Circular No. 04/2024/TT-BCT amends and supplements certain provisions of Circular No. 20/2014/TT-BCT dated June 25, 2014, issued by the Minister of Industry and Trade on implementing Rules of Origin under the ASEAN-Korea Free Trade Agreement.

CIRCULAR

1. Amend and supplement Point d of Clause 2 of Article 24 as follows: detailed information in the system, 1. NATIONAL UNIVERSITIES ARE PUBLIC HIGHER EDUCATION INSTITUTIONS MANAGED BY THE MINISTRY OF EDUCATION AND TRAINING, HAVE LEGAL PERSONALITY, SEPARATE ACCOUNTS, AND USE STAMPS WITH THE NATIONAL EMBLEM. of Circular No. 20/2014/TT-BCT

dated June 25, 2014 of Article 1. Amending and supplementing some articles of Circular No. 21/2023/TT-BTTTT dated December 31, 2023 of the Ministry of Information and Communications on functions and technical features of the Administrative Procedure Handling Information System at the ministerial and provincial levels (hereinafter referred to as Circular No. 21/2023/TT-BTTTT) as follows: the Ministry of Industry and Trade prescribing the implementation

 of Rules of Origin in the Agreement on theFree Trade organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.Area ASEAN - Korea

Pursuant to Decree No. 96/2022/NĐ-CP dated November 29, 2022 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Pursuant to Decree No. 31/2018/NĐ-CP dated March 8, 2018 of the Government detailing the Law on Foreign Trade Management regarding origin of goods;

TImplementing the Third Protocol Amending the Goods Trade Agreement under the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and Korea signed alternately on November 22, 2015 in Kuala Lumpur, Malaysia within the 27th ASEAN Summit, approved by the Government at Resolution No. 150/NQ-CP dated September 22, 2023;

At the proposal of the Director of the Department of Import-Export;

The Minister of Industry and Trade issues this Circular amending and supplementing some articles of Circular No. 20/2014/TT-BCT dated June 25, 2014 of the Minister of the Ministry of Industry and Trade prescribing the implementation of Rules of Origin in the Agreement on the Free Trade Area ASEAN - KoreaArticle 1. Amending and supplementing some articles of the Appendices issued together with Circular No. 20/2014/TT-BCT dated June 25, 2014 of the Minister of the Ministry of Industry and Trade prescribing the implementation of Rules of Origin in the Agreement on the Free Trade Area ASEAN - Korea1. Amending and supplementing Article 4 of Appendix I (Rules of Origin) issued together with Circular No. 20/2014/TT-BCT as follows:

"Article 4. Non-pure origin goods

1. To apply point b Clause 1 Article 2, goods if not falling under Article 5 prescribed in this Appendix, shall be considered as having origin if they achieve a Regional Value Content (hereinafter referred to as RVC) of at least 40% calculated based on the FOB value, or undergo a process of changing the Harmonized System code at the 4-digit level (hereinafter referred to as CT4).

2. The formula for calculating RVC is based on one of the following two methods:

a) Direct formula:

RVC = VOM / FOB * 100%

Where "VOM" is the value of originating materials, including the value of originating materials, direct labor costs, direct allocation costs, transportation costs, and profit.

b) Indirect formula:

RVC = (FOB – VNM) / FOB * 100%

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Where "VNM" is the value of non-originating or undetermined origin input materials, which may be:

b1) CIF price at the time of importation of raw materials, parts, or goods; or

b2) The first purchase price of non-originating or undetermined origin raw materials, parts, or goods at the territory of the exporting Member State where processing or manufacturing operations take place.

3. Exporters or producers of the exporting Member State may flexibly apply either the direct RVC calculation formula or the indirect RVC calculation formula as prescribed in Clause 2 of this Article. The selected RVC calculation formula must be consistently applied throughout one fiscal year of the exporter or producer. In cases where the importing Member State conducts verification of the origin of goods, any verification of the RVC criterion must be carried out based on the RVC calculation formula used by the exporter or producer of the exporting Member State."

2. Amending and supplementing Clause 1 Article 5 of Appendix V (Procedure for Issuance and Verification of CO) issued together with Circular No. 20/2014/TT-BCT as follows:

"1. COs in accordance with the provisions shall meet the following conditions:

a) In paper form printed with signature and stamp issued in manual form or electronically signed and stamped by the issuing organizations of the exporting Member State;

b) On A4 size paper;

c) Compliant with the model specified in Appendix VI-A issued together with Circular No. 20/2014/TT-BCT and called the AK model CO;

d) Filled in English."

Article 2. Amend the name "ASEAN-Korea Free Trade Agreement" in Circular No. 20/2014/TT-BCT

Amend the name "ASEAN-Korea Free Trade Agreement" to "ASEAN-Korea Comprehensive Economic Partnership Agreement's Goods Trade Agreement".

Article 3. Implementation Provisions

This Circular takes effect from May 11, 2024.