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Circular No.: 62/2019/TT-BTC dated September 05, 2019 of the Ministry of Finance on amendments to Circular No. 38/2018/TT-BTC dated April 20, 2018 of the Minister of Finance prescribing determination of origin of imports and exports

Date: 9/5/2019


THE MINISTRY OF FINANCE
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THE SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
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No.: 62/2019/TT-BTC
Hanoi, September 05, 2019
 
CIRCULAR
AMENDMENTS TO CIRCULAR NO. 38/2018/TT-BTC DATED APRIL 20, 2018 OF MINISTER OF FINANCE PRESCRIBING DETERMINATION OF ORIGIN OF IMPORTS AND EXPORTS
Pursuant to the Law on Customs dated June 23, 2014;
Pursuant to the Law on Export and Import Duties dated April 06, 2016;
Pursuant to the Law on Foreign Trade Management dated June 12, 2017;
Pursuant to the Government’s Decree No. 08/2015/ND-CP dated January 21, 2015 providing guidelines for the Law on Customs in terms of customs procedures, inspection, supervision and control; the Government’s Decree No. 59/2018/ND-CP dated April 20, 2018 on amendments to the Government’s Decree No. 08/2015/ND-CP dated January 21, 2015 on guidelines for the Law on Customs in terms of customs procedures, inspection, supervision and control;
Pursuant to the Government’s Decree No. 134/2016/ND-CP dated September 01, 2016 providing guidelines for the Law on Export and Import Duties;
Pursuant to the Government’s Decree No. 31/2018/ND-CP dated March 08, 2018 on guidelines for the Law on Foreign Trade Management regarding origin of goods;
Pursuant to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) signed in Chile on March 08, 2018;
Pursuant to the Government’s Decree No. 87/2017/ND-CP dated July 26, 2017 defining functions, tasks, powers and organizational structure of the Ministry of Finance;
At the request of the Director General of the General Department of Customs,
The Minister of Finance promulgates a Circular providing amendments to Circular No. 38/2018/TT-BTC dated April 20, 2018 of the Minister of Finance prescribing determination of origin of imports and exports.
Article 1. Amendments to Circular No. 38/2018/TT-BTC dated April 20, 2018 of Minister of Finance prescribing determination of origin of imports and exports (hereinafter referred to as “Circular No. 38/2018/TT-BTC”)
1. Point b Clause 4 Article 4 is amended as follows:
 “b) Where the customs declarant failed to present proof of origin of goods as prescribed in Point b, Point c Clause 1 and Clause 2 of this Article, customs clearance shall be rejected and goods will be treated in accordance with regulations of laws.”
2. Point h Clause 6 Article 15 is amended as follows:
 “h) HS code differences between the statements made in the proof of origin and those made in the customs declaration of imported goods:
If there are HS code differences between the statements made in the proof of origin and those made in the customs declaration of imported goods but the description of goods made in that proof of origin conforms to that made in the customs declaration and in fact corresponds to the goods to be imported, and the customs authority has the grounds for determination that the goods whose HS code is provided in the customs declaration and/or additional customs declaration meet all applicable origin criteria, that proof of origin may be accepted.
If there are HS code differences between the statements made in the proof of origin and those made in the customs declaration of imported goods and the description of goods made in that proof of origin does not conform to that made in the customs declaration or correspond to the goods to be imported, and the customs authority has the grounds for determination that the goods to be imported are not the ones described in the proof of origin, the customs authority shall reject that proof of origin and make a notification on the electronic customs data processing system in accordance with Clause 2 Article 22 of this Circular.
If there are HS code differences between the statements made in the proof of origin and those made in the customs declaration of imported goods but the description of goods made in that proof of origin conforms to that made in the customs declaration and in fact corresponds to the goods to be imported, and the customs authority has no grounds for determination that the goods whose HS code is provided in the customs declaration meet one of origin criteria set forth in the Government’s Decree No. 31/2018/ND-CP dated March 08, 2018 on guidelines for the Law on Foreign Trade Management regarding origin of goods and relevant guiding documents, including wholly obtained goods (WO), regional value content (RVC), change in chapter (CC), change in tariff heading (CTH), change in tariff sub-heading (CTSH), goods produced entirely in the territory of the exporting Party or produced exclusively from originating materials of one or more Parties (PE), specific manufacturing or processing operation (SP), De Minimis, the customs authority shall determine the origin of goods in accordance with regulations in Article 19 and Article 21 of this Circular.”
3. Point d is added to Clause 1 Article 22 as follows:
 “d) Where the proof of origin is available at the time of following customs procedures for imports but the customs declarant fails to provide reference number or date of issue of that proof of origin or where the proof of origin is not available at the time of following customs procedures for imports and the customs declarant does not make the statement that the proof of origin is submitted later on the customs declaration of imported goods as regulated in Article 5 of this Circular, the customs authority shall be entitled to reject the proof of origin as regulated.
If the customs declarant has made the statement that the proof of origin is submitted later as regulated in Article 5 of this Circular but fails to make additional customs declaration and submit the proof of origin within the time limit prescribed in Article 7 of this Circular, the customs authority shall be entitled to reject the proof of origin as regulated.”
