Circular No. 04/2010/TT-BCT on Implementing Rules of Origin under the Agreement between the Ministry of Industry and Trade of the Socialist Republic of Vietnam and the Ministry of Industry and Trade of the Lao People's Democratic Republic on Rules of Origin for Goods Entitled to Preferential Import Tariff Treatment between Vietnam and Laos.

CIRCULAR

Implementing the rules of origin in the Agreement between the Ministry of Industry and Trade of the Socialist Republic of Vietnam and the Ministry of Industry and Trade of the Lao People's Democratic Republic on rules of origin applicable to goods benefiting from preferential tariff rates under the Vietnam-Laos Preferential Tariff Agreement

The Socialist Republic of Vietnam and the Ministry of Industry and Trade of the 

Lao People's Democratic Republic on rules of origin applicable to goods benefiting from preferential tariff rates under the Vietnam-Laos Agreement 

||| the Vietnam-Laos Preferential Tariff Rates

Pursuant to Decree No. 189/2007/ND-CP dated December 27, 2007, issued by the Government, detailing the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Agreement between the Ministry of Industry and Trade of the Socialist Republic of Vietnam and the Ministry of Industry and Trade of the Lao People's Democratic Republic on Rules of Origin Applicable to Goods Benefiting from Preferential Tariff Rates under the Vietnam-Laos Preferential Tariff Agreement signed on October 1, 2009 in Hanoi, Vietnam;

Pursuant to Decree No. 19/2006/NĐ-CP dated February 20, 2006, promulgated by the Government detailing the Law on Commerce regarding the origin of goods;

The Minister of Industry and Trade hereby stipulates the implementation of the Rules of Origin in the Agreement between the Ministry of Industry and Trade of the Socialist Republic of Vietnam and the Ministry of Industry and Trade of the Lao People's Democratic Republic on Rules of Origin Applicable to Goods Benefiting from Preferential Tariff Rates under the Vietnam-Laos Preferential Tariff Agreement as follows:

PART I
GENERAL PROVISIONS

Article 1. Goods issued with Certificate of Origin Form S

Goods issued with Certificate of Origin Form S (hereinafter referred to as C/O in this Circular) are goods of origin as prescribed in Appendix 1 of this Circular and are issued C/O by the Organization issuing C/O Form S.

Article 2. Interpretation of Terms

1. The Organization issuing C/O Form S of Vietnam (hereinafter referred to as the Organization issuing C/O in this Circular) includes organizations as prescribed in Appendix 10.

2. The person requesting issuance of C/O Form S (hereinafter referred to as the person requesting issuance of C/O in this Circular) includes the exporter, manufacturer, or representative duly authorized by the exporter or manufacturer.

3. The eCOSys System is the electronic system for managing and issuing certificates of origin of Vietnam located at: http://www.ecosys.gov.vn.

Article 3. Responsibilities of the person requesting issuance of C/O

The person requesting issuance of C/O shall be responsible for:

1. Registering business records with the Organization issuing C/O in accordance with Article 5;

2. Submitting application records for issuance of C/O to the Organization issuing C/O;

3. Proving that exported goods comply with the provisions on origin and facilitating the Organization issuing C/O in verifying the origin of goods;

4. Being liable under the law for the accuracy and truthfulness of declarations related to the request for issuance of C/O, including in cases where the exporter has delegated authority;

5. Reporting promptly to the Organization issuing C/O at the place where the business has requested issuance about C/Os rejected by the importing country due to the issuance of C/Os by Vietnamese issuing Organizations (if any);

6. Facilitating the Organization issuing C/O to conduct on-site inspections of production facilities or places of cultivation, harvesting, and processing of exported goods;

7. Proving the authenticity of the origin of exported goods when requested by the Ministry of Industry and Trade, the Organization issuing C/O, domestic customs authorities, and customs authorities of the importing country.

