Circular No. 37/2022/TT-BCT

CIRCULAR

PROVIDING RULES OF ORIGIN UNDER THE ASEAN - JAPAN COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT

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;

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 ASEAN - Japan Comprehensive Economic Partnership Agreement, which was signed in rotation among the ASEAN countries and Japan and was signed by Viet Nam on April 1, 2008 in Hanoi;

In implementation of the First Protocol to Amend the ASEAN - Japan Comprehensive Economic Partnership Agreement, which took effect from August 1, 2020 with respect to Viet Nam;

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 ASEAN - Japan Comprehensive Economic Partnership Agreement.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular provides the rules of origin under the ASEAN - Japan Comprehensive Economic Partnership Agreement (hereinafter referred to as the AJCEP Agreement).

Article 2. Subjects of application

This Circular applies to:

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

2. Traders.

3. Agencies, organizations and individuals involved in 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. Exporter means a natural or juridical person located in an exporting Member State who exports goods from that Member State.

2. Factory ship of a Member State or vessel of a Member State means a ship that:

a) Is registered in that Member State.

b) Is entitled to fly the flag of that Member State.

c) Is at least 50% owned by nationals of one or more of the Member States, or is owned by a juridical person with its head office located in a Member State, of which the representatives, the chairman of the board of directors and the majority of the members of such board are nationals of one or more of the Member States, and of which at least 50% of the equity interest is owned by nationals or juridical persons of one or more of the Member States.

d) Has at least 75% of the total number of the master, officers and crew members on board who are nationals of one or more of the Member States.

3. Generally accepted accounting principles means the principles that are recognized by consensus or adopted 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 detailed standards and practices.

4. Goods means any merchandise, product, article or material.

5. Identical and interchangeable materials means materials of the same kind and of the same quality, having the same physical and technical characteristics, and which, once they are incorporated into the finished product, cannot be distinguished from one another for origin purposes by virtue of any marking.

6. Importer means a natural or juridical person who imports goods into an importing Member State.

7. Material means any matter or substance used or consumed in the production of goods or physically incorporated into goods, or used in the production of other goods.

8. Originating goods or originating material means goods or materials that satisfy the origin criteria under the provisions of this Circular.

9. Packing materials and containers for transportation and shipment means goods used to protect products during their transportation, other than packaging materials and containers in which the products are packed for retail sale.

10. Preferential tariff treatment means the application of tariff preferences to originating goods of an exporting Member State.

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

12. Competent governmental authority means the authority that, in accordance with the laws and regulations of each Member State, is responsible for the issuance of a C/O or for designating other agencies or organizations to issue C/O. Such agencies and organizations issuing C/O are hereinafter referred to as C/O issuing authorities or organizations.

13. Relevant competent authority means the competent authority of an importing Member State, other than the customs authority of that Member State, that is responsible for conducting verification and carrying out verification visits in the importing Member State.

Article 4. Certification and verification of origin of goods in Viet Nam

1. The following Appendices are issued together with this Circular:

a) Appendix I: Product Specific Rules.

b) Appendix II: ASEAN Form C/O AJ.

c) Appendix III: Japan Form C/O AJ.

d) Appendix IV: Minimum information of the C/O.

dd) Appendix V: Information technology products.

2. The list of authorities and organizations of Viet Nam issuing Form AJ C/O is updated on the electronic origin certification and management system of the Ministry of Industry and Trade at https://ecosys.gov.vn. The authorities and organizations of Viet Nam issuing Form AJ C/O shall register the specimen seals and signatures and update such specimen seals and signatures under the guidance of the Ministry of Industry and Trade.

3. The procedures for certification and verification of 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 provisions of law on origin of goods and the provisions of this Circular.

Chapter II

RULES OF ORIGIN

Article 5. Originating goods

Goods shall be considered as originating in a Member State if such goods:

1. Are wholly obtained or produced entirely in that Member State as provided for in Article 6 of this Circular.

2. Satisfy the provisions of Article 7 of this Circular where non-originating materials are used.

3. Are produced entirely in that Member State exclusively from originating materials of one or more of the Member States.

Article 6. Wholly obtained goods

For the purposes of paragraph 1 of Article 5 of this Circular, goods shall be considered as wholly obtained or produced entirely in a Member State in the following cases:

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

2. Live animals born and raised in that Member State. Animals as referred to in this paragraph and paragraph 3 of this Article means all animal life, including mammals, birds, fish, crustaceans, molluscs, reptiles, bacteria and viruses.

3. Products obtained from live animals in that Member State.

4. Products obtained from hunting, trapping, fishing, gathering or capturing in that Member State.

5. Minerals and other naturally occurring substances, not included in paragraphs 1 through 4 of this Article, extracted or taken from the soil, waters, seabed or beneath the seabed of that Member State.

6. Products taken from the waters, seabed or beneath the seabed outside the territorial sea of that Member State, provided that that Member State has the rights to exploit such waters, seabed and beneath the seabed in accordance with the laws and regulations of that Member State and in accordance with international law. Nothing in this Agreement shall affect the rights and obligations of the Member States under international law, including those under the United Nations Convention on the Law of the Sea.

7. Products of sea-fishing and other marine products taken by vessels of that Member State from the waters outside the waters of any Member State.

8. Products processed and/or made on board factory ships of that Member State exclusively from products referred to in paragraph 7 of this Article.

9. Articles collected in that Member State which can no longer perform their original purpose nor are capable of being restored or repaired and which are fit only for disposal or for the recovery of parts or raw materials, or for recycling purposes.

