Circular No. 07/2019/TT-BCT on the export of textile and garment products to Mexico under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

CIRCULAR

REGULATIONS ON EXPORT OF TEXTILE AND GARMENT PRODUCTS TO MEXICO UNDER THE COMPREHENSIVE AND PROGRESSIVE TRANS-PACIFIC PARTNERSHIP AGREEMENT 

Pursuant to the Law on Foreign Trade Management dated June 12, 2017;

Pursuant to Resolution No. 72/2018/QH14 dated November 12, 2018 of the National Assembly approving the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (hereinafter referred to as the CPTPP) and related documents;

Pursuant to Decree No. 98/2017/NĐ-CP dated August 18, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Pursuant to Decree No. 69/2018/NĐ-CP dated May 15, 2018 of the Government detailing certain provisions of the Law on Foreign Trade Management;

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

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

The Minister of Industry and Trade issues this Circular regulating the export of textile and garment products to Mexico under the CPTPP. 

Chapter I. GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular regulates the quota tariff and monitoring system for the export of textile and garment products to Mexico under the CPTPP.

Article 2. Applicability

This Circular applies to exporters of textile and garment products to Mexico and other organizations and individuals related thereto.

Chapter II. CUSTOMS DUTY PREFERENCES UNDER QUOTA SYSTEM

Article 3. Export quota tariffs for textile and garment products to Mexico

1. The accompanying Circular provides the list of textile and garment products subject to quota customs duty export to Mexico as prescribed by Mexico in Appendix I.

2. The quantity of quota customs duty for exporting textile and garment products to Mexico in 2019 is specified in Appendix I of this Circular.

3. The Ministry of Industry and Trade announces the quota volume of the following year after receiving notification from the competent authority of Mexico.

Article 4. Provisions on preferential tariffs

Textile and garment products exported to Mexico shall enjoy preferential tariffs under the CPTPP if they meet the following conditions:

1. Possess a Certificate of Origin form CPTPP (Certificate of Origin form CPTPP) issued by the competent authority in accordance with Circular No. 03/2019/TT-BCT dated January 22, 2019 of the Ministry of Industry and Trade stipulating the rules of origin of goods under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

2. Possess an Export Certificate (Certificate of Eligibility) issued by the competent authority as provided for in Article 7 of this Circular.

Textile products specified in point b and d Clause 3 of this Article are not required to apply Export Certificates.

3. Fulfilling one of the following rules of origin:

a) Textile and garment products under quota at serial number 01, 02, 03 as specified in Appendix I when using raw materials and components listed in the Shortage Supply List specified in Appendix II of this Circular shall be exempt from import duties in Mexico,

b) Textile and garment products outside the quota at serial number 01, 02, 03 as specified in Appendix I of this Circular which comply with the rules of origin of goods stipulated in the CPTPP Agreement and Circular No. 03/2019/TT-BCT dated January 22, 2019 of the Ministry of Industry and Trade stipulating the Rules of Origin of Goods under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership shall enjoy the import tariff rate of Mexico under the CPTPP.

c) Textile and garment products under quota at serial number 04 as specified in Appendix I of this Circular which comply with the rules of origin of goods stipulated in the CPTPP Agreement and Circular No. 03/2019/TT-BCT dated January 22, 2019 of the Ministry of Industry and Trade stipulating the Rules of Origin of Goods under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership shall enjoy the import tariff rate of Mexico under the CPTPP.

d) Textile and garment products outside the quota at serial number 04 as specified in Appendix I of this Circular which comply with the specific product rules of origin stipulated in Article 5 of this Circular shall enjoy the import tariff rate of Mexico under the CPTPP.

Article 5. Specific Product Rules of Origin

1. Conversion of Chapters (CC), except from subheading 5106 to 5113, from subheading 5204 to 5212, from subheading 5401 to 5402, from sub-subheading 5403.33 to 5403.39, from sub-subheading 5403.42 to sub-subheadings within heading 5408, from subheading 5508 to 5516, or from subheading 6001 to 6006, provided that the product is cut or woven into shape or both and sewn or assembled in the territory of one or more CPTPP Member States.

2. Conversion of Chapters (CC), except from subheading 5106 to 5113, from subheading 5204 to 5212, from subheading 5401 to 5402, from sub-subheading 5403.33 to 5403.39, from sub-subheading 5403.42 to sub-subheadings within heading 5408, from subheading 5508 to 5516, from subheading 5801 to 5802, or from subheading 6001 to 6006, provided that the product is cut or woven into shape or both and sewn or assembled in the territory of one or more CPTPP Member States.

