What is the origin of the goods?? What are the regulations on origin of goods?? Join Cuong Quoc Logistics to find out details through sharing below.

What is the origin of the goods??

What is the origin of the goods?? Pursuant to the 2017 Law on Foreign Trade Management and Clause 1, Article 3 of Decree 31/2018/ND-CP, Origin of goods is specified as follows:

Origin of goods is country, water group, or the territory where all the goods are produced or where the final substantial processing of the goods is carried out in the case of multiple countries, water group, or the territory participating in the production of that good.

Accordingly, Origin of goods is the origin of any product/goods.

If international specialization leads to goods being produced in many countries, through many processing stages, The nationality of the goods is determined by the place where the goods were produced, processing, processing or assembly and meeting certain standards in accordance with trade agreements between countries, economic block, regions or territories.

After learning what the concept of Origin of goods is, Cuong Quoc Logistics would like to invite readers to continue following information related to the origin of goods and rules of origin of goods through the following content..

Distinguishing the origin of goods and place of production

Although it is a quite familiar term, However, Not everyone knows that the origin of goods and the place of production of goods are two completely different concepts. During the implementation of Logistics operations, You need to clearly distinguish these two concepts.

Criterion	Origin of goods	Place of production
Concept	It's water, group of countries or territories where all goods are produced or where the final processing of goods is performed	Production area only, process that product, considered by consumers as the origin of the product
Nature	Certifying the place of origin of goods to enjoy preferential tariffs	Provide information to consumers about where goods are produced
Legal value	Issued with a Certificate of Origin.– Required to be written on the product label (according to Clause 1, Article 10 of Decree 43/2017/ND-CP)	No legal value, only has commercial value to confirm the place of production of goods to attract consumers

Why must there be rules on origin of goods??

Rules of origin of goods

Based on the provisions in Article 3 of Decree No. 31/2018/ND-CP, The rules of origin of goods are divided into preferential rules of origin & non-preferential rules of origin:

• Preferential rules of origin: Applies to goods with commitments or agreements on tariff preferences and non-tariff preferences.
• Non-preferential rules of origin: Applicable to goods without commitments or agreements on tariff preferences and non-tariff preferences. In case of applying non-preferential trade measures on most favored nation treatment, anti-dumping, anti-subsidy, self defense, quantitative restrictions or tariff quotas, Government procurement and trade statistics.

1. Preferential rules of origin

One is, rules of origin of goods according to international treaties

Determination of origin of exported goods, Imported goods to enjoy preferential tariff and non-tariff regimes are applied according to international treaties that Vietnam has signed or acceded to and according to regulations of the Ministry of Industry and Trade guiding such international treaties..

Two, rules of origin of goods under the universal preferential tariff regime and other unilateral preferences

Determining the origin of exported goods to enjoy universal preferential tariff regimes (GSP) and other unilateral incentives will be implemented according to the importing country's rules of origin for these incentives and according to the regulations of the Ministry of Industry and Trade guiding those rules of origin..

This type of rule is known as a one-way rule of origin, because the importing country voluntarily grants GSP preferences to developing or underdeveloped countries.

Including Vietnam. Our country's exported goods meet the rules of origin set by EU countries, Japan, Türkiye, etc. regulates and is issued Certificate of Origin form A or some other unilateral Certificate of Origin, which will enjoy GSP tax when imported into these countries..

Third, types of preferential certificates of origin

• C/O form A: is a Certificate of Origin issued for Vietnamese products exported to other countries, Territories granting Vietnam the GSP universal preferential tariff regime (Generalized System of Preferences).
• C/O form D: is a Certificate of Origin issued to products traded between ASEAN member countries to enjoy incentives under the ATIGA Agreement..
• C/O form E: Framework Agreement on Comprehensive Economic Cooperation between the Association of Southeast Asian Nations (ASEAN) and the People's Republic of China (ACFTA).
• C/O form AK: Framework Agreement on Comprehensive Economic Cooperation among the Association of Southeast Asian Nations (ASEAN) and the Government of the Republic of Korea (AKFTA).
• CO sample AJ: Comprehensive Economic Partnership Agreement between the Association of Southeast Asian Nations (ASEAN) and the Japanese Government (AJFTA).
• C/O form AANZ: ASEAN Australia New Zealand Free Trade Agreement (AANZFTA).
• C/O form AI: ASEAN-India Free Trade Agreement (AIFTA).
• C/O form EAV: Vietnam-Eurasian Economic Alliance free trade agreement.
• C/O form VC: Vietnam Chile Free Trade Agreement.
• C/O form KV/VK: Vietnam Korea Free Trade Agreement.
• C/O form JV/VJ: Vietnam Economic Partnership Agreement – Japan.
• C/O form S – Laos: Vietnam Economic Cooperation Agreement – Laos
• C/O form S/X – Cambodia: Vietnam - Cambodia Economic Cooperation Agreement

