Decree No. 53/2021/ND-CP special preferential import tariff schedule Free Trade Agreement

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 United Kingdom of Great Britain and Northern Ireland for the 2021-2022 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 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 June 13, 2019 Law on Tax Administration;

Pursuant to the April 9, 2016 Law on Treaties;

To implement the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom of Great Britain and Northern Ireland;

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 United Kingdom of Great Britain and Northern Ireland for the 2021-2022 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 United Kingdom of Great Britain and Northern Ireland (UKVFTA) for the 2021-2022 period, and conditions for enjoyment of the preferential export duty rates and special preferential import duty rates according to the UKVFTA.

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 Tariff and Special Preferential Import Tariff for the 2021-2022 period

1. To promulgate together with this Decree:

a/ Appendix I - Vietnam’s Preferential Export Tariff to implement the UKVFTA, covering commodity codes, commodity descriptions and the preferential export duty rate applicable to each commodity code in each period upon exportation of goods to the United Kingdom of Great Britain and Northern Ireland;

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

2. The columns “Commodity code” and “Commodity descriptions” in the appendices to this Decree are formulated on the basis of 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 commodity codes based on the revised list and apply duty rates applicable to the revised commodity 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, specifically as follows:

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

b/ 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 provided in Appendix I to this Decree but included in the Export Tariff according to the List of dutiable commodity groups specified in the Government’s Decree No. 57/2020/ND-CP of May 25, 2020, amending and supplementing a number of articles of the Government’s 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) will be eligible for the duty rate of 0% when being exported to the United Kingdom of Great Britain and Northern Ireland.

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

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 United Kingdom of Great Britain and Northern Ireland.

b/ Being accompanied by a transport document (copy) showing the destination which is the United Kingdom of Great Britain and Northern Ireland.

c/ Being accompanied by an import customs declaration, for the shipment of exported goods of Vietnamese origin imported into the United Kingdom of Great Britain and Northern Ireland (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 the UKVFTA

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 specified 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 according to the UKVFTA. Past this 1-year time limit, the exported goods will become ineligible for the preferential export duty rates according to the UKVFTA;

c/ The concerned customs office shall examine the dossier and preferential export duty rates according to the Preferential Export Tariff provided in Appendix I to this Decree. If the exported goods fully meet the conditions specified in Clause 2 of this Article, the customs office shall apply the preferential export duty rates according to the UKVFTA 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 the UKVFTA’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 UKVFTA

Imported goods will be eligible for special preferential import duty rates according to the UKVFTA if fully meeting 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 United Kingdom of Great Britain and Northern Ireland;

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

c/ Meeting requirements on origin and being accompanied by documents certifying their origin according to the UKVFTA.

Article 6. Effect

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

2. For exported and imported goods with customs declarations registered in the period from January 1, 2021, to the day before the effective date of this Decree, which fully meet conditions for application of Vietnam’s preferential export duty rates and special preferential import duty rates specified in this Decree and for which duties have been paid 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
For the Prime Minister
Deputy Prime Minister
LE MINH KHAI

* The appendices to this Decree are not translated.