gov.vnor another website of the issuing authority designated by the Ministry of Industry and Trade.
- If the applicant attaches an application for issuance of C/O to the electronic C/O issuance system at the address www.ecosys.gov.vn or another website of the issuing authority designated by the Ministry of Industry and Trade, the issuance of C/O shall follow the steps below:
- The applicant attaches electronic documents of the application for issuance of C/O. These documents shall be certified by the digital signature issued by the competent authority. It is not necessary to submit hard copies of these documents to the issuing authority;
- Within 6 working hours since an adequate and valid electronic application is submitted, the issuing authority shall inform the processing result in the system;
- Within 2 working hours since an application for issuance of C/O and a hardcopy of C/O which has been filled completely and validly is received, the issuing authority shall give a hardcopy of processing result to the applicant.
- If the applicant submits the application for issuance of C/O in person at the head office of issuing authority, the issuance of C/O shall follow the steps below:
- The applicant submits hard copies of documents of the application for issuance of C/O;
- Within 8 working hours from an adequate and valid application, the issuing authority shall inform the application processing result.
- If the applicant submits the application for issuance of C/O by post, the processing time limit is 24 working hours since the issuing authority receives the adequate and valid application according to the date stamped on the envelope.
- C/O issued retrospectively
- A C/O is issued after exportation of the products in specific situations:
- It was not issued at the time of exportation because of errors, involuntary omissions or other valid reasons.
- The exporter demonstrates to competent authorities that C/O was issued but it was not accepted at the time of exportation because of technical reasons.
- The final destination of the productions was not determined at the time of exportation, it may only be determined during their transportation, storage or after splitting of consignments.
- In order to be issued after the date of exportation of the products, the exporter shall indicate in his application the place and the date of exportation of the products to which the C/O relates, stating the reasons for his request.
- Certificates of origin shall be endorsed with the following phrase in English: “ISSUED RETROSPECTIVELY".
- In the case of theft, loss or destruction of a C/O, the exporter submits a request for issuance of a duplicate made out on the basis of the export documents to the competent authorities.
- The duplicate issued in this way must be endorsed with the following phrase in English: "DUPLICATE".
- The duplicate must indicate the date of issuance of original C/O, taking effect as from that date.
3. Making out an origin declaration for products
- The exporter is entitled to self-certification of the origin of goods when they have the root of EU or Vietnam and meet the other requirements of EVFTA.
- The self-certified exporter must indicate the origin of goods on the invoice, the delivery note or any other commercial documents (an accompanying delivery note, a pro-forma invoice or a packing list) which describe sufficient information of concerned products to identified, ty typing, stamping or printing in the content of the written declaration of the goods’ origin.
- The self-certified document may be issued after exportation provided that it is presented in the importing Party no later than 2 years or after goods into the territory of importing party in the specified period accordance with legislation of Member State.
4. The validity of the proof of origin
- The proofs of origin shall be valid 12 months from the date of issuance in the exporting Party and shall be submitted to customs authorities of the exporting Party within this period.
- After the valid period, if the exporter can not submit the proof of origin to customs authorities of importing Party in the valid period due to force majeure or other valid reasons beyond exporter’s control, the proofs of origin shall still be accepted for purpose of applying preferential tariff treatment of EVFTA.
- In other cases of belated presentation, the customs of the importing Party may accept proofs of origin of products that have exported within the period of validity.
5. Submission of proof of origin
For the purpose of claiming preferential tariff treatment of EVFTA, proofs of origin shall be submitted to the customs authorities of the importing Party in accordance with regulations of this Party. Those authorities may request a translation if proofs of origin are not issued in English.
6. Preservation of proof of origin and supporting documents
- The exporter making out an origin declaration or applying the issuance of a C/O shall keep at least 3 years a copy of this origin declaration or of the C/O as well as of other documents.
- Authorities, organizations of the exporting Party issuing C/O shall keep at least 3 years the application form.
- Customs authorities of the importing Party shall keep at least 3 years the proof of origin submitted to them.
- Each Party shall permit, in accordance with that Party's laws and regulations, the exporter archive documentation or records under any form or medium, provided that the documentation or records can be retrieved and printed.
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