Decree 127/2022/ND-CP Special Preferential Import Tariff between Vietnam and Lao

DECREE

On Vietnam’s Special Preferential Import Tariff to implement the Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People’s Democratic Republic from December 30, 2022, to October 4, 2023^[1]

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

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

Pursuant to the June 23, 2014 Customs Law;

Pursuant to the April 9, 2016 Law on Treaties;

Pursuant to the Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People’s Democratic Republic, which was concluded in Vientiane on March 3, 2015;

Pursuant the Government’s Resolution No. 19/NQ-CP of July 27, 2021, on extension of the Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People’s Democratic Republic for 3 years, from October 4, 2020, to October 4, 2023; 

At the proposal of the Minister of Finance;

The Government promulgates the Decree on Vietnam’s Special Preferential Import Tariff to implement the Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People’s Democratic Republic from December 30, 2022, to October 4, 2023. 

Article 1. Scope of regulation

This Decree specifies special preferential import duty rates and conditions for application of special preferential import duty rates under the Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People’s Democratic Republic (the Lao PDR) (below referred to as the Vietnam-Laos Trade Agreement) from December 30, 2022, to October 4, 2023.

Article 2. Subjects of application

1. Duty payers as defined in the Law on Import Duty and Export Duty.

2. Customs offices and customs officers.

3. Organizations and individuals that have rights and obligations relating to imported and exported goods.

Article 3. Lists of goods originating from the Lao PDR under the Vietnam-Laos Trade Agreement

To promulgate together with this Decree:

1. Appendix I - List of goods eligible for 50% reduction of Vietnam’s ATIGA duty rates under the Vietnam-Laos Trade Agreement.

2. Appendix II - List of goods not eligible for tariff incentives under the Vietnam-Laos Trade Agreement.

3. Appendix III - List of goods eligible for annual tariff-rate quotas under the Vietnam-Laos Trade Agreement.

Article 4. Imported goods eligible for the special preferential import duty rate of 0%

Imported goods originating from the Lao PDR, except those on the Lists specified in Appendices I, II and III to this Decree, will be eligible for the special preferential import duty rate of 0% (zero percent) if satisfying the conditions specified in Article 8 of this Decree.

Article 5. Imported goods eligible for 50% reduction of ATIGA duty rates

1. Goods imported from the Lao PDR and on the List specified in Appendix I to this Decree will be eligible for the special preferential import duty rates equal to 50% of the ATIGA duty rates specified in Vietnam’s Special Preferential Import Tariff to implement the ASEAN Trade in Goods Agreement for the 2022-2027 period promulgated together with the Government’s Decree No. 126/2022/ND-CP of December 30, 2022, if satisfying the conditions specified in Article 8 of this Decree.

2. In case the ATIGA duty rates are higher than the preferential import duty rates specified in the Government’s Export Tariff, Preferential Import Tariff, and List of commodity items and their specific duty rates, compound duty rates and out-of-quota import duty rates at the time of importation and revising documents (if any) (below referred to as the MFN Tariff), the special preferential import duty rates equal to 50% of the duty rates specified in the MFN Tariff shall be applied.

Articles 6. Goods not eligible for tariff incentives when being imported into Vietnam

Goods on the List specified in Appendix II to this Decree will not be eligible for the special preferential import duty rates under the Vietnam-Laos Trade Agreement when being imported into Vietnam.

Article 7. Imported goods eligible for tariff-rate quotas

1. For rice items - HS code 10.06 (with 3 lines of eight-digit commodity codes provided in Appendix III to this Decree):

a/ Rice items originating from the Lao PDR, which are imported into Vietnam within the tariff-rate quotas specified in Appendix III to this Decree, if satisfying the conditions specified in Article 8 of this Decree and complying with the Ministry of Industry and Trade’s regulations on import under tariff-rate quotas, will be eligible for the special preferential import duty rate of 0% (zero percent).

b/ For rice items originating from the Lao PDR, which are imported into Vietnam in excess of the tariff-rate quotas specified in Appendix III to this Decree, if satisfying the conditions specified in Article 8 of this Decree, the excessive rice volumes will be eligible for the duty rates specified in Article 5 of this Decree.

2. For unmanufactured tobacco and tobacco refuse items - HS Code 24.01 (with 13 lines of eight-digit commodity codes provided in Appendix III to this Decree):

a/ Unmanufactured tobacco and tobacco refuse items originating from the Lao PDR, which are on the List of imported goods subject to the tariff-rate quotas specified in Appendix III to this Decree and imported into Vietnam, if satisfying the conditions specified in Article 8 of this Decree and complying with the Ministry of Industry and Trade’s regulations on import under tariff-rate quotas, will be eligible for the special preferential import duty rate of 0% (zero percent).

b/ Unmanufactured tobacco and tobacco refuse items originating from the Lao PDR which are imported into Vietnam in excess of the tariff-rate quotas specified in Appendix III to this Decree will not be eligible for the special preferential import duty rates under the Vietnam-Laos Trade Agreement.

Article 8. Conditions for application of the special preferential import duty rates under the Vietnam-Laos Trade Agreement

The imported goods specified in Articles 4, 5 and 7 of this Decree will be eligible for the special preferential import duty rates under the Vietnam-Laos Trade Agreement if fully satisfying the following conditions:

1. Being imported into Vietnam from the Lao PDR.

2. Complying with the regulations on rules of origin (including also regulations on direct shipping), and being accompanied with a certificate of origin, Form S (C/O, Form S) issued by a competent authority of the Lao PDR in accordance with the Vietnam-Laos Trade Agreement and current regulations.

Article 9. Organization of implementation

1. This Decree takes effect on the date of its signing.

2. The Government’s Decree No. 90/2021/ND-CP of October 19, 2021, on Vietnam’s Special Preferential Import Tariff to implement the Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People’s Democratic Republic from October 4, 2020, to October 4, 2023, ceases to be effective on the date this Decree takes effect.

3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related organizations and individuals shall implement this Decree.-

On behalf of the Government
For the Prime Minister
Deputy Prime Minister
LE MINH KHAI

* The appendices to this Decree are not translated.