What are conditions for applying cumulation rule for Fabrics originating in the Republic of Korea in EVFTA?

Cumulation rules for fabric originating in South Korea (Textile and garment shipments exported from Vietnam to the EU) can apply from 01 March 2021. The following are condition for applying cumulation rule for Fabrics originating in the Republic of Korea in EVFTA

According circular no.11/2020/TT-BCT :

  • Fabrics originating in the Republic of Korea shall be considered as originating in Viet Nam when further processed or incorporated into one of the products with HS code listed in chapter 61 and chapter 62 obtained in Viet Nam, provided that they have undergone working or processing in Viet Nam which goes beyond the insufficient and simple operations as regulated ( at article 10 of 11/2020/TT-BCT (see below) ).
  • The origin of the fabrics shall be determined in accordance with to the rules of origin applicable in the framework of the Union’s preferential trade agreement with the Republic of Korea (a proof of origin as if those fabrics were exported directly from the Republic of Korea to the Union)
  • Proofs of origin shall bear the following entry: “Application of Article 3 (7) of Protocol 1 to the Viet Nam – EU FTA”.

The entry “Application of Article 3 (7) of Protocol 1 to the Viet Nam – EU FTA” shall be shown on Management and electric issuance C/O system (abbreviated as eCoSys) when customer declares C/O for product with HS code at chapter 61 or chapter 62.

Reference:

Article 10. Insufficient working and processing of circular no.11/2020-TT-BCT.

1. The following operations shall be considered as insufficient working or processing to confer the status of originating products, whether or not the requirements of Articles 7 and 8:

a) preserving operations to ensure that the products remain in good condition during transport and storage.

b) breaking-up and assembly of packages.

c) washing, cleaning, removal of dust, oxide, oil, paint or other coverings.

d) ironing or pressing of textiles and textile articles.

dd) simple painting and polishing operations.

e) husking and partial or total milling of rice; polishing and glazing of cereals and rice.

g) operations to colour or flavour sugar or form sugar lumps; partial or total milling of crystal sugar.

h) peeling, stoning and shelling of fruits, nuts and vegetables.

i) sharpening, simple grinding or simple cutting.

k) sifting, screening, sorting, classifying, grading, or matching (including the making-up of sets of articles)

l) simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operation.

m) affixing or printing marks, labels, logos and other like distinguishing signs on products or their packaging;

o) simple addition of water, dilution, dehydration or denaturation of products.

p) simple assembly of parts of articles to constitute a complete article or disassembly of products into part.

q) combination of two or more of the operations specified in points (a) to (p).

r) slaughter of animals.

2. For the purpose of paragraph 1, operations shall be considered simple when for their performance neither special skills are required nor machines, apparatus or tools especially produced or installed for those operations.

3. All operations carried out either in the Union or in Viet Nam on a given product shall be considered together when determining whether the working or processing undergone by that product is to be regarded as insufficient within the meaning of paragraph 1.

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