10. Scrap and waste derived from manufacturing or processing operations, including mining, agriculture, construction, refining, incineration and waste treatment operations or from consumption in that Member State, and fit only for the disposal or recovery of raw materials.

11. Goods obtained or produced in that Member State exclusively from products referred to in paragraphs 1 through 10 of this Article.

Article 7. Not wholly obtained goods

1. For the purposes of paragraph 2 of Article 5 of this Circular, goods shall be considered as originating in a Member State in one of the following cases:

a) The Regional Value Content (RVC) is not less than 40%, calculated according to the formula provided for in Article 8 of this Circular, and the final process of production is performed in that Member State.

b) All non-originating materials used in the production of the goods have undergone a change in tariff classification (CTC) at the four (04)-digit level (change of Heading) of the Harmonized Commodity Description and Coding System in that Member State.

The exporter of each Member State may choose to apply the origin criterion provided for in point a or point b of paragraph 1 of this Article to determine the origin of goods.

2. Paragraph 1 of this Article shall not apply to goods listed in the Product Specific Rules provided for in Appendix I issued together with this Circular. Goods on this List shall be considered as originating if they satisfy the specific rules provided for in Appendix I issued together with this Circular. Where this List provides for the choice of one of the criteria such as RVC, CTC, specific working or processing operations on the goods, or provides for a combination of these criteria, the exporter of a Member State may choose an appropriate criterion to determine the origin of goods.

3. Where the RVC criterion provided for in point a of paragraph 1 of this Article and in Appendix I issued together with this Circular is applied, the RVC calculated according to the formula provided for in Article 8 of this Circular shall not be less than the specific percentage of the RVC criterion provided for that goods.

4. The origin criterion provided for in point b of paragraph 1 of this Article and the CTC criterion or the criterion of specific working or processing operations on the goods provided for in Appendix I issued together with this Circular shall apply only to non-originating materials.

Article 8. Regional value content

1. The RVC shall be calculated according to the following formula:

In which:

a) FOB, except as provided for in paragraph 2 of this Article, means the free-on-board value of the goods, inclusive of the cost of transport from the producer to the port or site of final shipment.

b) RVC means the regional value content, expressed as a percentage.

c) VNM means the value of non-originating materials used in the production of the goods.

2. For the purposes of point a of paragraph 1 of this Article, FOB means the value determined in one of the following ways:

a) It shall be the first ascertainable price paid for the goods by the buyer to the producer, where the FOB value of the goods is unknown and cannot be ascertained.

b) It shall be determined in accordance with Articles 1 through 8 of the Customs Valuation Agreement, where there is no FOB value of the goods.

3. For the purposes of paragraph 1 of this Article, the value of non-originating materials used in the production of the goods in a Member State shall be determined in one of the following cases:

a) In accordance with the Customs Valuation Agreement, and including the cost of freight, insurance and, where appropriate, packing and all other costs incurred in transporting the materials to the port of importation in the Member State where the goods are produced.

b) If the value of the materials is unknown and cannot be ascertained, it shall be the first ascertainable price paid in that Member State, but it may exclude all the costs incurred in that Member State in transporting the materials from the warehouse of the supplier to the place of production, such as freight, insurance and packing costs, as well as any other known and ascertainable cost incurred in that Member State.

4. For the purposes of paragraph 1 of this Article, the VNM of the goods shall not include the value of non-originating materials used in the production of originating materials which are used in the production of the goods of that Member State.

5. For the purposes of point b of paragraph 2 of this Article or point a of paragraph 3 of this Article, in applying the Customs Valuation Agreement to determine the value of the goods or the value of non-originating materials, the Customs Valuation Agreement shall apply mutatis mutandis to domestic transactions or to cases where there is no domestic transaction in respect of the goods or the non-originating materials.

Article 9. De Minimis

1. Goods that do not satisfy point b of paragraph 1 of Article 7 or the CTC criterion provided for in Appendix I issued together with this Circular shall nonetheless be considered as originating in a Member State if they satisfy the other provisions of this Circular and fall into one of the following cases:

a) For goods classified in Chapters 16, 19, 20, 22, 23, Chapters 28 through 49 and Chapters 64 through 97 of the Harmonized Commodity Description and Coding System, the value of all non-originating materials used in the production of the goods that have not undergone the CTC criterion does not exceed 10% of the FOB value of the goods.

b) For goods classified in Chapters 18 and 21 of the Harmonized Commodity Description and Coding System, the value of all non-originating materials used in the production of the goods that have not undergone the CTC criterion does not exceed 10% or 7% of the FOB value of the goods as provided for in Appendix I issued together with this Circular.

c) For goods classified in Chapters 50 through 63 of the Harmonized Commodity Description and Coding System, the weight of all non-originating materials used in the production of the goods that have not undergone the CTC criterion does not exceed 10% of the total weight of the goods.

2. The value of non-originating materials referred to in paragraph 1 of this Article shall be included in the value of non-originating materials when applying the RVC formula provided for in paragraph 1 of Article 8 of this Circular.

Article 10. Cumulation

Originating materials of a Member State used in the production of goods in another Member State shall be considered as originating materials of the Member State where the working or processing of the goods has taken place.

Article 11. Minimal operations and processes

Goods shall be considered as not satisfying the CTC criterion or the criterion of specific working or processing operations if only one of the following operations is carried out:

1. Preserving operations to ensure that the goods remain in good condition during transport and storage (such as drying, freezing, keeping in brine) and similar operations.

2. Changes of packaging and breaking up and assembly of packages.

3. Disassembly.

4. Placing in bottles, cases, boxes and other simple packaging operations.

5. Collection of parts and components classified as goods pursuant to Rule 2(a) of the General Rules for the Interpretation of the Harmonized Commodity Description and Coding System.

