European Parliament approves EU-Vietnam trade agreement

On February 12, 2020 the European Parliament approved the EU-Vietnam trade and investment agreements (the “Agreement”).(1) The Agreement is set to enter into force in 2020 after Vietnam completes their ratification process. It is expected that the Vietnamese National Assembly will ratify the Agreement in the summer of 2020. All EU Member States must also ratify the Agreement.

Once fully implemented the Agreement will eliminate most tariffs on goods traded between EU member states and Vietnam. The Agreement represents the most comprehensive trade agreement between the EU and a developing nation. Vietnam’s developing nation status was taken into consideration and is why they were given a longer period of 10-years to eliminate duties related to many products. Some key points for the Agreement(2) include:

• EU pharmaceuticals, chemicals, and machinery will have free import conditions into Vietnam as of entry into force;

• The Agreement contains provisions addressing non-tariff barriers in the automotive sector; and

• EU companies will be able to participate on an equal footing with Vietnamese companies in bids for government authorities and state-owned enterprises.

For more information:

• Visit the European Commission’s EU-Vietnam trade agreement web page(3) at: https://ec.europa.eu/trade/policy/in-focus/eu-vietnam-agreement/

• Contact the professionals at GCSG: http://www.globalcompliancesg.com/contact

References

1. European Commission - Press corner: “Commission welcomes European Parliament’s approval of EU-Vietnam trade and investment agreements” - 12 February 2020

2. European Commission - “EU-Vietnam trade and investment agreements” text

3. European Commission - “EU-Vietnam Agreement” web page

The 'Blue Guide' on the implementation of EU product rules 2016

On April 5, 2016 the European Commission posted an updated 'Blue Guide'.  The guides intended purpose is to enhance the understanding of EU product rules.  The 2016 version of the Blue Guide replaces the 2000 edition.  Key topics covered within the guide include:

• Regulating the free movement of goods
• When does union harmonization legislation on products apply?
• The actors in the product supply chain and their obligations
• Product requirements
• Conformity assessment
• Accreditation
• Market surveillance    

Key Link(s):

• Blue Guide 2016 EN

EU - The Union Customs Code came into force May 1, 2016

The major provisions of the European Union Customs Code (UCC) came into force on May 1, 2016.  For a complete list of changes to import, export, and storage procedures please see the following link: U.K. HM Revenue & Customs - The Union Customs Code Guidance

Key Link(s):

• European Commission - Union Customs Code

Authorised Economic Operator (AEO) Guidance Updated

On March 11, 2016 the European Commission published an update to the AEO Guidelines.  The AEO concept is one of the key security elements created within the Community Customs Code (Regulation (EC) 648/2005).  The guidelines were recently updated to account for the experience gained, ensure harmonized implementation of the AEO rules, and align the guidance with the Union Customs Code (Regulation (EU) 952/2013).  The Union Customs Code was adopted on October 9, 2013, entered into force on October 30, 2013, and will apply on May 1, 2016.    

AEO status can be granted by any Member State to an economic operator meeting certain criteria in the following areas: customs compliance, record-keeping, financial solvency and, where relevant, appropriate security and safety standards.

Key Links:

• AEO Guidelines
• European Commission - Authorised Economic Operator (AEO)
• European Commission - The Union Customs Code

Key Term(s):

Authorized Economic Operator - is defined by the WCO SAFE Framework of Standards as a party involved in the international movement of goods, in whatever function, that has been approved by, or on behalf of, a national Customs administration as complying with WCO or equivalent supply chain security standards. AEOs include inter alia manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses and distributors.