Decree No. 117/2022/ND-CP

DECREE

ON THE SPECIAL PREFERENTIAL EXPORT TARIFF AND SPECIAL PREFERENTIAL IMPORT TARIFF OF VIETNAM FOR THE IMPLEMENTATION OF THE FREE TRADE AGREEMENT BETWEEN THE SOCIALIST REPUBLIC OF VIETNAM AND THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND 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. 31/NQ-CP dated March 12, 2021 of the Government approving the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom of Great Britain and Northern Ireland;

In order 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 this Decree on the Special 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 United Kingdom of Great Britain and Northern Ireland for the 2022 - 2027 period.

Article 1. Scope of regulation

This Decree promulgates the Special 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 United Kingdom of Great Britain and Northern Ireland (hereinafter referred to as the UKVFTA Agreement) for the 2022 - 2027 period, and the conditions for eligibility for the special preferential export duty rates and special preferential import duty rates under the UKVFTA 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. Special Preferential Export Tariff and Special Preferential Import Tariff of Vietnam for the 2022 - 2027 period

1. The Special Preferential Export Tariff of Vietnam for the implementation of the UKVFTA Agreement for the 2022 - 2027 period, set out in Appendix I to this Decree, comprises the commodity code, description of goods, and special preferential export duty rates by period applicable to each commodity code when exported to the United Kingdom of Great Britain and Northern Ireland.

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

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.

Classification of goods shall comply with Vietnamese law.

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

a) Column "2022": Duty rate applicable from December 30, 2022 through December 31, 2022.

b) Column "2023": Duty rate applicable from January 1, 2023 through December 31, 2023.

c) Column "2024": Duty rate applicable from January 1, 2024 through December 31, 2024.

d) Column "2025": Duty rate applicable from January 1, 2025 through December 31, 2025.

dd) Column "2026": Duty rate applicable from January 1, 2026 through December 31, 2026.

e) Column "2027": Duty rate applicable from January 1, 2027 through December 31, 2027.

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

1. Goods not included in the Special Preferential Export Tariff specified in Appendix I promulgated together with this Decree shall be subject to a duty rate of 0% when exported to the United Kingdom of Great Britain and Northern Ireland.

2. Conditions for application of the special preferential export duty rate under the UKVFTA Agreement

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

a) Being imported into the United Kingdom of Great Britain and Northern Ireland.

b) Having a transport document (copy) showing the destination as the United Kingdom of Great Britain and Northern Ireland in accordance with current provisions of law.

c) Having an import customs declaration or a document substituting for the customs declaration (copy) of the shipment exported from Vietnam and imported into the United Kingdom of Great Britain and Northern Ireland, in accordance with current provisions of law.

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

3. Procedures for application of the special preferential export duty rate under the UKVFTA Agreement

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 goods specified in 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.

b) Within 1 year from the date of registration of the export declaration, the customs declarant shall submit sufficient documents proving that the goods satisfy the requirements specified at Points b and c, Clause 2 of this Article (1 copy) and make a supplementary declaration to apply the special preferential export duty rate under the UKVFTA Agreement. After the above 1-year time limit, exported goods shall not be eligible for the special preferential export duty rate under the UKVFTA Agreement.

c) The customs authority shall examine the dossier and verify the special preferential export duty rate according to the Special Preferential Export Tariff specified in Appendix I promulgated together with this Decree; if the exported goods fully satisfy the conditions specified in Clause 2 of this Article, the special preferential export duty rate under the UKVFTA Agreement shall be applied and any overpaid duty 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 UKVFTA Agreement.

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 promulgated together with 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 UKVFTA Agreement

Imported goods eligible for the special preferential import duty rate under the UKVFTA Agreement must fully satisfy the following conditions:

a) Being included in the Special Preferential Import Tariff specified in Appendix II promulgated together with this Decree.

b) Being imported into Vietnam from the United Kingdom of Great Britain and Northern Ireland.

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

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 UKVFTA Agreement 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. 53/2021/ND-CP dated May 21, 2021 of the Government promulgating the Special Preferential Export Tariff and Special Preferential Import Tariff of Vietnam for the implementation of 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 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.