ASEMCONNECT VIETNAM

  List of Vietnam Law

Circular No. 03/2019/TT-BCT dated January 22, 2019 of the Ministry of Industry and Trade on rules of origin in comprehensive and progressive agreement for trans-pacific partnership

Date: 1/22/2019


THE MINISTRY OF INDUSTRY AND TRADE 
-------
THE SOCIALIST REPUBLIC OF VIETNAM 
Independence - Freedom - Happiness 
---------------
No. 03/2019/TT-BCT
Hanoi, January 22, 2019
 
CIRCULAR
ON RULES OF ORIGIN IN COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANS-PACIFIC PARTNERSHIP
Pursuant to the 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 the Government's Decree No. 31/2018/ND-CP dated March 8, 2018 on guidelines for the Law on Foreign Trade Management regarding origin of goods;
Implementing Comprehensive and Progressive Agreement for Trans-Pacific Partnership dated March 8, 2018 in Chile;
At the request of the Director of Department of Export and Import,
The Minister of Industry and Trade promulgates a Circular on rules of origin in Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
Chapter I
GENERAL PROVISIONS
Article 1. Scope
This Circular sets forth rules of origin in Comprehensive and Progressive Agreement for Trans-Pacific Partnership (hereinafter referred to as Agreement).
Article 2. Regulated entities
This Circular applies to:
1. Issuing Authority of Certificate of Origin (C/O).
2. Traders.
3. Agencies, organizations, and individuals relating to origin of goods exported and imported under this Agreement.
Article 3. Interpretation of terms
For the purpose of this Circular, the following term has the meaning attributed as follows:
1. “aquaculture” means the farming of aquatic organisms, including fish, molluscs, crustaceans, other aquatic invertebrates or aquatic plants from seed stock such as eggs, fry, fingerlings or larvae, by intervention in the rearing or growth processes to enhance production such as regular stocking, feeding or protection from predators.
2. “fungible goods or materials" means goods or materials that are interchangeable for commercial purposes and whose properties are essentially identical.
3. “Generally Accepted Accounting Principles” means those principles recognized by consensus or with substantial authoritative support in the territory of a Party with respect to the recording of revenues, expenses, costs, assets and liabilities; the disclosure of information; and the preparation of financial statements. These principles may encompass broad guidelines for general application, as well as detailed standards, practices and procedures.
4. “good” means any merchandise, product, article or material.
5. “indirect material” means a material used in the production, testing or inspection of a good but not physically incorporated into the good; or a material used in the maintenance of buildings or the operation of equipment, associated with the production of a good, including:
a) fuel, energy, catalysts and solvents;
b) equipment, devices and supplies used to test or inspect the good;
c) gloves, glasses, footwear, clothing, safety equipment and supplies;
d) tools, dies and moulds;
dd) spare parts and materials used in the maintenance of equipment and buildings;
e) lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings;
g) any other material that is not incorporated into the good but the use of which in the production of the good can reasonably be demonstrated to be a part of that production.
6. “material” means a good that is used in the production of another good.
7. “non-originating good or non-originating material" means a good or material that does not qualify as originating in accordance with this Circular.
8. “originating good or originating material” mean a good or material that qualifies as originating in accordance with this Circular.
9. “packing materials and containers for shipment” means goods used to protect another good during its transportation, but does not include the packaging materials or containers in which a good is packaged for retail sale.
10. “producer” means an individual or enterprise that self-produces or engages in the production of a good.
11. “production” means operations including growing, cultivating, raising, mining, harvesting, fishing, trapping, hunting, capturing, collecting, breeding, extracting, aquaculture, gathering, manufacturing, processing or assembling a good.
12. “transaction value” means the price actually paid or payable for the good when sold for export or other value determined in accordance with the on Customs Valuation Agreement of the World Trade Organization.
13. “value of the good” means the transaction value of the good excluding any costs incurred in the international shipment of the good.
14. “Party" means any State or separate customs territory for which this Agreement is in force.
15. "person of a Party” means a person or trader of a Party.
16. “days” means calendar days;
17. “recovered material” means a material that results from:
a) the disassembly of a used good into individual parts; and
b) the cleaning, inspecting, testing or other processing of those parts as necessary for improvement to sound working condition.
