So as to help enterprises understand the core contents of the 4-month EVFTA as well as the implementation assistance, Binh Duong provincial Customs has just organized a conference on legal dissemination and dialogue with enterprises and the promotion of dissemination about EVFTA.
Binh Duong provincial Customs organizes the conference of disseminating information about EVFTA to local enterprises
Knowing the benefits that EVFTA could bring to businesses in the province, right from the date the agreement came into effect, Binh Duong provincial Customs has actively prepared propaganda materials of Vietnamese and other languages including English, Chinese, Korean, and Japanese. Up to now, all enterprises under 8 customs branches in the province have been propagated and disseminated about detailed contents of EVFTA related to goods import and export activities. It is expected that in December, Binh Duong provincial Customs will resume dialogue conferences in combination with this content propaganda to European and Taiwanese businesses in the province. At the dialogue conferences, Binh Duong provincial Customs guided and clarified the contents of EVFTA's commitments, certification of origin and origin inspection as well as the implementation provisions in Circular No. 11/2020 / TT-BCT dated June 15, 2020 of the Ministry of Industry and Trade stipulating the rules of origin of goods in the agreement, and at the same time, answers to problems and proposals raised by the businesses.
To read and understand the content of and know how to take advantage of EVFTA commitments is greatly challenging to businesses. On the other hand, the realization of EVFTA opportunities requires specific and appropriate actions from state agencies and by each enterprise. According to Binh Duong provincial Customs, as soon as the EVFTA came into effect, EU eliminated import duties on about 85.6% of tariff lines, equivalent to 70.3% of Vietnam's export turnover to EU. It is expected that after 7 years from the date of available the agreement, EU will eliminate import duties on 99.2% of tariff lines, equivalent to 99.7% of Vietnam's export turnover. For the remaining 0.3% of export turnover, EU committed to give Vietnam a tariff rate quota of 0% on import tax.
Accordingly, during EVFTA, enterprises will have to satisfy some principles of goods origins, commercial protection measures and technical barrier principles, and product quality. Of the requirements, the satisfaction of goods origin is one of the major content caught attention of enterprises. On failing to assure the principles of goods origin, the exported goods of Vietnam to EU is only offered the national favorable tax rate of the 0% within EVFTA.
Majority of enterprises are still having questions of certifying documents of origin in case of sellers residing in the nation but not a member of EVFTA, certifying documents of origin of goods originate from member countries or origin declaration on commercial documents for the goods not originate from EU, certifying documents of goods not changing origins, REX code examination, tax processing of imported goods of registered customs declaration for importation from August 1, 2020 to September 18, 2020, application of self-certifying origin, and declaration of documents certifying origins.
Knowing the problems the enterprises are facing, Binh Duong Customs extended feedbacks to help enterprises access EVFTA in timely, complete and comprehensive manner. For the questions of how to prove goods origins, Nguyen Thanh Binh, Director of Song Than Customs informed that for goods batcheso of less than EURO 6,000, the proving is made by the enterprises. For those of value of more than EURO 6,000, the enterprises must register for origin certification by professional agencies as required. Basically, the procedures of importation-exportation meeting EVFTA’s requirements shall be helped by functional agencies in time.
According to Nguyen Truong Giang, Deputy Director of Binh Duong Customs, the favorable legal foundation and the promoted propaganda and dissemination of EVFTA have truly changed enterprises’ awareness. Before the availability of Circular 11/2020/TT-BCT, many exporting enterprises were only expected to apply for preferential C/O at the request of foreign partners. Some other were not really interested in EVFTA. But after specific instructions were extended, many have actively learned the rules of origin of goods required by EVFTA to build business plans and invest into production. Thus, the activeness and initiative of enterprises have been very clear. EU importers themselves are also very interested in taking advantage of the tariff preferences of the agreement on importing goods from Vietnam. This is one of the reasons why the export shipments to the EU have increased sharply in the first month that EVFTA took effect.
“We commit to offer the most favorable conditions for businesses doing customs procedures in import and export activities so that they can take full advantage of the incentives that the EVFTA may bring about while keeping on accompanying, listening and receiving feedbacks of enterprises in relation to import and export management, tax policy and customs procedures,” said Nguyen Truong Giang.
Reported by Ngoc Thanh - Translated by Vi Bao
