Circular No. 38/2018/TT-BCT on the implementation of origin certification for goods under the Generalized System of Preferences (GSP) of the European Union, Norway, Switzerland, and Turkey

 

 

CIRCULAR

Regulations on the implementation of origin certification for goods under the Generalized System of Preferences (GSP) of the European Union, Norway, Switzerland, and Turkey

common customs tariffs of the European Union, Norway, Switzerland, and Turkey

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

Pursuant to Decree No. 98/2017/ND-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;

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

The Minister of Industry and Trade issues this Circular on the implementation of origin certification for goods under the GSP of the European Union, Norway, Switzerland, and Turkey. This Circular regulates the origin certification for goods under the GSP of the European Union, Norway, Switzerland, and Turkey.

PART I

GENERAL PROVISIONS

Origin certification for goods under the GSP is the declaration and commitment by traders regarding the origin of exported goods to the European Union, Norway, Switzerland, and Turkey.

Article 2. Applicability

This Circular applies to:

1. Trader;

2. Relevant agencies, organizations, and individuals.

1. Origin certification document for goods under the GSP is a commercial document issued by traders reflecting the declaration and commitment on the origin of goods that comply with the rules of origin under the GSP.

2. is an agency or organization authorized or assigned by the Ministry of Industry and Trade to receive and register REX codes. 1. Traders wishing to enjoy preferential tariffs when exporting to the European Union, Norway, Switzerland, and Turkey must register for a REX code at the organization receiving REX code registrations and issue origin certification documents according to the GSP regulations.

3. REX code is the code registered by traders to issue certificates of origin for goods under the GSP.

Chapter II

REGISTRATION AND RECOVERY OF REX CODES

3. For traders who have registered their trader files in accordance with Article 13 of Decree No. 31/2018/NĐ-CP and will register for a REX code at the same organization where they registered their trader files, such traders are not required to resubmit the trader file specified in Clause 2 of this Article when registering for a REX code.

4. Within six months from the date this Circular takes effect, the organization receiving REX code registrations shall announce its electronic address for traders to choose to register for a REX code online or submit registration files to the organization receiving REX code registrations. Six months after the date this Circular takes effect, the registration of REX codes shall be fully conducted online.

5. Traders entrusted to export goods on behalf of other traders to the European Union, Norway, Switzerland, and Turkey may not use their own REX codes to issue origin certification documents under the GSP for the exported goods of the entrusting traders.

g) Repeated failure to fully declare information as prescribed or to upload origin certification documents for goods under the GSP and related documents for export consignments as stipulated in Clause 5, Article 6 of this Circular after being reminded in writing or through equivalent legally binding means by the organization receiving REX code registrations;

6. The structure of the REX code shall comply with the GSP regulations and the guidance of the organization accepting registration of REX codes.

2. The revocation of REX codes shall be carried out by the organization receiving REX code registrations. The organization receiving REX code registrations shall retain information on the revocation of REX codes for ten years from the end of the year in which the REX codes were revoked.

1. A trader shall have their REX code revoked if they fall under any of the following circumstances:

a) Have been dissolved or declared bankrupt in accordance with the provisions of the law;

b) Announced that they will no longer export goods to benefit from GSP;

c) Fail to meet the GSP requirements;

d) Declare inaccurate origin information for goods;

đ) Forge certificates of origin for goods;

e) Fail to update information as prescribed in Clause 5, Article 11 of this Circular;

3. In cases where REX codes are revoked improperly, the organization receiving REX code registrations shall notify traders that they may continue to use their original REX codes and are permitted to issue origin certification documents for export consignments to the European Union, Norway, Switzerland, and Turkey during the period of REX code revocation.

h) Violate other regulations or engage in fraud regarding the origin of goods.

4. In cases where traders violate provisions from point c to point g of Clause 1 of this Article, in addition to handling violations according to laws on the origin of goods, traders may only be considered for reissuing new REX codes at least thirty days after the revocation.

5. In cases where traders violate the provisions of point h of Clause 1 of this Article, in addition to handling violations according to laws on the origin of goods, traders may only be considered for reissuing new REX codes at least one hundred eighty days after the revocation.

6. The re-registration of REX codes as stipulated in Clauses 4 and 5 of this Article shall be carried out in accordance with Article 4 of this Circular after traders have rectified the situation and submitted a written commitment not to repeat the violation to the organization receiving REX code registrations. Traders using new REX codes to certify the origin of exported goods to the European Union, Norway, Switzerland, and Turkey shall not be allowed to issue subsequent origin certification documents for export consignments during the period of REX code revocation.

2. In cases where it cannot be issued at the time of export, the origin certification document for goods under the GSP may be issued retrospectively and marked "retrospective statement." Subsequent documents must be submitted to the customs authority of the importing country within two years from the date of importation.

a) Not yet assembled or disassembled according to Rule 2a of the Harmonized System of Description and Coding of Goods as stipulated in Appendix 2 of Circular No. 65/2017/TT-BTC dated June 27, 2017 of the Ministry of Finance promulgating the List of Exported and Imported Goods in Vietnam (hereinafter referred to as Circular No. 65/2017/TT-BTC); or

Chapter III

CERTIFICATES OF ORIGIN FOR GOODS UNDER GSP

Article 6. Certificates of Origin for Goods Under GSP

1. Certificates of Origin for Goods Under GSP shall be issued by traders for each consignment and shall be valid for twelve months from the date of issuance.

