Chapter II
IDENTIFICATION OF ORIGIN OF GOODS
Article 4. General rules for identifying origin of goods
An originating good, for the purposes of this Circular, is a good which is originating in a country, group of countries, or territory where the last processing operation is performed and substantially transforms such good.
Article 5. Preferential rules of origin
1. The identification of origin of imports or exports for enjoyment of tariff or non-tariff preferences shall comply with treaties to which Vietnam has signed or acceded and relevant legal documents on guidelines for the implementation of these treaties.
2. The identification of origin of exports for enjoyment of general tariff preferences and other unilateral preferences shall comply with the rules of origin of importing countries regarding these preferences and regulations of the Ministry of Industry and Trade on guidelines for such rules of origin.
Article 6. Non-preferential rules of origin
1. An exported or imported good shall be treated as which is as wholly produced or obtained in a country, group of countries, or territory if it complies with Article 7 Government's Decree No. 31/2018/ ND-CP dated March 8, 2015 on guidelines for the Law on Foreign Trade Management in terms of origin of goods (hereinafter referred to as Decree No. 31/2018/ND-CP).
2. An exported or imported good shall be treated as which is not wholly obtained or produced in a country, group of countries, or territory if it satisfies the criteria prescribed in the Appendix I of Product Specific Rules issued together with this Circular on guidelines for Article 8 of Decree No. 31/2018/ND-CP. Criteria for non-preferential goods in Appendix I:
a) “Change in tariff classification” (hereinafter referred to as CTC): means a change in two-digit, four-digit, or six-digit HS heading of a good as compared with the HS heading of non-originating materials (including imported materials and materials of undetermined origin) used for the production of such good.
b) "Local value content” (hereinafter referred to as LVC): is calculated according to the formula prescribed in Clause 3 of this Article.
3. LVC shall be calculated according to one of the two formulas:
a) Direct formula:
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LVC =
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Value of materials originating in a country, group of countries, or territory of production
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X 100%
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FOB
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or
b) Indirect formula:
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LVC =
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FOB
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-
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Value of materials not originating in a country, group of countries, or territory of production
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X 100%
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FOB
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The applicant for C/O shall choose either direct formula or indirect formula at their own discretion to calculate LVC and apply the chosen formula throughout such financial year. The verification and identification of LVC criteria for exported goods of Vietnam shall be based on the aforesaid formula.
4. In order to calculate LVC according to the formula prescribed in Clause 3 of this Article, value of materials and cost incurred in the production process of goods shall be determined as follows:
a) “Value of materials originating in a country, group of countries, or territory of production” is inclusive of CIF value of materials acquired or locally produced that are originating in a country, group of countries, or territory; direct labor cost, overhead cost, other costs and profits.
b) “Value of materials originating in a country, group of countries, or territory of production” is CIF value of materials imported that are originating in a country, group of countries, or territory; or the earliest ascertained price stated in the VAT invoices associated with materials of unidentifiable origin used for the production, processing of ultimate product.
c) “FOB” is the value stated in the export contract which is calculated as follows: “FOB = Ex-workshop price + other costs”.
- “Ex-workshop price” = Production cost + profit;
- “Production cost” = material cost + direct labor cost + overhead cost;
- “Material cost” covers expenses associated with purchase of materials, their cost of freight and insurance;
- “Direct labor cost” covers wages, bonuses and other welfare amounts related to the production process;
- “Overhead cost" covers: Overhead cost relates to production process (insurance for buildings, factory rents and hire-purchase cost, depreciation of buildings, repairs, taxes, collateral interests); hire-purchase cost and interests of factories and equipment; factory security; insurance (for factories and equipments used in the production process); expenses for essentials for production process (energy, electricity and other essentials to be used directly in the production process); research, development, design and workmanship; pressing molds, moulds, devices and amortization, maintenance and repairs of factories and equipment; patent royalties (in respect of patented machines or use of patented machines in production process or goods production licenses); testing of materials and goods; storage in factories; waste treatment; cost factors in calculating value of materials, such as port-related cost, good clearance and import duties on taxable components;
- "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, service charges and relevant costs incurred when loading goods onboard ships for export.
5. The applicant for C/O shall choose any of origin criteria prescribed in Clause 1 or Clause 2 of this Article to make declaration of origin in conformity with the nature of good provided that the good satisfies the criteria and other regulations in Chapter III of Decree No. 31/2018/ND-CP.
Article 7. Declaration of origin of goods
1. An applicant for C/O shall use one of the following to declare that the exported good satisfies the preferential rules of origin or non-preferential rules of origin as prescribed in Point e Clause 1 Article 15 of Decree No. 31/2018/ND-CP:
a) A declaration of wholly-obtained exported goods (WO) using the prescribed form in Appendix II issued herewith if the materials thereof are acquired locally to produce those imported goods without VAT invoices;
b) A declaration of wholly-obtained exported goods (WO) using the prescribed form in Appendix III issued herewith if the materials thereof are acquired locally to produce those imported goods with VAT invoices;
c) A declaration of wholly-obtained exported goods in the ASEAN-Korea free trade area using the prescribed form in Appendix IV issued herewith if the goods satisfy “WO-AK” criteria in accordance with the Agreement on Trade in Goods within the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and Korea;
d) A declaration of exported goods satisfying CTC criteria using the prescribed form in Appendix V issued herewith;
dd) A declaration of exported goods satisfying De Minimis criteria using the prescribed form in Appendix VI issued herewith;
e) A declaration of exported goods satisfying LVC criteria using the prescribed form in Appendix VII issued herewith;
g) A declaration of exported goods satisfying RVC criteria using the prescribed form in Appendix VIII issued herewith;
h) A declaration of exported goods satisfying PE criteria “goods produced entirely in a Party from materials originating in one or more Parties” using the prescribed form in Appendix IX issued herewith if the goods satisfy PE criteria as prescribed in rules of origin in certain free trade agreements to which Vietnam is a signatory.
2. If the applicant for C/O is not the producer, it must request the producer to make a declaration using one of the forms prescribed in Clause 1 hereof and provide proof of origin to complete the application for C/O as prescribed in Point e Clause 1 Article 15 of Decree No. 31/2018/ND-CP.
3. If the originating goods or materials are locally produced and used in the subsequent stages to produce another good, the applicant for C/O shall request the producer or supplier to make a declaration using one of the forms prescribed in Appendix X issued herewith and give it to the applicant for C/O to complete the application for C/O as prescribed in Point g Clause 1 Article 15 of Decree No. 31/2018/ND-CP.
4. The electronic form of declarations as provided in Clauses 1, 2 and 3 of this Article shall be posted on the electronic C/O management system of the Ministry of Industry and Trade at www.ecosys.gov.vn or another website of the issuing authority designated by the Ministry of Industry and Trade.
Tìm kiếm
Thông tư 05/2018/TT-BCT (Bản Word)
Thông tư 05/2018/TT-BCT (Bản Pdf)