July 06, 2020 19:11

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Promulgating regulation on the rules of origin in EVFTA

09:42 | 27/06/2020

VCN – The Minister of Industry and Trade signed Circular No.11/2020/TT-BTC stipulating the rules of origin in the Europe – Vietnam Free Trade Agreement (EVFTA).

promulgating regulation on the rules of origin in evfta
EVFTA is considered as a "high speed road" bringing Vietnamese goods into the EU market. Photo: Internet

The circular stipulates the implementation of rules of origin in the EVFTA applying to subjects as agencies, organisations granting certificate of origin (C/O) and traders. The circular is an important legal document guiding agencies and organisation granting preferential C/O as well as communities in the implementation of the rules of origin in the EVFTA.

Right after the EVFTA takes effect, Vietnam’s goods exporting to EU market will be granted C/O form EUR.1 in accordance with Circular No.11/2020/TT-BTC and enjoy preferential tariffs under EVFTA.

The granting of C/O form EUR.1 for goods exported to the EU under the EVFTA will be implemented by authorities and organisations granting preferential C/O authorised by the Ministry of Industry and Trade.

The early promulgation of the circular guiding the rules of origin in EVFTA is one of the specific actions on developing and completing the domestic legal basis in the Action Plan of implementation of the EVFTA of the Ministry of Industry and Trade.

According to the assessment of Ministry of Industry and Trade, compared to other free trade agreements (FTAs) that Vietnam is participating in, such as ASEAN FTAs ​​ or bilateral FTAs, the rules of origin in EVFTA have many new points and are more complex, both in terms of interpretation of the criteria and accompanying regulations.

Some items such as textiles, processed cuttlefish and octopus can accumulate origin with materials from non-member countries, the mechanism of certification and verification of origin of goods, and division of goods in a third country besides the agreement, special provisions on territory are considered as new points in the EVFTA.

Besides that, according to the provisions of the EVFTA, on the date of EVFTA taking effect, goods are in member countries or in the process of transportation, temporary storage, deposit in bonded warehouses or in non-tariff areas, can enjoy preferential tariffs with the condition of submitting the following certificates of origin to customs authorities of member countries.

Circular No. 11/2020/TT-BCT issued is a necessary condition for Vietnamese enterprises to take advantage of tariff preferences from the first days when EVFTA takes effect.

The circular takes effect from August 1, 2020.

To help businesses take advantage of preferential tariffs as soon as the EVFTA comes into effect, the Ministry of Industry and Trade also stated there were many synchronous solutions in the Action Plan, including four major action groups.

Specifically, communicating and disseminating information about the EVFTA and markets of partner countries in the EU; building laws and institutions; improving competitiveness and developing human resources; undertakings and policies towards trade unions and labourer's organisations at the headquarters of enterprises.

By Thanh Nguyễn/Thanh Thuy