How to fulfill mechanism of tariff rate quota in EVFTA?

VCN – In the framework of the EU – Vietnam Free Trade Agreement (EVFTA), the European Union (EU) has committed to giving a tariff rate quota (TRQ) for 14 goods items from Vietnam.

how to fulfill mechanism of tariff rate quota in evfta
EVFTA will take effective on August 1st 2020. Source: Internet

This includes eggs and poultry egg yolks; garlic; sweetcorn; pearl rice; husked rice; husked rices of number of specific types of fragrant rices; cassava starch, tuna, surimi, sugar and other products containing high sugar, special sugar; mushroom; ethanol; mannitol; sorbitol; dextrin and other types of modified starch.

The Ministry of Industry and Trade stated that in terms of the TRQ mechanism for rice items in the EVFTA, the focal point agency of EU site was G.4 (arable crops and olive oil, DG Agriculture and Rural Development).

Fragrant rice shipments exported to the EU must comply with EU enforcement regulations on opening and receiving import TRQ for rice coming from Vietnam. The enterprise will need to apply for an import license at the competent authority of the member country and deposit a guarantee of 30 Euro/tonne at the time of applying for the license.

If the number of registrations exceeds the amount available under the TRQ for the period, the EU will fix an allocation rate.

For fragrant rice shipments subject to TRQ when exported to the EU market, to enjoy the tax rate of 0% according to quotas, it must have an authenticity certificate issued by a Vietnamese authority stating the rice belongs to one of the rice categories eligible for preferential treatment under the TRQ of the agreement.

The Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade are working together to formulate documents guiding the registration process of this certificate to issue after the EVFTA comes into effect.

For the remaining items in the EVFTA, the focal agency of the EU is the Directorate General Taxation and Customs Union (DG TAXUD). TRQs will be allocated and managed in accordance with Articles 49 to 54 of the Implementing Regulation (EU) 2015/2447.

Goods imported into the EU under the TRQ mechanism will be allocated according to a “first-come, first-served” mechanism, based on the date the application for granting import permit is approved by EU customs authorities. The EU is formulating guidance documents to fulfill the TRQ commitments in the EVFTA.

Email us