Decree No. 122/2016/ND-CP dated September 01, 2016 of the Government on the Export Tariff, the Preferential Import Tariff and the list of commodity items and their specific duty rates, combined duty rates and out-of-quota duty rates

DECREE

On the Export Tariff, the Preferential Import Tariff and the list of commodity items and their specific duty rates, combined duty rates and out-of-quota duty rates[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the April 6, 2016 Law on Import Duty and Export Duty;

Pursuant to the National Assembly’s Resolution No. 71/2006/QH11 of 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 promulgates the Decree on the Export Tariff, the Preferential Import Tariff and the list of commodity items and their specific duty rates, combined duty rates and out-of-quota duty rates.

Article 1.Scope of regulation

This Decree promulgates the Export Tariff, the Preferential Import Tariff and the List of commodity items and their specific duty rates, combined duty rates and out-of-quota duty rates.

Article 2.Subjects of application

1. Duty payers prescribed in the Law on Import Duty and Export Duty.

2. Customs offices and customs officers.

3. Organizations and individuals having the rights and obligations related to imported and exported goods.

Article 3.To promulgate the Export Tariff and the Preferential Import Tariff according to the list of dutiable commodity items and the list of commodity items and their specific duty rates, combined duty rates and out-of-quota duty rates

To promulgate together with this Decree:

1. Appendix I - The Export Tariff according to the list of dutiable commodity items(not translated).

2. Appendix II - The Preferential Import Tariff according to the list of dutiable commodity items(not translated).

3. Appendix III - The List of the commodity items of used passenger cars with 15 seats or less (including the driver’s) and their specific duty rates and combined duty rates(not translated).

4. Appendix IV - The List of commodity items subject to tariff quota and their out-of-quota duty rates(not translated).

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 in Appendix I to this Decree includes headings and descriptions of commodities and the export duty rate for each export duty-liable group of items or item.

2. To be eligible for the export duty rate of 5% as prescribed in the Export Tariff promulgated together with this Decree, planted forest wood charcoal under Sub-heading 4402.90.90 must satisfy the following technical criteria:

3. To be eligible for the export duty rate of 0%, articles of jewellery and parts thereof (under Heading 71.13), articles of  goldsmiths’ or silversmiths’ wares and parts thereof, (under Heading 71.14) or other articles of gold (under Heading 71.15) must fully satisfy the following conditions:

a/ Having a test result slip confirming that the gold content is below 95%, which is issued by a testing laboratory licensed to determine gold content in jewellery and goldsmiths’ wares (to submit 1 copy to the customs office and produce the original for comparison), in addition to the customs dossier for exported goods as prescribed;

b/ For articles of jewellery and parts thereof (under Heading 71.13), articles of goldsmiths’ or silversmiths’ wares and parts thereof (under Heading 71.14) and other articles of gold (under Heading 71.15), which are exported in the form of export processing or meet the conditions for being identified as having been wholly produced from imported materials for export in the form of export production, when carrying out customs procedures under current regulations, enterprises are not required to produce gold content testing result slips. Particularly, for cases of export in the form of export production, when carrying out customs procedures, enterprises shall produce the State Bank of Vietnam’s material gold import permits.

4. Fertilizers under Headings 31.01, 31.02, 31.03, 31.04 and 31.05 are subject to import duty rates as follows:

a/ For fertilizers under Headings 31.01, 31.02, 31.03, 31.04 and 31.05, of which the value of natural resources and minerals plus the energy cost making up 51% or more of the production cost, the export duty rate of 5% shall apply;

b/ For fertilizers other than those prescribed at Point a of this Clause, the export duty rate for Headings 31.01, 31.02, 31.03, 31.04 and 31.05 of the Export Tariff in Appendix I to this Decree shall apply.

Article 5.Preferential Import Tariff according to the list of dutiable commodity items

The Preferential Import Tariff according to the list of dutiable commodity items in Appendix II includes:

1. Section I: Provisions on preferential import duty rates applicable to 97 chapters according to Vietnam’s list of imported goods, including titles of Parts, Chapters, Part Annotations and Chapter Annotations; the Import Tariff with detailed commodity descriptions (names of groups of commodity items and commodity items), commodity headings (8-digit) and preferential import duty rates for dutiable commodity items.

2. Section II: Chapter 98 - Provisions on commodity headings and particularly preferential import duty rates for a number of groups of commodity items and commodity items.

a/ Annotations, conditions and procedures for application of the particularly preferential import duty rates specified in Chapter 98.

- Chapter annotations: Commodity items stated in Clause 1, Part I, Section II of Appendix II to this Decree are eligible for the particularly preferential import duty rates specified in Chapter 98.

