Official name: UK – Vietnam Free Trade Agreement (UKVFTA)
Parties/territories: The United Kingdom and the Socialist Republic of Vietnam
Date of entry into force: 01.01.2021
This is a continuity FTA modelled on the pre-existing EU-Vietnam FTA to which the UK was a party until 31st December 2020.
The new UK-Vietnam FTA covers most of the free trade elements which previously existed between the UK and Vietnam but the liberalisation in fashion and textiles is heavily weighted in favour of Vietnamese exports of fashion and textiles products to the UK. Tariffs on UK exports of similar products (especially the HCC codes 61-63) are planned to be phased out from 15-20% duty over approximately six years.
This agreement is primarily important for UK importers of Vietnamese fashion, textiles and footwear, as well as other raw materials.
UKFT has created a guide to give a basic overview of this new agreement, including details on:
Duty arrangements under the FTA from start
F&T HCC categories included on a duty free basis from Vietnam to the UK
F&T HCC categories which will still attract duty/quota
Rules of Origin (RoO) requirements to qualify for the FTA
Mechanism for exporters to register/demonstrate RoO compliance
VAT required on import/export at the border
Labelling requirements for goods in target country
Standards and requirements
Intellectual property issues
How does this FTA replicate/differ from previous FTAs the UK enjoyed as a member of the EU single market up to 31st December 2020
The information set out in this guide provides a basic overview, however, UKFT has more information and experience of how this market works.