Guidance on the implementation of the Circular on collection of fees for issuance of certification of goods origin (C/O) in Vietnam

Guidance on the implementation of the Circular on collection of fees for issuance of certification of goods origin (C/O) in Vietnam​ (Image from the Internet)

Guidance on the implementation of the Circular on collection of fees for issuance of certification of goods origin (C/O) in Vietnam

The content mentioned in Official Dispatch 7453/BTC-CST in 2023 guides the implementation of Circular 36/2023/TT-BTC which stipulates the rates, collection policies, submission, management, and usage of fees for issuance of certification of goods origin (C/O).

The Ministry of Finance of Vietnam has opinions on the issues raised by the Ministry of Industry and Trade as follows:

1. On the organization of fee collection

Clause 1, Article 34 of the Law on Foreign Trade Management stipulates: “The Minister of Industry and Trade shall issue or authorize another organization to issue certificates of origin for goods.”

Based on the Law on Foreign Trade Management and the proposal of the Ministry of Industry and Trade, Article 3 of Circular 36/2023/TT-BTC stipulates:

“The organization collecting fees for certifying the origin of goods (C/O) is the agency or organization authorized to issue certificates of origin of goods as stipulated at point b, clause 2, Article 1 of this Circular. This includes: the Ministry of Industry and Trade and other organizations authorized by the Ministry of Industry and Trade to issue certificates of origin for goods.”

2. On the management and usage of fees

Article 5 of Circular 36/2023/TT-BTC stipulates: “2. No later than the 5th of each month, the fee-collecting organization stipulated in Article 3 of this Circular must submit the entire amount of fees collected from the previous month, along with the interest generated from the fee account opened at the credit institution (if any) to the fee account pending submission to the state budget of the Ministry of Industry and Trade at the State Treasury.

3. The Ministry of Industry and Trade of Vietnam must declare, submit, and settle fees and any interest generated (in the fee account pending submission to the state budget of the Ministry of Industry and Trade at the State Treasury) as per the regulations in Circular 74/2022/TT-BTC; manage and use the fees as stipulated in Article 6 of this Circular.”

- Article 6 of Circular 36/2023/TT-BTC stipulates: “Article 6. Management and Usage of Fees at the Ministry of Industry and Trade

1. The fee-collecting organization is responsible for:

a) Submitting 100% of the fees collected to the state budget (central budget). The costs of providing services and collecting fees are covered by the state budget (central budget).

b) Annually preparing an expenditure estimate to serve the activities of providing services and collecting fees (including costs for issuing certificates of origin for goods based on authorization) according to policies and norms of state budget expenditures as prescribed by law.

2. In case the fee-collecting organization is eligible for operational cost lump sum from the fee source as stipulated in clause 1, Article 4 of Decree 120/2016/ND-CP dated August 23, 2016, of the Government of Vietnam, detailing and guiding the implementation of some articles of the Law on Fees and Charges, they are permitted to retain 83% of the fees collected to cover the costs of providing services and collecting fees as per the regulations in Article 5 of Decree 120/2016/ND-CP and pay the costs for the authorized organization issuing certificates of origin for goods and collecting fees according to the legal regulations; submitting 17% of the fees collected to the state budget (central budget) according to the programs and sub-items of the state budget list.”

Based on the aforementioned regulations, the fee-collecting organization authorized by the Ministry of Industry and Trade to issue certificates of origin for goods (includes: VCCI; Hai Phong Department of Industry and Trade; Management Boards of industrial zones - export processing zones) must submit the entire amount of fees collected to the fee account pending submission to the state budget of the Ministry of Industry and Trade at the State Treasury, without retaining the collected fees. The Ministry of Industry and Trade consolidates, declares, and settles fees for certifying the origin of goods as stipulated in the Law on Tax Administration.

In case the fee-collecting organization (Ministry of Industry and Trade or unit under the Ministry of Industry and Trade assigned by the Ministry of Industry and Trade to collect fees for certifying the origin of goods) is eligible for operational cost lump sum from the fee source as stipulated in clause 1, Article 4 of Decree 120/2016/ND-CP, they are permitted to retain 83% of the total fees collected to cover operational costs of providing services and collecting fees (including payment for the authorized organization issuing certificates of origin for goods performing the issuance as per the authorization document). The source of authorization funds is a fiscal source for the authorized units.

3. On assigning a unit to manage fees for certifying the origin of goods under the Ministry of Industry and Trade of Vietnam

Article 7 of the Law on Fees and Charges stipulates: “Fee and charge collecting organizations include state agencies, public service providers, and other organizations authorized by competent state agencies to provide public services and carry out state management tasks can collect fees and charges.”

Based on the Decisions stipulating the functions, tasks, powers, and organizational structures of the units under the Ministry of Industry and Trade, the Ministry of Industry and Trade assigns the fee-collecting unit for certifying the origin of goods (Import-Export Department or Office of the Ministry) to ensure compliance with the stipulations in Article 7 of the Law on Fees and Charges as an organization providing public services (certifying the origin of goods) to the people and businesses.

Official Dispatch 7453/BTC-CST was issued on July 19, 2023.

Duong Chau Thanh

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