Circular No. 08/2006/TT-BTM guiding the method for determining the origin of exported and imported goods with non-pure origin according to Decree No. 19/2006/NĐ-CP dated February 20, 2006 of the Government detailing the Law on Trade regarding the origin of goods.

CIRCULAR

Guidelines on the method for determining the origin of exported and imported goods with non-pure origin

pursuant to Decree No. 19/2006/NĐ-CP of the Government detailing the Law on Commerce regarding the origin of goods

dated February 20, 2006

Commercial Law on the origin of goods

Pursuant to Decree No. 29/2004/NĐ-CP of the Government dated January 16, 2004, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Trade;
Pursuant to Decree No. 19/2006/NĐ-CP of the Government dated February 20, 2006, detailing the Law on Commerce regarding the origin of goods;
The Ministry of Trade hereby issues guidelines on the method for determining the origin of exported and imported goods as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

Thông tư này quy định chi tiết khoản 4 Điều 38 Luật Thủy sản số 18/2017/QH14 đã được sửa đổi, bổ sung tại điểm c khoản 21 Điều 14 Luật số 146/2025/QH15.

a) These Circulars provide guidance on the method for determining the origin of exported and imported goods with non-pure origin as prescribed in Article 8 of Decree No. 19/2006/NĐ-CP of the Government dated February 20, 2006, detailing the Law on Commerce regarding the origin of goods;

b) Exported goods eligible for preferential treatment under the Generalized System of Preferences shall apply the rules of origin of the importing country to determine the origin of such goods;

c) Exported and imported goods eligible for preferential tariff or non-tariff treatment under international treaties to which the Socialist Republic of Vietnam is a party shall apply the detailed regulations of Vietnamese law concerning the rules of origin under such international treaties.

2. General Principles

Goods determined to have origin according to these Circulars shall be considered to have origin from the country or territory where the final production process that fundamentally transforms the goods takes place.

II. METHODS FOR DETERMINING THE ORIGIN OF GOODS

1. The criterion "Change in Harmonized System Code"

a) "Change in Harmonized System Code" refers to a change in the Harmonized System code at the four-digit level (04 digits) of the goods compared to the Harmonized System code of the non-originating materials (including imported materials and materials of unknown origin) used to produce the product;

b) The Harmonized System code at the four-digit level (04 digits) of the goods mentioned in Point a, Clause 1, Section II of this Circular is determined based on current regulations.

2. The criterion "Percentage Value Added"

a) "Percentage Value Added" refers to the value added obtained after a country or territory produces, processes, or manufactures non-originating materials from that country or territory, compared to the total value of the goods produced;

b) The percentage value added must be at least 30% of the value of the goods produced and is expressed by the following formula:

c) "Non-originating materials from the producing country or territory" include materials originating from another country or territory and materials of unknown origin;

d) "Cost of Non-Originating Materials from the Producing Country or Territory" is the CIF price of directly imported materials (for materials originating from another country or territory) or the purchase price recorded on the VAT invoice (for materials of unknown origin) used to produce, process, or manufacture the final product;

đ) "FOB Price" is the price stated in the export contract and calculated as follows:

- FOB Price = Factory Price + Other Costs;

- "Other Costs" include costs incurred in loading the goods onto ships for export, including but not limited to domestic transportation costs, warehouse storage costs, port fees, commission fees, service fees, and other related costs during the process of loading the goods onto ships for export;

- "Factory Price" = Production Costs + Profit;

- "Production Costs" = Raw Material Costs + Labor Costs + Allocated Costs;

- "Raw Material Costs" include costs for purchasing raw materials, transportation and insurance costs for those raw materials;

- "Labor Costs" include wages, bonuses, and other benefits related to the production process;

- "Allocated Costs" include:

+ Factory-related costs associated with the production process (factory insurance, factory rental and lease costs, depreciation of factory facilities, maintenance, repairs, taxes, and mortgage interest);

+ Lease payments and interest on factory and equipment;

+ Factory security;

+ Insurance (factory, equipment, and materials used in the production process);

+ Essential items for the production process (energy, electricity, and other essential items directly used in the production process);

+ Research, development, design, and manufacturing;

+ Die casting, die forging, tooling installation, maintenance, and repair of factory and equipment;

+ Patent royalties (related to machines with patents or processes used in the production of goods or the right to produce goods);

+ Testing and inspection of raw materials and products;

+ Factory storage;

+ Waste disposal;

+ Cost factors in calculating the value of raw materials, such as port charges and customs duties on components subject to import duties.

3. The criterion "Production Process of Goods"

"Production Process of Goods" refers to the main production process that creates the fundamental characteristics of the goods.

4. Principles for Determining the Origin of Goods

a) In cases where the goods produced fall within the scope of the List of Goods attached to this Circular, the criteria set out in that List shall be used to determine the origin;

b) In cases where the goods produced do not fall within the scope of the List of Goods attached to this Circular, only the criterion "Change in Harmonized System Code" shall be applied to determine the origin.

III. IMPLEMENTATION PROVISIONS

1. Implementation Provisions

This Circular shall take effect fifteen days from the date of publication in the Official Gazette. Any difficulties encountered during implementation should be promptly reported to the Ministry of Trade for resolution at the address:

Department of Import and Export - Ministry of Trade

21 Ngo Quyen Street, Hanoi

Telephone: 04-8262538

Fax: 04-8264696

Email: [email protected]