Tariff preferences linked to rules of origin
Free Trade Agreements (FTAs) open opportunities for Vietnamese goods to access international markets with more favorable tariff conditions. However, advantages from tariff reduction commitments do not mean that all exported products will benefit from these preferences. Ability to utilize these commitments depends directly on whether the goods meet rules of origin and the conditions applicable under each agreement.
Emphasizing role of rules of origin in enhancing effectiveness of utilizing tariff preferences, Ms. Trinh Thi Thu Hien, Deputy Director of Import-Export Department (Ministry of Industry and Trade), analyzed requirements for determining and certifying origin of goods at training program "Disseminating legal regulations and addressing difficulties and obstacles of export businesses in field of origin of goods (C/O)" organized by Hanoi Department of Industry and Trade on November 10, 2026.
In fact, relationship between tariff preferences and rules of origin is clearly demonstrated through commitments in FTAs such as EVFTA and CPTPP. Tariff reductions enhance competitiveness of exported goods, but to qualify for preferential tariffs, products must fully meet origin criteria and related requirements of respective agreement.
This means that even if goods are exported from an FTA member country, businesses may still not benefit from tariff preferences if they do not meet origin requirements. Therefore, understanding rules of origin should be prioritized from raw material selection and production organization stages to completion of export documentation, rather than focusing solely on processing paperwork when goods are ready to enter the market.
Essentially, rules of origin are a system of criteria used to determine the country or territory of origin of goods. In international trade, this is a crucial basis for considering application of trade policies, especially in determining ability to meet conditions for enjoying preferential tariffs under FTAs.
Another issue that businesses need to be aware of is difference between a certificate of origin (C/O) and origin information shown on product labels such as "Made in," "Product of," as well as traceability and product branding. Although there are certain connections, these concepts are not identical in nature, function and purpose. Including information about place of production on product labels or having traceability data does not automatically replace a certificate of origin as required by each trade mechanism.
From requirement to effectively utilize FTAs, issue for businesses is not only determining origin of goods, but more importantly, ability to prove that the product meets origin criteria under applicable agreement. This is a crucial condition for transforming preferential tariff commitments into tangible advantages in export activities.
Proactively updating regulations and improving origin certification capacity
To effectively utilize preferential tariffs from FTAs, in addition to meeting rules of origin, businesses need to thoroughly understand certification mechanism and requirements for documents and records under each agreement. This is a vital factor in ensuring that goods meet the conditions for enjoying preferential treatment, while minimizing obstacles arising during the export process.
Currently, mechanism for certifying origin of goods is implemented through two main forms: certification issued by competent agencies and organizations and self-certification of origin by traders according to regulations. Each form has its own requirements regarding application conditions, responsibilities of implementing entity and documentation proving origin.
For mechanism of issuing certificates of origin (C/O), businesses must follow corresponding procedures. Meanwhile, self-certification mechanism requires traders to proactively determine, prove and take responsibility for accuracy of origin information within permitted scope. Regardless of method, meeting rules of origin remains a core requirement for goods to be considered for preferential tariff treatment.
Notably, FTAs have their own regulations on mechanism and documentation for certifying origin. System of C/O forms currently used in import and export activities is quite diverse, including forms D, AI, AK, AJ, AANZ, RCEP, EUR.1, EUR.1 UK, CPTPP, EAV, VK and VJ. This requires businesses to correctly identify applicable regulations for each market, avoiding confusion during preparation of documents and certification process.
Furthermore, updating changes in rules of origin under FTAs is a crucial requirement. Topics discussed at training conference included specific rules of origin for goods within framework of Vietnam-Korea Free Trade Agreement (VKFTA) and ASEAN-Japan Comprehensive Economic Partnership Agreement (AJCEP); upgrades to ASEAN Trade in Goods Agreement (ATIGA); Certificate of Origin (C/O) form within framework of ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA); and issues related to Vietnam-EFTA trade framework.
These points highlight need for close monitoring of adjustment and improvement of rules of origin, especially specific product origin criteria and certification mechanisms. Proactively updating policies not only facilitates completion of documentation but also provides businesses with a basis for organizing production, selecting raw materials and developing export plans that meet requirements of each agreement.
Besides complying with certification regulations, ability to prove origin during inspection and verification is also a matter of concern for businesses. In reality, being granted a Certificate of Origin (C/O) does not mean that goods will not be subject to origin verification requests from importing country.
Regarding coordination mechanism for resolving issues, if problems arise with C/Os in importing country, businesses need to notify issuing organization for coordinated handling. Import-Export Department will communicate with point of contact responsible for origin in importing country to clarify related issues through coordination mechanism.
This requires businesses to focus on managing and storing records and ensuring accuracy and consistency of origin information. Ability to provide complete documents and data for inspection and verification not only helps businesses proactively handle arising problems but also contributes to enhancing transparency in export activities.
In long term, improving effectiveness of FTAs requires businesses to change their approach to origin management. Instead of viewing the Certificate of Origin (C/O) as a document to be completed before export, origin management should be implemented throughout entire process, from raw material selection and production organization to record keeping and certification requirements.

Source: Viic/ congthuong.vn