Vietnam and the EU both apply a common import tariff on originating goods of the other party when imported into each other's territory. Basically, tariff reductions under EVFTA are divided into the following groups:

1. Group on elimination of import duties immediately: is the group of goods for which the import tax will be eliminated as soon as the EVFTA comes into effect.
2. Group to eliminate import tax according to the schedule: Import tax will be brought back to 0% (from the base tax rate) after a certain period of time (the roadmap). According to EVFTA Agreement, almost 100% of tariff lines and import turnover of both sides will be eliminated import tax after a relatively short journey. For the EU the maximum is 7 years and for Vietnam the maximum is 10 years. Particularly, with some sensitive tariff lines, Vietnam has achieved a roadmap for eliminating import duties after 15 years.
3. Group applying tariff rate quotas (TRQ): For this group of goods, import duties are only eliminated or reduced for a certain volume of goods (quantity of goods in quota). With the import volume exceeding the quota in the committed tariff, the applicable import tax rate will be higher, or will not be entitled to preferential treatment.
4. Group of goods without commitments: This is the group of goods that are committed to eliminating or reducing import duties. The imposition of import duties will be in accordance with each party's domestic regulations.

Commitment to import duties of the EU

As committed, 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 export turnover to the EU.

After 07 years, the EU will eliminate import tax on 99.2% of tariff lines, equivalent to 99.7% of our export turnover.

For the remaining 0.3% of Vietnam's exports, the EU offers us a tariff rate quota (TRQ) with a import tax in the quota of 0%.

Thus, it can be said that 100% of Vietnam's export turnover to the EU will be eliminated from the import tax after a short journey. So far, this is the highest level of commitment a partner gives us in the FTAs ​​has been signed. This benefit is especially meaningful when the EU is continuously one of the two largest export markets of Vietnam at the moment.

Import tax commitments of Vietnam

Vietnam commits to abolish import duties on 48.5% of tariff lines, equivalent to 64.5% of EU exports as soon as the Agreement comes into effect.

Then, after 7 years, 91.8% of tariff lines equivalent to 97.1% of export turnover from the EU was abolished by Vietnam. After 10 years, this elimination is 98.3% of tariff lines and 99.8% of EU exports respectively.

About 1.7% of the remaining EU tariff lines apply the tariff elimination schedule longer than 10 years or apply TRQ under WTO commitments.

Export tax

In principle, Vietnam and the EU undertake not to impose export tax on goods when they are exported from the territory of one party to the other. The reason for the commitment to cut export taxes is that many countries around the world consider the export taxation as a form of indirect subsidy that causes unfair competition between countries' goods.

In EVFTA, Vietnam has reserved the right to impose export taxes on 526 tariff lines, including important products such as crude oil, coal (except coal for coking and coking coal). For tariff lines with relatively high current export tax rates, Vietnam has committed to a ceiling export tax of 20% for a maximum period of 5 years (only manganese ore has a ceiling of 10%). For other products, Vietnam commits to eliminate export tax 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 goods listed in Schedule 2-A-5 to the Agreement (Exclusion List for with refurbished goods), according to which refurbished goods:

(I) Constructed entirely or partially from parts of a product that have been previously used;

(II) Similar in performance and working conditions and longevity to the original new product, and warranted as new.

The two sides pledge to treat the refurbished goods as similar new products. This means that Vietnam allows the import of refurbished EU origin with the same import duties, taxes and fees as new products of the same category. This commitment does not preclude a party from being required to label the refurbished goods in order to avoid confusion for the consumer. Vietnam has a transition period of 3 years from the date of entry into force of the Agreement to implement this obligation.