Article 4. Responsibilities of the Organization issuing C/O

The Organization issuing C/O shall be responsible for:

1. Guiding the person requesting issuance of C/O if requested;

2. Receiving and examining business records and application records for issuance of C/O;

3. Verifying the actual origin of goods when necessary;

4. Issuing C/O when goods meet the provisions on origin of this Circular and the person requesting issuance of C/O complies with the provisions of Article 3;

5. Sending samples of signatures of authorized persons signing C/O and seals of the Organization issuing C/O to the Ministry of Industry and Trade (Department of Import and Export) in accordance with the regulations of the Ministry of Industry and Trade to register with the competent authority of the importing country;

6. Resolving complaints related to the issuance of C/O within its jurisdiction;

7. Re-verifying the origin of exported goods upon request of the competent authority of the importing country;

8. Exchanging relevant information on the issuance of C/O with other issuing Organizations;

9. Implementing reporting systems, fully participating in training courses on origin and other requirements as prescribed by the Ministry of Industry and Trade.

Chapter II
PROCEDURES FOR ISSUANCE OF C/O

Article 5. Registration of Business Files

1. The person requesting for a Certificate of Origin (C/O) shall only be considered for issuance of a C/O at the place where they have registered their business file after completing the business file registration procedures. The business file includes:

a) Registration of the authorized signatory's signature on the Application for Issuance of C/O and the business seal (Annex 9);

b) A copy of the business registration certificate (certified true copy);

c) A copy of the tax code registration certificate (certified true copy);

d) List of production facilities (if any) of the business (Annex 8).

2. Any changes to the business file must be reported to the C/O issuing organization at the place where the business file was previously registered before requesting for a C/O. The business file must still be updated every two (02) years.

3. In cases where it is necessary to obtain a C/O from a different issuing organization due to force majeure or valid reasons, the person requesting for a C/O must submit a document clearly stating the reason for not requesting a C/O from the previous registering organization and must register their business file with the new issuing organization.

Article 6. Application Documents for Issuance of C/O

1. The application documents for issuance of C/O include:

a) An Application for Issuance of C/O (Annex 7) fully and properly filled out as per the instructions in Annex 6;

b) A completed C/O form (Annex 5);

c) A completed customs declaration form. In cases where exported goods do not require a customs declaration form according to the law, there is no need to submit a customs declaration form;

d) Commercial invoice;

đ) Bill of lading or equivalent transport document if the business does not have a bill of lading.

In cases where there is no completed customs declaration form and bill of lading (or equivalent transport document), the person requesting for a C/O may be allowed to provide these documents later but not exceeding fifteen (15) working days from the date of issuance of the C/O.

2. If deemed necessary, the C/O issuing organization may request the person applying for a C/O to provide additional documents related to the exported goods such as: import customs declaration forms for raw materials and components; export permit (if applicable); purchase and sale contracts; value-added tax invoices for purchasing raw materials and components domestically; samples of raw materials and components or samples of exported goods; detailed description of the production process with the Harmonized System (HS) codes of input materials and HS codes of the goods (for the criterion of changing product codes or specific processing criteria); calculation of regional value content (for the regional value content criterion); and other documents to prove the origin of exported goods.

3. For the documents specified in points c, d, đ of Clause 1 and those specified in Clause 2 which are copies with signatures and stamps confirming true copies from the legal representative or authorized person of the business, the original may be requested by the C/O issuing organization for verification if deemed necessary.

4. For businesses participating in eCOSys, the authorized signatory of the Application for Issuance of C/O will enter data through the eCOSys system, electronically sign and automatically transmit to the C/O issuing organization. After reviewing the files on the eCOSys system, if approval for issuance of C/O is given, the C/O issuing organization will notify the business through the eCOSys system to submit complete paper files for verification before issuing the C/O.

Article 7. Acceptance of Application Files for Issuance of C/O

When the applicant submits the application file for issuance of C/O, the receiving officer shall be responsible for accepting the file, checking the file, and notifying the applicant in writing or by other means about one of the following actions:

1. Issuing the C/O in accordance with Article 8;

2. Requesting additional documents in accordance with Article 6;

3. Refusing to issue the C/O if any of the following situations are discovered:

a) The applicant has not completed the registration of the business file as prescribed in Article 5;

b) The application file for issuance of C/O is inaccurate or incomplete as prescribed in Article 6;

c) The applicant has not submitted the debt documents as prescribed in Article 6;

d) The file contains conflicting contents;

đ) Submitting the application file for issuance of C/O at a place other than where the business file was registered;

e) The C/O form is filled out in handwriting, erased, blurred, or printed in multiple ink colors;

g) There is legal evidence proving that the goods do not have the origin as stipulated in this Circular or the applicant has engaged in fraudulent or dishonest behavior in proving the origin of the goods.

