Decision No. 1420/2004/QĐ-BTM On issuing the Rules for granting ASEAN Origin Certificates - Form D to enjoy preferential treatment under the "Agreement on the Framework for the ASEAN Trade in Goods Agreement (ATIGA)"

DECISION OF THE MINISTER OF TRADE

Regarding the issuance of the Vietnam ASEAN Certificate of Origin Model D to enjoy preferential treatment under the "ASEAN Framework Agreement on Comprehensive Economic Cooperation (CEPT)"

Pursuant to Decree No. 29/2004/NĐ-CP dated January 16, 2004 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Trade;

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

DECISION:

Article 1: This Decision promulgates the Vietnam ASEAN Certificate of Origin Model D to enjoy preferential treatment under the "ASEAN Framework Agreement on Comprehensive Economic Cooperation (CEPT)."

Article 2: This Decision shall take effect fifteen days from the date of publication in the Official Gazette.

Article 3: This Decision replaces Decisions of the Minister of Trade No. 416/TM-DB dated May 13, 1996, promulgating the Vietnam ASEAN Certificate of Origin Model D and subsequent amendments and supplements No. 0878/1998/QD-BTM dated July 30, 1998, No. 1000/1998/QD-BTM dated September 3, 1998, and No. 0492/2000/QD-BTM dated December 25, 2000.

Article 4: The Director of the Office, Heads of the Cadre and Civil Servants Department, Heads of the Import-Export Department, and Heads of relevant agencies under the Ministry of Trade are responsible for implementing and guiding the implementation of this Decision.

 

REGULATIONS

ISSUING VIETNAM ASEAN CERTIFICATE OF ORIGIN MODEL D TO ENJOY PREFERENTIAL TREATMENT UNDER "THE FRAMEWORK AGREEMENT ON COMPREHENSIVE ECONOMIC COOPERATION
(CEPT) FOR THE ESTABLISHMENT OF THE ASEAN FREE TRADE AREA (AFTA)"

(Issued together with Decision No. 1420/2004/QD-BTM
dated October 4, 2004, of the Minister of Trade)

 

1. These regulations guide the screening of HIV testing for blood transfusion, blood product transfusion, and the implementation of assisted reproductive techniques and organ transplantation at state-owned, private, and public health facilities (hereinafter referred to as health facilities).

Article 1: - Methods using measuring devices: The minimum number of sampled calls required for each of the above indicators is 1,500 calls. Determination can be made using one or both of the following methods, or a combination thereof:

The Vietnam ASEAN Certificate of Origin Model D (hereinafter referred to as C/O Model D) is a certificate of origin issued by the regional import-export management department of the Ministry of Trade and other agencies authorized by the Ministry of Trade to Vietnamese goods to enjoy preferential treatment under the "ASEAN Framework Agreement on Comprehensive Economic Cooperation (CEPT) for the establishment of the ASEAN Free Trade Area (AFTA)" (hereinafter referred to as the CEPT Agreement).

The CEPT Agreement is an international agreement between ASEAN member countries that Vietnam signed and joined in Bangkok, Thailand on December 15, 1995, and became effective for implementation on January 1, 1996.

Article 2: Goods eligible for C/O Model D

Goods eligible for C/O Model D are those meeting all conditions regarding origin as stipulated in the CEPT Agreement (as reflected in Appendix 1 of this regulation) and included in the list of goods promulgated together with the Government Decree on goods under the ASEAN Framework Agreement on Comprehensive Economic Cooperation (CEPT).

Article 3: Responsibilities of the applicant for C/O Model D

Every organization and trader (hereinafter referred to as the applicant for C/O Model D) has the responsibility to facilitate the regional import-export management departments and organizations inspecting goods in determining the accurate origin of their goods.

The applicant for C/O Model D must bear full legal responsibility for the truthfulness of the details declared in C/O Model D.

II. PROCEDURES FOR ISSUING C/O MODEL D:

Article 4: Quantity of one set of C/O Model D

A set of C/O Model D consists of one (01) original and three (03) copies.

a. Certificate of Origin Form D (according to the common form issued by the Ministry of Trade) fully completed (as per Article 1 of Appendix 3)

b. Certificate of Origin Inspection (if required) must comply with the origin regulations stipulated in Appendix 1 of this regulation and be issued by a commodity inspection company (as specified in Appendix 4)

c. Customs declaration form already settled.

d. Commercial invoice:

e. Bill of lading

In cases where there is no completed customs declaration form (but must have a customs declaration form signed by the customs officer receiving the file) and bill of lading or delivery receipt, the applicant for C/O Model D may be allowed to defer these documents but must submit a written commitment to the issuing authority to provide these documents later. The maximum deferral period for these documents is fifteen (15) working days from the date of issuance of C/O Model D.

The three types of papers (c, d, e) are certified copies bearing the signature and stamp of confirmation of the head of the unit (if it is an organization) or the signature and stamp of a notary public (if it is an individual), while carrying the originals for comparison.

Every three months, enterprises must report to the issuing authority in their operating area about consignments of goods refused preferential tariff rates under the CEPT despite having been issued C/O Model D.

Article 6: Inspection of goods issued C/O Model D.

In necessary cases, the issuing authority may:

a. Request the applicant for C/O Model D to provide additional documents necessary to accurately determine the origin of the goods according to the standards of the CEPT Agreement:

b. Conduct inspections at the place of production:

c. Re-inspect cases that have already been issued C/O Model D

Article 7: Time limit for issuing C/O Model D

The issuing authority is responsible for issuing C/O Model D within the following time limits, counted from the date of receipt of complete and valid application files:

a. Two working hours for general cases:

b. Four working hours for cases specified in Clause a of Article 6:

c. For cases specified in Clause b of Article 6, the time limit may be extended but not exceeding seven (7) working days.

