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Contact our teamThe agreement between the EU and Vietnam is a "new generation" agreement. It aims to facilitate import-export between the two parties. It has the following effects:
EVFTA thus offers mutual benefits to European and Vietnamese companies and also provides the citizens of each party with guarantees.
In accordance with the Agreement on the withdrawal of the United Kingdom and Northern Ireland from the European Union (2019/C 384 I/01) of 31 January 2020, international agreements to which the Union is a party are subject to Union law. The EVFTA is one of these international agreements to which the EU is a party.
Consequently, the provisions of the EVFTA are applicable to trade between the United Kingdom and Vietnam exclusively during the transitional period, i.e. until December, 31st, 2020.
From 1st January 2021, this trade relationship will be governed by a bilateral trade agreement between the two countries.
The Generalized System of Preferences (GSP) enjoyed by Vietnam as a developing country will continue to apply until December, 31st, 2022, despite the entry into force of the EVFTA.
In other words, until that date, Vietnamese exporters have the choice of exporting their products under the GSP tariff preferences or under EVFTA.
Due to the staggered tariff reductions provided by EVFTA, GSP tariff preferences may be more advantageous than the intermediate rates offered under EVFTA.
The text of the agreement and all its annexes are available in several languages on the Europa website of the European Commission.
The EU-Vietnam Investment Protection Agreement (EVIPA) was ratified by Vietnam on 8 June 2020, together with EVFTA.
Now, for EVIPA to enter into force, it needs to be ratified by all 27 Member States of the European Union.
There are 2 tariff schedules : the EU and Vietnam. Each of them mentions the base rates and dismantling categories applicable to products entering into their respective territories.
Therefore, to know the base rate and dismantling category applicable to Vietnamese garments exported to the EU, you should refer to the EU tariff schedule.
In other words, the applicable tariff schedule is that of the territory of destination.
To obtain the official tariff heading of your goods, it is possible to request Binding Tariff Information (“Renseignement tarifaire contraignant”).
The BTI allows you to obtain the customs nomenclature and therefore the tariff classification of goods that you really want to import or export and for which you have not yet made a customs declaration.
This document allows you to secure your future imports and/or exports.
This request can be made directly to the Office of Tariff and Trade Policy (COMINT3) of the Directorate General of Customs and Indirect Duties. It can also be made in a dematerialized manner via the SOPRANO-RTC teleservice.
It is valid for 3 years.
The goods concerned by a reduction of customs duties are classified by dismantling category (i.e : A; B3; B5; B7; B9; B10; B10*; B10**; B15).
Depending on the category, the reduction is more or less spread over time.
For example, the customs duties of a good classified in category "B5" are eliminated in 6 equal annual stages beginning on the date of entry into force of the EVFTA.
To calculate the rate of customs duty, you must refer to the corresponding tariff schedule and identify the base rate - i.e. the rate applicable before the entry into force of the EVFTA - and the product dismantling category.
The base rate should then be divided by the number of annual stages of the reduction to determine the rate of reduction per year.
For example, if the base rate for my originating product is 10% and its dismantling category is B3 (= Elimination in 4 equal annual installments) then each year the duty on my product will be reduced by 2.5 percentage points.
The first reduction occurred on August 1, 2020 - the date the EVFTA came into effect. Any subsequent annual reductions take effect on January 1 of the year concerned.
For the current rate of customs duties, you can consult the European Commission's database (for products destined for the EU) or that of the customs authorities (for products destined for Vietnam).
European exporters must self-certify the origin of their products by providing the customs authorities with an attestation/declaration of origin.
This attestation must be affixed to an invoice or any other commercial document issued by the exporter.
It must describe the originating products exported in sufficient detail to enable their identification.
Finally, the declaration must be signed by the exporter if the exporter is not registered in the REX system.
For exports from Vietnam to the EU, exporters have two ways to prove the origin of their goods :
The proof of origin must be registered at www.ecosys.gov.vn
For exports from the EU to Vietnam, the self-certification is the only admissible proof of origin.
Annex VII of the EVFTA Protocol states that each EUR.1 certificate must be printed on a "green guilloche pattern background making any falsification by mechanical or chemical means apparent".
