Memorandum of Understanding between the European Community and the Government of Vietnam on the prevention of fraud in trade in footwear products
Date: 2000-10-10
Institutions: European Community, Viet Nam
Subjects: Viet Nam, export licence, footwear industry, fraud, protocol to an agreement, trade agreement (EU)

4. 1. 2000

EN

Official Journal of the European Communities

L 1/13

MEMORANDUM OF UNDERSTANDING

between the European Community and the Government of Vietnam on the prevention of fraud in
trade in footwear products

THE EUROPEAN COMMUNITY

of the one part, and

THE GOVERNMENT OF VIETNAM

of the other part,

hereinafter referred to as ‘the Parties’

DESIRING to promote, with a view to permanent cooperation and in conditions providing for predictability of trade, the
orderly and equitable development of trade in footwear products between the European Community (hereinafter the
Community) and the 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 Cooperation 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 harmonised 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 Memor-
andum of Understanding shall not be subject to quantitative
limits.

Article 3

In order to combat fraud, the parties have agreed upon the
following administrative arrangements.

1. Vietnam shall

issue

export

automatically

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
shall
conform to that in Annex I, to be filled out in accordance
with Appendix A to Annex I. Each export certificate shall be
signed in original by a representative appointed by the
Government of Vietnam.

the export certificates

2. Vietnam shall supply the Commission of

the European
Communities with the names and addresses of the authori-
ties 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.

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

4. 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.

5. 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 fraudu-
lent transhipment of products not originating in Vietnam
the Parties will agree appropriate measures in order to avoid
their recurrence.

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Official Journal of the European Communities

4. 1. 2000

Article 4

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

Article 5

1. 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 effec-
tive action to be taken against such fraud, which shall include
the adoption of legally binding corrective measures against
exporters and/or importers involved.

2.
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 proce-
dure laid down in Article 6.

3.
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.

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

5. 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 consulta-
1.
tion procedures referred to in this Memorandum of Under-
standing shall be governed by the following rules:

— Any request for consultations shall be notified in writing to

the other Party.

— The request for consultation shall be followed within 15
days of the notification by a statement setting out the

in the opinion of the
reasons and circumstances which,
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.

2.
If necessary, at the request of either of the Parties, consul-
tations shall be held on any problems arising from the applica-
tion of this Memorandum of Understanding. Any consultations
held under this Article shall take place in a spirit of coopera-
tion and with a desire to reconcile the differences between the
Parties.

Article 7

1. 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 neces-
sary to this end have been completed.

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

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

3.
Either Party may at any time propose to hold consultations
in accordance with Article 6 with a view to agreeing amend-
ments to this Memorandum of Understanding.

4.
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.

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 Viet-
namese language, each of these texts being equally authentic.

For the European Community

For the Government of Vietnam

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Official Journal of the European Communities

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ANNEX I

1. Goods consigned from (exporter’s business name, address,

country)

EXPORT CERTIFICATE FOR PRODUCTS UNDER
CHAPTER 64 OF HARMONISED SYSTEM

ORIGINAL

2. Goods consigned to (consignee’s name, address, country)

3. Means of transport and route (as far as known)

4. Issue Number

(Footwear Products)

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) (cid:1)(stamp)

...................

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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.