18. “remanufactured good” means a good classified in HS Chapters 84 through 90 or under heading 94.02 except goods classified under HS headings 84.18, 85.09, 85.10 and 85.16, 87.03 or subheadings 8414.51, 8450.11, 8450.12, 8508.11, and 8517.11, that is entirely or partially composed of recovered materials and:
a) has a similar life expectancy and performs the same as or similar to such a good when new; and
b) has a factory warranty similar to that applicable to such a good when new.
Article 4. Certification of origin and origin verification in Vietnam
1. Issued together with this Circular the following Annexes:
a) Annex I: Product Specific Rules;
b) Annex II: Provisions related to the Product-Specific Rules of Origin for certain vehicles and parts of vehicles;
c) Annex III: Exceptions to De minimis;
d) Annex IV: C/O form CPTPP of Vietnam;
dd) Annex V: Continuation Sheet of C/O form CPTPP of Vietnam;
e) Annex VI: Guidance on Declaration of C/O form CPTPP and Continuation Sheet;
g) Annex VII: Textiles Product-Specific Rules of Origin;
h) Annex VIII: Short Supply List of Products;
i) Annex IX: List of Issuing Authorities of C/O form CPTPP of Vietnam.
2. Vietnam applies certification of origin issued by the issuing authority as to goods exported from Vietnam to other Parties. The list of issuing authorities of C/O form CPTPP of Vietnam is specified in the Annex IX issued herewith and updated on the EcoSys of the Ministry of Industry and Trade www.ecosys.gov.vn. Issuing authorities of C/O form CPTPP register specimen of seals, signatures and keep the specimen updated as prescribed by the Ministry of Industry and Trade.
3. Certification of origin and origin verification shall be carried out in accordance with Government's Decree No. 31/2018/ND-CP dated March 8, 2018 on guidelines for the Law on Foreign Trade Management regarding rules of origin and relevant regulations in this Circular.
Chapter II
GENERAL RULES OF ORIGIN
Article 5. Originating Goods
1. A good shall be treated as an originating good if it is:
a) wholly obtained or produced entirely in the territory of one or more of the Parties as established in Article 6 hereof;
b) produced entirely in the territory of one or more Parties, exclusively from originating materials; or
c) produced entirely in the territory of one or more of the Parties using non-originating materials provided the good satisfies all applicable requirements of Annex I issued herewith.
2. A textile product is originating if it satisfies all applicable requirements in this Circular and complies with other regulations of relevant law provisions.
Article 6. Wholly Obtained or Produced Goods
For the purpose of Point a Subparagraph 1 Article 5 of this Circular, a good is wholly obtained or produced entirely in the territory of one or more of the Parties if it is:
1. a plant and plant good, grown, cultivated, harvested, picked or gathered there.
2. a live animal born and raised there.
3. a good obtained from a live animal there.
4. an animal obtained by hunting, trapping, fishing, gathering or capturing there.
5. a good obtained from aquaculture there.
6. a mineral or other naturally occurring substance, not included in Subparagraphs 1 to 5 of this Article, extracted or taken from there.
7. fish, shellfish and other marine life taken from the sea, seabed or subsoil outside the territories of the Parties and, in accordance with international law, outside the territorial sea of non-Parties by vessels that are registered, listed or recorded with a Party and entitled to fly the flag of that Party.
8. a good produced from goods referred to in Subparagraph 7 of this Article on board a factory ship that is registered, listed or recorded with a Party and entitled to fly the flag of that Party.
9. a good other than fish, shellfish and other marine life taken by a Party or a person of a Party from the seabed or subsoil outside the territories of the Parties, and beyond areas over which non-Parties exercise jurisdiction provided that Party or person of that Party has the right to exploit that seabed or subsoil in accordance with international law.
10. a good that is waste or scrap derived from production or used goods collected there, provided that those goods are fit only for the recovery of raw materials.
11. a good produced there, exclusively from goods referred to in Subparagraphs 1 through 10 of this Article, or from their derivatives.
