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  • The mechanism of self-certification of origin European Union

    May 24th, 2016

    Currently, Vietnam is very much involved in the negotiations of free trade agreements (FTA) which requires application of the mechanism of self certification of origin. Under this mechanism, responsible for certification of the origin of goods will move from the specialized agencies to businesses (or importer). That is now (or importer) will automatically perform the procedures and meet the conditions for declaring the goods to meet the standards of origin and solely responsible for the accuracy of that statement.

    To introduce to the business of content and how to manipulate the mechanism of self-certification of origin of the EU and EFTA markets, Chamber of Commerce and Industry of Vietnam (VCCI) in coordination with the Ministry of Industry and Trade, Volume EFTA (including 4 countries Norway, Switzerland, Iceland, Ireland and the Lich-ten-Einstein) organized a workshop on "Self-certification of origin" in Hanoi and Ho Chi Minh dated 06/17/2014 19 / 6/2014.

    At the workshop, experts from the EFTA Bloc have provided information about the system of self-certification of origin of the EFTA countries that are similar to the EU. Accordingly exporters will release proof of origin, namely that disclosure of origin in the trade documents (such as bills) without the participation of the authorities release Management process.

    This system has been used in the EU for more than 40 years and to see the advantages of it as simplify procedures, reduce time and costs for businesses, while reducing the risk to the licensing authorities and customs burden. Therefore, in the FTA that the EU has signed or is negotiating, the partners are required to apply the mechanism of self certification of origin. Even the European Union is also considering to apply this mechanism in the system of tariff preferences (GSP).

    However, exporters are not yet can also certificates of origin which must be licensed by a competent authority of the exporting country (usually Customs). How gom4 normal process steps: i) The exporter applying for authorization to the customs authorities, ii) Customs inspection applications lodged, iii) Examining the spot if necessary, iv) Decision licensed or not licensed. Normally 1 free license certificate of origin has a term of 5 years if the exporter does not have any violations.

    Vietnam Some businesses expressed concern self-certification system of origin may create more cases of fraud than traditional licensing system through the competent authorities. But the experts of the EFTA have confirmed that fraud rates as monitoring and evaluation of the block is no much difference between the new and old systems. That's because under the new system, the customs authorities may conduct direct examination exporters at any time if there is suspicion of irregularities in order to limit the frauds.

    Generally, though, is new in Vietnam, self-certification system origin has now become quite popular in the world. Along with a series of FTAs ​​that Vietnam is engaged in talks with our partners to use this mechanism, the greater is its ability to be applied in Vietnam in the future. So now the enterprises should actively explore the mechanism of self-certification of origin to take the necessary preparations to take advantage of this once the FTA is signed.

    Source: WTO and Integration Center – VCCI