The Essential Information on Certificate of Origin from Vietnam

According to Decree No. 31/2018/ND-CP guiding Law on Foreign Trade Management in terms of origin of goods: “The Certificate of Origin means a written form or other form of equivalent legal validity granted by competent authority belonged to country, group of countries or territories exporting the goods based on regulations and requirements of origin, specifying origin of this goods”.

We comprehend that the Certificate of Origin (hereinafter referred to as “C/O”) is certificate of goods origin issued by a country (export country) to confirm goods produced and distributed by this country in the export market in accordance with the rules of origin to create the most favourable conditions for goods importing to other country (import country) on tariffs. C/O is an important instrument in importing and exporting goods.

Functions of C/O

Tariff preferences: Determining the origin of goods help us differentiate the import goods enjoyed tariff preferences to apply the preference regime according to trade agreements as signed by the countries.

Anti-dumping duty and anti-subsidy duty application: In the event that goods is dumped or subsidized in the market of other country, determining the origin of goods shall make anti-dumping duty and anti-subsidy duty application possible.

Statistics of trade and maintenance of quota system: Determining the origin of goods make compilation on statistics of trade of country or area easier. On this basis, competent authority of trade can maintain the quota system.

Category of C/O

Non-preferential C/O means a ordinary C/O confirming the origin of product from a specific country.

Preferential C/O means a C/O allowing the product eliminated or reduced from the country’s permission such as: Generalized Systems of Preferences (GSP), Commonwealth Preference Certificates (CPC), Common Effective Preferential Tariff (CEPT),…

The Agency granting C/O

Ministry of Industry and Trade of Vietnam is the agency granting Certificate of Origin directly or authorizing Vietnam Chamber of Commerce and Industry (VCCI) or other organization to issue Certificate of Origin.

According to the prevailing law, the treaty signed by Vietnam and the provision of import country on Certificate of Origin, the Ministry of Industry and Trade stipulates the regulation on selection of trader, procedure of self-certifying the origin, obligation and liability of self-certifying the origin, inspection of the self-certifying of origin of goods exported by traders and remedy.

Process of issuing C/O

When applying for C/O for the first time, the trader shall have to submit dossier to competent authority.

Dossier includes:

– Request for Certificate of Origin;

– Form of C/O filled in full into 01 (one) original copy and 03 (three) copies. The original copy and one of the copies shall be sent to the Importer by the Exporter and the Importer shall submit such instruments to competent authority in loading port or unloading port. The second copy and the third copy shall be saved by the agency issuing this C/O and the Exporter respectively. In case of import country’s requirement, the applicant can request the Agency issuing this C/O to grant more than 03 (three) copies of C/O;

– The declaration of completing the customs procedure at competent authority (certified copy with signature of competent persons), excepting the case it’s not necessary for export goods to declare according to the laws. The applicant of C/O shall have the right to submit this instrument no more than 30 (thirty) days from the date granting C/O in case of legitimate reasons.

If necessary, the agency issuing C/O may require the applicant to provide another instruments relating to export product such as: the declaration of importing material; the certificate of export; sales contract; VAT invoices; sample of material or product; bill of lading; air way bill and other instruments relating to origin of export goods..

Relating to enterprise participating eCOSys, all instruments shall be made by trader via electronic system and automatically transferred to agency issuing C/O. The agency issuing C/O bases on electronic dossier to check validity information and grant C/O to trader as soon as receiving full dossiers in hardcopy.

The agency issuing C/O informs the result of submitting dossier via eCOSys no later than 06 (six) working hours from receiving validity electronic dossier.

The agency grants Certificate of Origin to trader no more than 02 (two) working hours after receiving application in hardcopy.

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Some Modifications on Business Registration from October 10th, 2018

Decree no.108/2018/ND-CP amending and supplementing a number of articles of Decree No.78/2015/ND-CP effective from October 10th, 2018 has provided many new procedures of business registration.

The new decree stipulates clarification on some contents about the procedure on business registration, of which, the highlight are the procedures that do not to require the seal stamped on the dossier on business registration and that the power of attorney for a person whom establishes the company does not need notarization, authentication at Clause 1 and 2 of Article 1 Decree No. 108/2018/ND-CP. In the past, due to the lack of clarification on the above matters, some competent authorities require to affix the seal on the dossier of business registration and request the notarization of the power of attorney. These procedures created some troublesome in practice.

