Decree No. 39/2020/ND-CP the Special Preferential Import Tariff of Vietnam under the Trade Agreement between Vietnam and Cuba

DECREE

On promulgating the Special Preferential Import Tariff of Vietnam to implement the Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Republic of Cuba in the period of 2020 - 2023

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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 June 23, 2014 Law on Customs;

Pursuant to the Law on Taxation Management dated November 29, 2006 and the Law on amending and supplementing a number of the Law on Taxation Management dated November 20, 2012;

Pursuant to the Law on Treaties dated April 09, 2016;

On implementation of the Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Republic of Cuba (hereinafter referred to as the Vietnam - Cuba Trade Agreement);

At the proposal of the Minister of Finance;

The Government hereby promulgates the Decree on promulgating the Special Preferential Import Tariff of Vietnam to implement the Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Republic of Cuba in the period of 2020 - 2023

Article 1.Scope of regulation

This Decree prescribes the royalty rate of the special preferential import tariff of Vietnam to implement Vietnam - Cuba Trade Agreement in the period of 2020 - 2023 and conditions to be eligible for enjoying the preferential import tariff under this Agreement.

Article 2.Subjects of application

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

2. Customs offices and officers.

3. Organizations and individuals that have rights and obligations relating to imports and exports.

Article 3.The Special Preferential Import Tariff

To promulgate together with this Decree, the Special Preferential Import Tariff of Vietnam to implement the Trade Agreement between Vietnam and Cuba in the period of 2020 - 2023.

1. The column of “Commodity Code” and “Commodity Description” shall be establish on the basis of the List of exported and imported goods of Vietnam and be detailed by 8 digits’ code.

In case the List of exported and imported goods of Vietnam modified, the commodity description and commodity code shall be implement as prescribed in the List of exported and imported goods of Vietnam. The customs declarer shall base on the commodity code in accordance with provisions of the List of exported and imported goods of Vietnam to declare and calculate the royalty rate of imported tariff as prescribed in the Preferential Import Tariff issued together with this Decree.

2. The column of “Royalty rate (%)”: The royalty rate applies in each single year and shall be applied from April 01, 2020 to December 31, 2023.

3. For imported goods which be subjected to the application of tariff quota:

The royalty rate of the special preferential import tariff as prescribed in the Special Preferential Import Tariff of Vietnam to implement the Trade Agreement between Vietnam - Cuba in the period of 2020 - 2023 issued together with this Decree shall be apply for commodities imported under tariff quota as regulated by the Ministry of Industry and Trade if satisfies the condition as prescribed in Article 4 of this Decree;

In case the imported commodities beyond the volume of tariff quota as regulated by the Ministry of Industry and Trade, such imported quantity shall be applied the royalty rate as prescribed in the Government’s Decree No. 125/2017/ND-CP on amending and supplementing a number of articles of the Government’s Decree No. 122/2016/ND-CP of September 1, 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; the Government’s Decree No. 122/2016/ND-CP of September 1, 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 amending and supplementing document (if any).

The volume of import tariff quota of each single year shall be regulated by the Ministry of Industry and Trade.

Article 4.Conditions for imports to be eligible for the special preferential import duty rate.

The commodities eligible to be enjoyed the special preferential import tariff of the Agreement must satisfy all the following conditions:

1. Be prescribed in the Special Preferential Import Tariff issued together with this Decree.

2. Be imported from Cuba into Vietnam.

3. Be transported directly from Cuba to Vietnam in accordance with provisions of the Trade Agreement between Vietnam - Cuba, to be specific:

a) The transported commodities not going across the territory of a non - member country; or

b) The transported commodities with the purpose of transit through a non -  member country that including or not the process of load transfer or temporary storage at that country, with the following conditions:

- The transit caused by the geography caution, logistics or by transport requirements;

- The commodities shall not participate in commercial transaction or consumption at the non - member country; and

- The commodities shall not be under any stage of manufacturing or process outside the territory of the non - member country, except for commodities unload, re-load and divide the commodities cargo or any necessary process to remain the well condition of the commodities.

4. Satisfies regulations on commodities origins as prescribed in the Trade Agreement between Vietnam - Cuba and obtains the Certificate of Commodities Origins (C/O) using the VN - CU form.

Article 5.Commodity from the non - tariff zone of Vietnam

Commodity from the non - tariff zone of Vietnam imported to the domestic market shall be applied the royalty rate of special preferential import tariff if satisfies the condition as prescribed in Clause 1 and 4 Article 4 this Decree.

Article 6.Effect

1. This Decree takes effect on May 20, 2020.

2. Customs administration agencies shall settle over-paid tax amounts under the current regulations for importers who already paid the higher duty rates and registered customs declarations of the commodity items prescribed in the Special Preferential Import Tariff of this Decree from April 01, 2020 before the effective date of this Decree, and fully satisfy the conditions for enjoyment of the special preferential import duty rates prescribed in this Decree.

3. In the course of implementation, if relevant legal documents which are referred to in this Decree are amended, supplemented or replaced, the amending, supplementing or replacing documents shall prevail.

Article 7.Implementation responsibility

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./.

For the Government

The Prime Minister

Nguyen Xuan Phuc