Decree No. 116/2022/ND-CP

DECREE

ON THE PREFERENTIAL EXPORT TARIFF, SPECIAL PREFERENTIAL IMPORT TARIFF OF VIETNAM FOR THE IMPLEMENTATION OF THE FREE TRADE AGREEMENT BETWEEN THE SOCIALIST REPUBLIC OF VIETNAM AND THE EUROPEAN UNION FOR THE 2022 - 2027 PERIOD

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law amending and supplementing a number of articles of the Law on Organization of the Government and the Law on Organization of Local Government dated November 22, 2019;

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

Pursuant to the Law on Customs dated June 23, 2014;

Pursuant to the Law on Treaties dated April 9, 2016;

In order to implement Resolution No. 102/2020/QH14 dated June 8, 2020 of the National Assembly ratifying the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union;

In order to implement 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 this Decree on the Preferential Export Tariff, the Special Preferential Import Tariff of Vietnam for the implementation of 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 provides for the Preferential Export Tariff and the Special Preferential Import Tariff of Vietnam for the implementation of the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union (hereinafter referred to as the EVFTA) for the 2022 - 2027 period, and the conditions for eligibility for the preferential export duty rates and special preferential import duty rates under this Agreement.

Article 2. Subjects of application

1. Taxpayers as prescribed by the Law on Export and Import Duties.

2. Customs authorities and customs officers.

3. Organizations and individuals having rights and obligations related to exported and imported goods.

Article 3. Preferential Export Tariff, Special Preferential Import Tariff of Vietnam for the 2022 - 2027 period

1. The Preferential Export Tariff of Vietnam for the implementation of the EVFTA for the 2022 - 2027 period in Appendix I to this Decree comprises the commodity code, description of goods, and the preferential export duty rates for each period applicable to exports to the territories specified at Point a, Clause 2, Article 4 of this Decree, for each commodity code.

2. The Special Preferential Import Tariff of Vietnam for the implementation of the EVFTA for the 2022 - 2027 period in Appendix II to this Decree comprises the commodity code, description of goods, and the special preferential import duty rates for each period applicable to imports from the territories specified at Point b, Clause 3, Article 5 of this Decree, for each commodity code.

3. The "Commodity code" column and the "Description of goods" column in the Appendices promulgated together with this Decree are formulated on the basis of Vietnam's List of Exported and Imported Goods and detailed at the 8-digit or 10-digit code level.

In case Vietnam's List of Exported and Imported Goods is amended or supplemented, the customs declarant shall declare the description and commodity code according to the amended or supplemented List of Exported and Imported Goods and apply the duty rate of the amended or supplemented commodity code specified in the Appendices promulgated together with this Decree.

4. The "Duty rate (%)" column in Appendix I and Appendix II: The duty rate applicable for different periods, comprising:

a) The "2022" column: The duty rate applicable from December 30, 2022 to December 31, 2022;

b) The "2023" column: The duty rate applicable from January 1, 2023 to December 31, 2023;

c) The "2024" column: The duty rate applicable from January 1, 2024 to December 31, 2024;

d) The "2025" column: The duty rate applicable from January 1, 2025 to December 31, 2025;

dd) The "2026" column: The duty rate applicable from January 1, 2026 to December 31, 2026;

e) The "2027" column: The duty rate applicable from January 1, 2027 to December 31, 2027.

Article 4. Conditions and procedures for application of the preferential export duty rate of Vietnam

1. Items not included in the Preferential Export Tariff specified in Appendix I to this Decree shall be subject to a 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 rate under the EVFTA

Goods exported from Vietnam that are eligible for the preferential export duty rates specified in Appendix I to this Decree and in Clause 1 of this Article must fully satisfy the following conditions:

a) Being imported into the territory of a member of the European Union specified in Appendix III to this Decree.

b) Having a transport document (copy) showing the destination as the territories specified at Point a, Clause 2 of this Article, in accordance with current law.

c) Having an import customs declaration or a document replacing the import customs declaration (copy) of the shipment exported from Vietnam and imported into the territory of the countries specified at Point a, Clause 2 of this Article, in accordance with current law.

d) If the documents specified at Points b and c, Clause 2 of this Article are not in Vietnamese or English, the customs declarant shall translate them into Vietnamese or English and shall be responsible for the content of the translation.

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

a) At the time of carrying out customs procedures, the customs declarant shall declare the export declaration, apply the export duty rate, calculate and pay duty according to the Export Tariff under the List of dutiable items in the Decree on the Export Tariff, the Preferential Import Tariff, the List of goods and the absolute duty rates, mixed duties, and out-of-quota import duties, and their amending or supplementing documents.

b) Within 1 year from the date of registration of the export declaration, the customs declarant shall submit the complete documents proving that the goods satisfy the requirements specified at Points b and c, Clause 2 of this Article, and shall make an additional declaration to apply the preferential export duty rate under the EVFTA. After the expiry of the above 1-year period, exported goods shall not be eligible for the preferential export duty rate under the EVFTA.

c) The customs authority shall examine the dossier and check the preferential export duty rate according to the Preferential Export Tariff specified in Appendix I to this Decree; if the exported goods fully satisfy the conditions specified in Clause 2 of this Article, the preferential export duty rate under the EVFTA shall be applied and the overpaid duty amount shall be handled for the customs declarant in accordance with the law on tax administration.

Article 5. Conditions for application of the special preferential import duty rate of Vietnam

1. The symbol "*": Imported goods not eligible for the special preferential import duty rate under the EVFTA.

2. For imported goods subject to tariff quotas, comprising certain items under headings 04.07, 17.01, 24.01, 25.01, the in-quota special preferential import duty rate is the rate specified in Appendix II to this Decree; the list and annual import tariff quota quantities shall comply with the regulations of the Ministry of Industry and Trade, and the out-of-quota import duty rate shall apply according to the Export Tariff, the Preferential Import Tariff, the List of goods and the absolute duty rates, mixed duties, and out-of-quota import duties issued by the Government at the time of importation.

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

Imported goods eligible for the special preferential import duty rate under the EVFTA must fully satisfy 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:

- The territory of a member of the European Union specified in Appendix III to this Decree;

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

- The territories of Ceuta and Melilla.

c) Satisfying the regulations on origin of goods and having a document certifying the origin of goods in accordance with the EVFTA.

Article 6. Goods from non-tariff zones of Vietnam

Goods from non-tariff zones of Vietnam imported into the domestic market that are eligible for the special preferential import duty rate under the EVFTA must fully satisfy the conditions specified at Points a and c, Clause 3, Article 5 of this Decree.

Article 7. Effect

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

2. Decree No. 111/2020/ND-CP dated September 18, 2020 of the Government promulgating the Preferential Export Tariff, the Special Preferential Import Tariff of Vietnam for the implementation of the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union for the 2020 - 2022 period ceases to be effective from the effective date of this Decree.

Article 8. Responsibility for implementation

Ministers, Heads of ministerial-level agencies, Heads of Government-attached agencies, Chairpersons of the People's Committees of provinces and centrally-run cities, and related organizations and individuals shall be responsible for implementing this Decree.