Circular No. 21/2019/TT-BCT stipulates Rules on the Origin of Goods under the ASEAN-Hong Kong, China Free Trade Agreement.

CIRCULAR

Regulations on Rules of Origin for Goods

in the ASEAN-Hong Kong, China Free Trade Agreement

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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. 31/2018/NĐ-CP dated March 8, 2018 of the Government detailing the Law on Foreign Trade Management regarding the origin of goods;

Implementing the ASEAN-Hong Kong, China Free Trade Agreement signed on March 28, 2018 in Myanmar;

Article 1. Commodity codes and quantities of tariff quotas for 2020, 2021, and 2022 for goods subject to tariff quotas as stipulated in this Circular shall be implemented according to the Appendix attached hereto.

Chapter I GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates the Rules of Origin for goods under the ASEAN-Hong Kong, China Free Trade Agreement (hereinafter referred to as AHKFTA).

Article 2. Applicability

This Circular applies to:

2. Business entities.

2. Business entities, agencies, organizations, and individuals participating in activities related to the origin of goods.

Article 3. Explanation of Terms

According to this Circular, the following terms are understood as follows:

1. Aquaculture is the cultivation of aquatic living organisms including fish, mollusks, crustaceans, other non-chordate aquatic animals, and aquatic plants from eggs, larvae, fry, and other similar stages through human intervention in the growth process to promote reproduction such as breeding, feeding, or protecting from predators, etc.

2. CIF is the value of imported goods inclusive of freight and insurance charges up to the port or customs frontier of the Importing Member.

3. FOB is the value of goods delivered alongside the ship, including transportation costs to the port or final destination before the cargo-carrying vessel departs.

4. Generally accepted accounting principles are principles that have been widely recognized or applied in a Member concerning the recording of revenues, expenses, surcharges, assets, and liabilities; information retrieval and financial reporting. These principles may include general guidelines as well as specific standards, practices, and procedures.

5. Goods are raw materials or products obtained entirely or produced, including in cases where they are used as raw materials in subsequent production processes. In this Circular, the terms "goods" and "products" may be used interchangeably.

6. Similar raw materials capable of being substituted for each other are raw materials of the same type and commercial characteristics, with identical physical and technical properties, and which cannot be distinguished by origin through appearance or simple visual inspection once combined to form the final product.

7. Raw material is any substance or item used in the production process of goods, naturally forming part of the goods or participating in the production of another good.

8. Non-originating raw material or non-originating goods are raw materials or goods that do not meet the rules of origin as prescribed in this Circular.

9. Originating raw material or originating goods are raw materials or goods that meet the rules of origin as prescribed in this Circular.

10. Packaging raw materials and packaging materials for transport are raw materials or packaging materials used to protect goods during transportation and are not packaging materials and packaging materials for retail sale.

11. Tariff preference is the reduction of import duties on originating goods reflected through corresponding duty rates within the framework of the AHKFTA.

12. Production is the method of obtaining goods including farming, harvesting, gathering, breeding, propagation, extraction, aquaculture, collecting, hunting, fishing, trapping, manufacturing, producing, processing, or assembling goods.

13. Specific Product Rule (SPR) is the rule set forth in Appendix I attached hereto. To determine the origin of goods, the raw materials used to produce such goods must satisfy one of the following criteria for origin:

a) Change in Tariff Classification (CTC);

b) Special Processing Operation (SPO);

c) Regional Value Content (RVC);

d) A combination of the criteria mentioned in points a, b, and c of this Clause.

14. Back-to-back Certificate of Origin (MC) is a Certificate of Origin issued by an Intermediate Exporting Member based on the original Certificate of Origin (AHK Form) issued by the Initial Exporting Member.

15. Exporter is an individual or entity having its principal place of business in the territory of a Member where the goods are exported by that person.

16. Importer is an individual or entity having its principal place of business in the territory of a Member where the goods are imported by that person.

17. Producer is an individual or entity responsible for production in the territory of a Member.

18. Simple operation is an activity that does not require special skills or specialized production machinery and equipment to perform.

