Commitment to Tax
Import Tax
Vietnam and the EU both apply a common import tariff on the goods of the other party when imported into each other's territories. Basically, import tax reductions under the EVFTA are divided into the following groups:
Group eliminating import duties immediately: is a group of goods for which import duties will be eliminated immediately after the EVFTA Agreement takes effect.
Group eliminates import duties according to the schedule: Import tax will be reduced to 0% (from the base tax rate) after a certain period of time (roadmap).
According to the EVFTA Agreement, almost 100% of tariff lines and import turnover of the two sides will be eliminated import tax after a relatively short roadmap. With EU maximum of 7 years and with Vietnam maximum and 10 years. Particularly there are some sensitive tariff lines, Vietnam has achieved a roadmap to eliminate import duties after 15 years.
Group of applying tariff quotas (TRQ): For this group of goods, import tax is only eliminated or reduced for a certain volume of goods (quantity of goods in the quota). If the import volume exceeds the quota amount in the schedule of commitments, the applicable import tax rate will be higher, or not entitled to preferential treatment.
Group of goods not committed: This is the group of goods not committed to abolish or cut import tax. The imposition of import duties will be in accordance with each country's domestic regulations.
Commitment of EU import tax
Under the commitment, as soon as the Agreement comes into effect, the EU will eliminate import duties on 85.6% of tariff lines, equivalent to 70.3% of Vietnam's exports to the EU.
Then after 07 years, the EU will eliminate import duties on 99.2% of tariff lines, equivalent to 99.7% of our exports.
For the remaining 0.3% of Vietnam's exports, the EU gives us a tariff quota (TRQ) with an import duty in the quota of 0%.
Thus, it can be said that 100% of Vietnam's exports to the EU will be eliminated import tax after a short journey. So far, this is the highest level of commitment a partner gives us in the signed FTAs. This benefit is especially meaningful when the EU is continuously one of the two largest export markets of ours at the present time.
Vietnam's import tax commitment
Vietnam committed to eliminate import duties on 48.5% of tariff lines, equivalent to 64.5% of EU exports right after the Agreement came into effect.
Then, after 7 years, 91.8% of tariff lines equivalent to 97.1% of EU exports were removed from Vietnam by import taxes. After 10 years, the abolition rate is 98.3% of the total tariff lines and 99.8% of the EU's exports respectively.
About 1.7% of the remaining EU tariff lines apply the roadmap of eliminating import tax longer than 10 years or applying TRQ in accordance with WTO commitments.
Specific commitments to a number of EU goods of interest:
For car, motorbike and spare parts: import tax is 0% after 9 years for high-cylinder cars, 10 years for other cars, 7 years for auto parts, 10 years for regular motorcycles and 7 years for motorcycles over 150 cm3.
Wine, spirits and beer products: Import tax of 0% after 7 years for wine and spirits, after 10 years for beer.
Group of pork and chicken: the import tax is reduced to 0% after 7 years with 3 tariff lines for frozen pork and 9 years for other types of pork. For chicken, the roadmap to eliminate import duties is 10 years.
Export tax
In principle, Vietnam and the EU committed not to impose export taxes on goods when exporting from one territory to the other. The reason for the commitment to reduce export taxes is that many countries around the world see export tax as an indirect subsidy that causes unfair competition among countries' goods.
In EVFTA, Vietnam reserved the right to impose export taxes on 57 tariff lines, including important products such as crude oil and coal (except coal for coking and coking coal).
For tariff lines with relatively high current export tax rates, Vietnam commits to an export ceiling of 20% for a maximum period of 5 years (only manganese ore has a ceiling of 10%). For other products, Vietnam commits to abolish export taxes according to a maximum schedule of 16 years.
Refurbished goods
Under the EVFTA Agreement, refurbished goods are goods classified in Chapters 84, 85, 87, 90 and 9402, except for goods listed in Annex 2-A-5 of the Agreement (Exclusion List). with refurbished goods) whereby refurbished goods:
Constructed entirely or in part from parts of products previously used;
Has the same performance and working conditions as the original product, and is warranted as a new product.
The two sides pledged to treat the refurbished goods as with similar new goods. This means that Vietnam allows the import of refurbished goods of EU origin with import duties, taxes and other fees similar to those of new goods of the same type.
This commitment does not preclude a party from having the right to label refurbished goods to avoid confusing consumers. Vietnam has a transition period of 3 years from the date of entry into force of the Agreement to fulfill this obligation.
