Proposal for a Council Decision authorising the provisional application of the memorandum of understanding between the European Community and the Government of Vietnam on the prevention of fraud in trade of footwear products
Date: 1999-11-16
Institutions: European Commission
Subjects: Viet Nam, export licence, footwear industry, fraud, import

EN

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 16.11.1999
COM(1999) 588 final

1999/0239 (ACC)

Proposal for a

COUNCIL DECISION

authorising the provisional application of the memorandum of understanding between
the european community and the government of Vietnam on the prevention of fraud in
trade of footwear products

(presented by the Commission)

EXPLANATORY MEMORANDUM

On 21 February 1999 the Council approved directives authorising the Commission to open
negotiations with Vietnam for the establishment of a double-checking system covering the
imports into the European Community of footwear products originating in the Socialist
Republic of Vietnam. On 4 August 1999, the Commission and a representative of the
Vietnamese government initialled the enclosed Memorandum of Understanding between the
European Community and the Government of Vietnam on the Prevention of Fraud in Trade of
Footwear Products (“the Memorandum”).

Consequently, it is proposed that the Council decides the provisional application of the above
mentioned Memorandum of Understanding pending the completion of the procedures for its
formal conclusion on behalf of the Community. Such provisional application shall be subject
to reciprocity.

2

1999/0239 (ACC)

Proposal for a

COUNCIL DECISION

authorising the provisional application of the memorandum of understanding between
the european community and the government of Vietnam on the prevention of fraud in
trade of footwear products

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular
Article 133 thereof;

Having regard to the proposal from the Commission;

Whereas:

(1)

(2)

(3)

The Commission has negotiated on behalf of the European Community with the
Socialist Republic of Vietnam a Memorandum of Understanding on the prevention of
fraud in trade of footwear products.

This Memorandum of Understanding has been initialled on 4 August 1999.

It is necessary to apply this agreement on a provisional basis from 1 January 2000,
pending the completion of the relevant procedures for its formal conclusion, subject to
reciprocity.

HAS DECIDED AS FOLLOWS:

Article 1

The Memorandum of Understanding on prevention of fraud in trade of footwear products
with the Socialist Republic of Vietnam shall be applied on a provisional basis from
1 January 2000, subject to reciprocity.1

1

The Commission shall publish in the Official Journal of the European Communities, C Series, the date
from which the this Memorandum of Understanding shall be effectively applied pursuant to this Article.

3

Article 2

The text of the Memorandum of Understanding is attached to this decision.

Done at Brussels,

For the Council
The President

4

ANNEX

MEMORANDUM OF UNDERSTANDING

BETWEEN

THE EUROPEAN COMMUNITY

AND THE GOVERNMENT OF VIETNAM

ON THE PREVENTION OF FRAUD IN TRADE OF FOOTWEAR PRODUCTS

5

THE EUROPEAN COMMUNITY

THE GOVERNMENT OF VIETNAM

Hereinafter referred to as ‘the Parties’

Of the one part, and

OF THE OTHER PART

DESIRING to promote, with a view to permanent co-operation and in conditions providing
for predictability of trade, the orderly and equitable development of trade in footwear
the « Community ») and the
products between the European Community (hereinafter
Government of Vietnam (hereinafter « Vietnam).

Recognising the importance of exports of footwear to the continued development of the
economy of Vietnam and the need to ensure that the benefits of unrestricted access to the
European Community market and, where applicable, of the EC’s Generalised Scheme of
Preferences is reserved for footwear originating in Vietnam ;

Resolved to take appropriate action to prevent fraudulent declarations of origin by third
parties which effectively reduce the export potential, employment and added value of
Vietnamese footwear producers ;

HAVING REGARD to the objectives and provisions of the Co-operation Agreement between
the European Community and Vietnam which was signed in Brussels on 17 July 1995,

HAVE AGREED AS FOLLOWS :

Article 1

This Memorandum of Understanding shall apply to products falling under chapter 64 of the
harmonized system, hereinafter referred to as “footwear products”, exported from Vietnam
into the Community.

Article 2

Imports into the Community of the products referred to in Article 1 which are of Vietnamese
origin in accordance with the rules of origin laid down by the relevant Community legislation
and which comply with the terms of this Memorandum of Understanding shall not be subject
to quantitative limits.

Article 3

In order to combat fraud,
arrangements.

the parties have agreed upon the following administrative

1.

Vietnam shall
issue automatically export certificates according to the relevant
Vietnamese legislation in respect of exports of the footwear products referred to in
Article 1. Such products must be of Vietnamese origin according to the rules of
origin laid down by the relevant Community legislation.The format of the export
certificates shall conform to that in Annex I, to be filled out in accordance with

6

2.

3.

4.

5.

Appendix A to Annex I. Each export certificate shall be signed in original by a
representative appointed by the Government of Vietnam.

Vietnam shall supply the Commission of the European Communities with the names
and addresses of the authorities competent to issue the export certificates , together
with specimens of the stamp impressions and signatures used by them. Vietnam shall
inform the Commission of all changes made to the above information.

For the products referred to in Article 1 the competent authorities of the European
Community shall issue automatically an import certificate for the release of the
goods in question for free circulation, upon presentation of the original export
certificates issued by the competent Vietnamese authorities. Such import certificates
shall be issued within five working days of the submission of the application.

Vietnam undertakes to transmit, within six working days from the issuance of each
export certificate, the information on products contained by the export certificates
referred to above. This shall be carried out by way of an electronic linkage between
the competent Vietnamese authorities and the Système Intégré de Gestion de
Licenses (hereinafter referred to as ‘SIGL’) as established by the Community.

