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THE MINISTRY OF
INDUSTRY AND TRADE OF VIETNAM
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THE SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom – Happiness
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No. 04/2024/TT-BCT
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Hanoi, March 27,
2024
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CIRCULAR
AMENDMENTS TO
CIRCULAR NO. 20/2014/TT-BCT DATED JUNE 25, 2014 OF MINISTER OF INDUSTRY AND
TRADE OF VIETNAM PRESCRIBING RULES OF ORIGIN IN ASEAN - KOREA FREE TRADE
AGREEMENT
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 of
Vietnam;
Pursuant to the Government’s Decree No.
31/2018/ND-CP dated March 08, 2018 providing guidelines for implementation of
the Law on Foreign Trade Management regarding origin of goods;
For the purposes of the Third Protocol to amend
the Agreement on Trade in Goods under the Framework Agreement on Comprehensive
Economic Cooperation between ASEAN and Korea, signed on November 22, 2015 at
Kuala Lumpur, Malaysia, under the framework of the 27th ASEAN
Summit, ratified by the Government under the Resolution No. 150/NQ-CP dated
September 22, 2023;
At the request of the Director of the Agency of
Foreign Trade;
The Minister of Industry and Trade of Vietnam
promulgates a Circular providing amendments to Circular No. 20/2014/TT-BCT
dated June 25, 2014 of Minister of Industry and Trade of Vietnam prescribing
rules of origin in the ASEAN - Korea Free Trade Agreement.
Article 1. Amendments to appendices enclosed
with Circular No. 20/2014/TT-BCT dated June 25, 2014 of Minister of Industry
and Trade of Vietnam prescribing rules of origin in ASEAN - Korea Free Trade
Agreement
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“Article 4. Not Wholly Obtained or
Produced Goods
1. For the purposes of Point b Clause 1 Article 2,
a good, except those covered under Article 5 as provided for in this Appendix,
shall be deemed to be originating if the regional value content (hereinafter
referred to as the “RVC”) is not less than 40% of the FOB value or if a good
has undergone a change in tariff classification at 4 (four) digit-level (change
of tariff heading) of the Harmonized System.
2. RVC shall be calculated adopting one of the
following two formulas:
a) Direct formula:
RVC =
VOM
x 100%
FOB
Where:
“VOM” means value of originating materials, which includes the value of
originating materials, direct labour cost, direct overhead cost, transportation
cost and profit.
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b) Indirect formula:
RVC =
FOB - VNM
x 100%
FOB
Where:
“VNM” means value of non-originating materials or materials of undetermined
origin, which shall be:
b1) the CIF value at the time of importation of the
materials, parts or goods; or
b2) the earliest ascertained price paid for the
materials, parts or goods of undetermined origin in the territory of the Party
where the working or processing has taken place.
3. An exporter or producer of the exporting Party
shall be given the flexibility to adopt the method of calculating the RVC,
whether it is the direct or indirect method as prescribed in clause 2 of this
Article. The exporter or producer shall continue to use the selected method of
calculating the RVC throughout the same fiscal year. Any verification of the
RVC by the importing Party shall be done on the basis of the method of
calculating the RVC used by the exporter or producer.”.
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“1. A C/O shall be:
a) in a printed format which is manually or
electronically signed, stamped and issued directly by the C/O issuing
authorities of the exporting Party;
b) on A4 size paper;
c) in the attached Form in Appendix VI-A enclosed
with the Circular No. 20/2014/TT-BCT, which is called as C/O Form AK;
d) in the English language.”.
Article 2. Change of name of “ASEAN - Korea Free
Trade Agreement” in Circular No. 20/2014/TT-BCT
The “ASEAN - Korea Free Trade Agreement” is renamed
as “Agreement on Trade in Goods under the Framework Agreement on Comprehensive
Economic Cooperation between ASEAN and Korea”.
Article 3. Implementation
This Circular comes into force from May 11, 2024./.
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PP. MINISTER
DEPUTY MINISTER
Nguyen Sinh Nhat Tan