Circular No. 09/2022/TT-BCT

CIRCULAR

AMENDING AND SUPPLEMENTING A NUMBER OF ARTICLES OF CIRCULAR No. 40/2015/TT-BCT DATED NOVEMBER 18, 2015 OF THE MINISTER OF INDUSTRY AND TRADE PROVIDING FOR THE IMPLEMENTATION OF RULES OF ORIGIN UNDER THE VIET NAM - KOREA FREE TRADE AGREEMENT

Pursuant to the Government's Decree No. 98/2017/ND-CP dated August 18, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Government's Decree No. 31/2018/ND-CP dated March 8, 2018, detailing the Law on Foreign Trade Management regarding origin of goods;

In implementation of the Exchange of Notes amending the Product Specific Rules provided in Annex 3-A of the Free Trade Agreement between Viet Nam and Korea, signed by the Minister of Industry and Trade of Viet Nam and the Minister of Trade, Industry and Energy of Korea on December 22, 2021;

At the proposal of the Director of the Import-Export Department;

The Minister of Industry and Trade promulgates the Circular amending and supplementing a number of articles of Circular No. 40/2015/TT-BCT dated November 18, 2015 of the Minister of Industry and Trade providing for the implementation of rules of origin under the Viet Nam - Korea Free Trade Agreement (hereinafter referred to as Circular No. 40/2015/TT-BCT).

Article 1. Amendments and supplements to a number of articles of Circular No. 40/2015/TT-BCT

1. To replace Clause 2, Article 1 of Circular No. 40/2015/TT-BCT as follows:

To replace the Product Specific Rules (Appendix II) provided in Clause 2, Article 1 of Circular No. 40/2015/TT-BCT with the Appendix issued together with this Circular.

2. To amend and supplement Article 2 of Circular No. 40/2015/TT-BCT as follows:

“The procedures for the issuance and verification of Viet Nam's C/O form VK shall comply with Appendix IV issued together with this Circular, the Government's Decree No. 31/2018/ND-CP dated March 8, 2018, detailing the Law on Foreign Trade Management regarding origin of goods, and Circular No. 05/2018/TT-BCT dated April 3, 2018 of the Minister of Industry and Trade providing for origin of goods”.

Article 2. Implementation provisions

1. This Circular takes effect from August 1, 2022.

2. Where the legal documents referred to in this Circular are amended, supplemented or replaced, the new documents shall apply./.

APPENDIX

PRODUCT SPECIFIC RULES (issued together with Circular No. 09/2022/TT-BCT dated June 1, 2022 of the Minister of Industry and Trade amending and supplementing a number of articles of Circular No. 40/2015/TT-BCT)

Article 1. General provisions

1. The Product Specific Rules provided in this Appendix are based on the Harmonized System (HS 2017). In case of any difference between the description in this Appendix and the description in the legal instrument of the Harmonized System developed by the World Customs Organization, the description in the World Customs Organization's Harmonized System shall prevail.

2. A specific rule of origin, or a set of specific rules of origin, applicable to a particular HS subheading is set out immediately adjacent to that subheading.

3. Where a particular HS subheading applies alternative origin criteria, the goods shall be considered originating if they satisfy any one of those alternative criteria.

4. Where a specific rule of origin requires a change in tariff classification, it means that each non-originating material used in the production of the goods must satisfy the corresponding change in tariff classification. The change in tariff classification requirement applies only to non-originating materials.

5. Where a specific rule of origin requires a change in tariff classification but excludes changes from certain tariff lines at chapter, heading or subheading level of the Harmonized System, it means that materials classified under those excluded HS codes must be originating for the goods to be considered originating.

Article 2. Interpretation of terms

1. For the purposes of this Appendix, the following terms are construed as follows:

Chapter means the first 2 (two) digits of the tariff classification number under the Harmonized System;

Heading means the first 4 (four) digits of the tariff classification number under the Harmonized System;

Subheading means the first 6 (six) digits of the tariff classification number under the Harmonized System.

2. For the purposes of this Appendix, certain terms in column 5 of the Product Specific Rules list below are construed as follows:

CC means that all non-originating materials used in the production of the goods must undergo a change in tariff classification at the 2 (two)-digit level;

CTH means that all non-originating materials used in the production of the goods must undergo a change in tariff classification at the 4 (four)-digit level;

CTSH means that all non-originating materials used in the production of the goods must undergo a change in tariff classification at the 6 (six)-digit level;

RVC(XX) means that the goods must attain a regional value content of not less than XX per cent (%) calculated in accordance with Clause 2, Article 4 of Appendix I issued together with Circular No. 40/2015/TT-BCT;

WO means goods wholly obtained or produced entirely in the territory of a member country as defined in Article 3 of Appendix I issued together with Circular No. 40/2015/TT-BCT.