19. Simple mixing is an activity that does not require special skills or specialized production machinery and equipment to perform. Simple mixing does not include chemical reactions. Chemical reaction is a process (including biochemical processes) that produces a new molecule with a new structure by breaking intramolecular bonds and forming new intramolecular bonds or by rearranging the spatial arrangement of atoms in a molecule.

20. Slaughtering animals is the act of killing animals and subsequent processes such as cutting, chilling, freezing, salting, drying, or smoking, with the purpose of preservation for transportation or storage.

Article 4. Certification and Origin Verification of Goods in Vietnam

1. The Circular hereby promulgates the following Appendices:

a) Appendix I: Specific Rules for Commodities;

b) Appendix II: Sample CO Form AHK;

c) Appendix III: Guidelines for Filing Sample CO Form AHK for Exported Goods;

d) Appendix IV: List of Authorities and Organizations Issuing Sample CO Form AHK in Vietnam;

e) Appendix V: List of Necessary Information.

2. The list of authorities and organizations issuing sample CO Form AHK in Vietnam is stipulated in Appendix IV issued together with this Circular and updated on the Electronic System for Origin Management and Certification of the Ministry of Industry and Trade at the website www.ecosys.gov.vn. These authorities and organizations must register their seals and signatures and update these seals and signatures according to the regulations of the Ministry of Industry and Trade.

3. The certification and origin verification process for goods shall be carried out in accordance with the provisions of Decree No. 31/2018/NĐ-CP dated March 8, 2018, detailing the Law on Foreign Trade Management regarding the origin of goods and related regulations.

Chapter II RULES ON THE ORIGIN OF GOODS

Article 5. Goods with origin

Imported goods from one Member State into another Member State shall be considered as having origin if such goods meet one of the following origin rules and other provisions set forth in this Circular:

1. Pure origin or wholly produced in the exporting Member State as provided for in Article 6 of this Circular.

2. Produced in the exporting Member State solely from materials of origin from one or more Member States.

3. Produced from non-origin materials in the exporting Member State provided that such goods comply with the provisions of Article 7 of this Circular.

Article 6. Goods with pure origin

According to Clause 1 of Article 5 of this Circular, goods shall be considered as having pure origin or wholly produced in the exporting Member State in the following cases:

1. Plants and plant products (including fruits, flowers, vegetables, trees, seaweed, mushrooms, and plants) grown, harvested, picked, or gathered in one Member State.

2. Live animals (including mammals, birds, fish, crustaceans, mollusks, reptiles, bacteria, and viruses) born and raised in one Member State.

3. Products obtained from live animals in one Member State.

4. Products obtained from hunting, trapping, fishing, aquaculture, gathering, or harvesting in one Member State.

5. Minerals and other naturally occurring substances extracted or taken from land, water, seabed, or sub-seabed of one Member State, excluding the products mentioned in Clauses 1 to 4 of this Article.

6. Seafood caught by vessels registered in the exporting Member State and permitted to fly its flag, minerals, and other naturally occurring substances extracted from areas beyond the territorial sea of the exporting Member State, provided that the Member State has the right to exploit the sea, seabed, and sub-seabed under international law. International law includes widely recognized international conventions, including the United Nations Convention on the Law of the Sea 1982.

7. Seafood and other marine products caught from the high seas by vessels registered in one Member State and permitted to fly its flag.

8. Products processed or manufactured immediately on board processing vessels registered in one Member State or flying the flag of one Member State from the products mentioned in Clause 7 of this Article.

9. Waste and scrap materials obtained from production or consumption processes in one Member State suitable only as raw material or for recycling.

10. Used goods collected in one Member State provided that such goods are suitable only as raw material or for recycling.

11. Goods obtained or produced in the exporting Member State solely from the products mentioned in Clauses 1 to 10 of this Article.

Article 7. Goods with Non-Pure Origin

1. Goods mentioned in Clause 3 of Article 5 of this Circular, except for goods specified in Clause 2 of this Article, shall be considered as having origin if they have a Regional Value Content (RVC) not less than 40% according to the calculation formula prescribed in Article 8 of this Circular.

