Goods exported from Vietnam would be applied with the C/O mechanism. (Photo: VNA)Hanoi (VNA) - The Ministry of Industry and Trade has issuedCircular No 03/2019/TT-BCT stipulating the certificates of origin (C/O) rulesin the Comprehensive and Progressive Agreement for Trans-Pacific Partnership(CPTPP).
According to the ministry’s Import-Export Department, the CPTPP has somedifferences compared to other Free Trade Agreements (FTAs) which Vietnam hassigned including the rule of origin of goods and rules of origin of refurbishedand recycled goods.
The C/O form issued to Vietnam’s exported goods including the minimuminformation required by the CPTPP was also issued alongside the circular that will take effect from March 8, 2019.
Regarding the mechanism for certification of origin, goods exported from Vietnamwould be applied with the C/O mechanism by agencies and organisationsauthorised by the ministry. The transition time to implement the mechanism ofexporters eligible for self-certification of goods origin is carried out from 5to10 years under the ministry’s guidance. The mechanism of Vietnamese importerscertifying their origin is implemented after 5 years from the effective date ofthe CPTPP.
For Vietnamese goods exported before the effective date of this circular,C/O-granting agencies and organisations shall consider granting C/O forms toenjoy tariff preferences under the agreement and regulations of importingmember countries.
Only when the origin requirements are met can Vietnamese products be exportedto new markets to enjoy preferential tariffs. This is a strict rule of originto prevent countries that are not members of the agreement from takingadvantage of tax incentives. Notably, the CPTPP is the only agreement Vietnamparticipates in a stand-alone textile chapter that is not in common with anyother chapter.
Truong Van Cam, Secretary General of the Vietnam Textile and Apparel Association (VITAS),said the biggest obstacle for the garment and textile sector was that Vietnamhas not produced fabric.
Rules of origin for yarns in the CPTTP have hit the industry bottleneck. Vietnamstill has to import nearly 99 percent cotton, 1.3 million tonnes of fiber and80 percent fabric.
Vietnam has advantages in the sector. However, it is mainly outsourcing.Currently, some localities have returned to textile and garments, especiallydyeing. But many projects of reputable and fully qualified investors are notlicensed. Therefore, the Government needs to have planning on industrial parksand waste water treatment to facilitate businesses in the sector.-VNA
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