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EVFTA is meant to eliminate 99% of all tariffs, reduce regulatory barriers, and open up services and public procurement markets

Vietnam - European Union Free Trade Agreement (EVFTA) has been operational since August 1st

Click on the flag for more information about Viet Nam VIET NAM
Sunday, August 02, 2020, 17:00 (GMT + 9)

The approval of EVFTA, along with the support measures, is considered to create great competitive advantages for Vietnam's exported seafood products, including tuna and surimi compared to other competing countries. .

The tariff preferences in EVFTA will bring undeniable opportunity for seafood businesses to export to the European market (EU). Some items will be subject to the  tariff rate mechanism (TRQ)  such as canned tuna and surimi. To help seafood businesses seize opportunities in EVFTA and have export production plans to take advantage of TRQ for canned tuna and surimi products, the Import and Export Department, Ministry of Industry and Trade, issued Dispatch 0737 / XNK-NS on the mechanism of management of import duty quotas on a number of agricultural and aquatic goods under EVFTA Agreement . 

In July of 2018 the European Union and Vietnam agreed upon the final texts for the European Union-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement. 

Import and Export Department  (MOIT)  said , focal agency of the EU responsible for the allocation and management of the TRQ for items subject to commitments in the Agreement EVFTA the Taxation and Customs (Directorate General Taxation and Customs Union - DG TAXUD). TRQs will be allocated and managed in accordance with Articles 49 to 54 of the Implementing Regulation (EU) 2015/2447.

Under  this regulation , EU importers will register with  DG TAXUD  to enjoy this preferential tariff quota. Imports into the EU under the TRQ will be allocated under the "business registered before the quotas before" (first-come, first-serve), based on the date that the application is granted import Exports are approved by EU customs authorities. 

For example, all applications for import licenses approved on August 1, 2020 (expected to be the effective date of the EVFTA Agreement) will be allocated TRQ in advance, and the remaining quota amount will be allocated for approved import licensing applications on August 2, 2020 and beyond.

On the Vietnamese side, businesses do not need to do any TRQ registration procedures with the Ministry of Industry and Trade. Businesses need to proactively follow up and discuss with EU partner businesses to determine the amount of quotas granted and agreed by the partners on the right delivery time.

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Enterprises should also note that in order to enjoy preferential treatment in TRQ, goods imported under this mechanism need to meet the rules of origin provided in the EVFTA Agreement. Specifically, goods of Vietnamese origin, when imported into the EU, need to submit a certificate of origin, a self-certification declaration of origin or a declaration of origin in accordance with  Article 15,  Protocol 1 of the Regulation on goods. origin and the mode of cooperation in administrative management of EVFTA.

And Circular 11/2020 / TT-BCT,  Vietnam originating imports into the European Union are entitled to preferential tariff treatment under EVFTA when one voucher certificate of origin following: 

  • Certificate  of origin ( C / O form EUR.1 )  issued under Article 4 and from Article 20 to Article 23 of Circular 11/2020. 
  • Self-certification of origin as prescribed in Article 25 of Circular 11/2020 issued by the exporter whose shipment is not more than 6,000 EUR. 
  • A self-certification document issued by a qualified exporter or exporter registered in a database in accordance with the regulations of the Ministry of Industry and Trade. 
  • The self-certification of origin of goods specified at Point c, Clause 2, Article 19 of Circular 19/2020 shall comply with the regulations of the Ministry of Industry and Trade and apply after Vietnam notifies the European Union.

Source: VASEP

For the declaration of C / O form EUR.1, the Import and Export Department has issued official dispatch 0811 / XNK-XXHH  providing guidance on documents certifying origin in EVFTA as follows:

1. To declare on  www.ecosys.gov.vn  for C / O issued by agencies or organizations authorized by the Ministry of Industry and Trade: Pursuant to Point a, Clause 2, Article 19 of Circular  11/2020 / TT-BCT. , for shipments valued at over EUR 6,000, apply the C / O mechanism issued by agencies and organizations authorized by the Ministry of Industry and Trade. The process of declaration and certification of C / O under EUR.1 is similar to the current C / O forms. 

2. Declaration on  www.ecosys.gov.vn  for cases where Dn issues self-certification of origin of goods: Pursuant to Point b, Clause 2, Article 19 of Circular 11/2020 / TT-BCT, with goods lots valued at no more than 6,000 EUR, any exporter is allowed to certify himself. The reporting and posting of documents certifying the origin of goods and documents related to export goods lots are certified by enterprises themselves according to Clause 6, Article 25 of Circular  11/202 / TT-BCT .

3. In case a trader exports goods to the United Kingdom, an agency or organization that issues C / O form EUR.1 instructs traders to declare C / O form EUR.1 or issue self-certification documents. Origin of goods according to Section 1, Section 2 above until December 31, 2020.
Author: Nguyen Ha /VASEP

[email protected]


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