6. Mere making-up of sets of articles.

7. Any combination of the operations referred to in paragraphs 1 through 6 of this Article.

Article 12. Direct consignment

1. Goods shall enjoy tariff preferences if they satisfy the provisions of this Circular and are consigned directly from the exporting Member State to the importing Member State.

2. The following cases shall be considered as consigned directly from the exporting Member State to the importing Member State:

a) The goods are transported directly from the exporting Member State to the importing Member State; or

b) The goods are transported from the exporting Member State to the importing Member State through one or more other Member States, or through a non-Member State, provided that the goods are only in transit or temporary storage, unloading, reloading and other operations to preserve the goods in good condition.

Article 13. Packing materials and containers

1. Packing materials and containers for transportation and shipment of the goods shall not be taken into account in determining the origin of the goods.

2. Packing materials and containers in which the goods are packed for retail sale, when classified together with such goods, shall not be taken into account in determining the origin of the goods under the CTC criterion.

3. Where the origin of the goods is determined under the RVC criterion, the value of the packing materials and containers in which the goods are packed for retail sale shall be considered as originating or non-originating materials, as the case may be, in calculating the RVC of the goods.

Article 14. Accessories, spare parts, tools and instructional or other information materials

1. Where the origin of goods is determined under the CTC criterion or the criterion of specific working or processing operations, the origin of the accessories, spare parts, tools and instructional or other information materials presented with the goods shall not be taken into account in determining the origin of the goods, provided that:

a) The accessories, spare parts, tools and instructional or other information materials are not invoiced separately from the goods.

b) The quantities and value of the accessories, spare parts, tools and instructional or other information materials are customary for the goods.

2. Where the origin of goods is determined under the RVC criterion, the value of the accessories, spare parts, tools and instructional or other information materials presented with the goods shall be taken into account as the value of originating materials or the value of non-originating materials, as the case may be, in calculating the RVC of the originating goods.

Article 15. Indirect materials

1. Indirect materials shall be considered as originating materials regardless of where they are produced.

2. “Indirect materials” means goods used in the production, testing or inspection of goods but not physically incorporated into the goods, or goods used in the maintenance of buildings or the operation of equipment associated with the production of goods, including:

a) Fuel and energy.

b) Tools, dies and moulds.

c) Spare parts and materials used in the maintenance of equipment and buildings.

d) Lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings.

dd) Gloves, glasses, footwear, clothing, safety equipment and supplies.

e) Equipment, devices and supplies used for testing or inspecting the goods.

g) Catalysts and solvents.

h) Any other materials that are not incorporated into the goods but the use of which can reasonably be demonstrated to be a part of the production of the goods.

Article 16. Identical and interchangeable materials

The determination of whether identical and interchangeable materials are originating materials shall be made by the application of generally accepted accounting principles of stock control or inventory management practices applied in the exporting Member State.

Chapter III

CERTIFICATION AND VERIFICATION OF ORIGIN OF GOODS

Article 17. Application for a C/O

1. The application for a C/O shall be submitted by the exporter or its authorised agent to the C/O issuing authority or organization of the exporting Member State in accordance with paragraph 1 of Article 19 of this Circular, together with the documents proving the origin of the goods for the issuance of the C/O in accordance with the laws of the exporting Member State.

2. Where the origin of the goods has been verified prior to exportation, the result of such verification of origin shall be regarded as supporting evidence for determining the origin of the goods subsequently. The result of the verification shall be reviewed periodically or whenever necessary. The verification of the origin of goods prior to exportation may not apply to goods whose origin can easily be determined by their nature.

Article 18. C/O

1. The C/O shall be made on A4 size paper, in the form provided for in Appendix II and Appendix III issued together with this Circular.

2. The C/O of the ASEAN countries shall comprise one original and two copies. The C/O of Japan shall comprise only one original.

3. The C/O shall bear a reference number given separately by each C/O issuing authority or organization.

4. Where there is a third country invoice, such invoice shall be indicated on the C/O, together with other information such as the name and address of the issuer of the invoice.

5. The exporter shall make a declaration on the C/O in Box 11 for the C/O of the ASEAN countries and in Box 10 for the C/O of Japan. The signature of the exporter may be a manual signature or an electronic signature.

6. The signature on the C/O of the authorised officer of the C/O issuing authority or organization of the exporting Member State may be a manual signature or an electronic signature.

7. The original C/O shall be sent by the exporter to the importer for submission to the customs authority of the importing Member State. In the case of the ASEAN countries, the C/O issuing authority or organization and the exporter shall retain copies of the C/O.

8. The customs authority of the importing Member State shall accept a C/O that indicates two or more invoices issued for the same consignment.

9. Multiple items may be declared on one C/O, provided that each item is originating.

10. Where multiple items are declared on one C/O, a problem encountered with one or some of the items shall not affect or delay the granting of tariff preferences and the customs clearance procedures for the remaining items on that C/O. Paragraph 5 of Article 30 of this Circular shall apply to the items with problems relating to the origin of goods.

Article 19. Issuance of a C/O

1. The C/O issuing authority or organization of the exporting Member State shall issue the C/O upon the written application of the exporter or its authorised agent.

2. Each Member State shall notify all the other Member States of the list containing the names, addresses, specimen signatures and specimen seals of its C/O issuing authorities or organizations.

3. A C/O bearing a signature that is not registered in the list referred to in paragraph 2 of this Article shall not be valid.

4. Where the exporter is not the producer in the exporting Member State, the exporter may apply for a C/O on the basis of one of the following:

a) A declaration by the exporter submitted to the C/O issuing authority or organization on the basis of the information provided by the producer to that exporter.

b) A declaration provided voluntarily by the producer directly to the C/O issuing authority or organization at the request of the exporter.

