What is the Generalized System of Preferences according to the law in Vietnam?

What is the Generalized System of Preferences according to the law in Vietnam?

Based on Article 1 of Circular 38/2018/TT-BCT regarding the Generalized System of Preferences:

Scope of Adjustment

This Circular provides regulations on certification of origin of goods under the Generalised System of Preferences (hereinafter referred to as “GSP”) of the European Union, Norway, Switzerland and Turkey.

 

The Generalized System of Preferences is the tax preference policy of the European Union, Norway, Switzerland, and Turkey.

Thus, the Generalized System of Preferences (GSP) can be understood as a trade policy granted by developed countries to developing countries.

Goods exported from developing countries to developed countries will enjoy tariff preferences, which means a reduction or exemption from import duties.

Which cases are exempt from certification of goods origin under the Generalized System of Preferences in Vietnam?

Based on Article 7 of Circular 38/2018/TT-BCT, the cases exempt from certification of goods origin under the Generalized System of Preferences include:

Case [1] Certification documents under GSP are exempt when the goods are small packages with a total value not exceeding 500 EUR or goods are personal luggage with a total value not exceeding 1,200 EUR.

Case [2] Goods mentioned in Clause 1, Article 7, of Circular 38/2018/TT-BCT are not imported for commercial purposes, only for personal use, and the importation does not occur frequently.

What is the Generalized System of Preferences according to the law in Vietnam? (Image from the Internet)

How long is the validity of the certification of goods origin under the Generalized System of Preferences issued by the trader acording to the law in Vietnam?

Based on Article 6 of Circular 38/2018/TT-BCT regarding the certification documents under GSP:

Certification Document under GSP

1. Certification documents under GSP issued by traders for each shipment and valid for 12 months from the date of issuance.

2. In case it is not issued at the time of export, the certification document under GSP can be issued later and marked "retrospective statement." Such documents must be submitted to the customs authority of the importing country within 2 years from the date of importation.

3. Certification documents under GSP can be issued for multiple shipments of goods if the goods meet the following conditions:

a) Not assembled or dismantled according to rule 2a of the Harmonized System nomenclature stipulated in Appendix 2 of Circular No. 65/2017/TT-BTC dated June 27, 2017, of the Ministry of Finance enacting the list of exported and imported goods of Vietnam (hereinafter referred to as Circular No. 65/2017/TT-BTC); or

b) Belong to Parts XVI or XVII or groups 7308 or 9406 of the Harmonized System nomenclature stipulated in Appendix 2 of Circular No. 65/2017/TT-BTC; or

c) Exported for assembly.

4. Certification documents under GSP must contain information about the REX number, the trader, the goods, and the declaration and commitments regarding the origin in English, French, or Spanish according to the form in the Appendix issued with this Circular.

5. Within 3 working days from the date of issuance, traders declare and upload the certification documents under GSP and related documents of the exported shipment as stipulated from points c to h, Clause 1, Article 15 of Decree No. 31/2018/ND-CP on the electronic portal of the organization receiving the REX registration number.

6. Certification documents under GSP are revoked or canceled in the cases stipulated from points c to h, Clause 1, Article 5 of this Circular. The organization receiving the REX registration number will notify relevant agencies and organizations about the revocation or cancellation of the certification documents under GSP in such cases.

Thus, based on these regulations, the Certification of Goods Origin issued by traders is valid for 12 months from the date of issuance.

What are regulations on varification of the certification of goods origin under the Generalized System of Preferences in Vietnam?

Based on Article 8 of Circular 38/2018/TT-BCT regarding the verification of goods origin:

- The verification of goods origin is carried out in the following cases:

+ The competent authority of the importing country requests verification of goods origin.

+ The competent authority or organization in the country conducts risk management and fraud prevention of goods origin.

+ Other domestic functional agencies request cooperation when they have reasons to suspect or detect signs of fraudulent goods origin.

- Verification of goods origin is implemented according to the regulations on verification of goods origin under GSP and the instructions of the Ministry of Industry and Trade.