Wednesday, September 9, 2020Cosmetics news

Entry into force of EU-Vietnam free trade agreement

Entrée en vigueur de l’accord de libre-échange UE-Vietnam

Within the framework of its partnership with CosmeticOBS, Business France reminds that the trade agreement with Vietnam, which came into force on 1 August 2020, is the most ambitious trade agreement the European Union has concluded with a developing country. It provides for the eventual elimination of almost all customs duties between the two parties. For the EU, the agreement is an important step towards securing and consolidating its trade and investment partnership with the Association of Southeast Asian Nations (ASEAN).

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The agreement provides for the eventual elimination of 99% of customs duties between the two parties. • For EU exports, 65% of the duties applied by Vietnam disappeared upon entry into force of the agreement, with the remaining duties being phased out over a period of up to 10 years.
• For Vietnamese exports, 71% of the duties applied by the EU disappeared on the date of entry into force of the agreement, with the remaining duties being phased out over a period of up to 7 years.

Since 1 August 2020, operators whose products originate in Vietnam can benefit from the tariff preferences of the EU-Vietnam Agreement on import into the EU. But they can also choose to continue to benefit from the unilateral concessions granted by the EU under the Generalised System of Preferences (GSP) for another two years. Depending on the legal framework chosen, the relevant rules and proofs of origin will have to be respected.

When importing into the EU, in order to benefit from the preferences provided for under the EU-Vietnam agreement, the document codes to be filled in on the customs declaration will be:
• For the certificate of origin EUR 1, the code …

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