5. The C/O shall be issued only after the exporter or the producer in the exporting Member State referred to in point b of paragraph 4 of this Article proves to the C/O issuing authority or organization that the goods to be exported are originating goods of the exporting Member State.

6. If, after the C/O has been issued, the exporter or the producer referred to in paragraph 5 of this Article finds that the goods are not originating goods of the exporting Member State, the exporter or the producer shall immediately notify the C/O issuing authority or organization in writing in accordance with the laws of the exporting Member State.

7. Upon receipt of the notification referred to in paragraph 6 of this Article or upon finding that the goods for which a C/O has been issued are not originating goods of the exporting Member State, the C/O issuing authority or organization shall cancel that C/O and immediately notify such cancellation to the exporter to whom the C/O was issued as well as to the customs authority of the importing Member State, except where the exporter has returned that C/O to the competent governmental authority of the exporting Member State.

8. The Form C/O AJ and the contents thereon shall be made in the English language and shall include the minimum information provided for in Appendix IV issued together with this Circular.

Article 20. Modifications

1. The customs authority of the importing Member State shall disregard minor errors such as slight discrepancies or omissions, typing errors or information written outside the boxes, provided that such minor errors do not affect the authenticity of the C/O or the accuracy of the information indicated on the C/O.

2. Erasures or superimpositions on the C/O shall not be allowed. Any change shall be made only in one of the following ways:

a) Striking out the erroneous parts and making any addition required. Such changes shall be approved by the person authorised to sign the C/O and certified by the C/O issuing authority or organization. Any unused space shall be crossed out to prevent any subsequent addition.

b) Issuing a new C/O to replace the erroneous C/O.

Article 21. Theft, loss or destruction of the C/O

Where the C/O is stolen, lost or destroyed before the expiration of its validity, the exporter or its authorised agent may request the C/O issuing authority or organization to do one of the following:

1. Issue a new C/O with a new reference number on the basis of the export documents kept at the C/O issuing authority or organization of the exporting Member State, in which case the old C/O shall cease to be valid. The date of issuance and the reference number of the old C/O shall be indicated in Box 12 of the new C/O of the ASEAN countries and in Box 9 of the new C/O of Japan, and the new C/O shall be valid only during the term of validity of the old C/O.

2. Where possible, issue a certified true copy of the original C/O on the basis of the export documents of the exporter or its authorised agent, and the words “CERTIFIED TRUE COPY” shall be indicated in Box 12 of the certified true copy of the C/O of the ASEAN countries. This copy shall bear the date of issuance of the original C/O and shall have the same term of validity as the original C/O. The certified true copy shall be issued within one year from the date of issuance of the original C/O.

Article 22. Provisions on waiver of the C/O

1. For the purposes of paragraph 2 of Article 27 of this Circular, the C/O shall be waived where the customs value does not exceed:

a) For Japan, two hundred thousand Yen (¥ 200,000) in customs value.

b) For the ASEAN countries, two hundred US Dollars (USD 200) in export value.

2. For the purposes of paragraph 2 of Article 27 of this Circular, where a Member State changes the value referred to in paragraph 1 of this Article, or makes any subsequent change to that value, it shall notify the other Member States of such changed value through the ASEAN Secretariat.

Article 23. C/O issued retroactively

A C/O shall be issued before or no later than three (03) days from the date of shipment. In exceptional cases where the C/O has not been issued before or no later than three (03) days from the date of shipment, at the request of the exporter, the C/O shall be issued retroactively within twelve (12) months from the date of shipment in accordance with the laws of the exporting Member State, and the box “Issued Retroactively” shall be ticked (√). In this case, the importer who wishes to enjoy tariff preferences shall, in accordance with the laws of the importing Member State, provide the customs authority of the importing Member State with the said C/O issued retroactively. The date of shipment shall be indicated in Box 3 of the C/O issued retroactively.

Article 24. Documents for the case of cumulation

For the purposes of Article 10 of this Circular, where documents are required for the issuance of a C/O or for verification to prove that the materials accumulated in the production of the goods are originating materials of a Member State, one of the following documents may be used:

1. A declaration by the exporter or the producer of the goods.

2. A commercial invoice.

3. A copy of the C/O issued for the materials by the Member State exporting the materials, including a copy of a C/O issued retroactively.

4. Any other relevant documents.

Article 25. Back-to-back C/O for the exportation of a part of a consignment

For the purposes of paragraph 4 of Article 27 of this Circular, where a part of a consignment is re-exported, the export value and the quantity of that part of the consignment shall be indicated on the back-to-back C/O. The Member State issuing the back-to-back C/O shall ensure that the total quantity of the exportation of the parts of the consignment does not exceed the total quantity of the goods on the original C/O.

Article 26. Indication of the HS code on the C/O

The HS code shall be indicated on the C/O at the six-digit level. The description of the goods on the C/O shall be substantially identical to the description of the goods on the commercial invoice and, if possible, substantially identical to the description of the goods in the tariff nomenclature.

Article 27. Submission of the C/O

1. In order to enjoy tariff preferences, the importer shall submit the following documents to the customs authority of the importing Member State:

a) A C/O that is still valid.

b) Other necessary documents in accordance with the laws of the importing Member State (such as the commercial invoice, including a commercial invoice issued by a third country, and the through bill of lading issued in the exporting Member State).

2. The importer shall not be required to submit a C/O for an imported consignment originating in the exporting Member State whose customs value does not exceed two hundred US Dollars (USD 200) or the equivalent customs value in the currency of the exporting Member State, or a higher value as may be set by the importing Member State.

