The EVFTA agreement will apply a generic import tariff to the goods originating by the other party on the import and territory of each other. Almost 100% of the number of tax lines and the import turnover of both parties will be cleared of import duties after the relatively short route.
Vietnamese enterprises will have the opportunity to promote export to many potential markets and import the equipment and materials to the business with low price and high quality.
Businesses should regularly update particular information. Thereby leveraging the advantages of the agreement to bring as well as build the right business strategy in the new context.
Specific commitments of some items:
Group of automotive, automotive items and motorbike parts: import tax of 0% after 9 years with large cubic cars, 10 years with other automobiles, 7 years with auto parts, 10 years with regular motorcycles and 7 years with motorcycles on 150 cubic meters.
Group of items wine, spirits, beer: Import tax about 0% after 7 years
Pork and Chicken Items: Import tax of 0% after 7 years with 3 lines of frozen pork and 9 years for other pork. For chicken, the route of deletion of import tax is 10 years.
In principle, Vietnam and EU are committed to not taxing the export tax on goods when exported from one side territory to the other. The reason for the commitment to cut export tax is that many countries in the world consider export tariffs as a form of indirect subsidizing that cause unfair competition between the goods of the countries.
In EVFTA, Vietnam has reserved the right to apply export tax on 57 tax lines, including important products such as crude oil, coal (except coal to train Coke and Coke).
For tax lines with a relatively high export rate, Vietnam is committed to an export tax ceiling of 20% for a maximum period of 5 years (separate manganese ore with a ceiling of 10%). With other products, Vietnam is committed to removing export tax according to the maximum route of 16 years.