CIRCULAR

ON GUIDELINES FOR THE IDENTIFICATION OF ORIGIN OF EXPORTS AND IMPORTS WHICH ARE NOT WHOLLY OBTAINED GOODS DEFINED IN THE GOVERNMENT'S DECREE NO. 19/2006/ND-CP DATED FEBRUARY 20, 2006 ON GUIDELINES FOR THE COMMERCIAL LAW REGARDING THE ORIGIN OF GOODS

Circular No. 08/2006/TT-BTM dated April 17, 2006 of Minister of Commerce (currently Ministry of Industry and Trade) on guidelines for identification of origin of exports and imports which are not wholly obtained prescribed in the Government's Decree No. 19/2006/ND-CP dated February 20, 2006 on guidelines for the Law on Commerce regarding origin of goods, coming into force as of May 14, 2006, being amended by:

Circular No. 10/2006/TT-BTM dated June 1, 2006 of Minister of Commerce (currently Ministry of Industry and Trade) on amendments to Circular No. 08/2006/TT-BTM on guidelines for identification of origin of exports and imports which are not wholly obtained prescribed in the Government's Decree No. 19/2006/ND-CP dated February 20, 2006 on guidelines for the Law on Commerce regarding origin of goods, coming into force as of May 14, 2006.

Pursuant to the Government's Decree No. 29/2004/ND-CP dated January 16, 2004 defining the functions, tasks, entitlements and organizational structure of the Ministry of Trade;

Pursuant to Government's Decree No. 19/2006/ND-CP dated February 20, 2006 on guidelines for the Law on Commerce regarding origin of goods;

Ministry of Trade provides guidelines for identification of origin of exports and imports as follows: [1]

I. GENERAL PROVISIONS

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a) This Circular provides guidelines for identification of origin of exports and imports which are not wholly obtained prescribed in Article 8 of Government's Decree No. 19/2006/ND-CP dated February 20, 2006 on guidelines for the Law on Commerce regarding origin of goods;

b) As for exports eligible for the general tariff preferences, their origin shall be identified according to the rules of origin of countries of importation;  

c) As for exports and imports eligible for the tariff preferences or non-tariff preferences under treaties to which the Socialist Republic of Vietnam has signed or acceded, their origin shall be identified according to Vietnam's legal documents on guidelines for the rules of origin provided for in the above-said treaties.  

2. General rules

Goods, of which the origin is identified under the guidance of this Circular, shall be regarded as originating from a country or a territory where the last processing operation which substantially transforms such goods has been carried out.

II. METHODS OF IDENTIFYING ORIGIN OF GOODS

1. "Change in tariff classification of goods" criterion

a) "Change in tariff classification of goods" means a change in four-digit HS heading of a goods as compared with the HS heading of materials not originating from the country of production (including imported materials and materials of unidentifiable origin) used for the production of such goods;

b) Four-digit HS headings of goods mentioned at Point a, Clause 1, Section II of this Circular shall be identified according to current regulations.

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a) "Ad valorem percentage" means the proportion of an added value obtained after a country or a territory produces, manufactures or processes materials not originating from such country or territory to the total value of produced goods;

b) The above-said added value must account for at least 30% of the value of produced goods and be expressed according to the following formula:

FOB price - price of materials not originating from the country or territory of production 

 _________________________________________________________________     x 100% ≥ 30%

                                                  FOB price

c) "Materials not originating from the country or territory of production" include materials originating from another country or territory and materials of unidentifiable origin;

d) "Price of materials not originating from the country or territory of production" means the CIF price of directly imported materials (for materials originating from another country or territory) or the price at the time of purchase stated in value added invoices (for materials of unidentifiable origin) which are used for the production, manufacture or processing of ultimate products;

dd) "FOB price" means the price stated in the export contract and shall be calculated as follows:

- FOB price = Ex-workshop price + other costs;

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- "Ex-workshop price" = Production cost + profit;

- "Production cost" = Raw material and material cost + labor cost + distributed cost;

- "Raw material and material cost" covers expenses for purchase of raw materials and materials, their freight and insurance;

- "Labor cost" covers wages, bonuses and other welfare amounts related to the production process;

- "Distributed cost" covers:

+ Expenses for workshops related to the production process (insurance for workshops, expenses for rent and hire-purchase of factory, depreciation of workshops, repair, maintenance, taxes and collateral interest);

+ Hire-purchase amounts and interests thereon for the factory and equipment;

+ Factory security charge;

+ Insurance (factory, equipment and supplies used in the production of goods);

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+ Expenses for research, development, designing and manufacture;

+ Expenses for pressing molds, casting molds, equipping of tools and depreciation, maintenance and repair of the factory and equipment;

+ Patent royalties (in relation to patented machines or patented inventions used in the production of goods or goods production licenses);

+ Expenses for testing and experimental use of raw materials, materials and products;

+ Charge for storage in the factory;

+ Expenses for waste treatment;

+ Expenditure factors in the calculation of value of raw materials and materials, such as port dues, cargo clearance fee and import tax on taxable components.

3. "Manufacturing or processing operation" criterion

"Manufacturing or processing operation" criterion means a main production process in which basic characteristics of a goods are created.

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a) Issue the Appendix on amendments to the Appendix stipulated in the Circular No. 08/2006/TT-BTM. Those goods which are not included in the Appendix hereof, but included in the Appendix of the Circular No. 08/2006/TT-BTM shall continue to be governed by the Circular No. 08/2006/TT-BTM;

b) Manufactured goods which are not covered by the Appendix issued together with the Circular No. 08/2006/TT-BTM and this Circular shall conform to the “Change of tariff classification” criterion. Where manufactured goods are classified by HS codes which are the same as those of non-originating raw materials, these goods are still recognized as originating from the country or territory of production where the last processing operation is carried out which substantially transforms such goods has been carried out provided that the ratio of the value portion of raw materials of no origin (based on value specified on the import agreement), which have the said same HS codes, and value of exported goods (based on the FOB price), does not exceed 15% (fifteen percent).

III. IMPLEMENTATION[3]

1. Implementation

This Circular comes into force 15 days after its publication in Official Gazette. Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Trade at the following address:

The Import and Export Department affiliated to the Trade Ministry

21 Ngo Quyen Street, Hanoi

Telephone: 04-8262538

Fax: 04-8264696

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CERTIFICATION OF CONSOLIDATED DOCUMENT
MINISTER




Vu Huy Hoang

[1] Circular No. 10/2006/TT-BTM dated June 1, 2006 of Minister of Commerce (currently Ministry of Industry and Trade) on amendments to Circular No. 08/2006/TT-BTM on guidelines for identification of origin of exports and imports which are not wholly obtained prescribed in the Government's Decree No. 19/2006/ND-CP dated February 20, 2006 on guidelines for the Law on Commerce regarding origin of goods, has bases for promulgation as follows:

“Pursuant to the Government's Decree No. 29/2004/ND-CP dated January 16, 2004 defining the functions, tasks, entitlements and organizational structure of the Ministry of Trade;

Pursuant to Government's Decree No. 19/2006/ND-CP dated February 20, 2006 on guidelines for the Law on Commerce regarding origin of goods;

The Ministry of Trade makes amendments to certain regulations in Circular No. 08/2006/TT-BTM dated April 17, 2006 in terms of guidelines for identification of origin of imports and exports which are not wholly obtained as follows:”

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[3] Clause 2 of Circular No. 10/2006/TT-BTM dated June 1, 2006 of Minister of Commerce (currently Ministry of Industry and Trade) on amendments to Circular No. 08/2006/TT-BTM on guidelines for identification of origin of exports and imports which are not wholly obtained prescribed in the Government's Decree No. 19/2006/ND-CP dated February 20, 2006 on guidelines for the Law on Commerce regarding origin of goods, coming into force as of May 14, 2006, stipulates as follows:

“Article 2. Implementation

This Circular comes into force 15 days after its publication in Official Gazette./.”

Văn bản hợp nhất 06/VBHN-BCT năm 2014 hợp nhất Thông tư hướng dẫn cách xác định xuất xứ đối với hàng hóa xuất, nhập khẩu có xuất xứ không thuần túy theo Nghị định 19/2006/NĐ-CP hướng dẫn Luật Thương mại về xuất xứ hàng hóa do Bộ Công thương ban hành