3. Where originating goods of the exporting Member State are imported through one or more Member States other than the exporting Member State and the importing Member State, or are imported through non-Member States, the importing Member State may require the importer who wishes to enjoy tariff preferences for the said goods to submit one of the following documents:

a) A copy of the through bill of lading.

b) A certificate or any other information provided by the customs authority or the relevant authorities of one or more Member States or of the non-Member States, proving that the goods have not undergone any operation other than unloading, reloading and any other operation to preserve the goods in good condition in those Member States or in the non-Member States.

4. Except as provided for in paragraph 5 of Article 19 of this Circular, where originating goods for which a C/O has been issued by the C/O issuing authority or organization of the exporting Member State (hereinafter referred to as the “original C/O”) are subsequently re-exported from the importing Member State to another Member State, the C/O issuing authority or organization of the importing Member State may issue a back-to-back C/O, which shall be regarded as a new C/O for the originating goods, if the exporter in the importing Member State or its authorised agent applies for the back-to-back C/O and submits the original C/O which is still valid.

5. Where a back-to-back C/O is issued in accordance with paragraph 4 of this Article, goods originating in the exporting Member State under this Circular shall be considered as goods originating in the Member State where the original C/O was issued.

Article 28. Validity of the C/O

1. The C/O shall be submitted to the customs authority of the importing Member State within one (01) year from the date of its issuance by the C/O issuing authority or organization of the exporting Member State.

2. Where the C/O is submitted to the customs authority of the importing country after the expiration of the term of validity provided for in paragraph 1 of this Article, that C/O shall still be accepted if the failure to submit it in time is due to force majeure or other causes beyond the control of the exporter or the importer.

3. Each C/O shall apply to a single importation of originating goods from the exporting Member State into the importing Member State.

Article 29. Record keeping

1. The exporter to whom a C/O has been issued or the producer in the exporting Member State referred to in point b of paragraph 4 of Article 19 of this Circular shall keep the records relating to the origin of the goods for a period of three (03) years after the date of issuance of the C/O.

2. The C/O issuing authority or organization shall keep the records of the application for the C/O for a period of three (03) years after the date of issuance of the C/O. Such records shall include all documents submitted to prove that the goods are originating goods of the exporting Member State.

Article 30. Verification of origin of goods

1. For the purpose of verifying the origin of imported goods, the customs authority or the relevant competent authority of the importing Member State may request the competent governmental authority of the exporting Member State to provide information relating to the origin of the goods on the basis of the data contained in that C/O.

2. For the purposes of paragraph 1 of this Article, the competent governmental authority of the exporting Member State shall, in accordance with the laws of the exporting Member State, provide the information requested within a period not exceeding three (03) months after the date of receipt of the request for verification. Where necessary, the customs authority or the relevant competent authority of the importing Member State may request additional information relating to the origin of the goods. Where the customs authority or the relevant competent authority of the importing Member State requests additional information, the competent governmental authority of the exporting Member State shall, in accordance with the laws of the exporting Member State, provide the additional information within a period not exceeding three (03) months after the date of receipt of the request for the additional information.

3. For the purposes of paragraph 2 of this Article, the competent governmental authority of the exporting Member State may request the exporter to whom the C/O has been issued or the producer of the exporting Member State referred to in point b of paragraph 4 of Article 19 of this Circular to provide the competent governmental authority of the exporting Member State with the information requested.

4. A request for information under paragraph 1 of this Article shall not preclude a request for a verification visit under Article 31 of this Circular.

5. In the course of conducting verification under this Article and Article 31 of this Circular, the customs authority of the importing Member State may temporarily deny tariff preferences pending the result of the verification, but shall release the goods to the importer, except where the goods are subject to the application of appropriate administrative measures.

Article 31. Verification visit in the exporting Member State

1. The customs authority or the relevant competent authority of the importing Member State may request the exporting Member State to:

a) Collect and provide information relating to the origin of the goods and check the facilities used in the production of the goods, through a verification visit conducted by the competent governmental authority of the exporting Member State, together with the customs authority or the relevant competent authority of the importing Member State, to the premises of the exporter to whom the C/O has been issued or of the producer in the exporting Member State referred to in point b of paragraph 4 of Article 19 of this Circular.

b) Provide information relating to the origin of the goods that is in the possession of the competent governmental authority of the exporting Member State or its designee during the verification visit conducted under point a of this paragraph.

2. When requesting the exporting Member State to conduct a verification visit under paragraph 1 of this Article, the customs authority or the relevant competent authority of the importing Member State shall send a written notification to the exporting Member State at least sixty (60) days prior to the proposed date of the visit. The receipt of the notification shall be confirmed by the exporting Member State. The competent governmental authority of the exporting Member State shall request the written consent of the exporter or the producer whose premises are to be visited.

3. The written notification under paragraph 2 of this Article shall include the following contents:

a) The information of the customs authority or the relevant competent authority that issued the notification.

b) The name of the exporter or the producer in the exporting Member State whose premises are to be visited.

c) The proposed date and place of the visit.

d) The proposed object and scope of the visit, including specific information relating to the goods subject to the verification contained in the C/O.

dd) The names and titles of the officials of the customs authority or the relevant competent authority of the importing Member State who will participate in the visit.

4. The exporting Member State shall respond in writing to the importing Member State within thirty (30) days from the receipt of the notification under paragraph 2 of this Article, stating whether it accepts or refuses to conduct the visit requested under paragraph 1 of this Article.

