What are regulations on non-preferential rules of origin regarding minimal operations and processes in Vietnam?

What are regulations on non-preferential rules of origin regarding minimal operations and processes in Vietnam?

Pursuant to Article 9 of the Decree 31/2018/NĐ-CP stipulating non-preferential rules of origin regarding minimal operations and processes in Vietnam as follows:

The operation or processes listed below, undertaken by themselves or in combination with each other, are considered to be minimal and shall not be undertaken into account in determining whether or not a good is originating in a country, group of country, or territory:

1. ensuring preservation of goods in good condition for the purposes of transport and storage (air ventilation, spreading, drying, cooling, in brine, sulfur steam or adding other additives, removing damaged parts and the like).

2. dust-cleaning, screening, selecting, classifying (including grouping into sets), washing, painting or cutting into pieces.

3. changing packaging and disintegration or assembly of goods lots; bottling, packaging, putting up into packs or boxes, and other simple packaging jobs.

4. affixing of marks, labels or other like distinguishing signs on products and their packaging.

5. simply mixing goods, whether of the same or different kind.

6. simply assembling parts of a product into a complete product.

7. Combination of two or more jobs listed in Clauses 1 thru 6 of this Article.

8. slaughtering animals.

What are regulations on identification of origin of unassembled or knocked down packages, accessories, spare parts, tools or goods in Vietnam?

Pursuant to Article 10 of the Decree 31/2018/NĐ-CP stipulating identification of origin of unassembled or knocked down packages, accessories, spare parts, tools or goods in Vietnam as follows:

1. If the good applies “Change in tariff classification of goods”, packing materials and containers containing the good used in retailing, when being classified together with the good, shall be eliminated from non-originating materials used in the production of the good.

2. If the good applied “Ad valorem percentage”, the value of packing materials and containers containing the good used in retailing is considered as an integral part of the good and is regarded in determining origin of the good.

3. Packing materials and containers for transportation and shipment of a good shall not be taken into account in determining the origin of any good.

4. Documents introducing or providing use instructions for the good; accessories, spare parts and tools accompanying the good and of inappropriate type and quantity shall be considered having the same origin with such good.

5. For unassembled or knocked down good which must be imported in separate shipments instead of a single shipment due to transportation or production conditions, the good in such shipments shall, at the request of the importer, be considered having the same origin.

What are regulations on De Minimis in Vietnam?

Pursuant to Article 11 of the Decree 31/2018/NĐ-CP stipulating De Minimis in Vietnam as follows:

1. A good that does not satisfy a change in tariff classification (CTC) under Appendix of Product Specific Rules as provided in Article 8 of this Decree will nonetheless be an originating good if:

a) for a good, other than that provided for in Chapter 50 to 63 of the HS Code, the value of all non-originating materials used in production of the good that did not undergo the required CTC does not exceed 15 percent of the FOB value of the good;

b) for a good provided for in Chapter 50 to 63 of the HS Code, the weight of all non-originating materials used in production of the good that did not undergo the required CTC does not exceed 15 percent of the total weight of the good, or the value of all non-originating materials used in production of the good that did not undergo the required CTC does not exceed 15 percent of the FOB value of the good; and

c) the goods prescribed in Point a and Point b Clause 1 of this Article meet all other applicable criteria in this Decree and guiding Circular(s).

2. The value of materials prescribed in Point a and Point b Clause 1 of this Article shall be included in the value of non-originating materials for the purpose of calculation of ad valorem percentage.

What are indirect material affecting non-preferential rules of origin in Vietnam?

Pursuant to Article 12 of the Decree 31/2018/NĐ-CP stipulating indirect material affecting non-preferential rules of origin in Vietnam as follows:

Indirect material means a good used in the production, testing, or inspection of a good but not physically incorporated into the good, or a good used in the maintenance of buildings or the operation of equipment associated with the production of a good, including:

1. fuel and energy.

2. tools, dies and moulds.

3. spare parts and materials used in the maintenance of equipment and buildings.

4. lubricants, greases, compounding materials and other materials used in production and used to operate equipment and buildings.

5. gloves, glasses, footwear, clothing, safety equipment and supplies.

6. equipment, devices and supplies used for testing and inspecting goods.

7. catalysts and solvents.

8. any other goods that are not incorporated into the good but whose use in the production of the good can reasonably be demonstrated to be a part of that production.

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