Decree 101/2021/ND-CP amending Decree 122/2016/ND-CP and Decree 57/2020/ND-CP on Export Tariff, Preferential Import Tariff

DECREE

Amending and supplementing a number of articles of the Government’s Decree No. 122/2016/ND-CP dated September 01, 2016, and the Government's Decree No. 57/2020/ND-CP dated May 25, 2020, amending and supplementing a number of articles of the Government’s Decree No. 122/2016/ND-CP dated September 01, 2016, on the Export Tariff, the Preferential Import Tariff and the list of commodity items and their specific duty rates, compound duty rates and out-of-quota import duty rates, and the Decree No. 125/2017/ND-CP dated November 16, 2017, amending and supplementing a number of articles of the Decree No. 122/2016/ND-CP

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Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Law on Import Duty and Export Duty dated April 06, 2016;

Pursuant to the Law on Tax Administration dated June 13, 2019;

Pursuant to the Law on Customs dated June 23, 2014;

Pursuant to the National Assembly’s Resolution No. 71/2006/QH11 dated November 29, 2006, ratifying the Protocol on Accession of the Socialist Republic of Vietnam to the Agreement Establishing the World Trade Organization;

At the proposal of the Minister of Finance;

The Government hereby promulgates the Decree amending and supplementing a number of articles of the Government’s Decree No. 122/2016/ND-CP dated September 01, 2016, and the Government's Decree No. 57/2020/ND-CP dated May 25, 2020, amending and supplementing a number of articles of the Government’s Decree No. 122/2016/ND-CP dated September 01, 2016, on the Export Tariff, the Preferential Import Tariff and the list of commodity items and their specific duty rates, compound duty rates and out-of-quota import duty rates, and the Decree No. 125/2017/ND-CP dated November 16, 2017, amending and supplementing a number of articles of the Decree No. 122/2016/ND-CP.

Article 1. To amend and supplement a number of articles of the Decree No. 57/2020/ND-CP

1. To amend and supplement Clause 1, Article 2 of the Decree No. 57/2020/ND-CP as follows:

a) To adjust the export duty rates and preferential import duty rates for several commodity groups specified in Appendix I - the Export Tariff according to the list of dutiable commodity items and Appendix II - The Preferential Import Tariff according to the list of dutiable commodity items specified in Clause 1, Article 2 of the Decree No. 57/2020/ND-CP to the new export duty rates and preferential import duty rates as prescribed in Appendix I and Appendix II attached to this Decree.

b) To add the commodity heading 9805.00.00 to the List of commodity groups from 98.01 to 98.48 and the commodity groups 98.50, 98.51, 98.52 specified at Point 1, Clause II, Section II, Appendix II of the Decree No. 57/2020/ND-CP as follows:

b) To add the commodity heading 9849.46.00 to the List of commodity group 98.49 specified at Point 2, Clause II, Section II, Appendix II of the Decree No. 57/2020/ND-CP as follows:

2. To amend and supplement Clause 2, Article 2 of the Decree No. 57/2020/ND-CP amending and supplementing a number of articles of the Decree No. 125/2017/ND-CP as follows:

“Article 4. The Export Tariff according to the list of dutiable commodity items

1. The Export Tariff according to the list of dutiable commodity items specified in Appendix I attached to this Decree includes commodity codes, descriptions, and export duty rates for different commodity groups and items liable to export duty. For exports not included in the Export Tariff, customs declarants shall declare their codes corresponding to 8-digit headings of such commodity items in the Preferential Import Tariff specified in Section I of Appendix II attached to this Decree and are not required to declare duty rates on export declarations.

a) Export items of the group with the original number of 211 in the Export Tariff are commodity items that satisfy both of the following conditions:

Condition 1: Supplies, materials, and semi-finished products (hereinafter referred to as commodities) are not of groups with ordinal numbers from 1 thru 210 in the Export Tariff.

Condition 2: They are processed directly from main materials being natural resources and minerals of a total value plus energy cost accounting for 51% or more of production costs. The determination of the total value of natural resources or minerals plus energy cost accounting for 51% or more of production costs shall comply with the Government’s Decree No. 100/2016/ND-CP dated July 01, 2016, detailing and guiding the implementation of a number of articles of the Law Amending and Supplementing a Number of Articles of the Law on Value-Added Tax, the Law on Excise Tax and the Law on Tax Administration and the Government’s Decree No. 146/2017/ND-CP dated December 15, 2017, amending and supplementing a number of the Decree No. 100/2016/ND-CP.