However, due to the issuance of EUR.1 certificates with a blue guilloche background by the Vietnamese Ministry of Commerce and Industry, the Union has granted a grace period for these certificates. This period extends until December 31, 2020, inclusive.
The EUR.1 certificates concerned by this grace period are those of the series AA000001 to AA100000.
Thus, during this period, the certificates concerned cannot be refused by the European customs authorities because of the blue color of the guilloche background of the EUR.1 certificate.
Certificates with another serial number than those mentioned above are not concerned by this grace period.
Proofs of origin must be written in one of the languages in which the Agreement is drawn up. Therefore, they may be written in French or English.
However, the customs authorities of the importing country may request a translation of the declaration of origin into English.
The Vietnamese government has authorized 19 agencies to issue EUR.1 certificates of origin. The list of these agencies is available here.
The certificate of origin must be worded as follows :
The exporter of the products covered by this document (customs authorization n° ...) declares that, except where otherwise clearly indicated,
these products are of EU preferential origin.
.................................................................................................................................
(Place and date)
.................................................................................................................................
(Signature of the exporter ; in addition, the name of the person signing the declaration has to be indicated in clear script)
For EU exporters, the "customs authorization number" will be the REX number.
You must go to the Prodouane site and, in the SOPRANO tab, click on "Enter" in the following screen. Finally, choose the REX tab.
Yes. The REX number is a unique number. If you already have a REX number, you do not need to obtain a new one. The only formality you need is to complete a request to change your registered exporter status in order to Vietnam being included among your export countries in item 5 of your application.
Yes. Article 17 of Protocol 1 provides the possibility of issuing a proof of origin a posteriori. The proof of origin must be presented within a maximum period of 2 years after the entry of the goods into the territory.
3 years. You must keep a copy of the proofs of origin and supporting documents for a minimum period of 3 years. The conservation can be done in any form as long as these documents can be retrieved and printed.
Products originating from Vietnam can benefit from EVFTA’s tariff preferences by entering a document code on the proof of origin. These codes are :
The French customs services provide binding information on origin (“Renseignement contraignant sur l’origine”) free of charge. This document enables you to secure the origin status of your products, particularly in the context of trade agreements.
When imported into the EU, the information issued by the French customs office is enforceable against all customs administrations in the European Union.
It is valid for 3 years.
For more information, click here.
Under the rules of origin provisions, EVFTA provides that only fabrics originating in South Korea can be considered as originating in Vietnam.
However, if the manufacture from Chinese fabrics satisfies the sufficient works and processes mentioned in the EVFTA, these garments can be considered as "made in Vietnam" and benefit from the tariff advantages.
According to the principle of "non-alteration" mentioned in the Article 13 of Protocol 1, products may transit through third countries but they shall "not have been altered, transformed in any way or subjected to operations other than operations to preserve them in good condition or other than adding or affixing marks, labels, seals or any other documentation to ensure compliance with specific domestic requirements of the importing Party”
Thus, products and consignments may transit through the territory of a third country but they shall be under the supervision of the customs authorities during their entire transit.
The EU is committed to protecting 39 Vietnamese GI’s.
Only the products listed in Annex 12A of the EVFTA are concerned. However, this list is not definitive and the agreement provides for the possibility of adding new products to extend the protection to these goods.
For its part, Vietnam has committed to protect 169 European GI’s.
If you have any questions about managing or protecting your intellectual property rights in South East Asia, you can contact the IPR SME Helpdesk either by email or directly by phone at +84 28 38 25 81 16.
European companies will be able to access Vietnamese public procurement. However, these companies will only be able to bid on conditions that respect the thresholds set out in the agreement.
Over the next 15 years, the value of the thresholds will be lowered regularly. So, that European companies can increasingly penetrate this sector of activity.
Vietnam and the EU are committed to publish and make available electronically free of charge contract notices through a single access point.
For information on the EU public procurement system, click here.
Information on Vietnam's procurement system can be found here.
During a transitional period of up to 10 years, Vietnamese procurement notices may be published exclusively in the Báo Đấu thầu (Procurement Journal).
At the EU level, notices are published at the following address: http://ted.europa.eu
© Article written by the France-Vietnam Chamber of Commerce and Industry (CCIFV). Reproduction rights reserved. |