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Regulatory alerts

Regulatory alerts

Learn about the latest updates to international trade regulations and how they could affect your business.

Learn about the latest updates to international trade regulations and how they could affect your business.

Latest regulatory updates

What’s happened?

The EU-Vietnam Free Trade Agreement (EVFTA) came into force on August 1, 2020. It will replace the EU’s Generalised System of Preferences (GSP) scheme for Vietnam.

Who does it affect?

Anyone importing or exporting between the EU and Vietnam, with goods of EU or Vietnam origin.

What will change?

The EVFTA will:

  • Eliminate the majority of customs duties immediately
  • Phase out tariffs on the remainder of goods covering up to 99% of all trade by 2030
  • Simplify and modernise customs and rules of origin procedures, cutting red tape and reducing costs for businesses
  • Streamline technical and non-tariff barriers to trade which unnecessarily restrict business
  • Establish a legal framework for trade through the EU-Vietnam Investment Protection Agreement (EVIPA), which guarantees the rights of businesses and consumers on both sides. This will come into effect at a later date.

Collectively, the agreements aim to promote sustainable development on both sides, for stronger employment, environmental, and human rights protection.

What should you do now?

Vietnam is currently part of the EU’s GSP scheme and this will remain in place for up to two years. You can decide if you prefer to use the GSP or FTA for this period, but you should be aware that the conditions for GSP may vary from the FTA.

EU exporters must complete a statement of origin made out on the commercial invoice to qualify for the FTA. For shipments above €6,000, EU exporters will also need to register in the REX system.

Vietnam exporters must complete a statement of origin made out on the commercial invoice to qualify for the FTA. For shipments above €6,000, Vietnam exporters will also require a certificate of origin.

To find out more about the EVFTA you can read this comprehensive guide, while information on the FTA’s rules of origin requirements are available in the EU’s guidance document.