Circular No. 38/2018/TT-BTC on the determination of the origin of exported and imported goods

CIRCULAR

Provisions on determining the origin of exported and imported goods

 

Based on the Customs Law No. 54/2014/QH13 dated June 23, 2014;

WHEREAS, Law on Export Tax and Import Tax No. 107/2016/QH13 dated April 6, 2016;

Based on the Law on Management of Foreign Trade No. 05/2017/QH14 dated June 12, 2017;

Based on Decree No. 08/2015/NĐ-CP dated January 21, 2015 of the Government detailing and providing implementation measures for the Customs Law regarding customs procedures, inspection, supervision, and control; Decree No. 59/2018/NĐ-CP dated April 20, 2018 of the Government amending and supplementing certain articles of Decree No. 08/2015/NĐ-CP of the Government detailing and providing implementation measures for the Customs Law regarding customs procedures, inspection, supervision, and control;of the Government detailing and providing implementation measures for the Customs Law regarding customs procedures, inspection, supervision, and control;

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;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017, issued by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director General of the General Department of Customs,

The Minister of Finance issues this Circular to provide provisions on determining the origin of exported and imported goods.

 

PART I

GENERAL PROVISIONS

Article 1.Scope of application

This Circular stipulates the file for pre-determining origin, submission of certificates of origin for exported and imported goods; procedures, contents of inspection, determination, verification of the origin of exported and imported goods.

Article 2.Applicability

1. The declarant.

2. Customs authorities, customs officers.

3. Organizations and entities issuing Certificates of Origin; traders self-certifying the origin of goods.

4. Other organizations and individuals having rights and obligations related to the determination of the origin of exported and imported goods.

Chapter II

FILE FOR PRE-DETERMINING ORIGIN,

SUBMISSION OF CERTIFICATES OF ORIGIN

EXPORTED AND IMPORTED GOODS

Article 3.File requesting pre-determination of origin of goods

1. Organizations and individuals requesting the customs authority to pre-determine the origin of goods intended for export or import according to Article 24 of Decree No. 08/2015/NĐ-CP dated January 21, 2015 of the Government detailing and providing implementation measures for the Customs Law regarding customs procedures, inspection, supervision, and control (hereinafter referred to as Decree No. 08/2015/NĐ-CP), Clause 11 of Article 1 of Decree No. 59/2018/NĐ-CP dated April 20, 2018 of the Government amending and supplementing certain articles of Decree No. 08/2015/NĐ-CP (hereinafter referred to as Decree No. 59/2018/NĐ-CP) shall submit the file requesting pre-determination of origin of goods to the General Department of Customs through the Electronic Data Processing System, including:

a) Application form for pre-determination of origin of exported and imported goods according to the information criteria in Form No. 01/CT/XĐTXX/GSQL attached as Appendix I to this Circular;

b) List of raw materials and components used to produce goods including the following information: name of goods, commodity code, origin of raw materials and components constituting the product, CIF price or equivalent price of raw materials and components provided by the manufacturer or exporter: 01 copy;

c) Brief description of production process of goods or Certificate of component analysis provided by the manufacturer: 01 copy;

d) Catalogue or images of goods: 01 copy.

In case the Electronic Data Processing System has not met requirements or encountered errors, the declarant shall submit 01 set of paper files to the General Department of Customs comprising the documents specified in Points b, c, and d of this clause and the Application form for pre-determination of origin of exported and imported goods according to Form No. 02/XĐTXX/GSQL attached as Appendix I to this Circular.

2. Pre-determination of origin of exported and imported goods shall be carried out in accordance with the provisions of Article 28 of the Customs Law, Article 24 of Decree No. 08/2015/NĐ-CP, and Clause 11 of Article 1 of Decree No. 59/2018/NĐ-CP.

 

Article 4.Documents certifying the origin of imported goods to be submitted to the customs authority

1. Documents certifying the origin of imported goods must be submitted to the customs authority for goods imported according to Clause 1 of Article 26 of Decree No. 31/2018/NĐ-CP dated March 8, 2018 of the Government detailing the Law on Management of Foreign Trade regarding the origin of goods (hereinafter referred to as Decree No. 31/2018/NĐ-CP), including:

a) Goods originating from countries, groups of countries, or territories with preferential tariff agreements in trade relations with Vietnam; goods from duty-free zones imported into the domestic market meeting the conditions of originating from countries, groups of countries, or territories with preferential tariff agreements in trade relations with Vietnam, if the declarant wishes to enjoy the special preferential tariff rate, they must submit to the customs authority one of the following documents certifying the origin of goods according to Vietnamese law and international treaties to which Vietnam is a party:

a.1) Certificate of Origin (hereinafter referred to as C/O): 01 original copy bearing the phrase "ORIGINAL", except where international treaties to which Vietnam is a party provide otherwise; or

a.2) Self-certification of origin: 01 original copy;

b) Goods subject to import management regimes according to Vietnamese law or international treaties between two or more parties of which Vietnam and the countries, groups of countries, or territories are members; goods being reported as suspected of being imported from countries, groups of countries, or territories listed under United Nations Security Council resolutions, the declarant must submit to the customs authority: 01 original C/O;

c) Goods subject to Vietnam or international organizations' reports as being at risk of causing harm to social safety, public health, or environmental hygiene requiring control, the declarant must submit to the customs authority: 01 original C/O;

d) Goods subject to Vietnam's reports as being at the time when anti-dumping duties, countervailing duties, safeguard measures, quota tariffs, or quantity restrictions are applied, to determine that the goods are not subject to these taxes, the declarant must submit to the customs authority: 01 original C/O.

Imported goods required to submit documents certifying the origin as specified in Points b, c, and d of Clause 1 of this Article shall be implemented according to the announcement of specialized ministries and the Ministry of Finance.

