Obstacles when preparing documents certifying the origin of goods entering the US

In the context of global economic integration and increasing pressure from US trade policy under President Donald Trump, Rules of Origin (ROO) have become one of the major challenges for Vietnamese businesses when exporting to this market. With new tariff policies implemented from the beginning of 2025, the preparation of a Certificate of Origin (C/O) is not only a normal administrative procedure but also a decisive factor to avoid being subject to penalties, refusal of customs clearance, or loss of the opportunity to compete in one of the world's largest markets. However, this process is posing a series of complicated obstacles, from cumbersome procedures, strict dossier requirements, to the internal limitations of Vietnamese enterprises. This article will point out the difficulties that businesses face when applying for C/O in the current context.

Source: The Saigon Times

Context of the new US tariff policy

Since taking office for a second term on January 20, 2025, President Donald Trump has quickly fulfilled his "America First" pledge by introducing new tariffs aimed at reducing the U.S. trade deficit with other countries. A memorandum of understanding signed on February 13, 2025 on reciprocal tariffs further clarifies President Donald Trump's administration's intention to impose tariffs equal to or higher than those of countries whose trade policies are deemed "unfair"[1]. Vietnam, with its large trade surplus with the U.S. (estimated at $110 billion in 2024),[2] has become one of the main targets of this policy.

Moreover, in order to prevent Chinese goods "disguised" as goods from other countries to avoid high tariffs, the US Customs has strengthened origin inspection measures, including unscheduled inspections at production facilities and the request for more detailed additional documents. This not only increases the pressure on businesses but also makes preparing C/O documents more complicated than ever.

Key export industries such as textiles, footwear, electronics, furniture, agriculture – fisheries – seafood, steel and aluminum – which account for a large proportion of exports to the US (accounting for 64.3% of total export turnover to the US in 2024)[3] – are directly affected by these changes. For example,  the textile industry, with exports of more than $26 billion to the U.S. in 2024[4], is facing great pressure. To avoid the tariffs that the U.S. intends to impose on Chinese goods, businesses must prove that the fabric is woven domestically or from non-Chinese sources through fabric import invoices and documents from suppliers. However, the majority of fabrics imported from China do not meet the transparency requirements, and many suppliers refuse to provide detailed information, making it impossible for businesses to complete C/O documents.

The following are the types of visible obstacles to C/O issuance

The issue of imported raw materials and the burden of transparency from the dossier

One of the biggest obstacles that Vietnamese businesses face is heavy dependence on imported raw materials, especially from China – the country that is being imposed the highest tariffs by the US. Industries such as textiles, electronics, steel, and footwear often use raw or semi-finished materials from China, making it extremely difficult to prove "pure origin" or "substantial transformation." In order to be issued a C/O (usually a non-preferential form B when exporting to the US), enterprises must submit a series of important documents, including invoices for the purchase of raw materials, supply contracts, customs declarations for import of raw materials, and an explanation of the production process.

However, the collection and presentation of these documents is not simple. For example, invoices for purchasing raw materials from Chinese suppliers often lack specific origin details (e.g., where the raw materials were produced before arriving in China), or are not presented in a format accepted by U.S. Customs. Meanwhile, import customs declarations require an exact match to other documents in terms of HS (Harmonized System Code), quantity, and value – a requirement that many businesses fail to meet due to errors in recording or lack of synchronization between departments.

Moreover, U.S. Customs may require a list of Tier 2 and Tier 3 suppliers – i.e. suppliers of raw materials to direct suppliers of Vietnamese enterprises – to reverse check the entire supply chain. This is a requirement beyond the capabilities of many businesses, especially small and medium-sized enterprises, which do not have control or access to information from overseas suppliers. If these requirements are not met, the goods are at risk of being considered "unclear origin" and subject to the highest tax rate, even being refused customs clearance.

Complex content in value-added spreadsheets

Another obstacle involves the requirement to compile a Regional Value Content (RVC) spreadsheet, a document that U.S. Customs sometimes requires to determine the percentage of domestic value in a product. For some items such as electronics, automobiles, or textiles, the U.S. may require an RVC rate of 35-40% to be considered "of Vietnamese origin" and avoid punitive duties. The preparation of the RVC table requires a detailed analysis of components such as domestic raw material value, labor costs, production costs, and profits in the total product value – a process that requires absolute accuracy and a deep understanding of international regulations.

