When importing goods from China into Vietnam, many businesses hear that “a Form E C/O gets you preferential duties.” Reality is more demanding: holding a Form E C/O does not automatically grant tariff preferences. Goods must simultaneously satisfy the rules of origin, the direct-consignment condition, and fall under the ACFTA special preferential tariff schedule. This article walks through all three layers of conditions.
Legal framework: ACFTA and current regulations
ACFTA is the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and China; the Trade in Goods Agreement was signed on 29/11/2004 and took effect on 19/10/2005. Two key documents for businesses:
- Circular 12/2019/TT-BCT (dated 30/7/2019, effective 12/9/2019) — Rules of Origin under the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and China (the current rules-of-origin regulation);
- Decree 118/2022/ND-CP (dated 30/12/2022) — Special Preferential Import Tariff Schedule implementing ACFTA for 2022–2027 (rates apply from 30/12/2022 to 31/12/2027; the “*” symbol in the schedule means the ACFTA rate is not available at the corresponding time).
Three conditions for ACFTA special preferential rates
Under Article 4 of Decree 118/2022/ND-CP, imports qualify for ACFTA rates only if all three conditions are met:
- Listed in the Special Preferential Import Tariff Schedule issued with Decree 118/2022/ND-CP;
- Imported from an ACFTA member state (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, China);
- Compliant with origin rules — including the direct consignment condition — and accompanied by a Form E C/O or origin certification documents under the Agreement and current law (Articles 3 and 4 of Decree 118/2022/ND-CP).
A common misconception: not every product imported from China qualifies. Where a product line marks a country in the “Countries not entitled to preferences” column of the schedule, imports from that country cannot apply ACFTA rates. Businesses must look up the specific HS code in the schedule attached to Decree 118/2022.
Additionally, for goods subject to tariff quotas (certain lines under headings 04.07, 17.01, 24.01, 25.01): the special preferential import duty within quota is the rate in the Decree 118/2022 schedule; outside quota, the Government’s regulations at the time of import apply.
Origin conditions: when are goods “originating”?
Under Article 5 of Circular 12/2019/TT-BCT, goods are considered originating and eligible for tariff preferences if:
- Wholly obtained or produced entirely in a Member State (Article 6);
- Produced in a Member State exclusively from originating materials of one or more Member States;
- Produced from non-originating materials in a Member State, provided the requirements of Article 7 are met.
Caution: the details of Article 7 (general origin criteria) should be checked against the full text of Circular 12/2019/TT-BCT. Businesses should not apply origin-percentage figures circulating online without verifying them in the original regulation.
Form E C/O procedures: key points
- Time of issuance: a Form E C/O is issued before or at the time of shipment. If not issued at shipment, it may be issued retroactively under the exporting Member State’s rules — within 12 months from the shipment date — with “ISSUED RETROACTIVELY” marked in Box 13 (Circular 12/2019/TT-BCT).
- Waiver of Form E submission: originating goods from the exporting Member State with an FOB value not exceeding USD 200 are exempt from submitting a Form E C/O — a simple declaration by the exporter suffices (including postal consignments with FOB value up to USD 200). The waiver does not apply if customs determines consecutive consignments were split to avoid C/O submission.
- Third-party invoicing: the importing country’s customs accepts a Form E C/O where the commercial invoice is issued by a company in a third country (or by the ACFTA Member State exporter’s representative) — provided the goods meet the rules of origin; the third-party invoice number is declared in Box 10 of the Form E C/O (Article 33 of Circular 12/2019/TT-BCT).
Direct consignment — the most common reason preferences are denied
The “direct consignment” condition in Article 4 of Decree 118/2022/ND-CP is the most overlooked point: goods transiting through a third country (not an ACFTA member) without meeting the direct-consignment condition may be denied preferences even with a perfectly valid Form E C/O. When planning logistics for imports from China, ensure the shipping route meets this requirement.
Distinguishing import and export directions
A Form E C/O for goods imported from China into Vietnam is issued by China’s competent authority (the exporting side). Conversely, a Form E C/O for goods exported from Vietnam to China is issued by the authority authorized by Vietnam’s Ministry of Industry and Trade. The issuing authorities differ by direction.
FAQs
1. Does a Form E C/O guarantee 0% duty?
No. All must hold: the HS code is in the ACFTA schedule, import is from a member state, origin rules + direct consignment are met, and the C/O is valid. Missing any one means denial.
2. What if the Form E C/O has formal errors?
A C/O with formal defects (mismatched information, missing seals, alterations…) may be rejected by customs for preference purposes. Check the C/O carefully upon receipt from the exporter.
3. What is ACFTA’s C/O waiver threshold?
FOB value not exceeding USD 200. Do not confuse it with the EUR 6,000 self-certification threshold under EVFTA — each FTA has its own threshold.
4. Form E vs Form D?
Form E belongs to ACFTA (ASEAN–China); Form D belongs to ATIGA (intra-ASEAN). They are different agreements’ forms and are not interchangeable.
The information in this article is for reference only and does not constitute legal advice. Rules of origin and preferential tariff schedules change frequently; businesses should check current legal documents or consult a lawyer before applying.
Importing from China and need to review ACFTA preference eligibility? Contact FLAT Law Firm.
For reference only, not legal advice. Content quality-checked by the AI Legal Council; not yet reviewed by a human lawyer.
