Self Certification of Origin: Challenges or Opportunities?

It is expected that after 2015, Vietnamese enterprises will implement self-certification of origin (CNXX) in intra-ASEAN trade and trade with countries that are members of some trade agreements. Is about to sign. However, many companies do not know clearly and fully about this mechanism as well as correctly understand the opportunities and challenges that the CNXX itself brings.

General development trend

Self-CNXX of goods is understood as the responsibility of certifying the origin of goods (C / O) will be transferred from specialized agencies, management agencies to enterprises or importers. That means that the importer or importer will itself carry out the procedures and satisfy the conditions for declaring the goods to meet the origin criteria and take self responsibility for the accuracy of the declaration. As for applying for a CNXX from the management agency as before. Currently, Vietnamese enterprises have three "gateways" to approach the CNXX itself. Firstly, according to the FTAs; The second is the general goal of ASEAN when the ASEAN Economic Community was established and the third is the EU's GSP. It also started to apply this mechanism from 2017 with the transition period. From 2017 to 2020.

To realize the goal of establishing the ASEAN Economic Community (AEC) by 2015, the Prime Minister approved the Resolution No. 68 / NQ-CP on September 10, 2014, whereby Vietnam officially joined The mechanism itself and CNXX are completing the formalities necessary to officially carry out. The self-reliant mechanism that Vietnam participates in is the No. 2 project with the mechanism of only manufacturers and exporters eligible to participate in the CNXX itself. As such, any business that only works on commercial can not participate in this project.

In addition to the mechanism of the CNXX itself when participating in the AEC, there are also a large number of FTAs ​​in FTAs ​​that Vietnam is preparing to sign. The Vietnam-EU, Vietnam-EFTA FTA (FTA between Vietnam and EFTA (including Iceland, Liechtenstein, Norway and Switzerland), TPP (Trans-Thai Strategic Economic Partnership Agreement Binh Duong) or FTA between Vietnam and Korea will be discussed after the Agreement is valid for 3 years.

Opportunity, challenge

According to Mr. Au Anh Tuan, Deputy Director General of the Department of Management Supervision (General Department of Customs), for exporters participating in pilot projects of self-industry, exporters register with competent authorities of exporting country to become Exporters are qualified on the basis of proving the ability to accurately determine the origin of export goods. The exporter will submit a commercial invoice displaying sufficient information on the origin of the goods to the customs office at the time of import in order to enjoy the preferences. The exporter will also have to carry out other procedures as prescribed and take responsibility before the law for the authenticity of the declaration of origin.

According to Bui Kim Thuy, deputy head of the Department of Origin, Department of Import and Export (Ministry of Industry and Trade), the self-certification mechanism, if applied, will allow traders to declare their origin. On the commercial invoice or any other document in lieu of the current CNXX. This will save time and money for businesses, facilitating trade and investment facilitation among countries. With this mechanism, enterprises do not have to apply for origin for each export shipment, but they can use the IPXX right to actively apply for export shipments in a certain period of time. Ms. Doan Thuy Hoa, representative of ABB Limited Liability Company, a company specializing in manufacturing electrical equipment and systems in Hanoi, also said that the self-industrial goods have many advantages, for example in the school If you do not have a self-certification license, you will be entitled to a debt and you will be able to pay tax immediately after that.

Self-learning CNXX theory will bring many benefits as well as opportunities for businesses. However, when talking to reporters, Tran Thi Thu Trang, director of the WTO Center (Vietnam Chamber of Commerce and Industry), said that demand for raw materials and testing mechanisms is difficult for Vietnamese businesses. It is expected that many enterprises still depend on Chinese materials and voucher systems that have not been properly implemented. One more example when Svein Gronlie, General Directorate of Norwegian Customs, said that the process of licensing for imports of EFTA is very strict. For the Norwegian self-issued CNXX license granted to the first time exporters enter this market only has a term of 2 years. By the end of the above period, if the company complies well, the license will be issued for a period of 5 years. At least once during the first two years of the challenge and twice in a five year period, the Norwegian local customs authority will control the exporters who are licensed, if found guilty, will be deprived of the license. According to Nestor Scherbey, consultant of the USIAD GIG Project, the CNXX mechanism has been implemented over 40 years in the world with more than 20 different models in different countries.

Can be seen, although new in Vietnam, but the CNXX system itself has become quite popular in the world. Along with the fact that a number of FTAs ​​that Vietnam is negotiating with its partners use this mechanism, the great possibility is that the mechanism will soon be applied in Vietnam in the future. So, now companies need to actively learn about the mechanism of self-CNXX to have the necessary preparations for the utilization of these FTAs ​​once signed.

Ms. Le Thi Hong Ngoc, Deputy Director of Customs Supervision Department, General Department of Customs:   For exporters participating in the self-certification pilot project, Trade to confirm that the goods meet the rules of origin in ATIGA. The exporter signs and writes the full name of the signatory on the invoice and is responsible before the law for the authenticity of the declaration of origin of goods.

Nestor Scherbey, Consultant for the USIAD GIG Project:   Under the North American Free Trade Agreement (NAFTA), US and Canadian importers must hold a CNXX when making a customs declaration, Although not presenting a C / O at this time, the importer must be prepared when the customs officer requests the declaration. Each shipment applying for NAFTA preferential treatment must have a Certificate and apply only to the goods covered by the Certificate. Certificates do not need to accompany each shipment but must be presented to the US Border Protection Agency upon request.

(Source: internet)

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