The "bottleneck" of self-certification of origin

Empowering enterprises to self-certify origin (TCNXX) of goods is the way that many countries in the world have applied. However, the pilot mechanism is currently underway, and enforcement is still in place.

When self-certification of origin, enterprises need qualified staff, knowledge. Illustration

Business is not confident

According to Bui Kim Thuy, deputy head of the Department of Origin, Department of Export and Import (Ministry of Industry and Trade), C/O helps determine eligible imports to enjoy preferential tariffs. "We are happy to say that C/O is like a passport for a business to go abroad, which is the most important legal basis for foreign customs to know where the goods come from, to meet the criteria. Design for this agreement and how much tariffs to enjoy, "he asserted.

Thus, C/O is quite important issues that businesses must know, have the understanding to take advantage. Recognizing the importance of C/O, most countries in the world have adopted self certification of origin, ie empowering businesses to prove their origin to goods. deals. Mr Brian Staples, EU-Mutrap project expert, said that the application of self-certification mechanisms is and will be an indispensable trend in the negotiation of some new generation FTAs. Therefore, in the future, this mechanism will be widely applied in Vietnam as the partners that Vietnam has and are negotiating FTAs are using this mechanism, "said Brian Staples.

Meanwhile, Vietnam is following in this regard, currently only implementing the self-certification mechanism of origin under Circular 28/2015/TT-BCT. And after many self-certification courses of origin organized by the Ministry of Industry and Trade, so far the Ministry has just issued a certificate of self-certification for Vietnam Dairy Products Joint Stock Company (Vinamilk), while other countries ASEAN countries such as Thailand, Laos, the Philippines and Indonesia have given businesses a lot.

Why so? Tran Thanh Hai, deputy head of the import-export department, said that the biggest difficulty of self certification of origin is turnover. Under the provisions of Circular 28, enterprises must achieve a turnover of at least USD 10 million, with a good observance of laws, especially tax, customs, import and export; Having a competent apparatus by self-certifying that the enterprise is acting on its own behalf. If the staff of the business does not grasp the problem, the necessary provisions leading to false certification, not only affect the business but also affect the country.

Not only that, the lack of confidence of enterprises when implementing self-certification mechanism is also a problem "obstruction". Although aware of the outstanding advantages of this mechanism, enterprises still feel anxious, not confidence in the application of self-certification of origin due to the responsibility of enterprises after customs clearance of goods will be heavier. . Especially when countries always apply the mechanism of "re-excavating C/O, in other words, they implement post-inspection mechanism.

What to do to be empowered?

The core of the self-certification mechanism of origin is empowering businesses, but how do businesses have to get this right? According to Claudio Dordi, Team Leader of the Multilateral Trade Assistance Project, in order to be able to undertake self-certification of origin, businesses must understand very well all the sources they use to produce. Their products, knowing the information of these sources, Vietnamese enterprises are responsible for all the sources they use to produce their goods. This means that the business should be responsible for verifying the source of the material for the production of the goods. "This is very important when exporting to other countries, because when exports are problematic, the importing country will analyze the data we provide. We have to make sure that the data provided is clear, transparent and does not hide any information, "Claudio Dordi said.

Then, Mr. Claudio said that in order to participate in self-certification of origin, the enterprise should have an internal organization structure, there is a system established to ensure self-certification of origin effectively. Previously, want to be granted C/O business to Customs or Vietnam Chamber of Commerce and Industry (VCCI) to apply. At that time, the responsibility of the Government agency, but when self-certification of origin, the responsibility belongs to the enterprise.

Concurrent with this view, Bui Kim Thuy said, the fundamental difference of the self-certification mechanism of origin and the mechanism of issuing certificates of origin C/O goods today is with C/O for The statue is a commodity, and self-certifying the origin of the object is human - The government entrusts the belief to the business. "Self-certification of origin is to focus on human production, export of goods. Therefore, enterprises must have capable and knowledgeable staffs who have better skills than C/O officers in order to master the whole process of C/O certification via internet, "Thuy emphasized.

From the above analysis, it can be seen that rules of origin are technical barriers. If enterprises do not know, this is the biggest difficulty that enterprises have to face. Therefore, in order to help businesses take advantage of the benefits that the FTA brings through the self-certification mechanism, Hai said the ministry is urgently revising Decree 19 Origin - the basis of rules of origin, which expects to remove the issue of content of origin, paperwork procedures; Implement electronic declaration of C/O via internet ...

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