PRESCRIBING RULES OF ORIGIN IN THE ASEAN – HONG KONG, CHINA FREE TRADE AGREEMENT

This Circular introduces the Rules of Origin in the Asean – Hong Kong, China Free Trade Agreement (hereinafter referred to as “AHKFTA”).

This Circular applies to:

1. Issuing authorities of Certificate of Origin (C/O).

2. Traders, regulatory authorities, organizations and individuals that have activities related to the origin of goods.

For the purposes of this Circular, the terms below are construed as follows:

1. “aquaculture” means the farming of aquatic organisms, including fish, molluscs, crustaceans, other aquatic invertebrates and aquatic plants, from seedstock such as eggs, fry, fingerlings and larvae, by intervention in the rearing or growth processes to enhance production, such as regular stocking, feeding, protection from predators, etc.

2. “CIF (Costs, Insurance and Freight)” 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 importing Party.

3. “FOB (Free-on-board)” means the free-on-board value of the good, inclusive of the cost of transport to the port or site of final shipment abroad.

4. “generally accepted accounting principles - GAAP” means the recognised consensus or substantial authoritative support in 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 standards may encompass broad guidelines of general application as well as detailed standards, practices and procedures.

5. “good” means a material or product, which can be wholly obtained or produced, even if it is intended for later use as a material in another production process. For the purposes of this Circular, the terms “good” and “product” can be used interchangeably.

6. “identical and interchangeable materials” means materials being of the same kind and commercial quality, possessing the same technical and physical characteristics, and which after being incorporated into the finished product cannot be distinguished from one another for origin purposes by virtue of any markings, or mere visual examination.

7. “material” means any matter or substance used or consumed in the production of a good or physically incorporated into another good or subjected to a process in the production of another good.

8. “non-originating good or non-originating material” means a good or material that does not qualify as originating in accordance with the provisions of this Circular.

9. “originating good or originating material” means a good or material that qualifies as originating in accordance with the provisions of this Circular.

10. “packing material and container for transportation” means the material or container used to protect a good during its transportation, different from that container or material used for its retail sale.

11. “preferential tariff treatment” means tariff concessions granted to originating goods as reflected by the tariff rates applicable under AHKFTA.

12. “production” means methods of obtaining goods, including growing, mining, harvesting, raising, breeding, extracting, gathering, aquaculture, collecting, capturing, fishing, trapping, hunting, manufacturing, producing, processing or assembling goods.

13. “Product Specific Rules (PSR)" means the rules set out Appendix I enclosed herewith. In order to determine the origin of goods, materials used to produce a good must:

a) have undergone a change in tariff classification (CTC); or

b) have undergone a specific manufacturing or processing operation (SP); or

c) satisfy a regional value content (RVC) criterion; or

d) satisfy a combination of any of the criteria specified in Point a, Point b and Point c of this Clause.

14. “Movement Confirmation (MC) (Form AHK)” means a C/O issued by the issuing authority of an intermediate Party based on the C/O (Form AHK) issued by the first exporting Party.

15. “exporter” means a natural or juridical person located in the territory of a Party where a good is exported from by such a person.

16. “importer” means a natural or juridical person located in the territory of a Party where a good is imported into by such a person.

17. “producer” means a natural or juridical person who carries out production in the territory of a Party.

18. “simple” means an activity which does not need special skills, machines, apparatus or equipment especially produced or installed for carrying out that activity.

19. “simple mixing" means an activity which does not need special skills, machines, apparatus or equipment especially produced or installed for carrying out that activity. The simple mixing does not include chemical reaction. Chemical reaction means a process (including a biochemical process) which results in a molecule with a new structure by breaking intramolecular bonds and by forming new intramolecular bonds, or by altering the spatial arrangement of atoms in a molecule.

20. “slaughtering” means the mere killing of animals and subsequent processes such as cutting, chilling, freezing, salting, drying or smoking, for the purpose of preservation for storage and transport.

1. The following Appendixes are enclosed with this Circular:

a) Appendix I: Product Specific Rules;

b) Appendix II: Specimen of C/O – Form AHK;

c) Appendix III: Instruction for declarations in C/O (Form AHK) for exports;

d) Appendix IV: List of Vietnam’s authorized issuing authorities of C/O (Form AHK);

dd) Appendix V: List of data requirements.

2. List of Vietnam's authorized issuing authorities of C/O (Form AHK) is provided in Appendix IV enclosed herewith and published on the electronic certificates of origin system (www.ecosys.gov.vn) of the Ministry of Industry and Trade. Specimen signatures and official seals of issuing authorities of C/O (Form AHK) must be registered and updated in accordance with regulations of the Ministry of Industry and Trade.

3. Operational procedures for certification and verification of origin of goods shall conform to provisions in the Government’s Decree No. 31/2018/ND-CP dated March 08, 2018 providing guidelines for the Law on foreign trade management regarding origin of goods and relevant laws.

