Decree No. 116/2022/NĐ-CP on the Export Tax Schedule for Preferential Treatment and the Special Import Tax Schedule for Preferential Treatment of Vietnam to implement the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union for the period from 2022 to 2027.

DECREE

Export Tariff for Preferential Treatment, Special Import Tariff for Preferential Treatment

of Vietnam to implement the Free Trade Agreement between

the Socialist Republic of Vietnam and the European Union

for the period 2022 - 2027

On the basis of Law on Government Organization dated June 19, 2015;  November 22, 2019; November 22, 2019;

On the basis of Law on Export Duties and Import Duties April 6, 2016;

On the basis of Customs Law dated June 23, 2014;

On the basis of Law on International Treaties dated April 9, 2016;

To implement Resolution No. 102/2020/QH14 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 issues this Decree on the Export Tariff with Preferential Rates and the Special Import Tariff with Preferential Rates of Vietnam to implement the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union for the period 2022 - 2027.

Article 1. Scope of Regulation

This Decree promulgates the Export Tariff with Preferential Rates and the Special Import Tariff with Preferential 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 2022 - 2027 and the conditions for enjoying preferential export tax rates and special preferential import tax rates under this Agreement.

Article 2. Applicability

1. Taxpayers as prescribed by the Law on Export Tax, Import Tax.

2. Customs authorities, customs officers.

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

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

1. The Export Tariff with Preferential Rates of Vietnam to implement the EVFTA for the period 2022 - 2027 attached as Appendix I to this Decree includes the commodity code, description of goods, preferential export tax rate at various stages when exporting to territories specified in point a, Clause 2, Article 4 of this Decree for each commodity code.

2. The Special Import Tariff with Preferential Rates of Vietnam to implement the EVFTA for the period 2022 - 2027 attached as Appendix II to this Decree includes the commodity code, description of goods, special preferential import tax rate at various stages when importing from territories specified in 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 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 level.

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 tax rate of the amended or supplemented commodity code as stipulated in the Appendices issued together with this Decree.

4. The "Tax Rate (%)" column in Appendix I and Appendix II: Tax rates applicable for different periods include:

a) The "2022" column: Tax rate applied from December 30, 2022 to December 31, 2022;

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

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

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

đ) The "2026" column: Tax rate applied from January 1, 2026 to December 31, 2026;

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

Article 4. Conditions and procedures for applying preferential export tax rates of Vietnam

1. Goods not listed in the Preferential Export Tariff Schedule stipulated in Appendix I issued together with this Decree shall be subject to a 0% tax rate when exported to territories specified in point a, Clause 2, Article 2 of this Law.

2. Conditions for applying preferential export tax rates under the EVFTA Agreement

Exported goods from Vietnam must meet the following conditions to apply the preferential export tax rates stipulated in Appendix I issued together with this Decree and in Clause 1 of this Article:

a) Imported into the territory of the European Union member states as specified in Appendix III issued together with this Decree.

b) Have transport documents (photocopies) showing the destination as the territories specified in point a, Clause 2, Article 2 of this Law according to current laws.

c) Have import customs declaration forms or substitute documents for customs declarations of exported goods from Vietnam imported into the territories of countries specified in point a, Clause 2, Article 2 of this Law (photocopies) according to current laws.

d) If the documents mentioned in points b and c, Clause 2, Article 2 of this Law are not in Vietnamese or English, the declarant must translate them into Vietnamese or English and bear responsibility for the content of the translation.

3. Procedures for applying preferential export tax rates under the EVFTA Agreement

a) At the time of customs formalities, the declarant shall declare the export declaration, apply the export tax rate, calculate and pay taxes according to the Export Tariff Schedule based on the List of Taxable Goods in the Export Tariff, Import Tariff Schedule, List of Goods and Absolute Rates, Mixed Rates, Import Duties outside Quota, and other amending and supplementing documents.

b) Within one year from the date of registering the export declaration, the declarant must submit all supporting documents proving that the goods comply with the requirements set out in points b and c, Clause 2, Article 2 of this Law and complete supplementary declarations to apply the preferential export tax rate under the EVFTA Agreement. Beyond this one-year period, exported goods will not be eligible for the preferential export tax rate under the EVFTA Agreement.

c) The customs authority shall check the files and verify the preferential export tax rate according to the Preferential Export Tariff Schedule stipulated in Appendix I issued together with this Decree. If the exported goods meet all the conditions set out in Clause 2 of this Article, the preferential export tax rate under the EVFTA Agreement shall be applied, and excess tax payments shall be refunded to the declarant in accordance with the law on tax administration.

Article 5. Conditions for applying special preferential import tax rates of Vietnam

1. Symbol “*”: Imported goods are not entitled to special preferential import duties under the EVFTA Agreement.

2. For goods subject to tariff quotas including certain items in groups 04.07; 17.01; 24.01; 25.01, the special preferential import duty within the quota is the tax rate specified in Appendix II issued together with this Decree; the annual quota volume and list of goods for import under the quota are determined by the Ministry of Industry and Trade, and the import duty outside the quota is applied according to the Export Tariff, Import Tariff Schedule, List of Goods and Absolute Rates, Mixed Rates, Import Duties outside Quota of the Government at the time of importation.

3. Conditions for applying special preferential import tax rates under the EVFTA Agreement

Goods imported and subject to special preferential import tax rates under the EVFTA Agreement must meet the following conditions:

a) Listed in the Special Preferential Import Tariff Schedule stipulated in Appendix II issued together with this Decree.

b) Imported into Vietnam from:

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

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

- The Regions of Ceuta and Melilla.

c) Comply with the rules of origin and have certificates of origin in accordance with the EVFTA Agreement.

Article 6. Goods from Vietnam's duty-free zones

Goods imported into the domestic market from Vietnam's duty-free zones and subject to the special preferential import tariff rate under the EVFTA must satisfy all conditions stipulated in point a and point c, Clause 3, Article 5 of this Decree.

Article 7. Effective Date

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

2. Decree No. 111/2020/NĐ-CP dated September 18, 2020 of the Government on the issuance of the Export Tariff for Preferential Treatment and the Special Preferential Import Tariff of Vietnam to implement the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union for the period 2020-2022 shall cease to be effective from the date this Decree comes into force.

Article 8. Responsibility for Implementation

The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of People's Committees of provinces and centrally governed cities, and relevant organizations and individuals are responsible for implementing this Decree.