EVFTA Explained: How Vietnam Exporters Can Claim 0% EU Tariffs

The EU-Vietnam Free Trade Agreement (EVFTA) entered into force on August 1, 2020, and since then it has fundamentally changed the economics of exporting from Vietnam to the European Union. Under EVFTA, about 99% of tariff lines between Vietnam and the EU will eventually be eliminated — but claiming those preferential rates requires knowing exactly what you need to do.

This guide explains how EVFTA works, what the rules of origin are, and how Vietnamese exporters can actually claim the lower tariff rates in practice.

What Is EVFTA and What Does It Cover?

The EVFTA is a comprehensive free trade agreement between Vietnam and all 27 EU member states. It covers trade in goods, services, investment, intellectual property, and public procurement. For goods trade — which is what most exporters care about — it provides:

• Immediate duty elimination on 65% of EU tariff lines for Vietnamese goods when EVFTA entered into force in 2020
• Gradual phaseout of remaining tariffs over 7–10 years
• By 2030, approximately 99% of tariff lines will be duty-free

For Vietnam, this is enormously significant. Before EVFTA, Vietnamese goods faced the EU's standard MFN tariff rates — averaging 4–5% for industrial goods but significantly higher for textiles (12%), footwear (16–17%), and seafood (6–24%).

Which Products Benefit Most from EVFTA?

The Critical Part: Rules of Origin

This is where many exporters get tripped up. Claiming EVFTA preferential rates isn't automatic — your goods must originate in Vietnam according to EVFTA's Rules of Origin. Simply shipping goods through Vietnam doesn't qualify them.

What "Originating in Vietnam" means under EVFTA

Under EVFTA, goods can qualify as Vietnamese-origin in two ways:

1. Wholly obtained — goods that are entirely produced in Vietnam with no inputs from third countries. This applies to agricultural products, minerals, and goods made entirely from Vietnamese raw materials.

2. Sufficiently processed — goods that contain imported inputs but have been sufficiently transformed in Vietnam. What "sufficient" means varies by product category and is defined in the EVFTA's Product Specific Rules (PSR).

Product-Specific Rules examples

The PSR are detailed and product-specific. Some examples:

• Textiles (Chapter 61–62): The "double transformation" rule applies — both fabric production AND garment manufacturing must take place in Vietnam (or the EU). Simply cutting and sewing imported Chinese fabric in Vietnam does NOT qualify.
• Footwear (Chapter 64): Generally requires assembly in Vietnam, with the upper being produced in Vietnam. Imported soles are acceptable in most cases.
• Electronics (Chapter 85): Typically requires a change in tariff heading, meaning the product must be genuinely manufactured in Vietnam — not just assembled from imported Chinese components.
• Furniture (Chapter 94): Generally allows for significant imported wood inputs, with value-added requirements in Vietnam.

How to Claim EVFTA Preferential Rates

Step 1: Determine if your goods qualify

Check the EVFTA Annex 1 (Product Specific Rules) for your product's HS code to understand the applicable origin rule. The EU TARIC database and Vietnam's Ministry of Industry and Trade both publish guidance on specific rules.

Step 2: Document your supply chain

Gather evidence of origin: supplier declarations for input materials, production records, manufacturing cost breakdowns showing sufficient Vietnam value-added. You'll need this documentation if EU customs requests verification.

Step 3: Obtain proof of origin

Under EVFTA, there are two methods to prove origin:

• Certificate of Origin Form EUR.1 — issued by Vietnam's Ministry of Industry and Trade (MOIT) or authorized chambers of commerce. Required for shipments over €6,000.
• Statement on Origin — a declaration made directly on the commercial invoice by an Approved Exporter. For shipments under €6,000, any exporter can make this declaration. For larger shipments, you need Approved Exporter status.

Step 4: Include proof of origin with shipping documents

The EUR.1 certificate or Statement on Origin must accompany the commercial invoice, packing list, and bill of lading. EU customs at the port of entry will verify origin documentation when requested.

Step 5: Apply the correct EVFTA tariff in the customs declaration

When the EU importer files the customs entry, they must reference the EVFTA preferential tariff code and attach the proof of origin. The lower EVFTA duty rate will then apply instead of the standard MFN rate.

Practical Tips for Vietnamese Exporters

• Apply for Approved Exporter status early — it allows you to self-certify origin on all shipments, eliminating the need to apply for EUR.1 certificates for each consignment.
• Work with a licensed customs broker in Vietnam who understands EVFTA rules of origin. Incorrect origin declarations have legal consequences for both the exporter and the EU importer.
• Calculate whether EVFTA savings justify the compliance cost — for small-value, low-duty products, the cost of origin documentation may exceed the tariff saving. Our Landed Cost Calculator helps you model the net benefit.
• Keep production records for 3 years — EU customs can request verification of origin up to 3 years after the import. Maintain complete documentation of your supply chain and manufacturing process.