The EU-Vietnam Free Trade Agreement (FTA), signed on June 30th 2019 and which will be entered into force on August 01st 2020, is the most ambitious trade agreement that the EU has concluded with an emerging country.
From upcoming august 1st 2020, operators whose products originate in Vietnam will be able to benefit from the tariff preferences of the EU-Vietnam Agreement on import into the EU. And they will also be able to choose to continue to benefit from the unilateral concessions granted by the EU under the Generalized System of Preferences (GSP) for another 2 years.
Depending on the legal framework chosen, the relevant rules and proofs of origin will have to be respected.
Warning: Just because the product is bought in Vietnam, it doesn't mean that it originates from Vietnam within the meaning of the agreement.
PROOF OF ORIGIN
On the topic of import into the EU, in order to benefit from the preferences provided under the EU-Vietnam Agreement :
- For consignments whose total value of originating products does not exceed 6,000 euros, a declaration of origin on the invoice will be required,
- For consignments over 6,000 euros, the only possible proof of origin for import into the EU will be EUR1.
When exporting from the EU, the European exporters will be able to give their customers the advantages of the tariff preference when importing into Vietnam:
- For consignments whose total value of originating products does not exceed 6,000 euros, a declaration of origin on the invoice will be required.
- For shipments over 6,000 euros, the exporter will have to indicate his REX number (Registered EXporter). Click here to know more about the Registered Exporter system.
DATE OF ISSUE OF EUR1
The date of establishment of the declaration/attestation of origin or EUR.1 must be on or after the 1st of August 2020. In order to obtain a REX number, it is necessary to register. To find out more informatio, visit this link.
CUSTOMS DUTIES REDUCTION
The agreement provides for the eventual elimination of 99% of customs duties between the two parties.
For EU exports, 65% of Vietnam's applied duties will disappear upon entry into force of the agreement, with the remaining duties being phased out over a period of up to 10 years.
For Vietnamese exports, 71% of the duties applied by the EU will disappear on the date of entry into force of the agreement, with the remaining duties being phased out over a period of up to 7 years.
As the rates of reduction may vary from product to product, please contact our experts at contact@bcscustoms.com / Tel. +33 7 85 84 41 76