Circular No. 39/2018/TT-BCT on inspection and verification of the origin of exported goods

CIRCULAR
Regulations on inspection and verification of export goods' origin

^{________________} 

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 goods' origin;

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

The Minister of Industry and Trade issues this Circular on inspection and verification of export goods' origin.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates the inspection and verification of export goods' origin before and after issuing the Certificate of Origin (C/O), certificates of origin according to the importing country's regulations, and the self-certification of goods' origin by traders under Clause 1, Article 28 of Decree No. 31/2018/NĐ-CP dated March 8, 2018 detailing the Law on Foreign Trade Management regarding goods' origin (hereinafter referred to as Decree No. 31/2018/NĐ-CP).

Article 2. Applicability

This Circular applies to:

1. Authority issuing C/O;

2. Authority issuing approval document for self-certification of goods' origin;

3. Authority receiving registration for certification code of goods' origin;

4. Traders including:

a) Traders requesting issuance of C/O;

b) Traders participating in the self-certification mechanism of goods' origin;

c) Traders issuing certificates of origin according to the importing country's regulations;

d) Manufacturer, supplier of exported goods or raw materials for production of exported goods.

5. Related authorities, organizations, and individuals.

Article 3. Explanation of Terms

1. The authority with jurisdiction to inspect and verify goods' origin within the country (hereinafter referred to as domestic authority) is the Department of Import-Export - Ministry of Industry and Trade; authority issuing C/O; authority issuing approval document for self-certification of goods' origin; authority receiving registration for certification code of goods' origin.

2. The authority with jurisdiction to inspect and verify goods' origin of the importing country (hereinafter referred to as importing country authority) is the customs authority of the importing country, competent authority of the importing country.

3. Inspection of documents certifying goods' origin is the activity of reviewing, comparing, and verifying documents certifying goods' origin that have been issued or released to ensure that the goods meet the rules of origin.

4. On-site inspection and verification of goods' origin at production facilities is the activity of inspecting and verifying goods' origin at business locations, production sites, cultivation or fishing sites, and other locations of traders to ensure that the goods meet the rules of origin.

5. Request for inspection and verification of goods' origin is the document from the importing country authority, or other domestic competent authority requesting provision of documents, information related to goods' origin under suspicion or requesting cooperation in the inspection and verification of goods' origin.

Article 4. Inspection and verification of goods' origin

1. The inspection and verification of goods' origin shall be carried out in accordance with the provisions of this Circular.

2. In cases where preferential rules of origin under international treaties to which Vietnam is a party, preferential rules of origin under the Generalized System of Preferences and other unilateral preferences of the importing country granted to Vietnam provide different provisions on inspection and verification of goods' origin compared to those stipulated in this Circular, the inspection and verification of goods' origin shall be conducted in accordance with the provisions of such international treaty or the importing country's regulations.

Article 5. Methods for inspecting and verifying the origin of goods

The inspection and verification of the origin of goods shall be carried out through the following methods:

1. Inspection of documents and certificates proving the origin of goods.

2. Inspection and verification of the origin of goods at production facilities.

Chapter II
INSPECTION OF DOCUMENTS,
CERTIFICATES PROVING THE ORIGIN OF GOODS

Article 6. Cases for inspecting documents and certificates proving the origin of goods that have been issued or released

The inspection of documents and certificates proving the origin of goods shall be conducted in the following cases:

1. The competent authority of the importing country requests to inspect the origin of goods.

2. Domestic competent authorities conduct inspections, manage risks, and combat fraudulent origin of goods.

3. Other domestic functional agencies request cooperation when there is suspicion or discovery of fraudulent origin of goods.

Article 7. Contents of inspecting documents and certificates proving the origin of goods that have been issued or released

Domestic competent authorities review documents and certificates proving the origin of goods stored by the issuing agency or organization or by the trader, and require the trader to provide related documents and materials to verify the following contents:

1. Authority of the agency or organization issuing the C/O, procedures, formalities, and files for issuing the C/O.

2. Authority of the agency or organization issuing approval documents for self-certification of the origin of goods, procedures, formalities, and files for issuing self-certification certificates of the origin of goods; authority of the agency or organization accepting registration of certification number for the origin of goods, procedures, formalities, and files for issuing certificates of the origin of goods according to the regulations of the importing country.

