Implementing the import – export preferential tariff under EVFTA

For exporting goods from Vietnam and imported into territories stipulating in the point a, clause 2, article 4, Decree No.111/2020/NĐ-CP, when implementing customs procedures, the declarant must implement a declaration and apply export tariffs in accordance with Annex 1 – Export tariff under the list of goods subjected to tax attached with Decree 57/2020/NĐ-CP dated May 25, 2020 of the Government.

For import goods that meet the requirements as stipulated in Point 3, Article 5, Decree No.111/2020/NĐ-CP, declarants must declare tax code of B52 on the import declaration in order to enjoy the special preferential tariff of EVFTA stipulating in the annex of the decree.

Regarding handling the tax amount of overpayment for territories of the European Union, in particular, for exported goods of customs declaration registered from August 1, 2020, during the year since the day of registering export declaration, in the case that declarant has submitted enough documents to prove goods comply with point b and point c, clause 2, article 4, Decree 111/2020/NĐ-CP, and already implement additional declaration to apply a lower tariff rate of preferential export tariff rate under the EVFTA, customs authority would handle the tax amount of overpayment in accordance with point c, clause 3, article 4, Decree 111/2020/NĐ-CP and clause 64, clause 65, article 1, Circular 39/2016/TT-BTC dated April 20, 2018.

Huu Nghi customs officials instructed enterprises to implement customs procedures. Photo: H.Nụ

For goods imported from European Union countries specified in Annex 3 issued together with Decree 111/2020/ND-CP, Andorra, Republic of San Marino and Vietnam (goods imported from non-tariff zones to the domestic market) register customs declarations from August 1, 2020 to the day before the effective date of the decree, if conditions for enjoying the special preferential import tax rates specified at Point a and Point c, Clause 3, Article 5 of this decree are met and the higher tax rate has been paid, the customs declarant should make additional declarations to apply the EVFTA special preferential import tax rate and handling the overpaid tax in accordance with the provisions of Clause 3, Article 6 of Decree 111/2020/ND-CP and Clause 64, Clause 65, Article 1 of the Circular 39/2018/ TT-BTC.

Customs declarants should submit a request document for handling overpaid import tax under the form No. 27/CVĐNHNT/TXNK issued with Circular 39/2018/TT-BTC, meeting regulations on origin of goods and have proof of origin of goods under the provisions of the EVFTA.

For the UK, the General Department of Vietnam Customs said handling of overpaid amounts only applies to goods exported from Vietnam to the UK and goods imported into Vietnam from the UK for declarations arising in the period from August 1, 2020 to December 31, 2020.

The General Department of Vietnam Customs requested provincial customs departments check dossiers, check the origin of goods in accordance with the EVFTA and check the preferential export tariff rates and special preferential import tariff rates in accordance with Decree 111/2020/ND-CP and guidance documents, if the import and export goods satisfy the conditions for applying preferential export tariff rates and special preferential import tariff rates under EVFTA, overpaid tax will be handled in accordance with regulations.

The General Department of Vietnam Customs also requested provincial customs departments to direct and guide the branches and widely disseminate to businesses to follow the above guidelines.