Article 7. Treatment of Recovered Materials Used in Production of a Remanufactured Good
1. A recovered material derived in the territory of one or more of the Parties is treated as originating when it is used in the production of, and incorporated into, a remanufactured good.
2. a recovered material or remanufactured good is originating only if it satisfies the applicable requirements of Article 5 hereof.
Article 8. Regional Value Content
1. A regional value content requirement specified in this Circular and related Annexes, to determine whether a good is originating, is calculated as follows:
a) Focused Value Method: Based on the Value of Specified Non-Originating Materials:
RVC=
Value of the Good - FVNM
x100
Value of the Good
b) Build-down Method: Based on the Value of Non-Originating Materials:
RVC=
Value of the Good - VNM
x100
Value of the Good
c) Build-up Method: Based on the Value of Originating Materials:
RVC=
VOM
x100
Value of the Good
d) Net Cost Method (for Automotive Goods Only):
RVC=
NC - VNM
x100
NC
where:
RVC is the regional value content of a good, expressed as a percentage.
VNM is the value of non-originating materials, including materials of undetermined origin, used in the production of the good.
NC is the net cost of the good determined in accordance with Article 12 hereof.
FVNM is the value of non-originating materials, including materials of undetermined origin, specified in Annex I issued herewith and used in the production of the good. Non-originating materials that are not specified in Annex I are not taken into account for the purpose of determining FVNM.
VOM is the value of originating materials used in the production of the good in the territory of one or more of the Parties.
2. All costs considered for the calculation of regional value content are recorded and maintained in conformity with the Generally Accepted Accounting Principles applicable in the territory of a Party where the good is produced.
Article 9. Materials Used in Production
1. If a non-originating material undergoes further production such that it satisfies the requirements of this Circular, the material is treated as originating when determining the originating status of the subsequently produced good, regardless of whether that material was produced by the producer of the good.
2. If a non-originating material is used in the production of a good, the following may be counted as originating content for the purpose of determining whether the good meets a regional value content requirement:
a) the value of processing of the non-originating material undertaken in the territory of one or more of the Parties; and
b) the value of any originating material used in the production of the non-originating material undertaken in the territory of one or more of the Parties.
Article 10. Value of Materials Used in Production
For the purpose of this Circular, the value of a material is:
1. for a material imported by the producer of the good, the transaction value of the material at the time of importation, including the costs incurred in the international shipment of the good and related costs.
2. for a material acquired in the territory where the good is produced:
a) the price paid or payable by the producer in the Party where the producer is located.
b) the value as determined for an imported material in Subparagraph 1 hereof.
c) the earliest ascertainable price paid or payable in the territory of the Party.
3. for a material that is self-produced:
a) all the costs incurred in the production of the material, which includes general expenses; and
b) an amount equivalent to the profit added in the normal course of trade, or equal to the profit that is usually reflected in the sale of goods of the same class or kind as the self-produced material that is being valued.
Article 11. Further Adjustments to the Value of Materials
1. For an originating material, the following expenses may be added to the value of the material, if not included under Article 10 hereof:
a) the costs of freight, insurance, packing and all other costs incurred to transport the material to the location of the producer of the good.
b) duties, taxes and customs brokerage fees on the material, paid in the territory of one or more of the Parties, other than duties and taxes that are waived, refunded, refundable or otherwise recoverable, which include late payment against duty or tax paid or payable.
c) the cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of reusable scrap or by-product.
2. For a non-originating material or material of undetermined origin, the following expenses may be deducted from the value of the material:
a) the costs of freight, insurance, packing and all other costs incurred to transport the material to the location of the producer of the good.
b) duties, taxes and customs brokerage fees on the material, paid in the territory of one or more of the Parties, other than duties and taxes that are waived, refunded, refundable or otherwise recoverable, which include credit against duty or tax paid or payable.
c) the cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of reusable scrap or by-product.
3. If the cost or expense listed in Subparagraph 1 or 2 of this Article is unknown or documentary evidence of the amount of the adjustment is not available, then no adjustment is allowed for the particular cost.
