Latest articles

UK-Viet Nam Free Trade Agreement (UKVFTA)

UK-Viet Nam Free Trade Agreement (UKVFTA) was officially concluded on December 29, 2020. The Agreement is negotiated on the basis of the principle of inheriting the commitments in the Free Trade Agreement between Viet Nam and the European Union (EVFTA) with necessary adjustments to ensure the compliance with the bilateral trade framework between Viet Nam and the UK. The Agreement officially came into force from May 1, 2021.

Chapter 4 of the UKVFTA on Customs and Trade Facilitation has 16 Articles including objectives; customs cooperation and mutual administrative assistance; customs legislation and procedures; release of goods; simplified customs procedures; transit and transshipment; risk management; advance rulings; fees and charges; customs brokers; customs valuation; preshipment inspections…

In order to implement the commitments in the Agreement, there are two Decisions signed by the Prime Minister assigning tasks to the Ministry of Finance (the General Department of Viet Nam Customs) as follows:

- Decision 721/QD-TTg issued on May 18, 2021 approving the UKVFTA Implementation Plan, in which, the Ministry of Finance (the General Department of Viet Nam Customs) was tasked to develop a Decree on Viet Nam's preferential export tariff and special preferential import tariff implementing the UKVFTA. On May 21, 2021, the Decree 53/2021/ND-CP on Viet Nam's Preferential Export Tariff and Special Preferential Import Tariff to implementing the UKVFTA for the 2021-2022 period was approved by the Government, officially taking effect from the date of signing for promulgation.

- Decision No. 1425/QD-TTg issued on August 24, 2021 designating focal agencies to implement the Free Trade Agreement between Viet Nam and the United Kingdom and Northern Ireland (UKVFTA). In particular, the General Department of Viet Nam Customs (the Ministry of Finance) is (i) the focal point for implementing Chapter 4 of the Agreement and (ii) a member of the Customs Committee and in charge of Q&A section related to customs and trade facilitation.

The UKVFTA Agreement is expected to reduce import taxes on goods imported from the UK into Viet Nam. For Viet Nam, the UKVFTA is expected to continue the driving force in promoting trade and investment relations between the two sides in future.

Bích Nguyễn