3. Completeness and validity of declarations and commitments on the origin of goods made by exporting traders, manufacturers, or suppliers of exported goods or raw materials for producing exported goods under the laws on the origin of goods.

4. Business status of the trader including whether the trader is operating, temporarily suspended from business, transferred ownership, dissolved, or bankrupted according to the laws.

5. Other information, documents, and materials related to the inspection of the origin of goods.

Article 8. Procedure for inspecting C/O documents and Certificates of Non-Change of Origin (CNM) that have been issued

1. Based on the request of the competent authority of the importing country, the inspection of C/O and CNM documents that have been issued shall be carried out in the following procedure:

a) The Ministry of Industry and Trade sends a request for inspection along with the request for inspection of the origin of goods from the competent authority of the importing country to the agency or organization issuing the C/O.

b) The agency or organization issuing the C/O inspects and responds in writing to the competent authority of the importing country within two months from the date of receipt of the inspection request mentioned in point a, Clause 1 of this Article. In case an extension of the time to respond to the inspection request is required, the agency or organization issuing the C/O sends an explanation to the Ministry of Industry and Trade not later than ten working days before the deadline stipulated to request the competent authority of the importing country to extend the time. During the inspection of C/O and CNM documents that have been issued, the agency or organization issuing the C/O may request the trader to supplement documents and materials if necessary.

c) In case the preferential rules of origin under international treaties to which Vietnam is a member, preferential rules of origin under the Generalized System of Preferences and other unilateral preferences of the importing country for Vietnam have different provisions on the deadlines for reporting and extending the deadlines for reporting the results of the inspection of the origin of goods to the competent authority of the importing country, the agency or organization issuing the C/O shall implement according to the provisions of that international treaty or according to the regulations of the importing country.

d) Within five working days from the date of receipt of the notification (if any) from the competent authority of the importing country regarding the results of the inspection of the origin of goods mentioned in point b, Clause 1 of this Article, the agency or organization issuing the C/O shall send this notification in writing to the Ministry of Industry and Trade and the relevant trader.

2. In case domestic competent authorities conduct inspections, manage risks, and combat fraudulent origin of goods, the inspection of C/O and CNM documents that have been issued based on probability, periodicity, or suspicion of fraud shall be carried out in the following procedure:

a) The Ministry of Industry and Trade sends a request for inspection to the agency or organization issuing the C/O.

b) The agency or organization issuing the C/O inspects and responds in writing to the Ministry of Industry and Trade within twenty working days from the date of receipt of the inspection request mentioned in point a, Clause 2 of this Article. In case an extension of the time to respond to the inspection request is required, the agency or organization issuing the C/O sends an explanation to the Ministry of Industry and Trade not later than five working days before the deadline stipulated. During the inspection of C/O and CNM documents that have been issued, the agency or organization issuing the C/O may request the trader to supplement documents and materials if necessary.

3. In case the Ministry of Industry and Trade receives a request from the competent authority of the importing country or another domestic functional agency for inspecting C/O and CNM documents that have been issued, the agency or organization issuing the C/O reports to the Ministry of Industry and Trade for coordination in handling.

Article 9. Procedure for inspecting origin documentation of self-certified goods

1. Based on the request of the competent authority of the importing country, the inspection of origin documentation of self-certified goods shall be carried out according to the following procedure:

a) The agency or organization issuing the approval for self-certification of origin sends the trader participating in the self-certification mechanism a document requesting inspection along with the request for origin verification from the competent authority of the importing country.

b) The trader participating in the self-certification mechanism inspects and responds in writing to the agency or organization issuing the approval for self-certification of origin with the results of the origin verification:

- Within twenty working days from the date of receipt of the inspection request mentioned in point a, Clause 1 of this Article;

- Within ten working days from the date of receipt of the inspection request mentioned in point a, Clause 1 of this Article, in case the competent authority of the importing country sends a reminder regarding the request for origin verification.

c) In cases where an extension of time for responding with the results of the origin verification mentioned in point b, Clause 1 of this Article is required, the trader participating in the self-certification mechanism sends an explanation to the agency or organization issuing the approval for self-certification of origin not later than five working days before the deadline. During the inspection of origin documentation of self-certified goods, the agency or organization issuing the approval for self-certification of origin may require the trader to supplement documentation and materials when necessary.

d) The agency or organization issuing the approval for self-certification of origin notifies the competent authority of the importing country in writing within five working days from the date of receipt of the results of the origin verification mentioned in point b, Clause 1 of this Article.

