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MINISTRY OF
INDUSTRY AND TRADE OF VIETNAM
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SOCIALIST
REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
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No. 03/VBHN-BCT
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Hanoi, February
02, 2024
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CIRCULAR
ORIGIN OF GOODS
Circular No. 05/2018/TT-BCT dated April 03, 2018 of
the Minister of Industry and Trade on origin of goods, which comes into force
from April 03, 2018 is amended by:
Circular No. 44/2023/TT-BCT dated December 29, 2023
of the Minister of Industry and Trade on amendments to some Articles of the
Circular No. 05/2018/TT-BCT dated April 03, 2018 of the Minister of Industry
and Trade on origin of goods, which comes into force from February 15, 2024.
Pursuant to Government’s Decree No.
98/2017/ND-CP dated August 18, 2017 on functions, tasks, powers and
organizational structure of the Ministry of Industry and Trade;
Pursuant to Government’s Decree No.
31/2018/ND-CP dated March 08, 2018 on elaboration of the Law on Foreign Trade
Management in terms of origin of goods;
At the request of the Director of Import and
Export Department,
The Minister of Industry and Trade promulgates a
Circular on origin of goods1.
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GENERAL PROVISIONS
Article 1. Scope
This Circular sets forth origin of goods and
declaration of origin of exported goods and imported goods.
Article 2. Regulated entities
This Circular applies to traders, authorities
issuing C/O; and other entities related to origin of goods.
Article 3. Definition of terms
In this Circular, the terms below are construed as
follows:
1. C/O
is an abbreviated name of “Certificate of Origin”.
2. CNM
is an abbreviated name of “Certificate of Non-manipulation”.
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4. Product
Specific Rules are requirements based on change in tariff classification,
specified manufacturing or processing operations, prescribed thresholds of
percentages of value addition, or combination of any of these.
5. CIF
means the value of the good imported and includes the cost of freight and
insurance up to the port or place of entry into the country of importation. The
valuation shall be made in accordance with Article VII of GATT 1994 and the
Agreement on Customs Valuation.
6. FOB
means free-on-board value of the good, inclusive of the cost of transport to
the port or site of final shipment abroad. The valuation shall be made in accordance
with Article VII of GATT 1994 and the Agreement on Customs Valuation.
Chapter II
IDENTIFICATION OF ORIGIN OF GOODS
Article 4. General rules for identifying origin
of goods
An originating good, for the purposes of this
Circular, is a good which is originating in a country, group of countries, or
territory where the last processing operation is performed and substantially
transforms such good.
Article 5. Preferential rules of origin
1. The
identification of origin of imports or exports for enjoyment of tariff or
non-tariff preferences shall comply with treaties to which Vietnam has signed
or acceded and relevant legal documents issued by the Ministry of Industry and
Trade on guidelines for the implementation of these treaties.
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Article 6. Non-preferential rules of origin
1. An exported or imported good shall be treated as
which is as wholly produced or obtained in a country, group of countries, or
territory if it complies with Article 7 Government's Decree No. 31/2018/ ND-CP
dated March 8, 2015 on guidelines for the Law on Foreign Trade Management in
terms of origin of goods (hereinafter referred to as “Decree No.
31/2018/ND-CP”).
2. An exported or imported good shall be treated as
which is not wholly obtained or produced in a country, group of countries, or
territory if it satisfies the criteria prescribed in the Appendix I of Product
Specific Rules issued together with this Circular2 on guidelines for Article 8 of Decree No.
31/2018/ND-CP. Criteria for non-preferential goods in Appendix I:
a) “Change in tariff classification”
(hereinafter referred to as CTC): means a change in two-digit, four-digit, or
six-digit HS heading of a good as compared with the HS heading of
non-originating materials (including imported materials and materials of
undetermined origin) used for the production of such good.
b) "Local value content” (hereinafter
referred to as LVC): is calculated according to the formula prescribed in
Clause 3 of this Article.
3. LVC shall be calculated according to one of the
two formulas:
a) Direct formula:
LVC =
Value of materials
originating in a country, group of countries, or territory of production
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FOB
or
b) Indirect formula:
LVC =
FOB -
Value of materials
not originating in a country, group of countries, or territory of production
x 100%
FOB
The applicant for C/O shall choose either direct formula
or indirect formula at their own discretion to calculate LVC and apply the
chosen formula throughout such financial year. The verification and
identification of LVC criteria for exported goods of Vietnam shall be based on
the aforesaid formula.
