Decree No. 111/2020/ND-CP Preferential Export Tariff Schedule under EU Vietnam Trade Agreement during 2020-2022

DECREE

On Vietnam’s Preferential Export Tariff and Special Preferential Import Tariff to implement the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union during 2020-2022^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the April 6, 2016 Law on Import Duty and Export Duty;

Pursuant to the June 23, 2014 Customs Law;

Pursuant to the June 13, 2019 Law on Tax Administration;

Pursuant to the April 9, 2016 Law on Treaties;

Pursuant to the National Assembly’s Resolution No. 102/2020/QH14 of June 8, 2020, ratifying the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union;

In furtherance of the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union;

At the proposal of the Minister of Finance;

The Government promulgates the Decree on Vietnam’s Preferential Export Tariff and Special Preferential Import Tariff to implement the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union during 2020-2022.

Article 1.Scope of regulation

This Decree promulgates Vietnam’s Preferential Export Tariff and Special Preferential Import Tariff to implement the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union (EVFTA) during 2020-2022, and conditions for entitlement to the preferential export duty rates and special preferential import duty rates according to this Agreement.

Article 2.Subjects of application

1. Duty payers as specified in the Law on Import Duty and Export Duty.

2. Customs offices and customs officers.

3. Organizations and individuals that have rights and obligations relating to imported and exported goods.

Article 3.Vietnam’s Preferential Export Tariffs and Special Preferential Import Tariffs during 2020-2022

1. To promulgate together with this Decree:

a/ Appendix I - Vietnam’s Preferential Export Tariff to implement EVFTA, covering commodity codes and descriptions and the preferential export duty rate applicable to each commodity code in each time period upon exportation of goods to the territories specified at Point a, Clause 2, Article 4 of this Decree.

b/ Appendix II - Vietnam’s Special Preferential Import Tariff to implement EVFTA, covering commodity codes and descriptions and the special preferential import duty rate applicable to each commodity code in each time period upon importation of goods from the territories specified at Point b, Clause 3, Article 5 of this Decree.

2. Columns “Commodity code” and “Commodity descriptions” in the Appendices to this Decree are formulated on the basis of the Vietnam’s List of imported and exported goods and prescribed in detail according to 8-digit or 10-digit codes.

In case the List of Vietnam’s imported and exported goods is revised, customs declarants shall declare commodity descriptions and codes based on the revised list and apply duty rates applicable to revised commodidy codes as specified in the Appendices to this Decree.

The classification of goods must comply with Vietnam’s law.

3. Column “Duty rate (%)” in Appendices I and II: Duty rates to be applied in different periods, including:

a/ Column “1/8/2020 - 31/12/2020”: Duty rates to be applied in the period from August 1, 2020, through December 31, 2020;

b/ Column “2021”: Duty rates to be applied in the period from January 1, 2021, through December 31, 2021;

c/ Column “2022”: Duty rates to be applied in the period from January 1, 2022, through December 31, 2022;

Article 4.Vietnam’s Preferential Export Tariff

1. Commodity items not included in the Preferential Export Tariff specified in Appendix I to this Decree but included in the Export Tariff according to the list of dutiable commodity groups prescribed in the Government’s Decree No. 57/2020/ND-CP of May 25, 2020, amending and supplementing a number of articles of Decree No. 122/2016/ND-CP of September 1, 2016, on the Export Tariff, the Preferential Import Tariff and the list of commodity items and their specific duty rates, combined duty rates and out-of-quota duty rates, and Decree No. 125/2017/ND-CP of November 16, 2017, amending and supplementing a number of articles of Decree No. 122/2016/ND-CP (below referred to as Decree No. 57/2020/ND-CP), and amending and supplementing documents (if any) are eligible for the duty rate of 0% when being exported to the territories specified at Point a, Clause 2 of this Article.

2. Conditions for application of the preferential export duty rates according to EVFTA

Goods exported from Vietnam will be eligible for the preferential export duty rates specified in Appendix I to this Decree and Clause 1 of this Article if fully meeting the following conditions:

a/ Being imported into the territories specified in EVFTA, including:

- Territories of European Union member states specified in Appendix III to this Decree; and,

- The United Kingdom of Great Britain and Northern Ireland.

b/ Having a transport document (copy) showing the destinations which are the territories specified at Point a, Clause 2 of this Article;

c/ Having an import customs declaration of the shipment of exported goods of Vietnamese origin imported into the territories specified at Point a, Clause 2 of this Article (a copy of the declaration together with its English or Vietnamese translation in case the declaration is not made in English).

3. Procedures for application of preferential export duty rates according to EVFTA

a/ When carrying out customs procedures, a customs declarant shall make an export declaration, apply export duty rates, calculate and pay export duty according to the Export Tariff according to the list of dutiable commodity items as prescribed in Decree No. 57/2020/ND-CP and amending and supplementing documents (if any);

b/ Within 1 year after registering the export declaration, the customs declarant shall submit sufficient documents proving that the goods meet the conditions specified at Points b and c, Clause 2 of this Article (1 copy of each document) and make additional declaration to apply the preferential export duty rates under EVFTA. Past the above-said 1-year time limit, the exports will become ineligible for the preferential export duty rates according to EVFTA;

c/ The concerned customs office shall examine the dossier and preferential export duty rates according to the Preferential Export Tariff specified in Appendix I to this Decree. If the exports fully meet the conditions specified in Clause 2 of this Article, the customs office shall apply the preferential export duty rates according to EVFTA and handle the overpaid duty amount for the customs declarant according to the law on tax administration.

Article 5.Vietnam’s Special Preferential Import Tariff

1. Symbol “*”: Imported goods ineligible for EVFTA’s special preferential import duties.

2. For imported goods subject to tariff quotas, including a number of commodity items of Headings 04.07; 17.01; 24.01; and 25.01, in-quota special preferential import duty rates are the duty rates specified in Appendix II to this Decree; the list and volume of annual import tariff quotas must comply with regulations of the Ministry of Industry and Trade and out-of-quota import duty rates must comply with Decree No. 57/2020/ND-CP and amending and supplementing documents (if any) at the time of import.

3. Conditions for application of special preferential import duty rates according to the EVFTA

Imported goods will be eligible for special preferential import duty rates according to EVFTA if fully meeting the following conditions:

a/ Being included in the Special Preferential Import Tariff specified in Appendix II to this Decree;

b/ Being imported into Vietnam from:

- Territories of European Union member states specified in Appendix III to this Decree;

- The United Kingdom of Great Britain and Northern Ireland;

- The Principality of Andorra; the Republic of San Marino; and,

- The Socialist Republic of Vietnam (goods imported from non-tariff zones to the domestic market).

c/ Meeting requirements on origin and having documents certifying their origin  according to EVFTA.

Article 6.Effect

1. This Decree takes effect on the date of its signing.

2. This Decree only applies to goods exported from Vietnam to the United Kingdom of Great Britain and Northern Ireland as specified at Point a, Clause 2, Article 4 of this Decree and goods imported into Vietnam from the United Kingdom of Great Britain and Northern Ireland as specified at Point b, Clause 3, Article 5 of this Decree in the period from August 1, 2020, through December 31, 2020.

3. For exported and imported goods having customs declarations registered in the period from August 1, 2020, to the day before the effective date of this Decree, in case such goods fully meet conditions for application of Vietnam’s preferential export duty rates and special preferential import duty rates prescribed in this Decree and customs declarants have paid duties at a higher rate, customs offices shall handle the overpaid duty amounts in accordance with the law on tax administration.

Article 7.Implementation responsibility

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related organizations and individuals shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC

* The Appendices to this Decree are not translated.