5. The competent governmental authority of the exporting Member State shall, in accordance with the laws of its own State, provide any additional information collected under paragraph 1 of this Article to the customs authority or the relevant competent authority of the importing Member State within forty-five (45) days, or within any other mutually agreed period, from the last day of the visit.

Article 32. Determination of origin and grant of tariff preferences

1. The customs authority of the importing Member State may deny tariff preferences to imported goods that do not qualify as originating goods of the exporting Member State or where the importer fails to comply with the provisions of this Circular.

2. When conducting verification under Article 30 or Article 31 of this Circular, the customs authority of the importing Member State may determine that the goods of the exporting Member State do not qualify as originating goods and may deny tariff preferences on the basis of one of the following conditions:

a) The competent governmental authority of the exporting Member State fails to respond to the request for verification within the period provided for in paragraph 2 of Article 30 or paragraph 5 of Article 31 of this Circular.

b) The exporting Member State refuses to conduct the verification visit requested by the customs authority or the relevant competent authority of the importing Member State, or that exporting Member State fails to respond to the notification under paragraph 2 of Article 31 of this Circular within the period referred to in paragraph 4 of Article 31 of this Circular.

c) The information provided to the customs authority or the relevant competent authority of the importing Member State under Article 30 or Article 31 of this Circular does not prove that the goods are originating goods of the exporting Member State.

3. Where verification is conducted under Article 30 or Article 31 of this Circular, the customs authority of the importing Member State shall provide the competent governmental authority of the exporting Member State with a written determination stating whether or not the goods qualify as originating goods of the exporting Member State. This document shall contain the evidence and the legal basis for making the said determination. The time limit for providing this determination shall not exceed thirty (30) days after the date of receipt of the information last provided by the competent governmental authority of the exporting Member State under Article 30 of this Circular, or shall not exceed sixty (60) days after the last day of the verification visit under Article 31 of this Circular, unless the exporting Member State and the importing Member State agree on another period.

4. The competent governmental authority of the exporting Member State shall notify the determination of the customs authority of the importing Member State under paragraph 3 of this Article to the exporter or to the producer of the exporting Member State whose premises were visited under Article 31 of this Circular. Where the determination confirms that the goods qualify as originating goods, such goods shall be granted tariff preferences.

Article 33. Confidentiality

1. Where a Member State provides information to another Member State under this Circular and designates that information as confidential, the Member State receiving the information shall maintain the confidentiality of the information and protect it from disclosure that could prejudice the competitive position of the persons providing the information, shall use the information only for the purposes specified by the Member State providing the information, and shall not disclose the information without the written consent of the Member State that provided it.

2. The information obtained by the customs authority or the relevant competent authority of the importing Member State under this Circular:

a) Shall be used by that authority only for the verification of the C/O under this Circular.

b) Shall not be used by the importing Member State in any criminal proceedings carried out by a court or a judge without the written consent of the exporting Member State that provided such information.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 34. Transitional provisions on the application of the transposed Product Specific Rules

1. Where the transposed Product Specific Rules have not yet taken effect, a C/O issued on the basis of the Product Specific Rules of the HS 2002 version shall be accepted by the customs authority of the importing Member State.

2. Where a C/O is issued under the Product Specific Rules of the HS 2002 version before the date of entry into force of the transposed Product Specific Rules and is submitted to the customs authority of the importing Member State in accordance with paragraph 1 of Article 28 of this Circular at the time when the transposed Product Specific Rules take effect, it shall be accepted by the customs authority of the importing Member State.

3. For consignments exported before the date of entry into force of the transposed Product Specific Rules, a C/O issued after the date of entry into force of the transposed Product Specific Rules in accordance with Article 23 of this Circular shall be issued on the basis of the transposed Product Specific Rules of the HS 2017 version.

4. Where a back-to-back C/O is issued in accordance with paragraph 4 of Article 27 of this Circular, the C/O issuing authority or organization of the importing Member State shall issue the back-to-back C/O according to the transposed HS code based on the HS code of the original C/O, depending on the status of entry into force of the transposed Product Specific Rules of the exporting Member State or of the other Member States.

Article 35. Organization of implementation

1. The guidance and common understandings relating to the rules of origin that are agreed among the Member States in rotation or agreed in the reports of the implementation meetings of the Joint Committee for implementing the Agreement and of the Sub-Committee on Rules of Origin within the framework of the AJCEP Agreement shall serve as the basis for implementation by the C/O issuing authorities or organizations and the customs authorities.

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

Article 36. Implementation provisions

1. This Circular takes effect from March 1, 2023

2. This Circular annuls Decision No. 44/2008/QD-BTM dated December 8, 2008 of the Minister of Trade (now the Ministry of Industry and Trade) promulgating the Regulation on the issuance of Certificates of Origin Form AJ for enjoying preferences under the ASEAN - Japan Comprehensive Economic Partnership Agreement.

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

APPENDIX I

PRODUCT SPECIFIC RULES (issued together with Circular No. 37/2022/TT-BCT dated December 23, 2022 of the Minister of Industry and Trade providing rules of origin under the AJCEP Agreement)

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

a) RVC 40% means the Regional Value Content of the goods, calculated according to the formula provided for in Article 8 of this Circular, of not less than 40%, and the final process of production is performed in a Member State. Point a of paragraph 1 of Article 8 of this Circular shall apply within the scope of this Appendix.

b) “CC” means a change from any other Chapter to a Chapter, Heading or Subheading. All non-originating materials used in the production of the product have undergone a change in HS code at the 2-digit level (change of Chapter).

c) “CTH” means a change from any other Heading to a Chapter, Heading or Subheading. All non-originating materials used in the production of the product have undergone a change in HS code at the 4-digit level (change of Heading).

d) “CTSH” means a change from any other Subheading to a Chapter, Heading or Subheading. All non-originating materials used in the production of the product have undergone a change in HS code at the 6-digit level (change of Subheading).

dd) “WO” means goods wholly obtained or produced entirely in the territory of a Member State as provided for in Article 6 of this Circular.

