Origin of goods- important requirement to enjoy EVFTA tariff preferences

Chủ Nhật, 07/06/2020, 16:15

In order for Vietnamese goods that are exported to the EU to enjoy preferential tariffs in the European Union-Vietnam Free Trade Agreement (EVFTA), businesses must obtain a thorough grasp of the provisions set out in the trade deal which stipulate very strict requirements regarding the origin of products, according to insiders.

origin of goods- important requirement to enjoy evfta tariff preferences hinh 0

Origin of goods is set to be important requirement to enjoy EVFTA tariff preferences

Phan Van Chinh, director of Import and Export Department under the Ministry of Industry and Trade, said that methods to ensure that the rules on the origin of goods are followed is viewed as a primary task when it comes to importing and exporting activities with the EU once the EVFTA is implemented.

There exists some advantages of the "cumulative" provision set out in the EVFTA, with enterprises needing to know them in order to be able to take full advantage of Vietnamese goods and products when exporting items to the EU, he noted.

According to experts, local exporters to the EU market must update new content such as the mechanism of self-certification of origin, a process which sees exporters declare the origin of their products as stipulated within documents submitted to the customs office of the importing country, as opposed to having to apply for a traditional certificate of origin from relevant agencies.

Nguyen Thu Trang, director of the Center for WTO and Integration of the Vietnam Chamber of Commerce and Industry (VCCI), said along with the timely promulgation of a Circular on the origin of domestic exports to the EU once the EVFTA takes effect, it is also necessary to issue a Circular to regulate rules and origin of goods from the EU to Vietnam.

The agricultural sector is viewed as one of the biggest beneficiaries of the EVFTA, largely due to rice, one of the country’s key export products, being forecast to increase by 65% to the EU by 2025, with the EU set to impose a tax rate of 0% on rice products in line with the roadmap set out in the trade agreement.

Consequently, the EVFTA will present a wave of fresh opportunities for Vietnamese businesses if they are suitably prepared and ready to capitalise on the benefits brought about by the trade pact.

The Import and Export Department is set to strengthen the State management over the granting of certificates of origin whilst simultaneously combatting fraud relating to goods. As a result, local firms will be supported when dealing with issues regarding verification of origin of goods as required by the EU as part of protecting the legitimate interests of Vietnamese businesses.

VNA