3. For baby towels and diapers or similar items made from synthetic fibers belonging to heading 9619: conversion of headings (CTH), except from subheading 5106 to 5113, from subheading 5204 to 5212, or from subheading 5401 to 5402, from sub-subheading 5403.33 to 5403.39 or 5403.42 to 5403.49, from subheading 5404 to 5408, chapter 55, or subheading 5606, from subheading 5801 to 5802, 5903, or from subheading 6001 to 6006, or from chapter 61 to chapter 62, provided that the product is cut or woven into shape or both and sewn or assembled in the territory of one or more CPTPP Member States.

Chapter III. PRINCIPLES FOR ADMINISTERING QUOTA DUTY ON EXPORTS OF TEXTILE AND GARMENT PRODUCTS TO MEXICO

Article 6. Principles for managing tariff quotas

2. Export Certificates will be automatically issued for shipments that have been exported.

3. The Export Certificate shall be issued through a retroactive quota deduction method on the electronic system based on the principle that traders submitting applications earlier will be issued certificates earlier, while those submitting later will be issued later, until the quota amount is fully allocated. The application receipt time will be automatically updated on the electronic system of the Ministry of Industry and Trade.

4. The Ministry of Industry and Trade will publicly announce the quantity and volume of the tariff quota on its electronic system.

5. Traders desiring to enjoy preferential tariffs as stipulated in this Circular shall be responsible for monitoring the quota duty on textile and garment exports to Mexico via the electronic system to submit registration applications for Export Certificates in accordance with Article 8 of this Circular.

The issuing authority of the Export Certificate of the Ministry of Industry and Trade is the agencies specified in Appendix V of this Circular.

Article 8. Procedures and Formalities for Issuing Export Certificates

1. The application dossier for issuing Export Certificates includes:

a) Application form for Export Certificate (Form No. 01 attached in Appendix III of this Circular);

b) Fully completed Export Certificate (Forms No. 02 and 03 attached in Appendix III of this Circular). The declaration guidelines for the Export Certificate shall be implemented in accordance with Appendix IV attached to this Circular.

The declaration of the Export Certificate according to the declaration guidelines in Appendix IV serves the issuance of the Export Certificate and the supervision of its implementation by relevant state management agencies under the CPTPP.

c) Completed customs declaration for exported goods.

2. Traders must submit the application dossier for issuing Export Certificates according to the prescribed form in Clause 1 of this Article via the Ministry of Industry and Trade's electronic system at the address: http://www.ecosys.gov.vn.

3. Within 08 (eight) working days from the date of receiving complete files, the Export Certificate issuing authority shall announce the result of the file review on the electronic system as follows:

a) In case of meeting the conditions for issuing the Export Certificate, the Ministry of Industry and Trade shall notify the trader via the electronic system and deliver the Export Certificate through postal service or directly according to the trader's registration on the electronic system within 02 (two) working days from the date of accepting the issuance of the Export Certificate.

b) In case of not issuing the Export Certificate, the Ministry of Industry and Trade shall notify and specify the reasons on the electronic system. For files requiring supplementation or amendment, the deadline for submitting supplementary or amended files is 02 (two) working days from the date the trader receives the notification; if exceeding this deadline, the system will automatically cancel the file.

Chapter IV. SUPERVISION OF TEXTILE AND GARMENT EXPORTS TO MEXICO UNDER THE CPTPP

Article 9. Registration of Information

1. Traders exporting textile and garment products to Mexico under the CPTPP (including both quota-bound and non-quota-bound traders) must register their information using Form No. 04 attached in Appendix III of this Circular on the electronic system of the Ministry of Industry and Trade at the address: http://www.ecosys.gov.vn.

2. Traders are responsible for proactively updating their information when there are changes in production and business activities and related information.

Article 10. Recordkeeping of Documents

Traders stipulated in Article 9 of this Circular shall be responsible for retaining the following files:

1. Files related to the export consignment to Mexico such as: application files for Export Certificates, customs files, transport documents, application files for Certificates of Origin, and other related documentation. The retention period for these files shall be a minimum of 5 years from the date of export.

2. Documents and certificates proving the production capacity of the merchant in the last five years: such as machinery and equipment, number of workers, and other relevant documents.

Chapter V. IMPLEMENTATION PROVISIONS

Article 11. Implementation Organization

1. The Department of E-commerce and Digital Economy shall establish the electronic system for issuing Export Certificates and registering merchant information.

2. The agencies issuing Export Certificates as stipulated in Article 7 of this Circular shall organize the issuance of Export Certificates.

Article 12. Effective Date

1. This Circular takes effect from June 20, 2009.

2. During the implementation of this Circular, if any difficulties arise, including difficulties regarding the interpretation of provisions of this Circular that differ from those of the CPTPP and related documents, traders, relevant agencies, organizations, and individuals shall reflect such issues in writing to the Ministry of Industry and Trade for guidance and resolution./.