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a) “Value of materials originating in a country,
group of countries, or territory of production” is inclusive of CIF value
of materials acquired or locally produced that are originating in a country,
group of countries, or territory; direct labor cost, overhead cost, other costs
and profits.
b) “Value of materials not originating in a
country, group of countries, or territory of production” is CIF value of
materials imported that are originating in a country, group of countries, or
territory; or the earliest ascertained price stated in the VAT invoices
associated with materials of unidentifiable origin used for the production,
processing of ultimate product.
c) “FOB” is the value stated in the export
contract which is calculated as follows: “FOB = Ex-workshop price + other
costs”.
- “Ex-workshop price” = Production cost +
profit;
- “Production cost” = material cost + direct
labor cost + overhead cost;
- “Material cost” covers expenses associated
with purchase of materials, their cost of freight and insurance;
- “Direct labor cost” covers wages, bonuses
and other welfare amounts related to the production process;
- “Overhead cost" covers: Overhead cost
relates to production process (insurance for buildings, factory rents and
hire-purchase cost, depreciation of buildings, repairs, taxes, collateral
interests); hire-purchase cost and interests of factories and equipment;
factory security; insurance (for factories and equipment used in the production
process); expenses for essentials for production process (energy, electricity
and other essentials to be used directly in the production process); research,
development, design and workmanship; pressing molds, moulds, devices and
amortization, maintenance and repairs of factories and equipment; patent
royalties (in respect of patented machines or use of patented machines in production
process or goods production licenses); testing of materials and goods; storage
in factories; waste treatment; cost factors in calculating value of materials,
such as port-related cost, good clearance and import duties on taxable
components;
- "Other costs” are the costs incurred
in placing the good in the ship or other means of transport for export
including, but not limited to, domestic transport costs, storage and
warehousing, port handling, brokerage fees, service charges and relevant costs
incurred when loading goods onboard ships for export.
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Article 7. Declaration of origin of goods
1. An applicant for C/O shall use one of the
followings to declare that the exported good satisfies the preferential rules
of origin or non-preferential rules of origin as prescribed in Point e Clause 1
Article 15 of Decree No. 31/2018/ND-CP:
a) A declaration of wholly-obtained exported goods
(WO) using the prescribed form in Appendix II issued herewith3 if the materials thereof are acquired locally to
produce those imported goods without VAT invoices;
b) A declaration of wholly-obtained exported goods
(WO) using the prescribed form in Appendix III issued herewith if the materials
thereof are acquired locally to produce those imported goods with VAT invoices;
c) A declaration of wholly-obtained exported goods
in the ASEAN-Korea free trade area using the prescribed form in Appendix IV
issued herewith if the goods satisfy “WO-AK” criteria in accordance with the
Agreement on Trade in Goods within the Framework Agreement on Comprehensive
Economic Cooperation between ASEAN and Korea;
d) A
declaration of exported goods satisfying CTC criteria using the prescribed form
in Appendix V issued herewith;
dd) A
declaration of exported goods satisfying De Minimis criteria using the
prescribed form in Appendix VI issued herewith;
e) A
declaration of exported goods satisfying LVC criteria using the prescribed form
in Appendix VII issued herewith;
g) A
declaration of exported goods satisfying RVC criteria using the prescribed form
in Appendix VIII issued herewith;
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2. If
the applicant for C/O is not the producer, it must request the producer to make
a declaration using one of the forms prescribed in Clause 1 hereof and provide
proof of origin to complete the application for C/O as prescribed in Point e
Clause 1 Article 15 of Decree No. 31/2018/ND-CP.
3. If
the originating goods or materials are locally produced and used in the
subsequent stages to produce another good, the applicant for C/O shall request
the producer or supplier to make a declaration using one of the forms
prescribed in Appendix X issued herewith and give it to the applicant for C/O
to complete the application for C/O as prescribed in Point g Clause 1 Article
15 of Decree No. 31/2018/ND-CP.
4. The
electronic form of declarations as provided in Clauses 1, 2 and 3 of this
Article shall be posted on the electronic C/O management system of the Ministry
of Industry and Trade at www.ecosys.gov.vn or another website of the issuing
authority designated by the Ministry of Industry and Trade.
Chapter III
DECLARATION OF C/O, C/O CONTINUATION SHEET AND CNM
Article 8. C/O declaration
1. C/O
form B of Vietnam issued to exported goods as prescribed in Appendix XI issued
herewith shall be made in the English language and print form. C/O form B
of Vietnam details:
a) Box
1: exporter’s name, address, exporting country
b) Box
2: consignee’s name, address, importing country
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d) Box
3: date of departure, mean of transport (if sent by an aircraft then check “by
air”, flight number, airport of discharge; if sent by seaway then check the
vessel’s name and port of discharge)
dd) Box
4: the designated issuing authority, address, country
e) Box
5: intended only for customs authority at the port or place of entry
g) Box
6: description of goods and HS codes; marks and numbers on packages
h) Box
7: gross weight of goods or other quantity
i) Box
8: number and date of issue of commercial invoice
k) Box
9: C/O place of issue, date of issue, signature and seal of issuing authority
l) Box
10: C/O application place and date and signature of exporter (intended for
applicant for C/O).
