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

Imported goods are subject to preferential import tax rates. In particular, under the EVFTA Agreement, the following conditions must be met:

1. Under the Special Preferential Import Tariff specified in Appendix II issued together with Decree 111/2020/ND-CP;
2. Imported into Vietnam from:

• Territories of members of European Union;
• United Kingdom and Northern Ireland;
• Andorra; San Marino; and
• The Socialist Republic of Vietnam (goods imported from free trade zone to domestic market).

      3. Meet the requirements of origin of goods and have proof of origin in accordance with the provisions of the EVFTA Agreement.

Provisions on the application of preferential tax rates only apply to goods imported into Vietnam from the United Kingdom and Northern Ireland during the period from August 1, 2020 to the end of December 31, 2020.

For customs declarations of imported 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 imported 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.