2. Goods shall be considered as having origin if they meet the origin criteria set forth in Appendix I issued together with this Circular.

Article 8. Formula for Calculating RVC

1. RVC is the regional value content, expressed as a percentage. The formula for calculating RVC is specified as follows:

a) Direct calculation formula: RVC = Cost of AHKFTA raw materials + Direct labor costs + Direct allocation costs + Other costs + Profit x 100% / FOB Value or

b) Indirect calculation formula: RVC = FOB Value - Value of non-origin materials, parts, or goods (VNM) x 100% / FOB Value Vietnam applies the indirect RVC calculation formula as prescribed in point b, Clause 1 of this Article to determine the origin of exported goods under AHKFTA.

2. Within the scope of the RVC calculation formula stipulated in Clause 1 of this Article:

a) Cost of AHKFTA raw materials is the value of raw materials, parts, or goods with origin used in the production process purchased or self-produced by the manufacturer.

b) VNM is the CIF price at the time of importation or the first purchase price of non-origin raw materials, parts, or goods used in the production process purchased by the manufacturer. Non-origin raw materials include those whose origin cannot be determined.

c) Direct labor costs include wages, remuneration, and other benefits for workers related to the production process.

d) Direct allocation costs include, but are not limited to, factory-related costs (insurance, short-term and long-term rental costs, depreciation of factory buildings, repairs, maintenance, taxes, interest on collateral); long-term lease payments and interest on factory and equipment; plant security, insurance (factory buildings, equipment, and materials used in the production process); production necessities (energy, electricity, water, and other direct contributions to the production process); research and development, design, and manufacturing; mold making, casting, tooling installation, depreciation, maintenance, and repair of factory and equipment; patent royalty fees (related to machines with patents or processes used in production or production rights); material testing and product inspection, storage, and arrangement within the factory; recycling waste processing; and cost factors in calculating material value such as port charges, cargo release fees, and import duties on taxable components.

e) Other costs are expenses incurred in loading goods onto ships or other transportation means for export, including but not limited to domestic transportation costs, warehouse costs, port fees, commission fees, service fees.

3. The value of goods in this Circular is determined according to the Customs Valuation Agreement.

Article 9. Aggregation

Goods that meet the rules of origin of a Member State and are used as raw materials in another Member State to produce goods eligible for preferential tariffs are considered to have the origin of the Member State where the final product was manufactured or processed.

Article 10. Simple Processing Operations

1. Goods shall not be considered to have origin in the territory of a Member State if the following operations are carried out separately or in combination in that Member State's territory:

a) Preservation of goods in good condition during transportation and warehousing;

b) Changing packaging, disassembling, and reassembling consignments;

c) Simple cleaning, wiping, dust removal, and removal of oxide, oil, paint, and other surface coatings;

d) Simple painting and polishing;

e) Grinding, peeling, whitening partially or completely, polishing, and smoothing grains and rice;

f) Sugaring or creating sugar cubes;

g) Simple peeling, extracting seeds, or removing kernels;

h) Simple sharpening, grinding, cutting;

i) Sifting, selecting, sorting, grading, grouping;

j) Simple bottling, canning, molding, bagging, boxing, selecting cardboard, and other simple packaging operations;

k) Labeling, marking, or branding products or their packaging with similar distinguishing marks;

l) Simple mixing of products, whether of the same type or different types;

m) Simple assembly of product parts to form a complete product or disassembly of a product into parts;

n) Simple inspection or testing; or

o) Slaughtering animals.

2. Goods originating from the territory of a Member State retain their original origin when exported from another Member State where simple processing or manufacturing operations are carried out as provided for in Clause 1 of this Article.

Article 11. Direct Transport

1. Goods shall be eligible for preferential customs treatment if they fully comply with the provisions of this Circular and must be directly transported from the exporting Member State to the importing Member State.

