Name of recommendations: Recommendations on regulations promulgated by the Ministry of Industry and Trade on goods origin, origin criteria of bicycles and electric bicycles

Status: Responded

Recommended by units:

Official letter: No. 2099/ PTM - KHTH, dated: 2019-09-16

Recommended contents:

Pursuant to Appendix 1 of Circular 05/2018 / TT-BCT dated April 3, 2018 of the Ministry of Industry and Trade on origin of goods, the criteria of origin for electric bicycles and electric bicycles shall meet “LVC 30 % or CTSH”.

Electric bicycles, a product line of Onway Bicycle, are manufactured through 6 stages on assembly line with specialized equipment (spraying machine line system, spoking machine spoking dispensers, tightening spoke machine and chains that link the stages …).

Currently Onway Bicycle Co., Ltd operates in the field of export processing for foreign traders, and imported discrete components from countries such as China, Taiwan, Indonesia, Vietnam to process and assemble electric bicycles to export to Japan, China, France, Italy ‘s markets.

Pursuant to Clause A, Section 2, Article 6 of the Circular No. 05/2018 / TT-BTC dated April 3, 2018 issued by the Ministry of Industry and Trade: “Change in tariff classification” (hereinafter referred to as CTC): means a change in two-digit, four-digit, or six-digit HS heading of a good as compared with the HS heading of non-originating materials (including imported materials and undetermined origin materials) used for the production of such good.

Onway Bicycle Co., Ltd. encounters some difficulties when applying for C / O form B regarding “change in tariff classification”.  Since the company is newly established and the understanding and application of regulations of current legislation documents is limited, it is suggested that the Ministry of Industry and Trade give details guidelines in response to company’s problems, namely as follows:

 1. Are imported materials of Onway Bicycle Co., Ltd. considered as non-originating and listed in non-originating value column (USD)?

 2. Electric bicycles, a product line of Onway Bicycle, are manufactured through 6 stages on assembly line with specialized equipment (spraying machine line system, spoking machine spoking dispensers, tightening spoke machine and chains that link the stages …). They are not categorized as “"Simple processing and processing stage" under Article 9 of the Government's Decree No. 31/2018 / ND-CP of March 8, 2018, detailing the Law on Foreign Trade Management on origin of goods .