Opportunities from EVFTA commitments on remanufactured goods

The commitments on remanufactured goods in the EVFTA only applies to products in Chapters 84, 85, 87, 90 and 9402 that have a part or all of the parts from used products but having similar performance and working conditions, life expectancy and warranty compared to the original new goods

Currently, Vietnam is considering remanufactured goods as second-hand goods, and therefore it prohibits the import of these goods (only a few types of second-hand/refurbished goods such as machinery, equipment, and technology are allowed).

In the EVFTA, Vietnam and the EU have commitments on remanufactured goods as follows:

  • Commitment to accord to remanufactured goods the same treatment as that accorded to new like goods (allowed to import, enjoy preferential tariffs if there is a certificate of origin under the EVFTA...);

  • Each Party has the right to require specific labeling of remanufactured goods in order to prevent deception of consumers;

  • The time to start implementing the commitments on remanufactured goods mentioned above is no later than 03 years from the effective date of the EVFTA (no later than August 1, 2023).

However, the commitments on remanufactured goods mentioned above will not apply to certain types of goods listed in Appendix 2-A-5 Chapter 2, for example:

    • Chapter 84: Certain types of fans, air conditioners, refrigerators, freezers, printers, washing machines, industrial ovens...;

    • Chapter 85: Certain types of household electromechanical equipment, shavers, trimmers, electric kettles, electric plugs, telephones (fixed or mobile), microphones, recording equipment, radio broadcasting equipment television lines, television cameras…;

    • Chapter 87: Cars with 10 seats or more, racing cars, passenger cars including station wagons, cars for the transport of goods...

With commitments accord to remanufactured goods the same treatment as that accorded to new like goods in the EVFTA, many technological products such as modern medical equipment, cars, phones, etc. after being remanufactured will be able to export to Vietnam/EU as normal goods. With the development of science and technology, and the increasing demand for environmental protection and resource-saving, the use of remanufactured goods will be more and more popular. The EVFTA commitments on remanufactured goods will therefore create more favorable conditions for trade exchanges of this special product group between the two Parties. 

Note: CPTPP also has commitments on remanufactured goods, but the content of the commitments is different from that of the EVFTA on the same issue (type of goods, mechanism applicable to goods...). Thus, when implementing both Agreements, it is expected that Vietnam will draft separate regulations for the import of remanufactured goods under the EVFTA and CPTPP.

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

Source: "Business Handbook: Exploiting the EVFTA  to import and export goods between Vietnam and Germany" - Center for WTO and International Trade