Guidelines on Determining Non-Preferential Origin of Goods

19:02, 11/07/2024

Recently, the Ministry of Industry and Trade issued Circular 05/2018/TT-BCT stipulating the origin of goods.

According to Circular 05, the determination of non-preferential origin of goods is based on the following rules:

Exported goods or imported goods are considered to be wholly obtained or produced entirely in one country, group of countries, or territory if they meet the requirements specified in Article 7 of Decree 31/2018/ND-CP.
Exported goods or imported goods are considered to be not wholly obtained or not produced entirely in one country, group of countries, or territory if they meet the origin criteria listed in the Specific Commodity Rule Appendix promulgated with Circular 05. The non-preferential origin criteria in Appendix I are determined as follows:

- Criterion “Change in Tariff Classification” (abbreviated as CTC): signifies a change in the HS code of the goods at the 2-digit, 4-digit, or 6-digit level compared to the HS code of the non-origin input materials used to produce those goods.- Criterion “Percentage Value” (abbreviated as LVC): is calculated according to the formula stipulated in Clause 3, Article 6 of Circular 05.

For the LVC calculation formula, refer to Circular 05/2018/TT-BCT, effective from April 3, 2018.

- Thanh Lam -

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