Decree No. 57/2019/ND-CP Preferential Export Tariffs and Special Preferential Import Tariffs

DECREE

On the Preferential Export Tariffs and Special Preferential Import Tariffs for implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership during 2019-2022^[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 June 23, 2014 Customs Law;

Pursuant to the November 29, 2006 Law on Tax Administration, and the November 20, 2012 Law Amending and Supplementing a Number of Articles of the Law on Tax Administration;

Pursuant to the April 9, 2016 Law on Treaties;

Pursuant to the National Assembly’s Resolution No. 72/2018/QH14 of November 12, 2018, ratifying the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and relevant documents;

For the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership which came into force on January 14, 2019;

At the proposal of the Minister of Finance;

The Government promulgates the Decree on the Preferential Export Tariffs and Special Preferential Import Tariffs for implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership during 2019-2022.

Article 1.Scope of regulation

This Decree promulgates the Preferential Export Tariffs and Special Preferential Import Tariffs for implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) during 2019-2022 and conditions for enjoyment of preferential export duty rates and special preferential import duty rates under CPTPP.

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 exports and imports.

Article 3.The Preferential Export Tariffs and Special Preferential Import Tariffs for CPTPP implementation during 2019-2022

1. To promulgate together with this Decree:

a/ Appendix I - The Preferential Export Tariffs for CPTPP implementation.

b/ Appendix II - The Special Preferential Import Tariffs for CPTPP implementation; a list of used cars subject to tariff quotas and their special preferential import duty rates for CPTPP implementation.

2. The columns “Goods heading” and “Goods description” in the Appendices to this Decree are formulated based on the list of Vietnam’s imports and exports and classified by the 8- or 10-digit code. The application of column “Goods description” classified by the 8-digit code under this Decree must comply with the list of Vietnam’s imports and export and its amending documents.

The classification of goods must comply with Vietnam’s laws.

3. The column “Duty rate (%)” in Appendix I and Appendix II, the column “Specific duty rate (USD/item)” in Appendix II: The duty rates applicable to eligible countries in the periods prescribed in Clause 3, Article 4 and Clause 5, Article 5 of this Decree.

4. The column “Notes” in Appendix II comprises the following symbols:

a/ “TRQ1”: Goods items subject to tariff quotas with the annual quota volume prescribed by the Ministry of Industry and Trade.

b/ “TRQ2”: Goods items subject to tariff quotas with the quota volumes for the CPTPP implementation prescribed by the Ministry of Industry and Trade.

c/ “*”: Imports ineligible for special preferential import duty rates under CPTPP.

Article 4.The Preferential Export Tariffs for CPTPP implementation

1. The Preferential Export Tariffs prescribed in Appendix I to this Decree contains goods headings, goods description and preferential export duty rates applicable of each goods heading in different periods when exported to the countries specified at Point a, Clause 4 of this Articles.

2. Goods not included in the Preferential Export Tariffs in Appendix I to this Decree are eligible for the duty rate of 0% when exported to the countries specified at Point a, Clause 4 of this Article.

3. The duty rates applicable in the 2019-22 period:

a/ For the United Mexican States, to apply the duty rates prescribed in Appendix I as follows:

a.1/ From January 14, 2019, through December 31, 2019, to apply the duty rates at the column with symbol “(I)”.

a.2/ From January 1, 2020, through December 31, 2020, to apply the duty rates at the column with symbol “(II)”.

a.3/ From January 1, 2021, through December 31, 2021, to apply the duty rates at the column with symbol “(III)”.

a.4/ From January 1, 2022, through December 21, 2022, to apply the duty rates at the column with symbol “(IV)”.

b/ For Australia, Canada, Japan, New Zealand and the Republic of Singapore, to apply the duty rates prescribed in Appendix I as follows:

b.1/ From January 14, 2019, through December 31, 2019, to apply the duty rates at the column with symbol “(II)”.

b.2/ From January 1, 2020, through December 31, 2020, to apply the duty rates at the column with symbol “(III)”.

b.3/ From January 1, 2021, through December 31, 2021, to apply the duty rates at the column with symbol “(IV)”.

b.4/ From January 1, 2022, through December 31, 2022, to apply the duty rates at the column with symbol “(V)”.

4. Conditions for application of preferential export duty rates under CPTPP

To be eligible for preferential export duty rates under Clauses 1 and 2 of this Article, a goods lot exported from Vietnam must fully meet the following conditions:

a/ Being imported under the provisions of CPTPP into one of the following countries:

a.1/ Australia;

a.2/ Canada;

a.3/ Japan;

a.4/ United Mexican States;

a.5/ New Zealand; and

a.6/ The Republic of Singapore;

b/ Having transport documents (copies) showing the destination in one of the countries specified at Point a, Clause 4 of this Article.

c/ Having an import customs declaration proving the import of the goods lot exported from Vietnam into one of the countries specified at Point a, Clause 4 of this Article (a copy and its English or Vietnamese translation, in case the declaration is made in a foreign language other than English).