2. The following cases shall be considered as direct transport from the exporting Member State to the importing Member State:

a) Goods are directly transported from one exporting Member State to one importing Member State; or

b) Goods are transported through one or more other Member States or through a non-member State and meet the following conditions:

- Transit is necessary due to geographical reasons or transportation requirements;

- Goods do not participate in commercial transactions or consumption there;

- Goods do not undergo any additional processing or manufacturing steps other than unloading and reloading or those necessary to maintain goods in good condition.

Article 12. De Minimis

1. Goods that do not meet the CTC criteria shall still be considered as having origin if the total value of all non-originating materials used to produce such goods does not exceed 10% of the FOB value of the goods and such goods comply with other origin rules stipulated in this Circular.

2. In the case of goods applying the RVC criterion, the value of non-originating materials referred to in Clause 1 of this Article shall still be included in the value of non-originating materials.

Article 13. Packaged Materials and Packaging Materials

1. In the case where packaged materials and packaging materials are used solely for transportation, these materials need not be taken into account when determining the origin of the goods.

2. In the case where packaged materials and packaging materials are used to package goods for retail sale and classified together with the goods, these materials need not be taken into account when determining the origin of the goods, provided that:

a) The goods have a pure origin as prescribed in Clause 1 of Article 5 of this Circular;

b) The goods are entirely produced within the territory of one Member State as prescribed in Clause 2 of Article 5 of this Circular;

c) The goods meet the CTC criteria as prescribed in Appendix I issued together with this Circular.

3. In the case of goods applying the RVC criterion, the value of packaged materials and packaging materials used to package goods for retail sale must be taken into account when determining the origin of the goods.

Article 14. Accessories, Spare Parts, Tools, and Documentation

1. In the case where goods apply the CTC or SP criteria, the origin of accompanying accessories, spare parts, tools, and informational documentation need not be considered when determining the origin of the goods, provided that:

a) These accessories, spare parts, tools, and documentation are invoiced together with the goods;

b) The quantity and value of these accessories, spare parts, tools, and documentation are consistent with the goods according to industry practice.

2. In the case of goods applying the RVC criterion, the value of accompanying accessories, spare parts, tools, and informational documentation shall be included in the value of originating or non-originating materials when calculating the RVC, depending on the circumstances.

Article 15. Intermediate Factors

When determining the origin of goods, it is not necessary to determine the origin of the following intermediate factors used in the production process but do not constitute the goods:

1. Fuel and energy.

2. Tools, dies, and molds.

3. Spare parts and materials used for maintaining equipment and facilities.

4. Lubricating oils, greases, compounds, and other materials used in the production process or used to operate equipment and facilities.

5. Gloves, goggles, shoes, clothing, protective supplies, and equipment for labor protection.

6. Equipment, machinery, and materials used for testing or inspecting goods.

7. Catalysts and solvents.

8. Any other raw material that does not constitute the product but whose use in the production process must be proven to be necessary to produce the product.

Article 16. Similar Raw Materials and Substitutable Raw Materials

1. Identical raw materials that can be substituted for each other used in the production process and determined to have origin must be carried out by physically separating each raw material or applying the widely accepted accounting principle for inventory management, or inventory management practices at the exporting Member State.

2. When deciding to use an inventory accounting method, that method must be applied throughout the fiscal year.

Chapter III PROCEDURES FOR CERTIFICATION AND VERIFICATION OF THE ORIGIN OF GOODS

Article 17. Pre-Export Verification

The exporter or producer of goods eligible for preferential customs treatment may request the issuing authority or organization to verify the origin before export. The results of periodic verification or when necessary, are accepted as proof of the origin of exported goods later on. This verification may not be required for goods that can easily determine their origin through the nature of the goods themselves.

Article 18. Submission of Application for Issuance of C/O

At the time of export procedures for goods eligible for preferential customs treatment, the exporter or authorized person submits an application for issuance of the AHK C/O in paper or electronic form along with necessary documents proving that the exported goods meet the conditions for issuance of the AHK C/O.

Article 19. Examination of Application for Issuance of C/O

The issuing authority or organization examines each application for issuance of the AHK C/O to ensure that:

1. The origin of the goods complies with the provisions of this Circular.

2. Other information on the AHK C/O is consistent with the accompanying documents.

3. The description of the goods, quantity and weight of the goods, marks and number of packages, quantity and type of packages declared are consistent with the exported goods.

