Hanoi (VNA) - Vietnam’s exporters mustself-verify the origin of their products that they export to the European Union(EU) from 2019 to be qualified for Generalised System of Preferences (GSP)which is the tariff preference for developing countries.

With the aim of integrating further into theglobal economy, Vietnam has joined many free trade agreements (FTAs) that havethe self-certification mechanism of origin.

Self-certification of origin is a mandatoryrequirement of the EU for some countries, including Vietnam.

The Import and Export Department under the Ministry of Industry andTrade said under the requirement, the responsibility for verifying productorigin will be shifted from authorities to enterprises or exporters.

Enterprises will have to perform all the stepsthemselves, meeting the requirements of product origin and be accountable fortheir accuracy.

At the same time, it reduces the risk of licensingauthorities and minimises the burden on customs.

According to trade experts, this mechanism offersmany benefits in terms of reducing time and cost of transaction, activelyissuing commercial invoices, and helping businesses to know commitment on rulesof origin in the FTA.

Vietnam currently has 2,700 Vietnamese enterprisesexporting to the EU that enjoy the benefits of GSP and it will be quite a rushto force enterprises with self-certification of origin from early 2019,according to the ministry.

The only difference is that instead of theauthorities, the enterprise will issue its own C/O by including the line “thisproduct is qualified for GSP” in their document and invoice.

Enterprises becoming self-certifying exportersshows the trust of government agencies in businesses, in compliance withVietnam’s commitment to the FTA, said Tran Thanh Hai, Deputy Director of theExport and Import Department.

Vietnamese businesses will have around six monthsof transition time to reduce the burden on them. During this time, ifenterprises are unable to self-verify the origin of their products, they canapply for certification of origin from the Vietnam Chamber of Commerce andIndustry (VCCI) and the Ministry of Industry and Trade as usual.

The ministry will still train, instruct and remaina place for business registry. In case any issue arises in the trading process,the agency will have information to collaborate with the EU to determine thesource of goods and enterprises.

When businesses self-certify the origin of theirproducts, they are acting on the government’s behalf.

Experts said that if businesses do not comprehendthe mechanism and the necessary requirements that can result in falsecertification, the outcome would not only affect the businesses but also to thewhole nation.

Hai said the ministry would assist enterprises byorganising seminars that would provide information on the self-certificationmechanism of origin and the training courses for enterprises in self-certifyingthe origin of goods.

At present, the ministry has concentrated ondeveloping a circular guiding enterprises to self-certify the origin of goodsexported to the EU. After the issuance of the circular, the ministry willcooperate with the VCCI, the associations and branches as well as theenterprises to provide training courses and guidance that would help themcertify their origin quickly and accurately.-VNA