Article 8: C/O Model D issued retrospectively

In cases of errors by the C/O Model D issuing staff or force majeure of the applicant for C/O Model D, the issuing authority will issue C/O Model D for goods delivered within one year from the date of delivery, and the C/O Model D issued in such cases must clearly state "issued retrospectively" in English: "Issued retroactively."

Article 9: Reissuing C/O Model D

In cases where C/O Model D is stolen, lost, or damaged, the issuing authority may reissue an official copy of C/O Model D and the third copy within fifteen days from the date of receipt of the request for reissuance accompanied by the fourth copy (Quadruplicate) of the first issuance, with the phrase "certified true copy" in English written in box number 12: "Certified true copy."

Article 10: Refusal to issue and refusal to reissue C/O Model D

In cases where goods do not meet the criteria or cannot be accurately determined according to the standards of the CEPT Agreement, or if the reissuance application does not include the fourth copy of the initial issuance, the issuing authority has the right to refuse to issue C/O Model D and must notify the applicant in writing of the reasons within the time limits stipulated in Articles 7 and 9.

Article 11: Other issues

Issues not covered in Articles 4 to 10 shall be resolved according to the ASEAN regulations in Appendix 2.

 

III. Management Organization for Issuing Certificate of Origin Form D

Article 12: Signatory of Certificate of Origin Form D

Only those persons authorized by the Minister of Trade and registered with their signatures have the right to issue Certificate of Origin Form D.

Article 13: Issuing Authority of Certificate of Origin Form D

The issuance of Certificate of Origin Form D is conducted by the authorities authorized by the Ministry of Trade as stipulated in Article 1 of Appendix 3 of this Decision. This list may be adjusted and supplemented by the Ministry of Trade.

Merchants have the right to choose the place to apply for Certificate of Origin Form D to suit their production and business conditions. Specifically, industrial zone management boards and export processing zone management boards can only issue Certificate of Origin Form D for enterprises within their jurisdiction.

Article 14: Responsibilities of the Issuing Authority of Certificate of Origin Form D

The issuing authorities of Certificate of Origin Form D are responsible for:

- Guiding the procedures for applying for Certificate of Origin Form D;

- Checking the application files for Certificate of Origin Form D;

- Approving and issuing Certificate of Origin Form D;

- Storing the application files for Certificate of Origin Form D;

- Monitoring and inspecting the use of Certificate of Origin Form D;

- Reporting issues related to the issuance and use of Certificate of Origin Form D;

IV. SETTLEMENT OF COMPLAINTS AND HANDLING OF VIOLATIONS

Article 15: Complaint Resolution Authority

In cases where the issuance of Certificate of Origin Form D is refused or not issued within the time limit specified in Article 7 and Article 9, the applicant has the right to file a complaint with the Minister of Trade within fifteen days from the date of receipt of the refusal decision or the last day of the issuance period under Article 7. The Minister of Trade is responsible for resolving the complaint within five days from the date of receipt of the complaint. If dissatisfied with the decision of the Minister of Trade, the matter may be brought before the Court in accordance with the provisions of the Law.

Article 16: Revocation of Certificate of Origin Form D

After issuing Certificate of Origin Form D, the issuing authority of Certificate of Origin Form D is responsible for continuing to monitor and supervise the use of Certificate of Origin Form D by the consignors together with relevant authorities. In cases where there is sufficient reason to determine that there is a violation of the rules on the issuance and use of Certificate of Origin Form D, the issuing authority of Certificate of Origin Form D has the right to revoke the issued Certificate of Origin Form D.

Article 17: Lead Agency for Complaint Resolution

The Import-Export Department assists the Minister of Trade in handling complaints from foreign and/or domestic sources. The issuing authority of Certificate of Origin Form D involved in the complaint must explain to the Import-Export Department and/or the Minister of Trade.

Article 18: Administrative Sanctions for Violations

Any fraudulent acts during the issuance and use of Certificate of Origin Form D will be subject to administrative sanctions or prosecution under the Law, depending on the severity of the offense.

 

 

ANNEX 1

RULES ON ORIGIN FOR THE CEPT AGREEMENT

 

When determining the origin of goods eligible for the CEPT Program under the CEPT Agreement, the following rules shall be applied:

 

RULE 1: DETERMINATION OF THE ORIGIN OF PRODUCTS

 

Goods falling within the scope of the CEPT Agreement imported into one Member State directly transported from another Member State as defined in Rule 5 of these Rules shall be eligible for preferential treatment if they meet the origin requirements set out in one of the following conditions:

a. Goods with pure origin (produced or harvested entirely in the exporting Member State) as provided for in Rule 2;

b. Goods with non-pure origin (not produced or harvested entirely in the exporting Member State), provided that such goods satisfy the conditions of Rule 3 or Rule 4.

 

RULE 2: PURE ORIGIN

 

Under Rule 1, the following goods shall be considered as having pure origin:

a. Minerals extracted from the ground, surface water, or seabed of that country;

b. Agricultural products harvested in that country;

c. Animals born and raised in that country;

d. Products derived from animals mentioned in point (c) above;

e. Products obtained through hunting or fishing in that country;

f. Products obtained through fishing at sea and seafood caught by vessels of that country from the sea;

g. Products processed or manufactured on board vessels of that country from products mentioned in point (f) above;

h. Used materials collected in that country, solely for recycling purposes;

i. Industrial waste from activities in that country; and

j. Goods produced from products mentioned in points (a) to (i).

 

 

RULE 3: NON-PURE ORIGIN

 

a. (i) Goods shall be considered as originating from ASEAN Member States if they contain at least 40% of the value of inputs originating from any ASEAN Member State.

(ii) Raw materials purchased domestically by manufacturers who have been licensed to supply them, in compliance with the laws of that country, shall be deemed to meet the ASEAN origin requirement; raw materials purchased from other sources must be checked for the percentage content to determine origin.