Article 12. Net Cost
1. If Annex I issued herewith specifies a regional value content requirement to determine whether an automotive good of subheadings 8407.31 through 8407.34, subheading 8408.20, subheadings 8409.91 through 8409.99, headings 8701 through 8709 or 8711, the requirement to determine origin of that good based on the Net Cost Method is calculated as set out under Article 8 hereof.
2. For the purposes of this Article:
a) “net cost” means total cost minus sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs that are included in the total cost; and
b) “net cost of the good” means the net cost that can be reasonably allocated to the good, using one of the following methods:
- calculating the total cost incurred with respect to all automotive goods produced by that producer, subtracting any sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs that are included in the total cost of all those goods, and then reasonably allocating the resulting net cost of those goods to the good.
- calculating the total cost incurred with respect to all automotive goods produced by that producer, reasonably allocating the total cost to the good, and then subtracting any sales promotion, marketing and after-sales service costs; royalties, shipping and packing costs, and non-allowable interest costs that are included in the portion of the total cost allocated to the good; or
- reasonably allocating each cost that forms part of the total cost incurred with respect to the good, so that the aggregate of these costs does not include any sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs, provided that the allocation of all those costs is consistent with the provisions regarding the reasonable allocation of costs set out in Generally Accepted Accounting Principles.
3. For the purposes of the Net Cost Method for motor vehicles of headings 8701 through 8706 or heading 8711, the calculation may be averaged over the producer’s fiscal year using any one of the following categories, on the basis of all motor vehicles in the category or only those motor vehicles in the category that are exported to the territory of another Party:
a) the same model line of motor vehicles in the same class of motor vehicles produced in the same plant in the territory of a Party;
b) the same class of motor vehicles produced in the same plant in the territory of a Party;
c) the same model line of motor vehicles produced in the same plant in the territory of a Party;
d) any other category as the Parties may decide.
4. For the purposes of the Net Cost Method in subparagraphs 1 and 2, for automotive materials of subheadings 8407.31 through 8407.34, 8408.20, heading 8409, 8706, 8707, or 8708, produced in the same plant, a calculation may be averaged:
a) over the fiscal year of the motor vehicle producer to whom the good is sold;
b) over any quarter or month;
c) over the fiscal year of the producer of the automotive material;
provided that the good was produced during the fiscal year, quarter or month forming the basis for the calculation, in which
- the average in subparagraph (a) is calculated separately for those goods sold to one or more motor vehicle producers; or
- the average in subparagraph (a) or (b) is calculated separately for those goods that are exported to the territory of another Party.
5. For the purposes of this Article:
a) “class of motor vehicles” means any one of the following categories of motor vehicles:
- motor vehicles classified under subheading 8701.20, motor vehicles for the transport of 16 or more persons classified under subheading 8702.10 or 8702.90, and motor vehicles classified under subheading 8704.10, 8704.22, 8704.23, 8704.32 or 8704.90, or heading 8705 or 8706;
- motor vehicles classified under subheading 8701.10 or subheadings 8701.30 through 8701.90;
- motor vehicles for the transport of 15 or fewer persons classified under subheading 8702.10 or 8702.90, and motor vehicles classified under subheading 8704.21 or 8704.31;
- motor vehicles classified under subheading 8703.21 through 8703.90; or
- motor vehicles classified under heading 8711.
b) model line of motor vehicles means a group of motor vehicles having the same platform or model name;
c) “non-allowable interest costs” means interest costs incurred by a producer that exceed 700 basis points above the yield on debt obligations of comparable maturities issued by the central level of government of the Party in which the producer is located.
d) “reasonably allocate” means to apportion in a manner appropriate under Generally Accepted Accounting Principles.
dd) “royalty” means payments of any kind, including payments under technical assistance or similar agreements, made as consideration for the use or right to use any copyright; literary, artistic or scientific work; patent; trademark; design; model; plan; secret formula or process, excluding those payments under technical assistance or similar agreements that can be related to specific services such as:
- personnel training, without regard to where that training is performed; or
- engineering, tooling, die-setting, software design and similar computer services, or other services, if performed in the territory of one or more of the Parties.