đ) Where the preferential rules of origin under international agreements to which Vietnam is a party provide different deadlines for notification and extension of notification of the results of origin verification to the competent authority of the importing country, the agency or organization issuing the approval for self-certification of origin shall comply with the provisions of such international agreement.

e) Within five working days from the date of receipt of the notification (if any) from the competent authority of the importing country regarding the results of the origin verification mentioned in point d, Clause 1 of this Article, the agency or organization issuing the approval for self-certification of origin shall send this notification in writing to the trader participating in the self-certification mechanism.

2. In cases where the agency or organization issuing the approval for self-certification of origin conducts risk management and anti-fraud inspections of origin, the inspection of origin documentation of self-certified goods conducted randomly, periodically, or upon suspicion of fraud shall be carried out according to the following procedure:

a) The agency or organization issuing the approval for self-certification of origin sends the trader participating in the self-certification mechanism a document requesting inspection.

b) The trader participating in the self-certification mechanism sends the agency or organization issuing the approval for self-certification of origin the results of the origin verification in writing within twenty working days from the date of receipt of the inspection request mentioned in point a, Clause 2 of this Article.

c) In cases where an extension of time for responding to the inspection request of origin is required, the trader participating in the self-certification mechanism sends an explanation to the agency or organization issuing the approval for self-certification of origin not later than five working days before the deadline. During the inspection of origin documentation of self-certified goods, the agency or organization issuing the approval for self-certification of origin may require the trader to supplement documentation and materials when necessary.

d) The agency or organization issuing the approval for self-certification of origin reports the Ministry of Industry and Trade the results of the origin verification after completing the inspection.

3. In cases where a request for inspection of origin documentation of self-certified goods is received from the competent authority of the importing country or other domestic authorities, the trader participating in the self-certification mechanism shall report to the Ministry of Industry and Trade for coordination in handling.

Article 10. Procedure for checking export origin documentation issued by traders according to the importing country's regulations

1. Based on the request of the competent authority of the importing country, the procedure for checking export origin documentation issued by traders according to the importing country's regulations shall be carried out as follows:

a) The agency or organization receiving registration for export origin certification codes shall act in accordance with Clause 1 of Article 9 of this Circular;

b) In cases where the preferential rules of origin under the Generalized System of Preferences (GSP) and other unilateral preferences of the importing country for Vietnam have different provisions regarding the notification period and extension period for notifying the results of origin verification to the competent authority of the importing country, the agency or organization receiving registration for export origin certification codes shall follow the regulations of the importing country.

2. Where the agency or organization receiving registration for export origin certification codes conducts risk management and fraud prevention related to origin, the checking of export origin documentation issued by traders according to the importing country's regulations shall be carried out randomly, periodically, or when there is suspicion of origin fraud, in accordance with Clause 2 of Article 9 of this Circular.

3. Upon receipt of a request from the competent authority of the importing country or another domestic functional agency for checking export origin documentation issued by traders according to the importing country's regulations, the trader shall report to the Ministry of Industry and Trade for coordination and handling.

Chapter III
INSPECTION AND VERIFICATION OF ORIGIN AT THE PRODUCTION FACILITY

Article 11. Cases of inspection and verification of origin at the production facility

Inspection and verification of origin at the production facility shall be conducted in the following circumstances:

1. When the competent authority of the importing country requests inspection and verification at the production facility due to insufficient grounds to determine the origin of goods based on the results of checking documentation and certificates of origin as stipulated in Articles 8, 9, and 10 of this Circular, or when there is suspicion of origin fraud.

