EAEU no longer offers GSP incentives for Vietnam from October

According to information of Trade Policy Department - Eurasian Economic Commission (EEC), Vietnam will no longer benefit from Eurasian Economic Union Generalized System of Preferences (EAEU GSP) from 12 October 2021 (EAEU members includes Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan). This change is expected to have a strong impact on enterprises whose export activities are enjoying GSP incentives from the EAEU markets, especially the Russian market. 

Specifically, on March 15, 2021, The Board of the Eurasian Economic Commission (EEC) approved Decision 17 on adjusting the list of developing and least developed countries enjoying tariff preferences from the EAEU GSP. EAEU GSP is an import tariff preferences system that EAEU unilaterally grants to a number of developing and least developed countries, including Vietnam.

According to this Decision, the EAEU removed 75 developing countries and the two least developed countries from the list of countries entitled to GSP incentives because they are no longer in line with the criteria for enjoying economic assistance from the EAEU specified in Decision No. 47 on April 6, 2016 of the EEC. In addition to Vietnam, the EAEU also excludes other countries from this list such as China, India, Korea, Singapore, Brunei,... The change will officially take effect from October 12, 2021.

For Vietnam, the EAEU GSP mechanism should have ended as soon as Free Trade Agreement between Vietnam and the EAEU came into effect in 2016. However, the EAEU approved a 5-year extension for Vietnam to continue enjoying GSP after the entry into force of this Agreement.

Enterprises exporting goods to the EAEU markets, especially the Russian market – Vietnam's largest trading partner in the EAEU, need to pay attention to this deadline and adjust their export activities accordingly. They are recommended to learn about tariff preferences and corresponding rules of origin to take advantage of tariff preferences from the Vietnam – EAEU FTA as an alternative to the GSP mechanism that will end in the near future.

The list of countries and items entitled to EAEU GSP before and after 12 October 2021 can be found here: http://www.eurasiancommission.org/en/act/trade/dotp/commonSytem/Pages/normatBaza.aspx

Information about the Vietnam - EAEU FTA can be found here: https://wtocenter.vn/fta/188-vietnam---eurasian-economic-union/1

Center for WTO and International Trade - VCCI