e) sales promotion, marketing and after-sales service costs means the following costs related to sales promotion, marketing and after-sales service:
- sales and marketing promotion; media advertising; advertising and market research; promotional and demonstration materials; exhibits; sales conferences, trade shows and conventions; banners; marketing displays; free samples; sales, marketing and after-sales service literature (good brochures, catalogues, technical literature, price lists, service manuals and sales aid information); establishment and protection of logos and trademarks; sponsorships; wholesale and retail restocking charges; and entertainment;
- sales and marketing incentives; consumer, retailer or wholesaler rebates; and merchandise incentives;
- salaries and wages; sales commissions; bonuses; benefits (for example, medical, insurance or pension benefits); travelling and living expenses; and membership and professional fees for sales promotion, marketing and after-sales service personnel;
- recruiting and training of sales promotion, marketing and after-sales service personnel and after-sales training of customers' employees, if those costs are identified separately for sales promotion, marketing and after-sales service of goods on the financial statements or cost accounts of the producer;
liability insurance for goods;
- office supplies for sales promotion, marketing and after-sales service of goods, if those costs are identified separately for sales promotion, marketing and after-sales service of goods on the financial statements or cost accounts of the producer;
- telephone, mail and other communications, if those costs are identified separately for sales promotion, marketing and after-sales service of goods on the financial statements or cost accounts of the producer;
- rent and depreciation of sales promotion, marketing and after-sales service offices and distribution centres;
- property insurance premiums, taxes, cost of utilities, and repair and maintenance of sales promotion, marketing and after-sales service offices and distribution centres, if those costs are identified separately for sales promotion, marketing and after-sales service of goods on the financial statements or cost accounts of the producer; and
- payments by the producer to other persons for warranty repairs.
g) “shipping and packing costs” means the costs incurred to pack a good for shipment and to ship the good from the point of direct shipment to the buyer, excluding costs to prepare and package the good for retail sale.
h) total cost means all product costs, period costs and other costs for a good incurred in the territory of one or more of the Parties, where:
- product costs are costs that are associated with the production of a good and include the value of materials, direct labour costs and direct overhead.
- “period costs” are costs, other than product costs, that are expensed in the period in which they are incurred, such as selling expenses and general and administrative expenses; and
- “other costs” are all costs recorded on the books of the producer that are not product costs or period costs, such as interest.
Total cost does not include profits that are earned by the producer, regardless of whether they are retained by the producer or paid out to other persons as dividends, or taxes paid on those profits, including capital gains taxes.
Article 13. Accumulation
1. A good is originating if the good is produced in the territory of one or more of the Parties by one or more producers, provided that the good satisfies the requirements in Article 5 and all other applicable requirements in this Circular.
2. An originating good or material of one or more of the Parties that is used in the production of another good in the territory of another Party is considered as originating in the territory of the other Party.
3. Production undertaken on a non-originating material in the territory of one or more of the Parties by one or more producers may contribute toward the originating content of a good for the purpose of determining its origin, regardless of whether that production was sufficient to confer originating status to the material itself.
Article 14. De Minimis
1. Except as provided in Annex III issued herewith, a good that contains non-originating materials that do not satisfy the applicable change in tariff classification requirement specified in Annex I issued herewith for the good is nonetheless an originating good if the value of all these materials does not exceed 10 per cent of the value of the good, as defined under paragraph 13 Article 3 hereof and the good meets all the other applicable requirements of this Circular.
2. Paragraph 1 of this Article applies only when using a non-originating material in the production of another good.
3. If a good described in paragraph 1 of this Article is also subject to a regional value content requirement, the value of those non-originating materials shall be included in the value of non-originating materials for the applicable regional value content requirement.
4. With respect to a textile or apparel good, Article 29 of this Circular applies.
Article 15. Fungible Goods or Materials
A fungible good or material is treated as originating based on the:
1. physical segregation of each fungible good or material; or
2. use of any inventory management method recognized in the Generally Accepted Accounting Principles if the fungible good or material is commingled, provided that the inventory management method selected is used throughout the fiscal year of the person that selected the inventory management method.
