On July 30, 2019, the Minister of Industry and Trade issued a Circular regulating the rules of origin of goods in the Framework Agreement on comprehensive economic cooperation between the Association of Southeast Asian Nations and the People’s Republic Chinese. This Circular takes effect from September 12, 2019.
Accordingly, this Circular prescribes rules of origin for goods as follows: goods are considered to be originating if they meet the rules:
– Wholly obtained or produced entirely in a Member State
– Produced in a Member State solely from materials originating from one or more Member States.
– Produced from non-originating materials in a Member State provided that such goods meet the following requirements:
• Goods with a regional value content (RVC) not less than 40% of the FOB value and the final stage of production carried out in a Member State
• Goods using non-originating materials undergo a 4-digit (CTH) conversion process (applicable to Chapters 25, 26, 28, 29, 31 and 39 ; from Chapter 42 to Chapter 49; from Chapter 57 to Chapter 59; Chapters 61, 62, 64; from Chapter 66 to Chapter 71; from Chapter 73 to Chapter 83; Chapters 86 and 88; from Chapters 91 to Chapter 97 of Harmonized system of description and coding of goods)
– In addition, the origin of goods applies the De minimis rule: goods that do not meet the criteria for change of commodity codes (CTC) are still considered to be originating if:
• The value of all non-originating materials that do not meet the CTC criteria used to produce the goods does not exceed 10% of the FOB value of the goods (applies to goods not covered by Chapter 50). to Chapter 63 of the Harmonized Commodity Description and Coding System);
• The weight of all non-originating materials that do not meet the CTC criteria used to produce the goods does not exceed 10% of the total weight of the goods; or the value of all non-originating materials that do not meet the CTC criteria used to produce the goods does not exceed 10% of the FOB value of the goods (applicable to goods of Chapter 50 to Chapter 63 of the Harmonized Commodity Description and Coding System).
Circular No. 12/2019 / TT-BCT applies to agencies and organizations that issue certificates of origin (C / O) and traders, agencies, organizations and individuals involved in activities relating to the origin of goods.