Circular No. 06/2011/TT-BCT stipulates procedures for issuing Certificates of Origin (C/O) for preferential treatment under Free Trade Agreements, Comprehensive Economic Partnership Agreements, and other agreements with tariff reductions between Vietnam and one or more countries.

CIRCULAR

Regulations on issuing Preferential Certificate of Origin for Goods

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

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 stipulates the procedures for issuing Preferential Certificates of Origin (C/O) in Free Trade Agreements (FTA), Comprehensive Economic Partnership Agreements (CEPA), and other bilateral or multilateral agreements that provide for tariff reductions between Vietnam and one or more countries or territories as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates the procedures for issuing Preferential Certificates of Origin (C/O) in Free Trade Agreements (FTA), Comprehensive Economic Partnership Agreements (CEPA), and other bilateral or multilateral agreements that provide for tariff reductions between Vietnam and one or more countries or territories.

Article 2. Applicability

This Circular applies to organizations authorized by the Ministry of Industry and Trade to issue preferential C/Os, traders, and related organizations and individuals.

Article 3. Explanation of Terms

1. The preferential C/Os referred to in this Circular are those specified in Free Trade Agreements (FTA), Comprehensive Economic Partnership Agreements (CEPA), and other bilateral or multilateral agreements that provide for tariff reductions between Vietnam and one or more countries or territories.

2. The organization issuing preferential C/Os of Vietnam (referred to in this Circular as the issuing organization) are organizations authorized to issue C/Os under relevant Circulars concerning rules of origin.

3. The applicant for issuing preferential C/Os (referred to in this Circular as the applicant) includes exporters, manufacturers, and representatives with valid authorization from exporters or manufacturers.

4. The eCOSys system is the electronic certificate of origin management system of Vietnam available at: http://www.ecosys.gov.vn.

Article 4. Goods eligible for preferential C/Os

Goods eligible for preferential C/Os are goods meeting the provisions on origin of goods in relevant legal documents issued by the Ministry of Industry and Trade.

Article 5. Responsibilities of the applicant for issuing C/Os

The applicant for issuing C/Os shall be responsible for:

1. Registering trader files with the issuing organization;

2. Submitting applications for issuing C/Os to the issuing organization;

3. Proving that exported goods meet the origin requirements and facilitating the issuing organization's verification of the origin of goods;

4. Bearing legal responsibility for the accuracy and truthfulness of declarations and determinations of the origin of goods, including in cases where they are authorized by exporters;

5. Reporting promptly to the issuing organization at the place where the trader applied for issuance about C/Os rejected by importing countries due to non-recognition by Vietnamese issuing organizations (if any);

6. Cooperating and providing conditions for the issuing organization to inspect 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 issuing organization, domestic customs authorities, and customs authorities of importing countries.

Article 6. Responsibilities of the issuing organization

The issuing organization shall be responsible for:

1. Guiding applicants if requested;

2. Receiving and examining trader files and applications for issuing C/Os;

3. Verifying the actual origin of goods when necessary;

4. Issuing C/Os when goods meet the origin requirements set forth in relevant legal documents;

5. Sending samples of signatures of authorized signatories of C/Os and the stamp of the issuing organization to the Ministry of Industry and Trade (Department of Import-Export) according to the regulations of the Ministry of Industry and Trade for registration with the competent authority of the importing country;

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

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

8. Exchanging information related to the issuance of C/Os with other issuing organizations;

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

Chapter II

TRADER FILES AND APPLICATIONS FOR ISSUING C/Os

Article 7. Registration of trader files

1. The applicant for issuing C/Os must register a trader file with the issuing organization when applying for issuance for the first time and will only be considered for issuance of C/Os after registering the trader file.

2. Trader files can be submitted directly or sent by post to the headquarters of the issuing organization.

3. The trader file includes:

a) Registration of the signature sample of the authorized signatory of the application for issuing C/Os and C/Os and the stamp sample of the trader (Annex 1);

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

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

d) A list of production facilities (if any) producing goods for which C/Os are being applied for (Annex 2).

4. Any changes in the trader file must be reported to the issuing organization where it was registered before applying for issuance. In the absence of changes, the trader file must still be updated every two (02) years.