(iii) Pursuant to sub-point (i) above, for the purpose of implementing the provisions of Rule 1(b), products manufactured or processed using total value of inputs not originating from ASEAN Member States or of undetermined origin shall not exceed 60% of the FOB value of the product being produced or processed, and the final production process must be carried out on the territory of the exporting Member State.

b. The value of non-ASEAN origin inputs shall be:

(i) The CIF price of the goods at the time of importation;

(ii) The initial valuation of the product of undetermined origin at the territory of the Member State where the manufacturing or processing takes place.

The formula for calculating the 40% ASEAN content is as follows:

 

 

Value of inputs imported from non-ASEAN Member States	+	Value of inputs of undetermined origin
FOB Price

 

 

c. The method for calculating the domestic/ASEAN content ratio is prescribed in Appendix 6. The principles for determining the cost of establishing ASEAN origin and guidelines on the methodology for calculating costs in Appendix 7 must be strictly followed.

 

RULE 4: AGGREGATION RULE

 

Products that have met the origin requirements set out in Rule 1 and are used as inputs in a finished product eligible for preferential treatment in other Member States shall be considered as products originating in the Member State where the final manufacturing or processing takes place, provided that the total ASEAN content of the final product does not fall below 40%.

 

RULE 5: DIRECT TRANSPORTATION

 

The following cases shall be considered as direct transport from an exporting member country to an importing member country:

a. If the goods are transported through the territory of any ASEAN country;

b. If the goods are transported without passing through the territory of any non-ASEAN country;

c. Goods are transported through one or more intermediate countries that are not members of ASEAN with or without transshipment or temporary storage in those countries, provided that:

(i) Transit is necessary for geographical reasons or due to requirements directly related to the transportation of the goods;

(ii) The goods are not sold or used in the transit countries; and

(iii) No processing other than unloading and reloading or work necessary to keep the goods in good condition is carried out.

 

RULE 6: PACKAGING TREATMENT

 

a. For the purpose of determining customs duties, a member country will consider the goods separately from the packaging. In the case of imported goods transferred from another member country, the member country may also consider the origin of the packaging separately.

b. Where the above paragraph (a) does not apply, the packaging will be considered together with the goods. Packaging used due to transportation or storage requirements shall be deemed to have ASEAN origin.

 

RULE 7: D FORM CERTIFICATE OF ORIGIN

 

Goods shall benefit from the Common Effective Preferential Tariff (CEPT) if they are accompanied by a D Form Certificate of Origin issued by an authorized government agency of an exporting member country. Member countries must notify each other of the issuing authority for the D Form Certificate of Origin and the procedures for issuing the D Form Certificate of Origin must comply with the procedures for issuing the D Form Certificate of Origin as defined and approved by the Senior Economic Officials Meeting (SEOM).

 

RULE 8: REVIEW

 

This regulation may be reviewed at any time upon request of a member country and may be amended upon approval by the Council of Ministers.

 

 

 

ANNEX 2

PROCEDURES FOR ISSUING THE D FORM CERTIFICATE OF ORIGIN
UNDER THE ORIGIN REGIME OF THE COMMON EFFECTIVE PREFERENTIAL TARIFF PROGRAMME
ASEAN (CEPT)

 

To implement the origin regime of the CEPT programme, the procedures for issuing and verifying the D Form Certificate of Origin and related administrative issues are stipulated as follows:

 

A. AUTHORIZED ISSUING AUTHORITY FOR THE D FORM CERTIFICATE OF ORIGIN

 

Article 1:

The D Form Certificate of Origin is issued by an authorized government agency of an exporting member country.

 

Article 2:

(a) A member country shall notify all other member countries of the name and address of the authorized government agency issuing the D Form Certificate of Origin and provide samples of signatures and official stamps used by that agency.

(b) The information and samples mentioned above shall be compiled into ten (10) sets and sent to the ASEAN Secretariat for distribution to other member countries. Any changes to the name, address, as well as signatures and official stamps must be immediately notified in the same manner.

(c) The signature and stamp samples mentioned above shall be compiled and updated annually. Any D Form Certificate of Origin issued by a person whose name is not on this list will not be accepted by the importing country.

 

Article 3:

To verify eligibility for preferential treatment, the authorized government agency issuing the D Form Certificate of Origin has the right to request presentation of any necessary documentation and to conduct any inspection deemed necessary. If this right is not permitted under the current national laws, it will be included as a clause in the application form referred to in Articles 4 and 5 below.

 

B. APPLICATION FOR THE D FORM CERTIFICATE OF ORIGIN

 

Article 4:

(a) The manufacturer and/or exporter of products eligible for benefits shall submit an application to the competent government agency for origin verification before exportation. The results of such pre-export verification, which can be reviewed periodically or at any time deemed necessary, shall be accepted as evidence supporting the determination of the origin of goods to be exported later. Pre-export inspection of goods may not be required for goods (due to their nature) where origin can be easily determined.

(b) For domestically purchased raw materials, the final manufacturer's declaration before exportation serves as the basis for issuing the D Form Certificate of Origin.

 

Article 5:

When exporting goods eligible for benefits, the exporter or authorized representative must submit an application for the D Form Certificate of Origin along with necessary documents proving that the goods to be exported meet the criteria for issuance of the D Form Certificate of Origin.

 

C. PRE-EXPORT INSPECTION OF GOODS

 

Article 6:

The authorized government agency issuing the D Form Certificate of Origin shall, within its maximum capacity and authority, conduct appropriate inspections in each case to ensure that:

(a) The application and D Form Certificate of Origin are correctly and fully completed and signed by an authorized person;

(b) The origin of the goods complies with the origin regime;

(c) Other declarations in the D Form Certificate of Origin are consistent with accompanying documents;

(d) The specifications, quantity, and weight of the goods, item codes, number of items, number and type of packages declared are consistent with the exported goods;

(e) Multiple items may be declared on a single D Form Certificate of Origin, provided that each item meets its own criteria.