Commitment on Tariff Quota
In addition to import duties, Vietnam and the EU also apply tariff quotas on a small number of goods originating from the other Party. The content of this commitment is specified in Part B – Tariff Quota, Annex 2-A of the EVFTA Agreement, including the main principles, specific commitments of each commodity together with regulations and requirements. respectively to be granted tariff quotas.
Commitment of EU tariff quotas
Mechanism of management and allocation of tariff quotas
The EU will manage tariff quotas in accordance with EU law, with the aim of facilitating trade between the Parties in the direction of making the most of the tariff quotas.
List of goods items to enjoy the franchise and specific commitments:
|
Items |
HS code (EU tariffs) |
The amount of tariff quotas |
Note |
|
Eggs and egg yolks |
0408.11.80; 0408.19.81
0408.19.89; 0408.91.80
0408.99.80 |
500 tons |
|
|
Garlic |
0703.20.00 |
400 tons |
|
|
sweet corn |
0710.40.00A; 2001.90.30A;
2005.80.00A |
5,000 tons |
The amount of TRQ does not include the total amount of originating goods classified by tariff lines 0710.40.00B, 2001.90.30B and 2005.80.00B |
|
Rice |
Rice has been rubbed:
1006.10.21; 1006.10.23
1006.10.25; 1006.10.27
1006.10.92; 1006.10.94
1006.10.96; 1006.10.98
1006.20.11; 1006.20.13
1006.20.15; 1006.20.17
1006.20.92; 1006.20.94
1006.20.96; 1006.20.98 |
20,000 tons |
|
|
Ground rice:
1006.30.21; 1006.30.23
1006.30.25; 1006.30.27
1006.30.42; 1006.30.44
1006.30.46; 1006.30.48
1006.30.61; 1006.30.63
1006.30.65; 1006.30.98
1006.30.67; 1006.30.92
1006.30.94; 1006.30.96 |
30,000 tons |
|
|
|
Ground rice:
1006.10.21; 1006.10.23
1006.10.25; 1006.10.27
1006.10.92; 1006.10.94
1006.10.96; 1006.10.98
1006.20.11; 1006.20.13
1006.20.15; 1006.20.17
1006.20.92; 1006.20.94
1006.20.96; 1006.20.98
1006.30.21; 1006.30.23
1006.30.25; 1006.30.27
1006.30.42; 1006.30.44
1006.30.46; 1006.30.48
1006.30.61; 1006.30.63
1006.30.65; 1006.30.67
1006.30.92; 1006.30.94
1006.30.96; 1006.30.98 |
30,000 tons |
Rice must belong to one of the following types of aromatic rice:
(a) Jasmine 85,
(b) ST 5, ST 20,
(c) 9 Flower Girl,
(d) VD 20,
(e) RVT,
(f) OM 4900,
(g) OM 5451, and
(h) Cho Dao Resources.
Shipments of rice that meet this quota requirement should be accompanied by a certificate of the correct type issued by the Vietnamese authorities stating that the rice belongs to one of the above types of rice. |
|
|
Tapioca |
1108.14.00 |
30,000 tons |
|
|
Tuna |
1604.14.11; 1604.14.18
1604.14.90; 1604.19.39
1604.20.70 |
11,500 tons |
|
|
Surimi |
1604.20.05 |
500 tons |
|
|
Sugar and other products contain high sugar content |
Raw sugar:
1701.13.10; 1701.13.90
1701.14.10; 1701.91.00
1701.99.10; 1701.99.90
1702.30.50; 1702.90.50
1702.90.71; 1702.90.75
1702.90.79; 1702.90.95
1806.10.30; 1806.10.90 |
20,000 tons |
|
|
Special way |
1701.14.90 |
400 tons |
|
|
Mushroom |
0711.51.00; 2001.90.50
2003.10.20; 2003.10.30 |
350 tons |
|
|
Ethanol |
2207.10.00; 2207.20.00 |
1,000 tons |
|
|
Mannitol, Sorbitol, Dextrin and other modified starches |
2905.43.00; 2905.44.11
2905.44.19; 2905.44.91
3505.10.10; 3505.10.90
3824.60.19 |
2,000 tons |
|
Goods of origin origin imported into the EU within the above quota will be exempt from import tax. For the above quota amount, the import tax will be applied according to the levels in the EU commitment schedule specified in Annex Annex 2A of EVFTA.
Commitment of Vietnam's tariff quota
Vietnam still maintains the application of tariff quotas under its WTO commitments to the amount of quotas, the mode of administration and other terms and conditions related to the allocation of tariff quotas. The tariff rate quota for goods imported from the EU will be gradually eliminated in 11 years from the date of entry into force of the EVFTA Agreement.