Article 8. Changing the Issuing Authority for C/O

1. In cases where it is necessary to obtain a C/O from an issuing authority different from the previously registered business file due to force majeure or legitimate reasons, the applicant must register a new business file and submit the following documents to the new issuing authority:

a) A letter requesting issuance of a C/O at the new issuing authority;

b) Confirmation letter or printout from the previous issuing authority's eCOSys system stating that the trader has no outstanding documents from previous C/O issuances and has not violated the provisions of this Circular within the last six months prior to the date of the request to change the issuing authority.

2. Legitimate reasons for obtaining a C/O from a different issuing authority than the previously registered business file include:

a) Convenience for the export procedures of the trader;

b) Other appropriate reasons provided by the trader.

Article 9. Application Documents for Requesting C/O

1. For enterprises producing and exporting fixed products that have previously submitted detailed application files as stipulated in Clause 2 of this Article, the application documents for requesting a C/O shall include:

a) A completed and valid C/O application form (Annex 3);

b) A corresponding C/O form that has been fully filled out;

c) A copy of the customs declaration form that has completed customs formalities (stamped with an official copy stamp by the enterprise). In cases where exported goods do not require a customs declaration form according to the law, there is no need to submit a copy of the customs declaration form;

d) A copy of the commercial invoice (stamped with an official copy stamp by the trader);

đ) A copy of the transport document or equivalent transport document (stamped with an official copy stamp by the trader) in cases where the trader does not have a transport document. In cases where a back-to-back C/O is issued for the entire consignment or part of the consignment from a duty-free zone to the domestic market, this document may not be required if the trader actually does not have it;

e) Detailed calculation of regional value content (for the regional value content criterion); or a detailed declaration of HS codes of input materials and HS codes of output products (for the product code conversion criterion or specific processing operation criterion).

In cases where copies of the completed customs declaration form and transport document (or equivalent transport document) are not available, the applicant may be allowed to provide these documents later but not more than 15 working days from the date of issuance of the C/O.

2. For traders requesting a C/O for the first time, or for newly exported products, in addition to the above documents, if necessary, the issuing authority may conduct on-site inspections at the production facility and request the applicant to submit additional documents and certificates in the form of copies stamped with an official copy stamp by the trader:

a) Production process of the goods;

b) Customs declaration form for imported raw materials and auxiliary materials used to produce exported goods (in cases where imported raw materials and auxiliary materials are used in production);

c) Purchase contract or VAT invoice for purchasing raw materials and auxiliary materials domestically (in cases where domestically purchased raw materials and auxiliary materials are used in production);

d) Confirmation from the seller or local government confirmation of the place of production of raw materials and goods (in cases where domestically purchased raw materials and goods are used in production) in cases where the documents specified in point c, clause 2 of this Article are not available;

đ) Export permit (if applicable);

e) Necessary documents and certificates.

3. The HS code declared on the C/O is the HS code of the importing country. If the HS code of the importing country differs from that of the exporting country, the trader must prepare a commitment statement assuming responsibility for the accuracy of the HS code of the importing country declared by the trader.

4. The documents and certificates specified in Clause 2 of this Article are valid for two years from the date the trader submits them to the issuing authority. After this period, the trader must resubmit the detailed application file specified in Clause 2 of this Article to update information on production processes, raw materials used in production, and other relevant information.

5. The trader must retain the documents and certificates of each exported consignment specified in Clauses 1 and 2 of this Article for three years from the date of issuance of the C/O to present to the issuing authority when the latter conducts post-export origin verification of consignments that have been issued a C/O.

6. In cases where the trader exports new products without submitting a detailed application file, the trader must supplement the detailed application file as prescribed in Clause 2 of this Article for the new product.

7. The issuing authority may request the trader to provide original copies of the copies specified in Clauses 1 and 2 of this Article for comparison if there is clear evidence to doubt the authenticity of these documents and must specify these grounds in writing, signed by the authorized person signing the C/O on the request document.

8. The issuing authority may also request the trader to provide original copies of the copies specified in Clauses 1 and 2 of this Article for random comparison.

Chapter III

PROCEDURES FOR REQUESTING AND ISSUANCE OF C/O

Article 10. Submission of Application for Issuance of Certificate of Origin (C/O)

1. A trader submitting an application for issuance of C/O for the first time may submit the trader's file concurrently with the application for issuance of C/O.

