Cases applying actions against origin fraud in Vietnam

Cases applying actions against origin fraud in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What is origin of good?

According to Clause 1, Article 3 of Decree 31/2018/ND-CP, origin of good means a country, group of countries or territory where such good has been wholly obtained or where the last substantial transformation has been carried out when more than one country, group of countries or territory is concerned in the production of the good.

2. Cases applying actions against origin fraud in Vietnam

Cases applying actions against origin fraud are prescribed as follows:

(1) The issuing authority shall take actions against origin fraud in the following cases:

(i) Suspend issuance of C/O within 3 months from the first time the trader uploads information and data not involved with the applications for issuance of C/O in the electronic C/O management system of the Ministry of Industry and Trade at the address www.ecosys.gov.vn or another website of the issuing authority designated by the Ministry of Industry and Trade;

(ii) Suspend issuance of C/O within 6 months from the date on which the trader is found using false documents or making a fraudulent declaration when applying for C/O;

(iii) Revoke the issued C/O and suspend issuance of C/O within 6 months from the date on which the trader fails to provide adequate documents or provide incorrect evidence for origin of goods when the issuing authority is carrying out post inspection.

(2) Apart from the actions mentioned in Point b and Point c Clause 1 of Article 29 of Decree 31/2018/ND-CP, the issuing authority shall apply red channel operation in risk management system to the trader and announce it on the Ministry of Industry and Trade’s website www.moit.gov.vn.

(3) If the trader fails to fulfill responsibilities prescribed in Clauses 4, 5, 8 Article 24 and Article 30 of Decree 31/2018/ND-CP, the issuing authority shall put up a notice of trader’s name on a bulletin board at the place of issue within 6 months.

The processing result shall be provided within 3 working days from the date on which an adequate and satisfactory application is received as prescribed in Article 15 of Decree 31/2018/ND-CP.

After 6 months, the issuing authority shall apply the time limit for issuance of C/O as prescribed in Article 16 of Decree 31/2018/ND-CP

(4)  In necessary cases, the Minister of Industry and Trade shall send a report on specific actions against illegal transshipment and origin fraud and protection of goodwill of Vietnamese exported goods to avoid threats that importing countries investigating;

And apply trade remedies such as creating surveillance mechanism in the course of issuing C/O, suspending issuance of C/O for certain products or traders committing fraud.

(Article 29 of Decree 31/2018/ND-CP)

3. Regulations on the verification of origin of exported goods and imported goods in Vietnam

Pursuant to Article 28 of Decree 31/2018/ND-CP, the verification of origin of exported goods and imported goods is regulated as follows:

- The Ministry of Industry and Trade shall provide guidelines for verification of exported goods and imported goods before and after the C/O is issued and for the self-certification of origin of exported goods in one of the following cases:

+ Verify certification of origin issued by the Ministry of Industry and Trade or an agency authorized by the Ministry of Industry and Trade or self-issued certificate of origin as required by customs authority of the importing country;

+ Cooperate in inspection visit to the manufacturing facility of the trader to verify the origin of the goods at the request of the customs authority of importing country if certification of origin prescribed in Point a Clause 1 of Article 28 of Decree 31/2018/ND-CP is refused;

+ Form a delegation in charge of inspection visit to the manufacturing facility before the C/O is issued or before a notice of acceptance is granted to the application for self-certification of origin as prescribed by the Ministry of Industry and Trade;

+ Form a delegation in charge of inspection visit to the manufacturing facility after the C/O is issued or after a notice of acceptance is granted to the application for self-certification of origin as prescribed by the Ministry of Industry and Trade;

+ Take charge and cooperate with domestic relevant bodies and specialized agencies of the importing country to verify the origin of goods.

- The Ministry of Finance provides guidelines for verification of origin of exported goods and imported goods when following customs declaration in accordance with law on customs in the following cases:

+ Verifying origin of exported goods when carrying out export procedures, ensuring that the origin declaration is correct. If it has reasonable doubts as to origin fraud or detects signs of origin fraud associated with exported goods, the Ministry of Industry and Trade shall cooperate with the Ministry of Industry and Trade in actions against origin fraud and illegal transshipment;

+ In case of imported goods:

++ Verify the origin of imported goods when following customs declaration;

++ Send a request for verifying certification of origin to the customs authority or competent authority of the importing country at random or when it has reasonable doubts as to whether the certification is accurate and relevant information of the goods is authentic;

++ Send a delegation in charge of inspection visit to the manufacturing facility of the trader in the exporting country in accordance with international treaty to which Vietnam is a signatory if the verification of certification provided by the customs authority or competent authority of exporting country is unsatisfactory, and send a notice to the Ministry of Industry and Trade for cooperation.

Nguyen Thi Hoai Thuong

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