Four is, Origin criteria for preferential goods

Goods that meet one of the following basic origin criteria depending on the regulations of each FTA are considered to originate from that FTA.:

• Goods that are wholly obtained or produced entirely in the territory of one or more member countries (WO or block WO).
• Goods of non-pure origin or not produced entirely in the territory of the exporting member country, but meets the general criteria or the Item Specific Rules category (Non-WO).
• Goods produced entirely in the territory of the exporting member country only from materials originating in one or more FTA member countries (PE).

Five is, bilateral agreements, multilateral

• Unilateral agreement (GSP);
• Bilateral agreement (VJEPA, VCFTA, CPTPP…);
• Multilateral agreement (AT LEAST, ASEAN +, FTAs).

2. Non-preferential rules of origin

Vietnam's non-preferential rules of origin regulations, specifically on goods of pure origin, goods of impure origin, Simple processing steps, De minimis ratio, Indirect factors…

For goods of impure origin, List of specific rules for each product according to each HS line 6 numbers of 97 Chapters in the Tariff Schedule are specified in Appendix I issued with Circular No. 05/2018/TT-BCT dated April 3, 2018 of the Ministry of Industry and Trade regulating the origin of goods (Hereinafter referred to as Circular No. 05/2018/TT-BCT).

Goods of traders exporting from Vietnam that meet the origin criteria specified in this Appendix and the non-preferential rules of origin of Decree No. 31/2018/ND-CP will be issued a non-preferential Certificate of Origin, also known as Vietnam's C/O form B..

Why must there be rules of origin of goods??

To promote commercial activities, Countries have formed groups, free trade area in the form of cutting, Reduce taxes on goods originating from member countries.

Therefore, rules on origin of goods were introduced, Ensure the rights of goods and the unit of origin of goods.

• Helps countries enjoy corresponding preferential tariff benefits in the region.
• Through ROO, agencies may apply trade measures. Prevent dumping, countervailing tax, self-defense measures,…
• Support trade statistics activities of state agencies.
• Enforce legal regulations on labels and labeling of goods.
• Serving government procurement activities in accordance with national and international laws.
• Control import and export goods, ensure the interests of member countries. Simultaneously, Prevent goods from countries that are not in the FTA area but still enjoy preferential tax benefits.

Goods are of Made in Vietnam origin

Pursuant to Decree 31/2018/ND-CP on guiding the Law on Foreign Trade Management on the origin of goods is the basis for determining "goods originating in Vietnam", be granted a Certificate of Origin (C/O) or documents self-certifying the origin of Vietnamese goods to enjoy tariff or non-tariff incentives when exporting to markets where Vietnam has international commitments.

Therefore, origin goods “Made in Vietnam” can be understood in many ways such as::

• Goods originating in Vietnam to enjoy preferential tariffs according to international economic integration commitments;
• Goods are manufactured in Vietnam;
• Vietnamese branded goods.

For the case “Goods are manufactured in Vietnam”, Article 9 of Decree 31 stipulates that the processing stage, following processing when carried out separately or in combination, considered simple and not considered when determining the origin of goods in a country, water group, or territories:

• The work of preserving goods during transportation and storage (ventilation, spread, drying, refrigerant, soak in salt, Sulfur fumigation or adding other additives, removal of damaged parts and similar work);
• Tasks such as dusting, screening, choose, classify (including stacking) clean, paint, divided into Parts;
• Change packaging and disassemble or reassemble shipments; bottled, go, pack, bao, boxes and other simple packaging jobs;
• Stick labels on products or product packaging, label, marks or similar distinguishing signs;
• Simple mixing of products, whether of the same type or of a different type;
• Simple assembly of product parts to create a complete product.

For the case “Vietnamese branded goods”, We can think of the regulations on geographical indications mentioned in the Intellectual Property Law:

• Products bearing geographical indications have geographical origin from the region, local, the territory or country corresponding to the geographical indication;
• Products carrying reputable geographical indications, a quality or characteristic due mainly to the geographical conditions of the area, local, decided by the territory or country corresponding to that geographical indication.

Conclude

Above is all the information related to the origin of goods and regulations on origin of goods.

Thank you readers for your attention! If you need to answer questions related to Logistics, please contact Cuong Quoc via website or hotline: 0972 66 71 66.

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Cuong Quoc Freight Forwarding Company Limited

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Hotline: 0972 66 71 66

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