Decree No. 111/2020/NĐ-CP on the Export Tax Rate for Preferential Treatment and Import Tax Rate for Special Preferential Treatment of Vietnam to implement the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union for the period 2020-2022

DECREE

SCHEDULE OF EXPORT DUTIES WITH ADVANTAGEOUS RATES AND SCHEDULE OF IMPORT DUTIES WITH SPECIAL ADVANTAGEOUS RATES OF VIETNAM TO IMPLEMENT THE FREE TRADE AGREEMENT BETWEEN THE SOCIALIST REPUBLIC OF VIETNAM AND THE EUROPEAN UNION FOR THE PERIOD 2020-2022

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

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

Pursuant to the Customs Law dated June 23, 2014;

Pursuant to the Law on Tax Administration dated June 13, 2019;

Pursuant to the ASEAN Framework Agreement on Facilitation of Intra-Regional Land Transport signed on December 10, 2009;

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

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 Schedule of Export Duties with Advantageous Rates and Schedule of Import Duties with Special Advantageous Rates of Vietnam to implement the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union for the period 2020-2022.

Article 1. Scope of Regulation

This Decree promulgates the Schedule of Export Duties with Advantageous Rates and Schedule of Import Duties with Special Advantageous Rates of Vietnam to implement the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union (hereinafter referred to as the EVFTA) for the period 2020-2022 and the conditions for enjoying the preferential export duty rates and special preferential import duty rates under this Agreement.

Article 2. Applicability

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

2. Customs authorities, customs officers.

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

Article 3. Schedule of Export Duties with Advantageous Rates and Schedule of Import Duties with Special Advantageous Rates of Vietnam for the period 2020-2022

1. Attached hereto:

a) Appendix I - Schedule of Export Duties with Advantageous Rates of Vietnam to implement the EVFTA: including commodity codes, descriptions of goods, preferential export duty rates applicable at different stages when exporting to territories specified in point a, Clause 2, Article 4 of this Decree for each commodity code;

b) Appendix II - Schedule of Import Duties with Special Advantageous Rates of Vietnam to implement the EVFTA: including commodity codes, descriptions of goods, special preferential import duty rates applicable at different stages when importing from territories specified in point b, Clause 3, Article 5 of this Decree for each commodity code.

2. The columns "Commodity Code" and "Description of Goods" in the Appendices issued together with this Decree are based on the List of Exported and Imported Goods of Vietnam and detailed according to the 8-digit or 10-digit coding system.

In case the List of Exported and Imported Goods of Vietnam is amended or supplemented, the declarant shall declare the description and commodity code according to the amended or supplemented List of Exported and Imported Goods and apply the preferential rate of the amended or supplemented commodity code as prescribed in the Appendices issued together with this Decree.

Classification of goods shall be carried out in accordance with the provisions of Vietnamese law.

3. The column "Duty Rate (%)" in Appendix I and Appendix II: Duty rates applicable at different stages, including:

a) Column "01/08/2020 - 31/12/2020": Duty rate applicable from August 1, 2020 to December 31, 2020;

b) Column "2021": Duty rate applicable from January 1, 2021 to December 31, 2021;

c) Column "2022": Duty rate applicable from January 1, 2022 to December 31, 2022.

Article 4. Schedule of Export Duties with Advantageous Rates of Vietnam

1. Commodities not included in the Schedule of Export Duties with Advantageous Rates prescribed in Appendix I issued together with this Decree but included in the Schedule of Export Duties according to the List of Taxable Commodity Groups prescribed in Decree No. 57/2020/NĐ-CP dated May 25, 2020 of the Government amending and supplementing certain provisions of Decree No. 122/2016/NĐ-CP dated September 1, 2016 of the Government on the Schedule of Export Duties, Schedule of Import Duties with Advantageous Rates, List of Goods and Absolute Tariff Rates, Mixed Tariff Rates, Import Duties Outside Quota and Decree No. 125/2017/NĐ-CP dated November 16, 2017 amending and supplementing certain provisions of Decree No. 122/2016/NĐ-CP (hereinafter referred to as Decree No. 57/2020/NĐ-CP of the Government) and other amending and supplementing documents (if any) shall be subject to a 0% duty rate when exported to the territories specified in point a, Clause 2, Article 4 of this Decree.