2. Documents certifying the origin of imported goods to be submitted to the customs authority for goods imported according to Article 24 of the Customs Law shall be implemented according to the list of goods specified in Appendix II attached to this Circular.

Annually or as necessary, the Minister of Finance will announce decisions to adjust this list.

3. In cases where electronic C/Os are transmitted through the National Single Window Portal, the declarant does not need to submit paper C/Osas stipulated in this Article.

4. In case the origin certificate for goods is not submitted as prescribed in this Article, the following shall be implemented:

a) In case the customs declaration person does not submit the origin certificate for goods as prescribed at point a, Clause 1, Article 4 of this Decree, imported goods shall apply the preferential (MFN) or general tariff rate and be cleared according to the regulations.

When submitting the supplementary origin certificate for goods within the time limit stipulated in Clause 1, Article 7 of this Circular, the customs declaration person shall declare supplementary according to the special preferential tariff rate; in case the amount of tax paid exceeds the amount of tax payable, it shall be handled according to the regulations on excess tax payment.

b) In case the customs declaration person does not submit the origin certificate for goods as prescribed at points b and c, Clause 1 and Clause 2 of this Article, the goods shall not be cleared and shall be processed according to the provisions of the law.

For goods prescribed at points b and c, Clause 1 of this Article, if the customs declaration person cannot submit the origin certificate for goods but the goods are concluded by the competent authority of Vietnam to meet the import conditions or are permitted to be imported under specialized laws, the customs authority shall clear the goods according to the regulations.

c) In case the customs declaration person does not submit the origin certificate for goods as prescribed at point d, Clause 1 of this Article, the goods must apply anti-dumping duties, countervailing duties, safeguard duties, or non-quota tariff rates for the entire consignment and be cleared according to the regulations.

Article 5.Declaration of Origin Certificate for Goods

1. In case the origin certificate for goods is submitted at the time of customs procedures:

a) For electronic customs declarations: the customs declaration person declares the reference number and date of issuance of the origin certificate for goods on the electronic customs declaration form according to the guidance provided in Appendix II issued together with Circular No. 38/2015/TT-BTC dated March 25, 2015, of the Minister of Finance on customs procedures; customs inspection and supervision; export tax, import tax, and tax management for exported and imported goods (hereinafter referred to as Circular No. 38/2015/TT-BTC) amended and supplemented by Appendix issued together with Circular No. 39/2018/TT-BTC dated April 20, 2018, amending and supplementing some articles of Circular No. 38/2015/TT-BTC (hereinafter referred to as Circular No. 39/2018/TT-BTC).

b) For paper customs declarations: the customs declaration person declares the reference number and date of issuance of the origin certificate for goods in the "Accompanying Documents" section of the paper customs declaration form according to the guidance provided in Appendix IV issued together with Circular No. 38/2015/TT-BTC.

2. In case the origin certificate for goods is not submitted at the time of customs procedures:

a) For electronic customs declarations: at the time of customs procedures, the customs declaration person declares late submission of the origin certificate for goods on the electronic customs declaration form according to the guidance provided in the Appendix issued together with Circular No. 39/2018/TT-BTC.

When submitting the supplementary origin certificate for goods as prescribed in Clause 1, Article 7 of this Circular, the customs declaration person shall declare the reference number and date of issuance of the origin certificate for goods on the supplementary declaration form after clearance according to the guidance provided in the Appendix issued together with Circular No. 39/2018/TT-BTC.

b) For paper customs declarations: at the time of customs procedures, the customs declaration person declares late submission of the origin certificate for goods in the "Accompanying Documents" section of the customs declaration form according to the guidance provided in Appendix IV issued together with Circular No. 38/2015/TT-BTC. When submitting the supplementary origin certificate for goods as prescribed in Clause 1, Article 7 of this Circular, the customs declaration person shall declare supplementary the reference number and date of issuance of the origin certificate for goods according to Form No. 03/KBS/GSQL in the Appendix issued together with Circular No. 39/2018/TT-BTC.

Article 6.Cases Not Required to Submit Origin Certificates for Goods

1. Exported goods.

2. Imported goods not falling within the scope of goods prescribed in Article 4 of this Circular.

3. Imported goods falling within the cases exempted from submitting origin certificates for goods according to international treaties to which Vietnam is a party.

4. For goods not falling within the cases required to submit origin certificates for goods as prescribed in Clause 1 and Clause 2 of Article 4 of this Circular, but the customs declaration person requests to submit the origin certificate for goods at the time of customs procedures and implements the declaration according to Clause 1 of Article 5 of this Circular, the customs authority shall accept and check the origin certificate for goods according to the regulations.

Article 7.Time of submission of certificates of origin for imported goods

1. For goods prescribed at point a, Clause 1 of Article 4 of this Circular:

a) The customs declaration person submits the origin certificate for goods at the time of customs procedures;

b) In case there is no origin certificate for goods at the time of customs procedures, the customs declaration person declares supplementary and submits the origin certificate for goods within thirty (30) days from the date of registering the customs declaration, except for imported goods with EAV CO, the customs declaration person submits the origin certificate for goods at the time of customs procedures.

For imported goods with VK (KV) CO, in case there is no origin certificate for goods at the time of customs procedures, the customs declaration person declares supplementary and submits the origin certificate for goods within one year from the date of registering the customs declaration.

c) In the case where at the time of customs clearance procedures, the declarant declares the MFN tariff rate, without applying the special preferential tariff rate. After the goods have been cleared, if the customs authority conducts post-clearance inspection and re-determines the HS code or if the declarant discovers and supplements the HS code leading to a change in the import tariff rate, the declarant may submit additional origin certification documents within the validity period of such documents to be considered for application of the special preferential tariff rate. The submission time for the origin certification documents is the time when the declarant submits the supplementary declaration form after the customs authority issues the inspection conclusion or when the declarant discovers the error on their own. Violation handling shall be carried out in accordance with the provisions of the law.