A good imported into a Party from another Party shall be treated as an originating good if it conforms to the origin requirements under any one of the following conditions and other provisions of this Circular:

1. A good which is wholly obtained or produced in the exporting Party as set out in Article 6 of this Circular.

2. A good produced in the exporting Party exclusively from originating materials from one or more of the Parties.

3. A good produced in the exporting Party from non-originating materials, provided that the good is eligible under Article 7 of this Circular.

For the purposes of Clause 1 Article 5 of this Circular, the following goods shall be considered as wholly obtained or produced in the exporting Party:

1. Plants and plant products (including fruits, flowers, vegetables, trees, seaweed, fungi and live plants) grown, harvested, picked or gathered in a Party.

2. Live animals (including mammals, birds, fish, crustaceans, molluscs, reptiles, bacteria and viruses) born and raised in a Party.

3. Goods obtained from live animals in a Party.

4. Goods obtained from hunting, trapping, fishing, farming, aquaculture, gathering or capturing conducted in a Party.

5. Minerals and other naturally occurring substances extracted or taken from the soil, waters, seabed or beneath the seabed in a Party, not included in Clauses 1 to 4 of this Article.

6. Products of sea-fishing extracted or taken by vessels registered with the exporting Party and entitled to fly the flag of that Party, minerals and other naturally occurring substances extracted or taken from the waters, seabed or beneath the seabed outside the waters of the exporting Party, provided that that Party has the rights to exploit such waters, seabed and beneath the seabed in accordance with international law. International law refers to generally accepted international laws such as the United Nations Convention of the Law of the Sea in 1982.

7. Products of sea-fishing and other marine products taken from the high seas by vessels registered with a Party and entitled to fly the flag of that Party.

8. Products processed or made on board factory ships registered with a Party or entitled to fly the flag of that Party, exclusively from products referred to in Clause 7 of this Article.

9. Goods which are waste and scrap derived from production or consumption in a Party provided that such goods are fit only for the recovery of raw materials or for recycling purposes.

10. Used goods consumed and collected in a Party provided that such goods are fit only for the recovery of raw materials or for recycling purposes.

11. Goods obtained or produced in the exporting Party from products referred to in Clauses 1 to 10 of this Article.

1. The good specified in Clause 3 Article 5 of this Circular, except for those goods covered under Clause 2 of this Article, shall be treated as an originating good if it has a RVC of not less than 40% calculated using the formula set out in Article 8 of this Circular.

2. A good shall be treated as an originating good if it meets the Product Specific Rules specified in Appendix I enclosed herewith.

1. RVC is the Regional Value Content, expressed as a percentage. The formula for calculating RVC is as follows:

a) Direct method:

or

b) Indirect method:

The indirect method for calculating RVC as specified in Point b Clause 1 of this Article is adopted in Vietnam for determining the origin of exports under AHKFTA.

2. For the purposes of calculating the RVC provided in Clause 1 of this Article:

a) AHKFTA material cost is the value of originating materials, parts or produce that are acquired or self-produced by the producer in the production of the good.

b) VNM (Value of non-originating materials, parts or produce) is the CIF value at the time of importation or the earliest ascertained price paid for all non-originating materials, parts or produce that are acquired by the producer in the production of the good. Non-originating materials include materials of undetermined origin.

c) Direct labour cost includes wages, remuneration and other employee benefits associated with the manufacturing process.

d) Direct overhead cost includes, but is not limited to, buildings associated with the production process (insurance, short-term and long-term factory leasing, depreciation on buildings, repair and maintenance, taxes, interests on mortgage); long-term leasing of and interest payments for plant and equipment; factory security; insurance (plant, equipment and materials used in the manufacture of the goods); utilities serving the production of goods (energy, electricity, water and other utilities directly attributable to the production of the goods); research, development, design and engineering; dies, moulds, tooling and the depreciation, maintenance and repair of plant and equipment; royalties or licences (in connection with patented machines or processes used in the manufacture of the goods or the right to manufacture the goods); inspection and testing of materials and the goods; storage and handling in the factory; disposal of recyclable wastes; and cost elements in computing the value of raw materials such as port and clearance charges and import duties paid for dutiable components.

dd) 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 and service charges.

3. The value of goods under this Circular shall be determined in accordance with the Customs Valuation Agreement.

A good which complies with the origin requirements provided for in a Party and which is used in another Party as a material for a finished good eligible for preferential tariff treatment shall be considered to be originating in the latter Party where working or processing of the finished goods has taken place.

