New points about rules of origin in AKFTA

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The Ministry of Trade and Industry promulgated Circular 04/2024/TT-BCT amending and supplementing some articles of Circular 20/2014/TT-BCT dated June 25, 2014; the circular took effect from May 11, 2024.

Accordingly, to implementing 3rd protocol amending some provisions on Rules of Origin and Tariffs of Trade in Goods Agreement under the Framework Agreement on Comprehensive Economic Cooperation ASEAN – Republic of Korea (AKFTA) approved by the Government in Resolution No. 150/NQ-CP dated September 22, 2023, the Ministry of Industry and Trade issued Circular No. 04/2024/TT-BCT dated March 27, 2024 amending and supplementing some articles of Circular No. 20/2014/TT-BCT dated June 25, 2014.

The circular amending Article 4, Appendix I (Rules of Origin) issued together with Circular No. 20/2014/TT-BCT on granting the right to choose the formula for calculating regional value content (RVC) following direct or indirect calculation to exporters/manufacturers for fixed use throughout a financial year and for post-audit verification.

Amending Clause 1, Article 5, Appendix V (procedures for issuance and inspection of C/O) issued together with Circular No. 20/2014/TT-BCT on legalizing the practice of choosing to issue electronic C/O (signed, stamped and issued electronically) or traditional C/O issuance (signed, stamped and issued by hand). According to the Import-Export Department (Ministry of Industry and Trade), the issuance of C/O in electronic form as mentioned above has been applied by Korea and accepted by ASEAN Customs authorities since 2008 after the parties signed the AKFTA Agreement.

Amend the name "ASEAN - Korea Free Trade Area Agreement" to " Trade in Goods Agreement Agreement under the Framework Agreement on Comprehensive Economic Cooperation ASEAN – Republic of Korea".

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