Not just proving legal wood
For wood processing and export businesses, requirement for raw material sources is increasingly important. Import markets are not only concerned with product quality and price, but also demand legality of wood and its traceability. Meanwhile, to qualify for preferential tariffs under free trade agreements (FTAs), businesses must also meet another requirement: proving product's origin according to regulations of each agreement.
These two requirements are related but not identical. Documentation proving legality of wood helps businesses control their raw material sources; while determining origin to apply for a Certificate of Origin (C/O) must be based on the specific rules of the product, including HS code, raw material source and production process.
In an interview with a reporter from Industry and Trade Newspaper, Mr. Phung Quoc Man, Chairman of Ho Chi Minh City Handicraft and Wood Processing Association, stated...Ho Chi Minh City (HAWA) stated: “Currently, international markets are setting very strict requirements, especially regarding legality of wood sources and traceability. This has become an important criterion, alongside product quality and price”.
According to Mr. Man, businesses are having to prove legality of both imported wood and domestically grown timber. This is an issue involving many entities in supply chain, not just processing plants. He believes: “Businesses cannot solve this on their own”.
From this reality, challenge for businesses goes beyond simply gathering documentation when exporting. Information about raw materials needs to be managed from procurement stage and linked to processing process to provide a basis for comparison when determining product origin. If only documents proving legality of wood are available without determining corresponding origin criteria, businesses still lack sufficient grounds to request preferential tariffs under FTAs.
Rules of origin must be checked for each item
Rules of origin in FTAs do not apply a single criterion to all wood products. Depending on HS code and agreement, goods may have to meet requirements regarding HS code transformation, percentage of value of raw materials or specific processing steps.
For example, according to specific rules of origin for each item in CPTPP, for goods under Chapter 44, from HS codes 44.01 to 44.21, criterion is transformation to corresponding HS code from another HS code. This requires businesses to compare HS code of non-originating raw material with HS code of processed product, instead of simply relying on whether raw material was legally imported or traded.
For products in other HS codes, including wooden furniture, businesses must consult specific rules according to HS code of the finished product. Criteria applied to raw timber or products under Chapter 44 cannot be applied to all processed wood products.
Notably, rules of origin in EVFTA have also been updated. Circular No.14/2026/TT-BCT dated March 25, 2026, effective from May 10, 2026, stipulates rules of origin for goods under EVFTA, updating the list of specific rules for goods according to the HS 2022 system. Businesses need to correctly identify product code and origin criteria to determine their ability to meet requirements before requesting a certificate of origin.
From a business perspective, Mr. Phung Quoc Man suggested that coordination between the Government, ministries, agencies, associations and relevant organizations is needed to build a unified mechanism for proving the legality of raw material sources. "With a clear and transparent system of criteria, businesses will have a solid basis to prove the legality of their products to international customers", Mr. Phung Quoc Man stated.
Regarding implementation of Certificates of Origin (C/O), requirements are even more specific: businesses must manage their raw material sources, correctly identify the HS code, compare it with rules of origin of target market and retain documentation proving the production process. Standardizing input data therefore not only serves to control legality of timber but also helps businesses be more proactive in implementing rules of origin and taking advantage of tariff preferences from FTAs.

Source: Vitic/ congthuong.vn