Currently, one of the main imported goods into Vietnam is good from China. Many of them can be applied special preferential import tax rates according to the free trade agreement between ASEAN and China – ACFTA. Vietnam’s special preferential import tariff with the goods imported from China which have C/O Form E are implemented in Decree No. 153/2017/ND-CP dated December 27, 2017 of the Government in the period 2018 – 2022.
Legal documents related to Form E include the following main documents:
Decision no. 12/2007/QĐ-BTM of May 31, 2007, of the Ministry of Industry and Trade, Regulation on grant of certificates of origin – Form E, for enjoyment of preferences under the Agreement on Trade in Goods within the Framework Agreement on Comprehensive Economic Cooperation between the Association of Southeast Asian Nations and the People’s Republic of China.
Circular No. 36/2010/TT-BCT of November 15, 2010, of the Ministry of Industry and Trade on implementation of the amended rule on procedures for grant and inspection of origin and the rule specifying of commodities according to the 2007 version of the Agreement on Trade in Goods within the Framework Agreement on Comprehensive Economic Cooperation between the Association of Southeast Asian Nations and the People’s Republic of China
And documents guiding this Circular include: Circular No. 01/2011 / TT-BCT dated January 4, 2011 of the Ministry of Industry and Trade; Circular No. 37/2011 / TT-BCT dated 10/10/2011 of Ministry of Industry and Trade; Circular No. 14/2016 / TT-BCT dated August 5, 2016 of the Ministry of Industry and Trade; Circular No. 21/2014 / TT-BCT dated June 25, 2014 of the Ministry of Industry and Trade; Official Letter No. 2706/TCHQ-GSQL dated June 7, 2011 of the General Department of Customs; Official Letter No. 5802/TCHQ-GSQL dated November 18, 2011 of the General Department of Customs; Official Letter No. 113/XNK-XXHH dated March 4, 2014 of Ministry of Industry and Trade.
According to current regulations, you should attend to some points when you import goods in order to enjoy this special preferential import tax:
1. The importers have to submit the original C/O form E when they declare customs to enjoy special preferential import tax
You have to submit the original C/O form E that must be valid in order to enjoy the special preferential import tax from the Agreement on Trade in Goods between the ASEAN and China,
In case of urgently needed goods, you are unable to wait for C/O form E, when you declare customs, you have to declare on the declaration that you owe the original and have to pay MNF tax. Then you make tax refund procedures when you have the original C/O form E (within 30 days)
2. The person’s name in box 1
This is the most common error leading to C/O form E is rejected.
Situation: Due to specificity in China, in many cases, Chinese manufacturers have no export function, so they hire another company to ask for Form E who is named in box 1 Form E and manufacturer’name in box 7 Form E.
Current regulations on this problem are as follows:
According to Article 3 in the Official Dispatch No. 113 / XNK-XXHH dated March 4, 2014: “The person’s name in the box 1: “The contries agree that authorized person ask for C/O who is not showed as the munufacturer’s name in box 1 of C/O Form E. The exporter’s name in box 1 have to match to the name in commercial invoice, except for the third party invoicing.”
According to the Official Letter No. 5467 / TCHQ-GSQL dated September 16, 2016 of the General Department of Customs, the problem of writing the authorizing information on C/O form E: “The person’s name in the box 1 of the C/O form E is the exporter and also the issuer’s name of the invoice, except the invoice is issued by a third party ”
Thus, if the name in box 1 is not exporter, you have to mark in box “Third party invoicing”
However, accroding to current regulation of China (with our experiens during the past time): Chinese authorities only mark in “Third party invoicing” when the exporter is not a Chinese company.
Therefore, in the case that Vietnamese buyers work with Chinese sales partners who have no export functions and they can’t ask for C/O form E by themselves. So, they hire another company to ask for Form E who is named in box 1 Form E; manufacturer’s name in box 7 Form E and C/O form E will not be marked in “Third party invoicing” and then this C/O will be rejected in Vietnam.
3. In case of C/O form E has many goods, including goods that are not enjoyed the special preferential import tax
According to Point 3, Article 17, Annex 2, Circular No. 36/2010 / TT-BCT dated November 15, 2010 of the Ministry of Industry and Trade: In case of C/O form E has many goods, the problem for an good that will not affect or delay the application of preferential import tax and customs clearance for the remaining goods on the C/O form E. Point b, Clause 1, Article 18 will be applied to goods that have problems. Therefore, if there are many goods on your C/O form E in your shipment but there are some items that are not enjoyed the special preferential import tax, it will not affect other goods.
4. Transfer and validity of C/O form E
In some cases, the goods cannot be shipped directly from China to Vietnam, so they via a non-ACFTA country. About this transfer and enjoying the special preferential import tax, see this link: Is the transfer made C/O rejected?
You have to submit the original Form E, you will be enjoyed the special preferential import tax when you declare customs. If at this very moment, you don’t submit the original Form E, you have to pay MNF tax and make a note on the declaration as the good with Form E and debt claim. Within 30 days, you have to submit the original From E to the customs and complete the tax refund procedure.
For more information, please contact with us:
HP Global Company Limited
Freight forwarder and customs brokerage
Address: Room 2308, CT2 Van Khe, La Khe, Ha Dong, Ha Noi, Viet Nam
Website: hpgloballtd.com or hptoancau.com
Email: info@hpgloballtd.com
Phone: ++84 24 73008608/ Hotline: ++84 8 8611 5726