1. A good shall not be considered to be originating in the territory of a Party if the following operations are undertaken exclusively by itself or in combination in the territory of that Party:

a) Preserving operations to ensure that the good remains in good condition during transport and storage;

b) Changes of packaging, breaking-up and assembly of packages;

c) Simple washing, cleaning, removal of dust, oxide, oil, paint or other coverings;

d) Simple painting and polishing operations;

dd) Husking, partial or total bleaching, polishing and glazing of cereals and rice;

e) Operations to color sugar or form sugar lumps;

g) Simple peeling, stoning, or un-shelling;

h) Sharpening, simple grinding or simple cutting;

i) Sifting, screening, sorting, classifying, grading, matching;

k) Simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations;

l) Affixing or printing marks, labels, logos and other like distinguishing signs on products or their packaging;

m) Simple mixing of products, whether or not of different kinds;

n) Simple assembly of parts of articles to constitute a complete article or disassembly of products into parts;

o) Simple testing or calibrations; or

p) Slaughtering of animals.

2. A good originating in the territory of a Party shall retain its initial originating status, when exported from another Party, where operations undertaken have not gone beyond those referred to in Clause 1 of Articles.

1. Preferential tariff treatment shall be applied goods satisfying the requirements of this Circular and which are consigned directly between the exporting Party and the importing Party.

2. The following shall be considered as consigned directly from the exporting Party to the importing Party:

a) Goods transported directly from the exporting Party to the importing Party; or

b) Goods transported through one or more Parties, other than the exporting Party and the importing Party, or through a non-Party, provided that:

- The transit entry is justified for geographical reason or by consideration related exclusively to transport requirements;

- The goods have not entered into trade or consumption there; and

- The goods have not undergone any operation there other than unloading and reloading or any operation required to keep it in good condition.

1. A good that does not satisfy a CTC requirement shall be considered as originating if the value of all non-originating materials used in its production that do not undergo the required CTC does not exceed 10% of the FOB value of the good and the good meets all other applicable criteria set forth in this Circular for qualifying as an originating good.

2. The value of non-originating materials referred to in Clause 1 shall be included in the value of non-originating materials for any applicable RVC requirement for the good.

1. Packing materials and containers for transportation and shipment of a good shall not be taken into account in determining the origin of any good.

2. Packaging materials and containers in which the good is packaged for retail sale, which are classified with the good, shall be disregarded in determining the origin of the good, provided that:

a) The good is wholly obtained as set out in Clause 1 Article 5 of this Circular;

b) The good is produced entirely in the territory of a Party as set out in Clause 2 Article 5 of this Circular;

c) The good is subject to CTC requirement set out in Appendix I enclosed herewith.

3. If a good is subject to RVC requirement, the value of the packaging materials and containers in which the good is packaged for retail sale shall be taken into account in determining the origin of the good.

1. If a good is subject to the requirements of CTC or SP, the origin of accessories, spare parts, tools and instructional or other information materials presented with the good shall not be taken into account in determining whether the good qualifies as an originating good, provided that:

a) The accessories, spare parts, tools and instructional or other information materials are not invoiced separately from the good; and

b) The quantities and value of accessories, spare parts, tools and instructional or other information materials are customary for the good.

2. If a good is subject to a RVC-based rule of origin, the value of the accessories, spare parts, tools and instructional or information materials shall be taken into account as the value of the originating or non-originating materials, as the case may be, in calculating the RVC of the good.

In order to determine whether a good is an originating good, it shall not be necessary to determine the origin of the following which might be used in its production and not incorporated into the good:

1. Fuel and energy.

2. Tools, dies and moulds.

3. Spare parts and materials used in the maintenance of equipment and buildings.

4. Lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings.

5. Gloves, glasses, footwear, clothing, safety equipment and supplies.

6. Equipment, devices and supplies used for testing or inspecting the goods.

7. Catalysts and solvents.

8. Any other goods that are 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.

1. The determination of whether identical and interchangeable materials are originating materials shall be made either by physical segregation of each of the materials or by the use of GAAP of stock control applicable, or inventory management method, in the exporting Party.

2. Once a decision has been taken on the inventory management method, that method shall be used throughout the fiscal year.

The producer or exporter of the good eligible for preferential tariff treatment may apply to the C/O issuing authority requesting pre-exportation examination of the origin of the good. The result of pre-exportation examination, subject to review periodically or whenever appropriate, shall be accepted as the supporting evidence in determining the origin of the said good to be exported thereafter. The pre-exportation examination may not apply to the good of which, by its nature, origin can be easily determined.

At the time of carrying out the formalities for exporting the good under preferential tariff treatment, the exporter or its authorized representative shall submit a written application or an application by electronic means for C/O (Form AHK), and appropriate supporting documents proving that the good to be exported qualifies for the issuance of C/O (Form AHK).