Another regulation that facilitate the business transaction is that previously enterprises can only set up business locations in the province or city under central authority where their head office or branch is located. It means that if an enterprise wishes to set up another business location where the office is located, it has to go through two procedures: setting up a branch first then setting up a business location. The procedure of setting up a branch is more complex more than the establishment of business locations. With the changes in the decree 108/2018/ND-CP, enterprises are allowed to set up business locations in other provinces or centrally-run cities where their head offices or branches are opened. The scope of work is simpler and more cost-effective, the transactions of the place of business are accounted for by the parent company, thereby reducing the workload for the accountant of the company.

How ANT Lawyers Could Help Your Business?

To Set up company in Vietnam, please contact our lawyers for advice via email ant@antlawyers.vn or call our office at +84 28 730 86 529

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Property Liability of Husband and Wife in the Marriage Period

According to the laws of Vietnam, marriage relation is established between a man and a woman based on marriage conditions and registration. Marriage registration means establishment of legally valid marriage relation and is protected by State, binding the wife and the husband with certain liability – joint liability.

Joint liability means a liability which shall be performed by both wife and husband and which the obligee has the right to request other to perform in its entirety. This liability could arise from property obligation in marriage period.

Property of wife and husband include two types: common property and separate property. For the transaction of common property, both wife and husband mutually agree implement, joint liability shall always exist. Moreover, the following transactions which are made by either wife or husband including but not limited to: legitimate representation in civil transaction, business relations; representation in the ownership certificate of property; the obligations performed by either wife or husband in order to meet the family’s essential demand will bind both wife and husband by a joint liability.

Despite one of the principles of Civil Code on separate property that the owner has a right to possess, use and dispose its assets and the obligations, liabilities arising out such rights shall be performed by the owner in itself, the transaction performed by either wife’s assets or husband’s assets can arise joint liability to other party such as the usage of separate property for maintenance, development of common property or making family’s primary income.

In conclusion, the provisions of joint liability on spouses’ assets not only ensure the right, benefits of wife, husband, family and third party but also is legal foundation for resolution of dispute.

How ANT Lawyers Could Help?

Please contact our lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at (+84) 24 730 86 529

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What is difference between copyright and patent?

When an individual or business creates something new, it Is important to protect that unique design, product, logo, name, art or work of authorship. Most individuals and businesses are aware that legal protections exist for new inventions and creations. But not everyone is sure exactly what kinds of protections they need in order to ensure that other individuals and businesses do not infringe upon the fruits of their labor. Though both are popular and well known, what is the difference between copyright and patent?

 Vietnam patent 

Thankfully, experienced intellectual property attorneys are generally happy to help both individuals and businesses navigate the process of protecting their inventions and creations. If you have produced a new and unique product, design, piece of art, etc. please consider asking a lawyer with specialized intellectual property knowledge to aid you in submitting the legal paperwork required in order to obtain any protections your work may be eligible for under the law. Depending on the nature of your creation, these protections may include copyrights and/or patents.

What Falls Under Copyright Protection?

Unlike patents, which protect physical inventions, new designs for existing products and certain discoveries, copyright protection coversoriginal works of art and authorship when expressed in tangible mediums. Literary, artistic, musical and dramatic works of art are protected via copyright. In addition, computer software and architecture may be protected by copyright as well.

An important difference between copyright and patent is that copyright protections are granted automatically. You do not need to file for a copyright per se, as copyright protections apply, “the moment (a work) is created and fixed in a tangible form that it is perceptible either directly or with the aid of a machine or device” according to the U.S. Copyright Office. However, you cannot generally file suit protecting your work against infringement unless your copyright has been registered with the USCO. The USCO highly recommends registering one’s artistic work because absent this process, copyright protections cannot generally be effectively enforced.

What is Covered by Patent Protection?

 There are three primary kinds of patent protectionavailable to businesses and the general public. Plant patents protect new asexually reproducing plant species and hybrids. Utility patents protect new products and processes, while design patents protect new design elements integral to existing manufactured products or processes. In general, works eligible for patents are novel, non-obvious and useful, but some exceptions to this rule may apply.

It is worth noting that unlike copyright protections, no patent protection is granted automatically upon the creation of a product or process. Therefore, it is imperative that inventors and businesses formally apply for patent protection as soon as their work is prototyped and capable of reproduction.

Consult an Intellectual Property Attorney

 If you are interested in registering a work of art or authorship or patenting a product, process, design or discovery, please consider reaching out to an knowledgeable intellectual property attorney in Vietnam. We have extensive experience aiding both individuals and businesses in obtaining the intellectual property protections that their works are eligible for. The registration process and patent application process are detailed and are often difficult to navigate. Filling out even a single section of paperwork incompletely or incorrectly can result in rejection. Let our team help you get this process right the first time around in order to better ensure that your work is safeguarded from infringement as soon as it becomes eligible for protection.

