Detailed instructions for declaring CO form E

How to declare a CO form E? What is the applicable tax rate from China to Vietnam? These are frequently asked questions of businesses that want to import cosmetics from China into Vietnam. The two countries have signed the ASEAN-China Free Trade Agreement (ACFTA). Apply preferential tax rates for cosmetics imports, reduced to 0%, which is very beneficial for businesses in this field. Below is a detailed guide on how to declare a CO form E from HDG Logistics.

WHAT IS CO FORM E

What is a CO form E and what is its purpose? The Certificate of Origin Form E is issued under the ACFTA Agreement between ASEAN and China, in order to confirm that the goods originate from member countries of the agreement. Goods imported into Vietnam using CO form E usually originate from China.

The purpose of a valid CO form E is to prove the origin of the goods, thereby determining the preferential import tax rate. This tax rate is based on the HS code of each specific item. For example, for the import of cosmetics from China, the preferential import tax is usually 0%.

Similarly, goods exported from Vietnam or ASEAN countries, when having a CO form E, will confirm the origin of Vietnam or ASEAN, helping Chinese importers enjoy import tax incentives in their country.

According to the provisions of Article 19 of Circular 12/2019/TT-BCT on CO form E:

– CO form E must be printed on white paper, A4 size according to ISO standards and comply with the form specified in Appendix II attached to this Circular. Form E consists of one original (Original) and two copies (Duplicate and Triplicate). All declarations on the form E CO must be made in English.

– In case the C/O form E consists of many pages, the following pages must comply with the C/O form E specified in Clause 1 of this Article and must have the same signature, seal, and reference number as the first page.

– Each C/O form E is assigned a unique reference number, is for a specific shipment, and may include one or more items.

– The original CO form E must be sent by the exporter to the importer for submission at the customs office at the port or place of import. Duplicate copies shall be kept by C/O-issuing agencies and organizations of the exporting country. Triplicate copies are kept by the exporter.

– If the CO model E is rejected, the customs authority of the importing country shall tick the corresponding item in Box 4 of the CO form E.

– When the CO form E is rejected under the provisions of Clause 5 of this Article, the customs authority of the importing country may consider accepting explanations from the CO-granting agency or organization to consider the application of tariff preferences. Explanations from CO-granting agencies and organizations need to be detailed and clearly explain the issues required by the importing country.

Agencies issuing Certificates of Origin Form E

The list of agencies and organizations issuing CO form E of Vietnam is specified in Appendix IV issued together with Circular 12/2019/TT-BCT, specifically as follows:

– Import and Export Management Departments under the Ministry of Industry and Trade.

– Management Boards of Industrial Parks and Export Processing Zones authorized by the Ministry of Industry and Trade.

Working time to receive and return the Certificate of Origin Form E result:

– Application reception time: Morning from 7:30 to 11:00, afternoon from 13:30 to 16:00.

– Return time: Morning from 8:00 to 11:30, afternoon from 14:00 to 16:30.

APPLICATION FOR CO FORM E

To apply for a CO form E, enterprises need to prepare the following documents:

– The C/O application form has been filled out completely and validly.

– A fully completed C/O form consisting of one original and three copies.

– An export customs declaration that has completed customs procedures, a copy signed by a competent person and a seal certifying “true copy”.

– Commercial Invoice/Packing list of the enterprise: one copy.

– Production process explanation table: For enterprises applying for C/O for the first time or products are applied for for the first time, it is necessary to explain the final steps of production of finished products.

– Bill of Lading: a copy with the red seal of the business and the stamp “original copy”.

– The C/O-granting organization may request the applicant to provide additional documents related to the exported product such as the customs declaration for import of raw materials and auxiliary materials; export license; purchase and sale contracts; value-added invoices for domestic purchase and sale of raw materials and auxiliary materials; samples of raw materials, auxiliary materials or exported products; and other documents to prove the origin of the product.

– For enterprises participating in eCOSys, all documents will be signed electronically and automatically transmitted to the C/O-issuing organization. The C/O-issuing organization will check the validity of the information on the network dossier and issue a C/O to the trader when receiving a complete set of paper dossiers. Access the electronic CO form E declaration website at: http://ecosys.gov.vn

Detailed instructions for declaring CO form E

Detailed instructions for declaration of CO form E for export (Certificate of Origin form E) are presented in Appendix III, attached to Circular No. 12/2019/TT-BCT, which is specifically described as follows:

Form E C/O must be declared in English and typed. The declaration must be consistent with the customs declaration for which customs procedures have been carried out and other documents such as bills of lading, commercial invoices and the record of origin inspection of the import-export goods inspection organization (in case of inspection request). Specific contents of C/O declaration form E are as follows:

• Box 1: Fill in the transaction name of the exporter, address, and the name of the exporting country (Vietnam).
• Box 2: Fill in the recipient’s name, address, and country name.
• The top right box: Written by the C/O issuing organization. The reference number consists of 13 characters, divided into 5 groups, specifically as follows:
  • a) Group 1: Two characters “VN” (capitalized) are abbreviations of Vietnam.
  • b) Group 2: Two characters (capitalized) are abbreviations of the name of the importing country, according to the regulations on abbreviations.