Exports in the cases of exclusion specified in Clause 1, Article 1 of Decree No. 146/2017/ND-CP dated December 15, 2017, are not of the group with the ordinal number of 211 in the Export Tariff promulgated together with this Decree.

b) Commodity codes and export duty rates of commodity items of groups with an ordinal number of 211

For commodity items detailed into 8-digit headings and commodity description of groups of 25.23, 27.06, 27.07, 27.08, 68.01, 68.02, and 68.03 with the ordinal number of 211 in the Export Tariff, customs declarants shall declare the export duty rates corresponding to such commodity headings as specified in the ordinal number of 211. In case of failing to declare the export duty rates under regulations specified in the group with the ordinal number of 211, the taxpayers must submit the declaration of the ratio of the value of natural resources or minerals plus energy cost of production costs of exports made according to Form No. 14 attached to this Decree at the time of carrying out customs procedures to prove that declared commodities have a total value of natural resources or minerals plus energy cost accounting for less than 51% of production costs. In case taxpayers being trading enterprises purchasing commodities from manufacturing enterprises or other trading enterprises to export without declaring export duty rates under regulations specified in the group with the ordinal number of 211, taxpayers shall, based on the information provided by the manufacturing enterprises, make declarations according to Form No. 14 as mentioned above to prove that the ratio of natural resources or minerals plus energy cost account for less than 51% of production costs. Taxpayers shall take responsibility before the law for the accuracy of their declarations.

For exports in the group with the ordinal number of 211 but not yet detailed into 8-digit headings and satisfying conditions specified at Point a, Clause 1 of this Article, customs declarants shall declare exports according to the 8-digit commodity headings in the Preferential Import Tariff provided in Section I, Appendix II attached to this Decree and declare the export duty rate of 5%”.

3. To amend Point a, Clause 3.3 and Point c.1, Clause 3.3 and Clause 4, Article 7a mentioned in Clause 3, Article 2 of the Decree No. 57/2020/ND-CP as follows:

“3.3. For enterprises manufacturing or assembling automobiles fueled by gasoline or oil

a) Condition on emission standards:

Enterprises must manufacture or assemble automobiles that conform to level-4 or level-5 emission standards for the period from 2018 through 2021; or level-5 or higher-level emission standards for the period from 2022 onward and manufactured or assembled automobiles with emission standard of level 4 granted with a certificate of quality, technical safety and environmental protection before January 01, 2022, which remains valid under the Government's Decree No. 116/2017/ND-CP dated October 17, 2017, and its amending, supplementing or replacing documents (if any).

c.1) In case the enterprise satisfies the condition on minimum general output for each automobile group and minimum specific output for at least one automobile model specified for each period of duty incentive consideration at Point b.12.1, Clause 3.2, Section I, Chapter 98 of Appendix II attached to this Decree and satisfies the conditions specified in Clauses 2 and 3.1; at Points a and b, Clause 3.3; and in Clauses 4, 5, 6 and 7, of this Article, it may enjoy the duty rate of 0% for all imported parts used for manufacturing or assembling the groups of automobiles for which it satisfies the output condition under regulations and which are ex-workshopped during the period of incentive consideration.

In case the enterprise manufactures or assembles both automobiles fueled by gasoline or oil and electric automobiles, automobiles powered by fuel cells, hybrid automobiles or automobiles totally powered by biofuels or automobiles fueled by natural gases when determining the minimum general output of the group of automobiles fueled by gasoline or oil, the enterprise may add up the output of electric automobiles, automobiles powered by fuel cells, hybrid automobiles or automobiles totally powered by biofuels or automobiles fueled by natural gases manufactured or assembled during the period of incentive consideration to the minimum general output of automobiles fueled by gasoline or oil of the same group upon incentive consideration.

