What is CFS? What are the procedures for issuance of CFS for exported goods in Vietnam?

Hello, The Lawnet would like to answer as follows;

1. What is CFS?

According to the provisions of Clause 1, Article 36 of the Law on Foreign Trade Management 2017, CFS (abbreviated from the phrase Container Freight Station) is a certificate of free sale. Certificate of free sale is a certificate issued to an exporter by the competent authority of the exporting country to certify the free sale of products in the exporting country.

In addition, CFS has another meaning related to the field of logistics. CFS (Certificate of Free Sale) is the cost of import and export when goods go in and out of the warehouse. After the CFS warehouse performs operations such as lifting and lowering goods and transporting and moving goods by forklift to the port, Next, proceed to pack the goods into the container. To perform this operation, businesses need to pay the costs required by the port. These costs are called CFS costs. CFS can also be considered a separate warehouse system used by organizations and businesses as a place to gather, consolidate, or separate retail goods. Thereby helping businesses collect retail goods from many different sources or split or combine goods from many shippers into one container to ensure cost savings when exporting. CFS warehouse operations are quite similar to those of current warehouses and cargo ports.

Thus, CFS means both a certificate of origin of goods and a container station and warehouse serving import and export.

What are the cases of issuance of CFS for exported goods in Vietnam?

According to Clause 1 and Clause 2, Article 11 of Decree 69/2018/ND-CP regulating the issuance of CFS for exported goods in the following cases:

- Ministries and ministerial-level agencies empowered to issue CFS for exported goods shall issue a CFS when:

+ Receiving an application for CFS submitted by an exporter; and

+ Considering that goods have applied standards as per the regulations and laws in force.

- The CFS for exported goods must be expressed in English and at least contain information prescribed in Clause 3 Article 10 of Decree 69/2018/ND-CP.

+ Name of CFS issuing authority.

+ CFS number and date of issue.

+ Goods eligible for CFS.

+ Type or category of goods eligible for CFS.

+ Manufacturer’s name and address.

+ The CFS clearly indicates that the goods are produced and freely sold in the market or the country of production or the country by which the CFS is issued.

+ Full name and signature of the CFS signatory and seal of the CFS issuing authority.

Note: If an importing country requires the trader to submit a CFS using a form regulated by its regulations and laws, the CFS issuing authority shall issue the CFS according to such required form.

Thus, CFS is issued for exported goods in case traders request to issue CFS for exported goods. Besides, when the importing country requests a separate form, the CFS issuing agency will issue it based on that form.

2. What are the procedures for issuance of CFS for exported goods in Vietnam?

According to the provisions of Clause 3, Article 11, Decree 69/2018/ND-CP, procedures for issuance of CFS for exported goods are as follows:

Step 1. CFS issuance application

- The trader shall send an application, in person, by post or online (if applicable) to the CFS issuing authority, including required documents below:

+ An application form for CFS, stating description and HS head of the good, number of certificate of conformity with standards or registration number, standard number (if any), content of compounding materials (if any), and importing country: 1 original, expressed in Vietnamese and English.

+ Investment certificate or business registration certificate, business registration certificate: 1 copy bearing the trader's stamp.

+ List of manufacturing facilities (if any), including name and address of facilities, products manufactured for export: 1 original.

+ A document of applied standards for the good enclosed with display (on label or packages or packaging manual thereto): 1 copy bearing the trader's stamp.

Step 2. Supplement documents in case they are incomplete

If the required documents are incomplete or invalid, the CFS issuing authority shall, within 3 working days from the date on which the application is received, notify the trader of deficiencies and allow the trader to correct the deficiencies.

Step 3. CFS issuance deadline

- If the required documents are complete and valid, the issuing authority shall issue the CFS within 3 working days from the receipt date. If the application is rejected, the CFS issuing authority shall provide explanation in writing.

Step 4. Check at the production site when there are signs of violation

- The CFS issuing authority may undertake a verification visit to the facility if the verification of application gives insubstantial grounds for issuing a CFS or any breach of regulations associated with the former CFS is found.

Step 5. Determine the number of CFS issued

-The trader may request number of CFS to be issued.

Step 6. Reissue documents upon request

- In case of supplementing or amending CFS; Reissue due to loss or misplacement of CFS, the trader sends a written request and related documents to the CFS issuing agency. Within 3 working days from the date of receiving the complete and prescribed dossier, the CFS-issuing agency will consider adjusting and re-issuing the CFS to the trader.

Note: The Ministry or ministerial-level agency shall revoke the CFS if:

- The exporter falsifies the documentary evidence or documents; or

- CFS is issued for goods that are not conformable to applied standards.

Best regards!

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