The C/O issuing authority shall carry out proper examination of each application for a C/O (Form AHK) to ensure that:

1. The origin of the good is in conformity with provisions of this Circular.

2. The other details in the C/O (Form AHK) correspond to the supporting documentary evidence submitted.

3. The description, quantity and weight of the good, marks and numbers on packages, number and kinds of packages, as specified, conform to the good to be exported.

4. The application for C/O and C/O (Form AHK) are duly completed and signed either manually or electronically by the authorized signatory.

In order to be granted preferential tariff treatment, the good must be supported by a C/O (Form AHK) issued by an issuing authority designated by the exporting Party.

1. The format of the C/O (Form AHK) shall follow the form in Appendix II which is determined by the Parties according to the list of data requirements in Appendix V enclosed herewith.

2. The C/O (Form AHK) shall comprise one original and two copies.

3. The C/O (Form AHK) shall:

a) be in hardcopy;

b) bear a unique reference number separately given by each C/O issuing authority;

c) be in the English language; and

d) bear an authorized signature and official seal of the C/O issuing authority. The signature and official seal may be applied electronically.

4. The FOB value of goods, when the RVC origin criterion is applied, needs to be indicated on the C/O (Form AHK) for goods that are exported from one ASEAN Member State to another ASEAN Member State, and from Hong Kong, China to ASEAN Member States, but needs not be indicated if the goods are exported from ASEAN Member States to Hong Kong, China.

5. The original C/O (Form AHK) shall be forwarded by the exporter to the importer for submission to the customs authority of the importing Party. Copies shall be retained by the C/O issuing authority of the exporting Party and the exporter.

6. Multiples goods declared on the same C/O (Form AHK) shall be allowed, provided that each good is originating in its own right.

Neither erasures nor superimpositions shall be allowed on the C/O (Form AHK). Any alteration shall be made by:

1. Striking out the erroneous details and making any addition required. Such alteration shall be approved by an official authorized to sign the C/O (Form AHK) and certified by the C/O issuing authority. Unused spaces shall be crossed out to prevent any subsequent addition.

2. Issuing a new C/O (Form AHK) to replace the erroneous one.

1. The C/O (Form AHK) shall be issued by the C/O issuing authority of the exporting Party prior to shipment or at the time of shipment but shall not be issued more than 3 working days after the declared shipment date.

2. In case where the C/O (Form AHK) has not been issued at the time specified in Clause 1 of this article due to involuntary errors or other valid causes, the C/O (Form AHK) may be issued retroactively but no longer than 1 year from the date of shipment and the “ISSUED RETROACTIVELY” in Box 13 shall be ticked.

An issuing authority of an intermediate exporting Party shall issue an MC, if an application is made by the exporter while the good is passing through that intermediate exporting Party, provided that:

1. A valid original C/O (Form AHK) or its certified true copy is presented;

2. The period of validity of the MC does not exceed the period of validity of the original C/O (Form AHK).

3. The goods which are to be re-exported using the MC (Form AHK) shall remain under the supervision of the competent authority of the intermediate exporting Party. The supervision of the competent authority of the intermediate exporting Party includes documentary controls or any risk management procedures as deemed necessary by that competent authority. The goods which are to be re-exported using the MC (Form AHK) shall not undergo any further processing in the intermediate exporting Party, except for repacking or logistics activities such as unloading, reloading, storing, or any other operations necessary to preserve them in good condition or to transport them to the importing Party.

4. The MC contains relevant information from the original C/O (Form AHK) pursuant to the List of data requirements in Appendix V enclosed herewith. The FOB value shall be the FOB value of the goods exported from the intermediate exporting Party.

5. In the event that the information is not complete or circumvention is suspected, the final importing Party may request the original C/O (Form AHK) be submitted to its respective competent authority.

6. The retroactive check in Article 30 hereof shall also apply to the MC.

In the event of theft, loss or destruction of a C/O (Form AHK), the exporter may apply in writing to the C/O issuing authority for a certified true copy of the original C/O (Form AHK) or its copies. The certified true copy shall be made on the basis of the export documents in the possession of the C/O issuing authority and bear the words “CERTIFIED TRUE COPY”. This copy shall bear the date of issuance of the original C/O (Form AHK) and shall be issued no longer than one year from the date of issuance of the original C/O (Form AHK).

1. For the purposes of claiming preferential tariff treatment, the importer shall submit to the customs authority of the importing Party at the time of import, a declaration, a C/O (Form AHK) including supporting documents (including sales invoices and, when required, Bill of Lading or other related transportation documents) issued in the territory of the exporting Party and other documents as required in accordance with the internal laws and regulations of the importing Party.

2. In the case where a C/O (Form AHK) is rejected by the customs authority of the importing Party, Box 4 of the subject C/O (Form AHK) shall be marked accordingly and the original C/O (Form AHK) shall be returned to the C/O issuing authority within a reasonable period but not exceeding 60 days from the date of rejection. The C/O issuing authority shall be duly notified of the grounds for the denial of preferential tariff treatment.