Article 16. Accessories, Spare Parts, Tools and Instructional or Other Information Materials
1. For the purposes of this Article:
a) in determining whether a good is wholly obtained, or satisfies a process or change in tariff classification requirement as set out in Annex I issued herewith, accessories, spare parts, tools or instructional or other information materials, as described in paragraph 3, are to be disregarded; or
b) in determining whether a good meets a regional value content requirement, the value of the accessories, spare parts, tools or instructional or other information materials, as described in paragraph 3, are to be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good.
2. A good’s accessories, spare parts, tools or instructional or other information materials, as described in paragraph 3, have the originating status of the good with which they are delivered.
3. For the purposes of this Article, accessories, spare parts, tools, and instructional or other information materials are covered when:
a) the accessories, spare parts, tools and instructional or other information materials are classified with, delivered with but not invoiced separately from the good; and
b) the types, quantities, and value of the accessories, spare parts, tools and instructional or other information materials are customary for that good.
Article 17. Packaging Materials and Containers for Retail Sale
1. Packaging materials and containers in which a good is packaged for retail sale, if classified with the good, are disregarded in determining whether all the non-originating materials used in the production of the good have satisfied the applicable process or change in tariff classification requirement set out in Annex I or whether the good is wholly obtained or produced.
2. A good is subject to a regional value content requirement, the value of the packaging materials and containers in which the good is packaged for retail sale, if classified with the good, are taken into account as originating or non-originating, as the case may be, in calculating the regional value content of the good.
Article 18. Packaging Materials and Containers for Shipment
Packing materials and containers for shipment are disregarded in determining whether a good is originating.
Article 19. Indirect materials
An indirect material is considered to be originating without regard to where it is produced.
Article 20. Sets of Goods
1. A set classified as a result of the application of Rule 3(a) or (b) of the General Rules for the Interpretation of the Harmonized System, the originating status of the set shall be determined in accordance with the product-specific rule of origin that applies to the set.
2. a set classified as a result of the application of rule 3(c) of the General Rules of Interpretation of the Harmonized System, the set is originating only if each good in the set is originating. Both the set and the goods meet the other applicable requirements of this Circular.
3. Notwithstanding paragraph 2, for a set classified as a result of the application of rule 3(c) of the General Rules of Interpretation of the Harmonized System, the set is originating if the value of all the non-originating goods in the set does not exceed 10 per cent of the value of the set.
4. For the purposes of Paragraph 3, the value of the non-originating goods in the set and the value of the set shall be calculated in the same manner as the value of non-originating materials and the value of the good.
Article 21. Transit and Transhipment
1. An originating good retains its originating status if the good has been transported to the importing Party without passing through the territory of a non-Party.
2. If an originating good is transported through the territory of one or more non-Parties, the good retains its originating status provided that the good:
a) does not undergo any operation outside the territories of the Parties other than:
- unloading; reloading; separation from a bulk shipment; storing; labelling or marking required by the importing Party; or
- any other operation necessary to preserve it in good condition or to transport the good to the territory of the importing Party.
b) remains under the control of the customs administration in the territory of a non-Party.
Chapter III
CERTIFICATION OF ORIGIN AND ORIGIN VERIFICATION
Article 22. Issuance of certification of origin
1. A certification of origin issued by the Issuing Authority may apply to:
a) a single shipment of a good into the territory of a Party; or
b) multiple shipments of identical goods within any period specified in the certification of origin, but not exceeding 12 months.
2. A certification of origin is valid for one year after the date that it was issued or for such longer period specified by the laws and regulations of the importing Party.
Article 23. Discrepancies
1. The competent Authority of the importing Party shall not reject a certification of origin due to minor errors or discrepancies in the certification of origin.
2. Minor errors or discrepancies in the certification of origin shall be provided by the competent Authority of the importing Party.
Article 24. Waiver of Certification of Origin
1. A trader is waived from a certification of origin if:
a) the customs value of the importation does not exceed US $1000 or the equivalent amount in the importing Party’s currency or any higher amount as the importing Party may establish; or
b) it is a good for which the importing Party has waived the requirement or does not require the importer to present a certification of origin.
2. The trader may not be waived from certification of origin in case where the importation forms part of a series of importations carried out or planned for the purpose of evading compliance with the importing Party’s laws governing claims for preferential tariff treatment.
