Circular No. 11/2024/TT-BCT

CIRCULAR

PROVIDING RULES OF ORIGIN UNDER THE FREE TRADE AGREEMENT BETWEEN THE GOVERNMENT OF THE SOCIALIST REPUBLIC OF VIET NAM AND THE GOVERNMENT OF THE STATE OF ISRAEL

Pursuant to the Government's Decree No. 96/2022/ND-CP dated November 29, 2022, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade; and the Government's Decree No. 105/2024/ND-CP dated August 1, 2024, amending and supplementing a number of articles of the Government's Decree No. 96/2022/ND-CP dated November 29, 2022, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade, and of the Government's Decree No. 26/2018/ND-CP dated February 28, 2018, on the Charter of organization and operation of Viet Nam Electricity;

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 Free Trade Agreement between the Government of the Socialist Republic of Viet Nam and the Government of the State of Israel signed on July 25, 2023;

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

The Minister of Industry and Trade promulgates the Circular providing rules of origin under the Free Trade Agreement between the Government of the Socialist Republic of Viet Nam and the Government of the State of Israel.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular provides the rules of origin under the Free Trade Agreement between the Government of the Socialist Republic of Viet Nam and the Government of the State of Israel (the VIFTA Agreement).

Article 2. Subjects of application

This Circular applies to:

1. Certificate of Origin (C/O) issuing authorities and organizations.

2. Traders.

3. Agencies, organizations and individuals concerned with the origin of exported and imported goods.

Article 3. Interpretation of terms

For the purposes of this Circular, the following terms are construed as follows:

1. “Chapter”, “Heading” and “Subheading” mean the chapters (2 digits), headings (4 digits) and subheadings (6 digits) used in the Harmonized Commodity Description and Coding System (hereinafter referred to as the “Harmonized System” or “HS”).

2. “Classification of goods” means the classification of a product or material under a particular heading or subheading.

3. “Consignment” means the goods sent together from an exporter to a consignee, or covered by a single transport document evidencing the carriage from the exporter to the consignee, or by a single invoice where there is no transport document.

4. “Customs value” means the value determined in accordance with Article VII of the General Agreement on Tariffs and Trade (GATT 1994) and the Agreement on Implementation of Article VII of GATT 1994 (the WTO Customs Valuation Agreement).

5. “CIF price” means the value of the imported goods, inclusive of the cost of freight and insurance up to the port or place of importation of Israel or of Viet Nam.

6. “Ex-works price” means the price paid for the goods to the producer in Viet Nam or Israel that carried out the last production or processing, provided that the price includes the value of the materials used and the costs incurred in the production, less any internal taxes which are, or may be, repaid when the final product is exported.

7. “FOB price” means the value of the goods free on board.

8. “Material” means any component, raw material, ingredient or part used to produce goods, physically incorporated into the goods, or worked or processed in the production of other goods.

9. “Identical and interchangeable materials” means materials of the same kind and of the same commercial quality, having the same technical and physical characteristics and which, once incorporated into the finished product, cannot be distinguished from one another.

10. “Product” means the product produced, even where it is intended for later use in another production process.

11. “Goods” includes materials and products.

12. “Production” means any method of production or processing, including assembly or specific operations such as farming, mining, harvesting, cultivating, raising, breeding, extracting, gathering, collecting, capturing, fishing, trapping, hunting or manufacturing.

13. “Aquaculture” means the farming of aquatic organisms, including fish, molluscs, crustaceans, other aquatic invertebrates and aquatic plants, from seedstock such as eggs, fingerlings, fry and larvae, by intervention in the rearing or growth processes to enhance production such as stocking, feeding or protection from predators.

14. “Value of non-originating materials” means the CIF price at the time of importation, or the earliest ascertainable price paid, for all the non-originating materials purchased by the producer in the production of the goods.

15. Competent authority:

a) For Viet Nam, the Ministry of Industry and Trade or the General Department of Customs of Viet Nam.

b) For Israel, the Customs Directorate of the Israel Tax Authority of the Ministry of Finance.

16. C/O issuing authority or organization:

a) For Viet Nam, the Ministry of Industry and Trade or an agency or organization authorised by the Ministry of Industry and Trade to issue C/O and notified to Israel under this Circular.

b) For Israel, the Customs Directorate of the Israel Tax Authority of the Ministry of Finance.

17. Member country:

a) The Socialist Republic of Viet Nam.

b) The State of Israel.

