12:14 | 13/06/2024

What does 'preferential C/O' mean? To be eligible to apply for the preferential C/O, are traders required to have experience in using preferential C/O in Vietnam?

What does "preferential C/O" mean? To be eligible to apply for the preferential C/O, are traders required to have experience in using preferential C/O in Vietnam? If a green channel trader has not had the printed export customs declaration, what is the time limit for late submission of documents?

Vietnam: What does "preferential C/O" mean?

Pursuant to Article 1 of Circular 15/2018/TT-BCT:

Scope
This Circular deals with categorization of applicants for preferential Certificate of Origin (hereinafter referred to as “C/O”).

Thus, preferential C/O means preferential Certificate of Origin in Vietnam.

Vietnam: What does "preferential C/O" mean? (Image from the Internet)

To be eligible to apply for the preferential C/O, are traders required to have experience in using preferential C/O in Vietnam?

Pursuant to Article 4 of Circular 15/2018/TT-BCT:

Identification of green channel traders
A trader applying for preferential C/O will be eligible for green channel if such trader:
1. is certified as a prestige exporter by the Ministry of Industry and Trade; or
2. is certified as eligible for preferential customs treatment by the Ministry of Finance; or
3. satisfies the following requirements:
a) The trader has not violated the rule of origin in the last 2 years before the day applying for preferential C/O through the green channel;
b) The trader has a document archiving system (both physical and electronic documents) as proof of the authenticity of the C/Os and origin of goods during the archiving period specified in Decree No.31/2018/ND-CP;
c) The trader has applied for at least 30 preferential C/Os per year on www.ecosys.gov.vn

Thus, a trader applying for preferential C/O will be eligible for green channel if such trader:

(1) is certified as a prestige exporter by the Ministry of Industry and Trade; or

(2) is certified as eligible for preferential customs treatment by the Ministry of Finance; or

(3) satisfies the following requirements:

- The trader has not violated the rule of origin in the last 2 years before the day applying for preferential C/O through the green channel;

- The trader has a document archiving system (both physical and electronic documents) as proof of the authenticity of the C/Os and origin of goods during the archiving period specified in Decree No.31/2018/ND-CP;

- The trader has applied for at least 30 preferential C/Os per year on www.ecosys.gov.vn

Therefore, to be eligible to apply for the preferential C/O, traders do not need to have experience in using preferential C/O.

To be eligible for green channel in applying for the preferential C/O, the trader must meet one of the 03 requirements mentioned above:

If failing to meet criteria (1) or (2), traders can rely on criterion (3):

However, in this case, traders must satisfy all the conditions stated in criterion (3). In this situation, traders must also meet the experience requirement of using preferential C/O: The trader has applied for at least 30 preferential C/Os per year on www.ecosys.gov.vn

Vietnam: If a green channel trader has not had the printed export customs declaration, what is the time limit for late submission of documents?

Pursuant to Clause 2 Article 5 of Circular 15/2018/TT-BCT:

Benefits of green channel
...
2. With regard to late submission of documents
A green channel trader may submit the documents prescribed in clause 3 in Article 15 of Decree No.31/2018/ND-CP within 45 working days from the day on which the C/O is issued.
...

Pursuant to Clause 3 Article 15 of Decree 31/2018/ND-CP:

Application for issuance of C/O
1. If a trader applies for initial C/O or C/O of initially-exported goods or C/O of changeable goods (goods having possible changes to quantity norms, weight norms, HS codes, value and supply of input or output materials every time a C/O is issued), the application for issuance of C/O shall include:
...
c) A printed export customs declaration. If exported goods are exempt from customs declaration as prescribed by law, copy of customs declaration shall not be required;
...
3. If the applicant has not had the documents prescribed in Point c and Point dd Clause 1 of this Article, the trader is entitled to submit them thereafter provided not exceeding 15 working days from the date on which the C/O is issued. After 15 days, if the trader fails to submit additional documents, the issuing authority shall revoke or annul the C/O that has been issued as prescribed in Article 22 of this Decree.
...

Therefore, if a green channel trader has not had the printed export customs declaration, it may submit the documents within 45 working days from the day on which the C/O is issued.

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