Detailed instructions on the process of applying for and using the CO form VK

Do you want to enjoy preferential tax rates when exporting goods to Korea? CO form VK is the solution for you. This certificate helps your business enjoy tariff incentives under the VKFTA, reduce costs, and increase profits. Discover how to own a CO form VK to optimize the benefits from it.

What is the VK CO form?

CO form VK is a type of certificate of origin issued for goods originating from Vietnam exported to Korea. This type of document is issued under the Vietnam – Korea Free Trade Agreement (VKFTA VietNam – Korea Free Trade Area), effective from December 20, 2015.

The C/O form VK plays an important role in import and export transactions between Vietnam and Korea. When imported goods are accompanied by this document, they will enjoy tariff incentives, mainly import tax reductions. This helps both exporters and importers save costs during trade transactions.

The issuance of the C/O form VK is carried out in accordance with the guidance of the VKFTA Agreement, based on legal documents such as:

• Circular 40/2015/TT-BCT: Regulations on the implementation of rules of origin under the VKFTA Agreement.
• Circular 48/2015/TT-BCT: Amending a number of contents in Circular 40/2015/TT-BCT on rules of origin.
• Decree 149/2017/ND-CP: Regulations on Vietnam’s special preferential import tariff applicable under the VKFTA Agreement in the period of 2018 – 2022.

With the above provisions, the C/O form VK ensures legal compliance, and at the same time brings great economic benefits in trade activities between the two countries.

Imports and exports under the Vietnam-Korea Free Trade Agreement (VKFTA Agreement) may be exempted from C/O submission in the cases specified in Article 4 of Appendix IV issued together with Circular 40/2015/TT-BCT, specifically as follows:

• Imported goods with a FOB value not exceeding US$600 or higher if specified by the importing member state.
• At the same time, such goods are not in the chain of imported shipments that are deliberately arranged to avoid compliance with laws and regulations related to the management of requests for tariff preferences under the VKFTA Agreement of the importing member country.

Businesses need to pay attention to comply with the above conditions to be exempt from C/O payment while still ensuring the benefits of tariff incentives.

For more: Detailed CO form VJ declaration instructions 2024 – HDG Logistics

Application for C/O form VK

Similar to other types of C/O, to apply for a C/O form VK, you need to prepare a set of documents providing full details about the goods, importer and exporter. This information needs to be consistent to avoid being rejected for C/O. Below is a list of necessary documents:C/O application: 1 copy according to the prescribed form.

Completed C/O declaration: Prepare at least 4 copies, including:

• 1 original.
• 1 copy for the C/O issuing unit to send to the customer.
• 1 copy kept by the C/O issuing unit.
• 1 copy for the C/O-issuing agency to keep.
• Particularly for the ICO form, it is necessary to add 1 *First copy* for the Vietnam Chamber of Commerce and Industry (VCCI) to transfer to the International Coffee Organization (ICO).

Export documents (proving goods of Vietnamese origin):

• Export license (if any).
• Customs declaration of exports.
• Export certificate (if any).
• Invoice (or *invoice* with a VISA visa for textiles exported to the United States when quota management).
• Bill of Lading.

Documents explaining the origin of goods in Vietnam:

• Purchase and sale contracts or export entrustment documents.
• Customs norms (if any).
• Declare raw materials used for production.
• Documents on import and purchase of raw materials.
• Production process or inspection certificate from a specialized agency (if other documents are not enough to clearly explain the origin of the goods).

The preparation of complete and consistent documents is a decisive factor to ensure that the process of applying for a C/O form VK goes smoothly.

Instructions for detailed declaration of CO form VK form

The declaration of the C/O form VK issued by Vietnam is guided in detail in Article 1, Appendix VIII issued together with Circular 40/2015/TT-BCT.

According to regulations, the C/O form VK must be declared in English and printed with a printer or other typesetting device (except for the special case specified in section 15). The declared contents must be consistent with relevant documents as prescribed in this Circular. Below are the specific instructions for declaring the C/O form VK:

Box No. 1 (exporter): Write the name and address of the exporter and the name of the exporting country.

Box No. 2 (consignee): Write the name and address of the consignee with the name of the importing country.

Top right cell (C/O reference number): The C/O reference number issued by Vietnam consists of 13 characters, divided into 5 groups as follows:

– Group 1: The code of the exporting country is Vietnam, including 2 characters “VN”.

– Group 2: The country code of import is Korea, including 2 characters “KR”.

– Group 3: C/O year, consisting of 2 characters, e.g. “15” for 2015.