Article 4. Provisions on the certification and verification of the origin of goods in Viet Nam

1. Issued together with this Circular are the following Appendices:

a) Appendix I: Product Specific Rules.

b) Appendix II: Form of Viet Nam's VIFTA C/O.

c) Appendix III: Form of the supplementary declaration sheet to Viet Nam's VIFTA C/O.

d) Appendix IV: Instructions for completing Viet Nam's VIFTA C/O and the supplementary declaration sheet to Viet Nam's VIFTA C/O.

dd) Appendix V: Form of declaration by an approved exporter.

e) Appendix VI: Form of declaration by any exporter.

2. The list of Viet Nam's VIFTA C/O issuing authorities and organizations is updated on the electronic origin certification and management system of the Ministry of Industry and Trade at www.ecosys.gov.vn. Viet Nam's VIFTA C/O issuing authorities and organizations shall register their specimen seals and update those specimen seals as guided by the Ministry of Industry and Trade.

3. The procedures for certifying and verifying the origin of goods shall comply with the Government's Decree No. 31/2018/ND-CP dated March 8, 2018, detailing the Law on Foreign Trade Management regarding origin of goods, the legal provisions on origin of goods and this Circular.

Chapter II

DETERMINATION OF THE ORIGIN OF GOODS

Article 5. Originating goods

Goods are considered originating in a Member country if they:

1. Are wholly obtained or produced entirely in a Member country under Article 6 of this Circular.

2. Are produced in a Member country exclusively from materials originating in Viet Nam or Israel under this Circular.

3. Are not wholly obtained but are produced entirely in a Member country from non-originating materials, provided that those materials have undergone sufficient working or processing under Article 7 of this Circular.

Article 6. Wholly obtained goods

For the purposes of Clause 1, Article 5 of this Circular, goods are considered wholly obtained or produced entirely in Viet Nam or Israel in the following cases:

1. Minerals extracted from the soil or from the subsoil beneath the seabed of a Member country, including its territorial sea, continental shelf or exclusive economic zone.

2. Plants and plant products grown, harvested, picked or gathered in that Member country.

3. Live animals born and raised in that Member country.

4. Goods obtained from aquaculture in that Member country.

5. Goods obtained from live animals referred to in Clause 3 of this Article.

6. Goods obtained from hunting, trapping, collecting, capturing and fishing in that Member country, including fishing in the territorial sea, on the continental shelf or in the exclusive economic zone.

7. Used articles collected in a Member country fit only for the recovery of raw materials, including used tyres fit only for retreading.

8. Waste and scrap resulting from use, consumption or production in that Member country.

9. Marine products and other products taken or obtained from the high seas only by vessels registered or recorded in a Member country and entitled to fly the flag of that Member country under its domestic law.

10. Goods obtained or extracted from the waters, the seabed or the subsoil outside the territorial sea of a Member country, provided that that Member country has the right to exploit those waters, seabed or subsoil.

11. Goods produced on board a vessel registered or recorded in a Member country and entitled to fly the flag of that Member country under its domestic law.

12. Goods produced in any Member country exclusively from the goods referred to in Clauses 1 to 11 of this Article.

Article 7. Not wholly obtained goods

1. For the purposes of Clause 3, Article 5 of this Circular, goods that are not wholly obtained are considered to have undergone sufficient working or processing where they satisfy the Product Specific Rules provided in Appendix I issued together with this Circular.

2. The Product Specific Rules referred to in Clause 1 of this Article apply only to non-originating materials.

3. The installation of significant software developed in Viet Nam or Israel is considered sufficient working or processing.

4. Where goods are originating under Appendix I issued together with this Circular and are subsequently used as materials in the production of other goods, the non-originating materials contained in the initial product need not be taken into account.

Article 8. De Minimis

1. Goods that do not satisfy the change in tariff classification rule under Appendix I issued together with this Circular are considered originating if:

a) The value of all the non-originating materials used in the production of the goods that do not satisfy the change in tariff classification rule does not exceed 10% of the ex-works price of the goods, or 10% of the weight for goods of Chapters 15 to 24 of the Harmonized System.

b) The goods satisfy the other requirements of this Circular in order to qualify as originating goods.

c) Any maximum percentage of the value of non-originating materials provided in Appendix I issued together with this Circular is not exceeded when this Clause is applied.

2. Where non-originating goods of Chapters 50 to 63 of the Harmonized System use certain fibres or yarns in the production of the component that determines the tariff classification of those goods and do not satisfy the change in tariff classification rule under Appendix I issued together with this Circular, they are nevertheless considered originating if the total weight of all those fibres or yarns does not exceed 10% of the total weight of that component.

Article 9. Cumulation

Goods originating in one Member country are considered originating in the other Member country and need not undergo any working or processing.

Article 10. Minimal operations and processes

1. “Minimal” means an operation that requires no special skill, or machines, apparatus or equipment especially produced or installed to carry out that operation.

2. “Simple mixing” does not include a chemical reaction. A chemical reaction is a process (including a biochemical process) which results in a molecule with a new structure by breaking intramolecular bonds and forming new intramolecular bonds, or by altering the spatial arrangement of atoms in a molecule.

3. The following working and processing operations are considered minimal and are not taken into account in determining origin even where the goods satisfy Article 7 of this Circular:

a) Preserving operations to keep the goods in good condition during transport and storage.

b) Simple changes of packaging, and the breaking-up and assembly of packages.

c) Washing, cleaning, removal of dust, oxide, oil, paint or other external coverings.

d) Simple painting and polishing operations.

dd) Husking, partial or total milling, polishing and glazing of cereals and rice.

e) Ironing or pressing of textiles.

g) Operations to colour or mould sugar lumps, or the partial or total grinding of crystal sugar.

h) Peeling, stoning and shelling of fruit, nuts and vegetables.

i) Sharpening, simple grinding or simple cutting.

k) Sifting, screening, sorting, classifying, grading and matching (including the making-up of sets of articles).

l) Affixing or printing marks, labels, logos and other like distinguishing signs on the goods or on their packaging.

m) Dilution with water or another substance, provided that it does not alter the characteristics of the goods.

n) Simple operations consisting of placing in bottles, cans, flasks, bags, cases or boxes, fixing on cards or boards, and all other simple packaging operations.

o) Simple assembly of parts of a product to constitute a complete product, or the disassembly of a product into its parts.

p) Simple mixing of goods, whether or not of different kinds.

q) A combination of two or more of the operations referred to at Points a to p of this Clause.

r) Slaughter of animals.

Article 11. Unit of qualification

1. The unit of qualification is a particular product and is regarded as the basic unit when classifying under the Harmonized System.

2. Where a consignment consists of a number of similar products classified under the same subheading of the Harmonized System, the unit of qualification applies to each separate product.

3. Where packaging is classified with the goods under Rule 5 of the Harmonized System, that packaging is taken into account in determining the origin of the goods.

Article 12. Accessories, spare parts and tools

Accessories, spare parts and tools despatched with a piece of equipment, machine, tool or vehicle which are part of the normal equipment and are included in the selling price of that product, or are not separately invoiced, are regarded as forming an integral part of the equipment, machine, tool or vehicle whose origin is being determined.

Article 13. Sets of goods

Under Rule 3 of the Harmonized System, a set of goods is considered originating where all its component goods are originating. Where a set of goods comprises both originating and non-originating goods, that set is considered originating if the CIF price of the non-originating goods does not exceed 15% of the ex-works price of that set.

Article 14. Neutral elements

A neutral element is an element used in the production of goods that is not taken into account in determining the origin of the goods, including:

1. Energy and fuel.

2. Plant and equipment, including goods used to maintain the plant and equipment.

3. Machines, tools, dies and moulds; spare parts and materials used to maintain equipment and plant; lubricating oils, greases, compounding materials and other materials used in production or used to operate equipment and plant; gloves, glasses, footwear, clothing and safety equipment; catalysts and solvents; equipment, devices and machines used to test or inspect the products.

4. Goods not present in the composition of the final product.

Article 15. Accounting segregation

1. In determining the origin of goods, where identical and interchangeable originating and non-originating materials are commingled or physically combined in the production process, the origin of those materials may be determined by any inventory management method prescribed by the Member country.

2. Where separate storage of identical and interchangeable originating and non-originating materials is difficult or would entail considerable cost, the customs authority may allow the use of the method known as “accounting segregation” to manage those stocks.

3. The “accounting segregation” method referred to in Clause 2 of this Article must be able to ensure that the quantity of goods that may be regarded as “originating” equals the quantity of originating goods that would have resulted from separate storage.

4. The “accounting segregation” method referred to in Clause 2 of this Article must be registered and applied on the basis of the general accounting principles applicable in the Member country where the product is produced.

5. A trader applying for a C/O, or a trader issuing a self-certification of origin document, must provide a statement on the quantity (stock) management method at the request of the competent authority where the “accounting segregation” method referred to in Clause 2 of this Article is used.

Article 16. Principle of territoriality

1. The conditions set out in Chapter II of this Circular must be fulfilled entirely and without interruption in a Member country.

2. Where originating goods exported from Viet Nam or Israel to a non-Member country are subsequently re-imported into the exporting Member country, they are considered non-originating unless it is demonstrated, to the satisfaction of the customs authority, that:

a) The re-imported goods are the same goods as those exported.

b) The re-imported goods have not undergone any operation beyond that necessary to preserve them in good condition while in the non-Member country or while being exported.

Article 17. Direct consignment

1. Tariff preferences under the VIFTA Agreement apply only to goods that satisfy this Circular and are consigned directly between Viet Nam and Israel.

2. In the case of transhipment or temporary storage in the territory of other countries, goods of a consignment may be transported through the territory of those countries under the supervision of their customs authorities, provided that:

a) The goods are not intended for trade, consumption, use or employment in the non-Member country through which they transit.

b) The goods do not undergo any operation other than unloading, reloading, splitting of the consignment or any operation to preserve them in good condition.

3. The documents evidencing compliance with Clause 2 of this Article to be provided to the customs authority of the importing Member country comprise one of the following:

a) Any through transport document meeting international standards and evidencing that the goods were transported directly from the exporting Member country through the non-Member country of transit to the importing Member country.

b) A certificate issued by the customs authority of the non-Member country of transit, describing the goods precisely, the date and place of loading and reloading of the goods in the non-Member country, and the condition of the goods.

c) Other documents evidencing that the consignment was transported directly, where the documents referred to at Points a and b of this Clause are not available.

4. Goods exported from a Member country retain their origin when re-imported into that Member country.

Article 18. Exhibition and fair goods

1. Originating goods sent for exhibition in a country other than Viet Nam or Israel and sold after the exhibition for importation into Israel or Viet Nam enjoy preferences on importation under the VIFTA Agreement, provided that it is demonstrated to the satisfaction of the customs authority that:

a) The exporter consigned those goods from Viet Nam or Israel to the non-Member country where the exhibition was held and they were exhibited there.

b) The exporter sold or otherwise disposed of those goods to a consignee in Israel or Viet Nam.

c) The goods were consigned from the non-Member country during the exhibition or immediately after it and remain in the same state as when they were sent for exhibition.

d) The goods have not, since they were consigned for exhibition, been used for any purpose other than display at the exhibition.

2. The proof of origin must be issued in accordance with this Circular and submitted to the customs authority of the importing Member country in the usual manner. The name and address of the exhibition must be stated on that proof of origin.

3. Clause 1 of this Article applies to any trade, industrial, agricultural or craft exhibition, fair, public display or similar show, not organised in shops or business premises for the sale of foreign goods for private purposes, provided that the goods remain under customs control throughout the exhibition.

Chapter III

CERTIFICATION AND VERIFICATION OF ORIGIN OF GOODS

Article 19. Proof of origin

1. Goods originating in one Member country and imported into the other Member country enjoy tariff preferences under the VIFTA Agreement upon submission of a proof of origin completed in English, in accordance with the law of the importing Member country.

2. The proof of origin comprises one of the following documents:

a) A paper C/O issued by the C/O issuing authority or organization of Viet Nam or Israel using the form provided in Appendix II issued together with this Circular.

b) A self-certification of origin document under Article 24 of this Circular, containing sufficient information to identify the goods concerned.

3. “Paper” means a C/O signed, sealed and issued directly, or signed, sealed and issued electronically from the system of the competent authority of the exporting Member country and printed by the C/O issuing authority or organization, the producer or the exporter, or an authorised representative of the producer or exporter.

Article 20. Issuance of the VIFTA C/O

1. The C/O is issued by the C/O issuing authority or organization of the exporting Member country; the C/O is completed by the exporter or an authorised representative of the exporter, under the responsibility of the exporter, in accordance with the domestic regulations of the exporting Member country.

2. The exporter applying for a C/O shall, at any time, be prepared to submit all the documents necessary to prove the origin of the goods and compliance with the other requirements of this Circular, at the request of the C/O issuing authority or organization of the exporting Member country.

3. The C/O is issued for exported goods originating in the exporting Member country under Article 5 of this Circular.

4. The C/O issuing authority or organization shall take any measures necessary to verify the origin of the goods and compliance with the other requirements of this Circular. For that purpose, the C/O issuing authority or organization has the right to require the exporter to provide any supporting documents and evidence, to inspect any of the exporter's records, or to carry out any other necessary check.

5. Each C/O bears a specific reference number, issued by the C/O issuing authority or organization.

6. The C/O is issued by the C/O issuing authority or organization to the exporter as soon as the goods have actually been exported or their export is assured, or within 03 working days after the date of exportation, in accordance with the law of each Member country.

Article 21. C/O issued retrospectively

1. A C/O may be issued after the date of exportation of the goods in exceptional cases where it was not issued at the time of exportation or within the 03 working days provided in Clause 6, Article 20 of this Circular, because of involuntary errors or omissions or special circumstances, or where it is demonstrated to the C/O issuing authority or organization that a C/O was issued but was not accepted on importation of the goods for technical reasons.

2. Where a C/O is issued retrospectively under Clause 1 of this Article, the exporter shall state the place and date of exportation and the reason for the retrospective issuance in the C/O application.

3. The C/O issuing authority or organization shall consider issuing a retrospective C/O only after verifying that the information in the exporter's C/O application corresponds to the relevant documents.

4. A C/O issued retrospectively under this Article must bear the words in English: “ISSUED RETROSPECTIVELY” as provided in Appendix IV issued together with this Circular. A retrospective C/O bears the later date of issuance and takes effect from that date.

5. The C/O issuing authority or organization of the exporting Member country shall consider issuing a retrospective C/O for exported goods satisfying this Circular that are in transit or in temporary storage under customs control in Viet Nam or Israel within 06 months from the date of entry into force of the VIFTA Agreement. The retrospective C/O shall be submitted to the customs authority of the importing Member country together with the documents evidencing that the goods were consigned directly under Article 17 of this Circular.

Article 22. Duplicate C/O

1. Where a paper C/O is stolen, lost or damaged, the exporter shall apply for a duplicate C/O on the basis of the records retained by the C/O issuing authority or organization.

2. The duplicate C/O must bear the word in English “DUPLICATE” as guided in Appendix IV issued together with this Circular.

3. The duplicate C/O bears the date of issuance of the original C/O and takes effect from the date of issuance of the original C/O.

Article 23. Approved exporter

1. The competent authority of the exporting Member country shall consider approving any exporter that meets the specific conditions under the law of the exporting Member country (hereinafter referred to as an “approved exporter”) to issue self-certification of origin documents in the terms provided in Appendix V issued together with this Circular, irrespective of the value of the consignment. The approved exporter must provide all the documents necessary for the competent authority to verify the origin of the goods and compliance with the other requirements of this Circular.

2. The competent authority shall approve the exporter to issue self-certification of origin documents in accordance with the law of each Member country.

3. The competent authority shall issue the approved exporter an authorisation number to be indicated on the self-certification of origin document. The text of the self-certification of origin is provided in Appendix V issued together with this Circular.

4. The competent authority shall administer the self-certification of origin by approved exporters.

5. The competent authority shall consider withdrawing the authorisation number issued to an approved exporter at any time where the approved exporter no longer meets the conditions in Clause 1 of this Article, fails to comply with Clause 2 of this Article, or misuses the authorisation number.

6. This Article applies to approved exporters self-certifying the origin of goods imported into Viet Nam from Israel.

Article 24. Issuance of a self-certification of origin document

1. The self-certification of origin document referred to at Point b, Clause 2, Article 19 of this Circular is issued by an approved exporter under Article 23 of this Circular, or by any exporter for a consignment of originating goods whose value does not exceed 1,000 (one thousand) US dollars.

2. The exporter issuing the self-certification of origin document shall, at any time and at the request of the competent authority of the exporting Member country, be prepared with all the documents necessary to prove the origin of the goods concerned and compliance with the other requirements of this Circular.

3. The text of the exporter's self-certification of origin is typed, stamped or printed on the invoice, delivery note or other commercial document of the approved exporter in the terms provided in Appendix V issued together with this Circular, or of any exporter in the terms provided in Appendix VI issued together with this Circular. Where handwritten, the text of the self-certification of origin must be in ink and in capital letters.

4. Within 03 working days from the date of issuance of the self-certification of origin document, the exporter shall declare and upload the self-certification of origin document and the documents relating to the export consignment under Points c to h, Clause 1, Article 15 of Decree No. 31/2018/ND-CP on the electronic origin certification and management system of the Ministry of Industry and Trade at www.ecosys.gov.vn.

Article 25. Validity of the proof of origin

1. The proof of origin is valid for 12 months from the date of its issuance in the exporting Member country and must be submitted to the customs authority of the importing Member country within that period.

2. A proof of origin submitted to the customs authority of the importing Member country after the period of validity referred to in Clause 1 of this Article may be considered for acceptance for tariff preferences where the importer was unable to submit it within the period of validity for other valid reasons beyond the importer's control.

3. In other cases of late presentation, the customs authority of the importing Member country shall consider accepting the proof of origin, provided that the goods were imported before the final date referred to in Clause 1 of this Article.

Article 26. Submission of the proof of origin

The proof of origin is submitted to the customs authority of the importing Member country in accordance with the law of that Member country, including the procedures applicable in that Member country.

Article 27. Importation by instalments

Where the importer so requests and subject to the rules of the customs authority of the importing Member country, goods that are disassembled or not assembled within the meaning of General Rule 2(a) of the Harmonized System may be imported by instalments, and a single proof of origin need only be submitted to the customs authority on the first importation.

Article 28. Waiver of the proof of origin

1. Goods sent as small packages from private persons to private persons, or forming part of a traveller's personal luggage, are considered originating goods without a proof of origin being required, provided that they are not imported by way of trade, that they have been declared as satisfying this Circular and that there is no doubt as to the veracity of that declaration. Where the goods are sent by post, the declaration may be made on the import customs declaration or on a document attached to it.

2. Importations that are occasional and consist solely of goods for the personal use of the consignee or the traveller or their family are not considered importations by way of trade if the nature and quantity of the goods are evidence that they are not intended for commercial purposes.

3. The total value of the goods referred to in Clauses 1 and 2 of this Article must not exceed 300 (three hundred) US dollars for small packages or 1,000 (one thousand) US dollars for goods forming part of a traveller's personal luggage.

Article 29. Documents proving the origin of goods

The documents used to prove the origin of goods and compliance with the other requirements of this Circular for the issuance of a C/O or for self-certification of origin comprise the following:

1. Documents evidencing the production process carried out by the exporter or the supplier to obtain the originating goods, for example internal reports or accounting records.

2. Documents proving the origin of the materials, issued in Viet Nam or Israel where those documents are used in accordance with the law of each Member country.

3. Documents evidencing the working or processing of the materials in Viet Nam or Israel, issued in accordance with the law of each Member country.

4. A C/O or a self-certification of origin document for the materials, issued in Viet Nam or Israel under this Circular.

5. Appropriate documents relating to working or processing carried out outside Viet Nam or Israel, evidencing the application of Article 16 of this Circular.

Article 30. Record keeping

1. The exporter applying for a C/O shall retain the documents referred to in Article 20 of this Circular for at least 05 years.

2. The exporter issuing a self-certification of origin invoice shall retain a copy of that invoice as well as the documents referred to in Article 24 of this Circular for at least 05 years.

3. The competent authority of the exporting Member country that issues the C/O shall retain the C/O application dossier referred to in Article 20 of this Circular for at least 05 years.

4. The customs authority of the importing Member country shall retain the C/O and the self-certification of origin invoice for at least 05 years.

Article 31. Minor discrepancies and formal errors

1. Minor discrepancies between the information declared on the proof of origin and the information on the documents submitted to the customs authority for the import procedures do not invalidate the proof of origin, provided that those documents are shown to correspond to the goods actually imported.

2. Obvious formal errors are not a ground for rejecting the proof of origin if those errors do not create doubt as to the veracity of the declaration on the proof of origin.

Article 32. Verification of the proof of origin

1. The verification of the proof of origin is carried out at random or where the customs authority of the importing Member country has reasonable doubt as to the authenticity of that document, as to the origin of the goods, or as to compliance with the other requirements of this Circular.

2. For the purposes of Clause 1 of this Article, the customs authority of the importing Member country shall send the origin verification request electronically to the competent authority of the exporting Member country. The origin verification request sent by post or by email includes the reference number of the proof of origin or a copy of the self-certification of origin document. The customs authority of the importing Member country shall attach the reason for the origin verification request and the documents and information suggesting that the proof of origin is inaccurate.

3. The competent authority of the exporting Member country shall carry out the origin verification. That authority has the right to require evidence and to inspect and report on the exporter's accounting records, or to carry out any other appropriate check.

4. Where the customs authority of the importing Member country decides to suspend tariff preferences for the goods pending the verification result, the goods shall be released to the importer, with precautionary measures taken into account where necessary.

5. The customs authority requesting the verification must be notified of the verification by post or email as soon as possible. The verification result must state clearly the authenticity of the declaration on the proof of origin and of the documents proving origin, and determine whether the goods are originating in Viet Nam or Israel and satisfy the other requirements of this Circular.

6. Where no reply to the verification request is received from the competent authority of the exporting Member country within 10 months from the date of the origin verification request, or where the reply does not contain sufficient information to determine the authenticity of the proof of origin or the origin of the goods, the customs authority of the importing Member country may deny tariff preferences, except in exceptional cases.

Article 33. Denial of tariff preferences

1. The customs authority of the importing Member country shall deny tariff preferences without verifying the proof of origin in the following cases:

a) The goods do not satisfy the direct consignment requirements in Article 17 of this Circular.

b) The importer does not present the proof of origin to the customs authority of the importing Member country within the time limit prescribed by the law of the importing Member country.

c) The C/O issuing authority or organization of the exporting Member country or the exporter has not signed the C/O electronically or manually.

2. Where tariff preferences are denied, the customs authority of the importing Member country shall notify that decision in writing to the importer, including the reason for the denial.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 34. Organization of implementation

1. Guidance and common understandings relating to the rules of origin agreed by the Joint Committee implementing the Agreement, or by the Sub-Committee on Customs and Rules of Origin, in the reports under the VIFTA Agreement, constitute the basis for implementation by C/O issuing authorities and organizations and by customs authorities.

2. The matters referred to in Clause 1 of this Article shall be notified to C/O issuing authorities and organizations and to customs authorities through the Ministry of Industry and Trade and the Ministry of Finance (General Department of Customs).

Article 35. Effect

This Circular takes effect from November 17, 2024./.

APPENDIX I

PRODUCT SPECIFIC RULES (issued together with Circular No. 11/2024/TT-BCT dated August 1, 2024 of the Minister of Industry and Trade providing rules of origin under the Free Trade Agreement between the Government of the Socialist Republic of Viet Nam and the Government of the State of Israel)

1. In this Appendix, the following terms are construed as follows:

a) The product specific rule, or the set of product specific rules, applicable to a particular heading or subheading is set out in the column next to that heading or subheading.

b) The change in tariff classification criterion applies only to non-originating materials.

c) Goods are considered to satisfy the change in tariff classification rule only where each non-originating material used in the production of the goods undergoes a change in HS code.

d) Where a product specific rule applying the change in tariff classification criterion excludes certain materials with specific HS codes, the excluded materials must be originating for the goods to be considered originating.

dd) Where a product specific rule offers a choice of several rules of origin, the goods are originating where they satisfy one of the alternative rules of origin.

2. Where column (1) of this Appendix contains the prefix “ex” before an HS code, the origin criterion in column (3) or column (4) applies only to the goods described in column (2) and not to all the goods of that Chapter.

3. For the interpretation of the Product Specific Rules in this Appendix:

“Chapter” is the first two digits of the tariff classification number in the HS.

“Heading” is the first four digits of the tariff classification number in the HS.

“Subheading” is the first six digits of the tariff classification number in the HS.

4. For the purposes of column (3) of this Appendix, the following terms are construed as follows:

a) “WO” means materials of the same Chapter that are wholly obtained or produced entirely under Article 6 of this Circular.

b) “CC” means that all the non-originating materials used in the production of the goods undergo a change in HS code at the two-digit level (change of Chapter).

c) “CTH” means that all the non-originating materials used in the production of the goods undergo a change in HS code at the four-digit level (change of Heading).

d) “CTSH” means that all the non-originating materials used in the production of the goods undergo a change in HS code at the six-digit level (change of Subheading).

dd) “N/A” means that there is no rule of origin to apply.

5. The use of the CC, CTH and CTSH rules must follow the production process.

APPENDIX II

FORM OF VIET NAM'S VIFTA C/O (issued together with Circular No. 11/2024/TT-BCT dated August 1, 2024 of the Minister of Industry and Trade providing rules of origin under the Free Trade Agreement between the Government of the Socialist Republic of Viet Nam and the Government of the State of Israel)

APPENDIX III

FORM OF THE SUPPLEMENTARY DECLARATION SHEET TO VIET NAM'S VIFTA C/O (issued together with Circular No. 11/2024/TT-BCT dated August 1, 2024 of the Minister of Industry and Trade providing rules of origin under the Free Trade Agreement between the Government of the Socialist Republic of Viet Nam and the Government of the State of Israel)

APPENDIX IV

INSTRUCTIONS FOR COMPLETING VIET NAM'S VIFTA C/O AND THE SUPPLEMENTARY DECLARATION SHEET TO VIET NAM'S VIFTA C/O (issued together with Circular No. 11/2024/TT-BCT dated August 1, 2024 of the Minister of Industry and Trade providing rules of origin under the Free Trade Agreement between the Government of the Socialist Republic of Viet Nam and the Government of the State of Israel)

The VIFTA C/O is completed in English and typed. The VIFTA C/O is completed as follows:

1. Box 1: State the name of the exporter, the address and the name of the exporting Member country (Viet Nam).

2. Box 2: State the reference number (entered by the C/O issuing authority or organization). The reference number consists of 14 characters in 5 groups, as follows:

a) Group 1: the abbreviation of the exporting Member country, Viet Nam, consisting of 02 characters “VN”.

b) Group 2: the abbreviation of the importing Member country, Israel, consisting of 02 characters “IL”.

c) Group 3: the year of issuance of the C/O, consisting of 02 characters. For example, issuance in 2024 is written as “24”

d) Group 4: the code of the C/O issuing authority or organization, consisting of 02 characters.

dd) Group 5: the serial number of the C/O, consisting of 06 characters.

e) Groups 1 and 2 are separated by a hyphen “-”; groups 3, 4 and 5 are separated by an oblique stroke “/”.

Example: where the Import-Export Management Office of the Ho Chi Minh City region issues the 6th VIFTA C/O for a consignment exported from Viet Nam to Israel in 2024, the reference number of that C/O is written as: “VN-IL 24/02/000006”.

3. Box 3: state the name of the importer, the address and the name of the final importing country.

4. Box 4: state the country of origin of the goods.

5. Box 5: state the details of the port of loading and discharge and the means of transport.

6. Box 6: state the name of the final importing country.

7. Box 7: the C/O issuing authority or organization states DUPLICATE, ISSUED RETROSPECTIVELY or other remarks (if any).

8. Box 8: state the number of the commercial invoice.

9. Box 9: description of the goods:

- Column “No.”: state the serial number of each item (where several items are stated on one C/O, each item has its own serial number).

- Column “Description of the goods”: state the detailed description of the goods.

- Column “Origin Criteria”: state the origin criterion of the goods:

- Column “Gross, weight or other measure”: state the gross weight of the goods (or another unit of measurement).

10. Box 10: state the date of the application for the C/O and the full name and signature of the exporter.

- Where the exporter is at the same time the producer of the exported goods, tick (√) the “Producer” box by hand or by computer.

- Where the exporter is not the producer of the exported goods, tick (√) the “Exporter” box by hand or by computer.

11. Box 11: for the C/O issuing authority or organization to state: the date of issuance of the C/O, the signature and full name of the person competent to sign and issue the C/O, and the seal of the C/O issuing authority or organization.

12. For the items marked “Optional” (in Box 3, Box 5 and Box 8): the trader may choose whether or not to state the information on the VIFTA C/O. However, that information shall be stated in the C/O application so that the origin of the goods can be verified.

13. Supplementary declaration sheet to Viet Nam's VIFTA C/O:

Where the trader uses the supplementary declaration sheet in the form provided in Appendix III issued together with this Circular to declare items in excess of those that fit on one C/O, the following information shall be declared:

- State on the supplementary declaration sheet the same reference number as that of the C/O.

- State the page number where two (2) or more supplementary declaration sheets are used.

Example: page 1/3, page 2/3, page 3/3.

Complete Boxes 9 to 11 following the guidance in Clauses 9 to 11 of this Appendix. The information in Boxes 10 and 11 must be stated in the same way as on the C/O.

APPENDIX V

FORM OF DECLARATION BY AN APPROVED EXPORTER (issued together with Circular No. 11/2024/TT-BCT dated August 1, 2024 of the Minister of Industry and Trade providing rules of origin under the Free Trade Agreement between the Government of the Socialist Republic of Viet Nam and the Government of the State of Israel)

The exporter of the goods covered by this document, (authorization No ... 1) declares that, except where otherwise clearly indicated, these goods are of (... 2) preferential origin.

Where:

(1) is the authorisation number of the approved exporter issued by the competent authority of the exporting Member country.

(2) is the country of origin of the goods, stated as “Israel” or as “Viet Nam”.

APPENDIX VI

FORM OF DECLARATION BY ANY EXPORTER (issued together with Circular No. 11/2024/TT-BCT dated August 1, 2024 of the Minister of Industry and Trade providing rules of origin under the Free Trade Agreement between the Government of the Socialist Republic of Viet Nam and the Government of the State of Israel)

The exporter of the goods covered by this document declares that these goods, unless otherwise clearly specified, comply with the provisions of the Free Trade Agreement between Viet Nam and Israel.