3. In the case where a C/O (Form AHK) is rejected, as stated in Clause 2 of this Article, the importing Party shall accept and consider the clarification made by the C/O issuing authority and assess again whether or not the C/O (Form AHK) can be accepted for the granting of the preferential tariff treatment. The clarifications shall be detailed and exhaustive in addressing the grounds of denial of preferential tariff treatment raised by the importing Party. If a clarification made by the C/O issuing authority addresses the grounds for denial of preferential tariff treatment and satisfies the requirements of this Circular, the importing Party shall accept the C/O (Form AHK) and grant preferential tariff treatment in accordance with its internal laws and regulations.

1. The following time limit for the presentation of the C/O (Form AHK) shall be observed:

a) The C/O (Form AHK) shall be valid for a period of one year from the date of issuance and shall be submitted to the customs authority of the importing Party within that period;

b) Where the C/O (Form AHK) is submitted to the customs authority of the importing Party after the expiration of the time limit for its submission, such C/O (Form AHK) shall still be accepted where failure to observe the time limit for its submission results from force majeure or other valid causes beyond the control of the importer or the exporter.

2. In all cases, the customs authority of the importing Party may accept such C/O (Form AHK) provided that the goods have been imported before the expiration of the time limit of the said C/O (Form AHK).

1. In the case of a consignment of goods originating in the exporting Party and not exceeding US$ 200.00 FOB, the presentation of C/O (Form AHK) shall be waived and the use of simplified declaration by the exporter that the goods in question have originated in the exporting Party shall be accepted. Goods sent through the post not exceeding US$ 200.00 FOB shall also be similarly treated.

2. Without prejudice to the generality of Clause 1 of this Article, a Party may elect not to require submission of a C/O (Form AHK).

1. Where the origin of the goods is not in doubt, the discovery of minor discrepancies, such as typographical errors in the statements made in the C/O (Form AHK) or made in other documents submitted to the customs authority of the importing Party for the purpose of carrying out the formalities for importing the goods, shall not ipso facto invalidate the C/O (Form AHK), if it does in fact correspond to the goods submitted.

2. In the case where the exporting Party and the importing Party have different tariff classifications (HS codes) for a good subject to preferential tariff treatment, the goods shall be released at the most-favoured-nation (MFN) rates or at the AHKFTA preferential rate, subject to the compliance of the applicable rules of origin, and no penalty or other charges shall be imposed on the importer in accordance with the internal laws and regulations of the importing Party. Once the HS code classification differences have been resolved, the correct AHKFTA preferential rate shall be applied and any overpaid duty shall be refunded if applicable, in accordance with the internal laws and regulations of the importing Party.

3. For multiple items declared under the same C/O (Form AHK), a problem encountered with one of the items listed shall not affect or delay the granting of preferential tariff treatment and customs clearance of the remaining items. Point c Clause 1 Article 30 of this Circular may be applied to the problematic items.

1. For the purposes of the check and verification of the origin of goods pursuant to Article 30 of this Circular, the producer or exporter applying for the issuance of a C/O (Form AHK) shall keep its supporting records for application for not less than 3 years from the date of issuance of the C/O (Form AHK) in accordance with the internal laws and regulations of the exporting Party.

2. The application for C/O (Form AHK) and all documents related to such application shall be retained by the C/O issuing authority for not less than 3 years from the date of issuance.

3. Information relating to the validity of the C/O (Form AHK) shall be furnished by the C/O issuing authority of the exporting Party upon request of the importing Party.

4. Any information communicated between the Parties concerned shall be treated as confidential and shall be used for purpose of the validation of C/O (Form AHK) only.

1. The competent authority of the importing Party may request the competent authority of the exporting Party to conduct a retroactive check at random or when it has reasonable doubt as to the authenticity of the document or as to the accuracy of the information regarding the true origin of the goods in question or of certain parts thereof. Upon such request, the competent authority of the exporting Party shall conduct a retroactive check on the exporter or producer, subject to the following conditions:

a) The request for retroactive check shall be accompanied with the C/O (Form AHK) concerned and shall specify the reasons and any additional information suggesting that the particulars given on the said C/O may be inaccurate, unless the retroactive check is requested on a random basis.

b) The competent authority of the exporting Party shall respond to the request promptly and transmit the results of the retroactive check to the importing Party within 90 days upon the receipt of the request.

c) The competent authority of the importing Party may suspend the provisions on preferential tariff treatment for the duration of the retroactive check. However, the competent authority of the importing Party may release the good to the importer subject to any administrative measures deemed necessary, provided that it is not held to be subject to import prohibition or restriction and there is no suspicion of fraud. In the event that a determination is made by the importing Party that the good qualifies as an originating good, any suspended preferential tariff treatment shall be reinstated.

d) After receipt of the results of the retroactive check from the exporting Party, the competent authority of the importing Party shall determine whether or not the subject good is an originating good. The entire process of retroactive check, including the process of notifying the competent authority of the exporting Party the result of the determination of whether or not the good is an originating good, shall be completed within 180 days upon the receipt of the request.

