On September 18, 2020, the Government issued the Decree No. 111/2020/ND-CP on Preferential Export Tariffs and Special Preferential Import Tariffs of Vietnam to implement the Free Trade Agreement between the Socialist Republic of Vietnam and European Union in the period 2020 – 2022.

This Decree applies to taxpayers according to the provisions of the Import Tax and Export Tax Law; Customs authorities, customs officers; organizations and individuals have rights and obligations related to imported and exported goods.

Goods exported from Vietnam to which the preferential export tax rates are applied must satisfy the following conditions:

1. Imported into the territories under the EVFTA Agreement, including:

• Members of European Union prescribed in Appendix III hereto appended;
• United Kingdom and Northern Ireland.

        2. There is a transport document showing destination as member territories of the European Union or the United Kingdom or Northern Ireland;

       3. Having the import customs declaration of the export consignment of Vietnamese origin imported into the member territories of the European Union or the United Kingdom or Northern Ireland.

The provisions applying the preferential tax rates only apply to goods exported from Vietnam to the United Kingdom and Northern Ireland during the period from August 1, 2020 to the end of December 31, 2020.

For customs declarations of exported goods registered from August 1, 2020 to before the effective date of this Decree, if all regulations are met to enjoy tax rates If Vietnam’s exports of special preferences in this Decree have been paid at a higher tax rate, the overpaid tax amount shall be handled by the customs office in accordance with the law on tax administration.

This Decree comes into force from September 18, 2020.