A Certificate of Origin (C/O) is essential when conducting business in Vietnam since it is the foundation for imposing taxes and other trade restrictions. The certificate specifies the manufacturing or production location of the items in question. And armed with such knowledge, traders are obligated to adhere to all laws, administrative regulations, and trade agreements based on the country of origin of the goods.
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Overview of Certificate of Origin in Vietnam
According to FTAs negotiated between Vietnam and other nations, a notarized certificate of origin in Vietnam may drastically lower product duties or taxes, enabling importers to take advantage of specific tax advantages or other preferential treatments. However, a valid certificate of origin issued in Vietnam may be used to prevent international imports from certain restricted nations.
A certificate of origin is typically required. However, the commercial or sales invoice already includes the origin country details. The Ministry of Industry and Trade of Vietnam or the Chamber of Industry and Commerce can provide foreign investors or companies in Vietnam with the certificate of origin. This kind of certificate is also available from other recognized institutions or organizations. Below is the form of Certificate of Origin in Vietnam:
Read More: The Definitive Guide to Vietnam’s 16 Active Free Trade Agreements
Procedure for Applying for a Certificate of Origin in Vietnam
All business owners must take the actions listed below to get a certificate of origin:
Essential Checklist to Review Before Application
- Identify the origin and applicable regulations for your goods
- Understand the item’s Harmonized System (HS) code
- Analyze the free trade agreement with the importing country and any associated taxes
- Compare tax rates to select the best tax incentive format
- Verify product compliance with the importing nation’s legislation and check if they are permitted
First-Time Traders: Required Business Documents for Certificate of Origin Application
If you are a trader making a first-time application for a Certificate of Origin, you have to:
Step 1: Register the trader’s profile with the organization or agency issuing the Certificate of Origin. The trader’s shape must be legitimate and complete for issuing the Certificate of Origin
The trader profile includes: Article 13.1 Decree 31/2018/NĐ-CP (www.ecosys.gov.vn)
How to submit: Article 13.2 Decree 31/2018/NĐ-CP
The Ministry of Industry and Trade encourages business owners to create e-trader profiles for streamlined operations. Businesses have two options for application: they can apply online at www.ecosys.gov.vn or opt for offline submission, either by directly visiting the relevant office or through postal mail. If setting up an e-trader profile is not feasible, traders have the alternative to submit their dossier in person at the office or organization responsible for issuing the Certificate of Origin.
- (Online) Once submitted, the local Import-Export Management Department will review and approve the trader’s profile within 24 hours. Following this approval, the company can then proceed to submit the second step of the application process.
- (Offline) While there is no specific legal timeframe for processing offline submissions, it is generally understood that this method takes longer compared to online submissions. This delay is due to the various stages involved, such as mailing the application, the receiving stage at the agencies, and the subsequent transfer to relevant departments.
According to Decree 31/2018/NĐ-CP, any changes in the trader’s profile must be updated at www.ecosys.gov.vn or notified to the agency or organization issuing the Certificate of Origin where it has registered before applying for a C/O. Without changes, the trader profile must still be updated every two years.
Step 2: Request for issuance of C/O (Certificate of Origin)
Article 15 Decree 31/2018/NĐ-CP outlines the following details regarding the Certificate of Origin (C/O):
- Validity Period: The C/O is valid for 12 months from the date of its issuance.
- Submission Methods: Applicants have the option to submit their C/O applications either online or offline. For offline submissions, they can send their application directly to the concerned office or via postal mail.
- Processing Time: As per the legal stipulations, receiving a physical (paper) certificate takes about eight working hours when submitted in person. If the certificate is sent via postal mail, it typically takes around 24 hours for delivery.
Submitting New Certificate of Origin Application Dossiers as Per Article 15 Decree 31/2018/NĐ-CP
If a trader is requesting a Certificate of Origin (C/O) for the first time, for goods that have already been initially exported, or for changeable goods (items that may undergo changes in quantity norms, weight norms, HS codes, value, or supply of input or output materials with each C/O issuance), the application must include the following information:
- A fully filled-out application for the issuance of a C/O using Form No.04
- A sample C/O completed and filled
- An export customs declaration on paper. A copy of the customs declaration is optional if the exported goods are exempt from customs
- A copy of a transport document that is similar to a bill of lading and has been verified by the trade as a true copy of the original if the trader is missing that document.
- A thorough list of exploited products that meet the non-preferential origin standards or preferential origin regulations using the form required by the Ministry of Industry and Trade.
