VIETNAM’S PREFERENTIAL EXPORT TARIFF SCHEDULE AND SPECIAL PREFERENTIAL IMPORT TARIFF SCHEDULE FOR IMPLEMENTATION OF THE FREE TRADE AGREEMENT BETWEEN THE SOCIALIST REPUBLIC OF VIETNAM AND EUROPEAN UNION IN 2022 - 2027 PERIOD

This Decree promulgates Vietnam’s preferential export tariff schedule and special preferential import tariff schedule for implementation of the Free Trade Agreement between the Socialist Republic of Vietnam and European Union (hereinafter referred to as “EVFTA Agreement”) in the 2022 - 2027 period and conditions to be satisfied for claiming such preferential export tariff rates and special preferential import tariff rates under this Agreement.

1. Taxpayers as defined in the Law on Export and Import Duties.

2. Customs authorities and customs officials.

3. Organizations and individuals that have rights and obligations related to imports and exports.

1. Vietnam’s preferential export tariff schedule for implementation of EVFTA Agreement in the 2022 - 2027 period is provided in Annex I enclosed herewith, including codes, description of goods exported to the territories specified in Point a Clause 2 Article 4 of this Decree, and their preferential export tariff rates applied in different periods.

2. Vietnam’s special preferential import tariff schedule for implementation of EVFTA Agreement in the 2022 - 2027 period is provided in Annex II enclosed herewith, including codes, description of goods imported from the territories specified in Point b Clause 3 Article 5 of this Decree, and their special preferential import tariff rates applied in different periods.

3. The columns “Code" and “Description” in the Annexes enclosed herewith are compiled according to Vietnam’s nomenclature of exports and imports and are classified by 8-digit or 10-digit codes.

If Vietnam’s nomenclature of exports and imports is amended, customs declarants shall declare description and codes of goods according to the amended nomenclature, and apply corresponding tariff rates on such goods with amended codes as prescribed in the Annexes enclosed herewith.

4. The column “Tariff rate (%)” in Annex I and Annex II includes the tariff rates applied in different periods, including:

a) Column “2022”: the tariff rates in this column apply from December 30, 2022 to December 31, 2022 inclusively;

b) Column “2023”: the tariff rates in this column apply from January 01, 2023 to December 31, 2023 inclusively;

b) Column “2024”: the tariff rates in this column apply from January 01, 2024 to December 31, 2024 inclusively;

d) Column “2025”: the tariff rates in this column apply from January 01, 2025 to December 31, 2025 inclusively;

dd) Column “2026”: the tariff rates in this column apply from January 01, 2026 to December 31, 2026 inclusively;

e) Column “2027”: the tariff rates in this column apply from January 01, 2027 to December 31, 2027 inclusively.

1. Goods other than those specified in the preferential export tariff schedule in Annex I enclosed herewith shall be eligible for 0% rate when they are exported to the territories specified in Point a Clause 2 of this Article.

2. Conditions to be satisfied for claiming preferential export tariff rates under EVFTA Agreement:

Goods exported from Vietnam shall be entitled to preferential export tariff rates as prescribed in Annex I enclosed herewith and in Clause 1 of this Article if:

a) They are imported to the territory of an EU member state as prescribed in Annex III enclosed herewith.

b) They are supported by transport documents (photocopies) showing that the destination is in one of the territories specified in Point a Clause 2 of this Article in accordance with regulations of law in force.

c) They are supported by the customs declaration for imports or other substituting documents for the shipment exported from Vietnam to the territory of one of the countries specified in Point a Clause 2 of this Article (photocopies) in accordance with regulations of law in force.

d) The customs declarant shall provide Vietnamese or English translations of the documents specified in Points b and c Clause 2 of this Article if they are made in a language other than Vietnamese or English language, and assume responsibility for such provided translations.

3. Procedures for claiming preferential export tariff rates under EVFTA Agreement

a) When following customs procedures, the customs declarant shall make the export declaration, apply the export tariff rate, calculate and pay export duties according to the export tariff schedule enumerated in the List of taxable goods enclosed with the Decree promulgating preferential export tariff schedule and special preferential import tariff schedule, list of commodities and their specific tariffs, compound tariffs, and out-of-quota import tariff rates, and their amending documents.

b) Within 01 year from the date of registration of export declaration, the customs declarant shall submit adequate documents proving that the goods meet the conditions in Point b and Point c Clause 2 of this Article and make additional amendments of customs declaration to claim the preferential export tariff rates under EVFTA Agreement. Upon the expiration of this 01-year time limit, exports are no longer eligible for preferential export tariff rates under the EVFTA Agreement.

c) The customs authority shall check and examine received documents and the declared preferential export tariff rates according to the preferential export tariff schedule in Annex I enclosed herewith, and if the exports meet the conditions in Clause 2 of this Article, grant the preferential export tariff rates under EVFTA Agreement and consider refunding any overpaid export duties to the customs declarant in accordance with the provisions of the Law on tax administration.

1. Symbol “*”: Imports are not eligible for special preferential import tariff rates under the EVFTA Agreement.

2. With regard to imports subject to tariff-rate quotas, including goods of headings 04.07, 17.01, 24.01, 25.01, the in-quota special preferential import tariff rates are the tariff rates specified in Annex II enclosed herewith. The list of goods and annual import quotas are stipulated by the Ministry of Industry and Trade of Vietnam and the out-of-quota tariff rates shall be applied in accordance with Government’s regulations on preferential export tariff schedule, special preferential import tariff schedule, list of commodities and their specific tariffs, compound tariffs, and out-of-quota import tariff rates in force at the time of importation.

3. Conditions for claiming special preferential import tariff rates under EVFTA Agreement

Imports shall be eligible for the special preferential import tariff rates under EVFTA Agreement if:

a) They are included in the special preferential import tariff schedule in Annex II enclosed herewith.

b) They are imported to Vietnam from:

- The territory of an EU member state as prescribed in Annex III enclosed herewith;

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

- The territory of Ceuta and Melilla.

c) They meet requirements pertaining to origin of goods and are supported by proofs of origin as provided for in the EVFTA Agreement.

In order to claim special preferential import tariff rates under the EVFTA Agreement, goods imported from free trade zones of Vietnam into the domestic market must meet the conditions in Points a, c Clause 3 Article 5 of this Decree.

1. This Decree comes into force from the date on which it is signed.

2. The Government’s Decree No. 111/2020/ND-CP dated September 18, 2020 promulgating Vietnam’s preferential export tariff schedule and special preferential import tariff schedule for implementation of the Free Trade Agreement between the Socialist Republic of Vietnam and European Union in the 2020 - 2022 period ceases to have effect from the effective date of this Decree.

Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of People’s Committees of provinces and centrally-affiliated cities and relevant organizations and individuals are responsible for the implementation of this Decree.