Vietnam-EU Free Trade Agreement coming into effect
HANOI - Vietnam from September 18 began implementing the terms of a tariffs agreement on imports from and exports to the European Union as spelled out in a new Free Trade Agreement. Duties overpaid from August 1 through to September 18 will be repaid. New tariff levels now apply.
Under the EVFTA Agreement, Vietnam commits to abolishing import duties on 48.5% of tariff lines, equivalent to 64.5% of EU exports, as soon as the Agreement comes into effect.
After seven years, Vietnam will abolish 91.8% of tariff lines equivalent to 97.1% of export turnover from the EU.
After 10 years, these amounts will increase to 98.3% of tariff lines and 99.8% of EU export turnover.
About 1.7% of the remaining EU tariff lines are subject to the tariff phase-out schedule of more than 10 years, or the tariff rate quotas as set forth under Vietnam's WTO commitments.
For export duties, Vietnam reserves the right to impose export duties on 526 tariff lines, including important products such as crude oil and coal (except coking coal).
For tariff lines with relatively high export tariff rates, Vietnam commits to reducing these rates to 20% in five years or less (with 10% applied to manganese ore).
For other products, Vietnam commits to eliminating export duties within no more than 16 years.