4. The application for issuance of C/O and the AHK C/O are fully completed and signed either manually or electronically by the authorized person.

Article 20. AHK C/O

To enjoy preferential customs treatment, goods must be issued with an AHK C/O by the competent authority or organization of the exporting Member State.

1. The AHK C/O according to the model prescribed in Appendix II, which is established by the Member States based on the list of necessary information prescribed in Appendix V attached to this Circular.

2. The AHK C/O includes one original copy (Original) and two copies.

3. The AHK C/O must meet the following conditions:

a) It is a paper document;

b) It bears a unique reference number for each issuing authority or organization;

c) It is filled out in English;

d) It has the signature of the authorized person and the stamp of the issuing authority or organization. These signatures and stamps may be applied in electronic form.

4. The FOB value of the goods, when applying the RVC criterion, must be shown on the AHK C/O for goods exported from one ASEAN Member State to another ASEAN Member State, and from Hong Kong, China to ASEAN Member States, but need not be shown for goods exported from ASEAN Member States to Hong Kong, China.

5. The original AHK C/O is sent by the exporter to the importer to submit to the customs authority of the importing Member State. Two copies are retained by the issuing authority or organization of the exporting Member State and the exporter.

6. Multiple goods may be declared on the same AHK C/O provided that each good meets the origin requirements for that good.

Article 21. Handling Errors on the AHK Certificate of Origin (C/O)

Erasing or writing additional information on the AHK C/O is not permitted. Any amendments must be made in one of the following two ways:

1. Strike out the incorrect part and supplement necessary information. These changes must be approved by the authorized person signing the AHK C/O and confirmed by the issuing authority or organization. Blank spaces must be crossed out to prevent further entries.

2. Issue a new AHK C/O to replace the old one.

Article 22. Issuance of the AHK C/O

1. The AHK C/O shall be issued by the issuing authority or organization of the Exporting Member State prior to or at the time of delivery but no later than three working days after the date of delivery.

2. In cases where the AHK C/O is not issued at the time specified in Clause 1 of this Article due to unintentional errors or valid reasons, the AHK C/O may be issued later but not more than one year from the date of delivery and must be marked in Box 13 with the phrase "ISSUED RETROACTIVELY."

Article 23. Back-to-Back AHK C/O

The issuing authority or organization of the Intermediate Member State shall issue a back-to-back AHK C/O upon request of the exporter when goods are being transported through the territory of that Member State, subject to the following conditions:

1. Presenting the original or certified copy of the AHK C/O which remains valid.

2. The validity period of the back-to-back AHK C/O shall not exceed the validity period of the original AHK C/O.

3. Goods re-exported and issued a back-to-back AHK C/O must remain within the control area of the Intermediate Member State. Such control includes document management or any risk management procedures required by the competent authority of the Intermediate Member State. Re-exported goods issued a back-to-back AHK C/O shall not undergo any further processing stages in the Intermediate Member State, except for repackaging or logistical activities such as unloading, reloading, warehousing, or any other necessary activities to maintain the goods in good condition or for transportation to the Importing Member State.

4. The back-to-back C/O shall include relevant information related to the original AHK C/O based on the list of necessary information stipulated in Appendix V attached hereto. The FOB value is the FOB value of goods exported from the Intermediate Exporting Member State.

5. In cases where information is incomplete or there is suspicion of legal violations, the competent authority of the Final Importing Member State may request the original AHK C/O.

6. The verification process for origin of goods as prescribed in Article 30 of this Circular also applies to the back-to-back C/O.

Article 24. Lost, Stolen, or Damaged AHK C/O

In case the AHK C/O is lost, stolen, or damaged, the exporter may submit an application to the issuing authority or organization for a certified true copy of the original AHK C/O or its copies. The certified true copy is issued based on export documents retained by the issuing authority or organization and must bear the phrase "CERTIFIED TRUE COPY." This certified true copy carries the issuance date of the original AHK C/O and shall be issued within one year from the date of issuance of the original AHK C/O.