2. Domestic agencies or organizations with authority conduct inspection, verification, risk management, and fraud prevention related to origin in the following cases:

a) Before issuing a Certificate of Origin (C/O);

b) Before granting approval for self-certification of origin or issuing an export origin certification code;

c) After issuance or release of certificates of origin.

3. Other domestic functional agencies request cooperation when there is suspicion or discovery of fraudulent origin of goods.

Article 12. Contents of inspection and verification of origin at the production facility

Domestic agencies or organizations with authority conduct inspection and verification at the production facility to collect and verify the following information:

1. The operational status of the trader including whether the trader is currently operating, temporarily suspended, transferred ownership, dissolved, or bankrupted as provided by law.

2. The existence of the production facility and office premises consistent with the information registered in the trader’s file.

3. Production and business activities, import market for raw materials, export market for goods prior to the inspection and verification of origin.

4. Production capacity, machinery condition, warehouse location, workforce.

5. Information about goods, raw materials, manufacturers or suppliers of exported goods or raw materials for producing exported goods.

6. Storage, presentation, and explanation of issued or released certificates of origin and other related documents.

Article 13. Procedures for checking and verifying the origin of goods at production facilities before and after issuing the Certificate of Origin (C/O)

1. Based on the request of the competent authority of the importing country, the procedures for checking and verifying the origin of goods at production facilities shall be carried out as follows:

a) The agency or organization issuing the C/O issues a decision to establish a verification team for checking and verifying the origin of goods at production facilities after reaching an agreement with the competent authority of the importing country. The decision to establish the verification team includes basic contents such as the composition of the verification team, the tasks and powers of the verification team, the traders subject to verification, and the time for verification.

b) The agency or organization issuing the C/O notifies the trader in writing or via email about the time for verification, the contents that need to be prepared for the verification work at least 7 working days before the date of verification at the production facility.

c) The verification team and the competent authority of the importing country conduct the verification of the origin of goods at the production facility according to the announced verification time and prepare a record based on the opinions of the relevant parties after completing the verification period.

d) Within 5 working days from the date of receiving the notification (if any) from the competent authority of the importing country regarding the results of verifying the origin of goods at the production facility, the agency or organization issuing the C/O sends this notification in writing to the Ministry of Industry and Trade and the related trader.

2. In cases where the domestic competent authority conducts checks, verifications, risk management, and anti-fraud measures for the origin of goods, the procedures for checking and verifying the origin of goods at production facilities on a probabilistic, periodic basis, or when there is suspicion of fraud shall be carried out as follows:

a) The agency or organization issuing the C/O issues a decision to establish a verification team for checking and verifying the origin of goods at production facilities. The decision to establish the verification team includes basic contents such as the composition of the verification team, the tasks and powers of the verification team, the traders subject to verification, and the time for verification.

b) The agency or organization issuing the C/O notifies the trader in writing or via email about the time for verification, the contents that need to be prepared for the verification work:

- At least 3 working days before the date of verification at the production facility for cases of suspicion prior to issuing the C/O as stipulated in point a, Clause 2, Article 11 of this Circular. The time for verifying the origin of goods at the production facility does not count towards the time for reviewing the application for issuing the C/O at the agency or organization issuing the C/O;

- At least 7 working days before the date of verification at the production facility for cases after issuing the C/O as stipulated in point c, Clause 2, Article 11 of this Circular.

c) The verification team conducts the verification of the origin of goods at the production facility according to the announced verification time and prepares a record after completing the verification period.

d) The agency or organization issuing the C/O notifies the trader in writing or via email about the results of verifying the origin of goods at the production facility:

- At least 3 working days from the end of verification for cases of suspicion prior to issuing the C/O as stipulated in point a, Clause 2, Article 11 of this Circular;

- At least 7 working days from the end of verification for cases after issuing the C/O as stipulated in point c, Clause 2, Article 11 of this Circular.

3. In cases where the agency or organization issuing the C/O receives a request from the competent authority of the importing country or another domestic functional agency for checking and verifying the origin at the production facility, the agency or organization issuing the C/O reports to the Ministry of Industry and Trade for coordination in handling.

