Guidance on conditions for preferential treatment under EVFTA

Import – export goods at Hai Phong port. Photo: N.Linh

Previously, the General Department of Vietnam Customs received complaints from the above units related to preferential treatment under the free trade agreement between Vietnam and the European Union (EVFTA).

Enterprises reported goods of enterprises were transported from ports in the European Union to bonded warehouses at Singapore's transit ports under the supervision of Singapore Customs; here, shipments are split and merged for exporting to Vietnam; this part of the goods is granted a Certificate of Non-manipulation by Singapore Customs.

However, when registering customs declaration, businesses encounter problems related to the declaration of place of loading to enjoy preferential tariffs under the EVFTA.

The General Department of Vietnam Customs has specifically instructed the declaration of place of loading on the import declaration.

The customs declarant declared the place of loading on the means of transport for transporting to Vietnam at the quota "1.34 - Place of loading" as follows: Box 1: Enter the code of the original port of loading in the country/territories belonging to the European Union in accordance with the provisions of Point b, Clause 3, Article 5 of Decree No. 111/2020/ND-CP of September 18, 2020; Box 2: declare the name of the original port of loading of the European Union; quota "1.68 - Notes": declaring transshipment ports in third countries that are not EVFTA members.

If the goods are transported from two or more exporting countries of the European Union, at quota "1.34 - Place of loading" declaring 1 port code and name of the original port of loading in the country/region in the European Union and at the quota "1.68 - Notes", the list of codes of original place of loading in exporting countries under the EU and transshipment port codes in non-EVFTA third countries.

Regarding applying special preferential tariff rates under the EVFTA, the General Department of Vietnam Customs said for imported goods to apply special preferential import tariff rates under the EVFTA, enterprises should comply with the provisions of Clause 3, Article 5 of Decree 111/2020/ND-CP of the Government and guidance in Circular No. 11/2020/TT-BCT of the Ministry of Industry and Trade to implement.

The instructions of the General Department of Vietnam Customs are also sent to Customs Departments of provinces and cities for implementation.