Commitment to Rules of Origin
The EVFTA Agreement provides for three methods to determine the origin of a good, including: (i) pure origin goods; (ii) goods are significantly processed or processed; and (iii) product specific rules (PSR).
In addition, the cumulative rule allows Vietnam and the EU countries to consider the material of one or more other member countries as their own when using that material to produce a good. Origin EVFTA.
In addition, the two sides agreed on some new contents as follows:
Mechanism of self-certification of origin:
Besides the traditional Certificate of Origin (C / O) mechanism, the two sides agreed to allow exporters to self-certify origin. This is the mechanism by which the exporter declares the origin of the product in the set of documents submitted to the customs office of the importing country instead of having to obtain a certificate of origin from the authorities.
For goods exported from the EU:
For shipments worth less than EUR 6,000, any exporter can self-certify the origin.
For shipments valued at over 6,000 EUR, only Approved exporters are allowed to certify themselves as origin.
Currently, the EU is building a system of registered exporters – a system that allows exporters to register with the competent authority only to certify themselves. When this system is completed and applied, the EU will notify Vietnam before implementation.
For goods exported from Vietnam:
Currently, Vietnam has not officially implemented the mechanism of self-certification of origin. In the coming time, when this mechanism can be officially applied, Vietnam will issue relevant domestic regulations and notify the EU before implementation.
It is expected that the exporter will self-certify origin on an invoice, delivery note or any trade document describing the product concerned with sufficient information to identify the product. The document of self-certification of origin must not show origin criteria and goods HS codes but must be signed by the exporter.
In case the exporter is eligible to register with the competent authority of the exporting country for full responsibility for the document of self-certification issued by them, the signature is not required to be signed. .
In addition, a self-certification of origin may be made after the exportation of the goods provided that such certification of origin has to be produced at the importing Party no later than 2 years or the time period specified. specified in the importing Party's law, counting from the time the goods are imported into the Party's territory.
Information shown on the certificate of origin:
Vietnam and the EU agreed to use the C / O EUR 1 form as a common form in the EVFTA Agreement. The EUR 1 form requires simpler information than the C / O forms in the ASEAN Trade in Goods Agreements (ATIGA) and the FTA agreements between ASEAN and external partners that Vietnam has signed.
Some information that exporters are allowed to choose whether to declare or not to declare such as the importer, the shipment's itinerary, the commercial invoice number. Regarding the contents of the declaration, the two parties agreed not to request to show the origin criteria, HS codes of goods on C / O.
Transit and subdivision of consignments in third countries:
The two sides agreed to allow products to be transited and broken down in a third country outside the Agreement. Specifically:
– The product must not be changed or involved in any processing that changes the product, except for product storage processes, or labeling, marks, seals or other documents. to ensure compliance with the importing Party's specific regulations.
These stages need to be carried out under the supervision of the transit country or split the goods before importing procedures into the inland.
– The product or shipment may be stored as long as the product or shipment remains within the customs supervision of the transit country.
In case of doubt, the customs authorities of the importing country may require the importer to produce documents proving that the goods remain in the control of the customs of the third country and are not subject to change of origin, detail:
– Transport documents as bill of lading;
– Documents about marking and numbering of goods;
– Actual or specific documents on labeling or package number;
– Documents proving goods such as commercial invoices and sale contracts;
– Third country customs certification that the goods have not been changed or other documents proving that the goods are still in the control of the customs authorities in transit or subdivision of the consignment.
Terms of Administrative Error Management:
The Administrative Error Clause stipulates a coordination mechanism between the two authorities of Vietnam and the EU as a measure against trade fraud.
Accordingly, the Parties shall support each other, through their competent authorities, in checking the authenticity of the certification of origin or self-certification of origin and the accuracy of the information provided. declare on those documents.
Item specific rules (PSR):
Product specific rules are rules of origin for each item (at HS 8-digit level). The PSR list was developed by Vietnam and the EU based on the following main criteria:
(i) Limit the proportion of non-originating materials in the process of production and processing;
(ii) Group conversion criteria (4-digit level) and sub-group (6-digit level) HS codes of the final product compared to the HS codes of materials involved in the manufacturing process;
(iii) Specific processing stages;
(iv) Processing and processing are carried out on raw materials.
In addition, EVFTA also has other commitments including commitments on services and investment, commitments on government procurement, commitments on intellectual property, commitments on trade and sustainable development.
According to Economy & Consumer