4. Origin certification documents for goods under the GSP must contain information about the REX code, trader, goods, and declaration and commitment on origin in English, French, or Spanish according to the model attached as an appendix to this Circular.

3. Certificates of Origin for Goods Under GSP may be issued for multiple export consignments in cases where goods meet the following conditions:

5. Within three working days from the date of issuance, traders must declare and upload origin certification documents for goods under the GSP and related documents for export consignments as stipulated from point c to point h of Clause 1 of Article 15 of Decree No. 31/2018/NĐ-CP on the website of the organization receiving REX code registrations.

b) Belong to Part XVI or XVII or Group 7308 or 9406 of the Harmonized System of Description and Coding of Goods as stipulated in Appendix 2 of Circular No. 65/2017/TT-BTC; or

c) Are exported for assembly.

4. The certificate of origin for goods under the Generalized System of Preferences (GSP) must contain information on the REX code, trader, goods, declaration content, and origin commitment in English, French, or Spanish according to the model attached as an appendix to this Circular.

6. The origin certification documents for goods under the Generalized System of Preferences (GSP) shall be revoked or canceled in the cases specified from point c to point h of Clause 1, Article 5 of this Circular. The organization receiving applications for REX code registration shall notify relevant agencies and organizations about the revocation or cancellation of the origin certification documents for goods under the GSP in such cases.

Article 7. Cases Exempted from Origin Certificates under GSP

1. Origin certification documents for goods under the Generalized System of Preferences (GSP) shall be exempted when the small packaged goods have a total value not exceeding 500 (five hundred) EUR or when personal luggage has a total value not exceeding 1,200 (one thousand two hundred) EUR.

2. Goods mentioned in Clause 1 of this Article shall not be imported for commercial purposes but only for personal use and such imports shall occur infrequently.

Article 8. Inspection and Verification of Origin of Goods

1. Inspection and verification of origin of goods shall be carried out in the following cases:

a) When the competent authority of the importing country requests inspection and verification of origin of goods.

b) When domestic competent authorities conduct inspection, verification, risk management, and prevention of fraudulent origin of goods.

c) When other domestic competent authorities request cooperation if there is suspicion or discovery of signs of fraudulent origin of goods.

2. Inspection and verification of origin of goods shall be conducted in accordance with the regulations on inspection and verification of origin of goods under GSP and the guidelines of the Ministry of Industry and Trade.

Chapter IV

RESPONSIBILITIES OF RELATED AUTHORITIES AND BUSINESS ENTITIES

Article 9. Responsibilities of Units Under the Ministry of Industry and Trade

a) Drafting and submitting to the competent authority for issuance, or issuing within its competence, documents implementing the certification of origin of goods under GSP.

b) Submit to the Ministry of Industry and Trade for issuance of authorization documents or delegate tasks related to the acceptance of REX code registrations to relevant agencies and organizations.

c) Serve as the contact point with agencies and organizations under the European Union, Norway, Switzerland, and Turkey for the implementation of origin certification for goods under the GSP.

d) Lead and coordinate with relevant agencies, organizations, and individuals to inspect the implementation of origin certification for goods under the GSP.

2. Responsibilities of the Department of E-commerce and Digital Economy

a) Cooperating with organizations receiving REX code registrations to implement an electronic data collection system for the certification of origin of goods under GSP to serve the management work of the Ministry of Industry and Trade.

b) Cooperating with related agencies and units to handle technical issues arising during implementation.

1. Implement the registration and revocation of REX codes as stipulated in this Circular and laws on the origin of goods; disseminate information on the implementation of origin certification for goods under the GSP; urge, guide, and answer questions from traders to ensure transparency, fairness, and convenience.

2. Report to the Import-Export Department quarterly and annually on the implementation of origin certification for goods under the GSP; report promptly when there are changes or upon request of the Import-Export Department.

3. Proactively monitor, supervise, and inspect the implementation of origin certification for goods under the GSP by traders, organizations, and individuals concerned.

4. Manage, store, and retain documents, files, and electronic data for a minimum of five years from the end date of the year of issuance for origin certification documents for goods under the GSP.

Article 11. Responsibilities of Business Entities

1. Implementing the provisions on the certification of origin of goods in this Circular and the laws on the origin of goods.

2. Being responsible before the law for the accuracy and honesty of the declared information.

3. Reporting to the organization receiving REX code registration when the origin certificate under GSP is refused by the customs authority of the importing country for tariff preference benefits.

4. Notify the organization accepting REX code registrations of any changes to the information declared in Clause 1, Article 4 or point b of Clause 1, Article 5 of this Circular. In the absence of changes, the trader shall confirm the information every two years.

5. Storing export shipment files certified with the origin certificate under GSP for at least five years from the end of the year of issuance of the origin certificate under GSP.

Chapter V

IMPLEMENTATION PROVISIONS

Article 12. Effective Date

1. This Circular takes effect from December 14, 2018.

2. Origin certification for goods under the GSP shall apply from January 1, 2019. Traders without a REX code will still be issued Certificate of Origin Form A for exported goods to the European Union, Norway, Switzerland, and Turkey during the transition period as prescribed by the European Commission.