Article 14. Procedure for checking and verifying the origin of goods at production facilities before and after issuing self-certification documents for the origin of goods

1. Based on the request of the competent authority of the importing country, the procedures for checking and verifying the origin of goods at production facilities shall be carried out as follows:

a) The agency or organization issuing the approval document for self-certification of the origin of goods shall issue a decision to establish a working group to check and verify the origin of goods at production facilities after reaching agreement with the competent authority of the importing country. The decision to establish the working group includes basic contents such as the composition of the working group, the tasks and powers of the working group, the traders subject to inspection and verification, and the time for inspection and verification.

b) The agency or organization issuing the approval document for self-certification of the origin of goods shall notify traders participating in the self-certification mechanism of the origin of goods in writing or via email about the inspection and verification time, the content that needs to be prepared to support the inspection and verification work, at least 7 working days before the inspection and verification date at the production facility.

c) The verification team and the competent authority of the importing country conduct the verification of the origin of goods at the production facility according to the announced verification time and prepare a record based on the opinions of the relevant parties after completing the verification period.

d) In cases where the preferential rules of origin under international treaties to which Vietnam is a member provide different procedures for checking and verifying the origin of goods at production facilities, the agency or organization issuing the approval document for self-certification of the origin of goods, and traders participating in the self-certification mechanism of the origin of goods shall implement according to the provisions of that international treaty.

đ) Within 5 working days from the date of receiving the notification (if any) from the competent authority of the importing country regarding the results of checking and verifying the origin of goods at the production facility, the agency or organization issuing the approval document for self-certification of the origin of goods shall send this notification in writing to the Ministry of Industry and Trade and the traders participating in the self-certification mechanism of the origin of goods concerned.

2. In cases where the domestic competent authority conducts checks, verifications, risk management, and anti-fraud measures for the origin of goods, the procedures for checking and verifying the origin of goods at production facilities on a probabilistic, periodic basis, or when there is suspicion of fraud shall be carried out as follows:

a) The agency or organization issuing the approval document for self-certification of the origin of goods shall issue a decision to establish a working group to check and verify the origin of goods at production facilities. The decision to establish the working group includes basic contents such as the composition of the working group, the tasks and powers of the working group, the traders subject to inspection and verification, and the time for inspection and verification.

b) The agency or organization issuing the approval document for self-certification of the origin of goods shall notify traders in writing or via email about the inspection and verification time, the content that needs to be prepared to support the inspection and verification work:

- At least 5 working days before the inspection and verification date at the production facility for the case before issuing the approval document for self-certification of the origin of goods as stipulated in point b, Clause 2, Article 11 of this Circular;

- At least 7 working days before the inspection and verification date at the production facility for the case after issuing the self-certification document for the origin of goods as stipulated in point c, Clause 2, Article 11 of this Circular.

c) The verification team conducts the verification of the origin of goods at the production facility according to the announced verification time and prepares a record after completing the verification period.

d) The agency or organization issuing the approval document for self-certification of the origin of goods shall notify traders in writing or via email about the results of checking and verifying the production facility:

- At least 3 working days from the end of the inspection and verification for the case before issuing the approval document for self-certification of the origin of goods as stipulated in point b, Clause 2, Article 11 of this Circular;

- At least 7 working days from the end of the inspection and verification for the case after issuing the self-certification document for the origin of goods as stipulated in point c, Clause 2, Article 11 of this Circular.

3. In cases where the competent authority of the importing country or other domestic agencies request the inspection and verification of the origin at the production facility, traders participating in the self-certification mechanism of the origin of goods shall report to the Ministry of Industry and Trade for coordination in handling.

Article 15. Procedure for checking and verifying the origin of goods at production facilities for certificates of origin issued by traders according to the importing country's regulations

1. Based on the request of the competent authority of the importing country, the procedure for checking and verifying the origin of goods at production facilities for certificates of origin issued by traders according to the importing country's regulations shall be carried out as follows:

a) The agency or organization receiving applications for registration of certificate of origin codes shall implement in accordance with Clause 1, Article 14 of this Circular;

b) In cases where the preferential rules of origin under the Generalized System of Preferences (GSP) and other unilateral preferences of the importing country for Vietnam have different provisions regarding the procedure for checking and verifying the origin of goods at production facilities for certificates of origin issued by traders according to the importing country's regulations, the agency or organization receiving applications for registration of certificate of origin codes and the traders shall comply with the regulations of the importing country.

