The Vietnam - EU Free Trade Agreement (EVFTA) is a comprehensive, high-quality agreement that balances the benefits of both Vietnam and the EU, and is consistent with the regulations of the World Trade Organization (WTO).
About import tax
Vietnam commits to eliminate import taxes on 48.5% of tax lines, equivalent to 64.5% of EU exports as soon as the agreement comes into effect. After 7 years, 91.8% of tax lines, equivalent to 97.1% of EU exports, will have import taxes eliminated by Vietnam. After 10 years, this elimination level will correspond to 98.3% of tax lines and 99.8% of EU exports. And for about 1.7% of the remaining EU tax lines, Vietnam will apply a roadmap to eliminate import taxes longer than 10 years or apply TRQ according to WTO commitments. Specifically, for some EU-interested products such as:
- Group of automobiles, auto parts, and motorbikes: import tax will be 0% after 9 years for large-engine cars, 10 years for other types of cars, 7 years for auto parts, 10 years for regular motorbikes, and 7 years for motorbikes over 150cm3 .
- Group of wine, spirits, beer products: import tax will be 0% after 7 years for wine, spirits, after 10 years for beer.
- Pork and chicken products: import tax will be reduced to 0% after 7 years for 3 tax lines on frozen pork and 9 years for other types of pork.
- For chicken, the roadmap to eliminate import tax is 10 years.
Regarding tariff quota commitments, Vietnam will continue to apply tariff quotas according to its WTO commitments on quota quantities, management methods, and other terms and conditions related to the allocation of tariff quotas. Tariffs in quotas for goods imported from the EU will be gradually eliminated within 11 years from the date the EVFTA comes into effect.
About export tax
In principle, Vietnam and the EU commit to not imposing export taxes on goods when exporting from one territory to the other. And in the EVFTA, Vietnam has reserved the right to apply export taxes on 57 tax lines, including important products such as crude oil and coal (except for coking coal and coke). For tax lines with relatively high current export tax rates, Vietnam commits to a ceiling export tax of 20% for a maximum period of 5 years (manganese ore has a ceiling of 10%). For other products, Vietnam commits to eliminating export taxes according to a roadmap of a maximum of 16 years.
(continued)
( According to the Handbook of the Vietnam - EU Free Trade Agreement (EVFTA)
with key industries of Phu Yen province)
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