Article 25. Submission of AHK Certificate of Origin (C/O)

1. To be eligible for preferential customs duties as stipulated by the importing Member State's laws, at the time of import procedures, the importer must submit to the customs authority of the importing Member State the customs declaration form, AHK C/O, and other necessary documents (including commercial invoices, and if required, transport documents or related shipping documents) issued within the territory of the exporting Member State, and other documents in accordance with the laws of the importing Member State.

2. In case of rejection of the AHK C/O, the customs authority of the importing Member State shall mark the corresponding section in Box No. 4 on the AHK C/O, and the original AHK C/O must be returned to the issuing authority or organization within a suitable period not exceeding 60 days from the date of rejection of the C/O. The issuing authority or organization must be informed of the reasons for the rejection of the preferential customs duty benefits.

3. In case the AHK C/O is rejected as provided in Clause 2 of this Article, the importing Member State must accept and consider the explanations of the issuing authority or organization to reassess whether the C/O should be granted preferential customs duty benefits or not. The explanation of the issuing authority or organization must be detailed and address the issues raised by the importing Member State. If the explanation of the issuing authority or organization meets the requirements set forth in this Circular, the importing Member State must accept the AHK C/O and grant preferential customs duty benefits to the goods in accordance with its laws.

Article 26. Validity Period of AHK C/O

1. The submission deadline for the AHK C/O is as follows:

a) The AHK C/O is valid for one year from the date of issuance and must be submitted to the customs authority of the importing Member State within this period;

b) In cases where the AHK C/O is submitted to the customs authority of the importing Member State after the validity period has expired, such C/O will still be accepted if the non-compliance with the deadline is due to force majeure or other legitimate reasons beyond the control of the importer or exporter.

2. In all cases, the customs authority of the importing Member State may accept the AHK C/O provided that the goods are imported before the expiration of the C/O's validity period.

Article 27. Exemption from Submission of AHK C/O

1. Goods originating from the exporting Member State with a Free On Board (FOB) value not exceeding 200 US dollars are exempted from submitting the AHK C/O and only require a simple declaration from the exporter stating that the goods originate from the exporting Member State. Goods sent via postal services with an FOB value not exceeding 200 US dollars also apply to this provision.

2. Apart from the provisions in Clause 1 of this Article, a Member State may choose not to require the submission of the AHK C/O.

Article 28. Handling Minor Differences

1. In cases where there is no doubt about the origin of the goods, minor differences such as typographical errors on the AHK C/O or errors on the documents submitted to the customs authority of the importing Member State for import procedures do not invalidate the AHK C/O if these differences correspond to the actual imported goods.

2. In cases where there is a difference in classification of commodity codes (HS codes) between the exporting Member State and the importing Member State, the imported goods will be cleared under the Most-Favored-Nation (MFN) tariff rate or the special preferential tariff rate according to AHKFTA, depending on compliance with the applicable rules of origin, and the importer will not be penalized or required to pay additional fees as stipulated by the laws of the importing Member State. After clarifying the difference in HS code classification, the AHKFTA preferential tariff rate will be applied, and any excess tax paid (if any) will be refunded in accordance with the laws of the importing Member State.

3. In cases where multiple items are declared on the AHK C/O, difficulties with one item do not affect or hinder the granting of preferential tariff rates and clearance of other items. The handling of items with difficulties shall be carried out in accordance with Point c, Clause 1 of Article 30 of this Circular.

Article 29. Recordkeeping of Documents

1. In order to serve the verification of the origin of goods as stipulated in Article 30 of this Circular, the manufacturer or exporter requesting issuance of the AHK Certificate of Origin must retain the application documents and certificates for at least three years from the date of issuance of the AHK Certificate of Origin according to the laws of the Exporting Member State.

2. The application documents for the AHK Certificate of Origin and all related certificates shall be retained by the issuing authority or organization for at least three years from the date of issuance.

3. Information related to the validity of the AHK Certificate of Origin shall be provided by the issuing authority or organization of the Exporting Member State upon request of the Importing Member State.