For the case stipulated in point c of this clause, if the declarant has submitted the origin certification documents at the time of customs clearance procedures as prescribed in point a of this clause or has supplemented the origin certification documents as prescribed in point b of this clause and such documents have been verified for validity by the customs authority during post-clearance inspection or audit as prescribed, the customs authority will compare the results of the origin determination at the initial import clearance stage with the results of the re-determined HS code to consider applying the special preferential tariff rate if the re-determination of the HS code does not alter the essential nature of the previously determined origin of the goods.

d) In the case where at the time of customs clearance procedures, the imported goods are subject to investment incentives and are exempt from import tax. After the goods have been cleared, if the customs authority conducts post-clearance inspection and determines that the goods do not qualify for investment incentives or if the declarant discovers that the goods do not qualify for investment incentives leading to a change in the import tax liability, the declarant may submit additional origin certification documents within the validity period of such documents to be considered for application of the special preferential tariff rate. The submission time for the origin certification documents is the time when the declarant submits the supplementary declaration form after the customs authority issues the inspection conclusion or when the declarant discovers that the imported goods do not qualify for investment incentives. Violation handling shall be carried out in accordance with the provisions of the law.

2. For goods specified in points b, c, and d of Article 1 and Article 2 of this Circular, the declarant must submit the C/O at the time of customs clearance procedures.

3. For goods of priority enterprises:

a) In the case where there is an origin certification document at the time of customs clearance procedures, the declarant shall declare according to the provisions of Clause 1, Article 5 of this Circular and submit the origin certification document together with the tax payment deadline as prescribed in Clause 2, Article 9 of the Law on Export Tax and Import Tax, no later than the tenth day of the following month.

b) In the case where there is no origin certification document at the time of customs clearance procedures, the declarant shall declare according to the provisions of Clause 2, Article 5 of this Circular and submit the origin certification document as prescribed in Point b, Clause 1 of this Circular.

The customs authority will accept the origin certification document and conduct verification according to the prescribed regulations.

4. Origin certification documents submitted to the customs authority must still be within their validity period, including newly issued documents, corrected documents, subsequent documents, or certified copies as prescribed by international treaties to which Vietnam is a party.

5. The time of customs clearance procedures is determined from the time of registering the customs declaration to the time of clearing the goods. In the case of cargo release, the time of customs clearance procedures is determined from the time of registering the customs declaration to the time of cargo release.

Chapter III

INSPECTION, DETERMINATION, VERIFICATION

ORIGIN OF EXPORT GOODS

Article 8.Inspection, determination of origin of export goods

1. The customs authority inspects and determines the origin of export goods based on reviewing the declarant's declaration, documents in the customs file, and the results of actual inspection of the goods (actual inspection of goods applies to cases requiring actual inspection during clearance or conditions for actual inspection after the goods have been cleared).

2. If the Customs Sub-Department where the customs declaration is registered has sufficient grounds to determine that the declared origin of the goods is incorrect, it shall handle the violation according to the regulations and require the declarant to supplement the declaration as prescribed in Clause 9, Article 1 of Circular No. 39/2018/TT-BTC; if there is sufficient evidence to determine that the exported goods involve fraudulent origin or illegal transshipment, the Customs Sub-Department where the customs declaration is registered shall handle it according to the regulations.

If the Customs Sub-Department conducting the actual inspection of the goods (different from the Customs Sub-Department where the customs declaration is registered) has sufficient grounds to determine that the origin of the goods is inconsistent with the declarant's declaration, it shall impose penalties according to the regulations and transfer the handling results to the Customs Sub-Department where the customs declaration is registered to require the declarant to supplement the declaration as prescribed in Clause 9, Article 1 of Circular No. 39/2018/TT-BTC.

3. If the Customs Sub-Department where the customs declaration is registered has grounds to suspect the origin of the exported goods or based on information about illegal transshipment, it shall proceed as follows:

a) The Customs Sub-Department where the customs declaration is registered requests the declarant to provide documents proving the origin of the exported goods, including:

a.1) Origin certification document: 01 copy; or

a.2) Production process: 01 copy; and

a.2.1) Detailed cost sheet of raw materials, input materials, value of output products, invoices, and purchase and sale documents for raw materials and input materials for cases applying the "Percentage Value" criterion: 01 copy; or

a.2.2) A detailed list of raw materials, inputs, and outputs for the case where the "Change of Harmonized System Code" origin criterion is applied: one copy;

b) Within thirty (30) days from the date the customs authority requests to provide proof of origin documents, the declarant shall submit these documents to the Electronic Data Processing System of Customs. In cases where the Electronic Data Processing System of Customs does not meet requirements or malfunctions, the declarant shall provide paper copies of the documents specified in point a of this clause to the Customs Sub-Department where the customs declaration is registered;

c) Where the Customs Sub-Department where the customs declaration is registered has grounds to doubt the authenticity of the origin certification document or the accuracy of information related to the origin of goods recorded on the origin certification document, and there are signs that the declarant may be attempting to dispose of relevant files, documents, data concerning the verification and determination of the origin of exported goods, it shall report and propose the Provincial or Municipal Customs Department to immediately conduct an inspection at the production facility according to Article 10 of this Circular or verify with the competent agency or organization issuing the origin certification document according to Article 9 of this Circular;

d) Where the declarant cannot present the proof of origin document for exported goods within the time limit specified in point b of this clause or the provided document lacks sufficient basis to determine the origin of goods, the Customs Sub-Department where the customs declaration is registered shall report and propose the Provincial or Municipal Customs Department to conduct an inspection and verification at the production facility of exported goods according to Article 10 of this Circular.

4. While awaiting the results of the verification and determination of the origin of goods, the export procedures for such goods shall be processed and cleared according to regulations.