In case of significant and unjustified discrepancies between the information received
through the electronic linkage with SIGL and the export certificates submitted to the
competent authorities of the European Community, either Party may request
consultations under Article 6 of this Memorandum of Understanding in order to
identify the reasons for the discrepancies. Should these discrepancies be due to
fraudulent transhipment of products not originating in Vietnam the Parties will agree
appropriate measures in order to avoid their recurrence.

Article 4

The Vietnamese certificate of origin for the purpose of the Communities’ Generalized
Scheme of Preferences shall be issued by Vietnamese competent governmental authoritiy in
accordance with the relevant Community legislation.

Article 5

1.

2.

With a view to ensuring the effective functioning of
this Memorandum of
Understanding, the Community and Vietnam agree to cooperate fully in order to
prevent, to investigate and to take any necessary legal and/or administrative action
against fraud by transhipment, re-routing, false declaration concerning the country or
place of origin, falsification of documents, false declaration concerning quantities,
description or classification of merchandise and by whatever other means.
Accordingly, Vietnam and the Community agree to establish the necessary legal
provisions and administrative procedures permitting effective action to be taken
against such fraud, which shall include the adoption of legally binding corrective
measures against exporters and/or importers involved.

Should the Community believe on the basis of information available that fraud has
occurred, the Community will consult with Vietnam with a view to reaching a
mutually satisfactory solution. These consultations will be held following the
procedure laid down in Article 6.

7

3.

4.

5.

1.

2.

1.

2.

3.

4.

In accordance with the relevant Community legislation, when evidence of fraud has
been provided, the Community shall have the right to refuse the import of the
products in question.

Consultations held under this article shall not prevent free circulation of goods
except when evidence of fraud has been provided.

The Parties agree to establish a system of administrative cooperation to prevent and
to address effectively all problems arising from fraud in accordance with the
provisions of this Memorandum of Understanding.

Article 6

Save where it is otherwise provided, the special consultation procedures referred to
in this Memorandum of Understanding shall be governed by the following rules:

–

–

–

Any request for consultations shall be notified in writing to the other Party.

for consultation shall be followed within 15 days of

The request
the
notification by a statement setting out the reasons and circumstances which, in
the opinion of the requesting Party, justify the submission of such a request.

The Parties shall enter into consultations within one month of notification of
the request at the latest, with a view to reaching agreement or a mutually
acceptable conclusion within one further month at the latest.

If necessary, at the request of either of the Parties, consultations shall be held on any
problems arising from the application of this Memorandum of Understanding. Any
consultations held under this Article shall take place in a spirit of co-operation and
with a desire to reconcile the differences between the Parties.

Article 7

This Memorandum of Understanding shall enter into force on the first day of the
month following the day on which both Parties have notified each other that the legal
procedures necessary to this end have been completed.

In the meantime, it shall be applied provisionaly from 1 January 2000 on condition of
reciprocity, unless it enters into force before that date.

This memorandum shall apply for a period of two years. Thereafter its application
shall be automatically extended for a period of one year, unless either Party notifies
this Memorandum of
in writing the other six months before the expiry of
Understanding that it does not agree to the extension.

Either Party may at any time propose to hold consultations in accordance with
to this Memorandum of
Article 6 with a view to agreeing amendments
Understanding.

Either Party may, at any time, denounce this Memorandum of Understanding by
notifying the other Party in written form. This Memorandum of Understanding shall
cease to apply six months after the date of such notification.

8

5.

Annex I and Appendix A to Annex I attached to this Memorandum of Understanding
shall form an integral part thereof.

Article 8

This Memorandum of Understanding shall be drawn up in duplicate in the Danish, Dutch,
English, Finnish, French, German, Greek,
Italian, Portuguese, Spanish, Swedish and
Vietnamese language, each of these texts being equally authentic.

Done in …on ……

For the European Community

For the Government of Vietnam

9

ANNEX I

1. Goods

consiged

from (exporter's

business name, address, country)

EXPORT CERTIFICATE FOR
PRODUCTS UNDER CHAPTER 64 OF
HARMONIZED SYSTEM

2. Goods consigned to (consignee's name,

ORIGINAL

address, country)

(Footwear Products)

3. Means of transport and route (as far as

4. Issue Number

known)

5. Export year

6. Description of goods

7. Quantity

8. FOB/
Contract
value

9. Certification by the competent authority

I, the undersigned, certify that the goods described above originate in Vietnam according
to the rules of origin laid down by the relevant Community legislation.

10. Competent

authority

(name,

full

address, country)

At ………………………..
On …………………..

(signature)

(stamp)

10

Appendix A to Annex I

Explanatory note concerning item 4 (issue number)

of the Export Certificate

The issue number shall consist of the following elements:

–

–

2 letters identifying Vietnam as follows: VN;

2 letters identifying the Member State foreseen as the country of destination as
follows,

AT = Austria

BL = Benelux

DE = Germany

DK = Denmark

EL = Greece

ES = Spain

FI = Finland

FR = France

GB = United Kingdom

IE = Ireland

IT = Italy

PT = Portugal

SE = Sweden

–

–

–

one number indicating the year of issue, for example 9 for 1999;

two numbers, from 01 to 99, indicating the issuing office for the export certificate;

a number with five digits between 50000 and 99999 allocated to the Member States
foreseen as the country of destination.

11