Short answer: German machinery entering Vietnam can benefit from the EVFTA special preferential tariff under Decree 116/2022/ND-CP — most machinery lines are on track to zero duty — but only with proper origin documentation. Separately, machinery imported as fixed assets of an investment-incentivized project may be fully exempt from import duty regardless of EVFTA. The two tracks are often confused; using the wrong one costs money.
The EVFTA tariff track
Decree 116/2022/ND-CP (30 December 2022) carries Vietnam’s special preferential import tariff for EVFTA implementation, 2022–2027. Vietnam committed to eliminate duty immediately on 48.5% of tariff lines (about 64.5% of EU export value), rising to 91.8% of lines after 7 years and 98.3% after 10 years. Much industrial machinery (Chapters 84–85) sits in the 7-year basket — duty falling to zero by 2027. Three cumulative conditions apply: (1) the goods are on the special preferential tariff schedule; (2) they are imported from an EU member territory (or the UK, Andorra, San Marino, or from a Vietnamese non-tariff zone into the domestic market); and (3) they satisfy EVFTA origin rules with a valid proof of origin.
Origin: where claims fail
EVFTA origin follows Protocol 1: goods must be originating under its product-specific rules and shipped directly. Proof of origin is a EUR.1 movement certificate or an origin declaration by the EU exporter (registered in the REX system for consignments above EUR 6,000). On the Vietnamese side, origin procedures now follow Circular 14/2026/TT-BCT (issued 25 March 2026, effective 10 May 2026), which replaced Circular 11/2020. Typical failures: a declaration from an unregistered exporter over the threshold, broken direct-transport documentation after transshipment, and HS-code mismatches between the declaration and the tariff schedule line.
The fixed-asset exemption track
Independently of EVFTA, machinery and equipment imported to create fixed assets of a project entitled to investment incentives is exempt from import duty — covering machinery, components, spare parts for synchronized assembly, and specialized transport means used directly in the project’s production line, for both new and expansion projects. This exemption often beats the EVFTA rate (zero is zero), but it requires incentive eligibility and registration of the duty-free import list with customs. Investors should compare both tracks line by line: EVFTA helps any importer with origin proof; the exemption helps qualifying projects with no origin requirement at all.
VAT and practical notes
Import VAT applies on top of duty-paid value and is creditable for a VAT-registered importer — it is a cash-flow item, not a final cost, when the machinery serves taxable business. Used machinery faces additional quality and age conditions under separate regulations; verify before contracting. And tariff lines move every year under the EVFTA schedule — confirm the current year’s rate in Decree 116/2022’s tables, not last year’s memo.
Checklist
- Look up the exact HS code and the current-year EVFTA rate in the Decree 116/2022 schedule.
- Secure valid origin proof (EUR.1 or compliant exporter declaration) before shipment.
- Check whether the project qualifies for the fixed-asset duty exemption — it may beat EVFTA.
- Register the duty-free import list with customs where the exemption is used.
- Keep direct-transport evidence for every consignment claiming EVFTA.
Frequently asked questions
Is German machinery already at 0% duty under EVFTA?
Many lines are, or reach zero by 2027 under the 7-year basket — but “many” is not “all.” Check your exact HS code against the current year’s schedule; assuming zero is how penalties start.
Can we claim both EVFTA and the fixed-asset exemption?
You apply one regime per declaration line. Model both: the exemption gives zero duty with no origin paperwork but requires incentive eligibility; EVFTA requires origin proof but is open to any importer.
Our German supplier is not REX-registered. What now?
For consignments above EUR 6,000, an origin declaration from an unregistered exporter is invalid for EVFTA preference — use a EUR.1 certificate or have the supplier complete REX registration.
Does the exemption cover spare parts imported two years later?
Spare parts for synchronized assembly/use with the project’s machinery are covered, but they must be on the registered duty-free list and imported within the project’s scope. Ad-hoc later imports need their own paperwork.
What about used machinery from Germany?
Duty treatment is only half the question — used machinery must also satisfy Vietnam’s separate import conditions on age, quality, and safety. Clear both gates before signing.
Importing German machinery? FLAT Law Firm maps the cheapest lawful duty route for your HS codes — contact us before the goods sail.
This article has been quality-reviewed by the FLAW AI Legal Council
