On September 18th 2020, Prime Minister Nguyen Xuan Phuc issued the Decree no. 111/2020/ND-CP (Decree) relating to Vietnam’s import & export tariffs schedule in accordance to the European Union Vietnam Free Trade Agreement (EVFTA), for the period of 2020 – 2022.
The Preferential Export Tariffs specified in Appendix I attached to this Decree include goods codes, descriptions and preferential export tax rates for different stages to export countries as prescribed in the EVFTA’s regulations, including: European Union member states; the United Kingdom of Great Britain and Northern Ireland for each code.
The Decree specifies conditions for applying preferential export tax rates under the EVFTA. Accordingly, to enjoy preferential export tax rates, Vietnamese exported goods must satisfy the following conditions:
- They can be imported into territories prescribed in the EVFTA, including: (i) Territories of EU member states identified in the Appendix III to the Decree No. 111/2020-ND-CP ; (ii) Territory of the United Kingdom of Great Britain and Northern Ireland (only applicable to goods exported from Vietnam within the period from August 1st to December 31st, 2020).
- There is a transport document (copy) showing the destination is the countries specified in the first condition.
- There is an import customs declaration of the export consignment of Vietnamese origin imported into the territories specified in the first condition (copy and English or Vietnamese translation if the declaration is not in English).
Vietnam's Special Preferential Import Tariffs for the implementation of the EVFTA specified in Appendix II attached to this Decree, includes code, descriptions, and special preferential import tax rates for stages for goods imported from the EU member states; United Kingdom of Great Britain and Northern Ireland; the Principality of Andorra; The Republic of San Marino and Vietnam (Goods imported from non-tariff zones to the domestic market) for each goods code.
To enjoy special preferential import tax rates under the EVFTA, imported goods must satisfy the following conditions:
- They must be listed on the Special preferential tariff schedule prescribed in Appendix II to the Decree No. 111/2020/ND-CP.
- They are imported into Vietnam from: (i) Territories of EU member states identified in the Appendix III; (ii) Territory of the United Kingdom of Great Britain and Northern Ireland (only applicable to goods imported into Vietnam within the period from August 1st to December 31st, 2020); (iii) Territories of Principality of Andorra and the Republic of San Marino; (iv) The Socialist Republic of Vietnam (applicable to goods imported from non-tariff zones into local markets).
- They must meet regulations on origin of goods and obtain certificates of origin under EVFTA's terms and conditions.
The Decree no. 111/2020/ND-CP takes effect from 18th September 2020. According to the Decree, for all Customs import & export declarations registered from 1st August 2020 until the effective date of the Decree, if the goods satisfied all conditions to benefit from the preferential/special-preferential export/import duty rate will be allowed to claim back the overpaid duty amount if the Customs declarant had already paid with the higher rate.