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VIETNAM’S Special Preferential Import Tariff DURING 2020 – 2022

On September 18, 2020, the Government issues the Decree No. 111/2020/ND-CP on the Preferential Export Tariff and Special Preferential Import Tariff of Vietnam for the implementation of the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union in the 2020 – 2022 period.

Appendix I of the Decree claim: Vietnam’s preferential export tariff schedule for the implementation of the UKVFTA Agreement (Annex I) includes: Code, description of goods, preferential export tax rates in stages when exporting to the United Kingdom of Great Britain and Northern Ireland for each product code;

Appendix II: Vietnam’s preferential import tariff schedule for the implementation of the UKVFTA Agreement (Annex I) includes: Code, description of goods, preferential export tax rates in stages imported into Vietnam From the UK, Ireland for each code.

Goods that are not included in the Preferential Export Tariff specified in Appendix I issued together with this Decree but are in the Export Tariff according to the List of taxable commodity groups specified in Decree No. 57/2020/ND-CP dated May 25, 2020 of the Government amending and supplementing a number of articles of Decree No. 122/2016/ND-CP dated September 1, 2016 of the Government on Export Tariff, Preferential Import Tariff, List of goods and rates of absolute tax, mixed tax, import tax outside the tariff quota and Decree No. 125/2017/ND-CP dated November 16, 2017 amending and supplementing a number of articles of the Decree No. 122/2016/ND-CP (Decree 57/2020/ND-CP) and amendments and supplements (if any) are applied a tax rate of 0% when exporting to the United Kingdom of Great Britain and North America. Ireland (*).

Accordingly, to be eligible for the special preferential import duty rates under the EVFTA, imports must fully satisfy the following conditions:

Being specified in the Special Preferential Import Tariff;

• Being imported into Vietnam from territories of member states of the European Union as prescribed in Appendix III attached to this Decree, United Kingdom of Great Britain and Northern Ireland, the Principality of Andorra; the Republic of San Marino, and the Socialist Republic of Vietnam;

• Meeting all regulations on the origin of goods and having Certificates of origin in accordance with the EVFTA.

Besides, within 01 year from the date of registration of the export declaration, the customs declarant must submit all documents proving that the goods meet the conditions as prescribed and make an additional declaration to enjoy the preferential export duty rate under the EVFTA. Past the prescribed 1-year time limit, the exported goods shall be no longer eligible for the preferential export duty rate under the EVFTA.

In addition, the Decree also stipulates conditions for applying Preferential Export Tariffs under the EVFTA Agreement. Accordingly, goods exported from Vietnam eligible for Preferential Export Tariffs as prescribed must fully satisfy the following conditions:

• To be imported into any territory specified in the EVFTA Agreement, including member territories of the European Union, United Kingdom of Great Britain and Northern Ireland;

• Goods with transport documents (copy) showing the destination is the above territories;

• Being issued with the import customs declaration of the export consignment of Vietnamese origin imported into the aforesaid territories (the copy and translation in English or Vietnamese in case the language used on the declaration is not English).

This Decree takes effect from the date of signing.

web :http://atslegal.vn/vietnams-special-preferential-import-tariff-during-2020-2022/