Subjects and Conditions for the Application of Preferential Export Tax of Vietnam

Subjects and conditions for applying Vietnam's preferential export tariff (illustrative photo)

Draft Decree clearly specifies the Preferential Export Tariff Schedule, Preferential Special Import Tariff Schedule of Vietnam to implement the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union for the period 2020 – 2022. Specifically:

First, Subjects to tax:

- The Preferential Export Tariff Schedule specified in Appendix I issued together with this Decree includes item codes, descriptions of goods, preferential export tax rates according to stages when exporting to members of the European Union and certain territories.- Goods not included in the Preferential Export Tariff Schedule specified in Appendix I issued with this Decree but included in the Export Tariff according to the List of taxable item groups specified in Decree 125/2017/ND-CP dated November 16, 2017, of the Government of Vietnam amending and supplementing a number of articles of Decree 122/2016/ND-CP dated September 1, 2016, of the Government of Vietnam on Export Tariff, Preferential Import Tariff Schedule, List of goods and absolute tax rates, mixed taxes, import taxes outside the tariff quota and the amending and supplementing documents (if any) will be applied a 0% tax rate when exporting to members of the European Union and certain territories.

Second, Goods exported from Vietnam applying the preferential export tax rates must meet the following conditions:

- Entered into members of the European Union and certain territories as stipulated in the EVFTA Agreement, including:

- Members of the European Union, excluding Ceuta and Melilla;- The United Kingdom of Great Britain and Northern Ireland;- Have transport documents (copy) indicating the destination as members of the European Union and certain territories.- Have the import customs declaration of the export shipment of Vietnamese origin imported into members of the European Union and certain territories (copy and English or Vietnamese translation in case the language used on the declaration is not English).

More details can be found in the Draft Decree of the Preferential Export Tariff Schedule, Preferential Special Import Tariff Schedule of Vietnam for the implementation of the EVFTA Agreement.

Long Binh

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