Article 9.Verificationprocedures at theagency, organization issuing the origin certification document

1. The Provincial or Municipal Customs Department where the customs declaration is registered shall send a request for verification along with suspicious information related to the origin of goods to the agency or organization issuing the origin certification document through the Electronic Data Processing System of Customs; in cases where the Electronic Data Processing System of Customs does not meet requirements or malfunctions, it shall be sent by paper letter.

2. Upon receiving the verification result within sixty (60) days from the date of sending the verification request letter, within three (3) working days, the Provincial or Municipal Customs Department shall notify the Customs Sub-Department where the customs declaration is registered to handle according to regulations and inform the declarant, while reporting the verification result to the General Department of Customs.

3. If no verification result is received within sixty (60) days from the date of sending the verification request letter, the Provincial or Municipal Customs Department where the customs declaration is registered shall conduct an inspection at the production facility according to Article 10 of this Circular.

Article 10.Inspection procedures at the production facility of exported goods

1. Issuing the Inspection Decision

a) The Director of the Provincial or Municipal Customs Department shall issue the Inspection Decision for the production facility of exported goods according to Appendix III issued together with this Circular;

b) The Inspection Decision shall be sent to the producer through the Electronic Data Processing System of Customs. In cases where the Electronic Data Processing System of Customs does not meet requirements or malfunctions, it shall be directly sent via registered mail or fax to the producer at least five (5) working days before conducting the inspection.

At least three (3) working days before the inspection date stated in the Inspection Decision, if the producer submits a written request to change the inspection date, the issuer of the Inspection Decision may consider changing the date once according to the producer's request. The inspection date is the date stated in the Inspection Date Change Decision sent to the producer;

c) Where the production facility is not under the jurisdiction of the Provincial or Municipal Customs Department where the customs declaration is registered, or the exporter is not the producer, the Provincial or Municipal Customs Department where the customs declaration is registered shall report to the General Department of Customs to coordinate with the Ministry of Industry and Trade to conduct an inspection at the production facility of exported goods according to regulations.

2. The inspection period at the production facility shall not exceed ten (10) working days from the inspection date stated in the Inspection Decision. In complex cases, the issuer of the Inspection Decision may extend the inspection period by no more than ten (10) working days.

Where the producer fails to comply with the Inspection Decision or fails to explain, provide files, documents, data as requested by the customs authority, the customs authority shall proceed to handle the violation according to regulations.

3. Content of inspection

a) Inspect documents belonging to the customs declaration file, purchase contracts, or processing contracts (if processing for foreign traders), or value-added tax invoices for purchasing domestic raw materials and inputs; export permits (if applicable); detailed lists of exported goods meeting preferential or non-preferential origin criteria according to forms prescribed by the Ministry of Industry and Trade; declarations of origin by the manufacturer or supplier of raw materials and inputs with origin or goods produced domestically according to forms prescribed by the Ministry of Industry and Trade in cases where those raw materials and inputs are used for subsequent processes to produce other goods; other related documents, data;

b) Inspect the production process.

For documents belonging to the customs declaration file, the customs authority does not require the producer to present paper copies.

4. Prepare the Inspection Record

The entire inspection process and content shall be recorded in the Inspection Record between the legal representative of the producer and the inspection team.

5. Inspection Results

a) The customs authority sends the inspection results through the electronic data processing system to the producer no later than five working days from the end of the inspection for the producer to be aware and provide explanations; in cases where the electronic data processing system does not meet requirements or has errors, it shall be sent in paper form.

b) The producer sends the explanation content to the customs authority through the electronic data processing system within five working days from the date of receiving the inspection results; in cases where the electronic data processing system does not meet requirements or has errors, it shall be sent in paper form. If the customs authority does not receive the explanation opinion within this time limit, the customs authority will handle based on the existing files according to the regulations.

c) In complex cases where there is insufficient basis for conclusion, the customs authority may seek the professional opinion of the competent authority. No later than fifteen days from the date of receipt of the written opinion of the competent authority, the customs authority issues the inspection conclusion.

Article 11.Handling the inspection and verification results at the agency or organization issuing the origin certificate for goods, production facility for exported goods

1. In cases where information, documents, certificates, materials, data, inspection results at the production facility, verification at the agency or organization issuing the origin certificate for goods, and the declaration content of the declarant sufficiently prove that the declared origin of the goods is appropriate, the customs authority accepts the declaration content of the declarant regarding the origin of the goods.

          2. In cases where information, documents, certificates, materials, data, inspection results at the production facility, verification at the agency or organization issuing the origin certificate for goods, and the declaration content of the declarant do not sufficiently prove that the declared origin of the goods is appropriate, the customs authority handles based on the existing files according to the regulations and requests the declarant to declare the accurate origin according to the inspection and verification results, and the origin determination of the customs authority.

3. In cases where there is a basis to suspect that the declarant declares the origin of the goods inaccurately for illegal transfer, tax evasion, anti-dumping duties, countervailing duties, safeguard duties, or other trade defense measures, the Customs Department of the province or city reports and proposes to the General Department of Customs to coordinate with the Ministry of Industry and Trade to handle according to the regulations.

Article 12.Post-clearance inspection for the origin of exported goods

1. The authority, procedures for post-clearance inspection for the origin of exported goods shall be implemented in accordance with the provisions of the law on customs.

For the verification of the origin of exported goods, the authorized verifier is the person issuing the post-clearance inspection decision.

2. The content, method, and handling of the inspection and verification results for the origin of exported goods shall be carried out in accordance with the provisions of this Circular.

 

Chapter IV

INSPECTION, DETERMINATION, VERIFICATION OF ORIGIN

GOODS IMPORT EXPORT

Article 13.Basis for inspecting and determining the origin of imported goods

The customs authority inspects and determines the origin of imported goods based on the provisions of the law on origin; international treaties to which Vietnam is a party; circulars guiding the implementation of free trade agreements issued by the Ministry of Industry and Trade; the declaration content of the declarant, the origin certificate, documents in the customs declaration file, and the actual inspection results of imported goods (actual inspection applies to goods that must be inspected during clearance or have conditions for inspection after clearance).

