Ho Chi Minh City Customs Answers Questions About Tax Incentives

Answering SUMITOMO Technology Construction Joint Stock Company's problems regarding documents proving the origin of goods to enjoy special preferential import tax under the EVFTA Agreement, Ho Chi Minh City Customs Department guided, August 21, 2020 , the General Department of Customs issued Official Dispatch No. 5575/TCHQ-GSQL implementing the content of Official Dispatch No. 6123/BCT-XNK dated August 18, 2020 of the Ministry of Industry and Trade on the implementation of the EC's official announcement in Official Dispatch No. Ares (2020) 1982973. Accordingly, the European Union will apply the certification of origin mechanism as prescribed in Clause 1(c), Article 15 of Protocol 1 of the EVFTA Agreement.

Specifically, self-certification of origin according to the REX system (Registered Exporter System). This regulation is guided in Clause 1 (c), Article 19, Circular No. 11/2020/TT-BCT dated June 15, 2020 of the Minister of Industry and Trade stipulating Rules of Origin of Goods in the EVFTA Agreement . The EU also announced that it will not apply the origin certification mechanism specified in Clause 1 (a) and Clause 1 (b), Article 15, Protocol 1 of the EVFTA Agreement (guided in Clause 1 (a) ) and Clause 1 (b), Article 19, Circular No. 11/2020/TT-BCT).

Thus, in case an enterprise presents a certificate of origin form EUR.1 specified in Point a, Clause 1, Article 19 of Circular 11/2020/TT-BCT dated June 15, 2020, it is not eligible to receive Apply special preferential import tax rates under the EVFTA Agreement according to the official announcement of the European Union.

Regarding the form and content of self-certification documents of origin of EVFTA goods, Ho Chi Minh City Customs Department guides companies to study the regulations in Article 24 and Appendix VII of Circular 11/2020/TT-BCT dated June 15/ 2020 of the Ministry of Industry and Trade for implementation.

Also related to documents proving the origin of goods to enjoy special preferential import taxes under the EVFTA Agreement, FPT Food Process Technology Vietnam Co., Ltd. also encountered related problems. Ho Chi Minh City Customs Department provides guidance on self-certification of goods origin. On August 21, 2020, the General Department of Customs issued official dispatch No. 5575/TCHQ-GSQL implementing the content of official dispatch No. 61 23/BCT- Import and Export dated August 18, 2020 of the Ministry of Industry and Trade on granting incentives for shipments originating from the EU on the basis of self-certification documents of origin issued by exporters that have registered REX codes for shipment worth over 6,000 euros. Thus, self-certification documents of origin issued by exporters that have registered for EORI codes are not valid to enjoy incentives under the EVFTA Agreement.

Regarding the form and content of documents self-certifying the origin of EVFTA goods, the Company is requested to study the provisions in Article 24 and Appendix VII of Circular 11/2020/TT-BCT dated June 15, 2020 of the Ministry of Industry and Trade. Love to carry out.

Regarding the authority to self-certify origin, Ho Chi Minh City Customs Department guides, based on Clause 5, Article 3 of Circular 11/2020/TT-BTC dated June 15, 2020 stipulating: "Exporter" is an individual, organization headquartered in the exporting Member State, exporting goods to another Member State, capable of proving the origin of the goods. The exporter can be the manufacturer or the person who carries out export procedures. The exporter is not necessarily the seller but issues the invoice for the shipment (third party invoice). Sellers are allowed to locate in the territory of a non-EVFTA member country.

Besides, businesses can refer to point 2 of Official Dispatch 6464/TCHQ-GSQL dated November 5, 2020 of the General Department of Customs. Accordingly, EU exporters declare origin as "EU" or "European Union". The exporter did not declare origin by the name of a European country

Regarding late submission of documents certifying the origin of goods, based on the provisions in Point b, Article 3 of Circular 07/2021/TT-BTC dated January 25, 2021 of the Ministry of Finance, in cases where there is no certification document Origin of imported goods at the time of customs procedures to apply special preferential import tax rates according to the provisions of the EVFTA Agreement, customs declarants must declare late submission of documents certifying origin on the customs declaration form. Declare import customs and make additional declarations and submit documents certifying the origin of goods within no more than 2 years from the date of registration of the import customs declaration and within the validity period of the export certification document. land of goods.

In addition to the above problems, recently, Ho Chi Minh City Customs Department has also answered and guided businesses on many problems related to the implementation of new agreements, such as: Vietnam - United Kingdom Free Trade Agreement UK (UKVFTA); Regional Comprehensive Economic Partnership (RCEP); CPTPP...