Recently a circular stipulating the certificates of origin rules in the (CPTPP) Comprehensive and Progressive Agreement for Trans-Pacific Partnership were issues by the Vietnamese ministry of industry and trade. According to the ministry’s import-export department, CPTPP has various different clauses compared to other free trade agreements (FTAs) that Vietnam has signed.
The variations include clauses associated to rule of origin of goods and rules of origin of refurbished and recycled goods. The circular is expected to take effect from March 8, 2019.
Agencies and organizations given authority by the ministry will apply the C/O mechanism to the goods exported from Vietnam. The transition time to implement the mechanism of exporters eligible for self-certification of goods origin is carried out from 5 to10 years under the ministry’s guidance. The mechanism of Vietnamese importers certifying their origin is implemented after five years from the effective date of the CPTPP.
For Vietnamese merchandise exported before the effective date of this circular, C/O-granting agencies and organizations shall take into account granting C/O forms to enjoy tariff preferences under the agreement and rules of importing member countries. To enjoy the preferential tariffs Vietnamese products can only be exported to the new markets when the origin requirements are met. This is a strict rule of origin to prevent countries that are not members of the agreement from taking advantage of tax incentives.
CPTPP rules of origin for yarns are a big bottleneck for the industry. Vietnam still has to import nearly 99 pc cotton, 1.3 million tonnes of fiber and 80 pc fabric.
