To: Provincial Customs Departments.

The EU-Vietnam Free Trade Agreement (EVFTA) comes into force from August 01, 2020. In order to implement the EVFTA commitments on rules of origin, the Ministry of Industry and Trade has promulgated the Circular No. 11/2020/TT-BCT dated June 15, 2020 prescribing the rules of origin under EVFTA, which comes into force from August 01, 2020.

Pending the promulgation of a Decree providing the preferential export tariff schedule and special preferential import tariff schedule for implementation of EVFTA, the General Department of Customs hereby gives the following opinions for the purpose of implementing EVFTA commitments on rules of origin:

1. With regard to a customs declaration for imports registered on or after August 01, 2020, if a proof of origin which is issued on or after August 01, 2020 is submitted, the customs authority shall instruct the customs declarant to provide information about that proof of origin on the customs declaration as prescribed in Article 5 of the Circular No. 38/2018/TT-BTC dated April 20, 2018 (as amended in the Circular No. 62/2019/TT-BTC dated September 05, 2020) and then receive the complete customs declaration as prescribed.

2. With regard to application of the mechanism for self-certification of origin by EU under EVFTA according to the Official Dispatch No. 6123/BCT-XNK dated August 18, 2020 of the Ministry of Industry and Trade:

According to the official notice issued by EC in the Formal Letter No. Ares(2020) 1982973, EU shall apply the mechanism for certification of origin as per Clause 1(c) Article 15 in the Protocol 1 annexed to EVFTA, i.e. self-certification of origin carried out according to the REX (Registered Exporter System). This regulation is explained in Clause 1(c) Article 19 of the Circular No. 11/2020/TT-BCT dated June 15, 2020 of the Minister of Industry and Trade prescribing the rules of origin under EVFTA.

EU also stated that the mechanism for certification of origin prescribed in Clause 1 (a) and Clause 1 (b) of Article 15 in the Protocol 1 annexed to EVFTA shall not apply (this is explained under Clause 1 (a) and Clause 1 (b) of Article 19 of the Circular No. 11/2020/TT-BCT).

In compliance with this notice from EC, Vietnam will grant preferential treatment for shipments of EU origin on condition that the origin declration for each shipment is issued by the exporter that has a valid REX number, or by any exporter to certify that total value of the shipment does not exceed EUR 6,000.

Information about the REX system of EU may be found by accessing:

- https://ec.europa.eu/taxation_customs/business/calculation-customs-dutles/rules-origin/generaI-aspects-preferential-origin/arrangements-list/generallsed-system-preferences/the_registor_exporter_system_en

- https://ec.europa.eu/taxation_customs/sites/taxation/files/registered_exponer_system_rex_-_guidance_document_v1_en.pdf

3. Origin declarations under EVFTA shall be submitted in accordance with the provisions in Article 7 of the Circular No. 38/2018/TT-BTC dated April 20, 2018 (as amended in the Circular No. 62/2019/TT-BTC dated September 3, 2020).

During the COVID-19 pandemic (disease caused by severe acute respiratory syndrome coronavirus), time for submission of origin declarations shall comply with the Circular No. 47/2020/TT-BTC dated May 27, 2020 governing required time for submission of proofs of origin and types of proofs of origin of imports.

Provincial Customs Departments are requested to comply with instructions herein./.

---------------

This document is handled by Vinas Doc. Document reference purposes only. Any comments, please send to email: [email protected]