Eu Vietnam Free Trade Agreement Rules of Origin

The EU-Vietnam Free Trade Agreement (EVFTA) has been in effect since August 2020, and it offers significant benefits for both parties involved. However, to fully take advantage of these benefits, it is important to understand the rules of origin that dictate which goods are eligible for preferential treatment under the agreement.

The rules of origin determine the “economic nationality” of a product, which is essential when determining eligibility for preferential tariff treatment. In other words, goods must meet certain criteria to be considered as originating from either the EU or Vietnam.

Under the EVFTA, there are two main types of rules of origin: product-specific rules and regional value content (RVC) rules. Product-specific rules apply to certain products that require specific processing or manufacturing, while RVC rules apply to goods produced using materials sourced from multiple countries.

For goods to be considered of EU origin, they must be wholly obtained or produced within the EU or meet the EVFTA`s product-specific or RVC rules. Goods of Vietnamese origin must also follow the EVFTA`s product-specific or RVC rules, or be wholly obtained or produced within Vietnam.

It is important to note that the rules of origin are complex and can differ depending on the specific product or industry. For instance, the automotive industry has its own set of rules, while textiles and clothing have unique rules as well.

Adhering to these rules is crucial as it determines whether or not products are eligible for preferential tariffs. The EVFTA offers reduced or eliminated tariffs on goods traded between the EU and Vietnam, providing a significant advantage to companies that meet the rules of origin requirements.

Overall, understanding the rules of origin under the EVFTA is essential for companies to fully benefit from the agreement`s preferential treatment. Compliance with these rules is critical, and companies should seek the expertise of professionals with experience in both copy editing and SEO to ensure their products meet the necessary criteria for preferential tariffs.