What you need to know about CO form D

Import and export of goods in Vietnam is on the verge of strong development. The concept of CO in general and CO form D in particular has become familiar to many people. So what does this document mean? What is the process for applying for a Form D CO certificate? Read the following article by HDG Logistics to better understand this issue.

co-form-d

What is CO form D? Concept of CO form D.

First, CO (Certificate of Origin) is a document confirming the origin of goods. C/O form D is a document for goods exported to ASEAN countries, allowing to enjoy tariff preferences under the CEPT agreement.

CO certification is issued under FTAs, multilateral or bilateral agreements.

When the importer has a C/O form D and presents it to customs, the goods will be exempt from import duty. Therefore, when exporting to ASEAN, the importer often requires the exporter to provide this document.

Based on Article 7 of Appendix I on the mechanism for certification of origin and inspection and verification of origin of goods issued together with Circular 10/2022/TT-BCT related to CO form D:

CO form D must be made in English, using A4 size white paper, in accordance with the standard form specified in Appendix II of Circular 10/2022/TT-BCT.

A set of CO consists of one original and two copies.

Each CO granted will carry a number of unique references provided by the CO issuing organization.

The CO must be signed and certified by the issuing organization. This signature and seal can be done manually or electronically. Member States have the right to accept electronic signatures and seals, depending on the laws of their countries. The original of the CO shall be sent by the exporter to the importer for submission to the customs office at the port or place of import of the member state. The second copy is kept by the exporting country’s CO-granting organization, and the third copy is retained by the Exporter.

Conditions for issuance of certificate of origin form D

Goods must satisfy the prescribed conditions to be granted a CO certificate form D:

The shipment must contain at least 40% of the product originating from ASEAN countries.
Goods need to be transported between ASEAN member states.
Goods can be transferred through countries that are not members of ASEAN, as long as they are not sold or consumed there. Violation will result in non-issuance of CO certificates.

Application for CO form D

To be issued a CO Form D from the authorities, you need to prepare all the following documents:

Copy of sea waybill
Original Commercial Invoice
Original packing slip
Copy of customs clearance declaration
Copy of explanation of the product production process from input materials
Copy of raw material norm table: % of raw material A, % of raw material B… in the shipment
A copy of the invoice for purchase and sale of domestic raw materials or the customs declaration for import of raw materials
Copies and originals of invoices for purchase and sale of export products for comparison
Application for CO issuance of the Ministry of Industry and Trade under the Rules of Origin in the ASEAN Trade in Goods Agreement
Other papers such as export licenses, purchase and sale contracts, official letters of commitment, export accessories or products and documents proving the origin of products. Depending on each item, the officer will guide the business to provide the necessary documents.

Enterprises need to declare online on the CO issuance system of the Ministry of Industry and Trade. After being approved online and receiving the CO code, the enterprise will print that code on the CO form.

Instructions for CO declaration form D for exported goods

C/O must be declared in English and typed. Specific contents of C/O declaration are as follows:

Box No. 1: Write the name of the exporter’s transaction, address, and the name of the exporting country (Vietnam).

Box 2: Fill in the name of the consignee, address, and the name of the country of import.

Top right box: Write the reference number provided by the C/O issuing agency or organization. The reference number consists of 13 characters, divided into 5 groups, with the following specific specifications: a) Group 1: Write the name of the exporting member country, in this case Vietnam, use 2 characters “VN”.b) Group 2: Write the name of the importing member country of the ASEAN bloc, are indicated by 2 corresponding characters.

BN:	Brunei	MM:	Myanmar
CUSTOMERS:	Cambodia	PH:	Philippines
ID:	Indonesia	SG:	Singapore
MULE:	Laos	TH:	Thailand
MY:	Malaysia

c) Group 3: includes the last two characters of the year of issuance of the C/O. For example, if the C/O is issued in 2020, it will be written as “20”;
d) Group 4: code of the C/O-issuing agency, consisting of two characters. The list of C/O-granting agencies is listed in Appendix V to this Circular. The Ministry of Industry and Trade will update this list regularly to reflect any changes in C/O-issuing agencies;
dd) Group 5: the ordinal number of the C/O, consisting of five characters;
e) There is a dash “-” between group 1 and group 2. There is a slash “/” between group 3, group 4, and group 5.

