EVFTA Agreement has given opportunities and prospects in the comprehensive partnership between Vietnam and the EU. With regard to the Rules of Origin of Goods in the EVFTA Agreement, the following 04 contents should be noted.
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Vietnam: 04 notable contents regarding the Rules of Origin of Goods specified in the EVFTA Agreement (Illustrative image)
1. Guidance on determining the origin of goods according to the EVFTA Agreement in Vietnam
According to the provisions in Article 5 of Circular 11/2020/TT-BCT, the following goods in Vietnam are considered as originating according to the EVFTA Agreement:
- Goods wholly obtained in a Party, including:
+ plants and vegetable products grown and harvested or gathered there.
+ live animals born and raised there.
+ products from live animals raised there.
+ products from slaughtered animals born and raised there.
+ products obtained by hunting or fishing conducted there.
+ products of aquaculture, where the fish, crustaceans and molluscs are born or raised there from eggs, fry, fingerlings and larvae.
+ products of sea fishing and other products taken from outside any territorial sea by its vessels.
+ products made aboard its factory ships exclusively from products referred to in Point h, Clause 1, Article 6, Circular 11.
+ used articles collected there which are only fit for the recovery of raw materials.
+ waste and scrap resulting from manufacturing operations conducted there.
+ products extracted from the seabed or below the seabed which is situated outside any territorial sea but where it has exclusive exploitation rights.
+ goods produced there exclusively from the products specified above.
- Goods obtained in a Party incorporating materials that have not been wholly obtained there, provided that such materials have undergone sufficient working or processing in the Party when the applicable product-specific rules of origin in Appendix II attached to Circular 11/2020/TT-BCT are fulfilled.
2. Permission to use non-originating materials in Vietnam
In Article 8 of Circular 11/2020/TT-BCT, in case materials do not meet the applicable product-specific rules of origin in Appendix II, the value or weight limit exceeds any of the percentages for the maximum value or weight of non-originating materials specified in Appendix I, or materials are goods wholly obtained in a Party, non-originating materials may nevertheless be used, provided that their total value or net weight assessed for the product does not exceed:
- 10 percent of the weight of the product or ex-works price for products of Chapters 2 and 4 to 24 of the HS, other than processed fishery products referred to in Chapter 16 of the HS.
- 10 percent of the ex-works price of the product for other products, except for products of Chapters 50 to 63 of the HS.
-The tolerances mentioned in Notes 6 and 7 of Appendix I issued with Circular 11/2020/TT-BCT apply for products of Chapters 50 to 63 of the HS.
3. Mechanisms for certification of the origin of goods under the EVFTA Agreement in Vietnam
According to the provisions in Article 19 of Circular 11/2020/TT-BCT, products originating in the Union shall, on importation into Viet Nam, benefit from EVFTA upon submission of any of the following proofs of origin:
- Certificate of origin of goods ("C/O") made in form EUR.1 issued by the competent authority of the exporting country;
- an origin declaration by an approved exporter within requirements of the Union for any consignment regardless of its value; any exporter for consignments the total value of which does not exceed 6.000 EUR (six thousand euros).
- a statement of origin made out by exporters registered in an electronic database in accordance with the relevant legislation of the Union after the Union has notified to Viet Nam.
At the same time, products originating in Vietnam shall, on importation into the Union, benefit from EVFTA upon submission of any of the following proofs of origin:
- Certificate of origin of goods ("C/O") made in form EUR.1 of Vietnam;
- An origin declaration made by any exporter for consignments the total value of which shall not exceed 6.000 EUR (six thousand euros);
- An origin declaration made out by an exporter approved or registered in accordance with the relevant legislation of the Ministry of Industry and Trade (Note: the origin declaration shall be made out in accordance with regulations of the Ministry of Industry and Trade and apply after Viet Nam has notified to the Union).
4. Exemptions from proof of origin under the EVFTA Agreement in Vietnam
Specifically, in Article 29 of Circular 11/2020/TT-BCT, goods exempt from proof of origin under the EVFTA Agreement in Vietnam include:
- Products sent as small packages from private persons to private persons or forming part of travellers' personal luggage shall be admitted as originating products without requiring the submission of a proof of origin, provided that such products are not imported by way of trade and have been declared as meeting the requirements of this Circular and where there is no doubt as to the veracity of such declaration. In the case of products sent by post, this declaration can be made on the import customs declaration or on a sheet of paper attached to that document.
- Imports which are occasional and consist solely of products for the personal use of the recipients or travellers or their families shall not be considered as imports by way of trade if it is evident from the nature and quantity of the products that no commercial purpose exists.
Note: Total value of the good provided above may not exceed:
- when entering the Union, 500 EUR (five hundred euros) in the case of small packages or 1.200 EUR (one thousand two hundred euros) in the case of products forming part of travellers' personal luggage.
- when entering Viet Nam, 200 USD (two hundred US dollars) both, in the case of small packages and in the case of products forming part of travellers' personal luggage.
Ty Na