Article 14.Inspection of the format of the origin certificate for imported goods

1. When inspecting the origin certificate, the customs authority checks to determine whether all criteria must be fully declared on the origin certificate and whether the criteria declared on the origin certificate must be consistent with other documents in the customs declaration file. The declarant may not arbitrarily modify the contents on the origin certificate, except in cases where the modification is made by the competent authority, organization, or individual in accordance with the law and the international treaty to which Vietnam is a party.

2. The customs authority accepts the origin certificate issued or issued in the following forms:

a) The origin certificate submitted to the customs authority in accordance with point a, point b, point c, point d clause 1 and clause 2 Article 4 of this Circular in paper or electronic form;

b) The self-certified origin certificate must be in paper form.

3. The origin certificate must bear the signature of the producer or exporter, except in cases where the international treaty to which Vietnam is a party provides otherwise or the origin certificate is issued in electronic form transmitted through the National Single Window Portal.

Article 15.Inspection of the content on the origin certificate

          1. For goods imported from countries, groups of countries, or territories without special preferential agreements on import tariffs in their trade relations with Vietnam, which require submission of an origin certificate under Article 4 of this Circular, the customs authority inspects the declaration of all required criteria on the origin certificate:

a) Exporter;

b) Importer;

c) Means of transport;

d) Description of goods, commodity code;

đ) Quantity, weight, or volume of goods;

e) Country, group of countries, territory of origin of goods;

g) Date/month/year of issuance of the origin certificate;

h) Signature on the origin certificate.

2. For goods imported from countries, groups of countries, or territories with special preferential agreements on import tariffs in their trade relations with Vietnam, the customs authority inspects the declaration of all required criteria on the origin certificate in accordance with the prescribed model in the international treaty to which Vietnam is a party.

3. In case the declarant submits a certificate of origin for the entire consignment but only imports part of the consignment, the customs authority shall accept the certificate of origin for the actually imported goods.

4. Where the actual quantity, weight, or volume of imported goods exceeds that stated on the certificate of origin, the customs authority shall only grant preferential treatment for the quantity, weight, or volume stated on the certificate of origin.

5. For commercial invoices issued by a third party, the customs authority shall verify on the certificate of origin the information about the name, country, group of countries, or territory of the third-party invoice issuer company and the information about the third-party invoice as prescribed in the Free Trade Agreement to which Vietnam is a member.

6. Minor differences that do not affect the validity of the certificate of origin include:

The customs authority shall accept the certificate of origin in cases where there are minor errors or differences between the content declared on the certificate of origin and other documents in the customs declaration if such errors or differences correspond to the actual imported goods, including:

a) Typographical or typing errors that do not change the content declared on the certificate of origin;

b) Differences in marking in the boxes on the Certificate of Origin (C/O): marked by machine or by hand, marked with "x" or "√";

c) Minor differences between the signature on the certificate of origin and the sample signature;

d) Differences in units of measurement on the certificate of origin and other documents in the customs declaration (such as the customs declaration form, invoice, transport document);

đ) Differences in the size of paper of the Certificate of Origin submitted to the customs authority compared to the standard Certificate of Origin;

e) Differences in ink color of the content declared on the certificate of origin;

g) Minor differences in the description of goods on the certificate of origin and other documents;

h) Differences in code numbers on the certificate of origin and the import declaration form, but these differences do not alter the essential origin of the goods and the actually imported goods must match the description on the certificate of origin;

i) Other minor differences agreed upon in international treaties to which Vietnam is a member, as announced by the General Department of Customs.

Article 16.Examination of Backside Certificate of Origin and Non-Diversion Certificate of Origin

1. The customs authority shall accept the backside certificate of origin issued in cases where goods are transported through one or more intermediate countries to Vietnam or the non-diversion certificate of origin issued by the competent authority of Vietnam.

For the case stipulated in point a, Clause 1 of this Circular, the customs authority shall accept the backside certificate of origin provided that the backside certificate of origin is issued by an intermediate country that is a member of the Free Trade Agreement.

2. Information about the origin of goods must be fully reflected in the criteria on the backside certificate of origin. The examination of the backside certificate of origin shall be carried out in accordance with the provisions of this Circular regarding certificates of origin.

Article 17.Examination of Certificates of Origin in Cases of Change in End-Use Purpose, Transfer from Exempted Goods to Taxable Goods, and Registration of Multiple Declarations for One Consignment

1. The customs authority shall examine the certificate of origin submitted by the declarant at the time of changing the end-use purpose, transferring from exempted goods to taxable goods, to consider applying the special preferential tariff rate.

If the declarant has already submitted the certificate of origin at the initial import declaration stage, the customs authority shall check, determine the origin, and compare it with the results of the initial import declaration to consider applying the special preferential tariff rate. The declarant must complete the procedure for changing the end-use purpose and transferring domestic consumption at the Customs Sub-Department where the initial import declaration was registered, in accordance with Article 21 of Circular No. 38/2015/TT-BTC amended and supplemented by Clause 10 of Article 1 of Circular No. 39/2018/TT-BTC. The goods must be confirmed as not having participated in production or processing (ensuring the originality of the origin) since the date of registration of the initial import declaration. The certificate of origin must remain valid at the time of changing the end-use purpose and transferring domestic consumption, except where otherwise provided in the Free Trade Agreement to which Vietnam is a member.

2. Where, at the same time, the declarant registers multiple declarations for different types of goods at one Customs Sub-Department for the same consignment issued with a single certificate of origin, the customs authority shall examine the certificate of origin to determine the origin of the goods and apply the certificate of origin to all imported goods.