 

D. ISSUANCE OF THE D FORM CERTIFICATE OF ORIGIN

 

Article 7:

(a) The D Form Certificate of Origin must be issued according to the model in Appendix "A" on ISO A4 size paper and must be in English:

(b) The D Form Certificate of Origin set consists of one original and three carbon copies (carbon copy) in the following colors:

- Original (Original): Light violet

- Second Copy (Duplicate): Orange

- Third Copy (Triplicate): Orange

- Fourth Copy (Quadruplicate): Orange

(c) Each set of D Form Certificate of Origin must bear a unique reference number for each issuing location or agency:

(d) The original and third copy are sent by the exporter to the importer for submission to the customs authority at the port or place of import. The second copy will be retained by the authorized issuing authority in the exporting member country. The fourth copy will be kept by the exporter. After the importation of goods, the third copy will be appropriately marked in box 4 and returned to the authorized issuing authority within a suitable period.

(e) In case the Certificate of Origin Model D is rejected by the customs authority of the importing country, the original and the third copy of this Certificate of Origin Model D shall be marked in box number 4 and returned to the issuing country within a maximum period of two (2) months, while the reasons for rejection must be communicated to the issuing authority of the Certificate of Origin Model D.

(f) If the Certificate of Origin Model D is not accepted by the importing country as stated in paragraph (e) above, the importing country will request confirmation from the issuing country to re-accept the Certificate of Origin Model D. The confirmation from the issuing country of the Certificate of Origin Model D must be detailed and specific to explain clearly the reasons for rejection notified by the importing country.

 

Article 8:

(a) To comply with the provisions of Rule 3 and Rule 4 of the origin regime, the Certificate of Origin Model D issued by the exporting member country as the final member and must clearly state the applicable rules and the percentage of ASEAN Content Value in box number 8.

(b) To comply with the provisions of Rule 5 and Rule 6 of the origin regime for textile and apparel products, the Certificate of Origin Model D issued by the exporting member country as the final member must clearly indicate in box number 8 whether this origin regime is met.

 

Article 9:

Alterations such as erasing, overwriting on the Certificate of Origin Model D are not permitted. Any changes must be marked and the error location specified. All such changes must be approved by the authorized person signing the Certificate of Origin Model D. Blank spaces should be crossed out to prevent future entries.

 

Article 10:

(a) The Certificate of Origin Model D shall be issued by the competent authority of the exporting member country at the time of exportation or shortly thereafter if the goods exported originate from that member country according to the provisions of the origin regime.

(b) The issuing authority of a third ASEAN member country may issue a back-to-back Certificate of Origin Model D provided that a valid original Certificate of Origin Model D accompanies it, if the exporter requests the certificate when the goods are leaving the port. For Thailand and Malaysia, additional supporting documents may be required.

(c) In exceptional cases where the Certificate of Origin Model D is not issued at the time of exportation or shortly thereafter due to unintentional errors or other justifiable reasons, the Certificate of Origin Model D may be issued later, effective from the date of exportation but not exceeding one year from the date of shipment, and must be marked "ISSUED RETROACTIVELY".

 

Article 11

In case the Certificate of Origin Model D is stolen, lost, or damaged, the exporter may submit a request to the competent authority of the government, which is the same issuing authority, for an authentic copy (true copy certification) of the original and the third copy based on the export documents held by that authority, and must clearly state the acceptance by writing "CERTIFIED TRUE COPY" in box number 12. This certified copy must be issued not more than one year from the date of issuance of the original Certificate of Origin Model D, subject to the condition that the exporter must provide the fourth copy to the relevant Certificate of Origin Model D issuing authority.

 

E. PROCEDURES FOR PRESENTING THE CERTIFICATE OF ORIGIN MODEL D

 

Article 12:

The original Certificate of Origin Model D together with the third copy shall be submitted to the customs authority at the time of import procedures.

 

Article 13:

The deadline for presenting the Certificate of Origin Model D is as follows:

(a) The Certificate of Origin Model D must be presented to the customs authority of the importing member country within four months from the date signed by the competent authority of the exporting member country.

(b) In the case where goods pass through the territory of one or more non-ASEAN countries under Article 5(c) of the Origin Regime, the deadline for presenting the Certificate of Origin Model D as stipulated in paragraph (a) above is extended to six months.

(c) In the event that the Certificate of Origin Model D is submitted to the competent authority of the importing member country after the prescribed deadline, the Certificate of Origin Model D will still be accepted if the failure to comply with the deadline is due to force majeure or other justifiable reasons beyond the control of the exporter; and

(d) In all cases, the competent authority of the importing member country may accept the Certificate of Origin Model D provided that the goods have been imported before the expiration of the Certificate of Origin Model D mentioned above.

 

Article 14:

In the case of goods originating from an exporting member country with a value not exceeding 200 US$ FOB, the issuance of the Certificate of Origin Model D will be waived and the declaration by the exporter stating that the goods under consideration originate from an exporting member country will be accepted. Goods sent via postal services with a value not exceeding 200 US$ FOB will be treated similarly.

 

Article 15:

(a) Minor discrepancies between declarations in the Certificate of Origin Model D and declarations in documents submitted to the customs authority of the importing member country for import procedures will not invalidate the Certificate of Origin Model D if the actual declarations are consistent with the goods delivered.

(b) When multiple items are declared on a single Certificate of Origin Model D, if one item is not compliant, the other items will still benefit from preferential treatment. Clause 17(1)(c) will apply to the non-compliant item.

 

Article 16:

a) All records related to the application for the Certificate of Origin Model D shall be retained by the issuing authority for two (2) years from the date of issuance.

b) Information regarding the authenticity of the Certificate of Origin Model D will be provided upon request of the importing member country and confirmed by the competent authority.

c) All information exchanged between member countries is confidential and shall only be used for matters related to the certification of the origin of goods.

