C/O is a popular document in the import and export of goods and is an essential document for determining the origin of products from which the import and export enterprises may be entitled to tax preferential policies if such goods include in the list. List of goods eligible for trade agreements between the two importing and exporting countries. So, what are the characteristics of CO, and how do you get it? All the most essential content about CO will present in the following article.
- What is C/O?
C/O certificates of origin are documents issued by manufacturers or competent agencies. It used for certify places of production or exploitation of goods. In Vietnam, it usually was issued by the Vietnam Chamber of Commerce & Industry (VCCI).
- WHICH ORGANIZATION OR INDIVIDUAL ARE RIGHT TO ISSUED C/O?
In Vietnam, the agency competent to issue C/O is:
Vietnam Chamber of Commerce and Industry (VCCI).
Import-Export Management Department in provinces and cities.
- PURPOSE OF C/O
• Preferential tariffs: Determine the origin of goods to distinguish, which is the preferred import goods, and apply the preferential regime following trade agreements signed between countries.
• Application of anti-dumping and subsidy duties: In cases where a country’s products dumped in other countries’ markets, the determination of the origin is necessary.
• Trade statistics and maintenance of quotas: Determining the source makes it easier to compile trade statistics for a country or a region. On that basis, new trade bodies can maintain the quota system.
- CHARACTERISTICS OF C/O
the Certificate of Origin (C/O) has the following features:
-C/O issued for a specific export or import goods: that means C/O only granted for products participating in international circulation when information about the shipper or consignee is available. Information on goods packaging, quantity, weight, value, place of loading, place of discharge, even information about transportation. According to international practice, C/O may issue before or after the delivery date (loading date), but this must still reflect the specific export shipment. Pre-issuance often happens when the goods are in the process of completing customs procedures for export or have already gone through customs procedures, waiting for shipping.
-C/O certificates of origin determined according to a specific rule of origin, and the importing country must accept these rules: C/O is only meaningful when issued under a rule-specific recognise by the importing country. The acceptable regulation maybe the rules of origin of the importing country or the country, which issuing C/O (if the importing country has no other requirements). To reflect which rules of origin are issued, C/O usually specified for a name or type of sample.
- CONTENT OF C/O.
From the purpose and characteristics of C/O, the contents of C/O must show the following:
- Type of C/O: to show the C/O issued under a following specific Rules of Origin
- Name and address of exporter or importer.
- Criteria for transportation (name of means of transport, port, place of loading /discharge, bill of lading, etc.)
- Standards of goods (name of products, packages, labels of goods packing, weight, quantity, value, etc.)
- Standards of origin of goods (criteria determining the origin)
- Certification by the competent authority of the exporting country
Usually, C/O classified in the following two ways:
• Directly issued C/O: Directly released C/O by the country of origin, of which the country of origin may also be the exporting country.
• Back-to-back C/O: It is issued indirectly by the exporting state, which is not the origin country.
In principle, countries only issue certificates of origin for goods of their own. However, commercial practices show that products are not only exported directly to the final importing country (where the goods consumed) but can also export through intermediary countries. The appearance of intermediaries has many different reasons, possibly according to the manufacturer’s distribution network, or because the goods are bought and resold through intermediaries, etc. In this case, some countries have regulations on goods imported into their country. When exporting, they may granted back-to-back C/O.
According to Vietnam’s regulation: there are several special preferential C/O granted in the form of back-to-back C/O.
- CURRENT FORMS OF C/O APPLICABLE IN VIETNAM
C/O issued according to non-preferential rules of origin:
• C/O form B (issued for export goods)
• C/O for the coffee product (according to the regulations of the World Coffee Organization)
C/O published according to preferential rules of origin:
• C/O form A (granted to export goods to countries eligible for GSP universal tariff preferences)
• C/O form D (implementation of the CEPT-Common Effective Preferential Tariff Agreement between ASEAN countries);
• C/O form E (ASEAN – China);
• C/O form AK (ASEAN – Korea);
• C/O form S (VN-Laos; VN-Cambodia)
• C/O handicraft textiles (VN-EU)
- BENEFITS WHEN IMPORT PLYWOOD WITH APPROPRIATE C/O FORM
Before the importer received goods at the port, they have to pay import tax for this product. With the specific plywood product (Hs code 44109000), the preferential import tax rate is 5%. If the importer comes from a country or region which their government has trade agreements with Vietnam, also got the right C/O form from their seller, the import tax rate will significantly reduce even equal 0%
|Form E||Form D||Form AJ||Form AK||Form AI||Form A|
Import tax when you get C/O
You can research HS code Vietnam, export tax rate and ASEAN treatment at here (https://www.customs.gov.vn/SitePages/Tariff-Search.aspx?language=en-US ),