4. Article 7a is added as follows:
 “Article 7a.  Determination of origin of imports/exports for applying special preferential tariff treatment under the framework of CPTPP
1. Declaration, submission, inspection, verification and rejection of proofs of origin of imports/exports for the purpose of implementation of CPTPP shall conform to regulations of this Circular.
2. Time of submission of proofs of origin for claiming special preferential tariff treatment:
a) One of the following documents shall be presented to the customs authority at the time of following customs procedures for imports:
a.1) The proof of origin issued by the exporter or producer (self-certification of origin): 01 original;
a.2) The proof of origin (Certificate of origin – C/O) issued by a competent authority of the exporting Party: 01 original.
b) If no declaration is made for applying special preferential tariff treatment at the time of following customs procedures for imports, in order to claiming the special preferential tariff treatment, the customs declarant shall:
b.1) make clear statement about the origin of goods and the statement that the proof of origin will be submitted later on the customs declaration at the time of following customs procedures;
b.2) make additional declaration and submit 01 original of the proof of origin within 12 months from the day on which the customs declaration is signed.
Procedures for refunding overpaid tax shall conform to regulations of the Law on tax administration.
3. A proof of origin must meet the following requirements:
a) The proof of origin must, inter alia, contain the following information:
a.1) The exporter or producer: Indicate whether the certifier is the exporter or producer;
a.2) Name, address (including country), telephone number and e-mail address of the certifier;  
a.3) Name, address (including country), telephone number and e-mail address of the exporter if different from the certifier;
This information is not required if the producer is completing the certificate of origin and does not know the identity of the exporter. The address of the exporter shall be the place of export of the good in a CPTPP country;
a.4) Name, address (including country), telephone number and e-mail address of the producer, if different from the certifier or exporter or, if there are multiple producers, "various" shall be stated or a list of producers shall be provided.  A person that wants this information to remain confidential may state “Available upon request by the importing authorities”. The address of a producer shall be the place of production of the good in a CPTPP country;
a.5) Name, address, e-mail address and telephone number of the importer (if known). The address of the importer shall be in a CPTPP country;
a.6) Description of HS code of the good;
A description of the good and the HS code of the good to the 6-digit level shall be provided. The description should be sufficient to relate it to the good covered by the certificate of origin. If the proof of origin covers a single shipment of a good, the invoice number related to the exportation shall be indicated (if known);
a.7) Origin criteria: The origin criteria which the good meets shall be specified;
a.8) Blanket Period
For situations where the proof of origin covers multiple shipments of identical goods, the period covered by the proof of origin shall be specified provided it must not exceed 12 months;
a.9) Authorized signature and date:
The proof of origin must be signed and dated by the certifier and accompanied by the following statement: I certify that the goods described in this document qualify as originating and the information contained in this document is true and accurate. I assume responsibility for providing such representations and agree to maintain and present upon request or to make available during a verification visit, documentation necessary to support this certification;
b) The proof of origin must be provided as a written statement (hardcopy or electronic).
c) If the proof of origin is not in English, the customs declarant is required to submit a translation in Vietnamese or English and assumes responsibility for the provided translation.
4. Where a CPTPP country makes a notification that only proof of origin issued by a competent authority or completed by an approved exporter or producer is accepted, within 01 working day from the receipt of sufficient information from exporting countries, the General Department of Customs shall inform Provincial Customs Departments of the application of the said form of proof of origin, the list of competent authorities authorized to issue proof of origin of exporting countries, list of approved exporters and producers and other relevant information (if any).  
5. If the proof of origin covers multiple shipments of identical goods for the specified period as prescribed in Point a.8 Clause 3 of this Article, the customs declarant shall follow the customs procedures as follows:
a) Customs procedures to be followed in case the proof of origin does not specify the quantity of imported goods:
When following customs procedures for the first shipment covered by the proof of origin which covers multiple shipments of identical goods, the customs declarant shall submit 01 original of the proof of origin to the customs authority. 
The customs authority shall examine the conformity between the customs declaration and the proof of origin, and other documents included in the customs dossier, and whether the shipment qualifies the rule of origin or not for applying the special preferential tariff treatment.
With regard to the following shipments, the customs declarant shall write the number of the customs declaration of the first shipment covered by the same proof of origin as prescribed in Point a.8, Clause 3 of this Article in the “Note” item.
