AIFTA C/O: updates and rules of origin for Vietnam-to-India shipments

The economic corridor between Vietnam and India is one of Asia’s most dynamic, with trade volumes consistently rising year after year. For Vietnamese exporters, capitalizing on this growth means navigating the complexities of international trade agreements. At the heart of this advantageous relationship lies the ASEAN-India Free Trade Area (AIFTA), specifically the Certificate of Origin (C/O) Form AI.

The C/O Form AI is not merely a piece of paper; it is the golden key that unlocks significant preferential tariffs (tax exemptions or reductions) for goods exported from Vietnam into the vast Indian market. Without this crucial document, goods face the higher, non-preferential Most-Favored-Nation (MFN) tariffs, directly eroding profit margins and competitive edge.

This in-depth guide is tailored for Vietnamese exporters and logistics professionals. We will decode the latest updates and provide actionable advice to ensure your Vietnam-to-India shipments clear Indian Customs seamlessly and benefit fully from the AIFTA framework.

🔑 Decoding the C/O form AI: the AIFTA essential document

What exactly is C/O form AI?

The C/O Form AI is the certified document issued by an authorized Vietnamese agency (typically the Ministry of Industry and Trade or its delegated bodies) that attests the goods being exported to India qualify as originating products under the provisions of the Agreement on Trade in Goods under the AIFTA.

The primary purpose is to allow the Indian importer to claim preferential import duty, which is a direct cost saving and makes Vietnamese products more competitive in the Indian market.

Recent updates to AIFTA documentation

To make sure your exports from Vietnam to India receive the low AIFTA tariff, you need to follow the latest rules. Here are the three most important things you and your Indian importer must know:

Hardcopy is still king (do not rely on digital!)

– The Rule: Even though Vietnam is pushing for electronic C/Os (e-C/O), Indian Customs still demands the physical, original C/O Form AI.

– What This Means for You: You cannot simply email a scanned copy. You must courier the original, wet-ink signed and stamped C/O to your consignee in India so they have it before the cargo arrives.

– The Risk: Sending only a digital copy is a significant risk that will likely cause the Indian importer to lose the tariff benefit and face customs delays.

Strict issuance deadlines

– The Rule: It must be issued either at the time of export or within three (3) working days after the actual export date.

– What This Means for You: Apply for your C/O immediately after shipment.

– Late Issuance (“Issued Retroactively”): If you miss the 3-day window, you have up to twelve (12) months to apply, but the issuing authority must tick the “Issued Retroactively” box (Box 13). Missing this 12-month deadline means you lose the tariff preference completely.

Updated product rules (keep checking!)

– The Rule: The AIFTA agreement is being updated, including its Product Specific Rules (PSRs). These rules define which goods qualify for the preferential rates.

– What This Means for You: Always monitor official announcements from the Vietnamese Ministry of Industry and Trade (MOIT).

– The Benefit: These updates often expand the list of products that can qualify for the low tariff rates. Checking these updates ensures you are not missing out on savings for your specific product line.

⚖️ The foundation of C/O: AIFTA rules of origin

The most complex and critical part of C/O Form AI compliance is proving the goods genuinely “originate” from Vietnam. AIFTA employs three primary rules:

1. Wholly Obtained – WO

– The Rule: The goods must be entirely grown, harvested, extracted, or manufactured from basic materials existing solely within Vietnam.

– Examples: Minerals extracted from Vietnamese soil, live animals born and raised in Vietnam, or vegetables harvested in Vietnam.

2. Regional Value Content – RVC

– The Rule: This applies when the product uses raw materials imported from outside the AIFTA region. It requires the value added through processing in Vietnam to be significant.

– The Regional Value Content (RVC) must be at least 35% of the Free-on-Board (FOB) value of the exported product.

3. Change in Tariff Classification – CTC

– The Rule: The manufacturing process in Vietnam must be substantial enough to result in a change in the product’s identity.

– The non-originating raw materials used in the production must be classified under a different four-digit Harmonized System (HS) heading from the exported product (known as CTH – Change in Tariff Heading).

– Actionable Tip: Check the HS Codes of your imported materials and the final export product. If the first four digits are different, you likely qualify under this rule.

Expert Insight: Exporters must clearly state the applicable Rule of Origin in Box 8 of the C/O Form AI. Common entries are: ‘WO’ (Wholly Obtained), ‘RVC 35%’ (Regional Value Content), or ‘CTH’ (Change in Tariff Heading).

📝 Completing the C/O Form AI (Box by Box)

Precise, accurate completion of the C/O Form AI is vital. Even minor errors can lead to rejection and subsequent customs delays in India. Here is a focus on the most common error-prone boxes for Vietnam-to-India shipments:

Box No.	Field Description	Key Compliance Requirement (Vietnam-India)
Box 1	Exporter’s Information	Must match the Exporter details on the Commercial Invoice and Packing List. Full legal name, address, and Vietnam must be listed as the country.
Box 2	Consignee’s Information	Must match the Consignee details on the Commercial Invoice. If the goods are consigned “To Order,” list the party to whom the goods are ultimately delivered. Address in India must be complete.
Box 3	Means of Transport	Specify the method of transport (e.g., “By Sea”, “By Air”) and the exact name of the vessel/flight number. Port of Discharge must be an Indian Port.
Box 5	Item Number	Corresponds to the sequential number of the goods described in Box 7.
Box 7	Marks and Numbers	Must be identical to the markings on the packages, the Bill of Lading (B/L), and the Commercial Invoice.
Box 8	Origin Criteria	This is the most crucial box. Use the correct code: “WO”, “CTC” or “RVC”
Box 9	Gross/Net Weight or Quantity	Must be consistent with the B/L and Packing List.
Box 10	Number and Date of Invoice	The commercial invoice number and date must be correct and match the other documents submitted in the C/O application dossier.
Box 12	Issuing Authority	Must bear the official seal and signature of the authorized C/O issuing organization in Vietnam (e.g., MOIT branch).
Box 13	Tick Boxes	Ensure the correct box is ticked: “Issued Retroactively” (if applicable) or “Third Party Invoicing” (if the invoice is issued by a non-Vietnamese/non-Indian company).

📈 Leveraging AIFTA for a competitive edge

By mastering the procedures of the C/O Form AI, Vietnamese exporters achieve more than just compliance; they secure a significant competitive advantage:

– Lower Landed Cost: The preferential tariff eliminates or drastically reduces the import duty in India, making the Vietnamese product’s final landed cost lower than competitors from non-AIFTA countries.

– Stronger Trade Relationships: Providing accurate C/O Form AI documentation and ensuring smooth customs clearance builds trust and strengthens relationships with Indian importers.

– Reduced Logistics Risks: Flawless documentation minimizes the risk of Customs holds, inspection mandates, and subsequent demurrage/detention costs, ensuring a faster supply chain and reliable delivery schedule.

The C/O Form AI remains the linchpin for successful and profitable Vietnam-to-India trade under the AIFTA. By treating your C/O Form AI application with the seriousness it deserves, you effectively transform a potential administrative hurdle into a strategic tool for growth and profitability in the vital Indian market.