– Group 4: C/O issuance organization code, consisting of 2 characters, specified in Appendix IX and regularly updated by the Ministry of Industry and Trade.

– Group 5: C/O ordinal number, consisting of 5 characters.

– How to write: Groups 1 and 2 are separated by a dash “-“, groups 3, 4 and 5 are separated by a slash “/”.

Example: The C/O reference number issued by the Hanoi Import and Export Administration Department for the export shipment to Korea in 2015 will be “VN-KR 15/01/00009”.

– The part “issued at” is written as “VIET NAM”.

Box 3 (date of departure and means of transport): Write the date of departure, the type of means of transport (e.g. “By air” for aircraft) and the name of the port of unloading.

Box No. 4 (competent authority): The customs authority shall mark (√) in the appropriate box for certification of tariff preferences under the VKFTA Agreement.

Box 5 (item order number): Write the order number for each item. A C/O can contain multiple items.

Box 6 (package symbol): Write the symbol and number of the package on the package.

Box 7 (details of goods): Write the quantity, type of package, description and HS code of the goods according to the regulations of the importing country. HS Code

Box No. 8 (origin criteria): write the origin criteria of the goods according to the instructions below:

Goods manufactured in the exporting member country inscribed in box No. 11 of the C/O:	Fill in box 8
a) Goods of pure origin or wholly produced in the territory of the exporting member country as prescribed in Article 3, Appendix I	“WO”
b) Goods that meet the specific rules on goods items as prescribed in Article 5, Appendix I: – Conversion of commodity codes – Regional value content – Regional Value Content + Commodity Code Conversion – Specific processing stages	– “CTC” – Include the regional value content that the goods of origin need to reach (e.g., “RVC 45%”) – Include the combination criteria that the goods of origin need to meet (e.g., “CTH + RVC 40%”) – “Specific Processes”
c) Goods are wholly produced in the territory of the exporting member country only from raw materials originating from Vietnam or Korea as prescribed at Point c, Clause 1, Article 2 of Appendix I	“PE”
d) Goods that satisfy Article 6 of Appendix I	Write “Article 3.5”

Box 9 (total weight of goods or other quantity and shipment value): only write the total weight or other quantity and FOB value of the shipment when the goods meet the regional value criterion (RVC).

Box 10 (number and date of commercial invoice): specify the number and date of the commercial invoice.

Box No. 11 (confirmed by exporter or manufacturer):

– The first line reads “VIET NAM”.

– The second line contains the full name in English of the importing country, capitalized (e.g., “KOREA”).

– The third line shall state the place of application, the date of issuance of the C/O, the name and signature of the person requesting the issuance of the C/O, the seal of the company and the name of the company requesting the issuance of the C/O.

Box No. 12 (certification of the C/O-issuing agency): write the date of issuance of the C/O, the signature and full name of the C/O issuing person, and the seal of the C/O-issuing agency.

In box 13, write “Non-Party Invoicing” if the commercial invoice is issued by a non-member country. Information about the name and country of the company that issued the invoice from the third country needs to be filled in this box.

Add other annotations as needed.

Additional guidance: When declaring many items on the same C/O and there are items not entitled to tariff incentives, the customs authority will tick the box “Preferential Tariff Treatment Not Given (Please state reason/s)” in box No. 4. That item also needs to be appropriately circled or marked in box 5.

Cases of refusal to issue a C/O form VK

The refusal to issue a C/O form VK still occurs frequently, mainly due to errors in the preparation of dossiers and documents for C/O application. In Article 21 of Decree 31/2018/ND-CP (issued on 08/03/2018), the Government has clearly stipulated specific cases of refusal to issue a C/O as follows:

• The application for C/O form VK has inaccurate information or lacks the necessary information.
• The contents in the dossier are inconsistent or inconsistent.
• Submitting the application for C/O is not in accordance with the place where the trader dossier has been registered.
• The C/O form VK is declared in handwriting, shows signs of erasure, uses multiple ink colors or is printed too blurry to be readable.
• Goods that do not meet the prescribed standards of origin or cannot verify their origin according to current standards.

To avoid being refused C/O, businesses need to ensure the accuracy, completeness and consistency of the dossier as well as strictly comply with the regulations on the origin of goods.

Through this article, we have learned about the important role of CO form VK in export activities to Korea. Owning the CO form VK not only helps businesses reduce production costs but also contributes to promoting economic cooperation between Vietnam and Korea. Businesses should actively learn and make the most of the benefits that CO form VK brings