Are you looking for ways to reduce the cost of exporting goods to India? CO form AI may be the solution you need. This Certificate of Origin can help your business enjoy preferential import tariffs, significantly reduce costs, and increase profits. Explore the following article to find out how your business can apply CO form AI and take advantage of its benefits.
What is CO form AI?
C/O form AI is a certificate of origin for goods exported from Vietnam to India and ASEAN countries under the AIFTA Agreement. This ASEAN-India multilateral free trade agreement was signed between ASEAN member states and India on August 13, 2023.
Goods that are granted C/O form AI certification when exported to India will enjoy tax incentives, helping to save significant costs for both importers and exporters.
In order for imported goods to enjoy preferential import tax from AIFTA, the following conditions must be met:
– Must be on the list of goods entitled to special preferential import tariffs under the agreement.
– Importing and exporting countries must be members of the AIFTA agreement, including Thailand, India, Brunei, Laos, Cambodia, Indonesia, the Philippines, Singapore, Vietnam, Malaysia and Myanmar.
– Goods must be transported directly from the exporting country.
– Must comply with regulations on certification of origin of goods according to the agreement, have C/O form AI.
Application for CO form AI
According to Article 6 of Circular No. 15/2010/TT-BCT, the dossier to apply for the Certificate of Origin of AI sample (CO AI sample) includes:
– An application for a certificate of origin of goods C/O form AI according to the prescribed form.
– The C/O form AI certificate of origin has been filled in with full information.
– The customs declaration has been completed.
– Commercial invoices.
– Bill of Lading.
– Other documents such as import customs declarations, production process explanation sheets, original packing lists, etc.
The process of issuing an AI sample certificate of origin
When you have fully prepared the dossier to apply for a C/O form AI, the process of issuing a certificate of origin of goods will be carried out according to the following steps:
Step 1:
Declare the first-time trader registration dossier to the Ministry of Industry and Trade or submit it directly at the head office of the C/O issuing organization.
Step 2:
Submit the application for C/O through the following methods:
- Online at the www.ecosys.gov.vn
- Directly at the head office of the C/O issuing organization where the trader’s dossier has been registered.
- Mail if travel is difficult.
Step 3: The
C/O issuing organization will check the validity and accuracy of the dossier, then respond with one of the following contents:
- C/O acceptance: Notification of the time to receive the certificate.
- Request for additional documents: A specific list of documents to be supplemented will be provided.
- Request to re-examine the dossier: Clearly state the information or content to be checked, enclosed with the grounds for authentication.
- Refusal to issue C/O: In case of detecting errors as prescribed in Article 21 of Decree No. 31/2018/ND-CP dated 08/3/2018 on management of origin of goods.
- Request for inspection of production facilities: Carry out in case of necessity.
Properly following the above process will help you get C/O quickly and efficiently.
How to declare on CO form AI?
Guidelines for declaration on the C/O form AI are specified in Appendix 6, enclosed with Circular No. 15/2010/TT-BCT dated April 15, 2010 of the Ministry of Industry and Trade, related to the implementation of the Rules of Origin in the ASEAN-India Agreement on Trade in Goods, Specifically, as follows:
The CO must be declared in English and typed (except for the case instructed in Clause 15 below). The declared contents must be consistent with the documents specified in Articles 5 and 6 of the circular. Specific contents of C/O declaration are as follows:
Box 1: Enter the exporter’s information including name, address, and country of export.
Box 2: Enter the recipient’s information including name and address. If the delivery address is not specified, fill in “TO ORDER” or “TO ORDER OF” in the declaration. This information must match the bill of lading and other relevant documents.
Box 3: Enter details of the mode and means of transport, including the flight number, trip code and name of the border gate of import.
Box 4: Enter information about the C/O issuing authority, including address, phone number and contact information.
Box 5: Notes on the C/O issuing authority, such as the notice on the copy when the original is lost, re-issuance of the C/O, etc.
Box 6: Enter the details of the goods, including the brand, quantity, and type of goods. Information about the number and date on the customs declaration should be clearly written. If the declarant is not the shipper, it is necessary to clearly state the information about the declarant.
Box 7: Declare the quantity and weight of raw goods.
Box 8: Declare the invoice number and date of issuance. If there is no invoice, specify the reason.
Box 9: Enter information about the place and time of issuance of the C/O.
Box 10: Enter information about the country of import of goods. Clearly state the name and date of signature of the competent person.
Box 11: Fill in the following information:
– First line: “VIETNAM”
– Second line: Name of the importing country
– Third line: Address of issuance, date/month/year of issuance and signature of the issuing agency or authorized person.
Box 12: The C/O declarant can usually leave this cell blank. In some cases, it is possible to write “ISSUED RETROACTIVELY” according to the provisions of Article 7, Clause 4, or “CERTIFIED TRUE COPY” according to Article 8.
Box 13: Check the boxes corresponding to “Third-Country Invoicing”, “Exhibition”, “Back to back C/O”.
Reasons why the authorities rejected the AI form C/O
In some cases, the authorities may refuse to issue a C/O form AI. The reason is often related to the information provided in the dossier not meeting the requirements. Therefore, when preparing documents and declaring information, you need to be very careful.
Here are some common reasons why the authorities refuse to issue a C/O form AI, which will help you pay more attention in the process of preparing documents:
– The application form for C/O AI form is incorrect.
– Debt documents from the previous C/O application have not been completed.
– Fraud issues in the previous C/O application process have not been resolved.
– Lack of necessary documents as prescribed.
– The information in the C/O application is inconsistent.
– Information declared in red ink, handwritten, or with erased characters.
– The origin of the exported goods cannot be proved.
Through this article, we have learned about CO form AI and its importance for exports. Hopefully, the information provided will help Vietnamese exporters gain more knowledge and confidence in the process of exploiting the Indian market
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