THE MINISTRY OF INDUSTRY AND TRADE
THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
Hanoi, June 15, 2020
Providing the rules of origin under the European Union - Vietnam Free Trade Agreement
Pursuant to the Government’s Decree No. 98/2017/ND-CP dated August 18, 2017 on defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;
Pursuant to the Government’s Decree No. 31/2018/ND-CP dated March 08, 2018 on detailing the Law on Foreign Trade Management regarding goods origin;
In furtherance of the European Union - Vietnam Free Trade Agreement signed on June 30, 2019, in Hanoi, Vietnam;
At the proposal of the Director of the Agency of Foreign Trade,
The Minister of Industry and Trade hereby promulgates the Circular on providing the rules of origin under the European Union - Vietnam Free Trade Agreement.
Article 1. Scope of regulation
This Circular provides the rules of origin under the European Union - Vietnam Free Trade Agreement (hereinafter referred to as EVFTA).
Article 2. Subjects of application
This Circular applies to:
1. Agencies and organizations issuing certificates of origin (C/O).
3. Agencies, organizations and individuals engaged in activities concerning origin of imports and exports.
Article 3. Interpretation of terms
According to this Circular, the following terms are construed as follows:
1. “Chapters”, “Headings” and “Subheadings” mean Chapters (02 digits), Heading (04 digits) and Subheading (06 digits) used in the Harmonized Commodity Description and Coding System (hereinafter referred to as "Harmonized System" or "HS").
2. “Classified” means the classification of goods or materials into specific Chapters, Headings or Subheadings of the Harmonized System.
3. “Shipment” means products which are sent together from the exporter to the consignee or shown on the same transport document that shows the transport from the exporter to the consignee or on the same invoice in case there is no transport document.
4. “Customs value” means the value determined according to the Customs Valuation Agreement.
5. “Exporter” means individual or organization with the head office located in the territory of the exporting member country, exporting goods to another member country, capable of proving the origin of goods. An exporter may be the manufacturer or a person carrying out the export procedures. An exporter may not necessarily a seller who issues an invoice for the shipment (third party invoice). A seller may locate the head office in the territory of the country other than the EVFTA member.
6. “Ex-factory price” means:
a) The goods price paid for the manufacture involving in the production or the last step of the processing, provided that such price includes the value of materials used for the production and other expenses arising in the production, except for domestic taxes that shall or may be refunded when exporting the last product.
b) In case the ex-factory price does not fully reflect expenses arising in the actual production in Vietnam or European Union, the ex-factory price shall be total costs deducting refundable domestic taxes when exporting the last product.
c) In case the trader signs a supplement contract on hiring another manufacture to carrying out the last step of processing or production, the term “manufacture” mentioned in this Clause shall be the trader who hires the other for the processing or production.
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