b) Customs procedures to be followed in case the quantity of imported goods is specified in the proof of origin:
The customs declarant shall send 01 original of the proof of origin covering the shipment of identical goods to the customs authority and request the customs authority to apply this proof of origin to multiple shipments of identical goods.
The customs authority shall record the proof of origin on the system and monitor the quantity of imported goods of each shipment according to the quantity of imported good written on the proof of origin. Procedures for monitoring and deduction of quantity of imported goods shall comply with regulations in Article 23 of this Circular.
c) The customs authority where the first customs declaration is opened shall examine the form and contents of the proof of origin. With regard to the following shipments, the customs authority shall examine the validity of the proof of origin, description and HS code of the goods which must satisfy identical goods requirements.
6. Customs authorities accept the proof of origin for applying special preferential tariff treatment in case the commercial invoice is issued by a non-member country.
In case the commercial invoice is issued by a non-member country, the proof of origin must be issued separately from that commercial invoice.
7. In case the good is transported through the territory of one or more non-member countries as prescribed in Clause 2 Article 21 of the Circular No. 03/2019/TT-BCT dated January 22, 2019 of the Minister of Industry and Trade providing rules of origin of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) (hereinafter referred to as “Circular No. 03/2019/TT-BCT”), the customs declarant shall provide documentary evidences as prescribed in Point a Clause 3 Article 18 of this Circular.
8. Customs authorities shall reject the proof of origin in the following circumstances:
a) Imported goods are found unqualified for preferential tariff treatment as regulated;
b) During the verification process, the custom authority does not receive sufficient information for determining originating goods as regulated;
c) The exporter, producer or competent authority that issued the proof of origin fails to respond to the written request for information verification or fails to provide necessary information as regulated within the period of 180 days from the day on which a written request for verification is sent by the General Department of Customs;
d) The exporter, producer or competent authority that issued the proof of origin fails to respond in writing to the written request of the General Department of Customs for a verification visit in the exporting country within 30 days from the receipt of such written request;
dd) Other cases as prescribed in Point d Clause 1 Article 22 of this Circular.
9. Before deciding to reject the proof of origin, the General Department of Customs shall notify verification results as prescribed in Article 27 of the Circular No. 03/2019/TT-BCT to the importer, exporter, producer or competent authority that issued the proof of origin and provided information for verification purposes. The exporter, producer or competent authority of the exporting country may provide additional information relating to the origin of goods within a maximum period of 90 days from the day on which verification results are notified by the General Department of Customs.
10. If the customs authority rejects to grant special preferential tariff treatment, reasons thereof must be provided in writing to the importer.”
Article 2. Amending column “Description” in Section III Appendix II – List of imported goods for which the proof of origin must be submitted to customs authorities enclosed with the Circular No. 38/2018/TT-BTC
 “Motor vehicles with HS codes of Chapter 87, excluding:
Special purpose motor vehicles, road tractors for containers;
Motor vehicles of entities provided with privileges and immunities;
Motor vehicles imported as gifts, belongings, humanitarian foreign aid or to serve scientific research;
Motor vehicles temporarily imported for re-export, being in transit or sent to bonded warehouses;
Motor vehicles imported to service national defense and security purposes upon a written permission or certification granted by the Ministry of National Defence, the Ministry of Public Security or a unit authorized by the Ministry of National Defence or the Ministry of Public Security.”
Article 3. Implementation
1. This Circular comes into force from October 21, 2019.
2. Customs declarations for imports/exports registered within the period from January 14, 2019 to before the effective date of this Circular shall apply regulations on origin and tax rates under CPTPP, the Government’s Decree No. 57/2019/ND-CP dated June 26, 2019 on the preferential export tariff schedule and the special preferential import tariff schedule for implementation of CPTPP in the 2019-2022 period and Clause 4 Article 1 of this Circular, except the provision of reference number, date of issue or statement of late submission of proof of origin on customs declarations for imports. The customs declarant who has overpaid tax may submit a written request for refunding of overpaid tax to the customs authority where his/her customs declaration is registered.
3. Customs authorities shall examine and determine origin of imports/exports in accordance with regulations of the Circular No. 38/2018/TT-BTC , provisions herein and other relevant legislative documents. Difficulties that arise during the implementation of this Circular should be promptly reported to the Ministry of Finance (via the General Department of Customs) for consideration.
4. During implementation of this Circular, if relevant documents referred to in this Circular are amended, supplemented or superseded, the new ones shall apply./.
 
 
PP. MINISTER
DEPUTY MINISTER
(Signed and sealed)



Vu Thi Mai
(This translation is for reference only)



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