Origin inspection for goods, machinery and equipment

Vietnam and its ASEAN partners have participated in free trade agreements with major trading partners. Rules of origin determine whether goods meet the origin conditions under those agreements. ITVC Global offers origin inspection for goods, machinery and equipment.

1. What is the origin of goods?

Vietnam’s Commercial Law, effective from 1 January 2006, defines origin in terms of the country or territory where goods are wholly produced, or where their last substantial processing takes place when production involves more than one country or territory.

2. Why origin matters

Origin is an important consideration in imports, exports and international trade.

• For regulators, rules of origin are a tool for administering trade policy and applying the appropriate trade measures.
• For exporters, meeting the relevant origin requirements can support access to tariff and other trade preferences and improve competitiveness relative to goods that do not qualify.

Origin inspection helps establish an evidence-based origin assessment and reduce misunderstandings and disputes in international trade.

3. Certificates of origin and examples in the source

A certificate of origin (C/O) is documentary evidence identifying the origin of goods. The original article quoted Article 3 of Decree 19/2006/ND-CP. For an actual transaction, use the applicable legal framework and the rules of the relevant trade agreement; Decree 31/2018/ND-CP provides a later official reference on origin.

Decree 31/2018/ND-CP

• Form D: Preferential origin documentation for qualifying intra-ASEAN trade. The source traces its history to the CEPT agreement signed in Singapore on 28 January 1992 to establish AFTA, Vietnam’s participation on 15 December 1995 in Bangkok, and implementation from 1 January 1996. Current requirements must be checked under the applicable ASEAN arrangements.
• Form E: Preferential origin documentation associated with ASEAN–China trade. The source refers to the ASEAN–China goods-trade agreement signed in Laos on 29 November 2004 and implementation from 1 July 2005; the framework agreement itself was signed in 2002.
• Form AK: Preferential origin documentation associated with ASEAN–Korea trade. The source refers to the goods-trade agreement signed in Kuala Lumpur on 24 August 2006 and implementation from 1 June 2007; the framework agreement itself was signed in 2005.
• Form S: The source describes preferential origin documentation for Vietnam–Laos trade under the bilateral economic, cultural, scientific and technical cooperation arrangements. Confirm the documentary requirements applicable to the shipment.

4. Country of manufacture and country of origin

A product may contain materials and components made in several countries. Its origin is determined under the relevant origin rules, rather than simply listing every manufacturing location. Depending on the agreement and product, criteria may include wholly obtained status, value content, tariff classification changes or specified processing. A product-specific assessment is therefore necessary.

5. Issuing bodies and inspection organisations

C/O issuing bodies and inspection organisations have different roles. The source listed VCCI, industrial-zone and export-processing-zone management boards, and regional import–export offices. That historical list is not a current directory of authorised issuers. For each transaction, verify the competent issuing body and applicable rules. Inspection findings may support the origin dossier, but an inspection certificate does not replace a C/O or a decision by the authorised body.

The ICC verification platform can be used to check certificates issued through participating accredited chambers; it does not verify every C/O worldwide.

ICC certificate verification

Further information is available from the International Chamber of Commerce (ICC):

About ICC origin verification

6. Origin inspection process

ITVC Global provides origin inspection support. The product, destination, applicable origin rules and agreed inspection scope are reviewed for each assignment.

A typical inspection supporting an origin dossier may involve the following steps:

1. Collect information and documentation about the goods.
   • Export documents: invoice, contract, packing list and bill of lading. Where the invoice is on a CIF basis, insurance and freight invoices or contracts may be needed to establish the FOB value per unit.
   • Raw-material blending, manufacturing or assembly process information.
   • A breakdown of the quantities or proportions of input materials used in the product.
   • Documents establishing the value of non-ASEAN imported materials, including customs declarations, invoices, packing lists, bills of lading and contracts.
   • Appropriate origin documents for materials eligible for cumulation under the relevant arrangement, including the Forms D, E, AK or S examples in the source.
   • Invoices and documents supporting the value of materials of undetermined origin.

   Importers seeking preferential treatment should obtain the proof of origin required by the relevant agreement and verify that the goods and documents meet its conditions.

2. Inspect the goods and production process at the manufacturing site.
3. Assess origin against the applicable rules.
4. Photograph relevant evidence during the inspection.
5. Prepare the inspection report and issue the inspection certificate within the agreed scope.