Checking the special preferential import tariff rate of AHKFTA

In order to implement the ASEAN – Hong Kong, China Free Trade Agreement (AHKFTA) in the 2019-2020 period which come into effect, the Government promulgated Decree 07/2020/NĐ-CP on the issuance of the list of special preferential import tariffs of Vietnam.

Accordingly, imported goods from member countries of AHKFTA face conditions which are stipulated in Article 4 of Decree 07/2020/NĐ-CP, customs declarants would declare tax code of B23 in the import declaration in order to enjoy special preferential import tariff rates of AHKFTA.

Customs officials of Cai Lan port Customs Branch – Quang Ninh Customs Department checked imported automobiles. Photo: T.Trang

The General Department of Vietnam Customs instructed that, for imported goods openning customs declarations from June 11, 2019 to the day before the effective date of Decree No. 07/2020/ND-CP, satisfying the following conditions to enjoy the special preferential import tax rate of AHKFTA as specified in Article 4 of Decree No. 07/2020/ND-CP and having paid tax at a higher rate, the customs declarants should make additional declarations to apply AHKFTA tariff rates and they would be handle to return the overpaid tax amount in accordance with Clause 2, Article 5 of Decree 07/2020/ND-CP and Clause 64, Clause 65 Article 1 of Circular 39/2018 / TT-BTC.

Accordingly, the declarants need to submit a document about requesting handling of overpaid import tax as stipulated in form 27/CVĐNHNT/TXNK issued together with Circular 39/2018/TT-BTC, attached with documents certifying origin of goods under the AHKFTA form and transport documents proving that goods are imported into Vietnam from member countries which is specified in Clause 2, Article 4 of Decree No. 07/2020/ND-CP.

In case goods were transported directly from an exporting member country to an importing member country or the goods are transported through one or more different member countries or through a non-member country, the goods must satisfy the conditions as stipulated in Clause 3, Article 4 of Decree No. 07/2020/ND-CP and lodge additional documents proving that goods were directly transported through non-member countries as prescribed in Clause 3, Article 8 of the Circular 38/2018/TT-BTC of the Ministry of Finance regulating the origin of import and export goods.

The General Department of Vietnam Customs requested provincial Customs Departments to carry out the inspection of dossiers and determine the origin of goods; special preferential import tariff rates of AHKFTA according to the provisions of Decree 07/2020/ND-CP and guidance documents. In case imported goods fully satisfy the conditions for enjoying preferences, customs declarants should handle the overpaid tax amounts in accordance with regulations.

The General Department of Vietnam Customs also requested customs units to instruct the branches and enterprises to synchronously implement the regulations.