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What International Laws in International Trade Vietnam is a Signing Party to?

International trade is important for each country to grow economically and influence through exchanging products and services, utilizing resources that create competitive advantage over others. In order to enable international trade, Vietnam has been a signing party to a number of international laws, international conventions, free trade agreements.

Up to present, Vietnam is a signing party to the:

UN Convention on Contracts for the International Sale of Goods 1980 (CISG);

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP);

The Association of Southeast Asian Nations (ASEAN) 1967;

Vietnam is also the signing party to a number of the Free Trade Agreements:

ASEAN Free Trade Area 1992;

ASEAN Trade in Goods Agreement (ATIGA);

ASEAN Framework Agreement on Services (AFAS);

ASEAN Protocol on Enhanced Dispute Settlement Mechanism;

ASEAN-China Free Trade Area 2002;

ASEAN-India Free Trade Area 2003;

ASEAN-Japan Free Trade Area 2003;

ASEAN-Korea Free Trade Area 2005;

Vietnam – Japan economic Partnership Agreement 2008;

ASEAN-Australia-New Zealand Free Trade Agreement 2009;

Vietnam – Chile Free Trade Area 2011;

Vietnam – Korea Free Trade Area 2015;

Eurasian Economic Union 2015

ASEAN – Hong Kong free Trade Area 2017 (signed on 12/11/2017, Scheduled to be effective from 1 January 2019)

Agreements in WTO accession:

Annex 1A Multilateral agreements on trade in goods

General Agreement on Tariffs and Trade 1994

Agreement on agriculture

Agreement on the application of sanitary and phytosanitary measures

Agreement on textiles and clothing

Agreement on technical barriers to trade

Agreement on trade-related investment measures

Agreement on implementation of Article VI of the General Agreement on Tariffs and Trade 1994

Agreement on implementation of Article VII of the General Agreement on Tariffs and Trade 1994

Agreement on pre-shipment inspection

Agreement on rules of origin

Agreement on import licensing procedures

Agreement on subsidies and countervailing measures

Agreement on safeguards

Trade Facilitation Agreement

Annex 1B General Agreement on Trade in Services

Annex 1C Agreement on trade-related aspects of intellectual property rights

Until Sep 2018, Vietnam has been accelerating preparations for meeting commitments in EU-Vietnam Free Trade Agreement (EVFTA). It has been expected the EVFTA to be passed in the year of 2019, promoting Vietnam’s sustainable development through removing 99% of tariffs on goods traded between the two economies, expanding Vietnam’s textile, apparel export to the EU market. In return, the EVFTA will open Vietnamese market for EU companies and strengthen the protection of its investment into Vietnam.

ANT Lawyers law firm is a member of legal secretary of EuroCham in Hanoi, Vietnam, and has been a contribution to the legal review that support the investment into Vietnam. ANT Lawyers will be sending Mr Tuan Nguyen, the Managing Partner to take part in the EuroCham delegation visit in Brussels Mission in October 2018, with the main goal is to promote the fast conclusion of the EU-Vietnam Free Trade Agreement process, raise awareness as to the potential of Vietnam as a strategic partner for Europe, and deliver the views of the European business community in the country.

How ANT Lawyers Could Help Your Business?

Contact our lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at (+84) 24 730 86 529

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What Are Rights and Benefits of the Employee Suffering the Occupational Accident?

Accidents can happen at any time at work. Whether a workplace accident is the result of employee carelessness or employer negligence, employers must take responsibility for accidents to employee.

Vietnam Labor Code defines occupational accident is an accident that causes injury to any part and function of the body or death to employee occurring during the working process associated with the implementation of work and labor tasks (according to Article 142 of Labour Code).

The employee has following rights when they suffer accidents:

1. The employee is paid all the payment of the co-payment costs and the costs not included under the list paid by the health insurance for the employee participating in health insurance and making full payment of all medical expenses from the first aid, emergency to the stable treatment for the employees not participating in health insurance.

2. The employee is entitled to full payment of salary under the labor contract to the employee suffering the occupational accident and having to take leave during treatment.

3. The employee participating in compulsory social insurance is entitled to enjoy the regime of occupational accident in accordance with the Law on Social Insurance.

The conditional to enjoy the regime of occupational accident: were injured in workplace or during working hours; outside the place of work or during working hours when performing work at the duty of the employer; on the road from home to work place and vice versa.

4. The employee is entitled to the enjoy labor accident allowance as:

. The employee with occupational accidents reduces working capacity from 5% to 30% are paid once.

