Decree 116/2022/ND-CP Preferential Export Tariff to implement EVFTA in 2022-2027

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 for the 2022-2027 period^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

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

Pursuant to the June 23, 2014 Customs Law;

Pursuant to the April 9, 2016 Law on Treaties;

In implementation of 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 implementation 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 for the 2022-2027 period.

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 (the EVFTA) for the 2022-2027 period, and conditions for application of the preferential export duty rates and special preferential import duty rates under this Agreement.

Article 2. Subjects of application

1. Duty payers as defined 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 Tariff and Special Preferential Import Tariffs for the 2022-2027 period

1. Vietnam’s Preferential Export Tariff to implement the EVFTA for the 2022-2027 period provided in Appendix I to this Decree includes headings, descriptions, and preferential export duty rates applicable in different periods to each heading of goods exported to the territories specified at Point a, Clause 2, Article 4 of this Decree.

2. Vietnam’s Special Preferential Import Tariff to implement the EVFTA for the 2022-2027 period provided in Appendix II to this Decree includes headings, descriptions, and special preferential import duty rates applicable in different periods to each heading of goods imported from the territories specified at Point b, Clause 3, Article 5 of this Decree.

3. The column “Heading” and the column “Description” in the Appendices to this Decree are developed based on Vietnam’s List of imported and exported goods and classified by 8-digit or 10-digit codes.

In case Vietnam’s List of imported and exported goods is modified/supplemented, customs declarants shall declare descriptions and headings of goods based on the modified/supplemented List of imported and exported goods and apply the duty rates for the modified/supplemented headings provided in the Appendices to this Decree.

4. Column “Duty rate (%)” in Appendices I and II: duty rates applicable in different periods, specifically as follows:

a/ Column “2022”: duty rates applicable from December 30, 2022, through December 31, 2022;

b/ Column “2023”: duty rates applicable from January 1, 2023, through December 31, 2023;

c/ Column “2024”: duty rates applicable from January 1, 2024, through December 31, 2024;

d/ Column “2025”: duty rates applicable from January 1, 2025, through December 31, 2025;

dd/ Column “2026”: duty rates applicable from January 1, 2026, through December 31, 2026;

e/ Column “2027”: duty rates applicable from January 1, 2027, through December 31, 2027.

Article 4. Conditions and procedures for application of Vietnam’s preferential export duty rates

1. Commodity items not included in the Preferential Export Tariff provided in Appendix I to this Decree will be eligible for the duty rate of 0% when exported to the territories specified at Point a, Clause 2 of this Article.

2. Conditions for application of the preferential export duty rates under the 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 satisfying the following conditions:

a/ Being imported into the territories of the member states of the European Union as specified in Appendix III to this Decree.

b/ Being accompanied by transport documents (copies) showing the destinations which are the territories specified at Point a, Clause 2 of this Article in accordance with current law.

c/ Being accompanied by import customs declarations or substitutes for customs declarations (copies) of the shipments of goods exported from Vietnam and imported into the territories specified at Point a, Clause 2 of this Article in accordance with current law.

 d/ In case the documents referred to at Points b and c, Clause 2 of this Article are made in a language other than Vietnamese or English, the customs declarants shall have them translated into Vietnamese or English and be held responsible for the contents of the translations.

3. Procedures for application of the preferential export duty rates under the EVFTA

a/ When carrying out customs procedures, customs declarants shall fill in export declaration forms, apply export duty rates, and calculate and pay export duty according to the Export Tariff based on the List of dutiable commodity items as specified in the Decree on the Export Tariff, the Preferential Import Tariff and the List of commodity items and their specific duty rates, compound duty rates and out-of-quota import duty rates, and amending and supplementing documents.

b/ Within 1 year after registering export declarations, customs declarants shall submit sufficient documents proving the goods’ satisfaction of the conditions specified at Points b and c, Clause 2 of this Article, and make additional declarations to apply the preferential export duty rates under the EVFTA. Past the above-said 1-year time limit, the exported goods will be no longer eligible for the preferential export duty rates under the EVFTA;

c/ The concerned customs office shall examine the dossier and preferential export duty rates based on the Preferential Export Tariff provided in Appendix I to this Decree; if finding that the exported goods fully satisfy the conditions specified in Clause 2 of this Article, the customs office shall apply the preferential export duty rates under the EVFTA and handle the overpaid duty amount for the customs declarant according to the law on tax administration.

Article 5. Conditions for application of Vietnam’s special preferential import duty rates

1. The symbol “*” denotes imported goods not eligible for the EVFTA’s special preferential import duty rates.

2. For imported goods subject to tariff-rate quotas, including a number of commodity items of Headings 04.07, 17.01, 24.01, and 25.01, within-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-rate quotas must comply with regulations of the Ministry of Industry and Trade and out-of-quota import duty rates must comply with the Government’s Export Tariff, Preferential Import Tariff and List of commodity items and their specific duty rates, compound duty rates and out-of-quota import duty rates at the time of importation.

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

To be eligible for the special preferential import duty rates under the EVFTA, imported goods must fully satisfy the following conditions:

a/ Being included in the Special Preferential Import Tariff provided in Appendix II to this Decree.

b/ Being imported into Vietnam from:

- The territories of the member states of the European Union as specified in Appendix III to this Decree;

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

- The territories of Ceuta and Melilla.

c/ Complying with the regulations on rules of origin and being accompanied by a proof of origin in accordance with the EVFTA.

Article 6. Goods from Vietnam’s non-tariff zones

Goods imported from Vietnam’s non-tariff zones into the domestic market will be eligible for the special preferential import duty rates under the EVFTA if fully satisfying the conditions specified at Points a and c, Clause 3, Article 5 of this Decree.

Article 7. Effect

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

2. The Government’s Decree No. 111/2020/ND-CP of September 18, 2020, 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 for the 2020-2022 period, ceases to be effective on the date this Decree takes effect.

Article 8. 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
For the Prime Minister
Deputy Prime Minister
LE MINH KHAI

* The Appendices to this Decree are not translated.