For example: If the Import and Export Administration of Ho Chi Minh City issues the 6th C/O for a shipment exported to Thailand in 2022, the reference number of the C/O will be inscribed as: VN-TH 22/02/00006.

Box 3: Write the date of departure and the name of the means of transport; if it is an airplane, write “By air”, if it is by sea, write the name of the ship and the port of unloading.

Box No. 4: The Customs Office at the port or place of import will mark √ in the appropriate box.

Box 5: Write the order number of each item, if there are multiple items on one C/O.

Box 6: Write the symbol and number of the package.

Box 7: Write the number of packages, the type of package and the description of the goods, including the quantity and HS code of the importing country.

Box 8: Write the origin criteria of the goods.

Goods manufactured in the country first indicated in box No. 11 of the C/O:	Fill in box 8:
a) Goods of pure origin or wholly produced in the exporting country according to Article 3 of Appendix I	“WO”
b) Goods of impure origin according to Article 4 of Appendix I
• Regional value content	Write down the actual content, e.g. “40%”
• Conversion of commodity codes	Include specific criteria, e.g. “CC” or “CTH” or “CTSH”
• Specific processing stages	“SP”
• Combination Criteria	Write down specific combination criteria, e.g. “CTSH + 35%”
c) Goods that satisfy Clause 2, Article 6 of Appendix I (partially combined) issued together with Circular No. 22/2016/TT-BCT	“PC x%” where “x” is the percentage of the area value content greater than 20% but less than 40%, e.g. “PC 25%”

Box 9: Write the total weight of the goods (or other quantity) and the FOB value, applicable when the goods are exported from or imported into Cambodia, Indonesia or Laos, using the RVC criteria to determine the origin of the goods.

Box 10: Write the number and date of issue of the commercial invoice.

Box No. 11:

First line: Write the name of the country of origin of the goods in capital letters, e.g. “VIETNAM”.

The second line: Write the full name of the importing country in capital letters.

The third line: Write the place and date of the request for C/O along with the signature of the applicant.

Box No. 12: For agencies and organizations issuing C/O to write the date of issuance, signature of the competent person and affix the seal of the agency or organization issuing the C/O.

Box No. 13:

a) Tick √ in the box “Third Country Invoicing” if the commercial invoice is issued by a company in a third country or an ASEAN exporter on behalf of that company. Information about the company name and country must be written in box 7.
b) Mark √ in the box “Back-to-Back CO” when the C/O-issuing agency of the C/O intermediary country is adjacent to the back according to Article 13 of Appendix I of this Circular. Write the reference number and the date of issuance of the original C/O in box No. 7.
c) Mark √ in the “Exhibitions” box for goods from the exporting Member State participating in the exhibition in another country and sold during or after the exhibition for import into the Member State. Write the name of the exhibition and the address of the organization in box 2.
d) Tick the √ box “Issued Retroactively” if the C/O is issued due to error, forgetfulness, or other plausible reasons according to Article 10, Appendix I of this Circular.
dd) Mark √ in the box “Accumulation” when goods originating from a member country are used as raw materials in another member country for the production of finished products.
e) Mark √ in the box “Partial Accumulation” when the area value of raw materials is less than 40% but 20% or more and the C/O is issued for aggregation according to Article 6, Appendix I of Circular No. 22/2016/TT-BCT.
g) Mark √ box “De Minimis” if the goods do not meet the criteria for conversion of commodity codes but the value of raw materials does not exceed 10% of the FOB value of the product according to Article 9, Appendix I of Circular No. 22/2016/TT-BCT.
h) Cell No. 13 can be √ marked by hand or computer.

When there is not enough space to list all the items on the C/O, the merchant can use the Accompanying Supplemental Declaration. The supplementary declaration must contain all information as prescribed in Sections 6 thru 13 of this Appendix. It also needs to be numbered pages/total pages (including C/O) and must specify the reference number of the corresponding C/O.

Cases of refusal to grant C/O form D

Most cases are issued with a CO form D. However, there are still cases where the management agency refuses to issue this certificate for the following reasons:

The dossier of application for CO issuance is incorrect, the content is inconsistent or the necessary documents are missing.
CO form D shows signs of erasure, blurring or using a variety of inks.
Goods that cannot prove their origin or do not meet quality standards.

Above is all the information about the CO form D certificate and the necessary conditions to be granted this type of certificate. With the important role of CO in import and export activities, businesses should carefully study and prepare sufficient documents to ensure that the application process takes place smoothly.