4. Any information exchanged between Member States must be kept confidential and may only be used to confirm the authenticity of the AHK Certificate of Origin.

Article 30. Post-Issuance Verification

1. The competent authority of the Importing Member State may request the competent authority of the Exporting Member State to conduct random checks or inspections when there is reasonable doubt regarding the authenticity of the documents or the accuracy of the information related to the origin of the goods or parts thereof. Based on the request of the Importing Member State, the competent authority of the Exporting Member State shall carry out inspections and verifications of the exporter or manufacturer under the following conditions:

a) The inspection request must be accompanied by the relevant AHK Certificate of Origin and clearly state the reasons as well as any additional information indicating that the details on this certificate may not be accurate, except in cases of random checks.

b) The competent authority of the Exporting Member State must immediately acknowledge receipt of the inspection request and notify the Importing Member State of the results within ninety days from the date of receipt of the inspection request.

c) The competent authority of the Importing Member State may suspend the granting of preferential treatment while awaiting the inspection results. However, the competent authority of the Importing Member State may allow the importer to clear the goods with the application of necessary administrative measures provided that the goods are not prohibited or restricted imports and there is no suspicion of origin fraud. If the Importing Member State determines the goods have origin, the granting of preferential treatment will continue.

d) After receiving the inspection results from the Exporting Member State, the competent authority of the Importing Member State must determine whether the goods have origin or not. The entire inspection process, including the process of notifying the decision on the origin of the goods to the competent authority of the Exporting Member State, must be completed within one hundred eighty days from the date of receipt of the inspection request.

2. In case the competent authority of the Importing Member State disagrees with the inspection results specified in Clause 1 of this Article, in certain circumstances, the Importing Member State may request to inspect the production facility in the Exporting Member State subject to the following conditions:

a) Before conducting the production facility inspection, the competent authority of the Importing Member State must send a notification letter to:

- The exporter or manufacturer whose factory will be inspected;

- The competent authority of the Exporting Member State;

- The importer of the goods subject to inspection. The notification letter must be complete and include the following contents:

- Name and detailed information of the competent authority requesting the inspection;

- Name of the exporter or manufacturer to be inspected;

- Expected inspection date;

- Purpose and scope of the inspection including the parameters of the goods to be verified;

- Name and position of the Importing Member State's official conducting the inspection. Prior to conducting the production facility inspection, the competent authority of the Importing Member State must obtain written consent from the exporter or manufacturer to be inspected.

b) In case no approval letter for inspection is received from the exporter or manufacturer within thirty days from the date they receive the inspection notification letter as stipulated in Point a of Clause 2 of this Article, the Importing Member State may refuse preferential treatment for the goods subject to inspection.

c) Upon receiving the request for production facility inspection, the competent authority of the Exporting Member State may delay the inspection and notify the competent authority of the Importing Member State. In the absence of any delay, the production facility inspection shall be conducted according to the laws of the Exporting Member State within sixty days from the date of receipt of the inspection notification letter. This period may be extended if both parties agree. The production facility inspection must be agreed upon by the competent authorities of the Importing Member State and the Exporting Member State.

d) The competent authority of the Importing Member State conducting the production facility inspection must send the decision on the origin of the goods to the exporter or manufacturer and the competent authority of the Exporting Member State.

đ) The suspension of preferential treatment will continue based on the decision on the origin of the goods as stipulated in Point d of Clause 2 of this Article.

e) The exporter or manufacturer has thirty days from the date of receipt of the decision on non-origin to provide additional information to the competent authority of the Importing Member State to prove the origin of the goods. If the goods are still determined to have no origin, the final decision will be sent by the competent authority of the Importing Member State to the competent authority of the Exporting Member State within thirty days from the date of receipt of the additional information from the exporter or manufacturer.

g) The inspection process for production facilities shall include on-site inspections and the determination of whether goods have origin or not must be conducted and reported to the competent authority of the Exporting Member within 180 days from the date of receipt of the notification of inspection as stipulated in point a, Clause 2 of this Article. During the waiting period for the results of the production facility inspection, the suspension of preferential tariff treatment as provided for in point c, Clause 1 of this Article shall apply.

