In order to enjoy tariff preferences from the EVFTA Agreement, Vietnamese agricultural products must meet the provisions of the rules of origin of goods under this Agreement and be granted a Certificate of Origin (C/O). sample EUR.1 under EVFTA.
Currently, the Ministry of Industry and Trade authorizes 20 agencies and organizations (including 19 Regional Import-Export Departments across the country and Hai Phong City Department of Industry and Trade) to issue C/O form EUR.1 under the EVFTA.
The EU has a protectionist policy for agricultural products, so the origin criteria mainly applies to agricultural products in the EU EVFTA pure provenance. Vietnam’s agricultural products of pure origin (Wholly Obtained – WO) under EVFTA are goods grown, born and raised, harvested or gathered or obtained from the slaughter of animals, hunting or hunting. in Viet Nam. This is also a common origin criterion for agricultural products in FTAs that Vietnam is participating in.
Beyond the criteria pure origin, Agricultural products are also considered originating when they meet the specific commodity criteria in the Item Specific Rules list. However, in the EVFTA, there are restrictions on the use of some non-originating materials such as sugar, eggs, milk and dairy products or some cereals because the EU has a protection policy for these items. this item.
Specific origin criteria for some agricultural products at EVFTA Rice The EVFTA Agreement stipulates that rice products must have pure origin to be considered originating under EVFTA. Thus, rice grown and harvested in Vietnam is considered to be of pure origin and meets the criteria of origin of goods under EVFTA.
In case rice is grown in an EU country, then imported to Vietnam to be milled into rice and exported back to the EU, that rice is still considered to be of EVFTA origin but not pure origin. In this case, the principle of cumulative origin has been applied and rice originating in the EU is considered to have originated in Vietnam.
Another case, rice grown in Cambodia and then imported to Vietnam to be milled into rice and exported to the EU, that rice does not meet the rules of origin under EVFTA because it has no pure origin. in Viet Nam
Tea and Coffee
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For tea, coffee and tea and coffee products, the EVFTA Agreement allows the use of non-originating materials with different HS codes at the 4-digit level (Group) compared to the final product or so-called standard. even to convert commodity codes at the Group level. Particularly for coffee products, EVFTA Agreement limit the use of non-originating butter, milk and egg ingredients to 20%, non-originating sugar ingredients to 40%, or use a combination of no more than 50% of the weight of the product. final product.
Pepper
Pepper, which has not been ground or ground, ground or ground, has the origin criterion in the EVFTA Agreement which is the use of non-originating materials from other HS codes at 4-digit level (Group) compared to the final product. However, unground or unground pepper and ground or ground pepper all belong to the same HS code at 4-digit level (HS 0904), so raw materials from other headings cannot be used for production.
Therefore, the origin criterion for pepper under the EVFTA Agreement is actually a pure origin criterion. In case of importing pepper of pure origin in an EU member country to Vietnam and then grinding or grinding, the final product is still considered originating because of the application of the principle of accumulation.
Cashew
For cashews, shelled or unshelled, the origin criterion in the EVFTA Agreement is pure origin, and the weight of non-originating sugar used does not exceed 20% of the product weight. In addition, the EVFTA Agreement stipulates that the shelling stage is a simple processing step that will not be taken into account when considering the origin of the product.
Thus, the case of importing unshelled cashews from Cambodia Vietnam then peeled and exported to the EU, these shelled cashews are not considered to have originated under EVFTA. Cashew nuts, whether shelled or unshelled, must be of pure Vietnamese origin to be considered to meet the origin criteria under EVFTA.
For processed cashew nuts, the EVFTA Agreement allows the use of non-originating cashew nut materials outside the EU and Vietnam, provided that the non-originating sugar materials used in the production process do not exceed 20%. weight of the product.
Cassava and cassava products
For cassava and tapioca starch, the origin criteria applied in the EVFTA Agreement is pure origin. Thus, in case a Vietnamese enterprise exports tapioca starch to the EU, the raw materials used in the production process must be cassava of pure origin in Vietnam in order for the cassava starch product to be considered as originating in accordance with the law. EVFTA Agreement.
