Decision No. 0878/1998/QĐ-BTM Issuing the Supplementary Appendix to the Regulation on Issuing ASEAN Origin Certificates of Vietnam

Pursuant to …;

THE MINISTER OF TRADE

Pursuant to Decree No. 95/CP dated December 4, 1993 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Trade;

Pursuant to Decision No. 651/TTg dated October 10, 1995 of the Prime Minister on the establishment of the National Committee for Coordinating Vietnam's Activities in ASEAN;

Pursuant to Circular No. 356/VPUB dated January 22, 1996 of the Government on the designation of the agency issuing certificates of origin for goods under the ASEAN Trade Preferential Scheme Agreement;

At the proposal of the Director of the Multilateral Trade Policy Department,

 

Pursuant to …;

Article 1. Attached herewith are Appendix 5 and Appendix 3 (supplementary) of the Regulations on Issuing ASEAN Certificates of Origin of Vietnam - Form D to enjoy benefits under the "ASEAN Trade Preferential Scheme Agreement" (CEPT).

Article 2. This Decision supplements Decision No. 416/TM-DB dated May 13, 1996 signed by the Minister of Trade and takes effect from the date of signing.

Article 3. The Director of the Multilateral Trade Policy Department, heads of relevant agencies under the Ministry of Trade shall be responsible for implementing and guiding the implementation of this Decision./.

 

 

ANNEX 3

(SUPPLEMENTARY)

(Attached to Decision No. 878/1998/QĐ-BTM
dated July 30, 1998 of the Minister of Trade)

1. Supplementing some points in Article 1 as follows:

- Top right box:

* Group 2:

LA Laos

MY Myanmar

* Group 4: now specifies two characters (instead of one character) representing the name of the Management Board of Export-Import Zones, Industrial Parks and Export Processing Zones issuing Certificate D according to the following regulations:

No. 7 Management Board of Industrial Parks and Export Processing Zones of Hanoi

No. 8 Management Board of Industrial Parks and Export Processing Zones of Hai Phong

No. 9 Management Board of Industrial Parks and Export Processing Zones of Da Nang

No. 10 Management Board of Industrial Parks and Export Processing Zones of Dong Nai

No. 11 Management Board of Industrial Parks and Export Processing Zones of Ho Chi Minh City No. 12 Management Board of Industrial Parks and Export Processing Zones of Vietnam-Singapore

No. 13 Management Board of Industrial Parks and Export Processing Zones of Binh Duong

No. 14 Management Board of Industrial Parks and Export Processing Zones of Ba Ria-Vung Tau

No. 15 Management Board of Industrial Parks and Export Processing Zones of Can Tho

- Box No. 8: supplement

d. In cases where certificates are issued for textile products and textile articles using basic conversion standards, the letters "ST" shall be typed.

2. Other provisions in Article 1; Provisions in Articles 2, 3, and 4 of Appendix 3 remain unchanged (as in the Appendix attached to Decision No. 416/TM-DB dated May 13, 1996 of the Minister of Trade).

 

 

 

 

 

 

 

ANNEX 5

REGULATIONS ON ORIGIN CEPT APPLICABLE TO TEXTILE AND
BASIC TRANSFORMATION PRODUCTS

(Attached to Decision No. 878/1998/QĐ-BTM dated July 30, 1998
of the Minister of Trade)

 

INTRODUCTION

1. Noting that the current percentage criteria in the CEPT origin rules may not facilitate the development of intra-ASEAN trade in textiles and textile products, at its seventh meeting on September 6, 1995, the AFTA Council decided that for determining the origin of textiles and textile products, either the percentage criterion or the basic transformation criterion could be applied by exporting countries. The seventh AFTA Council also decided that a unified ASEAN List (ASEAN Single List) showing the production process for each type of textile and textile product would need to be established to apply the basic transformation criterion.

2. When an exporting country applies the basic transformation criterion, the following origin rules will be applied. These rules will be considered in close connection with the aforementioned unified ASEAN List.

