On June 08, 2020, the EU - Vietnam Free Trade Agreement (EVFTA) was officially approved. The Circular No. 11/2020/TT-BCT has clearly identified goods considered as wholly obtained in accordance with EVFTA.
Article table of contents
Specifically, according to Article 6 of the Circular No. 11/2020/TT-BCT of the Ministry of Industry and Trade of Vietnam, goods are considered as wholly obtained in a Party in accordance with EVFTA in the following cases:
1. Mineral products extracted from their soil or from their seabed.
2. Plants and vegetable products grown and harvested or gathered there.
3. Live animals born and raised there.
4. Products from live animals raised there.
5. Products from slaughtered animals born and raised there.
6. Products obtained by hunting or fishing conducted there.
7. Products of aquaculture, where the fish, crustaceans and molluscs are born or raised there from eggs, fry, fingerlings and larvae.
8. Products of sea fishing and other products taken from outside any territorial sea by its vessels.
9. Products made aboard its factory ships exclusively from products referred to in point h Clause 1 Article 6 of Circular No. 11/2020/TT-BCT.
10. Used articles collected there which are only fit for the recovery of raw materials.
11. Waste and scrap resulting from manufacturing operations conducted there.
12. Products extracted from the seabed or below the seabed which is situated outside any territorial sea but where it has exclusive exploitation rights.
13. Goods produced there exclusively from the 12 products specified above.
Concurrently, the following definitions for goods considered as wholly obtained in accordance with EVFTA should be noted:
First: For the purposes of (2), “plants and vegetable products” includes live trees, flowers, fruits, vegetables, seaweeds and fungi.
Second: The terms "its vessels" and "its factory ships" in (8) and (9) apply only to vessels and factory ships which:
- are registered in, fly the flag of Vietnam or a Member State of the Union and they are at least 50 percent owned by natural persons of a Party.
- are registered in, fly the flag of Vietnam or a Member State of the Union and they are owned by legal persons which have their head office and main place of business in the Party. The legal persons are at least 50 percent owned by a Member State of the Union or by Vietnam or by public entities or nationals of a Party.
In addition to goods considered as wholly obtained in accordance with EVFTA, Article 7 of Circular No. 11/2020/TT-BCT also stipulates that not wholly obtained goods are considered to be sufficiently worked or processed when the applicable product-specific rules of origin in Annex II hereto appended are fulfilled. Concurrently, regarding materials used in the manufacture of products, goods:
- The applicable product-specific rules of origin apply solely to non-originating materials.
- If a product which has acquired originating status by fulfilling the conditions set out in the Annex II is used in the manufacture of another product, the conditions applicable to the product in which it is incorporated do not apply to it, and no account shall be taken of the non-originating materials which may have been used in its manufacture.
Ty Na
- Key word:
- Circular No. 11/2020/TT-BCT