3. The examination of certificates of origin shall be conducted in accordance with the provisions of this Circular.

Article 18.Examination of Direct Transport Conditions

1. The following cases shall be considered direct transport, except where otherwise provided in international treaties to which Vietnam is a member:

a) Direct transportation from the territory of the exporting country, group of countries, or region to the territory of the importing country, group of countries, or region;

b) Goods transported through one or more countries, groups of countries, or regions outside the importing country, group of countries, or region or the exporting country, group of countries, or region must meet the following conditions:

b.1) Transit is necessary due to geographical reasons or directly related transport requirements;

b.2) Goods do not participate in commercial transactions or consumption in the transit country, group of countries, or territory;

b.3) Goods do not undergo any process other than unloading and reloading or those necessary to maintain the goods in good condition.

2. In cases where proof of direct transportation must be submitted to the Customs Sub-Department where the customs declaration is registered:

a) Imported goods as stipulated in point a, Clause 1, Article 4 of this Circular, if transported through the territory of a country, group of countries, or territory that is not a member, the declarant must submit to the customs authority a document proving compliance with the conditions for direct transportation;

b) Imported goods as stipulated in points b, c, d, Clause 1 and Clause 2, Article 4 of this Circular, if transported through the territory of an intermediate country, group of countries, or territory which is neither the exporting nor the importing country, group of countries, or territory, the declarant must submit to the customs authority a document proving compliance with the conditions for direct transportation.

3. Documents proving direct transportation:

Where proof of compliance with the conditions for direct transportation must be submitted, the declarant shall submit one of the following documents, except in cases provided otherwise under international treaties to which Vietnam is a party:

a) A certificate issued by the customs authority of the transit country, group of countries, or territory confirming that the goods remain under the supervision of the customs authority of that country, group of countries, or territory and have not undergone import procedures into its domestic market: one copy; or

b) A confirmation letter from the entity or organization issuing the bill of lading for the imported consignment, proving that the transit of goods is necessary due to geographical reasons or directly related transport requirements; goods do not participate in commercial transactions or consumption in the transit country, group of countries, or territory; goods do not undergo any process other than unloading and reloading or those necessary to maintain the goods in good condition. For confirmation letters issued by subsidiaries, branches, or agents of the transportation company issuing the bill of lading for the consignment in Vietnam, an authorization letter from the main transportation company is also required: one copy; or

c) In cases where goods are transported in original containers, the container number and seal number remain unchanged from when loaded onto the means of transport at the loading port of the exporting country, group of countries, or territory until imported into Vietnam, the customs authority may accept the bill of lading and information retrieved from the e-manifest showing the container number and seal number remain unchanged as proof of direct transportation: one copy.

The customs authority will check and compare the documents provided by the declarant under this clause with the information in the customs file to determine the integrity of the goods during transportation.

In cases where the Electronic Data Processing System of the customs authority has not met the requirements or is malfunctioning, the declarant shall submit paper copies of the above documents to the Customs Sub-Department where the customs declaration is registered.

Article 19.Verify the origin of imported goods

1. In cases where the information on the certificate of origin of the goods does not match the declaration of the declarant and the documents in the customs file, the Customs Sub-Department where the customs declaration is registered shall request the declarant to explain and provide evidence regarding the mismatched information on the certificate of origin of the goods.

Within five days from the date the customs authority requests, if the declarant fails to provide an explanation or provides an explanation but it is insufficient to determine the validity of the certificate of origin of the goods, the customs authority shall conduct verification according to Clause 4 of this Article.

2. In cases where there is doubt about the origin criteria on the certificate of origin of the goods, the Customs Sub-Department where the customs declaration is registered shall request the declarant to provide the following documents to prove through the Electronic Data Processing System of the customs authority:

a) Production process of the imported goods: one copy;

b) Detailed cost sheet of raw materials, inputs, outputs, and purchase invoices, sales receipts for raw materials, inputs for cases applying the "Percentage Value" origin criterion: one copy; or

c) Detailed raw material, input, output sheet for cases applying the "Change of Tariff Classification" origin criterion: one copy.

Within ten days from the date the customs authority requests, if the declarant fails to provide the documents proving the origin or provides the documents proving the origin but the customs authority lacks sufficient basis to determine the validity of the certificate of origin of the goods or the declarant submits a written request for the customs authority to conduct verification, the customs authority shall conduct verification according to Clause 4 of this Article.

In cases where the Electronic Data Processing System of the customs authority has not met the requirements or is malfunctioning, the customs authority shall send a written request and the declarant shall submit paper copies of the above documents.

3. In cases where there is doubt about the validity of the certificate of origin of the goods, the customs authority shall conduct verification according to Clause 4 of this Article.

4. For cases requiring verification under Clauses 1, 2, and 3 of this Article, the General Department of Customs of the province or city shall report and propose to the General Customs Department to send a document along with the requested information for verifying the origin of the goods to the issuing authority or organization of the exporting country, exporter, producer, or customs authority of the exporting country to verify the authenticity of the certificate of origin of the goods or the accuracy of the information related to the origin of the goods.

5. In case the verification results from the issuing authority of the origin certificate for goods, the producer, or the exporter, or the customs authority of the exporting country are not sufficient to determine the origin of imported goods, the General Department of Customs shall conduct an on-site inspection at the production facility of the producer in the exporting country, group of countries, or territory in accordance with Article 20 of this Circular.

6. The verification process (including the on-site inspection at the exporting country, group of countries, or territory and issuing the inspection conclusion report) shall be completed within one hundred eighty (180) days from the date the General Department of Customs sends the request for verification, except where international treaties to which Vietnam is a party provide for a longer verification period. If the verification result is not received within this time limit, the customs authority shall reject the origin certificate.

