Nghị định 111/2020/ND-CP

DECREE

ON PREFERENTIAL EXPORT TARIFF SCHEDULE AND SPECIAL PREFERENTIAL IMPORT TARIFF SCHEDULE OF VIETNAM UNDER EU-VIETNAM FREE TRADE AGREEMENT IN THE 2020 - 2022 PERIOD

Pursuant to the Law on Organization of Government dated June 19, 2015;

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 Tax Administration dated June 13, 2019;

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

Pursuant to Resolution No. 102/2020/QH14 of the National Assembly dated June 8, 2020, on the ratification of the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union;

In order to implement EU-Vietnam Free Trade Agreement (EVFTA);

At the request of the Minister of Finance;

The Government promulgates a Decree on Preferential Export Tariff Schedule and Special Preferential Import Tariff Schedule of Vietnam under EU-Vietnam Free Trade Agreement in the 2020 - 2022 period.

Article 1. Scope

This Decree promulgates Preferential Export Tariff Schedule and Special Preferential Import Tariff Schedule of Vietnam under EU-Vietnam Free Trade Agreement (EVFTA) in the 2020 - 2022 period and eligibility requirements for preferential export tariff rates and special preferential import tariff rates under this Agreement.

Article 2. Regulated entities

1. Taxpayers under provisions of the Law on Export and Import Duties.

2. Customs authorities and officials.

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

Article 3. Preferential Export Tariff Schedule and Special Preferential Import Tariff Schedule of Vietnam in the 2020 - 2022 period

1. Issue together with this Decree:

a) Appendix I - Preferential Export Tariff Schedule of Vietnam under EVTFA: including code, description, preferential export tariff rates according to stages when exporting to the territories prescribed in point a clause 2 Article 4 of this Decree for every code;

b) Appendix II - Preferential Import Tariff Schedule of Vietnam under EVTFA: including code, description, preferential import tariff rates according to stages when imported from the territories prescribed in point b clause 3 Article 5 of this Decree for every code;

2. The “Code” and "Description” in the Appendixes issued together with this Decree are based on the Vietnam’s nomenclature of exports and imports and classified by 8-digit level or 10-digit level.

If the Vietnam’s nomenclature of exports and imports is amended, the customs declarant shall apply the amended nomenclature to declare the description and code, and tariff rate as prescribed in the Appendixes issued herewith.

Classification of goods shall comply with Vietnamese law.

3. The “Tariff rates (%) in Appendix I and Appendix II: Different tariff rates apply to different periods:

a) “01/8/2020 - 31/12/2020”: tariff rates applying from August 1, 2020 to December 31, 2020 inclusive;

b) “2021”: tariff rates applying from January 1, 2021 to December 31, 2021 inclusive;

c) “2022”: tariff rates applying from January 1, 2022 to December 31, 2022 inclusive.

Article 4. Preferential Export Tariff Schedule of Vietnam

1. Goods that are not included in the Preferential Export Tariff Schedule in Appendix I hereto appended but included in the export tariff schedule enumerated in the list of taxable goods prescribed in Decree No. 57/2020/ND-CP dated May 25, 2020 on amendments and supplements to several Articles of the Government’s Decree No. 122/2016/ND-CP dated September 1, 2016 on export and preferential import tariff schedules, lists of products, absolute, mixed and out-of-quota import tariff rates, and to the Decree No. 125/2017/ND-CP dated November 16, 2017, amending and supplementing several Articles of the Decree No. 122/2016/ND-CP (hereinafter referred to as Decree No. 57/2020/ND-CP) and amending documents (if any) shall be entitled to the tariff rate of 0% when exporting to the countries specified in point a, clause 2 of this Article.

2. Eligibility requirements for application of preferential export tariff rates under EVFTA

Goods exported from Vietnam will be eligible for preferential export tariff rates specified in Appendix hereto and clause 1 of this Article if:

a) They are imported into the territories under the EVFTA, namely:

- Members of European Union prescribed in Appendix III hereto appended;

- United Kingdom and Northern Ireland.

b) There are transport documents (copies) with the destination in the territories specified in point a clause 2 of this Article; and

c) There are import customs declarations proving that the goods exported from Vietnam are imported into the territories specified in point a clause 2 of this Article (photocopies and translations in English or Vietnamese in case the language on the declaration is not in English).

3. Procedures for application of preferential export tariff rates under EVFTA

a) At the time of customs formalities, customs declarants make export declarations, do application of export tariff rates, tax calculation and tax payment under the export tariff schedule according to the list of taxable goods specified in Decree No. 57/2020/ND-CP and amending documents (if any);

b) Within 1 year from the date of registration of export declarations, the customs declarant shall submit all documents proving that the goods satisfy the regulations specified in points b and c clause 2 of this Article (01 copy) and make an additional declaration to enjoy the preferential export tariff rate under EVFTA. After the expiration of the above-mentioned 1-year time limit, exported goods may not enjoy the preferential export tariff rates under EVFTA;

c) Customs authorities shall check applications and preferential export tariff rates under the preferential export tariff rates under the Preferential Export Tariff Schedule in Appendix I hereto appended. If exported goods fully meet the requirements specified in clause 2 of this Article, it will enjoy preferential export tariff rates under EVFTA and handle the amounts of overpaid duties for customs declarants according to law on taxation.

Article 5. Special Preferential Import Tariff Schedule of Vietnam

1. Symbol “*”: Imported goods are not eligible for special preferential import tariff of EVFTA.

2. Regarding imports subject to tariff-rate quotas, including those of 04.07; 17.01; 24.01; 25.01, in-quota special preferential import tariff rates shall be the tariff rates specified in Appendix II hereto appended; the list and volume of annual import tariff-rate quotas are specified by the Ministry of Industry and Trade and the out-of-quota tariff rates are specified in Decree No. 57/2020/ND-CP and amending documents (if any) at the time of importation.

3. Eligible requirements for application of preferential import tariff rates under EVFTA

Imported goods will be eligible for preferential import tariff rates under EVFTA if:

a) They are included in the Special Preferential Import Tariff Schedule specified in Appendix II hereto appended;

b) They are imported to Vietnam from:

- territories of members of European Union prescribed in Appendix III hereto appended;

- United Kingdom and Northern Ireland;

- Andorra; San Marino; and

- the Socialist Republic of Vietnam (goods imported from free trade zone to domestic market); and

c) They meet requirements pertaining origin of goods and have proofs of origin as provided for in EVFTA.

Article 6. Entry in force

1. This Decree comes into force as of the date of its signing.

2. Regulations in this Decree apply solely to goods exported from Vietnam to United Kingdom and Northern Ireland as prescribed in point a clause 2 Article 4 of this Decree and goods imported to Vietnam from United Kingdom and Northern Ireland as prescribed in point b clause 3 Article 5 of this Decree for the period from August 1, 2020 to December 31, 2020.

3. Regarding customs declarations of exported and imported goods registered before August 1, 2020 to the date before the effective date of this Decree, if they meet all eligibility requirements for preferential export tariff rates or special preferential import tariff rates of Vietnam in this Decree and overpaid tariff have been made, the customs authority shall handle the overpaid amounts according to the law on tax administration.

Article 7. Implementation

Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, the Presidents of People’s Committees of provinces and central-affiliated cities and relevant entities shall implement this Decree./.