On June, 15th 2020, the Ministry of Industry and Trade imposed Circulars 11/2020/TT-BCT on Rules of origin of goods in the Free Trade Agreement between Vietnam and the European Union. Origin of each type of goods is specified in each chapter and annex attached to the Circular (EVFTA).
EVFTA will take effect by this August with many preferential tariffs for member countries, so it is necessary to impose regulation on determining the origin of goods immediately.
The Circular specifies goods of pure origin or non-pure goods in order to determine whether the goods are eligible for preferential tariffs. Besides, the principles of territory, intermediaries, processing stages are also fully prescribed.
About Certificate of Origin, C/O form EUR.1 will be applied for all goods from member countries with the form in Annex VI of the Circular.
However, the REX System, EU self- certification system took effect from 2020 in Vietnam and this September will be the deadline for manufacturers to register their REX codes so they can register for their goods themselves. The REX System is also mentioned in this Circular. If the manufacturers registered REX Code, they can self- certification their goods under REX System and export goods to EU without C/O form EUR.1.
Attached to the Circular are appendices regulating how to identify the origin of specific goods cases such as seafood, textile products, and rules specific to each item.
EVFTA is considered a turning point for Vietnam’s economy when many types of goods are exempted or reduced from import tax if originating from Vietnam. With the commitment to immediately reduce taxes on many types of goods and the roadmap of reducing taxes on other specific goods, the EU creates a competitive advantage for Vietnamese goods for the economy of 28 member states’ prosperity.
Because of this advantage, many manufacturers from other countries want to use different methods to get certificates of origin of goods and enjoy preferential tariffs as goods originating from Vietnam.
Recognizing these dangers, the Ministry of Industry and Trade promptly issued a circular guiding the availability of a legal corridor right after the Agreement comes into effect.
In addition, REX Code is also an important highlight for manufacturers as they will save time for C / O form EUR.1 in the export of goods.
To better understand trade defense policies or technical barriers, please feel free to contact us:
Ms Lan – Juridical Manager of MRS Steel
Mobile – WhatsApp: 00 84 962343746.