Article 25. Obligations Relating to Importation
1. The trader shall take legal responsibility for any incorrect information in the certification of origin.
2. If the exporter or the producer has reason to believe that the certification of origin is based on incorrect information or does not satisfy the origin requirement, the exporter or producer shall promptly notify the importer and the competent Authority of the importing Party in writing.
Article 26. Record Keeping Requirements
The Issuing Authority of C/O form CPTPP and the trader shall maintain, for a period of no less than five years from the date it was issued, proof of origin or certification of origin in any medium that allows for prompt retrieval, including electronic, optical, magnetic or written form in accordance with Vietnam's law.
Article 27. Verification of Origin
1. The competent Authority of the importing Party may conduct a verification to determine whether a good imported into its territory is originating by one or more of the following:
a) a written request for information from the competent Authority of the exporting Party;
b) a written request for information from the importer of the good;
c) a written request for information from the exporter or producer of the good;
d) a verification visit to the premises of the exporter or producer of the good;
dd) procedures other than specified in Paragraphs 1 (a), (b) and (c) as may be decided by the competent Authority of the importing Party and the Party where an exporter or producer of the good is located.
2. If the competent Authority of an importing Party conducts a verification, it shall accept information directly from the competent Authority of the exporting Party, the importer, exporter or producer.
3. A written request for information or for a verification visit under paragraphs 1(a) through 1(d) shall be in English or in an official language of the Party of the person to whom the request is made. A written request shall:
a) include the identity of the government authority or organization;
b) state the reason for the request, including the specific issue the requesting Party seeks to resolve with the verification;
c) include sufficient information to identify the good that is being verified;
d) include a copy of relevant information submitted with the good, including the certification of origin;
dd) in the case of a verification visit, request the written consent of the exporter or producer whose premises are going to be visited, and state the proposed date and location for the visit and its specific purpose.
4. If an importing Party has initiated a verification in accordance with paragraph 1(c) or 1(d), it shall inform the importer of the initiation of the verification.
5. For a verification under paragraphs 1(a) through 1(d), the competent Authority of the importing Party shall:
a) ensure that a written request for information, or for documentation to be reviewed during a verification visit, is limited to information and documentation to determine whether the good is originating;
b) describe the information or documentation in sufficient detail to allow the importer, exporter or producer to identify the information and documentation necessary to respond;
c) allow the importer, exporter or producer at least 30 days from the date of receipt of the written request for information under paragraph 1(a) or 1(d) to respond;
d) allow the exporter or producer 30 days from the date of receipt of the written request for a visit under paragraph 1(d) to consent or refuse the request; and
dd) make a determination following a verification as expeditiously as possible and no later than 90 days after it receives the information necessary to make the determination, including, if applicable, any information received under paragraph 8, and no later than 365 days after the first request for information or other action under paragraph 1. A Party may extend the 365 day period in exceptional cases, such as where the technical information concerned is very complex.
6. If an importing Party makes a verification request under paragraph 1(c), it shall,
a) on request of the Party where the exporter or producer is located and in accordance with the importing Party’s laws and regulations, inform that Party. The competent Authority of the importing Party shall decide the manner and timing of informing the Party where the exporter or producer is located of the verification request.
b) The Party where the exporter or producer is located may, as it deems appropriate and in accordance with its laws and regulations, assist with the verification upon the request of the importing Party. This assistance may include providing a contact point for the verification, collecting information from the exporter or producer on behalf of the importing Party, or other activities in order that the importing Party may make a determination as to whether the good is originating. The importing Party shall not deny a claim for preferential tariff treatment solely on the ground that the Party where the exporter or producer is located did not provide requested assistance.
7. Prior to issuing a written determination, the competent Authority of the importing Party shall inform the competent Authority of the exporting Party, the importer and exporter or producer that provided information directly to the importing Party, of the results of the verification. If the importing Party will provide the competent Authority of the exporting Party, the importer and exporter or producer a period of at least 30 days for the submission of additional information relating to the origin of the good before denial of preferential tariff treatment.
8. The importing Party shall:
a) provide the competent Authority of the exporting Party with a written determination of whether the good is originating that includes the basis for the determination;
b) provide the importer with a written determination of whether the good is originating that includes the basis for the determination;
c) provide the importer, exporter or producer that provided information during the verification or certified that the good was originating with the results of the verification and the reasons for that result.