2. If
preferential rules of origin in an international treaty to which Vietnam is
signatory, preferential rules of origin under general tariff preferences and
other unilateral preferences of importing country conferred on Vietnam have
particular regulations on preferential C/O forms, the C/O declaration shall be
done in accordance with regulations on the Ministry of Industry and Trade on
guidelines for such treaty or law and regulations on importing country.
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1. In case there is insufficient space on the C/O
form B of Vietnam for many goods, a continuation sheet prescribed in Appendix
XII issued herewith may be used. The C/O form B Continuation Sheet shall be
made in the English language and print form. The contents of the C/O
Continuation Sheet shall contain reference number as same as that of C/O and
details from Point g to Point l Clause 1 Article 8 of this Circular. 4
2. If
preferential rules of origin in an international treaty to which Vietnam is
signatory, preferential rules of origin under general tariff preferences and
other unilateral preferences of importing country conferred on Vietnam have
particular regulations on C/O continuation sheet forms or guidance on
declaration of multiple goods on the same C/O, the C/O continuation sheet
declaration shall be done in accordance with regulations on the Ministry of
Industry and Trade on guidelines for such treaty or law and regulations on importing
country.
Article
10. CNM declaration
CNM
issued by issuing authority as prescribed in Appendix XIII issued herewith
shall be made in the English language and print form. CNM details:
1. Box
1: trader’s name, address, country
2. Box
2: consignee’s name, address, importing country
3. Box
3: country of origin
4. Box
4: country of destination
5. Box
5: date of entry to Vietnam, mean of transport’s name and number
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7. Box
7: description of goods and HS codes as stated in the original of C/O issued by
the first exporting country (if any); marks and number of packages
8. Box
8: gross weight of goods or other quantity
9. Box
9: number and date of issue of commercial invoice
10. Box
10: CNM application place and date and signature of exporter (intended for
applicant for CNM).
11. Box
11: CNM place of issue, date of issue, signature and seal of issuing authority.
Chapter
IV
IMPLEMENTATION
Article
11. Implementation
1. This
Circular is published and put up at:
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b)
Electronic C/O management system of the Ministry of Industry and Trade
www.ecosys.gov.vn;
c) Head
offices of issuing authorities.
2.
Issuing authorities shall provide specific guidelines for this Circular for
applicants for C/O.
3.
Difficulties that arise during the implementation of this Circular should be
reported to Department of Export and Import affiliated to the Ministry of
Industry and Trade for consideration.
Article
12. Entry in force5
This
Circular comes into force from April 3, 2018./.
CERTIFIED BY
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1
Circular No. 44/2023/TT-BCT on amendments to some Articles of the Circular No.
05/2018/TT-BCT dated April 03, 2018 of the Minister of Industry and Trade on
origin of goods is promulgated pursuant to:
“Government’s Decree No. 96/2022/ND-CP dated
November 29, 2022 on functions, tasks, powers and organizational structure of
the Ministry of Industry and Trade of Vietnam;
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;
At the request of Director of Import and Export Department;”
2 This Appendix is replaced according to Clause 1
Article 1 of Circular No. 44/2023/TT-BCT on amendments to some Articles of the
Circular No. 05/2018/TT-BCT dated April 03, 2018 of the Minister of Industry
and Trade on origin of goods, which comes into force from February 15, 2024.
3
This Appendix is replaced according to Clause 2 Article 1 of Circular No.
44/2023/TT-BCT on amendments to some Articles of the Circular No.
05/2018/TT-BCT dated April 03, 2018 of the Minister of Industry and Trade on
origin of goods, which comes into force from February 15, 2024
4The
phrase “điểm g đến điểm l khoản 1 Điều 7 Thông tư này” (point g through point l
Clause 1 Article 7 of this Circular) is replaced by the phrase “điểm g đến điểm
l khoản 1 Điều 8 Thông tư này” (point g through point l Clause 1 Article 8 of
this Circular) according to Clause 3 Article 1 of Circular No. 44/2023/TT-BCT
on amendments to some Articles of the Circular No. 05/2018/TT-BCT dated April
03, 2018 of the Minister of Industry and Trade on origin of goods, which comes
into force from February 15, 2024
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“Article 2. Transitional clause
1. This Circular comes into force from February
15, 2024
2. If any legislative documents referred to in
this Circular are amended or superseded, the new ones shall apply.