03 Conditions for special preferential import tariff under the Free Trade Agreement between Vietnam and Israel

03 Conditions for special preferential import tariff under the Free Trade Agreement between Vietnam and Israel (Image from the internet)

On October 15, 2024, the Government of Vietnam promulgated Decree No. 131/2024/ND-CP on the special preferential import tariff of Vietnam to implement the Free Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the State of Israel for the period 2024 - 2027.

03 Conditions for special preferential import tariff under the Free Trade Agreement between Vietnam and Israel

Decree No. 131/2024/ND-CP promulgates the special preferential import tariff of Vietnam to implement the Free Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the State of Israel (hereafter referred to as the VIFTA Agreement) for the period 2024 - 2027 and the conditions for enjoying the special preferential import tax rate according to this Agreement.

Specifically, imported goods that apply the special preferential import tax rate under the VIFTA Agreement must meet the following conditions:

(1) Belong to the special preferential import tariff issued together with Decree No. 131/2024/ND-CP.

(2) Imported into Vietnam from Israel.

(3) Comply with the rules of origin of goods and have a certificate of origin in accordance with the VIFTA Agreement and current regulations.

Note: For goods from Vietnam's non-tariff zones imported into the domestic market that apply the special preferential import tax rate under the VIFTA Agreement, they must satisfy the conditions specified in clauses (1) and (3).

Special preferential import tariff of Vietnam to implement the VIFTA Agreement for the period 2024 - 2027

The special preferential import tariff of Vietnam to implement the VIFTA Agreement for the period 2024 - 2027 is specified in Article 3 of Decree No. 131/2024/ND-CP as follows:

- The special preferential import tariff comprises product codes, product descriptions, and special preferential import tax rates according to the stages imported from the territory of Israel into Vietnam for each product code.

- The “Product Code” and “Product Description” columns in the special preferential import tariff published alongside Decree No. 131/2024/ND-CP is based on the list of Vietnam's exported and imported goods and detailed according to the 8-digit or 10-digit code.

In case the list of Vietnam's exported and imported goods is amended and supplemented, the customs declarant shall declare the description and code of goods according to the amended and supplemented list and apply the tax rate of the amended and supplemented product code specified in the special preferential import tariff issued together with Decree No. 131/2024/ND-CP.

Classification of goods is performed according to Vietnamese law.

- The "VIFTA Tax Rate (%)" column in the special preferential import tariff: The tax rate applies for different periods, including:

+ Column “2024”: Tax rate applies from October 15, 2024, to December 31, 2024;

+ Column “2025”: Tax rate applies from January 1, 2025, to December 31, 2025;

+ Column “2026”: Tax rate applies from January 1, 2026, to December 31, 2026;

+ Column “2027”: Tax rate applies from January 1, 2027, to December 31, 2027.

- The symbol “*”: Imported goods are not eligible for the VIFTA special preferential import tax rate. Management of imports and the import tax rate of these items are implemented according to legal regulations.

- The special preferential import tax rate for certain items in groups 04.07; 17.01; 24.01; 25.01 only applies within the tariff quota; the annual import quota list and volume as regulated by the Ministry of Industry and Trade and the out-of-quota import tax rate applies according to the regulations in the export tariff, preferential import tariff, the list of goods, and the specific, compound, and out-of-quota import tax rates of the Government of Vietnam at the time of import.

More details can be found in Decree No. 131/2024/ND-CP which comes into force in Vietnam from October 15, 2024, until December 31, 2027.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE