Circular No. 31/2013/TT-BCT

CIRCULAR

PROVIDING FOR THE IMPLEMENTATION OF RULES OF ORIGIN UNDER THE VIET NAM - CHILE FREE TRADE AREA AGREEMENT

Pursuant to the Government's Decree No. 95/2012/ND-CP dated November 12, 2012, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Viet Nam - Chile Free Trade Area Agreement signed by the Ministers of the two countries on November 11, 2011 in Honolulu, Hawaii, the United States of America;

Pursuant to the Viet Nam - Chile Free Trade Area Agreement of November 11, 2011 in Honolulu, Hawaii, the United States of America, as amended by the two countries on May 20, 2013;

Pursuant to the Government's Decree No. 19/2006/ND-CP dated February 20, 2006, detailing the Commercial Law regarding origin of goods.

The Minister of Industry and Trade promulgates the Circular providing for the implementation of rules of origin under the Viet Nam - Chile Free Trade Area Agreement as follows:

Article 1. Issued together with this Circular are:

1. Rules of origin (Appendix I);

2. Product Specific Rules (Appendix II);

3. Procedures for the issuance and verification of the Certificate of Origin (Appendix III);

4. Form of Viet Nam's Certificate of Origin form VC (referred to in this Circular as the C/O form VC) (Appendix IV-A);

5. Form of Chile's C/O form VC (Appendix IV-B);

6. Instructions for completing the C/O (Appendix V); and

7. List of C/O issuing bodies (Appendix VI).

Article 2. In addition to the procedures for the issuance and verification of the C/O provided in Appendix III issued together with this Circular, the procedures for issuing Viet Nam's C/O form VC shall comply with Circular No. 06/2011/TT-BCT dated March 21, 2011 of the Ministry of Industry and Trade providing the procedures for issuing preferential Certificates of Origin and Circular No. 01/2013/TT-BCT dated January 3, 2013 of the Ministry of Industry and Trade amending and supplementing the aforesaid Circular No. 06/2011/TT-BCT dated March 21, 2011.

Article 3. This Circular takes effect from January 1, 2014.

APPENDIX I

RULES OF ORIGIN (issued together with Circular No. 31/2013/TT-BCT dated November 15, 2013 of the Ministry of Industry and Trade providing for the implementation of rules of origin under the Viet Nam - Chile Free Trade Area Agreement)

Article 1. Interpretation of terms

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

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

2. CIF means the value of the imported goods inclusive of the cost of freight and insurance up to the port or place of entry into the country of importation;

3. FOB means the value of the goods free on board, inclusive of the cost of transport to the port or final place of shipment before the carrying vessel leaves;

4. Generally accepted accounting principles means the principles recognised by consensus or applied in a Member State with respect to the recording of revenues, expenses, costs, assets and liabilities; the disclosure of information; and the preparation of financial statements. These principles may encompass broad guidelines as well as specific standards, practices and procedures;

5. Goods includes materials or products wholly obtained or produced entirely in a Member State, including products that may later be used as materials in another production process;

6. Identical and interchangeable materials means materials of the same kind and of the same quality, having the same physical and technical characteristics, which, once combined to form the finished product, cannot be distinguished as to origin by markings or by observation;

7. C/O issuing body means the government authority responsible for issuing the C/O:

a) For Chile: the General Directorate of International Economic Relations. That authority may authorise other bodies to issue the C/O (form VC); and

b) For Viet Nam: the Ministry of Industry and Trade.

8. Materials includes goods or substances used or consumed in the production of goods, combined to form other goods, or employed in a stage of the production of other goods;

9. Originating goods means goods that satisfy the origin requirements of this Appendix;

10. Packing materials and containers for transportation means goods used to protect other goods during their transportation, other than the packaging materials and containers holding goods for retail sale;

11. Production means the methods of obtaining goods, including growing, mining, harvesting, raising, breeding, extracting, gathering, collecting, capturing, fishing, trapping, hunting, manufacturing, producing, processing or assembling; and

12. Product specific rules means the rules requiring materials to undergo a change in tariff classification, or to satisfy a regional value content criterion, or a combination of those criteria.

Article 2. Origin criteria

For the purposes of this Appendix, goods are considered originating in a Member State where they:

1. Are wholly obtained or produced entirely in that Member State as defined in Article 3; or

2. Are not wholly obtained or produced entirely in that Member State but satisfy Article 4 or Article 6; or

3. Are produced entirely in that Member State from materials originating in the Member States.

and those goods satisfy all the other requirements of this Appendix.

Article 3. Wholly obtained goods

The goods referred to in Clause 1, Article 2 are considered wholly obtained or produced entirely in a Member State in the following cases:

1. Plants and plant products, including fruit, flowers, vegetables, trees, seaweed, fungi and other plants, grown and harvested, picked or gathered in that Member State;

2. Live animals, including mammals, birds, fish, crustaceans, molluscs, reptiles, bacteria and viruses, born and raised in that Member State;

3. Goods obtained from the live animals referred to in Clause 2 of this Article in that Member State;

4. Goods obtained from hunting, trapping, fishing, aquaculture, gathering or capturing in that Member State;

5. Minerals and other naturally occurring substances not listed in Clauses 1 to 4 of this Article, extracted or taken from the soil, the territorial sea, the seabed or beneath the seabed of that Member State;

6. Products taken from the territorial sea, the seabed or beneath the seabed outside the territorial sea of that Member State, provided that that Member State has the right to exploit that territorial sea, seabed and subsoil under international law;

7. Products of sea-fishing and other marine products taken from the high seas by vessels registered in a Member State and flying the flag of that Member State;

8. Products processed and/or produced on board a factory ship registered in a Member State and flying the flag of that Member State, other than the products provided in Clauses 6 and 7 of this Article;

9. Articles collected in that Member State which can no longer perform their original function and cannot be repaired or restored, and which are fit only for disposal or for the recovery of parts for use as materials, or for recycling purposes;

10. Waste and scrap derived from:

a) Production in that Member State; or

b) Used goods collected in that exporting Member State, provided that those goods are fit only for use as raw materials; and

11. Goods obtained or produced in that exporting Member State from the products provided in Clauses 1 to 10 of this Article.

Article 4. Not wholly obtained goods

1. For the purposes of Clause 2, Article 2, goods are considered originating in the Member State where the production or processing took place if:

a) The goods have a regional value content (RVC) of not less than forty per cent (40%), calculated in accordance with Article 5; or

b) All the non-originating materials used in the production of those goods undergo a change in tariff classification (hereinafter referred to as “CTC”) at the four (4)-digit level (that is, a change of heading) of the Harmonized System.

2. Each Member State shall allow the exporter to use either of the criteria provided at Point a, Clause 1 or Point b, Clause 1 of this Article to determine the origin of the goods.

3. Notwithstanding Clause 1 of this Article, goods are considered originating goods if they satisfy the corresponding product specific rule for those goods provided in Appendix II.

4. Where a product specific rule offers a choice between the RVC and CTC criteria, or a combination of those criteria, each Member State shall allow the exporter to choose the appropriate criterion.

5. Where a product specific rule provides for the CTC criterion, that criterion applies only to non-originating materials.

Article 5. RVC formula

1. The RVC referred to in Article 4 is calculated using the following formula:

2. For the purposes of calculating the RVC under Clause 1 of this Article:

a) The value of the non-originating materials or goods is:

- The CIF price at the time of importation or where the importation can be proven; or

- The earliest ascertainable price paid for the goods of undetermined origin in the territory of the Member State where the production or processing took place.

b) The FOB price is the FOB value of the goods. That FOB price is determined by adding the value of the materials, the production costs, the profit and the other costs.

Article 6. Cumulation

Unless otherwise provided in this Appendix, goods originating in a Member State that are used in another Member State as materials to produce goods eligible for tariff preferences shall be considered to originate in the Member State where the production or processing of those goods took place.

Article 7. Minimal operations and processes

The following working and processing operations, whether carried out singly or in combination, do not confer origin on the goods:

1. Preserving operations to ensure that the goods remain in good condition during transport and storage, such as drying, chilling, ventilating, freezing and similar operations;

2. Sifting or filtering, sorting, washing, cutting, slitting, bending, coiling, straightening, sharpening, simple grinding, slicing;

3. Cleaning, including the removal of oxide, oil, paint or other surface coatings;

4. Painting and polishing operations;

5. Testing or calibration;

6. Placing in bottles, cans, moulds, bags, cases, or fixing on cards or boards, and other simple packaging operations;

7. Simple mixing 1 of products, whether or not of different kinds;

8. Simple assembly 2 of parts of a product to constitute a complete product;

9. Changes of packaging, the breaking-up or repacking, splitting and assembly of packages;

10. Affixing marks, labels or other like distinguishing signs on the products or on their packaging;

11. Dissolving in water or another substance that does not alter the characteristics of the product; and

12. Husking, total or partial bleaching, polishing and glazing of cereals and rice.

Article 8. Direct consignment

1. Originating goods are considered to be consigned directly from the exporting Member State to the importing Member State if:

a) The goods are transported without passing through the territory of any other Member State; or

b) The goods are transported through a non-Member State, with or without transhipment or temporary storage in that non-Member State, provided that:

b1) The transit is justified for geographical reasons or by requirements directly related to transport;

b2) The goods do not enter into trade or consumption in that country of transit; and

b3) The goods do not undergo any operation in that non-Member State other than unloading, reloading and splitting of the consignment, or operations required to keep the goods in good condition.

2. Where originating goods of the exporting Member State are imported through one or more non-Member States, or after being exhibited in a non-Member State, the customs authority of the importing Member State may require the importer claiming special preferences for those goods to submit other supporting documents such as transport documents, customs documents or other documents.

Article 9. Insignificant proportion of materials not satisfying the CTC criterion (De Minimis)

Goods that do not satisfy the CTC criterion are nevertheless considered originating goods if the value of the non-originating materials used in the production of the goods that do not satisfy the CTC criterion is less than or equal to ten per cent (10%) of the FOB value of the goods, and the goods also satisfy the other requirements of this Appendix.

Article 10. Packaging and packing materials

1. Where the RVC criterion under Article 4 applies, the value of the packing materials and containers for retail sale is taken into account in determining the origin of the goods, as the case may be, provided that those packing materials and containers for retail sale form a constituent part of the goods.

2. Where the CTC criterion under Article 4 applies, packing materials and containers for retail sale, when classified together with the packaged goods, are excluded from the determination of the origin of the goods.

3. Packaging and packing materials used for the transport of the goods are not taken into account in determining the origin of those goods.

Article 11. Accessories, spare parts and tools

1. Where the origin of the goods is determined under the CTC criterion, the origin of the accessories, spare parts, tools and instructional or other informational materials presented with those goods is not taken into account in determining the origin of the goods, provided that:

a) Those accessories, spare parts, tools and instructional or other informational materials are not invoiced separately from those goods; and

b) The quantity and value of those accessories, spare parts, tools and instructional or other informational materials are appropriate to those goods.

2. Where the origin of the goods is determined under the RVC criterion, the value of the accessories, spare parts, tools and instructional or other informational materials presented with those goods is counted as the value of originating or non-originating materials, as the case may be.

Article 12. Indirect materials

1. Indirect materials are treated as originating materials regardless of where they are produced.

2. Indirect materials means goods used in the production, testing or inspection of other goods but not remaining in those goods, or goods used in the maintenance of buildings or in the operation of equipment used in the production of goods, including:

a) Fuel and energy;

b) Tools, dies and moulds;

c) Spare parts and materials used to maintain equipment and buildings;

d) Lubricating oils, greases, compounding materials and other materials used in production or used to operate equipment and buildings;

dd) Gloves, glasses, footwear, clothing, safety equipment;

e) Equipment, devices and machines used to test or inspect the goods;

g) Catalysts and solvents; and

h) Any other materials that do not remain in the goods but whose use must be demonstrated to be necessary in the production of those goods.

Article 13. Identical and interchangeable materials

1. The determination of whether identical and interchangeable materials are originating materials is made by physically segregating each of those materials or by applying generally accepted accounting principles on stock control, or the inventory management practices of the exporting Member State.

2. Once a stock-control accounting method has been chosen, that method must be used throughout that financial year.

Article 14. C/O

To enjoy tariff preferences, the goods must be covered by a C/O (form VC) in the form provided in Appendix IV-A (for goods exported from Viet Nam) and Appendix IV-B (for goods exported from Chile), issued by the competent government body designated by the exporting Member State and notified to the other Member State in accordance with Appendix III./.

APPENDIX II

PRODUCT SPECIFIC RULES 1 (issued together with Circular No. 31/2013/TT-BCT dated November 15, 2013 of the Ministry of Industry and Trade providing for the implementation of rules of origin under the Viet Nam - Chile Free Trade Area Agreement)

1. For the purposes of implementing the product specific rules provided in this Appendix:

a) The rule, or the set of rules, applicable to a particular chapter, heading or subheading is set out in the column on the same row as that chapter, heading or subheading;

b) A rule applicable to a heading prevails over a rule applicable to the chapter containing that heading;

c) A rule applicable to a subheading prevails over a rule applicable to the heading or chapter containing that subheading;

d) The “change in tariff classification” criterion applies only to non-originating materials;

dd) The following definitions apply:

- Chapter is the first two digits of the tariff classification number under the Harmonized System (HS);

- Heading is the first four digits of the tariff classification number under the Harmonized System (HS); and

- Subheading is the first six digits of the tariff classification number under the Harmonized System (HS).

2. For the purposes of applying the origin criteria provided in column 3 of this Appendix:

a) RVC 40% means that the goods must attain a regional value content of not less than 40% calculated in accordance with Article 5 of Appendix I;

b) RVC 50% means that the goods must attain a regional value content of not less than 50% calculated in accordance with Article 5 of Appendix I;

c) CC means that all the non-originating materials used in the production of the goods must undergo a change in HS code at the 2-digit level;

d) CTH means that all the materials used in the production of the goods must undergo a change in HS code at the 4-digit level; and

dd) CTSH means that all the materials used in the production of the goods must undergo a change in HS code at the 6-digit level.

APPENDIX III

PROCEDURES FOR THE ISSUANCE AND VERIFICATION OF THE C/O (issued together with Circular No. 31/2013/TT-BCT dated November 15, 2013 of the Ministry of Industry and Trade providing for the implementation of rules of origin under the Viet Nam - Chile Free Trade Area Agreement)

Article 1. Definitions

Exporter means a natural or legal person resident or located in the territory of a Member State from which the goods are exported by that person;

Importer means a natural or legal person resident or located in the territory of a Member State into which the goods are imported by that person;

Tariff preference means the import duty rate of the importing Member State granted to originating goods of the exporting Member State;

Producer means a natural or legal person carrying out production in the territory of a Member State.

Article 2. Competent authorities

Each Member State shall send to the other Member State, in paper and electronic form, the list of names, addresses and specimen seals of its C/O issuing bodies. Any change to that list must be notified promptly following the same procedure.

Article 3. Supporting documents

In order to determine origin, the C/O issuing body has the right to require the submission of documents and supporting evidence, or to carry out a check where it deems necessary, in accordance with the regulations of the Member State.

Article 4. C/O (form VC)

1. To enjoy tariff preferences, the goods must be accompanied by the Certificate of Origin provided in Appendix IV (Appendix IV-A for goods of Viet Nam and Appendix IV-B for goods of Chile).

2. The C/O (form VC) is issued by the C/O issuing body of the exporting Member State.

3. The C/O (form VC) must be made on white paper, in conformity with the forms provided in Appendix IV-A1 and Appendix IV-B2. The C/O must be completed in English.

4. For Chile, a set of C/O (form VC) comprises one original. For Viet Nam, it comprises one original and two carbon copies.

5. Each C/O (form VC) bears a reference number specific to the C/O issuing body.

6. The signature of the authorised person on the C/O (form VC) must be made by hand.

7. The seal of the C/O issuing body on the C/O (form VC) may be affixed by hand or printed electronically.

8. For the purpose of verifying the C/O (form VC), the Member States shall publish on the Internet certain basic information on the C/O issued by the exporting Member State, such as the reference number, the HS code, the description of the goods, the date of issuance, the quantity and the name of the exporter.

9. The original C/O (form VC) is sent by the exporter to the importer for submission to the customs authority of the importing Member State. In the case of Viet Nam, the exporter and the C/O issuing body must retain the copies of the C/O (form VC).

Article 5. Treatment of minor discrepancies on the C/O

1. The customs authority of the importing Member State shall disregard minor errors, such as slight discrepancies or omissions, typing errors and information overflowing outside the box provided for it, provided that those minor errors do not affect the authenticity of the C/O (form VC) or the accuracy of the information on the C/O (form VC).

2. Erasures and superimpositions on the C/O (form VC) are not permitted. Any alteration must be made by striking out the error and adding the necessary information. All such alterations must be approved by the person authorised to sign the C/O (form VC) and certified by the C/O issuing body of the exporting Member State. Unused spaces must be crossed out to prevent any subsequent addition.

Article 6. Issuance of the C/O

1. The C/O is issued before or at the time of exportation.

2. In exceptional cases, the C/O may be issued retroactively, but no later than one (01) year from the date of loading on board, and must be marked “Issued Retroactively”.

Article 7. Certified true copy

Where the C/O is lost, stolen or damaged, the exporter may apply to the C/O issuing body for a certified true copy of the original C/O. The C/O issuing body shall issue the copy on the basis of the export documents retained by it, and that copy must bear the words “CERTIFIED TRUE COPY” in Box 5 of the C/O. That copy bears the date of issuance of the original C/O (form VC).

Article 8. Claiming tariff preferences

1. To enjoy tariff preferences, the importer must submit to the customs authority of the importing Member State the C/O (form VC) and the other documents required by the law of the importing Member State.

2. Where the C/O (form VC) is rejected by the customs authority of the importing Member State, that C/O (form VC) shall be marked in Box 4, the reason for denying the preferences shall be notified, and it shall be returned to the C/O issuing body of the exporting Member State. The competent issuing body may consider providing clarification and return it to the customs authority of the importing Member State.

Article 9. Validity of the C/O

The C/O is valid for 12 months from the date of its issuance.

Article 10. Waiver of the C/O

1. Goods originating in the exporting Member State with an FOB value not exceeding two hundred (200) US dollars are exempt from the C/O (form VC).

2. The importation of originating goods of the exporting Member State for which the customs authority of the importing country does not require the presentation of a C/O shall be carried out on condition that that importation does not form part of one or more importations aimed at avoiding the origin certification requirements of this Appendix.

Article 11. Record keeping

1. For the purposes of the origin verification under Articles 12 and 13, the producer or the exporter applying for a C/O (form VC) must retain the C/O application documents for five (05) years from the date of issuance of the C/O, in accordance with the law of the exporting Member State.

2. The C/O issuing body shall retain the C/O application dossier and the documents relating to that issuance for five (05) years from the date of issuance.

3. The importer claiming tariff preferences shall retain a valid copy of the original C/O or other information proving that the goods satisfy the origin requirements, and all the other documents that the importing Member State may require in connection with the importation of the goods under the regulations of the importing country, for five (05) years from the date of importation of the consignment.

Article 12. Request for information on the C/O

1. Information relating to the authenticity of the C/O (form VC) must be provided at the request of the customs authority of the importing Member State.

2. In order to determine whether goods imported from the exporting Member State are eligible for tariff preferences, the customs authority of the importing Member State may request information relating to the origin of the goods. That request shall be based on the C/O concerned and shall state the reasons and the information suggesting that the particulars on the C/O may be inaccurate.

3. For the purposes of Clause 2 of this Article, the C/O issuing body of the exporting Member State shall provide the information requested within ninety (90) days from the date of receipt of the request.

4. For the purposes of Clause 2 of this Article, the C/O issuing body of the exporting country may require the exporter or the producer in the exporting country referred to in Article 12 to provide the necessary information to that C/O issuing body.

5. A request for information under Clause 1 of this Article shall not preclude a verification visit in the exporting country under Article 13.

6. While carrying out the procedures referred to in this Article and in Article 13, the customs authority of the importing Member State may suspend the granting of tariff preferences pending the result of the verification, and the customs authority may allow the importer to clear the goods unless the goods are subject to the necessary administrative measures.

Article 13. Verification in the exporting country

1. The customs authority of the importing Member State may request the C/O issuing body of the exporting Member State to allow a verification to be carried out in the exporting country.

2. Before carrying out the verification, the customs authority of the importing Member State must notify the C/O issuing body of the exporting Member State of the verification request in writing at least forty (40) days before the proposed date of the verification, and the C/O issuing body of the exporting Member State must acknowledge receipt of that verification request. The C/O issuing body of the exporting Member State must obtain the written consent to the verification of the exporter or the producer of the goods in the exporting Member State whose premises are to be verified.

3. For the purposes of Clause 1 of this Article, the C/O issuing body of the exporting Member State must collect and provide the information relating to the origin of the goods as provided in Article 21, and examine the elements used in the production of the goods, through a verification carried out together with the customs authority of the importing Member State at the premises of the exporter to which the C/O was issued, and provide the information relating to the origin of the goods retained by the C/O issuing body of the exporting Member State during the verification referred to in Clause 1 of this Article.

4. The communications referred to in Clause 2 of this Article shall include:

a) The name of the customs authority issuing the notice;

b) The name of the exporter or the producer whose premises are to be verified;

c) The proposed date and place of the verification;

d) The objective and scope of the verification, including the reference to the goods subject to the verification; and

dd) The names and titles of the customs officials of the importing Member State carrying out the verification.

5. The C/O issuing body of the exporting Member State must reply in writing to the customs authority of the importing Member State accepting or refusing the verification requested under Clause 1 of this Article within thirty (30) days from the date of receipt of the request referred to in Clause 2 of this Article.

6. Upon receipt of the notice, the C/O issuing body of the exporting Member State may request a postponement of the on-site verification at the production facility and notify the customs authority of the importing Member State of that postponement. Even in the case of a postponement, the verification must be carried out within sixty (60) days from the date of receipt of the notice. That period may be extended where the parties so agree.

7. The C/O issuing body of the exporting Member State shall, in accordance with the law of the exporting country, provide the information to the customs authority of the importing Member State under Clause 3 of this Article within forty-five (45) days from the last day of the verification visit or within any other period agreed by the parties.

8. The verification process, including the on-site verification and the determination as to whether the goods satisfy the origin requirements, must be carried out and the result notified to the C/O issuing body within a maximum of one hundred and eighty (180) days.

Article 14. Determination of origin and the granting of tariff preferences

1. The customs authority of the importing Member State may deny tariff preferences for imported goods if those goods do not satisfy the origin criteria provided in Appendix I and/or the importer does not comply with the requirements of this Appendix.

2. The customs authority of the importing Member State may determine that the goods do not satisfy the origin criteria of the exporting Member State and may deny tariff preferences. A written determination shall be sent to the C/O issuing body of the exporting Member State in the following cases:

a) The C/O issuing body of the exporting Member State does not respond to the request within the period provided in Clause 2, Article 12 or Clause 2, Article 13;

b) The C/O issuing body of the exporting Member State refuses to allow a verification in the exporting Member State, or does not respond to the notice provided in Clause 1, Article 12 within the period provided in Clause 2, Article 13; or

c) The information provided to the customs authority of the importing Member State under Article 12 or Article 13 is insufficient to demonstrate that the goods satisfy the origin criteria of the exporting Member State.

3. After carrying out the procedures provided in Article 12 or Article 13, as the case may be, the customs authority of the importing Member State shall provide the C/O issuing body of the exporting Member State with a written determination as to whether the goods satisfy the origin criteria of the exporting Member State, including the facts and the legal basis of that determination, within forty-five (45) days from the date of receipt of the information provided by the C/O issuing body of the exporting Member State under Article 12 or Article 13. The C/O issuing body of the exporting Member State shall notify the determination of the customs authority of the importing Member State to the exporter whose premises were verified under Article 13.

4. Where the C/O issuing body of the exporting Member State cancels a decision to issue a C/O, it shall notify that cancellation to the exporter to which the C/O was issued and shall notify the customs authority of the importing Member State, unless the C/O is returned to the C/O issuing body of the exporting Member State. The customs authority of the importing Member State may deny tariff preferences upon receipt of that notice.

Article 15. Confidentiality

1. The Member States shall, in accordance with their domestic law, keep confidential the information provided under this Appendix and protect that information from disclosure that could prejudice the competitive position of the person providing it. Such business information may be disclosed only to the competent authorities responsible for administering and enforcing the determination of the origin of goods.

2. Information exchanged between the two Member States shall be treated as confidential and used only for the purpose of validating the C/O.

Article 16. Documents for the direct consignment rule

For the purposes of Point b, Clause 1, Article 8 of Appendix I, where the goods are transported through the territory of one or more intermediate non-Member States, the following documents must be submitted to the customs authority of the importing Member State:

1. A through bill of lading issued in the exporting Member State;

2. The C/O (form VC) issued by the C/O issuing body of the exporting Member State;

3. Other documents proving that the requirements of paragraphs b2) and b3) of Point b, Clause 1, Article 8 of Appendix I are satisfied.

Article 17. Invoices issued by a third country

1. The customs authority of the importing Member State must accept the C/O (form VC) where the sales invoice is issued by a company located in a third country that is not a Member State, provided that the goods satisfy the origin requirements provided in Appendix I.

2. The exporter shall tick the “non-Party invoicing” box and state information such as the name and country of the company issuing the invoice on the C/O (form VC).

Article 18. Penalties for false declarations

1. The Member States shall establish or maintain appropriate penalties for exporters applying for a C/O who make false declarations or present forged documents to the competent authority of the exporting Member State before the C/O (form VC) is issued.

2. Each Member State shall, in accordance with its domestic law, apply the measures it deems appropriate to an exporter applying for a C/O where that exporter, although aware of it, does not notify the competent authority of the exporting Member State in writing, after the C/O has been issued, that the goods do not satisfy the origin requirements of the exporting Member State.

Article 19. Obligations of the exporter

An exporter to which a C/O (form VC) has been issued under Article 4 shall immediately notify the C/O issuing body of the exporting Member State in writing when the exporter becomes aware that those goods do not satisfy the origin criteria of the exporting Member State.

Article 20. Obligations of the importer

Unless otherwise provided in this Appendix, the customs authority of the importing Member State shall require an importer claiming tariff preferences for imported goods to:

1. Declare to customs, on the basis of a valid C/O (form VC), that the goods are considered originating in the exporting Member State;

2. Hold the C/O (form VC) at the time of the customs declaration;

3. Provide the C/O (form VC) at the request of the customs authority of the importing Member State;

4. Promptly notify the customs authority and pay any duty owed where the importer has reason to believe that the C/O (form VC) on which the importer's import declaration was based contains inaccurate information.

Article 21. Obligations of the C/O issuing body

The C/O issuing body must carry out the appropriate checks upon receipt of an application for a C/O (form VC) to ensure that:

1. The C/O application and the C/O (form VC) are completed in the prescribed form and signed by the exporter;

2. The origin of the goods conforms to the Viet Nam - Chile Free Trade Area Agreement;

3. The other declarations on the C/O (form VC) conform to the supporting documents submitted;

4. The C/O (form VC) is signed by the C/O issuing body;

5. The description of the goods, the quantity and weight of the goods, the marks and numbers of the packages, and the number and kind of packages, as prescribed, conform to the exported products; and

6. Several different items may be declared on the same C/O (form VC), provided that each item satisfies its own corresponding origin criterion.

Article 22. Refund of customs duties

1. Where originating goods are imported into Chile but tariff preferences were not claimed at the time of importation, the importer may, no later than one (01) year after the date on which the goods were imported, claim a refund of any duty paid to the customs authority because those goods did not previously enjoy tariff preferences, provided that the following are submitted:

a) A written declaration that the goods satisfied the origin criteria at the time of importation;

b) The C/O (form VC); and

c) The other documents relating to the importation of the goods where the importing Member State so requires.

2. Where goods are imported into Viet Nam and the procedures for tariff preferences were not carried out at the time of importation, the granting of tariff preferences shall be carried out in accordance with Viet Nam's regulations.

Article 23. Transitional provisions for goods in transit or in storage

An importer may not enjoy tariff preferences at the time of entry into force of the Viet Nam - Chile Free Trade Area Agreement for goods that are in transit from the exporting Member State to the importing Member State or in temporary storage in a bonded warehouse, except in the following cases:

1. The goods satisfy all the requirements provided in Appendix I; and

2. The importer provides to the customs authority of the importing Member State, in accordance with the law of the importing Member State, a retroactively issued C/O (form VC) and, where required, the other documents relating to the importation of the goods, within a period of no more than four (04) months from the date of entry into force of the Viet Nam - Chile Free Trade Area Agreement./.

APPENDIX IV - A

FORM OF VIET NAM'S C/O VC (issued together with Circular No. 31/2013/TT-BCT dated November 15, 2013 of the Ministry of Industry and Trade providing for the implementation of rules of origin under the Viet Nam - Chile Free Trade Area Agreement)

Original (Duplicate/Triplicate)

CERTIFICATE OF ORIGIN Page: ____/____

OVERLEAF NOTES

For the purpose of claiming preferential tariff treatment, the document should be completed legibly and filled by the exporter. All items of the form should be completed in the English Language.

If the space of this document is insufficient to specify the necessary particulars for identifying the goods and other related information, the exporter may provide the information using additional Certificate of Origin.

Box 1: State the full name, address and country of the exporter.

Box 2: State the full name, address and country of the consignment.

Box 3: Provide the departure date, the name of vessel/aircraft and the name of the port of discharge, as far as known.

Box 4: State the country where the Certificate of Origin is issued.

Box 5:

- If the Certificate of Origin is issued Retroactively, the “Issued Retroactively” box should be ticked (√)

- In case where invoices are issued by a non-Party, the “Non-Party invoicing” box should be ticked (√)

- In case the Certificate of Origin is a duplicate of the original, in accordance with Rule 8, the “certified true copy” box should be ticked (√).

Box 6: Provide the item number.

Box 7: Provide the marks and number of packages.

Box 8: Provide the number and type of packages, HS code and description of each good consigned. The HS code should be indicated at the six-digit level.

The description of the good on a Certificate of Origin should be substantially identical to the description on the invoice and, if possible to the description under HS code for the good.

Box 9: For the goods that meet the origin criterion, the exporter must indicate the origin criterion met, in the manner shown in the following table:

Box 10: For each good indicate the quantity or gross weight

Box 11: Indicate the invoice number(s) and date(s) for each good. The invoice should be the one issued for the importation of the good into the importing Party.

Where invoices are issued by a third country, in accordance with Rule 17 of the Operational Certification Procedures, the “Non-Party Invoicing” box in box 5 should be ticked (√). The number of invoices issued for the importation of goods into the importing Party should be indicated in box 11, and the full legal name and address of the company or person that issued the invoices shall be indicated in box 8.

In a case where the invoice number issued in a non-Party at the time of issuance of the Certificate of Origin is not known, Box 11 should be left blank.

Box 12: This Box should be completed, signed and dated by the exporter. The “Date” should be the date when the Certificate of Origin is applied for.

Box 13: This Box should be completed, dated, signed and stamped by the Issuing Authority of the exporting Party. The “Date” should be the date when the Certificate of Origin is issued.

APPENDIX IV - B

FORM OF CHILE'S C/O VC (issued together with Circular No. 31/2013/TT-BCT dated November 15, 2013 of the Ministry of Industry and Trade providing for the implementation of rules of origin under the Viet Nam - Chile Free Trade Area Agreement)

CERTIFICATE OF ORIGIN Page: ____/____

OVERLEAF NOTES

For the purpose of claiming preferential tariff treatment, the document should be completed legibly and filled by the exporter. All items of the form should be completed in the English Language.

If the space of this document is insufficient to specify the necessary particulars for identifying the goods and other related information, the exporter may provide the information using additional Certificate of Origin.

Box 1: State the full name, address and country of the exporter.

Box 2: State the full name, address and country of the consignment.

Box 3: Provide the departure date, the name of vessel/aircraft and the name of the port of discharge, as far as known.

Box 4: State the country where the Certificate of Origin is issued.

Box 5:

- If the Certificate of Origin is issued Retroactively, the “Issued Retroactively” box should be ticked (√)

- In case where invoices are issued by a non-Party, the “Non-Party invoicing” box should be ticked (√)

- In case the Certificate of Origin is a duplicate of the original, in accordance with Rule 8, the “certified true copy” box should be ticked (√).

Box 6: Provide the item number.

Box 7: Provide the marks and number of packages.

Box 8: Provide the number and type of packages, HS code and description of each good consigned. The HS code should be indicated at the six-digit level.

The description of the good on a Certificate of Origin should be substantially identical to the description on the invoice and, if possible to the description under HS code for the good.

Box 9: For the goods that meet the origin criterion, the exporter must indicate the origin criterion met, in the manner shown in the following table:

Box 10: For each good indicate the quantity or gross weight

Box 11: Indicate the invoice number(s) and date(s) for each good. The invoice should be the one issued for the importation of the good into the importing Party.

Where invoices are issued by a third country, in accordance with Rule 17 of the Operational Certification Procedures, the “Non-Party Invoicing” box in box 5 should be ticked (√). The number of invoices issued for the importation of goods into the importing Party should be indicated in box 11, and the full legal name and address of the company or person that issued the invoices shall be indicated in box 8.

In a case where the invoice number issued in a non-Party at the time of issuance of the Certificate of Origin is not known, Box 11 should be left blank.

Box 12: This Box should be completed, signed and dated by the exporter. The “Date” should be the date when the Certificate of Origin is applied for.

