Circular 42/2018/TT-BCT amendments Circular 31/2015/TT-BCT application of rules of origin

• Official number: 42/2018/TT-BCT
• Legislation Type: Circular
• Organization: The Ministry Of Industry And Trade
• Signer: Tran Tuan Anh
• Issued Date: 12/11/2018

MINISTRY OF INDUSTRY AND TRADE --------	SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom – Happiness --------------
No.: 42/2018/TT-BCT	Hanoi, November 12, 2018

CIRCULAR

AMENDMENTS TO THE CIRCULAR NO. 31/2015/TT-BCT DATED SEPTEMBER 24, 2015 BY THE MINISTRY OF INDUSTRY AND TRADE ON APPLICATION OF RULES OF ORIGIN IN THE AGREEMENT ESTABLISHING THE ASEAN – AUSTRALIA – NEW ZEALAND FREE TRADE AREA

Pursuant to the Government’s Decree No. 98/2017/ND-CP dated 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 dated March 08, 2018 on guidelines for the Law on foreign trade management in terms of origin of goods;

Pursuant to the Agreement establishing the ASEAN – Australia – New Zealand Free Trade Area signed on February 27, 2009 at the 14^th Summit held in Thailand between member states of the Association of Southeast Asian Nations, and Australia and New Zealand;

Pursuant to the First Protocol on amendments to the Agreement establishing the ASEAN-Australia-New Zealand Free Trade Area signed on August 26, 2014 at the 46^th Meeting of the ASEAN Economic Ministers held in Myanmar;

Pursuant to the Report on the 10^th Meeting of the ASEAN-Australia-New Zealand Free Trade Agreement Joint Committee held on April 04-08, 2018 in Da Nang on approval for amendments to the Annex 2 – Product Specific Rules of Chapter 3 – Rules of Origin within the framework of the Agreement establishing the ASEAN-Australia-New Zealand Free Trade Area;

At the request of the Director of the Import-Export Department;

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Article 1. Amendments to the Circular No. 31/2015/TT-BCT

1. Article 2 of the Circular No. 31/2015/TT-BCT is amended and supplemented as follows:

“Procedures on the issuance and verification of C/O Form AANZ of Vietnam shall be carried out in accordance with regulations laid down in:

1. Annex III enclosed herewith;

2. The Government’s Decree No. 31/2018/ND-CP dated March 08, 2018 on guidelines for the Law on foreign trade management in terms of origin of goods and the Circular No. 05/2018/TT-BCT dated April 03, 2018 by the Ministry of Industry and Trade on origin of goods.”

2. Annex II - Product Specific Rules is amended and supplemented as follows:

Annex II - Product Specific Rules enclosed with the Circular No. 31/2015/TT-BCT is abrogated and superseded by the Annex enclosed herewith.

Article 2. Effect

This Circular comes into force from January 01, 2019./.

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MINISTER




Tran Tuan Anh

ANNEX

PRODUCT SPECIFIC RULES
(Enclosed with the Circular No. 42/2018/TT-BCT dated November 12, 2018 on amendments to the Circular No. 31/2015/TT-BCT)

Headnote to the Annex

For the purpose of this Annex:

1. Product Specific Rules (PSR) Schedule is compiled based on the Harmonized System (HS 2017). In the PSR Schedule, the first column denotes chapters, headings or subheadings of goods, the second column denotes product description and the third column stipulates applicable product-specific rules.

a) Chapter means the first two digits of the tariff classification number under the HS Code;

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c) Sub-heading means the first six digits of the tariff classification number under the HS Code.

2. Where a tariff heading or sub-heading is subject to alternative Product Specific Rules, it shall be sufficient to comply with one of the rules.

3. Where the Product Specific Rule requires only regional value content, the final process of production must be performed within a Party.

4. A requirement of a change in tariff classification applies only to non-originating materials.

5. Where the change in tariff classification rule expressly excludes a change from other tariff classifications, the exclusion applies only to non-originating materials.

6. For the purpose of column 3 of the PSR Schedule within the scope of this Annex:

a) WO means that the good must be wholly produced or obtained in a Party as provided in Point a Clause 1 Article 2 of Annex I enclosed with the Circular No. 31/2015/TT-BCT.

b) RVC (XX) means that the good must have a regional value content of not less than XX percent (%) as calculated under Article 5 of Annex I enclosed with the Circular No. 31/2015/TT-BCT.

c) CC means that all non-originating materials used in the production of the good have undergone a change in tariff classification at the 2-digit level (i.e. a change in chapter).

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dd) CTSH means that all non-originating materials used in the production of the good have undergone a change in tariff classification at the 6-digit level (i.e. a change in subheading).

7. Chapter notes within this Annex apply to all headings or subheadings within the indicated chapter unless there is a specific exclusion.