What is the registration of the REX number in the preferential tariff treatment in Vietnam?

What is the registration of the REX number in the preferential tariff treatment in Vietnam?

According to Article 4 of Circular 38/2018/TT-BCT regarding the registration of the REX number in the preferential tariff treatment as follows:

- Traders who want to enjoy preferential tariff treatment when exporting to the European Union, Norway, Switzerland, and Turkey must register the REX number at the organization receiving the REX number registration and issue certification documents according to GSP regulations.

- The trader’s dossier for registering the REX number is carried out according to the provisions of Article 13 of Decree 31/2018/ND-CP and the guidance of the organization receiving the REX number registration.

- For traders who have registered their dossiers according to the provisions of Article 13 of Decree 31/2018/ND-CP and will register the REX number at the same organization where they have registered their dossiers, traders are not required to resubmit the dossiers specified in Clause 2, Article 4 of Circular 38/2018/TT-BCT when registering the REX number.

- Within 6 months from the effective date of this Circular, the organization receiving the REX number registration shall publish the website address where traders can choose to register the REX number online or send the registration dossier to the REX number registration organization. After 6 months from the effective date of this Circular, the registration of the REX number shall be done entirely online.

- Traders who are entrusted to export goods for other traders to the European Union, Norway, Switzerland, and Turkey are not allowed to use their REX number to issue GSP certification documents for the goods of the entrusted traders.

- The structure of the REX number shall comply with GSP regulations and the guidance of the organization receiving the REX number registration.

- For export consignments according to GSP with a total value not exceeding 6,000 (six thousand) EUR (calculated at ex-factory price), traders are certified for the origin of the consignment without having to register the REX number according to the provisions of Article 4 of Circular 38/2018/TT-BCT.

Therefore, according to the above regulations, it can be seen that registering the REX number in the preferential tariff treatment seems to be mandatory if traders want to enjoy preferential tariff treatment when exporting to the European Union, Norway, Switzerland, and Turkey.

In addition, the procedure dossier will be carried out as follows:

- Regarding the trader’s dossier for registering the REX number, it is carried out according to the provisions of Article 13 of Decree 31/2018/ND-CP and according to the guidance of the organization receiving the REX number registration. Specifically, Article 13 of Decree 31/2018/ND-CP is as follows:

Registering the trader’s dossier

1. Traders who request the issuance of the Certificate of Origin for the first time must register a trader’s dossier with the agency or organization that issues the Certificate of Origin and can only be considered for issuance when the trader's dossier is fully and properly registered. The trader’s dossier includes:

a) Registration of the signature sample of the legal representative of the trader or the authorized person signing the request for the Certificate of Origin, signing the Certificate of Origin, and the trader's seal sample according to Form No. 01 specified in the Appendix issued with this Decree;

b) A copy of the Business Registration Certificate (with the trader’s certified true copy seal);

c) A list of production facilities for the goods request for the Certificate of Origin (if any) according to Form No. 02 specified in the Appendix issued with this Decree.

2. The trader’s dossier is declared through the electronic Certificate of Origin management and issuance system at www.ecosys.gov.vn or other electronic sites of agencies, organizations authorized by the Ministry of Industry and Trade to issue the Certificate of Origin. The Ministry of Industry and Trade encourages traders to register their electronic trader dossiers. In cases where the electronic trader dossier cannot be registered, traders are permitted to submit their dossiers at the headquarters of the agencies or organizations that issue the Certificate of Origin.

3. Any changes in the trader's dossier must be updated at www.ecosys.gov.vn or notified to the agency or organization that issued the Certificate of Origin, where the trader registered before requesting the issuance of the Certificate of Origin. In cases where there are no changes, the trader’s dossier must still be updated every 2 years.

- For traders who have registered their dossiers according to the provisions of Article 13 of Decree 31/2018/ND-CP and will register the REX number at the same organization where they have registered their dossiers, traders are not required to resubmit the dossiers specified in Clause 2, Article 4 of Circular 38/2018/TT-BCT when registering the REX number.

What is the registration of the REX number in the preferential tariff treatment in Vietnam? (Image from the Internet)

What are cases where the registered REX number for preferential tariff treatment is revoked in Vietnam?

According to Article 5 of Circular 38/2018/TT-BCT, the cases where the registered REX number for preferential tariff treatment is revoked include:

- Traders are revoked their REX numbers in the following cases:

+ Have dissolved or gone bankrupt according to the law;

+ Notify not to continue exporting goods to enjoy GSP;

+ Do not comply with GSP regulations;

+ Incorrectly declare the origin of goods;

+ Forge certificates of origin;

+ Do not update information as specified in Clause 5, Article 11 of this Circular;

+ Repeatedly fail to fully declare information as specified or fail to upload documents certifying the origin of goods according to GSP and related documents for the export consignment as specified in Clause 5, Article 6 of Circular 38/2018/TT-BCT after being reminded in writing or by other legally equivalent means by the organization receiving the REX number registration;

+ Violating other regulations or committing fraud concerning the origin of goods.

- The revocation of the REX number is carried out by the organization receiving the REX number registration. The organization receiving the REX number registration shall store the information about the revocation of the REX number for 10 years from the end date of the revocation year.

- If the revoked REX number is not compliant, the organization receiving the REX number registration shall notify the trader of the continuation of using the original REX number and the permission to issue subsequent certification documents for consignments exported to the European Union, Norway, Switzerland, and Turkey during the period of REX number revocation.

- In the case of traders violating the regulations from Point c to Point g, Clause 1, Article 4 of Circular 38/2018/TT-BCT, besides handling violations according to the law on the origin of goods, traders will only be considered for reissuing a new REX number at least 30 days from the date of REX number revocation.

- In the case of traders violating the regulations at Point h, Clause 1, Article 4 of Circular 38/2018/TT-BCT, besides handling violations according to the law on the origin of goods, traders will only be considered for reissuing a new REX number at least 180 days from the date of REX number revocation.

- The re-registration of the REX number specified in Clause 4, Clause 5, Article 4 of Circular 38/2018/TT-BCT is carried out according to the provisions of Article 4 of this Circular after traders have rectified and sent a declaration of commitment not to reoffend to the organization receiving the REX number registration.

Traders use the new REX number to certify the origin of goods exported to the European Union, Norway, Switzerland, and Turkey and are not allowed to issue subsequent certification documents for consignments exported during the period of REX number revocation.

Vietnam: What is the Generalised System of Preferences according to Circular 38/2018/TT-BCT?

According to Article 1 of Circular 38/2018/TT-BCT:

Scope of adjustment

This Circular regulates the certification of the origin of goods according to the Generalised System of Preferences (hereinafter referred to as GSP) of the European Union, Norway, Switzerland, and Turkey.

Therefore, it can be understood that the Generalised System of Preferences according to Circular 38/2018/TT-BCT is abbreviated as GSP.