2. The trader may submit the application for issuance of C/O directly to the issuing organization's office or send it via postal service to the office of the issuing organization where the trader has registered the trader's file.

3. The trader may choose to apply for issuance of C/O through the internet in accordance with Chapter IV of this Circular.

Article 11. Acceptance of Application for Issuance of Certificate of Origin (C/O)

Upon receipt of the trader's written application, the receiving officer shall be responsible for accepting the application, checking the application, and informing the trader of one of the following contents:

1. Acceptance of issuance of C/O and the time when the trader will receive the C/O;

2. Request for supplementary documents (specifying the documents that need to be supplemented);

3. Request for rechecking documents (specifying the information that needs to be checked if there is specific and credible evidence as the basis for requesting such recheck);

4. Refusal to issue C/O if any of the following situations are discovered:

a) The applicant has not completed the registration of the trader's file;

b) The application for issuance of C/O does not comply with the provisions of Article 9;

c) The applicant has not submitted outstanding documents from the previous issuance of C/O;

d) The applicant has committed fraud regarding origin in the previous issuance of C/O and the case has not been resolved;

đ) The applicant has not provided complete storage files as required by law to prove the origin of goods when the issuing organization conducts post-issuance verification of origin;

e) The application contains conflicting content;

g) The C/O form is filled out in red ink, handwritten, erased, blurred, or printed in different colored inks;

h) There is clear and legal evidence proving that the goods do not have the specified origin under the law.

Article 12. Methods of Notification and Guidance to Traders

Notification and guidance to traders must be carried out as quickly and conveniently as possible.

1. For traders who submit applications for issuance of C/O directly at the issuing organization's office, the issuing organization must notify in writing, specifying the contents that need to be notified to the trader as stipulated in Article 11 and return the notification to the applicant.

2. For traders who submit applications for issuance of C/O via postal service, the issuing organization must notify the trader as quickly as possible through telephone or email, specifying the contents that need to be notified to the trader as stipulated in Article 11. Telephone notifications must be recorded and kept in the file, clearly indicating the date and time of the notification and the signature of the leader of the issuing organization confirming the notification.

Article 13. Time Limit for Issuance of Certificate of Origin (C/O)

1. Except for cases stipulated in Clause 2 and Clause 3 of this Article, the C/O shall be issued within the following time limits:

- Not exceeding 4 working hours from the time the applicant submits a complete and valid application for air export;

- Not exceeding 8 working hours from the time the applicant submits a complete and valid application for export by other means;

- In the case of traders submitting applications via postal service, the time limit for issuance of C/O is 1 working day from the date indicated on the envelope.

2. In the case where a trader violates the origin of goods within six months from the date of handling the violation, the issuing organization shall publicly list the name of the trader at the place of issuance. The time limit for issuance of C/O for these traders is 3 days from the date they submit a complete and valid application. After six months from the date of handling the violation, if the trader does not commit further violations regarding origin, the issuing organization will consider and remove the trader's name from the list of violators. Traders removed from the list of violators will be subject to the time limit for issuance of C/O as stipulated in Clause 1 of this Article.

3. The issuing organization may conduct on-site inspections at the place of production if there is clear evidence showing that the inspection based solely on the file is insufficient to issue the C/O or if there are signs of legal violations in previously issued C/Os. When forming an inspection team at the trader's place of production, the issuing organization must send a letter to the trader requesting the inspection and send a copy to the Ministry of Industry and Trade (Department of Import and Export). The inspection officers of the issuing organization will prepare a record of the inspection results and require the applicant for issuance of C/O and/or exporter to sign the record.

If the applicant for issuance of C/O and/or exporter refuses to sign, the inspection officer must clearly record the reason for refusal and sign the record to confirm.

The processing time for issuance of C/O in this case shall not exceed 5 working days from the date the applicant submits a complete application.

4. During the process of reviewing and signing the issuance of C/O, if it is found that the goods do not meet the origin requirements or the file is not valid, the issuing organization shall notify the applicant for issuance of C/O according to Clause 2 and Clause 3 of Article 11.

5. The verification period shall not hinder the delivery or payment of the exporter, except in cases due to the fault of the exporter.

