Vietnam: Red channel according to Circular No. 15/2018/TT-BCT

According to Circular No. 15/2018/TT-BCT of the Ministry of Industry and Trade of Vietnam, regulations on red channel are as follows:

* Identification of red channel traders

- Traders that commit the violations prescribed in Article 29 of Decree No. 31/2018/ND-CP of Vietnam’s Government within the last 2 years before the date of application;

- Traders that fail to provide necessary documents to verify origin of goods or the origin of goods is considered ineligible by the customs authority of the importing country within the last 2 years before the date of application;

- Green channel traders who export red channel goods as prescribed in Article 7 of Circular No. 15/2018/TT-BCT without any production facility or adequate capacity for production of exported goods.

* Identification of red channel goods

- Red channel goods include:

+ Goods whose origins are likely to be fraudulent for the purpose of evading trade remedy measures of the importing country or taking advantage of preferential tariff commitments given by the importing country; or

+ Goods whose C/Os which are subject to investigation and verification of origin of goods increases considerably and extraordinarily in quantity as required by the importing country.

- The Import and Export Department (Ministry of Industry and Trade) shall publish and update the list of red channel goods.

* Red channel requirements

- Application for preferential C/O: A red channel trader must submit both a physical and electronic application including the documents prescribed in clause 1 in Article 15 of Decree No. 31/2018/ND-CP.

- Time for issuing preferential C/O: An application for preferential C/O shall be processed within 3 working days as prescribed in clause 3 in Article 29 of Decree No. 31/2018/ND-CP from the day on which the satisfactory physical application is received.

- Physical inspection of goods and site inspection of production facilities: The issuer shall carry out the physical inspection of goods and site inspection of production facilities if the preferential C/O is applied for the first time or there is suspicion of fraudulent misrepresentation of origin of goods when receiving the application for preferential C/O from the trader.

View relevant contents at: Circular No. 15/2018/TT-BCT of the Ministry of Industry and Trade of Vietnam takes effect from August 15, 2018.

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