The employee with occupational accidents reduces working capacity 5% receive an allowance of an amount equal to 5 month’ salary under labor contract and then every 1% increase has an addition of 0.5 month’ salary.

.The employee with occupational accidents reduces working capacity 31% or more receive an allowance at rate: reduce working capacity 30% shall receive 30% month’ salary under labor contract and then every 1% increase has an addition of 2% month’ salary

This allowance is paid every month.

. The death of the employee’s relative from the occupational accidents receive at least 36 months’ salary under labor contract.

5. The employee with occupational accidents not due to the fault of employee and reduce working capacity from 5% or more shall be compensated by the employer at the following rate:

. At least equal to 1.5 month’ salary under the labor contract if the employee is reduced from 5.0% to 10% of his working capacity and then every 1.0% increase, an addition of 0.4 months of salary under the labor contract if reduced working capacity from 11% to 80%;

. At least 30 months’ salary under labor contract for the employee reduced his working capacity from 81% or more or for the death of the employee’s relative from the occupational accidents.

6.Where due to the fault of the employee, he/she also receives an allowance of an amount at least equal to 40% of the rate prescribed when fault not belong to the employee.

7. In case the employee reduces his/her working capacity in temporary, the employee receives100%-month salary under labor contract the first aid, emergency to the stable treatment or until a permanent injury certificate is issued.

8. In case the employee reduces his working capacity in permanent, beside allowance of accidents, the employee reduces his/her working capacity from 81% or more receive 100% month’ salary under labor contract every month.

9. In the case of death of a worker who has paid social insurance for 15 years, relatives will receive a funeral allowance and dependents will be entitled to a minimum of 50% of the basic salary for each person.

10. In case of the employee’s death and had participated in compulsory social insurance for less than 15 years, the burial attendants receive allowance at least 10 months’ salary under labor contract at once.

How ANT Lawyers Could Help Your Business?

Please click to learn more about Labour Law Firm in Vietnam or contact our lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at +84 28 730 86 529

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Anti-dumping measures under Vietnam laws

Vietnam joined the WTO, signed various types of trade agreements, and step by step eliminated tariff and non-tariff barriers and accelerated the process of integration and development of Vietnam. The Foreign Trade Administration Act of 2017, which regulates trade remedies, has also terminated the effect of the Ordinance on Anti-dumping of Imported Goods in 2004.

According to the Law on Foreign Trade Management, Decree 10/2018 / ND-CP, anti-dumping measures against goods imported into Vietnam is a measure applied in cases where the goods are identified dumping when imported into Vietnam causes substantial injury or threatens to cause material injury to a domestic industry or prevents the formation of a domestic manufacturing industry. A commodity is determined to be dumping when it is compared to the following conditions: the selling price in Vietnam is lower than the normal price. The usual price determination is regulated by the Law on Foreign Trade Management in three ways: the price of the like goods at exporter, the price of the like goods in the third country under normal commercial conditions or the price determined by the investigating agency by the method of self-calculation.

For the application of anti-dumping measures, the “sale price” factor is not sufficient, but must fully satisfy the conditions prescribed by law. Accordingly, the dumping measure is applied when the dumping margin is over 2%; the domestic industry suffered material injury or threatened to cause material injury; there is a fruitful relationship between the importation of goods selling prices and the domestic production. With the margin of dumping below 2%, anti-dumping measures are not applicable.

The application of anti-dumping measures is considered as a way of healthy competition of enterprises. Domestic enterprises may request the competent agencies to apply this measure when they find that they fully satisfy the conditions on quantity and volume of goods related to their selling prices and the proportion of goods that they sell on the market devaluation (at least 25%). On the basis of the conclusions of the investigation, the anti-dumping tax shall be applied for not more than 5 years or the measures for elimination of dumping at the request of the domestic enterprises if they are approved by Vietnam Competition Authority, the investigation bodies.

An anti-dumping duty shall apply retroactively prior to the decision of the Minister of Industry and Trade. Anti-dumping duty shall be retroactively applied to imported goods for a period of 90 days before the imposition of provisional anti-dumping duty if the imported goods are found to be dumped.

Therefore, anti-dumping measures are a way to protect the domestic industry and at the same time create a healthy competition between foreign enterprises and Vietnamese enterprises. At the same time, respect for international commitments, trade agreements that Vietnam signed when joining the WTO.

How ANT Lawyers Could Help Your Business?

Please click to learn more about Anti-dumping law firm in Vietnam or contact our lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at +84 28 730 86 529.

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