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Vietnam's Decree on preferential export- import tariff schedule for EVFTA implementation 2020 - 2022

17/03/02021 | BY linhnt

On 18 September 2020, the Vietnamese Government issued Decree No. 111/ND-CP on Viet Nam's Preferential Export Tariff Schedule and Special Preferential Import Tariff for the implementation of the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union in the period 2020-2022 to implement Viet Nam's commitments to open good markets under the EVFTA.

Accordingly, the Decree stipulates the Preferential Export Tariff Schedule, the Special Preferential Import Tariff Schedule of Vietnam to implement the EVFTA and the eligibility requirements under this Agreement for preferential export tariff and special preferential import tariff. In the case of customs declarations of export and import goods registered between 1 August 2020 and before the effective date of this Decree, if those goods comply with the eligibility requirements for a preferential export tariff and a special preferential import tariff pursuant to this Agreement and a higher tax rate has been paid, the customs authority shall manage the excessive tax in compliance with the law on tax administration. The terms of this Decree shall also extend to goods exported from Vietnam to the United Kingdom and Northern Ireland and to goods imported from the United Kingdom and Northern Ireland into Vietnam between 1 August 2020 and 31 December 2020.

Under the EVFTA, Vietnam commits to abolish import tariff of 48.5% of tariff lines, equivalent to 64.5% of EU export quota as soon as the Agreement comes into effect. Subsequently, after 7 years, Vietnam shall eliminate the import tariff of 91.8% of tariff lines equivalent to 97.1% of EU export quota. After 10 years, this elimination is equivatlent to 98.3% of tariff lines and 99.8% of EU export quota respectively. Vietnam shall apply the import tariff elimination schedule of more than 10 years or the TRQ in accordance with WTO commitments to approximately 1.7% of the remaining EU tariff lines.

With regard to export taxes, Vietnam and the EU committed to not impose export tariff on goods when they are exported from one’s territory to the other party’s territory. However, Vietnam has reversed the right to impose export tariff on tariff line 526, which includes important products such as crude oil, coal (except for coal). For tariff line with current relatively high export tariff rates, Vietnam has committed to the ceiling export tariff of 20% for a maximum period of 5 years (except for manganese with the ceiling export tariff of 10%). For other products, Vietnam commits to eliminate export tariff under the program for a maximum of 16 years.

Source: Vietnam FTA Portal