Businesses urged to register REX code to enjoy preferential EU tariffs

According to the Import and Export Department under the Ministry of Industry and Trade (MoIT), as a means of boosting Vietnamese exports to the EU, Norway, and Switzerland, the MoIT has proposed a six-month extension for the deadline to register the REX code under the GSP which currently falls on June 30.

The department warned as soon as the deadline expires, the EU, Norwegian, and Swiss customs officials will not be accepting the C/O form A for Vietnamese firms to enjoy preferential tariff under the GSP.

As a result, the EU is encouraging domestic businesses to register for the REX code as soon as possible.

This comes after the MoIT recently asked the Vietnam Chamber of Commerce and Industry (VCCI) to direct subsidiary units to increase the registration of REX Code for enterprises as a way of facilitating their exports to the three mentioned markets, in addition to providing instructions for local firms on how to complete the necessary documents for registration.

At present, the number of entrepreneurs registering for the REX code and the number of pending applications for REX registration remains limited in comparison to the number of businesspeople who requested a C/O form A last year.

With this in mind, Vietnamese companies that export goods to either the EU, Norway, or Switzerland should contact the VCCI as a matter of urgency in order to receive guidance and information on how to register for the REX code so they can subsequently enjoy preferential tariffs under the GSP.

The REX code system has applied domestically since January 1, 2019, meaning that local producers aren’t required to apply for a C/O form A each time they export goods to the EU.

Under the new system, they are able to self-certify the origins of goods that have a value below EUR6,000. For orders worth above EUR6,000, businesses need to register the REX Code at the VCCI to be able to self-certify the origins of goods.