Circular 40: Regulation on 07 elements exempt from determination of the origin of goods in Vietnam

Circular 40: Regulation on 07 elements exempt from the determination of the origin of goods in Vietnam (Illustrative Image)

Appendix I of the Rules of Origin issued together with Circular 40/2015/TT-BCT, during the determination of the origin of goods in Vietnam, the following elements may be used in the production process without determination of the origin and do not constitute these goods:

1. Energy and fuel;
2. Tools, molds, and dies;
3. Spare parts and materials used for maintaining equipment and factories;
4. Lubricants, greases, compounds, and other materials used in production or for operating equipment and factories;
5. Gloves, glasses, footwear, clothing, protective equipment, and tools;
6. Equipment, tools, and machinery used for checking or testing goods; and
7. Any other materials that do not constitute the goods but their use must be proven necessary in the production process of the goods.

Additionally, Appendix I issued together with this Circular stipulates the following concerning identical and interchangeable materials or goods:

- The determination of origin for identical and interchangeable materials or goods can be based on widely applied accounting principles, rules, and inventory asset management practices within the territory of the exporting member country;

- Once the accounting method for inventory asset management has been chosen, this method must be used throughout the financial year.

Details can be found in Circular 40/2015/TT-BCT effective from December 20, 2015.

Ty Na

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