To what extent export shipments to the EU are granted certificates of origin under the Vietnam – European Union Free Trade Agreement (EVFTA) (which should be understood as issuing the /O form), according to the Ministry of Industry and Trade EUR.1) currently accounts for 20% of total exports to the EU.

Leverage RATE IS 20% – WIDE POSITIVE NUMBER

At the seminar “Increasing the origin of Vietnam’s exports to the EU in the EVFTA,” Ms. Trinh Thi Thu Hien, Head of Commodity Origins Department, Import and Export Department (Ministry of Industry and Trade), said it was a good number… positive .

More specifically, Ms. Hien said that exports to the EU are mainly granted to C/O for markets with seaports or distribution centers in Europe, such as Belgium, Germany and the Netherlands and France… These are currently high-volume products that are granted under the EVFTA framework Certificates of origin include leather and shoes, seafood…

Specific figures related to products and markets can be seen very clearly, such as: C/O exported to Germany received $3.2 billion in the first two years of EVFTA implementation, to Belgium 3, 5 billion.

“The figure of 20% of export sales to the EU granted C/O Form EUR.1 shows that the EVFTA has promoted the initial effectiveness of a substantial and much-anticipated agreement,” Ms. Hien assessed.

However, according to Ms. Hien, the declaration of 20% of the turnover of goods granted on C/O Form EUR.1 does not mean that the remaining 80% of the turnover is subject to a high tax. To make this clearer, the import-export department representative said that there are tariff lines in the WTO that are already 0%, no certificate of origin is required.

On the other hand, for goods exported to the EU, there may be another option, namely tariff preferences under the EU’s Universal Tariff Regime (GSP) for underdeveloped and developing countries, including Vietnam.

In addition, the company also certifies the origin itself for shipments with a turnover of 6000 euros or less.

In addition, Ms. Hien emphasized that the figure of 20% is just a general figure about the percentage of Vietnamese export sales that will be granted under EVFTA C/O and this rate will vary greatly in each market.

For example, for goods exported to the Luxembourg market this rate is 77%, for the Belgian market this rate is around 50%. For individual items such as leather and shoes, the rate is over 90% and for fish products it is over 77%.

From the point of view of export companies, Ms. Phan Thi Thanh Xuan, Vice President and Secretary General of the Vietnam Leather, Footwear and Handbag Association, confirmed that the EVFTA agreement has contributed very well to the export successes of the leather and shoe industry. Before the entry into force of the EVFTA, the export share of the leather and footwear industry to the EU market was only around 22-23%, after the entry into force of the agreement this share rose to 26%.

According to Ms. Xuan, especially in the past two years when the leather and footwear industry was hit by the Covid pandemic, almost all exports to the markets had declined, but thanks to the EVFTA deal, the leather and footwear industry survived. exported to the EU market, there will also be growth in 2021.

As a result, in 2021, the industry’s export turnover still reached the set plan and in the 9 months of 2022, the growth of the EU market is quite good at 15% and almost all exports to the bloc’s markets are stable. Growth rate of 15-20%.

ENCOURAGE SUPPORTING BUSINESSES IN THE USE OF INCOME, AVOID RISKS

In order to further increase the origin rate for Vietnamese goods exported to the EU, Ms. Hien said the Ministry of Industry and Trade is continuing to discuss the development of legal documents on the origin of goods to create a legal corridor and have specific and transparent ones Regulations on this subject and in which sanctions are given a great deal of attention.

At the same time, the Ministry is making efforts and actively coordinating with relevant authorities such as the Chief Customs Authority and industry associations to provide timely education and training, and to shape and guide companies to meet the right requirements under strict EU regulations.

Also, coordinate with the customs authority of the importing country so that, in the case of an origin verification application, the Department of Industry and Trade will assist companies in proving the origin of goods in the right case, that the goods comply with the provisions of EVFTA.

Conversely, if the goods do not match the origin, the Ministry of Industry and Trade will work with the EU to find out and take timely action to combat origin fraud.

Another important measure is the Ministry’s active coordination with industry associations and companies to consult and propose to develop rules of origin that correspond to the reality of companies and the current production process.

Another equally important measure is to speed up the reform of administrative procedures, including the acceptance and treatment of problems, as well as answering and solving difficulties of exporters to the EU related to the origin of goods.

Ms. Xuan also suggested that the state and municipalities must create conditions to use the incentives of the EVFTA to expand the development of resource areas with new and green technologies that can meet the requirements of EU standards.

A policy of attracting high-tech resources from the EU, helping companies improve their design capabilities to add value to products. Simultaneously equipping with knowledge and building capacity to expand market space and opportunities for small and medium-sized enterprises.

In addition, companies must take the initiative to take advantage of preferential certificates of origin and other incentives of the EVFTA agreement.