2. If the competent authority of the importing Party is not satisfied with the outcome of the retroactive check as prescribed in Clause 1 of this Article, it may, under exceptional cases, request for verification visit to the premises of the premises of the producer through the importing Party according to the following conditions:

a) Prior to conducting a verification visit, the competent authority of the importing Party shall deliver a written request to conduct the proposed verification visit to:

- The exporter of producer whose premises are to be visited;

- The competent authority of the exporting Party;

- The importer of the goods that are subject to the verification visit.

The said written request shall be comprehensive as possible and includes:

- The name and contact details of the competent authority issuing the request;

- The name of the exporter of producer whose premises are to be visited;

- The proposed date for the verification visit;

- The objective and scope of the proposed verification visit, including specific reference to the goods subject to the verification;

- The names and designation or title of the officials of the importing Party performing the verification visit.

Prior to conducting a verification visit, the competent authority of the importing Party shall also obtain the written consent of the exporter or producer whose premises are to be visited.

b) Where a written consent from the exporter or producer is not obtained within 30 days upon receipt of the written request pursuant to Point a Clause 2 of this Article, the competent authority of the importing Party may deny preferential tariff treatment to the goods that would have been the subject of the verification visit.

c) The competent authority of the exporting Party receiving the written request may postpone the proposed verification visit and notify the competent authority of the importing Party of such intention. Notwithstanding any postponement, any verification visit shall be carried out in accordance with the internal laws and regulations of the exporting Party within 60 days upon the date of receipt of the request. This period may be extended as the concerned Parties agree. The arrangement of the verification visit shall be agreed by the competent authorities of the importing and exporting Parties.

d) The competent authority of the importing Party conducting the verification visit shall provide the exporter or producer whose goods are the subject of the verification visit, and the competent authority of the exporting Party, with a written determination of whether or not the subject goods qualified as originating goods.

dd) Any suspended preferential tariff treatment shall be reinstated upon the written determination referred to in Point d Clause 2 of this Article that the goods qualify as originating goods.

e) The exporter or producer shall be allowed 30 days, upon receipt of the written determination that the subject goods do not qualify as originating goods, to provide in writing additional information regarding the eligibility of the goods to the competent authority of the importing Party. If the goods are still found to be non-originating, the final written determination shall be communicated by the competent authority of the importing Party to the competent authority of the exporting Party within 30 days upon receipt of additional information from the exporter or producer.

g) The verification visit process, including the actual visit and determination of whether the subject goods are originating or not, shall be carried out and its results shall be communicated to the competent authority of the exporting Party within 180 days upon receipt of the written request pursuant to Point a Clause 2 of this Article. While awaiting the results of the verification visit, Point c Clause 1 of this Article on the suspension of preferential tariff treatment shall be applied.

3. Each Party shall maintain the confidentiality of the information and documents collected in the process of retroactive check and verification visit pursuant to Clause 1 and Clause 2 of this Article and shall protect such information from disclosure that could prejudice the competitive position of the person who provided the information. Such information and documents shall not be used for other purposes, including being used as evidence in administrative and judicial proceedings, without the explicit written permission of the Party providing such information.

For the purposes of implementing Article 11 of this Circular, where transportation is effected through the area of one or more non-Parties of the AHKFTA, the following shall be produced to the competent authority of the importing Party:

1. The Bill of Lading or other related transportation documents issued in the exporting Party.

2. A C/O (Form AHK) issued by the relevant C/O issuing authority of the exporting Party, unless not required pursuant to Article 27 of this Circular.

3. A copy of the original sales invoice in respect of the goods.

4. Supporting documents in evidence that the requirements of Point b Clause 2 Article 11 of this Article have been complied with.

1. Goods sent from an exporting Party for exhibition in another Party and sold during or after the exhibition for importation into a Party shall be granted preferential tariff treatment accorded under the AHKFTA on the condition that the goods meet the origin requirements as set out in this Circular, and provided that it is shown to the satisfaction of the relevant customs authority of the importing Party that:

a) An exporter has dispatched those goods from the territory of the exporting Party to the Party where the exhibition is held and has exhibited them there;

b) The exporter has sold the goods or transferred them to a consignee in the importing Party;

c) The goods have been consigned during the exhibition or immediately thereafter to the importing Party in the state in which they were sent for the exhibition.