3. Each Member shall keep confidential information and documents related to the verification of the origin of goods as provided for in Clauses 1 and 2 of this Article, and protect such information from disclosure that may harm the competitive position of the party providing the information. Such information and documents shall not be used for other purposes, including in administrative or criminal proceedings without the written consent of the Member providing the information.

Article 31. Documents applicable for direct shipment provisions

In accordance with Article 11 of this Circular, where goods are transported through the territory of one or more non-Member countries, the following documents must be submitted to the competent authority of the Importing Member:

1. Transport documents or related transport documents issued in the Exporting Member.

2. AHK Form A Certificate issued by the relevant issuing authority of the Exporting Member, except where the submission of the Certificate is exempted under Article 27 of this Circular.

3. A copy of the original commercial invoice of the goods.

4. Documents proving that the transportation complies with the requirements set out in point b, Clause 2 of Article 11 of this Circular.

Article 32. Exhibition Goods

1. Goods sent from an Exporting Member for exhibition in another Member and sold during or after the exhibition for importation into a Member shall enjoy preferential tariff treatment under AHKFTA provided that such goods meet the requirements of the rules of origin as specified in this Circular and provide proof to the relevant customs authority of the Importing Member regarding the following matters:

a) The exporter shipped these goods from the territory of the Exporting Member to the Member hosting the exhibition and exhibited them there;

b) The exporter has sold or transferred these goods to the recipient in the Importing Member;

c) These goods were transported to the Importing Member during or immediately after the exhibition in their original condition as when they were dispatched for the exhibition.

2. To comply with the provisions of Clause 1 of this Article, the AHK Form A Certificate shall be submitted to the competent authority of the Importing Member, clearly indicating the name and address of the exhibition venue. The competent authority or the relevant customs authority of the Member hosting the exhibition may issue a form of certification together with the documents prescribed in Clause 4 of Article 31 of this Circular to confirm the goods and the conditions for participation in the exhibition.

3. Clause 1 of this Article applies to any exhibition, trade fair, agricultural fair, handicraft fair, or similar display or sale at stores or business premises for the purpose of selling products, and places where the products remain under the control of the customs authorities throughout the exhibition period.

Article 33. Invoice issued by a third party

1. The competent authority of the Importing Member shall accept the AHK Certificate of Origin in cases where the commercial invoice is issued by a company with its headquarters located in a third country or by an exporter representing that company, provided that the goods comply with the origin rules set forth in this Circular.

2. The exporter must mark the box labeled "Third party invoicing" and indicate the name and country/entity of the company issuing the commercial invoice on the AHK Certificate of Origin.

Chapter IV IMPLEMENTATION PROVISIONS

Article 34. Implementation Organization

1. Any guidance, explanations, and clarifications related to the Chapter on Rules of Origin in this Circular, which are agreed upon alternately or unanimously by the Members at the Implementation Reports of the Joint Committee and the Sub-Committee on Rules of Origin under the AHKFTA framework, shall be considered the basis for the issuance of Certificates of Origin and customs authorities to implement.

2. The contents stipulated in Clause 1 of this Article shall be communicated to the authorities and organizations issuing Certificates of Origin and customs authorities through the lead agency implementing the AHKFTA pursuant to Article 3 of Resolution No. 03/NQ-CP dated January 7, 2019 of the Government approving the ASEAN-Hong Kong, China Free Trade Agreement.

Article 35. Implementation Provisions

1. This Circular takes effect from December 23, 2019.

2. Authorities and organizations issuing Certificates of Origin may issue the AHK Certificate of Origin for Vietnamese exported goods before this Circular takes effect to enjoy preferential tariffs according to the AHKFTA and the regulations of the Importing Member.

3. The customs authority of the Importing Member shall accept the AHK Certificate of Origin issued from June 11, 2019. The procedures for verifying the AHK Certificate of Origin to enjoy preferential tariffs shall be carried out in accordance with the AHKFTA, the provisions of Chapter III of this Circular, and other relevant legal documents./.