In order to guide the implementation of the commitments in the framework of the Agreement, the Ministry of Industry and Trade issued Circular No. 21/2016 / TT-BCT dated September 20, 2016 guiding the implementation of the rules of origin of goods in the Agreement free trade between Vietnam and the Eurasian economic Union.

Free Trade Agreement between the Republic of Vietnam Socialist Union and the Eurasian Economic Union member countries (VN-EAEU FTA), signed in Burabai (Kazakhstan) May 29, 2015 and with effect from October 5, 2016.

In order to guide the implementation of the commitments in the framework of the Agreement, the Ministry of Industry and Trade issued Circular No. 21/2016 / TT-BCT dated September 20, 2016 guiding the implementation of the rules of origin of goods in the Agreement free trade between Vietnam and the Eurasian economic Union. Circular issued with the Annex on:

– Rules of Origin;

– Product specific Rules;

– List of the island;

– Form C / O and guidance declare C / O; and

– List of the C / O.

Rules of Origin of FTA VN-EAEU there are several points to note are as follows:

1. Suspend preferential terms

VN-EAEU FTA FTA allows the importer to suspend tariff preferences if a fraudulent origin or uncooperative exporter origin verification a systematic way. Stop importing Party applies preferential step by step:

– For shipment violated;

– For goods related businesses;

– For all identical goods as classified by category of goods (level 8-10 HS number) if the previous measures are not enough to prevent frauds.

Before applying the terms, the two sides have carried out in close consultation process to fix the problem. Time suspended preferential application is 04 and 03 months which may be extended.

Enterprises need to distinguish Terms Pause for incentives above and Terms Refusing to incentives. Terms Refusing to incentives only apply to shipments originating suspected fraud at the time of importation. This provision shall not apply to goods related or business related. Shipment will be entitled to preferential tariff after verification results achieved under the FTA origin VN-EAEU.

2. Direct Purchase Terms

This provision allows the application of invoices third countries outside the agreement but excludes some of the island nation Eurasian Economic Union that the risk of commercial fraud. Due to the tax policy of this island country (0% import tax), increasing commodity tax fraud involving the issuance of bills intermediary company based in that island states. The competent authorities of the two sides to negotiate, draw up a list of 30 island states are not applicable when the bill third country import and export goods between Vietnam and the Eurasian Economic Union.

3. Provisions on administrative cooperation

VN-EAEU FTA requires the competent authorities informed the two parties form the seal of the organization authorized to issue certificates of origin under the FTA VN-EAEU (C / O EAV). This is a step towards more FTAs ​​than that Vietnam has signed the FTA requires notification of seal and sample signatures of officials form C / O. New rules in the FTA VN-EAEU create more favorable to businesses in the process of customs clearance when the difference in sample signature is not the cause of C / O was ngi questionable authenticity.

4. Regulations on the flexible (de minimis)

VN-EAEU FTA enables flexible application of the principle of 15% by unit FOB prices for the product or set of products. For example, a product composed of many individual products is still regarded as originating when 15% of the total product value does not reach the origin. This level of flexibility is 15% by ex-works price in the framework of the GSP, and 10% in FOB at the FTA Vietnam participated.

5. Regulations on C / O EAV

C / O EAV does not limit the number of items declared when allowed to use the attached declaration C / O. The party applying effort Verification System and electronic certificates of origin (EOCVS) no later than 2 years from the effective date of the Agreement. The goal is the construction of EOCVS database records information network of C / O EAV to check authenticity.

6. Provisions on simple processing operation

In order to prevent trade fraud, prevent goods from third countries conveyed through an Agreement parties and continued to export to the other party to benefit through FTA VN-EAEU, regulations simple stages of detailed design, suitable for commercial production processes, ensure correct origin of goods enjoying preferential tariffs.

7. Product specific Rules

Unlike the provisions of general rules and regulations in the majority own Vietnam FTA signed, commodity specific rules VN-EAEU FTA is integrated in a list of tariffed at HS 6 digit level. Criteria for the origin for goods originating not purely consist of (a) the value added content of VAC (Value Added Content), (b) change of goods CTC (Change in Tariff Classification) or (c) the specific production stages.

The line of VAC criteria apply mainly at 40% of the FOB value, equivalent RVC40% in signing FTAs with ASEAN Vietnam. Particularly for some items to be protected, such as machinery, automobiles, VAC application is 50-60% FOB. The alignment criteria apply specific production stages including machinery, vehicles, iron and steel, textiles, …

according VPB