 

Article 17:

1. The importing member country may request a retroactive review randomly and/or whenever they suspect the authenticity of the documents or the accuracy of the information related to the true origin of the product or a particular part of the product under consideration. The issuing authority shall conduct a cost declaration review based on the actual costs and prices of the manufacturer/exporter within six (6) months from the date of export.

a) A request for a retroactive review shall be accompanied by the relevant Certificate of Origin Model D and shall specify the reasons and any additional information suggesting that certain aspects of the Certificate of Origin Model D may not be accurate, except in the case of random reviews.

b) The issuing authority of Certificate of Origin Form D must respond promptly within three (3) months from the date of receipt of the request for verification;

c) The customs authority of the importing member country may temporarily withhold benefits pending the outcome of the verification process. However, this authority may still allow the importer to import goods under necessary administrative procedures provided that the goods are not prohibited or restricted and there is no suspicion of fraud;

d) The verification process, including the examination of whether the product complies with the origin requirements, shall be completed within six (6) months. Pending the verification results, Article 17 (1)(c) shall apply;

2. If the importing country is dissatisfied with the verification result, it may, exceptionally, request the dispatch of verification teams to the exporting country;

a) Pursuant to Article 17 (2), prior to conducting verification, the importing country will:

i) Notify in writing about the verification to:

a) The exporter/manufacturer regarding the location to be verified

b) The competent authority of the exporting country regarding the location to be verified

c) The customs authority of the importing country regarding the verification location

d) The importer of the product to be verified

ii) The notification referred to in point 2(a)(i) above shall include the following information:

a) Name of the customs unit issuing the notification

b) Name of the exporter/manufacturer and the location to be verified

c) Date of the planned verification

d) Content of the planned verification including the items to be verified

e) Name of the officer assigned to conduct the verification

iii) There shall be a written agreement from the exporter/manufacturer regarding the locations for verification

a) In case the acceptance letter from the exporter/manufacturer is not sent to the competent authority of the issuing country within thirty (30) days from the date of receipt of the notification referred to in point 2(a)(i), the issuing country has the right to refuse benefits for the goods subject to verification;

b) The customs authority of the member country must carry out the verification after receiving the notification referred to in point 2(a)(i). The verification must be conducted within fifteen (15) days from the date of receipt of the notification. Any delay beyond this period requires the consent of all parties;

c) The member country dispatching the verification team must send a written decision on whether the verified product meets the origin requirements to the exporter/manufacturer of the product subject to verification as well as the competent authorities of the exporting country;

i) The decision on whether the verified product meets the origin requirements becomes effective upon receipt of the written notification from the exporter, producer, and the competent authority of the exporting country. The suspension of benefits will be reconsidered when the decision takes effect;

ii) The exporter/producer shall provide written comments or additional relevant information regarding the conformity of the product within thirty (30) days from the date of receipt of the written decision. If the product is still considered non-conforming, the final written decision will be notified to the competent authority of the exporting country within thirty (30) days from the receipt of the exporter/producer's comments/information;

d) The verification process, including the on-site inspection and the decision on the origin of the product, will be carried out and the results will be reported to the competent authority of the exporting country within a maximum of six (6) months. Pending the verification results, Rule 17(1)(c) on the temporary suspension of benefits will apply;

3. Member countries shall, in accordance with their national laws, keep confidential any business-related information obtained during the verification process and protect such information from disclosure that could harm the competitive position of the information provider. Business-related confidential information may only be disclosed to the competent authorities responsible for making origin determinations;

 

 

F. SPECIAL CASES

 

Article 18:

When the entire or part of a consignment has been shipped to a specific member country but changes destination before or after arrival at that member country, the rules must be followed:

(a) If the goods have been presented to the customs authority of a specific importing member country, upon the importer’s request, the Certificate of Origin Form D will be accepted by this customs authority for the entire or part of the consignment, and the original will be returned to the importer. A third copy will be returned to the issuing authority of Certificate of Origin Form D;

(b) If the change of destination occurs during transportation to the importing member country as indicated in Certificate of Origin Form D, the exporter will submit an application, along with the issued Certificate of Origin Form D, for a new Certificate of Origin Form D for the entire or part of the consignment;

 

Article 19:

To implement Article 5(c) of the Rules of Origin, when goods are transshipped through the territory of one or more non-ASEAN member countries, the following documents must be submitted to the competent authorities of the importing member country:

(a) A through bill of lading issued in the exporting member country;

(b) A Certificate of Origin Form D issued by the competent authority of the exporting member country;

(c) A copy of the original commercial invoice of the goods; and

(d) Necessary documents to prove compliance with the requirements of Rule 5(c) sub-items (i), (ii), and (iii) of the Rules of Origin;

 

Article 20:

(1) Goods dispatched from an exporting member country to participate in an exhibition in another country and sold during or after the exhibition for importation into a member country shall be eligible for CEPT treatment provided that they meet the requirements of the Rules of Origin, provided that the competent authority of the importing member country is satisfied that:

(a) The exporter has dispatched the goods from the territory of the exporting member country to the country hosting the exhibition and exhibited them there;

(b) The exporter has sold or transferred the goods to a recipient in the importing member country;

(c) During the exhibition or immediately thereafter, the goods were sold to the importing member country in the condition in which they were dispatched for the exhibition.

 

(c) During the exhibition or immediately thereafter, goods have been transferred for sale to an importing Member country in a condition that they were sent to participate in the exhibition.

(2) To implement the above provisions, the competent authority of the importing Member government may issue Certificate of Origin Form D. The name and address of the exhibition must be clearly stated. The competent authority of the government organizing the exhibition may issue a Certificate of Authenticity together with the necessary documents specified in Article 19(d) as evidence that the goods were exhibited at the exhibition:

(3) Paragraph (1) shall apply to all exhibitions, trade fairs, or similar displays or displays at retail stores, business premises (where goods are always under Customs control throughout the exhibition period) with the purpose of selling foreign products.

 

Article 21:

The relevant authorities in the importing country may accept the certificate of origin in cases where the commercial invoice is issued by a company located outside ASEAN or by an ASEAN importer for such company, provided that the product meets the requirements of the CEPT Rules of Origin.

