On January 5, 2020, the Government issued Decree 07/2020 / ND-CP on Vietnam’s special preferential import tax schedule to implement ASEAN – Hong Kong, China Free Trade Agreement for the period 2019 – 2022. This Decree takes effect from February 20, 2020.
Accordingly, imported goods eligible for special preferential import tax rates (AHKFTA) must meet the following four conditions:
1. Being on the Special Preferential Import Tariff promulgated together with this Decree;
2. Being imported from countries which are members of the ASEAN Free Trade Agreement – Hong Kong, China;
3. Being transported directly from exporting countries according to the provisions of the AHKFTA Agreement and the regulations of the Ministry of Industry and Trade. Specifically:
(i) Goods transported directly from an exporting member country to an importing member country; or
(ii) Goods are transported through one or more other member countries or through a non-member country and meet the following conditions:
– Transited goods are needed for geographical reasons or due to transport requirements;
– Goods not engaged in commercial transactions or consumed there;
– The goods have not undergone any processing or other processing other than unloading and reloading or other processes necessary to preserve the goods in good condition.
4. Meet the rules of origin and have a certificate of origin (C/O) form of AHK under the provisions of the AHKFTA Agreement and the regulations of the Ministry of Industry and Trade.
Particularly for customs declarations of imported goods registered from June 11, 2019 to before February 20, 2020, if all conditions for enjoying the special preferential import tax are fully met In this Decree and if the tax has been paid at a higher rate, the customs office will handle the overpaid amount in accordance with the law on tax administration.