Article 8. Issuance of C/O

1. The C/O must be issued within no more than three (03) working days from the date when the applicant submits a complete and valid application file, except in cases provided for in Clause 2 of this Article.

2. The organization issuing the C/O may conduct on-site inspections at the production location if it finds that the inspection based on the file is insufficient grounds for issuing the C/O or if there are signs of violation of laws regarding previously issued C/Os. The inspection officers of the organization issuing the C/O will record the results of the inspection and require the applicant and/or exporter to sign the record. In case the applicant and/or exporter refuse to sign, the inspection officer must clearly record the reason for refusal and sign to confirm the record.

The processing time for issuing the C/O in such cases shall not exceed five (05) working days from the date the applicant submits a complete application file.

3. During the process of reviewing the issuance of C/O, if it is found that the goods do not meet the origin requirements or the application file is missing or invalid, the organization issuing the C/O will notify the applicant according to Clause 2 or Clause 3 of Article 7.

4. The verification period shall not hinder the export shipment or payment of the exporter, except in cases due to the fault of the exporter.

Article 9. Revocation of Issued C/O

The organization issuing the C/O will revoke the issued C/O in the following cases:

1. The exporter or the applicant for issuance of C/O falsifies documents.

2. The issued C/O does not comply with the origin standards.

Chapter III
ORGANIZATION MANAGING THE ISSUANCE OF C/O

Article 10. Authority to Sign C/O

Only those who have completed the procedure for registering their signature samples with the Ministry of Industry and Trade and the Ministry of Industry and Trade of Laos has sent the signature samples of authorized signatories and the stamp samples of Vietnamese organizations issuing C/Os to the Ministry of Finance (General Department of Customs).

Article 11. Lead Agency

The Import-Export Department is the lead agency under the Ministry of Industry and Trade to perform the following tasks:

1. Guide and inspect the issuance of C/O;

2. Perform procedures for registering the signature samples of authorized signatories and the stamp samples of Vietnamese organizations issuing C/Os with the Ministry of Industry and Trade of Laos and transfer the signature samples of authorized signatories and the stamp samples of Lao organizations issuing C/Os to the Ministry of Finance (General Department of Customs);

3. Assist the Minister of Industry and Trade in resolving issues related to the implementation of C/O.

Article 12. Reporting System

1. Organizations issuing C/O must update the issuance data through the eCOSys system daily with all information required to be reported as stipulated in the application for issuance of C/O.

2. Organizations issuing C/O violating the reporting regulations set forth in Clause 1 up to the third time will be suspended from issuing C/O and publicly announced on the Ministry of Industry and Trade's website. After at least six months, the Ministry of Industry and Trade will consider re-authorizing the suspended organization issuing C/O based on its proposal and explanation.

Article 13. Implementation Provisions

1. This Circular takes effect from March 5, 2010.

2. Repeal Decision No. 865/2004/QĐ-BTM dated June 29, 2004 of the Minister of Trade on the issuance of Regulations on the Issuance of Certificate of Origin Model S for Vietnamese Goods to Enjoy Preferential Tariff Treatment under the Agreement on Economic, Cultural, Scientific and Technical Cooperation between the Government of the Socialist Republic of Vietnam and the Government of the Lao People's Democratic Republic; Decision No. 244/2005/QĐ-BTM dated February 17, 2005 of the Minister of Trade on amending the Regulations on the Issuance of Certificate of Origin Model S for Vietnamese Goods to Enjoy Preferential Tariff Treatment under the Agreement on Economic, Cultural, Scientific and Technical Cooperation between the Government of the Socialist Republic of Vietnam and the Government of the Lao People's Democratic Republic issued together with Decision No. 865/2004/QĐ-BTM dated June 29, 2004; Decision No. 06/2007/QĐ-BTM dated February 6, 2007 of the Minister of Trade on amending and supplementing the Regulations on the Issuance of Certificate of Origin Model S for Vietnamese Goods to Enjoy Preferential Tariff Treatment under the Agreement on Economic, Cultural, Scientific and Technical Cooperation between the Government of the Socialist Republic of Vietnam and the Government of the Lao People's Democratic Republic issued together with Decision No. 865/2004/QĐ-BTM dated June 29, 2004./.