 

G. MEASURES AGAINST FRAUD

 

Article 22:

(a) When there is suspicion of fraudulent acts related to Certificate of Origin Form D, the relevant authorities of the governments in each Member country will coordinate actions to deal with the parties involved;

(b) Each Member country shall be responsible for imposing legal penalties on fraudulent acts related to Certificate of Origin Form D.

 

H. DISPUTE SETTLEMENT

 

Article 23:

(a) In case of disputes regarding the determination of origin, classification of goods or other issues, the relevant authorities of the governments in the importing and exporting Member countries will consult each other to resolve the dispute and the result will be notified to other Member countries for reference;

(b) In case a bilateral resolution cannot be reached, the matter will be decided by the Senior Economic Officials Meeting (SEOM).

(c) The ASEAN Dispute Settlement Mechanism Protocol shall apply to any disputes or conflicts arising between Member countries during the implementation of the Rules of Origin and the Implementation Procedures of CEPT.

 

 

ANNEX 3

Guidelines for issuing the Certificate of Origin Form D for preferential treatment
pursuant to the CEPT Agreement

 

Article 1: Instructions for filling out Certificate of Origin Form D

Certificate of Origin Form D must be filled out in English and typed. The contents must correspond with the customs declaration form that has been cleared and other documents such as bills of lading, commercial invoices, and certificates of origin inspection issued by the commodity inspection company (if required).

-  Box number 1: Name of exporter + address + country name (Vietnam)

-  Box number 2: Name of consignee + address + country name (consistent with the customs declaration form that has been cleared)

-  Top right box: To be filled by the issuing authority of Certificate of Origin Form D. The reference number consists of 12 characters divided into 5 groups, detailed as follows:

* Group 1: 02 characters "VN" (in uppercase) is an abbreviation for Vietnam.

* Group 2: 02 characters (in uppercase) is an abbreviation for the importing country, defined as follows:

BN Brunei LA Laos

KH Cambodia ID Indonesia

MY Malaysia MM Myanmar

PH Philippines SG Singapore

TH Thailand

* Group 3: 02 characters representing the year of issuance of the certificate.

* Group 4: 02 characters representing the issuing authority of Certificate of Origin Form D, as follows:

Issuing Authority Codes for Certificate of Origin Form D

 

 

* Group 5: Consists of 05 characters representing the serial number of Certificate of Origin Form D

Between Groups 3 and 4 as well as between Groups 4 and 5, there is a forward slash "/".

For example, if the Management Office of Import and Export in Ho Chi Minh City Region issues Certificate of Origin Form D number 9 for a shipment exported to Thailand in 2004, the reference number of this Certificate of Origin Form D will be as follows:

VN-TH 04/02/00009

-  Box number 3: Name of means of transport (if sent by air, write "By air"; if sent by sea, write the name of the ship) + from which port? to which port?

-  Box number 4: Leave blank (after the import of goods, the customs office at the port or place of import will mark appropriately before returning it to the Management Office of Import and Export Region that issued this Certificate of Origin Form D).

- Box number 5: List of goods (multiple items, one consignment, to one country, within a period of time)

- Box number 6: Signature and code of the consignment

- Box number 7: Type of consignment number, description of goods (including quantity and HS code of the importing country)

- Box number 8: Specific instructions as follows:

a) In case the goods/products have full origin in Vietnam (no use of imported raw materials), mark with the letter "X"

b) For goods not fully produced or extracted in Vietnam as stipulated in Rule 3 of Appendix 1 of the Origin Regulation according to ASEAN regulations, clearly state the percentage value calculated based on the FOB price of goods produced or extracted in Vietnam, for example 40% LOCAL CONTENT

c) For goods with combined origin as stipulated in Rule 4 of Appendix 1 of the ASEAN Origin Regulation, clearly state the percentage of the combined origin content ASEAN, for example 40% ASEAN CONTENT.

d) For goods with origin based on the "substantial transformation" criterion, mark "ST".

- Box number 9: Gross weight or quantity and other values (FOB price).

- Box number 10: Invoice number and date.

- Box number 11: + First line: Write "Vietnam";

+ Second line: Write the full name of the importing country;

+ Third line: Write location, date, and signature.

- Box number 12: Leave blank

 

Article 2: is the competent authority representing each ministry responsible for coordinating the handling of harmful interference among radio stations serving defense, security purposes, and economic and social purposes.

The Export-Import Department assists the Minister of Trade in guiding the implementation of the regulation and coordinating with the ASEAN Secretariat regarding the implementation of the regulation.

The Export-Import Department is responsible for handling registration procedures for sample signatures and seals of issuing authorities for Certificate of Origin Form D with member countries as well as registering with the ASEAN Secretariat.

The Export-Import Department has the responsibility to assist and coordinate with commodity inspection companies in implementing the process of origin verification of goods.

 

Article 3: Printing and selling of Certificate of Origin Form D declarations:

The Office of the Ministry of Trade is responsible for printing and distributing Certificate of Origin Form D to Regional Import-Export Management Departments.

Regional Import-Export Management Departments directly sell Certificate of Origin Form D to applicants and must settle accounts according to the regulations of the Office of the Ministry.

 

Article 4: Periodic Report

Issuing authorities for Certificate of Origin Form D must report regularly every month to the Ministry of Trade - Export-Import Department on the situation of issuance and use of Certificate of Origin Form D (including cases where no certificates were issued). These regular reports are typed according to a template (in Microsoft Excel format) and sent in writing and via email to the Ministry of Trade - Export-Import Department (21 Ngo Quyen, Hanoi. Tel: 8262538, Fax: 8264696, Email: [email protected]) before the 10th day of the following month. If there is no regular report as mentioned above for a continuous period of three months, the authority granted by the Ministry of Trade to the authorized issuing authorities will become invalid.

 

Report Template

 

 

Respectfully submitted to: Ministry of Trade (Export-Import Department)

 

COMPREHENSIVE REPORT ON THE SITUATION OF ISSUE OF CERTIFICATE OF ORIGIN FORM D

MONTH... YEAR 200

 

 

Date...month...year...