Article 14. Revocation of issued C/O

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

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

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

3. The trader requests in writing to cancel the issued C/O.

Chapter IV

ONLINE APPLICATION FOR C/O ISSUANCE

Article 15. Registration for online application for C/O issuance

1. A trader who applies for issuance of the C/O through the Internet must equip computers, peripheral devices, internet connection, and other necessary technical equipment according to the regulations of the Ministry of Industry and Trade before submitting the application dossier online.

2. To implement the online submission of the application dossier for C/O issuance, the trader should contact the E-commerce and Information Technology Department at the address provided for detailed guidance:

- No. 25 Ngo Quyen Street, Hoan Kiem District, Hanoi City

- Phone: 04.22205395

- Fax: 04.22205397

- Email: [email protected]

Article 16. Online submission of the application dossier for C/O issuance

1. The trader shall submit the required data through the eCOSys system at the website www.ecosys.gov.vn based on the verified information available in the application dossier. The trader shall electronically sign and transmit these data to the issuing organization.

2. Within one working day from receiving the electronic data transmitted by the trader, the issuing organization shall examine the electronic declaration information of the trader and notify the trader of the result of this examination via the Internet at the website www.ecosys.gov.vn. The notification shall be one of the following two cases:

a) Agree to issue the C/O if the electronic declaration information of the trader complies with current regulations;

b) Request the trader to modify and supplement the information via the Internet. This request for modification and supplementation shall clearly state the specific reasons why the issuing organization does not accept the trader's declaration, and specify the specific requirements for modification so that the trader can modify the declaration on the eCOSys system and retransmit the modified and supplemented data to the issuing organization. The issuing organization will only notify agreement to issue the C/O when the trader's electronic declaration information is valid.

3. After receiving the notification of agreement to issue the C/O from the issuing organization via the Internet, the trader shall submit the paper application dossier for C/O issuance to the issuing organization. The submission may be made either directly or by post.

4. Upon receipt of the dossier, the staff of the issuing organization shall follow the provisions of Articles 11, 12, 13 (Clauses 2, 3, 4) and Article 14.

5. During the review of the paper dossier, if any errors or non-compliance are discovered, the issuing organization will require the trader to make modifications and supplements. The time for issuing the C/O will be calculated from the date of receipt of the fully completed and compliant modified and supplemented documents.

Article 17. Time for Issuance of C/O When the Trader Submits Declarations Through the Internet

1. Application dossiers for C/O issuance submitted through the Internet system shall be processed and resolved prior to those submitted directly or sent by mail to the issuing organization.

2. Application dossiers for C/O issuance submitted through the Internet system shall be issued within the shortest possible time, but in no case later than four working hours from the time the issuing organization receives the fully completed and compliant paper dossier of the trader according to current regulations.

Chapter V

COMPLAINTS, REPORTS

Article 18. Complaints

1. In case of disagreement with the refusal to issue a Certificate of Origin (C/O) or the request for amendment or supplementation made by the Organization issuing the C/O, the applicant for issuance of the C/O has the right to lodge a complaint with that Organization or with the Ministry of Industry and Trade.

2. The procedure for handling complaints shall be carried out in accordance with the Law on Complaints and Petitions.

Article 19. Reporting

1. The applicant for issuance of the C/O has the right to report an official of the Organization issuing the C/O to the Ministry of Industry and Trade when such official commits any of the following acts:

a) Having a corrupt attitude, harassing, causing difficulties, or prolonging the time for issuing the C/O;

b) Requesting additional compensation or suggesting additional compensation outside the fee for issuing the C/O (if applicable), or money for purchasing the C/O form according to the State regulations;

c) Providing incorrect guidance contrary to the relevant preferential origin rules;

d) Other acts violating the law related to the issuance of the C/O.

2. The procedure for handling reports shall be carried out in accordance with the Law on Complaints and Petitions.

Chapter VI

ORGANIZATION OF THE ACTIVITY OF ISSUING THE C/O

Article 20. Office and equipment of the Organization issuing the C/O

1. The office of the Organization issuing the C/O shall be designed as a separate area for officials to work and a waiting area for applicants for issuance of the C/O.

2. The Organization issuing the C/O must have computers connected to the Internet and the eCOSys system, including at least one computer for traders to enter data on-site through the eCOSys system on the electronic information website www.ecosys.gov.vn based on verifiable and available information in the application for issuance of the C/O.

