Decree No. 117/2022/NĐ-CP on the Export Tax Preference Tariff and the Special Import Tax Preference Tariff of Vietnam for implementing the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom and Northern Ireland during 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 United Kingdom and Northern Ireland

for the period 2022-2027

Pursuant to the Law on Government Organization dated June 19, 2015; and the Law Amending and Supplementing Certain Provisions of the Law on Government Organization and the Law on Local Administration dated November 22, 2019;

Pursuant to the Export Tax, Import Tax Law dated April 6, 2016;

Pursuant to the Customs Law dated June 23, 2014;

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

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 and Northern Ireland;

To implement the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom and Northern Ireland;

At the proposal of the Minister of Finance;

The Government promulgates the Decree on the Export Tariff for Preferential Treatment and the Special Import Tariff for Preferential Treatment of Vietnam to implement the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom and Northern Ireland (hereinafter referred to as the UKVFTA) for the period 2022-2027.

Article 1. Scope of Regulation

This Decree promulgates the Export Tariff for Preferential Treatment and the Special Import Tariff for Preferential Treatment of Vietnam to implement the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom and Northern Ireland (hereinafter referred to as the UKVFTA) for the period 2022-2027 and the conditions for enjoying preferential export tax rates and special preferential import tax rates under the UKVFTA.

Article 2. Applicability

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

2. Customs authorities and customs officers.

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

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

1. The Export Tariff for Preferential Treatment of Vietnam to implement the UKVFTA for the period 2022-2027 attached as Appendix I to this Decree includes the commodity code, description of goods, preferential export tax rate applicable at different stages when exporting to the United Kingdom and Northern Ireland for each commodity code.

2. The Special Import Tariff for Preferential Treatment of Vietnam to implement the UKVFTA for the period 2022-2027 attached as Appendix II to this Decree includes the commodity code, description of goods, special preferential import tax rate applicable at different stages when importing from territories specified in Point b Clause 3 Article 5 of this Decree for each commodity code.

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

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

4. The column "Tax Rate (%)" in Appendices I and II: Tax rates applicable at different stages, including:

a) Column "2022": Tax rate applicable from December 30, 2022 to December 31, 2022.

b) Column "2023": Tax rate applicable from January 1, 2023 to December 31, 2023.

c) Column "2024": Tax rate applicable from January 1, 2024 to December 31, 2024.

d) Column "2025": Tax rate applicable from January 1, 2025 to December 31, 2025.

đ) Column "2026": Tax rate applicable from January 1, 2026 to December 31, 2026.

e) Column "2027": Tax rate applicable 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 attached as Appendix I to this Decree shall be subject to a 0% tax rate when exported to the United Kingdom and Northern Ireland.

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

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 United Kingdom and Northern Ireland.

b) Have transport documents (photocopies) showing the destination as the United Kingdom and Northern Ireland, in accordance with current laws.

c) Have import customs declarations or substitute documents for customs declarations for goods exported from Vietnam imported into the United Kingdom and Northern Ireland (photocopies), in accordance with current laws.

d) Documents referred to in Points b and c of Clause 2 of this Article, if not in Vietnamese or English, must be translated into Vietnamese or English by the declarant and the declarant shall be responsible for the content of the translation.

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

a) At the time of customs clearance procedures, 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 items as prescribed in the Export Tariff Schedule, Import Tariff Schedule, List of Goods and Absolute Tax Rates, Mixed Tax Rates, and Import Taxes outside Quota as stipulated by the Government.

b) Within one year from the date of registering the export declaration, the declarant must submit complete supporting documents proving that the goods comply with the provisions of Points b and c of Clause 2 of this Article (one photocopy) and supplement the declaration to apply the preferential export tax rate under the UKVFTA Agreement. Beyond the aforementioned one-year period, exported goods will not be eligible for preferential export tax rates under the UKVFTA Agreement.

c) Customs authorities shall review the documents, check the preferential export tax rate according to the Preferential Export Tariff Schedule specified in Appendix I attached to this Decree. If the exported goods meet all the conditions stipulated in Clause 2 of this Article, the preferential export tax rate under the UKVFTA 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 “*”: Goods imported are not entitled to special preferential import tariffs under the UKVFTA Agreement.

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

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

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

a) Included in the Special Preferential Import Tariff Schedule specified in Appendix II attached to this Decree.

b) Imported into Vietnam from the United Kingdom and Northern Ireland.

c) Comply with the origin requirements and have certificates of origin in accordance with the UKVFTA 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 tariff rate under the UKVFTA 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. 53/2021/NĐ-CP dated May 21, 2021 of the Government on the issuance of the Export Tax Tariff and the Special Preferential Import Tax Tariff of Vietnam for implementing the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom and Northern Ireland for the period 2021-2022 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 agencies, Chairpersons of provincial people's committees under central cities, and related organizations and individuals are responsible for implementing this Decree.