- Group annotations:

+ Classification of commodity headings and application of particularly preferential import duty rates for automobiles in CKD and automobile chassis fitted with engines and cabs (rolling chassis fitted with cabs) must comply with Clause 2.1, Part I, Section II, Appendix II to this Decree;

+ The commodity items of bleached kraft paper for cement bag production under Heading 98.07; alloy steel containing boron and/or chromium and/or titanium under Heading 98.11; filler, barrier cream and scar reduction gel under Heading 98.25; nylon fabric 1680/D/2 and 1890 D/2 under Heading 98.26; copper wire of a cross-section exceeding 6mm but not exceeding 8mm under Heading 98.30; primary polypropylene granules under Heading 98.37; and non-alloy steel, hot-rolled, in bars or irregularly wound coils, under Heading 98.39, are eligible for the particularly preferential import duty rates specified in Chapter 98, if meeting the technical standards and specifications specified in Clause 2.2, 2.3, 2.4, 2.5, 2.6, 2.7 or 2.8, Part I, Section II of Appendix II to this Decree.

- Classification methods and conditions and procedures for application of the particularly preferential import duty rates specified in Chapter 98, reporting and inspection of the use of goods eligible for the particularly preferential import duty rates specified in Chapter 98 must comply with Clause 3, Part I, Section II of Appendix II to this Decree.

b/ The list of groups of commodity items and commodity items and their preferential import duty rates includes headings of groups of commodity items and commodity items under Chapter 98; descriptions of commodities (names of groups of commodity items and commodity items); their corresponding sub-headings in Section I of Appendix II (97 chapters according to the Vietnam’s Import Tariff) and particularly preferential import duty rates in Chapter 98, must comply with specific provisions in Part II, Section II of Appendix II to this Decree.

c/ In case a group of commodity items and a commodity item which is stated and eligible for the particularly preferential import duty rates specified in Chapter 98, also meets all conditions for application of specially preferential import duty rates under current regulations, either of the particularly preferential import duty rates specified in the Particularly Preferential Import Tariff and the particularly preferential import duty rates specified in Chapter 98 of the Preferential Import Tariff be opted for.

d/ When carrying out customs procedures, customs declarants shall declare headings of goods in the column “Corresponding headings in Section I of Appendix II” as provided in Chapter 98 and note the headings provided in Chapter 98 next to such headings.

Example: Upon import of bleached kraft paper used for cement bag production, customs declarants shall declare the sub-heading of 4804.29.00 (9807.00.00) and the particularly preferential import duty rate of 3%.

3. Section III: Provisions on preferential import duty rates for a number of commodities for implementing WTO commitments in 2017, 2018 and from 2019 onward.

Article 6.Preferential import duty rates applicable to mechanical machinery and petrochemicals

1. Mechanical machinery under Headings 84.54 to 84.63 are eligible for preferential import duty rates as follows:

a/ Mechanical machinery which cannot be manufactured at home are eligible for the preferential import duty rate of 0%. Mechanical machinery mentioned at this Point are those not included in the Ministry of Planning and Investment-approved list of machinery and equipment which can be manufactured at home;

b/ Mechanical machinery other than those specified at Point a of this Clause are eligible for the preferential import duty rates applicable to Heading 84.54s thru 84.63 in the Import Tariff provided in Section I of Appendix II to this Decree.

2. Petrochemicals including benzene under Subheadings 2707.10.00 and 2902.20.00, xylene under Subheading 2707.30.00, p-xylene under Subheading 2902.43.00 and polypropylene under Subheadings 3902.10.30 and 3902.10.90 (except polypropylene in primary forms under Heading 98.37) are eligible for preferential import duty rates according to the following roadmap:

a/ From September 1, 2016, to December 31, 2016: To apply the preferential import duty rate of 1%;

b/ From January 1, 2017, on: To apply the preferential import duty rate of 3% as prescribed in Section I of Appendix II to this Decree.

Article 7.Import duty for used cars

1. For passenger cars with 9 seats or less (including the driver’s) of a cylinder capacity of under 1,500cc under Heading 87.03 and passenger cars with 10 to 15 seats (including the driver’s) under Heading 87.02, the specific duty rates specified in Appendix III to this Decree shall apply.

2. For passenger cars with 9 seats or less (including the driver’s) of a cylinder capacity of 1,500cc or more under Heading 87.03, the combined duty rates specified in Appendix III to this Decree shall apply.

3. For passenger cars with 16 seats or more (including the driver’s) under Heading 87.02 and cargo vehicles of a gross vehicle weight rating not exceeding 5 tons under Heading 87.04 (except refrigerated trucks, refuse collection vehicles having a refuse compressing device, tanker vehicles, armored vehicles for transporting valuable cargoes, bulk-cement trucks, and hook-lift trucks), the preferential import duty rate of 150% shall apply.

4. The preferential import duty rates for other cars under Headings 87.02, 87.03 and 87.04 shall be 1.5 times the preferential import duty rates for brand-new cars of the same category under the same headings specified in Section I, Appendix II to this Decree.

Article 8.List of commodity items subject to tariff quotas and their out-of-quota duty rates

1. The list of commodity items subject to tariff quotas includes a number of commodity items under Headings 04.07, 17.01, 24.01 and 25.01 specified in Appendix IV to this Decree.

