The Ministry of Industry and Trade (MOIT) has taken steps to simplify the issuance of certificates of origin (C/O) to assist businesses. — Photo vietnamplus.vn

The Ministry of Industry and Trade (MOIT) has taken steps to simplify the issuance of certificates of origin (C/O) to assist businesses. When free trade agreements (FTAs) take effect, C/O will help businesses enjoy preferential tariffs.

Tran Thanh Hai, Deputy Director of the Import and Export Department under the MOIT, said that C/O is an important document that helps goods under FTAs enjoy preferential tariffs.

To create favourable conditions for firms, the Ministry of Industry and Trade has made efforts to minimise the time taken to check dossiers of exported goods before granting them C/O.

The MOIT officially launched the pilot electronic certificate of origin (C/O) issuance system in 2016, as part of efforts to expand administrative reforms and assist exporters. From a few dozen sets of documents received in the first phase of implementation, the system now receives and processes about one million sets of C/O each year.

With the aim of reducing administrative procedures to facilitate businesses in the import and export of goods, the MOIT has also piloted a mechanism for self-issuing the certificate of origin under the ASEAN Trade in Goods Agreement (ATIGA).

Enterprises exporting to ASEAN with turnover reaching a minimum of $10 million in the preceding year have the right to issue self-certification of origin.

Total export turnover of goods under FTA using C/O in 2018 reached US$66.2 billion, accounting for 39 per cent of total export turnover from Viet Nam to the markets that the country signs FTAs with.

By the end of May 2019, C/O-granting organisations have boosted the issuance of C/O, especially those for goods in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with 1,872 sets of C/O granted and total value of goods reaching about $58.38 million.

C/O sets granted were mainly issued for goods exported to Canada, worth about $39.1 million. Exported products receiving C/O include footwear, textiles, household appliances, processed food and wood products.

However, according to trade experts, when preparing dossiers for receiving C/O, enterprises often get confused as there are now many different types of C/O forms, leading to the denial of the dossiers or amendments and additions.

In order to provide maximum support for businesses, the MOIT has urged firms to actively register to have C/O issued online. Therefore, enterprises do not need to submit accompanying paper documents such as customs declarations, invoices, bills of lading as before but can attach them electronically.

When enterprises attach electronic documents to the system, officials of the Ministry of Industry and Trade can preview the records and respond on the electronic system.

The system, available at www.ecosys.gov.vn, is being called a turning point in improving the nation's business climate and administrative reforms, as the electronic process will promote transparency and minimise time and expenses spent by businesses, said Tran Thanh Hai, Deputy Director of Import and Export Department under the MOIT.

It is also considered an important step in implementing the ASEAN one-stop customs mechanism and Viet Nam's commitment to regional integration, as neighbouring countries accelerate the formation of an ASEAN community. — VNS