2. For the purposes of Clause 1 of this Article, the C/O (Form AHK) shall be provided to the competent authority of the importing Party. The name and address of the exhibition shall be indicated. The relevant competent authority or customs authority of Party where the exhibition took place may provide evidence together with supporting documents prescribed in Clause 4 Article 31 of this Circular for the identification of the goods and the conditions under which they were exhibited.

3. Clause 1 of this Article shall apply to any trade, agricultural or crafts exhibition, fair or similar show or display in shops or business premises with a view to the sale and where the goods remain under customs control during the exhibition.

1. The competent authority of the importing Party shall accept C/O (Form AHK) in the case where the sales invoice is issued either by a company located in a third party or by an exporter for the account of the said company, provided that the goods meet the origin requirements of this Circular.

2. The exporter shall indicate “Third party invoicing” and such information as name and country/party of the company issuing the invoice in the C/O (Form AHK).

1. Guidelines and clarifications relating to the implementation of the Chapter of Rules of Origin, which have been agreed by the Parties alternately or via reports of meetings of AHKFTA Joint Committee and the Sub-Committee on Rules of Origin under the framework of the AHKFTA shall be considered as the basis for implementation by C/O issuing authorities and customs authorities.

2. The guidelines and clarifications mentioned in Clause 1 of this Article shall be notified to C/O issuing authorities and customs authorities through the contact points designated to implement the AHKFTA pursuant to Article 3 of the Government's 03/NQ-CP dated January 07, 2019 on ratification of the Asean – Hong Kong, China Free Trade Agreement (AHKFTA).

1. This Circular comes into force from December 23, 2019.

2. C/O issuing authorities shall consider issuing C/O (Form AHK) covering exported goods of Vietnam before the date of entry into force of this Circular for claiming preferential tariff treatment in accordance with provisions of the AHKFTA and internal laws and regulations of importing Parties.

3. Customs authorities of importing Parties start accepting C/O (Form AHK) issued on or after June 11, 2019. Procedures for verification of C/O (Form AHK) for granting preferential tariff treatment shall comply with provisions of AHKFTA, Chapter III of this Circular and other relevant legislative documents./.

 

 

PRODUCT SPECIFIC RULES
(Enclosed with the Circular No. 21/2019/TT-BCT dated November 08, 2019 of the Minister of Industry and Trade prescribing Rules of Origin in the AHKFTA)

1. Where a tariff heading or subheading is subject to a choice of Product Specific Rules (PSR), it shall be sufficient to comply with one of the rules in this Appendix. Where the PSR provides a choice of rules from RVC rule, CTC rule, SP rule, or a combination of any of these criteria, the exporter shall be allowed to decide which rule to use in determining whether the good qualifies as an originating good.

2. The CTC or SP rule shall apply only to non-originating materials.

3. A requirement of a CTC applies only to non-originating materials.

4. For the purposes of the column entitled “Origin Criteria" of this Appendix, the terms below are construed as follows:

WO means that the good must be wholly obtained or produced in accordance with Article 6 of this Circular;

RVC (XX) means that the good must have a regional value content of not less than XX per cent as calculated under Article 8 of this Circular;

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) of the Harmonized System;

CTH means that all non-originating materials used in the production of the good have undergone a change in tariff classification at the 4-digit level (i.e. a change in Heading) of the Harmonized System;

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) of the Harmonized System.

 

INSTRUCTIONS FOR CERTIFICATE OF ORIGIN FOR EXPORTS (FORM AHK)
(Enclosed with the Circular No. 21/2019/TT-BCT dated November 08, 2019 of the Minister of Industry and Trade prescribing Rules of Origin in the AHKFTA)

A C/O (Form AHK) shall be typed in English language (except the case prescribed in Clause 15 below). The statements in the C/O must correspond to the customs declaration and other documents such as Bill of Lading, sales invoices and verification records (where a request for verification is made). Contents of a C/O (Form AHK) include:

1. The top right box “Certificate No.”: the reference number (which is inserted by the C/O issuing authority). The reference number consists of 13 characters divided into 5 groups as follows:

a) Group 1: The abbreviated name of the exporting Party which is Vietnam and consists of 02 characters “VN”;

b) Group 2: The abbreviated name of the importing Party which is a AHKFTA Member State and consists of 02 characters as follows:

c) Group 3: The year of issuance of C/O (Form AHK), including 02 digits. E.g.: The C/O is issued in 2019, “19” shall be specified;

d) Group 4: Code of the C/O issuing authority, including 02 characters. The list of Vietnam’s authorized C/O issuing authorities is provided in Appendix IV enclosed herewith;

dd) Group 5: the ordinal number of C/O (Form AHK), including 05 characters;

e) There is a dash “-“ between group 1 and group 2; There is a slash “/” between groups 3, 4 and 5.

E.g.: If Hanoi City Foreign Trade Management Office issues a C/O (Form AHK) of the ordinal number “8” covering a shipment of goods exported to Hong Kong, China in 2019, the reference number of the issued C/O shall be “VN-HK 19/01/00008”.

