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What is special about the procedure for certification of origin in the EVFTA?

Question: What is special about the procedure for certification of origin in the EVFTA?

Answer: 

Regulations on origin certification procedures in the EVFTA are applied to all types of goods. The EVFTA allows two types of origin certification, including:

  • Issuance of a certificate of origin: A competent authority of the exporting country issues a Certificate of Origin for goods based on the documents presented by the exporter.

  • Self-Certification: An origin declaration shall be made out by the exporter on the invoice, the delivery notes or any other commercial documents, instead of applying for a certificate of origin from a competent authority.

In comparison with the CPTPP, the scope of procedures for origin declaration in the EVFTA is more limited (the CPTPP also allows procedures for origin declaration). Specifically, the EVFTA allows origin declaration by only exporters, while the CPTPP allows exporters, manufacturers and importers.

In practice, specific procedures for a certification of origin of each Party (including Procedures for issuance of a certificate of origin and origin declaration) will be determined by that Party, in accordance with commitments in the Agreement. Specifically:

(i) For goods exported from Germany

The EU has developed a mechanism of origin declaration for exported goods, which is generally applied throughout the EU. Therefore, goods exported from Germany will also apply the EU's mechanism of origin declaration.

Specifically, the EU is using the Registered Exporter System (REX System) for EU exporters to register, thereby being able to self-certify the origin of goods under a number of FTAs ​​(including the EVFTA). Each exporter registered and certified by this System will be provided with a unique number (referred to as a REX number). Therefore, German exporters will uniformly use this REX number to self-certify origin of their shipments to meet the EVFTA's ROO when exporting to Vietnam.

(ii) For goods exported from Vietnam

Vietnam applies both Mechanism of issuance of Certificate of Origin and Origin declaration, specifically:

  • For consignments with the total value not exceeding 6.000 euros, any Vietnamese exporter can self-certify origin;

  • For consignments with the total value over 6.000 euros, Vietnam reserves the right to continue applying its traditional mechanism whereby exporters must apply for a Certificate of Origin (EUR.1 form) at competent agencies (the Ministry of Industry and Trade and units authorized by the Ministry of Industry and Trade). Vietnam can choose to apply the self-certification mechanism when it deems appropriate and will notify the EU before implementing this mechanism.

Guidance on the Process of issuance of a Certificate of Origin in the EVFTA for Vietnamese goods exported to the EU

The Ministry of Industry and Trade issued Circular No. 11/2020/TT-BCT dated June 15, 2020 stipulating the Rules of Origin in the EVFTA, and providing guidance on certificates of origin in the EVFTA as follows:

1. Declaring on www.ecosys.gov.vn for the case of C/O issued by agencies or organizations authorized by the Ministry of Industry and Trade: Pursuant to Point a, Clause 2, Article 19 of Circular 11/2020/TT-BCT, for consignments with the total value over 6.000 euros, the C/O shall be made out by agencies and organizations authorized by the Ministry of Industry and Trade. The procedure for declaring and certifying EUR.1 C/O form is similar to the other C/O forms.

2. Declaring on www.ecosys.gov.vn in case of self-certification of origin by enterprises: Pursuant to Point b, Clause 2, Article 19 of Circular 11/2020/TT-BCT, for consignments with total value not exceeding 6.000 euros, any exporter is allowed to self-certify the origin. The reporting and posting of documents of self-certification of origin and documents related to export shipments by enterprises who self-certify the origin shall comply with Clause 6, Article 25 of Circular 11/2020/TT-BCT.

 

EVFTA full text for more information: https://wtocenter.vn/chuyen-de/12778-eu-vietnam-trade-and-investment-agreements 

Source: The Center for WTO and International Trade

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