In case the first period of incentive consideration of an enterprise manufacturing or assembling automobiles is less than the months of the period of incentive consideration but the enterprise reaches an output of actually manufactured or assembled automobiles of a group at least equal to the average monthly output as a minimum general output multiplied by the number of months of participation in the Program on duty incentives during the period of incentive consideration, and reaches an output of actually manufactured or assembled automobiles of registered models at least equal to the average monthly output as a minimum specific output multiplied by the number of months of participation in the Program on duty incentives during the period of incentive consideration and, at the same time, satisfies the condition on minimum general output and minimum specific output for the subsequent period of incentive consideration, the automobile parts used for manufacturing or assembling automobiles during the first period of incentive consideration will be eligible for the duty rate of 0% provided the enterprise satisfies the conditions specified in Clauses 2 and 3.1; at Points a and b, Clause 3.3; and in Clauses 4, 5, 6 and 7, of this Article. In case the period of participation in the Program on duty incentives in the first month is 15 days or more, such period shall be rounded up to one full month. In case the period of participation in the Program on duty incentives in the first month is under 15 days, such month shall not be counted.”

4. Periods of incentive consideration

Enterprises may select the 6-month period of incentive consideration or 12-month period of incentive consideration as follows:

a) A 6-month period of incentive consideration is counted from January 01 to June 30 or from July 01 to December 31 every year.

In case an enterprise selecting a 6-month period of incentive consideration that has its overpaid tax amount settled for the automobile parts used for manufacturing or assembling ex-workshop automobiles in the first 6 months of the year and the last 6 months of the year, does not meet the condition on output under the Program on duty incentives but its total output of the year satisfies the condition on the output of the 12-month period of incentive consideration under the Program on duty incentives, it shall be considered for tax incentives for the last 6 months of the year, at the same time, its overpaid tax amount for the automobile parts used for manufacturing or assembling ex-workshop automobiles in the period settled, provided that it satisfies the conditions specified in Clauses 2, 3, 5, 6 and 7 of this Article.

a) A 12-month period of incentive consideration is counted from January 01 to December 31 every year.”

4. To amend and supplement Clause 2.5 and Point b.12, Clause 3.2, Section I, Chapter 98, Appendix II - The Preferential Import Tariff according to the list of dutiable commodity items issued together with the Decree No. 57/2020/ND-CP as follows:

“2.5. Dermal fillers; creams to support skin protection functions, gels to reduce scars are classified into the group of 98.25 if they have an import license or a certificate of circulation registration or a receipt for the application for standard publication according to the regulations of the Ministry of Health.

3.2. Conditions and procedures for application of the preferential import duty rates to commodities under heading Chapter 98:

b) Conditions and procedures for application of the preferential import duty rates and reporting, inspecting the import and use of commodity items of groups from 98.17 thru 98.23, and groups of 98.34, 98.40, 98.42, 98.44, 98.49, 98.51:

b.12) An output of actually manufactured or assembled automobiles of the Program on import duty incentives applicable to automobile parts of group 98.49.

b.12.1) Automobiles fueled by gasoline or oil:

Unit: Piece

In the period of incentive consideration, in case the automobile model manufactured or assembled by the enterprise has a type that meets the level 4 emission standards according to the regulations on emission standards specified at Point a, Clause 3.3, Article 7a of this Decree, and meets the level 5 emission standard, the enterprise can calculate the output of the automobile type that meets the level 4 and level 5 emission standards to determine the output condition of that model.

b.12.2) Electric automobiles, automobiles powered by fuel cells, hybrid automobiles, automobiles totally powered by biofuels, or automobiles fueled by natural gases.

Unit: Piece

5. To replace Form No. 05, Form No. 06a and add Form No.14 to Section I, Chapter 98, Appendix II attached to the Decree No. 57/2020/ND-CP.

Article 2. Effect

1. This Decree takes effect from December 30, 2021. The export duty rates applicable to stones in Chapter 25 and Chapter 68; clinker of group 25.23 shall comply with the roadmap specified in Appendix I attached to this Decree. The preferential import duty rates applicable to pork shall comply with the roadmap specified in Appendix I attached to this Decree.

2. The preferential import duty rates applicable to imported automobile parts of group 98.49 specified in Article 7a of the Decree No. 57/2020/ND-CP which is amended and supplemented by this Decree shall be applied until December 31, 2027. Enterprises registered for the Program on duty incentives before the effective date of this Decree are not required to re-register and shall be entitled to incentives under this Decree. In case of changing or adding automobile groups, models, and the number of automobile models registered under the Program on duty incentives, enterprises must re-register with customs offices.

3. To repeal Clause 3, Article 4 of the Decree No. 122/2016/ND-CP.

* All Appendices are not translated herein.