2. This Appendix is based on the Harmonized Commodity Description and Coding System as amended on January 1, 2017.

3. The following cases shall apply in accordance with point b of paragraph 1 of Article 9 of this Circular:

a) Goods of Subheadings 1803.10, 1803.20 and 1805.00: The total value of non-originating materials used in the production shall not exceed 10% of the FOB value of the product if such materials do not satisfy the change in tariff classification criterion.

b) Goods of Subheading 2103.90: The total value of non-originating materials used in the production shall not exceed 7% of the FOB value of the product if such materials do not satisfy the change in tariff classification criterion.

Note: For Section XI (Chapters 50-63):

1. Within Chapters 50-55 and Chapter 60, the dyeing or printing process must be accompanied by at least two (02) of the following processes:

(1) anti-bacterial finishing;

(2) anti-drip finishing;

(3) anti-mosquito finishing;

(4) anti-pilling finishing;

(5) anti-static finishing;

(6) artificial creasing;

(7) bleaching;

(8) brushing;

(9) buffing finishing;

(10) burn-out finishing;

(11) calendering;

(12) compressive shrinkage;

(13) crease-resistant finishing;

(14) decatising (hot/cold);

(15) deodorant finishing;

(16) durable press finishing;

(17) embossing;

(18) emerising;

(19) flame-resistant finishing;

(20) flocking finishing;

(21) flock printing;

(22) liquid ammonia treatment (of fabrics and yarns for lustre);

(23) mercerising (of fabrics and yarns for lustre);

(24) microbicide treatment;

(25) milling/fulling/felting (of felt fabrics, fur and soft wool);

(26) moire finishing;

(27) moisture-absorbing prevention (for sportswear);

(28) oil-repellent finishing;

(29) organdie finishing/organdie effect;

(30) peeling/splitting (of yarns);

(31) perfumed finishing/aroma impregnation;

(32) relaxing/stretching (of yarns);

(33) scutching (of flax);

(34) semi-decatising finishing (of knitted fabrics by calender);

(35) shearing (of fabrics, after napping);

(36) shrink-resistant finishing;

(37) soil-resistant finishing;

(38) soil-release finishing;

(39) stretch finishing in the width direction;

(40) static-electricity prevention (for woven and knitted fabrics)

(41) ultraviolet-resistant finishing;

(42) wash-and-wear finishing;

(43) water-absorbing finishing (on synthetic fibres);

(44) water-repellent treatment (for woven and knitted fabrics);

(45) waterproof finishing (for yarns);

(46) wet decatising;

(47) windproof finishing; or

(48) raising.

2. In determining the origin of goods of Chapters 61, 62 and 63, the rule applicable to such goods shall apply only to the component that determines the tariff classification of the product, and that component shall satisfy the CTC criterion provided for the goods of which it forms part.

APPENDIX II

ASEAN FORM C/O AJ (issued together with Circular No. 37/2022/TT-BCT dated December 23, 2022 of the Minister of Industry and Trade providing rules of origin under the AJCEP Agreement)

Original (Duplicate/Triplicate)

OVERLEAF NOTES

1. The following countries shall use this form for the purpose of preferential tariff treatment under the Agreement on Comprehensive Economic Partnership among Member States of the Association of Southeast Asian Nations and Japan (AJCEP Agreement):

2. CONDITIONS: To enjoy preferential tariff treatment under the AJCEP Agreement, goods exported to any of the Parties to the AJCEP Agreement should:

(i) fall within a description of goods eligible for concessions in the importing Party;

(ii) comply with the consignment conditions in accordance with Article 31 of the AJCEP Agreement; and

(iii) comply with the origin criteria in Chapter 3 of the AJCEP Agreement.

3. ORIGIN CRITERIA: For goods that meet the origin criteria, the exporter should indicate in box 8 of this Form, the origin criteria met, in the manner shown in the following table:

4. EACH ITEM SHOULD QUALIFY: All items in a consignment should qualify separately in their own right. This is of particular relevance when similar items of different sizes are exported.

5. DESCRIPTION OF GOODS: For each good, the HS tariff classification number of the importing Party 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 the HS for the good. With respect to subheading 2208.90 and 9404.90, in an exceptional case where the good is a specific product requiring a special description (e.g. “sake compound and cooking sake (Mirin) of subheading 2208.90”, “beverages with a basis of fruit, of an alcoholic strength by volume of less than 1% of subheading 2208.90” “quilts and eiderdowns of 9404.90”), such description of specific products should be indicated.

6. FREE-ON-BOARD (FOB) VALUE: The FOB value in Box 9 shall be reflected only when the Regional Value Content criterion is applied in determining the origin of goods. In the case of goods exported from and imported by Cambodia and Myanmar, the FOB value shall be included on the Certificate of Origin, irrespective of the origin criteria used, for 2 years upon the implementation of this new arrangement.

7. INVOICES: Indicate the invoice number and date for each item. The invoice should be the one issued for the importation of the good into the importing Party.

8. THIRD COUNTRY INVOICING: In cases where invoices are issued by a third country, in accordance with Rule 3 (d) of Implementing Regulations, the “Third Country Invoicing” box in box 13 should be ticked (√). The number of invoices issued for the importation of goods into the importing Party should be indicated in box 10, and the full legal name and address of the company or person that issued the invoices shall be indicated in box 7.