2. The out-of-quota duty rates are specified in Appendix IV to this Decree.

3. The volume of annual import quotas for the commodity items specified  in Clause 1 of this Article must comply with the Ministry of Industry and Trade’s regulations.

4. In case the import volume of a commodity item specified in Clause 1 of this Article exceeds its annual import quota prescribed by the Ministry of Industry and Trade, the excessive volume shall be subject to the out-of-quota duty rates specified in Clause 2 of this Article.

5. In case free trade agreements concluded by Vietnam contain commitments on out-of-quota duty rates (committed duty rates) applicable to the commodity items specified in Clause 1 of this Article and the committed duty rates are lower than the out-of-quota duty rates specified in Appendix IV to this Decree, the former shall apply (provided the conditions for application of the commited duty rates are met). In case the committed duty rates are higher than the out-of-quota duty rates specified in Appendix IV, the latter shall apply.

6. In case the import volume of a commodity item specified in Clause 1 of this Article lays within its annual tariff quota prescribed by the Ministry of Industry and Trade, the preferential import duty rates specified in Section I of Appendix II to this Decree or the specially preferential import duty rates according to the Specially Preferential Import Tariff promulgated together with the Government’s decrees to implement free trade agreements (provided the conditions for application of such specially preferential import duty rates are met) shall apply.

Article 9.Organization of implementation

1. This Decree takes effect on September 1, 2016.

2. This Decree annuls:

a/ The Prime Minister’s Decision No. 36/2011/QD-TTg of June 29, 2011, promulgating import duty rates on used cars of 15 seats or less (including the driver’s);

b/ The Prime Minister’s Decision No. 24/2013/QD-TTg of May 3, 2013, amending and supplementing Clause 1, Article 1 of Decision No. 36/2011/QD-TTg of June 29, 2011, promulgating import duty rates on used cars of 15 seats or less (including the driver’s);

c/ The Minister of Finance’s Circular No. 111/2012/TT-BTC of July 4, 2012, promulgating the list of commodity items and their import duty rates to apply tariff quotas;

d/ The Minister of Finance’s Circular No. 80/2014/TT-BTC of June 23, 2014, amending and supplementing Circular No. 111/2012/TT-BTC of July 4, 2012, promulgating the list of commodity items and their import duty rates to apply tariff quotas;

dd/ The Minister of Finance’s Circular No. 182/2015/TT-BTC of November 16, 2015, promulgating the Export Tariff and the Preferential Import Tariff according to the list of dutiable commodity items;

e/ The Minister of Finance’s Circular No. 05/2016/TT-BTC of January 13, 2016, amending the preferential import duty rates for a number of commodity items of the environmental industry under Headings 84.19 and 84.21 in the Preferential Import Tariff within the APEC;

g/ The Minister of Finance’s Circular No. 16/2016/TT-BTC of January 21, 2016, amending the preferential import duty rates for a number of commodities under Headings 27.07, 29.02 and 39.02 in the Preferential Import Tariff;

h/ The Minister of Finance’s Circular No. 25/2016/TT-BTC of February 16, 2016, amending the preferential import duty rate for diammonium phosphate under Subheading 3105.30.00 in the Preferential Import Tariff;

i/ The Minister of Finance’s Circular No. 31/2016/TT-BTC of February 23, 2016, adding the commodity item of n-hexane solvent for use in production of soybean oil cake, vegetable oil cake, de-oiled rice bran and rice bran oil to Chapter 98 of the Preferential Import Tariff;

k/ The Minister of Finance’s Circular No. 48/2016/TT-BTC of March 17, 2016, amending the preferential import duty rates for a number of petrol and oil commodities under Heading 27.10 in the Preferential Import Tariff;

l/ The Minister of Finance’s Circular No. 51/2016/TT-BTC of March 18, 2016, amending and supplementing the list of commodity groups items of the group of steel and iron for tire bead production under Chapter 98 of the Preferential Import Tariff promulgated together with the Minister of Finance’s Circular No. 182/2015/TT-BTC of November 16, 2015, and their particularly preferential import duty rates;

m/ The Minister of Finance’s Circular No. 73/2016/TT-BTC of May 20, 2016, amending and supplementing export duty rates for the commodity item of sawdust charcoal under Heading 44.02 in the Export Tariff promulgated together with the Minister of Finance’s Circular No. 182/2015/TT-BTC of November 16, 2015;

n/ The Minister of Finance’s Circular No. 98/2016/TT-BTC of June 29, 2016, adding the commodity item of brine shrimp eggs to the list of commodity groups and their particularly preferential import duty rates to Chapter 98 of the Preferential Import Tariff promulgated together with the Minister of Finance’s Circular No. 182/2015/TT-BTC of November 16, 2015.

3. The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with related ministries and sectors in, publicizing and providing methods for managing the import of each commodity item subject to tariff quota.

4. Ministers, heads of ministerial-level agencies, heads of governmental-attached agencies and chairpersons of provincial-level People’s Committees shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC