Special Preferential Tariff on Goods Imported from Cuba Takes Effect from May 20, 2020

The Government of Vietnam recently issued Decree 39/2020/ND-CP on Vietnam's special preferential import tariff to implement the Vietnam-Cuba Trade Agreement in the 2020-2023 period.

To be entitled to the tariff, imported goods must fully meet the following conditions: Stated in the Special Preferential Import Tariff issued together with this decree, imported from Cuba into Vietnam, and transported directly from Cuba to Vietnam as per the Vietnam-Cuba Trade Agreement.

At the same time, they must also meet regulations on origin in the trade agreement and have certificates of origin (C/O), Form VN-CU.

Goods from Vietnam’s non-tariff area imported into the domestic market will be qualified for the Special Preferential Import Tariff in the trade agreement if they are included in the tariff annexed to Decree 39/2020/ND -CP and have certificate of origin, Form VN-CU.

The Vietnam-Cuba Trade Agreement was officially signed on November 9, 2018. With 14 chapters, the pact includes provisions on trade in goods, rules of origin, customs management and trade facilitation, trade remedies, standards and technical regulations, procedures for conformity assessment, food hygiene and safety measures, animal and plant quarantine, economic and trade cooperation and other contents. The agreement, with many new preferential trade commitments, is expected to be steps to improve bilateral economic, trade and investment relations on a par with fine bilateral political relations.

According to the General Department of Vietnam Customs, the agreement will help create a stable and open legal framework, and promote bilateral trade and investment relations. At the same time, the deal will bring tremendous benefits to the business communities of the two sides. Under the agreement, the two sides pledged to abolish or reduce taxes on nearly 100% of goods imported from each other in five years.

To fulfil the agreement commitments and regulations in the Special Preferential Import Tariff to enforce the Vietnam-Cuba Trade Agreement in the 2020-2023 period, issued together with Decree 39/2020/ND-CP, only a few lines of products imported from Cuba have import tax rates greater than 0%, including sugar, wine, cigarette, rubber, steel and cosmetic products.

Decree 39/2020/ND-CP will take effect from May 20, 2020.

Source: Vietnam Business Forum