In an exceptional case where the invoice issued in a third country is not available at the time of issuance of the certificate of origin, the invoice number and the date of the invoice issued by the exporter to whom the certificate of origin is issued should be indicated in box 10. The “Third Country Invoicing” in box 13 should be ticked, and it should be indicated in box 7 that the goods will be subject to another invoice to be issued in a third country for the importation into the importing Party, identifying in box 7 the full legal name and address of the company or person that will issue another invoice in the third country. In such a case, the customs authority of the importing Party may require the importer to provide the invoices and any other relevant documents which confirm the transaction from the exporting Party to the importing Party, with regard to the goods declared for import.

9. BACK-TO-BACK CERTIFICATE OF ORIGIN: In the case of a back-to-back CO issued in accordance with paragraph 4 of Rule 3 of the Operational Certification Procedures, the “Back-to-Back CO” box in box 13 should be ticked (√).

10. ISSUED RETROACTIVELY: In cases of a CO issued retroactively in accordance with Rule 7 of the Implementing Regulations, the “Issued Retroactively” box in box 13 should be ticked (√).

11. CERTIFIED TRUE COPY: In cases of certified true copies, the words “CERTIFIED TRUE COPY” should be indicated in box 12 in accordance with Rule 5 of the Implementing Regulations.

APPENDIX III

JAPAN FORM C/O AJ (issued together with Circular No. 37/2022/TT-BCT dated December 23, 2022 of the Minister of Industry and Trade providing rules of origin under the AJCEP Agreement)

OVERLEAF NOTES

1. Japan uses this form for the purpose of preferential tariff treatment under the Agreement on Comprehensive Economic Partnership among Japan and Member States of the Association of Southeast Asian Nations (AJCEP Agreement).

2. CONDITIONS: To enjoy preferential tariff treatment under the AJCEP Agreement, goods exported to any Party of the AJCEP Agreement should:

(i) fall within a description of goods eligible for concessions in the importing Party;

(ii) comply with the consignment conditions in accordance with Article 31 of Chapter 3; and

(iii) comply with the preference criteria provided for in Chapter 3 of the AJCEP Agreement.

3. PREFERENCE CRITERIA: For goods that meet the preference criteria, the exporter or its authorised agent should indicate in box 6 of this form, the preference criteria met, in the manner shown in the following table:

4. EACH ITEM SHOULD QUALIFY: All items in a consignment should qualify separately in their own right. This is of particular relevance when similar items of different sizes are exported.

5. DESCRIPTION OF GOODS: For each good, the HS tariff classification number of the importing Party 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 the HS for the good. With respect to subheading 2208.90 and 9404.90, in an exceptional case where the good is a specific product requiring a special description (e.g. “sake compound and cooking sake (Mirin) of subheading 2208.90”, “beverages with a basis of fruit, of an alcoholic strength by volume of less than 1% of subheading 2208.90” “quilts and eiderdowns of 9404.90”), such description of specific products should be indicated.

6. INVOICES: Indicate the invoice number and date for each item. The invoice should be the one issued for the importation of the good into the importing Party.

7. THIRD COUNTRY INVOICING: In cases where invoices are issued by a third country, in accordance with Rule 3 (d) of Implementing Regulations, the “Third Country Invoicing” box in box 9 should be ticked (√) and the number of invoice issued for the importation of goods into the importing Party should be indicated in box 8, identifying in box 9 the full legal name and address of the company or person that issued the invoice.

In an exceptional case where the invoice issued in a third country is not available at the time of issuance of the certificate of origin, the invoice number and the date of the invoice issued by the exporter to whom the certificate of origin is issued should be indicated in box 8. The “Third Country Invoicing” box in box 9 should be ticked (√), and it should be indicated in box 9 that the goods will be subject to another invoice to be issued in a third country for the importation into the importing Party, identifying in box 9 the full legal name and address of the company or person that will issue another invoice in the third country. In such case, the customs authority of the importing Party may require the importer to provide the invoices and any other relevant documents which confirm the transaction from the exporting Party to the importing Party, with regard to the goods declared for import.

8. ISSUED RETROACTIVELY: In cases of COs issued retroactively in accordance with Rule 7 of the Implementing Regulations, the “Issued Retroactively” box in box 9 should be ticked (√).

APPENDIX IV

MINIMUM INFORMATION OF THE C/O (issued together with Circular No. 37/2022/TT-BCT dated December 23, 2022 of the Minister of Industry and Trade providing rules of origin under the AJCEP Agreement)

1. Name, address and country name of the exporter.

2. Name, address and country name of the importer; where appropriate, name, address and country name of the consignee.

3. Reference number.

4. Origin of the goods.

5. Invoice number and invoice date.

6. Transport information (if known).

7. HS code.

8. Marks and numbers on the packages, number and kind of packages; description of the goods.

9. Quantity of the goods (unit).

10. Origin criterion (including information on CTC, RVC and cumulation).

11. Declaration by the exporter.

12. Certification by the C/O issuing authority or organization.

APPENDIX V

INFORMATION TECHNOLOGY PRODUCTS (issued together with Circular No. 37/2022/TT-BCT dated December 23, 2022 of the Minister of Industry and Trade providing rules of origin under the AJCEP Agreement)

Goods listed in Attachment A or Attachment B of the Ministerial Declaration on Trade in Information Technology Products adopted at the Ministerial Conference of the World Trade Organization on December 13, 1996, which are used as materials in the production of other goods in a Member State, may be considered as originating materials of that Member State, irrespective of the product specific rule applicable to such materials, provided that such materials are assembled in any Member State, except where such materials are classified in Subheadings 8541.10 through 8542.90.