Simplified C/O procedures enhance benefits of trade pacts

09:25 | 03/07/2019 Economy- Society

(VEN) - Tran Thanh Hai, deputy director of the Agency of Foreign Trade under the Ministry of Industry and Trade, said a certificate of origin (C/O) is an important document to help goods enjoy preferential tariffs under free trade agreements. Responding to this demand, Vietnam has simplified the C/O issuance procedures.

simplified co procedures enhance benefits of trade pacts

Accordingly, the Ministry of Industry and Trade has created favorable conditions for import-export firms to apply for preferential C/O issuance, saving cost and time.

Regarding preferential C/O issuers, the Ministry of Industry and Trade has asked to shorten the time for dossier checking and actual inspection of goods, and gradually change from pre-check to post-inspection forms. C/O issuance via the internet deals and processes about one million sets of C/O applications a year.

In an effort to reduce red tape, the Ministry of Industry and Trade has also conducted self-certification of goods origin under the ASEAN Trade in Goods Agreement (ATIGA). Accordingly, businesses that do not violate rules of origin regulations for two years or more and achieve an annual export value of at least US$10 million, are eligible for self-certification licenses.

According to statistics, export turnover of goods applying for preferential C/O in 2018 reached US$66.2 billion, accounting for 39 percent of total export turnover to FTA signatory markets, showing that Vietnamese companies have made good use of incentives provided by trade agreements. Also in 2018, C/O issuance agencies granted 942,371 sets of C/Os worth US$50.9 billion, an increase of 25 percent in number and 35 percent in value compared to a year ago.

Agencies and organizations authorized by the Ministry of Industry and Trade have also strengthened the granting of preferential C/Os under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Specifically, by the end of April 2019, they granted 1,872 sets of C/Os worth US$58.38 million. Sets of C/Os are mainly issued for goods exported to Canada, with the main items being footwear, garments and textiles, household goods, processed food, and furniture.

The Ministry of Industry and Trade will continue to simplify C/O issuance procedures, while strengthening measures

to fight origin fraud.

Bao Ngoc