Rubber and rubber products
For rubber and rubber products, the EVFTA Agreement allows the choice to apply one of two origin criteria. First, the Agreement allows the use of non-originating materials from other HS codes at a 4-digit level (Class) compared to the final product for production. Second, non-originating materials used in the production process shall not exceed 70% of the ex-works price of the product. This origin criterion is similar in nature to the Regional Value Content (RVC) origin criterion commonly used in the ASEAN and ASEAN+ Agreements.
The difference is that the RVC criterion is based on the value of originating materials and the FOB price, while the value content criterion in the EVFTA is calculated based on the value of non-originating materials and the EXW price.
Vegetables
For raw and unprocessed vegetables and fruits, the origin criterion in the EVFTA Agreement is pure origin, and the weight of non-originating sugar used does not exceed 20% of the product weight.
For fruit and vegetable products, the EVFTA allows the use of non-originating raw materials for processing, provided that the non-originating sugar materials involved in the production process do not exceed 20% by weight. of the final product.
According to statistics of the Import-Export Department – Ministry of Industry and Trade, in the first 11 months of 2021, the agencies and organizations that have issued C/O form EUR.1 authorized by the Ministry of Industry and Trade have issued C/O form EUR.1 to Vietnam’s agricultural products exported to the EU reached 283.76 million USD, accounting for 13.26% of the export turnover of agricultural products in general to this market.
Compared with other key export products of Vietnam, the export turnover of agricultural products using C/O form EUR.1 is still quite modest, accounting for only 3.91% of the total export turnover of goods to Vietnam. EU uses C/O form EUR.1.
The agricultural products with the most export turnover using the EUR.1 C/O form were vegetables and fruits, reaching 90.83 million USD, followed by coffee, reaching 87.33 million USD. Agricultural products with export turnover using C/O form EUR.1 at least were tea, reaching 636.4 thousand USD, and cassava and cassava products, reaching 782.6 thousand USD.
Compared to the preferential market under other FTAs, in the first 11 months of 2021, the export turnover of Vietnam’s agricultural products to the EU market with preferential C/O is ranked fourth, after the Chinese market. $3.8 billion), ASEAN ($1.84 billion) and South Korea ($367.97 million). These are all traditional export markets for Vietnam’s agricultural products and these FTAs have been implemented for a long time, while the EVFTA Agreement has only been in effect for more than a year. This is a good sign for Vietnamese agricultural products exported to the EU.
Regarding the structure of agricultural export markets using C/O form EUR.1 Vietnam’s agricultural export markets in the EU using C/O form EUR.1 are mainly the Netherlands, Spain, and Germany. , Poland, France and Italy. These are the traditional markets of Vietnam’s agricultural imports in this block with the main imported products being vegetables and fruits, coffee, rubber and rubber products.
In the first 11 months of 2021, the Netherlands and Spain are the two import markets for Vietnam’s agricultural products with the largest C/O value of EUR.1 issued, reaching $62.13 million and 46, respectively. 54 million USD, accounting for 21.9% and 16.4% respectively of the total value of C/O form EUR.1 issued for agricultural products.
Notes for Vietnamese agricultural product exporters In order to promote agricultural exports and develop markets in the EU by taking advantage of the rules of origin of goods in the EVFTA Agreement, agricultural exporters Products need to actively participate in trade promotion activities with the participation of EU partners to find sources of raw materials as well as new customers, expand the supply chain of raw materials in the Agreement area.
In addition, domestic producers and processors of agricultural products also need to focus on developing and exploiting domestic raw material growing areas, enhancing deep processing capabilities to be able to meet origin criteria. as well as the regulations on origin of goods of the EVFTA Agreement.
At the same time, businesses need to focus on training resources with knowledge of origin of goods in general and regulations on rules of origin of goods in the EVFTA Agreement in particular, so that they can be ready to participate in self-certification of origin of goods now as well as in the not too distant future.
According to tapchicongthuong.vn