However, the majority of Vietnamese enterprises, especially small and medium-sized enterprises, do not have a team of professional personnel to carry out this task. For example, when calculating the value of domestic raw materials, businesses must completely exclude raw materials imported from China, but accurately determining the origin of each component in a product (such as fabric fibers, electronic components, or chemicals) is a big challenge. Many businesses do not adequately store invoices or documents from domestic suppliers, resulting in the inability to prove the RVC rate. Even if the RVC is prepared, a small error in the calculation or presentation can cause U.S. Customs to reject it, leading to additional requests or additional checks – a process that is time-consuming and resource-intensive.

Cumbersome procedures and inconsistent documents

The process of applying for a C/O in Vietnam, implemented by the Vietnam Chamber of Commerce and Industry ("VCCI") or the Ministry of Industry and Trade, is in fact increasing obstacles. Businesses must submit a lengthy set of documents, including an application for C/O (according to the form), commercial invoices, packing lists, bills of lading, and sometimes product samples, photos of the production process, or certifications from raw material suppliers. However, these documents must be prepared with absolute accuracy, as any discrepancy – such as the HS code on the export declaration is different from the code on the C/O, or the inconsistent description of the goods – will result in the dossier being returned for supplementation.

In fact, the processing process at VCCI or the Ministry of Industry and Trade usually lasts from 1-3 days if the dossier is complete, but it can be up to a whole week if it needs to be edited or supplemented. With export shipments to the U.S. – which requires fast delivery to meet market demand – this delay is a major disadvantage. Moreover, the lack of consistency in the application of regulations between C/O issuing agencies in localities further increases the complexity. For example, a business in one locality may be accepted with fewer documents than a business in another locality, leading to confusion and time-consuming adjustments to specific requirements.

Carelessness within the business also contributes to exacerbating the problem. Many businesses do not have close coordination between accounting, import-export, and production departments, leading to misinformation between commercial invoices and customs declarations. For example, if the value of the goods on the invoice does not match the bill of lading, U.S. Customs may suspect fraud and require additional inspections, prolonging customs clearance and increasing the risk of fines.

Source: The Saigon Times

The level of rigor and uncertainty from US regulations and policies has not been anticipated

The new U.S. tariff policy under President Donald Trump has undergone significant changes and was implemented abruptly. This uncertainty poses a major challenge for Vietnamese businesses, which are not used to adapting quickly to sudden changes. Unlike free trade agreements (FTAs) such as the EVFTA or CPTPP, where the rules of origin are clearly defined, the current U.S. requirements are industry-specific and subject to change at the discretion of U.S. Customs or the U.S. Trade Representative.

Many businesses, especially small and medium-sized businesses, lack a team that is knowledgeable about the U.S. process of origin. For example, filling out a Form B C/O requires accuracy in information such as HS code, origin of goods, and valid signatures, but many businesses do not know how to present it or are unaware that U.S. Customs may request additional certification from the raw material supplier at any time. When being inspected unexpectedly, businesses often fall into embarrassment because they are not prepared, leading to goods being detained at the port or being imposes unexpectedly high taxes.

High costs and legal risks from errors of origin

C/O preparation is not only time-consuming but also comes with significant costs. Businesses must pay the C/O issuance fee (600,000 VND/time), the cost of translating documents if they need to present in English, and the cost of personnel to process the documents. For industries that are subject to strict US inspections - such as steel and aluminum (which have been subject to 25% anti-circumvention duties) - businesses also have to invest more in document storage systems to deal with reverse inspection from US Customs. However, not all businesses have enough financial resources to meet this requirement.

Legal risk is also a serious problem. If U.S. Customs detects a violation of origin — such as goods containing Chinese ingredients but falsely declaring them as "of Vietnamese origin" — the business may be fined, confiscated, or blacklisted.

In the context of the new US tariff policy under President Donald Trump, the preparation of certificates of origin of goods has become one of the major challenges for Vietnamese businesses, from the dependence on imported raw materials, the complex content in the RVC table to cumbersome administrative procedures. These difficulties not only slow down the export progress but also threaten Vietnam's position in the US market – where the requirements for speed, transparency, and compliance are increasingly strict. In the immediate future, this is still a difficult problem, requiring full awareness of the complexity that Vietnamese businesses are facing.