Trade deal between the EU and Vietnam

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Further details about the EU and Vietnam trade agreement and the preferential arrangements.

Trade deal between the EU and Vietnam

Find out about the EU and Vietnam trade agreement and the preferential arrangements.

The European Commission has published the final text of the trade agreement with Vietnam which is an easy guide to the agreement.

Introduction

The Free Trade Agreement (FTA) between the EU and the Socialist Republic of Vietnam has been ratified by both Parties and enters comes into force on 01 August 2020.

An outline of the preferential arrangements is included in this stop press together with details on how to declare preferential imports on the Customs Handling of Import and Export Freight (CHIEF) system.

Full details on the preferential arrangements can be found within the Official Journal (OJ) (EU) 2019/753. The rules of origin and origin procedures are set down in Protocol I, beginning on Official Journal page 1319.

As part of this agreement certain goods, either originating in Vietnam for import into the EU or originating in the EU for export to Vietnam, may be eligible for preferential duty rates in the importing party if the required conditions are met.

Vietnam – Generalised Scheme of Preferences (GSP) Status

Under the EU GSP (which applies to UK imports during the Transition period) Vietnam will lose GSP-beneficiary status 2 years following the entry into force of the FTA with the EU.

Post Transition Vietnam will continue to benefit from the preferential tariff treatment under the UK GSP until the entry into force of a UK – Vietnam trade arrangement. There will be a notice period before Vietnam is removed as a beneficiary of the UK GSP.

Elimination and reduction schedules for imports to the EU and Vietnam

The elimination and reduction schedules for duties on goods imported to the EU and exported to Vietnam are in Annex 2-A of the agreement beginning on Official Journal page 166.

‘Party’ means a signatory to the agreement such as the EU or Vietnam.

These duties will apply from the date this agreement comes into force for consignments that satisfy all of the conditions to qualify for preference, details of which are shown further on.

Rules of origin

In order to claim preferential duty under this agreement a product must be deemed as originating in the territory of the exporting party, in accordance with the rules of origin and origin procedures which are defined in Protocol I ‘concerning the definition of the concept of ‘originating products’ and methods of administrative co-operation’ (OJ page 1319). The introductory notes to product specific rules of origin can be found in the Annex 1 and 2 following Protocol 1 starting at Official Journal page 1335.

Proof of origin

Entitlement to preference duty shall be based on an origin declaration that the product is originating made out by the exporter.

The text for an origin declaration is in Annex VI to Protocol I on Official Journal page 1378.

The origin declaration must be provided on an invoice, or any other commercial document (A transport document, such as a bill of lading or an airway bill, shall not be considered as any other commercial document) describing the originating product in sufficient detail to enable its identification. A proof of origin is valid for 12 months from the date of issue in the exporting Party, it must be submitted to the customs authorities of the importing Party within that time period.

Proof of origin can also be provided on a Certificate of Origin, for further information see Official Journal page 1328, Section D Article 15. An example of a Certificate of Origin can be seen on OJ page 1385 Annex VII to Protocol 1.

Origin declaration for exports to Vietnam

Only approved EU exporters may issue origin declarations for consignments with a value exceeding €6,000 and they must include their approved exporter number (as the exporter reference number) in the origin declaration.

Any EU exporter may issue origin declarations for consignments with a value not exceeding €6,000.

Approved exporters

You can apply to become an approved exporter.

If you are already an approved exporter you should contact the HMRC office that issued your authorisation requesting it be extended to enable export to Vietnam.

Certificates of origin issued retrospectively

A certificate of origin can be issued in specific situations after exportation of the products to which it relates, more information can be found in the Official Journal page 1328.

Contact details

Any questions regarding the implementation of these preferential arrangements in the UK should be emailed to: dutyliability.policy@hmrc.gov.uk.

Read Your Charter to find out what you can expect from us and what we expect from you.

More information

To stop getting the Tariff stop press notices, or to add recipients to the distribution list, email: tariff.management@hmrc.gov.uk.

See the UK Trade Tariff for the full duty rate, unit of quantity, preferences, quotas, footnotes and VAT rate.

Graham Sheen

Graham Sheen

Graham Sheen is the BWA Secretary, appointed in 2019. Graham has a strong background in logistics and warehousing, and is very well connected within the warehousing and supply chain sectors.

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