9. If verifications of identical goods by a Party indicate a pattern of conduct by an importer, exporter or producer of false or unsupported representations relevant to a claim that a good imported into its territory qualifies as an originating good, the Party may withhold preferential tariff treatment to identical goods. “identical goods” means goods that are the same in all respects relevant to the particular rule of origin.
Article 28. Confidentiality
The competent Authority of Vietnam shall maintain the confidentiality of the information related to origin that could prejudice the competitive position of the person or organization providing the information in accordance with this Circular and other regulations of relevant law provisions.
Chapter IV
SPECIFIC REGULATIONS REGARDING TEXTILE PRODUCTS
Article 29. De Minimis Rules for Textile Products
1. A textile product not under Chapter 61, 62, 63 of the Harmonized Commodity Description and Coding Systems that uses non-originating materials or does not satisfy the applicable change in tariff classification requirement as specified in Annex VII issued herewith will nonetheless be an originating good provided that total weight of these non-originating materials does not exceed 10% of the total weight of the good and the good satisfies other applicable requirements provided in this Chapter and Chapter II hereof.
2. A textile product under Chapter 61, 62, 63 of the Harmonized Commodity Description and Coding Systems that uses non-originating fibres and yarns, during the production of key element to tariff classification does not satisfy the applicable change in tariff classification requirement as specified in Annex VII issued herewith will nonetheless be an originating good provided that total weight of these non-originating fibres does not exceed 10% of the total weight of the good and the good satisfies other applicable requirements provided in this Circular.
3. A good as specified in paragraph 1 or 2 containing elastic yarns in the key composition to the tariff classification is considered as originating when these elastic yarns were twisted in the territory of one or more of the Parties.
Article 30. Sets of Goods
1. Except for Textiles Product-Specific Rules of Origin specified in Annex VII issued herewith, the textile product classified as set of goods for retail sale in accordance with Rule 3 of General Rules for Interpretation of the Harmonized System shall not be considered originating, unless each good in the set is originating or the value of all non-originating goods in the set does not exceed 10 percent of the value of the set.
2. For the purposes of paragraph 1 of this Article:
a) The value of the non-originating goods in the set shall be calculated in the same manner as the value of non-originating materials in accordance with this Circular;
b) The value of the set of goods shall be calculated in the same manner as the value of the good in accordance with this Circular.
Article 31. Short Supply List of Products
1. A textile product is determined originating as specified in paragraph 1(c) of Article 5 or a material listed in the Annex VIII issued herewith is determined originating only if the material satisfies any applicable requirement, including output requirement in this Annex.
2. When an originating textile product, based on the combination of materials in Appendix VIII issued herewith, is accorded preferential tariff treatment, the importing Party may require certification of origin, ordinal numbers or description of materials in this Annex in the importation dossier.
3. An non-originating material listed in the Table “Temporary” in the Annex VIII issued herewith may be treated as originating as prescribed in paragraph 1 within 5 years from effective date of this Agreement.
Article 32. Issuance of C/O for exported goods before effective date of this Circular
The Issuing Authority of C/O shall consider issuing C/O form CPTPP for Vietnamese exported goods before effective date of this Circular for the purpose of claiming preferential tariff treatment in accordance with this Agreement and the importing Party’s law.
This Circular comes into force as of March 8, 2019.
 
 
MINISTER
(Signed and sealed)



Tran Tuan Anh
(This translation is for reference only)



 © Vietnam Industry and Trade Information Center ( VITIC)- Ministry of Industry and Trade 
License: No 56/GP-TTDT issued by the Ministry of Information and Communications.
Address: Room 605, 6 th Floor, The Ministry of Industry and Trade's Building, No. 655 Pham Van Dong Street, Bac Tu Liem District - Hanoi.
Tel. : (04)38251312; (04)39341911- Fax: (04)38251312
Websites: http://asemconnectvietnam.gov.vn; http://nhanhieuviet.gov.vn
Email: Asem@vtic.vn; Asemconnectvietnam@gmail.com