Signature of authorized person

 

(*) Example: For the June report, the cumulative total up to the end of the period is the data for all six months

(**) Reporting on rejected Certificates of Origin is done every three months.

 

 

 

 

ANNEX 4

PROCEDURE FOR APPLICATION AND ISSUANCE OF CERTIFICATE OF ORIGIN FORM D

 

To implement the regulation on origin for goods benefiting from preferential tariffs under the ASEAN Comprehensive Economic Cooperation Agreement (CEPT), the procedure for application and issuance of Certificate of Origin Form D is as follows:

 

I. ORGANIZATIONS TO BE INSPECTED AND
ISSUING CERTIFICATE OF INSPECTION:

 

Article 1: Organizations responsible for conducting inspection and issuing Certificate of Origin Inspection Form D are businesses engaged in commodity inspection services as stipulated in Decree No. 20/1999/NĐ-CP dated April 12, 1999 of the Government on trading in commodity services and related legal documents.

 

Article 2: For inspection purposes, the inspecting organization has the right to request the applicant to provide or present necessary documents related to the goods, as well as conduct any inspection of the goods if deemed necessary.

 

II. INSPECTION OF GOODS' ORIGIN

 

Article 3: The inspection of goods' origin is carried out before the export of goods. Specifically, for goods requiring inspection of ASEAN content, the inspection may be conducted at the production stage depending on the complexity level.

The applicant for origin inspection is responsible for creating all necessary conditions to facilitate, expedite, and ensure the accuracy of the inspector's work.

 

Article 4: For traders who only produce one type of goods according to the HS code but export in multiple consignments to ASEAN countries, when applying for origin inspection procedures, they only need to undergo inspection once for the first exported consignment. From the second consignment onwards of the same HS code item, the trader only needs to submit a copy of the Certificate of Origin Inspection of the first consignment based on a written commitment regarding the compliance of the goods' ASEAN content (equal to or greater than the first consignment - increase in ASEAN or Vietnamese raw material content) and bear legal responsibility for the truthfulness of their statement.

 

Article 5: The inspection of goods' origin includes the following items:

- Characteristics of goods (type, specifications),

- Marking on the consignment,

- Packaging method,

- Quantity, weight (final quantity and weight based on the bill of lading),

- ASEAN content.

 

Article 6: The basis and formula for calculating ASEAN content are applied according to Appendices 6 and 7 of this Decision.

 

III. PROCEDURE FOR APPLICATION AND
ISSUANCE OF CERTIFICATE OF INSPECTION OF GOODS' ORIGIN

 

Article 7: When applying for origin inspection of goods, the applicant must ensure:

(a) Goods with pure ASEAN origin are ready for inspection.

(b) Production has started or is ongoing for goods that require determination of ASEAN content.

 

Article 8: The application for origin inspection of goods according to Form D includes:

(a) Two applications for origin inspection of goods according to Form D (as prescribed and attached) fully completed and signed (for enterprises, it must also be stamped).

(b) The accompanying documents submitted with the application for origin inspection:

(b).i. For goods containing imported raw materials from outside the territory of member states and/or whose origin cannot be determined:

- The blending process/production process, assembly process, or mixing ratio statement of the input raw materials of the goods.

- Invoices and documents to determine the CIF import price of the imported raw materials from outside the territory of member states.

- Invoices and documents proving the price of raw materials whose origin cannot be determined.

(b).ii. For goods with cumulative origin:

- Certificates of Origin satisfying condition D from members.

- Blending processes/production processes, assembly processes, or input material mixing ratio statements of the goods.

(c) Documents to be submitted before receiving the Certificate of Origin inspection (may submit copies, but must present originals for verification):

- Commercial invoices and/or documents to prove the export price of the goods under FOB terms.

Article 9: The person requesting the inspection of the Certificate of Origin sample D shall be fully responsible under the law for the accuracy and truthfulness of the details declared in the request form as well as in the accompanying documents.

 

Article 10: The Certificate of Origin inspection is established on a stamp form bearing the emblem of the business operating the commodity inspection service registered at the National Office of Intellectual Property under the Ministry of Science and Technology.

 

APPLICATION FOR CERTIFICATE OF ORIGIN INSPECTION SAMPLE D

 

No.:...

 

Unit: Equivalent USD: Company...

 

Requester (Write full name, address, telephone, fax):...

...Enterprise...Individual...

Exporter (Write full name, address, telephone, fax):...

.....................................................................................................................

Importer (Write full name, address, telephone, fax):...

....................................................................................................................

Goods Name:...

Quantity/Volume:...

Port of Loading:...

Port of Discharge:...

Mode of Transport:...

Origin Criteria to be Inspected:

* Pure ASEAN Origin Goods

 

* Goods Containing Imported Raw Materials

o Non-ASEAN Origin Compared to FOB Price:...%

o Undetermined Origin Compared to FOB Price:...%

* o Cumulative Origin Goods Compared to ASEAN Content FOB Price

...%

Attached Documents:

 

 

Time/Place/Contact Person for Inspection:...

..................................................................................................................

Number of requested certificates (Vietnamese language):...copies

We commit to pay the inspection fee by bank transfer or cash within 30 days from the date we receive your company's invoice.

 

Date...month...year...

Requester

 

COMMITMENT ON THE ORIGIN OF GOODS

No.:...

 

Unit: Equivalent USD: Export Management Department...

 

Committer (Write full name, address, telephone, fax):...

...Enterprise...Individual...

Goods Name and HS Code:...

Quantity/Volume:...

Port of Loading:...

Port of Discharge:...

Mode of Transport:...

We commit that this consignment has an equivalent ASEAN origin content to the consignment previously issued Certificate of Origin sample D number...dated.../.../200 (true copy attached) and we will be responsible under the law for the truthfulness of this commitment.

 

Date...month...year...