Box 13: This Box should be completed, dated, signed and stamped by the Issuing Authority of the exporting Party. The “Date” should be the date when the Certificate of Origin is issued.

APPENDIX V

INSTRUCTIONS FOR COMPLETING THE C/O (issued together with Circular No. 31/2013/TT-BCT dated November 15, 2013 of the Ministry of Industry and Trade providing for the implementation of rules of origin under the Viet Nam - Chile Free Trade Area Agreement)

The Certificate of Origin (C/O) must be completed in English and printed by printer or other typewriting machine (except as guided in Clause 14 below). The C/O is completed as follows:

1. Box 1: state the trading name of the exporter, the address and the name of the exporting country.

2. Box 2: state the name of the consignee, the address and the name of the importing country.

3. Box 3: the information in this box may be completed on the basis of the information available at the time of the C/O application. The specific information is stated as follows:

- Date of departure: state the date on which the carrying vessel left the port.

- Name of the means of transport: if the goods are sent by sea, state the name of the carrying vessel; if sent by air, state “By air”; if sent by truck, state “By truck”.

- Port of discharge: state the name of the port of discharge.

4. Box 4:

a) Reference number: entered by the C/O issuing body. The reference number consists of 13 characters in 5 groups, as follows:

- Group 1: the name of the exporting member country, Viet Nam, consisting of 02 characters “VN”;

- Group 2: the name of the importing member country, Chile, consisting of 02 characters “CL”;

- Group 3: the year of issuance of the C/O, consisting of 02 characters. For example, issuance in 2012 is written as “12”;

- Group 4: the name of the C/O issuing body, consisting of 02 characters. The list of C/O issuing bodies is set out in Appendix VI;

- Group 5: the serial number of the C/O, consisting of 05 characters;

- 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 Ho Chi Minh City issues the 6th C/O for a consignment exported to Chile in 2012, the reference number of that C/O is written as: VN-CL 12/02/00006.

b) In the part for the place of issuance, state “VIET NAM”.

c) In the part reserved for the competent authority (For Official Use), the customs authority of the importing country shall tick the relevant box when it grants the special tariff preferences under the Free Trade Area Agreement.

5. Box 5:

- Tick √ in the “Issued Retroactively” box where the C/O is issued retroactively.

- Tick √ in the “Non-Party Invoicing” box where the commercial invoice is issued by a company located in a third country that is not a member country. Information such as the name and country of the company issuing that invoice must be stated on the C/O.

- Tick √ in the “Certified True Copy” box where a certified true copy of the C/O is reissued because the C/O was stolen, lost or damaged.

6. Box 6 (item number): state the serial number of each separate item.

7. Box 7 (marks and numbers of the packages): state the marks and numbers on the packaging of the packages.

8. Box 8 (number of packages, kind of packages, description of the goods, HS code of the goods): state the number of packages, the kind of packages, the name of the goods and the HS code of the goods. The HS code is stated to at least the first 6 digits. The description of the goods on the C/O must be similar to the description of the goods on the invoice and, if possible, similar to the description of the HS code in the corresponding tariff schedule.

9. Box 9 (origin criterion): state the origin criterion of the goods as guided below:

10. Box 10 (gross weight of the goods or other quantity): state the weight of the goods. The trader may choose whether or not to declare the value of the consignment on the C/O, but must declare that value in the C/O application and must provide the value of the consignment to the C/O issuing body and to the customs authority upon request.

11. Box 11 (number and date of the commercial invoice): state the number and date of the commercial invoice. That invoice is the invoice applicable to the importation into the importing country. Where the invoice is issued by a third country, the trader must tick √ in the “Non-Party Invoicing” box in Box 5. The number of the invoice issued for the importation into the importing country must be stated in Box 11. The name and address of the company or individual that issued that invoice must be stated in Box 8.

Where the number of the invoice issued by a third country is not known at the time of issuance of the C/O, Box 11 may be left blank.

12. Box 12 (declaration by the exporter):

- The first line: state “VIET NAM”.

- The second line: state the place and date of the C/O application and the signature of the person applying for the C/O.

13. Box 13 (certification by the C/O issuing body): state the date of issuance of the C/O, the signature of the C/O issuing officer and the seal of the C/O issuing body.

14. Other instructions:

- Where the number of items exceeds the space of one page of the C/O, the excess items may be listed on further C/O, but the reference number on those continuation C/O must be the same as the reference number of the initial C/O. Those continuation C/O must also be completed with all the required information and must be signed and stamped in the same way as the initial C/O.

- Box 5 may be ticked √ in ink of a colour other than red, or printed by printer or other typewriting machine./.

APPENDIX VI

LIST OF C/O ISSUING BODIES (issued together with Circular No. 31/2013/TT-BCT dated November 15, 2013 of the Ministry of Industry and Trade providing for the implementation of rules of origin under the Viet Nam - Chile Free Trade Area Agreement)