2. Conditions for applying preferential export duty rates under the EVFTA

Goods exported from Vietnam and subject to preferential export tax rates specified in Appendix I attached to this Decree and Clause 1 of this Article must meet the following conditions:

a) Imported into the territories as prescribed in the EVFTA, including:

- Territories of the European Union member states specified in Appendix III issued together with this Decree; and

- The United Kingdom and Northern Ireland.

b) Having transport documents (copies) showing the destination as the territories specified in point a, Clause 2, Article 4 of this Decree;

c) Having the import declaration form of the exported goods with Vietnamese origin imported into the territories specified in point a, Clause 2, Article 4 of this Decree (copies and English or Vietnamese translations if the language used on the declaration form is not English).

3. Procedures for applying preferential export duty rates under the EVFTA

a) At the time of customs clearance procedures, the declarant shall declare the export declaration, apply the export duty rate, calculate and pay the tax according to the Schedule of Export Duties according to the List of Taxable Commodities at Decree No. 57/2020/NĐ-CP of the Government and other amending and supplementing documents (if any);

b) Within one year from the date of registering the export declaration, the declarant shall submit complete documents proving that the goods meet the requirements stipulated in points b and c, Clause 2, Article 4 of this Decree (one copy) and declare supplementary information to apply the preferential export duty rate under the EVFTA. Beyond the above one-year period, exported goods will not be eligible for preferential export duty rates under the EVFTA;

c) The customs authority shall check the documents, verify the preferential export duty rate according to the Schedule of Export Duties with Advantageous Rates prescribed in Appendix I issued together with this Decree, and if the exported goods meet all the conditions stipulated in Clause 2, Article 4 of this Decree, it shall apply the preferential export duty rate under the EVFTA and process the refund of excess tax paid to the declarant in accordance with the laws on tax administration.

Article 5. Special Preferential Import Tariff Schedule of Vietnam

1. The symbol “*” indicates goods imported that do not enjoy the special preferential import tariff under the EVFTA Agreement.

2. For goods subject to quota tariffs, including certain items within the commodity groups 04.07; 17.01; 24.01; 25.01, the special preferential import tariff within the quota is the rate specified in Appendix II issued together with this Decree; the list and annual quota volume for imported goods shall be determined according to the regulations of the Ministry of Industry and Trade, and the import tariff rate outside the quota shall be applied in accordance with Decree No. 57/2020/NĐ-CP of the Government and any subsequent amendments (if applicable) at the time of importation.

3. Conditions for applying the special preferential import tariff rate under the EVFTA Agreement

Imported goods must meet the following conditions to be eligible for the special preferential import tariff rate under the EVFTA Agreement:

a) They must fall within the Special Preferential Import Tariff Schedule as stipulated in Appendix II issued together with this Decree;

b) They must be imported into Vietnam from:

- The territory of European Union member states as defined in Appendix III issued together with this Decree;

- The United Kingdom and Northern Ireland;

- Andorra; San Marino; and

- The Socialist Republic of Vietnam (Goods imported from duty-free zones into the domestic market).

c) They must comply with the origin requirements and have certificates of origin in accordance with the EVFTA Agreement.

Article 6. Effectiveness

1. This Decree takes effect from the date of issuance.

2. The provisions of this Decree only apply to goods exported from Vietnam to the United Kingdom and Northern Ireland as provided in point a, Clause 2, Article 4 of this Decree, and goods imported into Vietnam from the United Kingdom and Northern Ireland as provided in point b, Clause 3, Article 5 of this Decree during the period from August 1, 2020 to December 31, 2020.

3. For customs declarations of exported and imported goods registered from August 1, 2020 to before the effective date of this Decree, if they meet the conditions to enjoy the preferential export tax rate and the special preferential import tax rate of Vietnam as stipulated in this Decree and have already paid taxes at a higher rate, the customs authority shall process the excess tax payment in accordance with the laws on tax administration.

Article 7. Responsibility for Implementation

The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial People's Committees directly under the central government, and related organizations and individuals are responsible for implementing this Decree./.

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