Vietnam: What is the origin of goods? How to determine the origin of goods?

What is the origin of goods?

"Origin of goods" means a country, group of countries or territory where such goods has been wholly obtained or where the last substantial transformation has been carried out when more than one country, group of countries or territory is concerned in the production of the goods.

(According to Clause 1 Article 3 of the Decree 31/2018/ND-CP)

As regulations above, a country, group of countries or territory shall be verified as origin of goods in one of following cases:

- Where such goods has been wholly obtained

- Where the last substantial transformation has been carried out when more than one country, group of countries or territory is concerned in the production of the goods

How to determine the origin of goods in Vietnam?

Pursuant to Article 27 of the Law on Customs in 2014 stipulating verification of origin of goods as follows:

- Customs authorities shall inspect and verify the origin of imported goods based on customs declaration, certification of origin, documents in customs documents and results of physical inspection of goods. 

Certification of origin of imported goods must be issued by competent agencies of exporting countries or self-certified by manufacturers, exporters or importers under treaties to which the Socialist Republic of Vietnam becomes a party;

-  In case of doubt about the origin of imported goods, customs authorities shall inspect and verify the origin of goods at manufacturing countries under treaties to which the Socialist Republic of Vietnam becomes a party. Results of origin inspection and verification are legally valid for verification of the origin of imported goods.

While awaiting the results of the inspection and verification of the origin of the goods, imported goods are cleared according to the provisions of Article 37 of the Law on Customs in 2014. However, they do not enjoy preferential tax rates. The actual tax payable is based on the results of the inspection and verification of the origin of the goods.

At the same time, Articles 4,5,6 of Circular 05/2018/TT-BTC stipulate on how to determine imported goods, specifically:

- The general principle for determining the origin of goods is: The goods must have originated in the country, group of countries, or territory where the final production process that fundamentally changes the goods takes place.

- The determination of the origin of imported goods will be based on 02 rules:

+ Preferential rules of origin of goods:

For imported goods that are eligible for preferential tax and non-tariff regimes, the preferential rules of origin are implemented in accordance with international agreements that Vietnam has signed or acceded to and in accordance with the regulations of the Ministry of Industry and Trade guiding those international agreements.

+ Non-preferential rules of origin of goods:

Imported goods are considered to have pure origin or to be fully produced in one country, group of countries, or territory if they meet the requirements of Article 7 of Decree 31/2018/ND-CP.

Imported goods are considered to have non-pure origin or to be not fully produced in one country, group of countries, or territory if they meet the origin criteria under the List of Specific Rules of Origin set out in Appendix I of Circular 05/2018/TT-BTC to guide Article 8 of Decree 31/2018/ND-CP.

What documents are included in the application for pre-determination of origin of goods in Vietnam?

Pursuant to Article 3 of the Circular 33/2023/TT-BTC, before following customs procedures for their import or export shipment, the organization or individual that requests pre-determination of origin shall submit an application for pre-determination of origin which includes:

- An application form made using the Form in Appendix I enclosed herewith: 01 original;

- The statement of production costs made using the Form in Appendix II enclosed herewith and the origin declaration made using the Form in Appendix III enclosed herewith by the domestic producer/supplier of materials or supplies which are used in the production of another product: 01 copy;

- The production process or certificate of analysis (if any): 01 copy.

- Catalogue or photos of goods: 01 copy.

Please Login to be able to download