What are regulations on country of origin according to comprehensive economic partnership agreement in Vietnam?

What are regulations on country of origin according to comprehensive economic partnership agreement in Vietnam?

Pursuant to Article 9 of the Circular 05/2022/TT-BTC (takes effect 04/04/2022) stipulating country of origin as follows: 

1. The country of origin shall be the Party where the good meets the requirements set out in Article 5 of this Circular.

2. With regard to the good which is produced in a Party exclusively from originating materials from one or more of the Parties as prescribed in Clause 2 Article 5 of this Circular, the country of origin shall be the exporting Party, provided that the production process of that good is other than the minimal operations and processes set out in Clause 3 Article 10 of this Circular.

3. For an originating good subject to tariff differentials in accordance with the provisions of Annex IV enclosed herewith, the country of origin shall be the exporting Party, provided that the good meets the requirements specified in Article 5 of this Circular and has a domestic value content (DVC) of less than 20%.

4. In the event that the exporting Party of an originating good is not established to be the country of origin in accordance with Clauses 1 through 3 of this Article, the country of origin shall be the Party that contributed the highest value of originating materials used in the production of that good in the exporting Party.

5. DVC value shall be calculated using the formulas for calculation of RVC specified in Article 8 of this Circular. For the purposes of calculating DVC, originating materials imported from other Parties shall be considered as non-originating.

What are regulations on minimal operations and processes in Vietnam?

Pursuant to Article 10 of the Circular 05/2022/TT-BTC (takes effect 04/04/2022) stipulating minimal operations and processes in Vietnam as follows: 

1. “simple” describes an activity which does not need special skills, or machines, apparatus, or equipment especially produced or installed for carrying out the activity.

2. “slaughtering” means the mere killing of animals.

3. Minimal operation or process is any operation set out below:

a) Preserving operations to ensure that the good remains in good condition for the purposes of transport or storage.

b) Packaging or presenting goods for transportation or sale.

c) Simple processes, consisting of sifting, screening, sorting, classifying, sharpening, cutting, slitting, grinding, bending, coiling, or uncoiling.

d) Affixing or printing of marks, labels, logos, or other like distinguishing signs on goods or their packaging.

dd) Mere dilution with water or another substance that does not materially alter the characteristics of the good.

e) Disassembly of products into parts.

g) Slaughtering of animals.

h) Simple painting and polishing operations.

i) Simple peeling, stoning, or shelling.

k) Simple mixing of goods, whether or not of different kinds.

l) Any combination of two or more of operations referred to in Points a through k of this Clause.

4. The operations specified in Clause 3 of this Article, when undertaken on non-originating materials to produce a good, shall be considered as insufficient working or processing to confer on that good the status of an originating good.

Best regards!