Where the customs authority receives the verification result notification beyond the time limit stipulated in this Clause, the customs authority shall consider accepting or rejecting the origin certificate based on the verification result and explanation provided by the issuing authority, organization, or producer/exporter of the origin certificate or the customs authority of the exporting country. The explanation must be detailed and address the issues raised by the customs authority and must be directly submitted in writing to the General Department of Customs.

7. During the waiting period for the verification result, the declarant shall declare duties at the MFN rate or general rate for cases of verifying the origin of goods during the customs procedure, or the customs authority shall apply the import duty rate that was applied at the time of the customs procedure for cases of verifying the origin of goods during post-clearance inspection.

Article 20.State Audit Office on-site inspection at the exporting country, group of countries, or territory

1. Prior to conducting an on-site inspection at the exporting country, group of countries, or territory, the General Department of Customs shall undertake the following actions:

a) Sending a notice of the on-site inspection plan to the exporter or producer whose factory will be inspected, the issuing authority of the Certificate of Origin (C/O) of the exporting country, group of countries, or territory that will be inspected, the customs authority of the country, group of countries, or territory where the inspection will take place, and the importer whose goods need to be inspected;

b) Notifying the inspection plan including the following contents: name and address of the exporter or producer whose factory will be inspected; name and address of the issuing authority of the C/O of the exporting country, group of countries, or territory that will be inspected; name and address of the customs authority of the country, group of countries, or territory where the inspection will take place; name and address of the importer; planned inspection date; scope of inspection; inspection content; name and position of the inspector.

2. The General Department of Customs shall conduct the inspection after receiving the approval letter from the exporter or producer whose factory will be inspected, or the issuing authority of the origin certificate of the exporting country, group of countries, or territory, or the customs authority of the country, group of countries, or territory where the inspection will take place.

3. Within thirty (30) days from the date the customs authority sends the notice of the inspection plan at the exporting country but does not receive the approval letter from the exporter or producer or the authorized issuing authority of the origin certificate of the exporting country, group of countries, or territory, or the customs authority of the country, group of countries, or territory, the customs authority shall reject the origin certificate in accordance with the regulations.

Article 21.Handling the Verification and Inspection Results of Goods Origin

1. The customs authority shall base its determination of the authenticity of the origin certificate on the inspection and verification results, the declaration of the declarant, the explanation of the issuing authority of the origin certificate or the producer/exporter, or the direct inspection results at the exporting country, group of countries, or territory:

a) In case the declarant provides an explanation or proof of the origin of imported goods, or the verification and inspection results show that the explanation and proof provided by the issuing authority of the origin certificate or the producer/exporter are detailed and address the issues raised by the customs authority, the customs authority has sufficient basis to determine the origin of the goods as valid and shall accept the origin certificate;

b) In case the verification and inspection results of the proof of the origin of imported goods provided by the declarant or the explanation and proof provided by the issuing authority or the producer/exporter are not detailed enough to address the issues raised by the customs authority, the customs authority lacks sufficient basis to determine the origin of the goods and shall reject the origin certificate; c) In case the exporter or producer fails to provide documentation, data, or proof of the origin of the goods, refuses access to the factory or production process, or engages in other obstructive behavior leading to the inability to conduct a direct verification, the customs authority shall reject the origin certificate;

d) In case the customs authority has sufficient grounds to determine fraud in the origin of goods, it shall handle the violation according to the regulations.

2. The customs authority shall notify on the Electronic Data Processing System for Customs or in writing the results of inspection and handling to the importer, exporter, producer, or issuing agency of the origin certificate or the exporting country's customs authority.

Article 22.Refusal of Origin Certificates

          1. In addition to the cases of refusing origin certificates specified in Articles 19, 20, and 21 of this Circular, the customs authority shall refuse origin certificates in the following cases:

a) For imported goods that must submit origin certificates as provided in point a, Clause 1, Article 4 of this Circular, if the customs authority has sufficient grounds to determine that the origin certificate is not valid, it shall refuse the origin certificate; the imported goods shall be subject to the MFN rate or general tariff rate.

b) If the customs authority has sufficient grounds to determine that the origin certificate is not valid for imported goods that must submit origin certificates as provided in points b and c, Clause 1, Article 4 of this Circular, it shall refuse the origin certificate and handle according to the provisions of point b, Clause 4, Article 4 of this Circular; for goods specified in Clause 2, Article 4 of this Circular, the origin certificate shall be refused, the goods shall not be cleared, and they shall be handled according to the law.

c) For imported goods that must submit origin certificates as provided in point d, Clause 1, Article 4 of this Circular, if the customs authority has sufficient grounds to determine that the origin certificate is not valid, the imported goods shall be subject to anti-dumping duties, countervailing duties, safeguard duties, or non-quota tariff rates and shall be cleared according to the regulations.

2. The customs authority shall notify on the Electronic Data Processing System for Customs or in writing to the declarant about the refusal of the origin certificate or directly mark the reason for refusal on the origin certificate and return it to the declarant so that the declarant can contact the issuing agency, organization, or producer, exporter immediately after the customs authority refuses the origin certificate.

Article 23.Deferred Debit Note origin certificate of goods

1. In the case where a consignment of goods is brought from abroad into a bonded warehouse for multiple imports into the domestic market, the C/O may be used to establish a deferred debit note for each importation into the domestic market and may be applied for deferred debits at different Customs Sub-Departments.

2. Procedures for establishing a deferred debit note:

a) The declarant registers the deferred debit note of the C/O on the Electronic Data Processing System for Customs according to the information criteria in Form No. 01/CT/ĐNTL/GSQL Appendix IV issued together with this Circular, submits one copy of the C/O through the Electronic Data Processing System for Customs, and provides one original C/O to the Customs Sub-Department managing the bonded warehouse before registering the import declaration for the first consignment from the bonded warehouse into the domestic market.