(Authorized person signature, stamp)

 

ANNEX 5

REGULATIONS ON ORIGIN CEPT APPLICABLE TO TEXTILE AND
BASIC TRANSFORMATION PRODUCTS

 

General Rules

Rule 1:

The country of origin is the country where the final basic transformation or the process to create a new product takes place. Therefore, raw materials undergoing a basic transformation in which 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 product will be considered to have undergone a basic transformation or basic transformation process if it is transformed through a production process or basic manufacturing steps 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 format of the product.

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. The physical change of the material or product produced due to the production process or processing steps.

5.2. The time involved in the production process or processing steps at the country of production.

5.3. The complexity of the production process or processing steps at the country of production.

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

Specific rules applicable to textiles and textile products.

Rule 6:

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

6.1. Chemicals undergo polymerization or polycondensation or any chemical or physical process to form a high molecular compound.

6.2. High molecular compounds undergo spinning or extrusion to form synthetic fibers.

6.3. Spinning fibers into yarn.

6.4. Weaving, knitting, or any other method 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 directly dyed product.

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 involving treatments such as soaking or coating a product leading to the formation of a new product belonging to a different tariff heading.

6.9. Embroidery points covering at least 5% of the total surface 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. Single mixing, labeling, pressing, cleaning or dry cleaning operations, or packaging operations, or any combination of these processes.

7.2. Cutting to length or width and hemming, crocheting, or ironing fabric for a particular commercial form.

7.3. Light trimming and/or joining by sewing, looping, splicing, or attaching accessories such as collars, ribbons, belts, loops, or buttons.

7.4. One or more finishing operations on yarns, fabrics, or other textile products such as bleaching, waterproofing, sizing, or similar operations; or

7.5. Dyeing or printing patterns on fabrics or yarns.

 

Rule 8

The products (listed below) made from textile materials produced in non-ASEAN countries shall be considered ASEAN-origin products if they undergo processes as described in Rule 6 rather than those in Rule 7:

8.1. Face 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, door coverings;

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

Certificate of Origin

 

Rule 9

The Certificate of Origin issued by the authorized authority or its 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 must be presented together with other necessary documents to the ASEAN Import Customs Authority.

 

Rule 12

If there is a dispute regarding the authenticity of the ASEAN origin of a textile product, such disputes can be resolved through the ASEAN Dispute Settlement Mechanism (DSM). In such cases, customs authorities may release disputed products after the importer provides guarantees meeting the requirements of the customs authority.

 

 

ANNEX 6

METHOD FOR CALCULATING DOMESTIC/ASEAN CONTENT RATIO

 

1. Member countries may only apply one method for calculating domestic/ASEAN content ratio, either directly or indirectly, however, member countries have the right to change the calculation method if necessary. Any changes in the calculation method must be reported to the AFTA Council Meeting.

2. The FOB price will be calculated as follows:

a. FOB Price = Factory Price + Other Costs

b. Other costs used to calculate the FOB price include costs incurred in loading the goods onto ships for export, including but not limited to, inland transportation costs, warehouse costs, port costs, commission fees, service fees, etc.

3. Formula for Calculating Factory Price

a. Factory Price = Production Cost + Profit

b. Formula for Calculating Production Cost

i. Production Cost = Raw Material Cost + Labor Cost + Overhead Cost

ii. Raw Material Cost includes:

- Raw Material Cost

- Transportation and Insurance Costs

iii. Labor Cost includes:

- Wages

- Bonuses

- Other benefits related to the production process.

iv. Overhead Cost, including but not limited to:

- Factory-related costs associated with the production process (insurance, factory rental and leasing costs, depreciation of factory buildings, repairs, maintenance, taxes, mortgage interest)

- Leasing and interest payments for factories and equipment

- Factory security

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

- Production necessities (energy, electricity, and other direct contributions to the production process)

- Research, development, design, and manufacturing

- Die casting, mold making, tooling installation, depreciation, maintenance, and repair of factory and equipment

- Patent royalty fees (related to patented machines or processes used in the production of goods or the right to produce goods)

- Raw material and product testing and inspection

- Factory storage

- Recycling waste processing

- Cost factors in determining the value of raw materials, such as port costs and tax clearance costs for components subject to import duties

 

 

ANNEX 7:

 

GENERAL PRINCIPLES FOR
THE ORIGIN RULES OF THE CEPT-AFTA

 

A. PRINCIPLES FOR COST DETERMINATION
TO DETERMINE ASEAN ORIGIN

 

i. Materiality - all costs involved in pricing, valuation, and determining origin must be actual costs.

ii. Consistency - cost allocation methods must be consistent unless proven otherwise by commercial practice.

iii. Reliability - cost information must be reliable and verifiable by appropriate documentation.

iv. Relevance - costs must be allocated based on objective data and quantifiable information.

v. Accuracy - the pricing method must provide an accurate representation of the cost factors of concern.

vi. Application of Generally Accepted Accounting Principles (GAAP) in the exporting country - cost information must be prepared in accordance with GAAP and must avoid double counting of cost items.

vii. Updating - current company cost and accounting records must be used to determine origin.

 

B. PRINCIPLES FOR METHODS OF COST CALCULATION

 

i. Actual Costs: The basis for determining actual costs is decided by the company. Actual costs must include both direct and indirect costs incurred during the production process.

ii. Estimated Costs and Allowable Costs - estimated costs may be used if justified. Companies must provide variance analysis and evidence at the time of requesting an origin certificate to clarify the accuracy of the estimates.

iii. Standard costs - The basis for determining standard costs must be clarified. Companies must provide evidence that the costs used are for accounting purposes.

iv. Average cost/moving average cost: Average cost may be used if it can be proven; the basis for calculating average cost, including the calculation period, etc., must be specified. Companies must provide variance analysis and evidence during the application period for origin certification to clarify the accuracy of the average cost.

v. Fixed costs: Fixed costs must be allocated according to reliable accounting principles. Fixed costs must accurately reflect the company's departmental costs during a specific period. The allocation method must be specified.