USAID Trade Facilitation Program
SCOPE OF WORK
Development of the roadmap for self-certification and capacitate the regulatory agencies
and trading community, to implement the self-certification of origin
Proposed Personnel:
Period of Performance: Aug 1, 2022 – December 30, 2022
Travel Dates:
Origin/Destination: Vietnam
Project Background:
The USAID Trade Facilitation Program (TFP) is five-year project that aims to support Vietnam to adopt and implement a risk management approach to customs, which will facilitate the implementation of the World Trade Organization’s Trade Facilitation Agreement (TFA), of which both Vietnam and the United States (U.S.) are members. The Program will work with The General Department of Vietnam Customs (GDVC) to ensure simplification, harmonization, professionalization, and adoption and implementation of risk management approaches at the national and provincial levels to expedite cross-border trade and to enable Vietnam to implement WTO TFA commitments. The Program will work with the GDVC, private sector and other Government of Vietnam (GVN) agencies to simplify policies and across GVN units, foster stronger linkages between national and provincial levels, and improve coordination and implementation at the provincial level.
Overview
As the trend of Free Trade Agreements continues to increase, Vietnam has entered into 15 (fifteen) different agreements with the most recent being the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and EU-Vietnam Free Trade Agreement (EVFTA). Under these free trade agreements, Vietnam and other member countries have cut down the tariff rates for the majority of line items (for example, up to 99% of Vietnam exports to EU) to facilitate the trade flows. The Rules of Origin play a key role in differentiating between originating goods eligible for preferential tariff and non-originating goods subject to higher tariffs.
Free trade agreements around the world, for example the CPTPP and EVFTA, require the member countries to move from the conventional system of a competent authority of the exporting country issuing proof of origin to self-certification of origin by trade.
As from June 30, 2020, per Circular 38/2018/TT-BCT, Vietnam exporters must register and certify on Registered Exporter System (REX)[1] in order to qualify for the Generalized System of Preferences (GSP) for exports to the European Union.
As for EVFTA Rules of Origin under the Circular 11/2020/TT-BCT, products originating in Viet Nam shall, on importation into the Union, benefit from this Agreement upon submission of any of the following proofs of origin:
(a) a certificate of origin made out in accordance with Articles 16 (Procedure for the Issuance of a Certificate of Origin) to Article 18 (Issuance of a Duplicate Certificate of Origin);
(b) an origin declaration made out in accordance with Article 19 (Conditions for Making out an Origin Declaration) by any exporter for consignments the total value of which is to be determined in the national legislation of Viet Nam and shall not exceed EUR 6 000; an origin declaration made out in accordance with Article 19 (Conditions for Making out an Origin Declaration) by an exporter approved or registered in accordance with the relevant legislation of Viet Nam after Viet Nam has notified to the Union that such legislation applies to its exporters. Such notification may stipulate that subparagraph (a) shall cease to apply to Viet Nam.
| EU -> VN | VN -> EU |
Shipments ? 6000 Euro (any exporters) | Self – certification may use the hand-written signature | Self-certification, information to be uploaded to Ecosys within 3 working days |
Shipments of any value (applicable to eligible exporters) | Self – certification using the REX ID number |
|
Since the entry into force of EVFTA (August 1, 2020), the number of proof of origin issued by Vietnam exporters has increased to 10,265declaration documents, equal to approximately 32.9 million USD goods exported to the EU.
Besides, The ATIGA applies the ASEAN wide self-certification from September 2021, the VKFTA (Vietnam - Korea Free Trade Agreement) is expected to be discussed to implement the self-certification, and the CPTPP stipulates that Vietnam should apply this mechanism no later than 10 years from the effective date of the CPTPP in Vietnam (January 2029).
Self-certification of origins will enhance the accountability and responsibility of exporters, and reduce the administrative burden and risk for government agencies. Self-certification will also streamline the overall process, reducing unnecessary cost and delays. The new generation FTAs have geared towards implementing full self-certification of origins by the exporters and producers, with the objective of simplification and reduced costs.
Responsibilities and Tasks
In line with the trends of self-certification requirements in new generation FTAs, the Ministry of Industry and Trade – Foreign Trade Agency, has requested the Program to provide technical assistance in developing a roadmap for implementing self-certification by approved exporters, and maximizing the benefits from FTA preferences. The USAID TFP will support the MOIT FTA in implementation of the roadmap to self-certification, improving the public awareness and building up the capacity for both regulatory authorities and trade. The goal is to be achieved through the following tasks:
Deliverables
The CCN STTA will be responsible for the following deliverables:
Qualification
Reporting
The CCN STTA will report to Mr. Andrew Allan, the Senior Trade Facilitation Expert ([email protected]) and Mr. Pham Minh Tu, National Customs & Trade Facilitation Expert for the USAID Trade Facilitation Program ([email protected]).
How to apply
Proposals should be submitted no later than July 29, 2022 to email [email protected]
Proposal should include:
[1] This is stipulated by Point 1 (c), Article 19, Circular 11/2020/TT-BCT dated June 15, 2020 by Minister of Industry and Trade on EVFTA Rules of Origins.