Consolidated Document No. 18/VBHN-BCT: Rules of Origin under the ASEAN-Korea Free Trade Agreement (AKFTA)
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Consolidated Document No. 18/VBHN-BCT, issued by the Ministry of Industry and Trade, merges Circular No. 49/2025/TT-BCT (dated September 9, 2025) with amendments in Circular No. 12/2026/TT-BCT (dated March 9, 2026) into a single, unified statement of the Rules of Origin under the ASEAN-Korea Free Trade Agreement (AKFTA). It takes effect on May 1, 2026 and applies to Certificate of Origin (C/O) issuing bodies, import-export traders, and any organization or individual involved in determining the origin of goods traded with Korea. The core content sets out three routes for goods to qualify as AKFTA-originating and receive preferential tariff treatment: (1) wholly obtained goods (grown, raised, or extracted entirely within one member country); (2) meeting a minimum Regional Value Content (RVC) of 40% of FOB value, or a 4-digit tariff classification change (CTH); or (3) satisfying the Product Specific Rules listed by HS code in Appendix I. The circular also sets a 10% de minimis threshold for non-originating materials that fail the CTH test, cumulation rules allowing origin to carry across ASEAN and Korea, and a list of minor processing operations (packaging, labeling, simple assembly, etc.) that do not by themselves confer origin. For import-export businesses, the most operationally important part covers the process for obtaining, verifying, and using Form AK Certificates of Origin: in Vietnam, C/O issuance is handled by the Import-Export Department (Ministry of Industry and Trade) and provincial People's Committees; the C/O must be submitted to the importing country's customs within 12 months of issuance; shipments with an FOB value under 200 USD are exempt from submitting a C/O; and the importing country's customs may request a post-issuance verification within 6 months if authenticity is in doubt. Businesses exporting to Korea under AKFTA preferences should review their origin documentation and Form AK C/O application process against this consolidated text starting May 1, 2026.
Overview
Consolidated Document No. 18/VBHN-BCT merges Circular No. 49/2025/TT-BCT dated September 9, 2025 of the Minister of Industry and Trade (which sets the Rules of Origin under the ASEAN-Korea Free Trade Agreement) with the amendments introduced by Circular No. 12/2026/TT-BCT dated March 9, 2026 (which removes certain outdated legal citations and phrasing). Both underlying circulars take effect on May 1, 2026.
Scope and applicability
The circular applies to: (1) bodies and organizations issuing Certificates of Origin (C/O); (2) traders; and (3) any organization, agency, or individual involved in determining the origin of exported and imported goods under AKFTA. In Vietnam, Form AK C/Os are issued by the Import-Export Department (Ministry of Industry and Trade) and provincial/municipal People's Committees.
Three routes to originating status
1. Wholly obtained goods (WO) - Goods grown, raised, extracted, caught, or processed entirely within the territory of one member country (e.g., crops harvested locally, animals born and raised locally, minerals extracted locally, scrap generated from domestic production).
2. Regional Value Content (RVC) or Change in Tariff Heading (CTH) - For goods not listed in Appendix I: a minimum RVC of 40% of FOB value (calculated via the direct formula VOM/FOB or the indirect formula (FOB-VNM)/FOB), or a 4-digit tariff classification change (CTH) under the Harmonized System.
3. Product Specific Rules (PSR) - For goods listed in Appendix I (an HS-code lookup table), the specific criterion assigned to each heading/subheading applies (which may be CTH, RVC 40%, RVC 60%, WO, or a combination).
Key supporting rules
- Cumulation (Article 10): originating materials from one member country used in production in another member country are cumulated, and the finished good takes the origin of the country where final production/processing occurred.
- 10% de minimis (Article 13): goods that fail the CTH test are still considered originating if the value (or, for textiles in Chapters 50-63, the weight) of non-qualifying materials does not exceed 10%.
- Minor processing operations (Article 11): operations such as packaging, labeling, simple assembly, cleaning, or sorting do not by themselves confer origin, whether performed separately or in combination.
- Direct consignment (Article 12): goods must be transported directly between the exporting and importing country; transit through a third country is accepted only if required for geographic/logistics reasons and the goods undergo no further processing or consumption there.
Form AK C/O issuance and use
The Form AK C/O must be a paper document on A4 paper, completed in English, consisting of one original and two copies. It is issued at or before shipment, or no later than 3 working days after shipment; where issuance is delayed due to an unintentional error, the C/O may be issued retroactively within 1 year and must bear the phrase 'ISSUED RETROACTIVELY'. A lost, misplaced, or damaged C/O may be replaced with a certified true copy marked 'CERTIFIED TRUE COPY', issued within 1 year of the original's issuance date.
The C/O must be submitted to the importing country's customs authority within 12 months of issuance. Shipments with an FOB value not exceeding 200 USD (including items sent by post) are exempt from the C/O requirement, unless customs suspects the shipment was deliberately split to circumvent the rule.
Verification and post-issuance checks
The importing country may request a random check or a check triggered by doubts about a C/O's authenticity. The issuing authority in the exporting country must respond within 2 months, and the entire verification process must be completed within 6 months. While verification is pending, the importing country's customs may suspend preferential treatment, apply a higher duty rate, or require a deposit, but must still allow clearance if the goods are not prohibited/restricted and there is no suspicion of fraud.
Attached appendices
The circular is issued with four appendices: Appendix I (Product Specific Rules by HS code - a detailed table covering thousands of tariff lines), Appendix II (rules for special goods processed outside ASEAN/Korea territory), Appendix III (Form AK C/O template), and Appendix IV (Supplementary C/O Declaration template). Businesses should look up their specific HS code in Appendix I to determine which origin criterion applies to their goods.
Note on legal status
This is a technical consolidated text (not a new piece of legislation) that merges the original circular and its amendments into one document for easier reference. The legally binding instruments remain Circular No. 49/2025/TT-BCT and Circular No. 12/2026/TT-BCT, both effective from May 1, 2026.