The core logic for Vietnamese made fasteners to enjoy preferential tariffs when exported to other RCEP member countries (such as Japan, South Korea, Australia, etc.) is to first obtain the identity authentication of “Vietnamese origin”, and then clear customs in the destination country with this certificate. The specific operation path is as follows:
1. Meet the RCEP rules of origin (prerequisite for obtaining an “ID card”)
Fasteners are usually classified under HS Code Chapter 73 (Steel Products), and under the RCEP framework, they must meet any of the following criteria to be recognized as originating in Vietnam:
Regional Value Component (RVC) ≥ 40%: This is the most commonly used criterion. That is, (product FOB price – non RCEP origin material price)/FOB price ≥ 40%. There is a huge dividend here: the RCEP cumulative rules. The raw materials such as steel and wire used in your Vietnam factory from other RCEP member countries such as China and Japan can be considered as “originating materials” and included in the value component, rather than “non originating materials”. This greatly reduces the difficulty of meeting the standards.
Tax Classification Change (CTC): If non originating materials are used, it is necessary to ensure that the HS code of the processed product (usually requiring a 4-digit item level) is substantially changed from the HS code of the imported non originating materials. (Source: www.fasteningelement.com, organized as a speeding element)
2. Apply for RCEP Certificate of Origin (FORM RCEP)
After confirming that the product meets the origin qualification, the Vietnamese exporter (usually a factory or trading company) applies for a certificate from the Vietnamese authorized agency:
Application channel: Apply through the Ministry of Industry and Trade of Vietnam (MOIT) or the Chamber of Commerce and Industry of Vietnam (VCCI). Currently, it is also possible to apply online through the official eCoSys system in Vietnam. Some compliant enterprises can also register as “approved exporters” and issue their own declaration of origin without the need for official pre-approval, which is highly efficient.
Key materials: Commercial invoices, packing lists, BOM (Bill of Materials) cost details, production process flow instructions, etc. need to be prepared to demonstrate compliance with the country of origin. (Source: www.fasteningelement.com, organized as a speeding element)
3. Enjoy the benefits of Qingguan in the destination country
The Vietnamese factory will ship the goods and hand over the FORM RCEP certificate or declaration of origin along with commercial invoices, bills of lading, and other documents to the importer (such as Japanese customers).
When declaring in the destination country (such as Japan Customs), importers can submit this certificate to pay tariffs according to the RCEP agreement tariff rate (usually lower than the most favored nation tariff rate, or even gradually reduced to zero). (Source: www.fasteningelement.com, organized as a speeding element)
Special Reminder: Vietnam Customs is becoming increasingly strict in origin verification (anti circumvention), and must ensure that there are “substantial changes” in production and processing in Vietnam to avoid being identified as pure transit trade. All documents (certificates, invoices, bills of lading) information must be strictly consistent. (Source: www.fasteningelement.com, organized as a speeding element)