Thursday 19 November, 2020
On June 15, 2020, the Ministry of Industry and Trade issued Circular 11/2020/TT-BCT providing the Rules of Origin under the EVFTA.
To implement Circular 11/2020/TT-BCT, the Import-Export Department of the Ministry of Industry and Trade provided the following guidance on proof of origin under the EVFTA:
– Declaration on www.ecosys.gov.vn where the C/O is issued by an agency or organization authorized by the Ministry of Industry and Trade:
+ Pursuant to Point a, Clause 2, Article 19 of Circular 11/2020/TT-BCT, for consignments valued at more than EUR 6,000, the mechanism under which a C/O is issued by an agency or organization authorized by the Ministry of Industry and Trade applies. The declaration and certification process for EUR.1 C/Os is carried out similarly to existing C/O forms.
+ The EUR.1 C/O declaration is made in accordance with the detailed instructions in Appendix I attached to Official Letter 0811/XNK-XXHH.
– Declaration on www.ecosys.gov.vn where the enterprise makes out an origin declaration:
+ Pursuant to Point b, Clause 2, Article 19 of Circular 11/2020/TT-BCT, for consignments valued at no more than EUR 6,000, any exporter is permitted to self-certify origin.
+ Reporting and uploading the origin declaration and documents relating to the export consignment for which the enterprise self-certifies origin shall be carried out in accordance with Clause 6, Article 25 of Circular 11/2020/TT-BCT.
– Where a trader exports goods to the United Kingdom, the agency or organization issuing EUR.1 C/Os shall instruct the trader to declare only an EUR.1 C/O or make out an origin declaration in accordance with Sections 1 and 2 of Official Letter 0811/XNK-XXHH through December 31, 2020.
To support traders exporting goods in making use of EVFTA preferences, the Import-Export Department of the Ministry of Industry and Trade requested agencies and organizations issuing EUR.1 C/Os to implement the guidance and instruct traders accordingly.
Official Letter 0811/XNK-XXHH was issued on July 30, 2020.
On April 9, 2020, the Import-Export Department of the Ministry of Industry and Trade issued Official Letter No. 0360/XNK-XXHH to the General Department of Customs under the Ministry of Finance, notifying it of the European Commission’s note concerning the origin-certification mechanism applied by the EU under the EVFTA and requesting the General Department of Customs to study and implement it.
According to the EC’s official notification, the EU would apply the origin-certification mechanism specified in Clause 1(c), Article 15, Protocol 1 of the EVFTA, namely self-certification of origin through the REX (Registered Exporter System). This provision is guided by Clause 1(c), Article 19 of Circular No. 11/2020/TT-BCT dated June 15, 2020 of the Minister of Industry and Trade on Rules of Origin under the EVFTA.
The EU also notified that it would not apply the origin-certification mechanisms specified in Clause 1(a) and Clause 1(b), Article 15, Protocol 1 of the EVFTA (guided by Clause 1(a) and Clause 1(b), Article 19 of Circular No. 11/2020/TT-BCT).
Under this EC notification, Vietnam would grant preferences to consignments originating in the EU on the basis of an origin declaration made out by an exporter registered with a REX number, or by any exporter for consignments valued at no more than EUR 6,000.
Information on the EU REX system is available at the following links:
To facilitate implementation of the EVFTA (which entered into force on August 1, 2020), on July 18, 2020 the Ministry of Industry and Trade sent a further document to the Ministry of Finance requesting that, based on the notification in EC Note Ares(2020) 1982973, the Ministry of Finance direct the General Department of Customs to promptly issue guidance to local customs authorities and enterprises on import procedures and origin declarations for goods imported from the EU into Vietnam in order to receive preferential tariffs under the EVFTA.
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