CN: China	TH: Thailand
BN: Borneo	LA: Laos
Customer: Cambodia	ID: Indonesia
USA: Malaysia	MM: Myanmar
PH: Philippines	SG: Singapore

• c) Group 3: 02 characters expressing the year of C/O
• d) Group 4: 02 characters, showing the name of the C/O issuing organization according to the list authorized by the Ministry of Industry and Trade with the following codes:

STT	Name of agency or organization granting CO form E
1	Hanoi Import and Export Management Department
2	Import and Export Management Department of Ho Chi Minh City
3	Da Nang Import and Export Management Department
4	Dong Nai Import and Export Management Department
5	Hai Phong Department of Industry and Trade
6	Binh Duong Import and Export Management Department
7	Vung Tau Import and Export Management Department
8	Import and Export Management Department in Lang Son area
9	Quang Ninh Import and Export Management Department
10	Lao Cai Import and Export Management Department
11	Thai Binh Import and Export Management Department
12	Import and Export Management Department in Thanh Hoa area
13	Nghe An Import and Export Management Department
14	Import and Export Management Department in Tien Giang area
15	Can Tho Import and Export Management Department
16	Import and Export Management Department in Hai Duong
17	Import and Export Management Department of Binh Tri Thien area
18	Khanh Hoa Regional Import and Export Management Department
19	Ha Tinh Import and Export Management Department
20	Import and Export Management Department of Ninh Binh Region
21	Hanoi Industrial and Export Processing Park Management Board
22	Ha Giang Provincial Economic Zone Management Board

• dd) Group 5: 05 characters, indicating the ordinal number of the C/O Form E.
• e) Between groups 3, 4 and 5 there is a slash “/”For example, the Import and Export Administration Department of Ho Chi Minh City issues a C/O Form E bearing the 6th number for a shipment exported to China in 2007, the reference number of this C/O Form E will be as follows: VN-CN 07/2/00006.

• Box 3: Write the date of departure, the name of the means of transport (for aviation, write “By air”, for sea, write the name of the ship) and the name of the port of loading.
• Box No. 4: Blank. The customs authority will fill in the information after the goods are imported and before sending the C/O Form E back to the issuing organization.
• Box 5: List the goods (one item, one shipment, sent to a country, within a certain period of time).
• 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 in the importing country.
• Box No. 8: Detailed guidance is as follows: Cases of production of goods in the country first named in box No. 11 of this C/O include:
  • a) Goods of pure origin or wholly produced by exporters according to Article 3, Appendix 1 of Decision No. 12/2007/QD-BTM – inscribed “WO”.
  • b) Goods of impure origin according to Article 4, Appendix I of Decision No. 12/2007/QD-BTM – inscribe the percentage of content based on the FOB price of goods manufactured or exploited in Vietnam, e.g. “40%”.
  • c) Goods of impure origin under Articles 4 and 5, Appendix I of Decision No. 12/2007/QD-BTM (aggregate origin) – inscribe the percentage of ACFTA aggregate content based on the FOB price, e.g. “40%”.
  • d) Goods satisfying Article 6, Appendix I of Decision No. 12/2007/QD-BTM – inscribed “PSR”.
• Box 9: Write the total weight of the goods (or other quantity) and the FOB value.
• Box 10: Write the number and date of the commercial invoice.

• Box No. 11:
  • a) The first line reads “Vietnam”.
  • b) The second line shall contain the full name of the importing country.
  • c) The third line shall state the place of issuance, date and signature of the person competent to sign the issuance.
• Box No. 12: Fill in the information by the C/O issuing organization.
• Box No. 13:
  • a) In case of subsequent issuance according to Article 11, Appendix 2 – mark “ISSUED RETROACTIVELY”.
  • b) If the product is sent from the exporter to participate in the exhibition at another party and sold at the importer according to Article 22, Appendix 2 – marking “Exhibition” and clearly stating the name and address of the place where the exhibition takes place in Box No. 2.
  • c) If the product is issued with a C/O according to Article 12, Appendix 2 – mark “Movement Certificate” and clearly state the name of the organization that issued the original C/O form E, the date of issuance and the reference number of the original C/O form E in Box 13.
  • d) In case the invoice is issued at a third party according to Article 23, Appendix 2 – marked “Third Party Invoicing”, clearly stating the invoice number in Box No. 10 and the name of the issuing company and the name of the issuing country in Box No. 7.

IN CASE CO FORM E HAS A 3RD PARTY INVOICE

CO Form E Third Party Invoicing

A CO with a third-party invoice, also known as C/O Form E Third Party Invoicing, requires compliance with four specific conditions on the C/O:

– Box 1: specify the manufacturer in an ACFTA member country (e.g., China)

– Box 7: write the name of the invoice issuing company and the country where this company is located

– Box 10: specify the invoice number and date in this box (must match the purchase and sale invoice)

– Box 13: tick the Third Party Invoicing box

Some common mistakes when making C/O Form E

Here are some common mistakes when making C/O Form E that you need to keep in mind to avoid:

• Missing the note “Issued Retroactively” if the C/O is issued three days after the date of departure of the ship.
• For authorized C/O Form E: Some manufacturers in China cannot apply for C/O and need to authorize a service unit to carry out this procedure. Although Chinese regulations allow it, in Vietnam, the authorization C/O Form E is generally not accepted.
• The data on the C/O does not match other documents: This error is very common and can cause obstacles in the transportation of goods. When a fault is detected, it is necessary to correct it immediately to avoid unnecessary trouble.

Hopefully, this article will help you better understand how to declare CO form E and avoid mistakes. If you have any questions, please contact us for assistance.