What is a rejected C/O?

C/O was rejected is an agency situation custom do not accept Certificate of origin (Certificate of Origin) due to many different reasons, leading to businesses not enjoying tax incentives under free trade agreements (FTA). When C/O is rejected, shipment may be subject to MFN tax or normal import tax, At the same time, the risk of tax arrears arises, fines and storage costs, save container.

Common reasons why C/O is rejected

1. Wrong information on C/O

One of the most common causes is The information on the C/O does not match with commercial documents. Common errors:

• Invoice error compared to the number on the C/O.
• Wrong product name or the goods description does not match the invoice, packing list.
• Container error or bill of lading number (BL).
• Wrong HS code leading to mismatch of origin criteria.

2. Does not meet rules of origin

Each FTA agreement has its own rules of origin such as WO (Wholly Obtained), RVC (Regional Value Content), CTC (Change in Tariff Classification). If the goods do not respond these criteria, C/O can be rejected.

3. Submit C/O beyond the deadline

Some regulatory agreements C/O submission deadline after the goods arrive or after the declaration is registered. If the business submits late, Customs may refuse to accept C/O.

4. Customs suspects origin fraud

When there are unusual signs, Customs may require verification source, Physical inspection or temporary rejection of C/O until verification results are available.

Consequences when C/O is rejected

1. Loss of tax incentives

When C/O is rejected, business Do not enjoy preferential tax under FTA and must be applied MFN tax or regular tax, increases import costs.

2. Back taxes and fines

If the shipment has been previously cleared with preferential tax rates and then the C/O is rejected, businesses may suffer Collect the tax difference and bear late payment penalty.

3. Logistics costs arise

C/O rejection often results slow customs clearance, cause save container, Luu Bai, warehousing costs arise, container storage fee, and can affect the supply chain, delivery progress.

What should businesses do when C/O is rejected?

To handle promptly and minimize damage, Businesses should take the following steps:

Step 1 Determine the reason for customs clearance of C/O

• Check Notice from customs and Notes on the declaration to know exactly why it was rejected.

Step 2 Check the entire set of documents

• Compare C/O, Invoice, Packing List, Bill of Lading, contract to detect errors in information or missing documents.

Step 3 Work with the exporter

• Ask the supplier check and confirm information on C/O.
• Necessary, suggestion Reissue C/O or issue additional C/O.

Step 4 Apply for additional C/O or C/O issued later

• In many agreements, can ask C/O issued later (Retroactive C/O) or C/O replacement for additional payment to customs.

Step 5 Prepare an explanation letter to send to customs

• If the business believes that the C/O is valid, compose Explanatory letter Attach supporting documents to request customs to review and accept the C/O.

Sample letter of explanation when C/O is rejected

Here it is dispatch sample Reference that businesses can adjust according to actual situations. This form has been optimized for agency submission custom When C/O was rejected.

SOCIALIST REPUBLIC OF VIETNAM Independence – Free – Happy

Number: …/CV-GT V/v: Explanation of rejected C/O - Request for consideration

Dear: Provincial/City Customs Department … Unit: [Business name]

1. Business information

• Business name: [Full name]
• Tax code: [MST]
• Address: [Contact address]
• Contact person: [Name, phone, email]

2. Customs declaration information

• Declaration number: [Declaration number]
• Date of registration of declaration: [Day]
• Commodity name: [Short description]
• Bill of lading number / Container: [BL/Container Number]

3. Content of explanation Respectfully submitted to your agency, during the customs clearance process for the above shipment, Your agency has Uncle C/O do [State the reason for customs recording]. After review, We would like to explain as follows:

• Reason: [For example: Incorrect invoice number due to typographical error; Product names are different due to description; Missing HS code information].
• Detailed explanation: [Specific presentation, State relevant documents].
• Proof of origin: [Describe the basis for proving that the goods meet the rules of origin: contract, sales invoice, production documents, shipping documents, Original CO form A/FTA or later issued C/O].
• Corrective action: [For example: requested the exporter to re-issue C/O; Submit C/O issued later; additional documents].

4. Suggestion We respectfully request your agency to consider accept C/O Enclose additional and applicable documents preferential tax according to the agreement [agreement name] for the above mentioned shipment.

5. Attached profile

• Original C/O (or C/O issued later)
• Invoice; Packing List; Bill of Lading
• Sales contract
• Documents proving origin (if any)
• Minutes of working with exporters (if any)

Sincerely thank you.

Legal representative [Sign, stamp]

The application must be submitted with a written explanation

When sending dispatches, Businesses should fully prepare the following documents to increase the likelihood of acceptance:

• Original C/O or certified copy.
• Invoice; Packing List.
• Bill of Lading or sea/airway bill of lading.
• Sales contract between the two sides.
• Documents proving origin: Raw material purchase invoice, production documents, processing documents, Origin inspection record from competent authority (if any).
• Additional documents: Minutes of working with suppliers, email exchange, C/O issued later.

How to limit the risk of C/O being rejected

To minimize the risk C/O was rejected, businesses in the field import and export The following measures should be taken:

• Carefully check the C/O content before submitting: Compare invoice numbers, row name, HS code, bill of lading number.
• Compare with invoice and packing list to ensure uniform description of goods.
• Determine correct rules of origin according to each agreement and require suppliers to provide relevant documents.
• Work with reputable suppliers and has experience in issuing C/O for export markets.
• Use professional customs consulting services like Logistics power to review records, Consulting on rules of origin and assisting in preparing explanatory letters when needed.

Conclude

C/O was rejected is a common risk in operations import and export and may cause tax losses, logistics costs and corporate reputation. However, with timely processing — determine the cause, compare documents, Work with exporters, Please apply for C/O issued later and Prepare an explanation letter adequate — businesses still have a chance Customs review and minimize damage.

For businesses that need in-depth support on procedures and explanations, Cooperation with professional logistics and customs consulting units such as Logistics power will help shorten processing time and increase the likelihood of success when explaining to the agency custom.

Cuong Quoc Freight Forwarding Company Limited

Office: 7th floor, Parami Building, 140 Bach Dang, Tan Son Hoa Ward, Ho Chi Minh City

Hotline: 0972 66 71 66

Email: info@cql.com.vn

Website: https://cql.com.vn/