2. In cases where the agency or organization receiving applications for registration of certificate of origin codes conducts checks, verifications, risk management, and anti-fraud measures for the origin of goods, the procedure for checking and verifying the origin of goods at production facilities shall be implemented in accordance with Clause 2, Article 14 of this Circular.

3. Upon receiving a request from the competent authority of the importing country or another domestic functional agency regarding the verification of the origin of goods at production facilities for certificates of origin issued by traders according to the importing country's regulations, the trader shall report to the Ministry of Industry and Trade for coordination and handling.

Chapter IV
RESPONSIBILITIES OF AGENCIES AND ORGANIZATIONS IN CIVILIAN DEFENSE ACTIVITIES
ORGANIZATIONS AND INDIVIDUALS INVOLVED AND IMPLEMENTATION PROVISIONS

Article 16. Responsibilities of the Department of Import-Export - Ministry of Industry and Trade

1. To be responsible for assisting the Minister of Industry and Trade in overseeing, urging, inspecting, compiling reports, difficulties, and obstacles during the implementation of this Circular.

2. To take the lead and coordinate with the competent authority of the importing country and other domestic functional agencies in checking and verifying the origin of goods.

3. To carry out or guide the implementation for agencies and organizations issuing C/Os, agencies and organizations issuing approval documents for self-certification of the origin of goods, agencies and organizations receiving applications for registration of certificate of origin codes, and traders in checking and verifying the export origin of goods.

4. To notify agencies and organizations issuing C/Os, agencies and organizations issuing approval documents for self-certification of the origin of goods, agencies and organizations receiving applications for registration of certificate of origin codes, and related parties about high-risk products and fraud in the origin of goods.

Article 17. Responsibilities of agencies and organizations issuing C/Os, agencies and organizations issuing approval documents for self-certification of the origin of goods, and agencies and organizations receiving applications for registration of certificate of origin codes

1. To cooperate with the Ministry of Industry and Trade, other domestic functional agencies, and the competent authority of the importing country in checking and verifying the export origin of goods.

2. To be responsible for the results of checking and verifying the origin of goods and to report to the competent authority of the importing country within the prescribed time limit.

3. To report to the Ministry of Industry and Trade quarterly and annually on the checking and verifying of the origin of goods.

4. To apply or propose the application of measures to prevent fraud in the origin of goods as stipulated in point b, point c, Clause 1, Clause 2, and Clause 3, Article 29 of Decree No. 31/2018/NĐ-CP.

5. To store, keep confidential, provide files, certificates, information, and documents related to serving the work of checking and verifying the origin of goods in accordance with Article 30 of Decree No. 31/2018/NĐ-CP.

Article 18. Responsibilities of traders

1. Coordinate with competent authorities within the country and competent authorities of the importing country in the inspection and verification of the origin of exported goods.

2. Contact the manufacturer or supplier of exported goods or materials with origin for the production of exported goods to assist in the inspection and verification of the origin of exported goods in cases where the trader is not the direct manufacturer or supplier of such goods or materials.

3. Provide, supplement documents, certificates, information, and related materials within the prescribed time limit to serve the inspection and verification of the origin of exported goods.

4. Bear legal responsibility for the accuracy and authenticity of the explanatory documents, files, certificates, information, and related materials serving the inspection and verification of the origin of exported goods.

5. To store, keep confidential, provide files, certificates, information, and documents related to serving the work of checking and verifying the origin of goods in accordance with Article 30 of Decree No. 31/2018/NĐ-CP.

Article 19. Responsibilities of relevant agencies, organizations, and individuals

Relevant agencies, organizations, and individuals have the responsibility to coordinate with the Ministry of Industry and Trade in providing information and materials to support the inspection and verification of the origin of exported goods.

Article 20. Effective Date

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