- If the original materials are utilized in a later step to create another good, a declaration of origin must be supplied by the maker or supplier using the form recommended by the Ministry of Industry and Trade
- A suitable manufacturing process copy (certified by the trader as a replica of the original)
- The issuing authority may request that the applicant submit copies of the following documents (each authenticated by the trader as a replica of the originals)*
(*) Note: If an applicant hasn’t yet submitted all the required documents, they can still do so within 15 working days after the Certificate of Origin (C/O) is issued. However, if the applicant doesn’t provide the additional documents within these 15 days, the issuing authority will cancel the C/O. Also, if the issuing authority has doubts about the authenticity of the documents submitted for the C/O, they can ask the applicant to provide the original documents for verification. The issuing authority will consider issuing a C/O for goods stored in bonded warehouses in Vietnam that are to be shipped to countries with which Vietnam has trade agreements.
- A duplicate of a bonded warehouse entry or discharge with the customs authority’s certification confirming the arrival of the goods at the export checkpoint (stamped by the trader as a replica of the original)
- A document of the agreement or designation made by a Vietnamese trader to deliver a shipment to the importer in a nation, group of nations, or region mentioned in an international treaty Vietnam has ratified (stamped as a true copy of the original by the trader).
- Suppose the goods qualify for the preferential rules of origin. In that case, the issuing authority may consider issuing C/O to exported goods and imported goods of exporting and processing enterprises, processing and exporting zones, bonded warehouses, free trade zones, and other separate customs zones maintaining export or import relationships with domestic zones.
Reissuing a Certificate of Origin in Case of Loss or Expiry
Case 1: Lost, misplaced, or damaged documents outlined in Article 18.1 of Decree 31/2018/NĐ-CP
- Submit a Re-issuance Application: This should include a detailed explanation for the need to reissue the Certificate of Origin. The justification should clearly outline the reasons such as loss, expiry, or damage of the original document.
- Requirements for the Reissued Certificate: The reissued Certificate of Origin must be clearly marked with “CERTIFIED TRUE COPY”. It should also reference the number and date of issue of the original Certificate of Origin that was lost, expired, or damaged.
- Processing Timeframe: The processing of the application for a reissued C/O will take approximately 4 working hours, starting from the time the application is received.
- Validity Period: The validity of the reissued Certificate of Origin is capped at one year from the date it is delivered.
Case 2: Expired CO outlined in Article 15.2 of Decree 31/2018/NĐ-CP
- Application form
- Fully-filled certificate of origin copies
- Receipts and note cards
- Old certificate of origin
- Other documents as proof of reasons for the re-issuance of the certificate
Declare the certificate of origin online outline in Article 16 Decree 31/2018/NĐ-CP
Traders can submit application dossiers for Certificates of Origin using the electronic forms found on the websites of the agencies and organizations that issue Certificates of Origin, including:
Step 1: Assess the issuing authority’s website designated by the Ministry of Industry and Trade at www.ecosys.gov.vn or another location.
Step 2: You could select either of these two possibilities:
- Option 1: Fill out the online application form in the system for electronic C/O issuing.
- Option 2: To the electronic C/O issuance system, attach an application for C/O issuance. The digital signature provided by the appropriate authority must certify these documents. The issuing officer does not require that you present tangible copies of these documents.
Issuance of Certificate of Origin upon Application Approval
Duration:
The issuing authority must notify the applicant of the system’s processing outcome within six working hours when an appropriate and legitimate electronic application is submitted.
The issuing authority must provide the applicant with a hardcopy of the processing outcome within two working hours of receiving a correctly completed and valid application for the issue of a C/O and a hardcopy of the C/O.
Entire process:
- Submit online: faster, less than three working days. Through the postal
- Send direct documents: can take three working days.
Conclusion
A Certificate of Origin (C/O) is an essential document in international trade, especially for businesses engaging in exports from Vietnam. This certificate serves as a formal declaration of where a product is made and is crucial for determining the tariff and trade conditions under which goods are sent abroad. The importance of a C/O stems from its role in implementing taxes and trade measures that are part of Free Trade Agreements (FTAs) established between Vietnam and other countries.
These agreements often allow for reduced tariffs or other favorable trade terms, but to benefit from them, exporters must prove the origin of their goods – this is where the C/O becomes vital. It ensures that the benefits of FTAs, such as lowered tariffs, are correctly applied to goods that qualify, facilitating smoother and more cost-effective international trade.
In Vietnam, obtaining a Certificate of Origin is a straightforward process. You have the option to apply in person at a government office, where you can receive guidance and support from officials. Alternatively, for convenience and efficiency, you can also apply online through the government’s dedicated portal at http://www.ecosys.gov.vn. The online platform is designed to make the application process quicker and more accessible, allowing traders to submit necessary documents and information digitally.
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