3. The trader's files and applications for issuance of the C/O must be stored annually and monthly. Such storage must ensure scientific organization, clarity, and facilitate future inspection work.

Article 21. Competence and attitude of officials working at the Organization issuing the C/O

1. Officials working at the Organization issuing the C/O must have sufficient professional competence, knowledge of origin rules, and language proficiency to meet the requirements for issuing the C/O and inspecting goods' origin.

2. The attitude of officials working at the Organization issuing the C/O must be enthusiastic, cheerful, and service-oriented towards traders. Guidance provided by officials needs to be detailed, clear, comprehensive, easy to understand, ensuring that applicants for issuance of the C/O can quickly and easily understand and implement the application for issuance of the C/O.

Article 22. Publicly posting the process of issuing the C/O

The Organization issuing the C/O must publicly post the process of issuing the C/O at its headquarters clearly and conveniently for applicants for issuance of the C/O and related organizations and individuals to review and refer to.

Chapter VII

STATE MANAGEMENT OF THE ACTIVITY OF ISSUING THE C/O

Article 23. Authority to sign and issue the C/O

Only Heads of Departments and Deputy Heads of Departments of the Organization issuing the C/O who have completed the registration of their signatures with the Ministry of Industry and Trade, and whose signatures have been registered with the competent authority of the importing country, may have the authority to sign and issue the C/O.

Article 24. State management agency for the activity of issuing the C/O

The Department of Import-Export is the state management agency for the activity of issuing the C/O under the Ministry of Industry and Trade, responsible for the following tasks:

1. Guiding the implementation and inspecting the issuance of the C/O, regularly organizing training courses on origin for Organizations issuing the C/O, officials working at these Organizations, and related traders.

2. Implementing procedures for registering the signatures of authorized persons to sign the C/O and the seals of Vietnamese Organizations issuing the C/O with member countries in corresponding free trade agreements.

3. Printing and distributing the Model C/O for Organizations issuing the C/O.

4. Assisting the Minister of Industry and Trade in resolving issues related to the management, issuance, inspection of the C/O, complaints, reports, disputes over the C/O, and related issues.

Article 25. Reporting System

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

2. Organizations issuing the C/O that have not yet connected to the eCOSys system must connect to the eCOSys system with the Department of E-commerce and Information Technology under the Ministry of Industry and Trade within two months from the date of authorization to issue the C/O. During the period before completing the connection to the eCOSys system, Organizations issuing the C/O must implement a monthly reporting system in writing and via email (sent in Excel format). Reports must be sent to the Ministry of Industry and Trade no later than the fifth day of the month following the date of dispatch, calculated by postmark or the date of sending the email according to the model specified in Appendix 4.

3. Organizations issuing the C/O that violate the reporting system provisions set forth in Clause 1 and Clause 2 of this Article for the third time will be suspended from issuing the C/O and publicly announced on the Ministry of Industry and Trade's electronic information website at www.moit.gov.vn. After at least six months, the Ministry of Industry and Trade will consider re-authorizing the suspended Organization issuing the C/O based on the proposal and explanation of that Organization.

Article 26. Handling Violations

Traders who violate during the submission of the application for issuance of the C/O will be handled in accordance with the law.

Article 27. Implementation Provisions

1. This Circular takes effect from May 4, 2011.

2. The contents regarding the procedures for issuing the C/O in this Circular replace the corresponding contents regarding the procedures for issuing the C/O in related circulars on origin.

3. This Circular shall be publicly posted on:

a) The Ministry of Industry and Trade's electronic information website at www.moit.gov.vn;

b) The Ministry of Industry and Trade's electronic information website for online application for issuance of the C/O at www.ecosys.gov.vn; and

c) Publicly posted at the headquarters of Organizations issuing the C/O.

4. Organizations issuing the C/O are responsible for providing specific and clear explanations of the provisions in this Circular to traders.

5. In case of any difficulties during implementation, traders, Organizations issuing the C/O, and related organizations and individuals should contact the following address for resolution: Ministry of Industry and Trade

Address: No. 54 Hai Ba Trung Street, Hoan Kiem District, Hanoi City

Telephone: 04.22205444

Email: [email protected]./.