The Customs Sub-Department managing the bonded warehouse shall conduct verification of the C/O according to the regulations;

b) Based on the request for deferred debits from the declarant, the Customs Sub-Department managing the bonded warehouse establishes a deferred debit note on the Electronic Data Processing System for Customs according to Form No. 03/TDTL/GSQL Appendix IV issued together with this Circular and notifies the declarant through the Electronic Data Processing System for Customs.

3. Procedures for monitoring and deferred debits:

a) When processing the import customs declaration for a consignment, the declarant shall declare the number of the deferred debit note on the electronic customs declaration form according to the instructions in the Appendix issued together with Circular No. 39/2018/TT-BTC.

For paper customs declarations, the declarant shall declare the number of the deferred debit note in the "Accompanying Documents" section of the customs declaration form;

b) In the case where the declarant does not have a C/O to establish a deferred debit note before registering the import declaration for the first consignment and subsequent imports, the declarant shall declare late submission of the C/O according to Article 7 of this Circular.

When submitting additional C/Os, the declarant shall register the deferred debit note of the C/O according to point a, Clause 2 of this provision. The Customs Sub-Department managing the bonded warehouse shall establish a deferred debit note at the time the declarant submits the original C/O within the deadline stipulated in Article 7 of this Circular, verify the C/O according to the regulations, and perform deferred debits for consignments already declared and submitted additional C/Os before establishing the deferred debit note. The declarant shall declare the number of the deferred debit note on the supplementary declaration after clearance according to the instructions in the Appendix issued together with Circular No. 39/2018/TT-BTC. When processing imports for subsequent consignments, the declarant shall declare the number of the deferred debit note on the customs declaration form according to the provisions of point a of this clause.

For paper customs declarations, the declarant shall declare the number of the deferred debit note in the "Notes Section" of the supplementary declaration after clearance.

In the case of suspicion of invalidity of the C/O, verification must be conducted; the customs authority shall verify the C/O according to Articles 19 and 20 of this Circular. During the period awaiting verification of the validity of the C/O, the declarant shall declare according to the MFN rate or general tariff rate.

c) The customs officer shall search the content of the deferred debit note on the system, update the quantity of deferred debits on the deferred debit note corresponding to the quantity of goods imported into the domestic market;

d) When the declarant imports all the quantity of goods listed on the C/O, the Customs Sub-Department managing the bonded warehouse shall consolidate the quantity of imported goods, confirm the completion of importing the quantity of goods listed on the C/O on the deferred debit note on the Electronic Data Processing System for Customs.

4. In cases where the electronic data processing system for customs does not yet meet the requirements for tracking and offsetting C/Os, the declarant shall submit one original copy of the registration document for tracking and offsetting C/Os according to Form No. 02/ĐNTL/GSQL Appendix IV issued together with this Circular, and one original C/O to the Customs Sub-Department managing the bonded warehouse. The Customs Sub-Department managing the bonded warehouse shall establish a Tracking and Offsetting Sheet according to Form No. 03/TDTL/GSQL Appendix IV issued together with this Circular.

a) The Tracking and Offsetting Sheet shall be established in two copies: one copy to be submitted to the declarant for presentation to the Customs Sub-Department to handle import procedures for each importation; one copy to be retained by the Customs Sub-Department managing the bonded warehouse for monitoring purposes to conduct settlement when the declarant imports the entire quantity of goods listed on the Tracking and Offsetting Sheet.

b) When handling customs procedures for each importation, the declarant shall declare the number of the Tracking and Offsetting Sheet on the electronic customs declaration form according to the guidance provided in the Appendix issued together with Circular No. 39/2018/TT-BTC, present the original Tracking and Offsetting Sheet, and submit a copy of the C/O for the customs authority to check and compare.

The customs officer shall check and compare the contents of the Tracking and Offsetting Sheet with the C/O, perform the offsetting of goods on the original Tracking and Offsetting Sheet presented by the declarant, confirm the quantity of imported goods on each Tracking and Offsetting Sheet, and retain a copy of the Tracking and Offsetting Sheet that has been offset and confirmed by the Customs Sub-Department handling the import procedures and a copy of the C/O in the customs file.

c) Upon importing the entire quantity of goods listed on the Tracking and Offsetting Sheet, the declarant shall submit the original Tracking and Offsetting Sheet to the Customs Sub-Department to handle the final import procedures of the consignment to confirm the completion of the importation. The Customs Sub-Department handling the final import procedures of the consignment shall be responsible for sending the Tracking and Offsetting Sheet to the Customs Sub-Department managing the bonded warehouse.

The Customs Sub-Department managing the bonded warehouse shall check and compare with the retained Tracking and Offsetting Sheet, confirm the total quantity of imported goods on the C/O and on the two original Tracking and Offsetting Sheets, and retain the customs file according to regulations.

5. In cases where a consignment is declared once according to Article 93 of Circular No. 38/2015/TT-BTC amended and supplemented at Clause 60, Article 1 of Circular No. 39/2018/TT-BTC, the declarant may use the C/O for tracking and offsetting for each domestic importation.

The procedures for registering, establishing the Tracking and Offsetting Sheet, and performing tracking and offsetting shall be carried out in accordance with the provisions of Clauses 2, 3, and 4 of this Article.

Article 24.Post-clearance inspection of the origin of imported goods

1. The authority, procedure, and process for post-clearance inspection of the origin of imported goods shall be implemented in accordance with the laws on customs.

2. The content, method, and handling of results from inspecting and verifying the origin of imported goods shall be carried out in accordance with the provisions of this Circular.

 

Chapter V

IMPLEMENTING PROVISIONS

Article 25.eff of Implementation

1. This Circular takes effect from June 5, 2018.

2. In cases where imported goods require certificates of origin announced by specialized management ministries before the effective date of this Circular, they shall continue to be handled according to the announcements of the specialized management ministries.

3. During implementation, if related documents referred to in this Circular are amended, supplemented, or replaced, they shall be implemented according to the new amended, supplemented, or replaced documents./.