2. Box 1: The exporter’s name, address and the exporting Country/Party (Vietnam).

3. Box 2: The consignee’s name, address and the importing Country/Party.

4. Box 3: Shipment date and means of transport (“By air" or the vessel’s name is specified if goods are shipped by air or by sea respectively) and port of discharge.

5. Box 4: shall not be indicated.

6. Box 5: The item number.

7. Box 6: Marks and numbers on packages.

8. Box 7:

- Number and kind of packages, description of goods (including 6-digit HS code, and, if applicable, number, name and brand name of goods). Description of goods must be sufficient to facilitate the determination of goods by the customs authority of the importing Party.

- Producer’s name and trademark must be indicated.

- Names and country/party of the company issuing third party invoice (if any) shall be indicated.

9. Box 8: Origin-conferring criterion

10. Box 9: Quantity (Gross or Net weight or other measurement) and FOB value (where RVC is applied); An exporter needs not to indicate in Box 9 - the FOB value of goods if the goods are exported from an ASEAN Member State to Hong Kong, China.

11. Box 10: Invoice number and date of invoice. The invoice should be the one for the importation of the good into the importing Country/Party. In case where a third party invoice is used, the number invoice in Box 10 shall be indicated according to Section 14 of this Appendix.

12. Box 11:

a) The word “Viet Nam” shall be indicated in the first line if the C/O (Form AHK) is issued; or the Country/Party of origin shall be indicated if the Movement Confirmation is issued;

b) The full name of the Importing Country/Party shall be indicated in the second line;

c) The place and date of applying for C/O, full name and signature of the applicant for C/O are indicated in the third line.

13. Box 12: The authority that issues C/O (Form AHK) shall indicate place and date of issuance of C/O, signature of the official issuing C/O, stamp of the C/O issuing authority.

14. Box 13:

a) The “Issued Retroactively" in Box 13 shall be ticked “√” if the C/O is issued retroactively in accordance with Article 22 of this Circular.

b) In cases where goods are sent from the exporting Party for exhibition in another Party and sold during or after the exhibition for importation into another importing Party in accordance with Article 32 of this Circular, the " Exhibition" box in Box 13 shall be ticked “√”. Name and address of the exhibition is indicated in Box 2;

c) If the C/O (Form AHK) is issued in accordance with Article 23 of this Circular, the “Movement Confirmation" in Box 13 shall be ticked “√”.

d) If the invoice is issued by a company located in a third party in accordance with Article 33 of this Circular, the “Third Party Invoicing" in Box 13 shall be ticked “√”. The name and country/party of the company issuing the invoice shall be indicated in Box 7, or on a continuation sheet if there is insufficient space. The number of the invoice issued by the producer or the exporter or the number of the invoice issued by the trader for the importation of goods into the importing Country/Party shall be indicated in Box 10.

dd) In case of accumulation of goods in accordance with Article 9 of this Circular, the “Accumulation” box in Box 13 shall be ticked “√”.

e) If the good meets the “De Minimis” rule in accordance with Article 12 of this Circular, the “De Minimis” box in Box 13 shall be ticked “√”.

15. Other instructions: Box 13 may be ticked “√” by hand or printed by computer.

 

LIST OF VIETNAM’S AUTHORITIES AUTHORIZED TO ISSUE CERTIFICATE OF ORIGIN (FORM AHK)
(Enclosed with the Circular No. 21/2019/TT-BCT dated November 08, 2019 of the Minister of Industry and Trade prescribing Rules of Origin in the AHKFTA)

LIST OF DATA REQUIREMENTS
(Enclosed with the Circular No. 21/2019/TT-BCT dated November 08, 2019 of the Minister of Industry and Trade prescribing Rules of Origin in the AHKFTA)

The proof of origin used for claiming preferential tariff treatment under the AHKFTA shall contain the following information:

The name, address, Country/Party and contact details of the exporter.

a) Consignee’s name, address and Party/Country.

b) Sufficient details to identify the consignment, such as importer’s purchase order number, invoice number and date and Air Way Bill or Sea Way Bill or Bill of Lading.

c) Port of discharge, as far as known.

a) Marks and numbers on packages.

b) Detailed description of the goods, including HS Code (6-digit level), and if applicable, product number and brand name.

c) The relevant origin-conferring criteria.

d) Quantity of goods.

dd) FOB value (when the RVC origin criterion is applied), except if the goods are exported from ASEAN Member States to Hong Kong, China.

Certification by the C/O issuing authority that the goods specified in the C/O (Form AHK) meet all the relevant requirements in this Circular based on the documents provided, and the date of issuance of the C/O (Form AHK).

A unique number assigned to the C/O (Form AHK) by the C/O issuing authority.