General Rules

Rule 1

The country of origin is the country in which the final basic transformation or the process to create a new product occurs. Therefore, raw materials that undergo a basic transformation in a particular country will be considered a product of that country.

Rule 2

If production creates a product related to two or more countries, the country of origin is the country where the final basic transformation or the process to create a new product takes place.

Rule 3

A textile or textile article will be considered to have undergone a basic transformation or a basic transformation process if it is changed through a manufacturing process or basic production stages to form a distinctly different and new commercial item.

Rule 4

A distinctly different and new commercial item is usually the result of a production process or processing steps if there is a change in:

1. Design or product format;

2. Basic characteristics; or

3. Purpose of use.

Rule 5

To determine whether a specific good has undergone basic processing or manufacturing steps, the following factors should be considered:

5.1. Any change in the physical properties of the material or product produced due to the manufacturing process or processing steps;

5.2. The time related to the manufacturing process or processing steps carried out in the producing country;

5.3. The complexity of the manufacturing process or processing steps carried out in the producing country;

5.4. The level or degree of skill and/or technology required in the production process or processing steps.

 

SPECIFIC RULES FOR TEXTILES AND TEXTILE PRODUCTS

Rule 6

Textile materials or products will be considered products of an ASEAN country when they undergo one of the following processes before being imported into another ASEAN country.

6.1. Chemical substances undergoing polymerization or polycondensation or any chemical or physical process to form a high molecular weight substance;

6.2. Polymer (high molecular weight substance) undergoing spinning or extrusion to form synthetic fiber;

6.3. Spinning fibers into yarn;

6.4. Weaving, knitting, or other methods of forming fabric;

6.5. Cutting fabric into parts and assembling these parts into a finished product;

6.6. If dyeing processes are accompanied by any finishing steps affecting the completion of the dyed product directly;

6.7. If printing processes are accompanied by any finishing steps affecting the completion of the directly printed product.

6.8. Production of a new product through treatments such as impregnation or coating resulting in a product belonging to a different customs tariff heading (four-digit code);

6.9. Embroidery covering at least 5% of the total area of the embroidered product.

Rule 7

A product or material will not be considered an ASEAN-origin product if it only undergoes any of the following processes:

7.1. Individual blending, labeling, pressing, cleaning, dry cleaning, packaging processes, or any combination thereof;

7.2. Lengthwise or widthwise cutting of fabric and hemming, overlocking, or seaming for special commercial purposes;

7.3. Light cutting and/or joining by sewing, looping, bonding, attaching accessories such as collars, ribbons, belts, cords, or ornaments. 7.4. One or more finishing processes for yarn, fabric, or other textile products such as bleaching, waterproofing, shrinking, polishing, or similar processes; or

7.5. Dyeing or printing patterns on fabrics or yarns.

Rule 8

Products (listed below) made from textile materials produced by non-ASEAN countries will be considered ASEAN-origin if they undergo processes as specified in Rule 6 rather than those in Rule 7

8.1. Towels;

8.2. Shawls, bows, nets, and similar products;

8.3. Sleeping bags and quilts;

8.4. Bed sheets, pillowcases, tablecloths, bath towels, and napkins;

8.5. Packaging materials, containers for goods;

8.6. Oil paper, curtains, awning cloth

8.7. Floor coverings, table and chair covers, and similar products.

 

CERTIFICATE OF ORIGIN

Rule 9

The Certificate of Origin issued by the competent authority or its authorized representative in the exporting country to certify the ASEAN origin of textile products.

Rule 10

In cases where textile products are manufactured in two or more countries, only the country that has undergone the final substantial process or transformation needs to provide a Certificate of Origin.

Rule 11

The Certificate of Origin shall be presented together with other necessary documents to the ASEAN importing customs authority.

Rule 12

In case a dispute arises regarding the authenticity of the ASEAN origin of a textile product, such dispute may be resolved through the ASEAN Dispute Settlement Mechanism (DSM). In such a case, Customs may release the disputed products after the importer provides guarantees meeting the requirements of the customs authority.