5. Procedures for application of preferential import duty rates for CPTPP implementation

a/ When carrying out customs procedures, a customs declarant shall fill in an export declaration, choose the applicable export duty rate under the Export Tariffs according to the List of dutiable goods prescribed in the Government’s Decree No. 125/2017/ND-CP of November 16, 2017 (Decree No. 125/2014/ND-CP) amending and supplementing a number of articles of the Government’s Decree No. 122/2016/ND-CP of September 1, 2016, on the Export Tariffs, the Preferential Import Tariffs, and the list of commodity items and their specific duty rates, compound duty rates and out-of-quota import duty rates and its amending and supplementing documents, and then calculate and pay export duty.

b/ Within 1 year from the date of registration of the export declaration, the customs declarant shall submit all documents proving that the goods meet the conditions prescribed at Points b and c, Clause 4 of this Article (one copy of each document) and make an additional declaration to enjoy the preferential export duty rate under CPTPP. Past the prescribed 1-year time limit, the exported goods will be no longer eligible for the preferential export duty rate under CPTPP.

c/ The customs office shall check the dossier and the preferential export duty rate in the Export Tariffs provided in Appendix I to this Decree. If the exported goods meet all the conditions prescribed in Clause 4 of this Article, the customs office shall apply the preferential export duty rate under the CPTPP and refund the overpaid duty amount to customs declarant in accordance with the law on tax administration.

Article 5.The Special Preferential Import Tariffs for CPTPP implementation; list of used cars subject to tariff quotas and their special preferential import duty rates for CPTPP implementation

1. The Special Preferential Import Tariffs for CPTPP implementation provided in Appendix II to this Decree includes goods headings, goods descriptions, special preferential import duty rates for goods of each heading, and goods items subject to tariff quotas in different periods when imported from the countries specified at Point b, Clause 6 of this Article.

2. The list of used cars subject to tariff quotas and their special preferential import duty rates for CPTPP implementation provided in Appendix II to this Decree contains goods headings, goods descriptions, and special preferential import duty rates and specific duty rates applicable to each goods heading in different periods when imported from the countries specified at Point b, Clause 6 of this Article.

3. The application of the special preferential import duty rate applicable to used cars of headings 87.02, 87.03, and 87.04, which are subject to tariff quotas must comply with the following:

a/ For a used car imported within the volume of tariff quotas for CPTPP implementation, the special preferential import duty rate is the compound duty rate, including applicable the duty rate (%) and the specific duty rate provided in the List of goods and their special preferential import duty rates provided in Appendix II to this Decree at the time of registration of the customs declaration.

The compound duty amount of a used car = X + Y.

In which:

X = The law-prescribed dutiable price of the used car multiplied (x) by the duty rate applicable to used cars of such type at the time of registration of the customs declaration.

Y = The specific duty rate applicable to the used car at the time of registration of the customs declaration.

b/ For used cars imported out of the quota volume for CPTPP implementation, the import duty rates prescribed at the Government’s Decree No. 125/2017/ND-CP of November 16, 2017, amending and supplementing a number of articles of the Government’s Decree No. 122/2016/ND-CP of September 1, 2016, on the Export Tariffs, the Preferential Import Tariffs and the list of goods items and their specific duty rates, compound rates and out-of-quota duty rates, and its amending and supplementing documents.

4. The application of special preferential import duty rates to goods items of headings 04.07, 17.01, 24.01, and 25.01 which are subject to tariff quotas shall be as follows:

a/ For a goods item marked as TRQ1 or TRQ2 and imported within the quota volume, the special preferential import duty rate is the duty rate provided in Appendix II to this Decree.

b/ For a goods item marked as TRQ1 or TRQ2 and imported out of the quota volume, the import duty must comply with current regulations.

5. Duty rates to be applied during 2019-22:

a/ For the United Mexican States, the duty rates provided in Appendix II shall be applied as follows:

a.1/ From January 14, 2019, through December 31, 2019, to apply the duty rates at the column with symbol “(I)”.

a.2/ From January 1, 2020, through December 31, 2020, to apply the duty rates at the column with symbol “(II)”.

a.3/ From January 1, 2021, through December 31, 2021, to apply the duty rates at the column with symbol “(III)”.

a.4/ From January 1, 2022, through December 31, 2022, to apply the duty rates at the column with symbol “(IV)”.

b/ For Australia, Canada, Japan, New Zealand, the Republic of Singapore, and the Socialist Republic of Vietnam (goods imported from non-tariff areas into the domestic market), to apply the duty rates provided in Appendix II as follows:

b.1/ From January 14, 2019, through December 31, 2019, to apply the duty rates at the column with symbol “(II)”.

b.2/ From January 1, 2020, through December 31, 2020, to apply the duty rates at the column with symbol “(III)”.

b.3/ From January 1, 2021, through December 31, 2021, to apply the duty rates at the column with symbol “(IV)”.

b.4/ From January 1, 2022, through December 31, 2022, to apply the duty rates at the column with symbol “(V)”.

6. Conditions for application of special preferential import duty rates under CPTPP

To be eligible for special preferential import duty rates under CPTPP, imports must fully meet the following conditions:

a/ Being specified in the Special Preferential Import Tariffs or the List of used cars subject to import quotas for CPTPP implementation and their special preferential import duty rates specified in Appendix II to this Decree.

b/ Being imported to Vietnam from CPTPP member states, including:

b.1/ Australia;

b.2/ Canada;

b.3/ Japan;

b.4/ United Mexican States;

b.5/ New Zealand;

b.6/ The Republic of Singapore;

b.7/ The Socialist Republic of Vietnam (goods imported from non-tariff areas into the domestic market);

c/ Being transported to Vietnam directly from a country specified at Point b, Clause 6 of this Article.In case of transit or transshipment, goods must meet the conditions on transit and transshipment under CPTPP, specifically:

c.1/ Goods transported to Vietnam shall retain their origin if not transited or transshipped through the territory of a country that is not a CPTPP member state.

c.2/ Goods transported through the territory of one or more than one country that is not a CPTPP member state shall retain their origin if satisfying the following conditions:

- Not undergoing any stage of production or processing outside the territories of the countries prescribed at Point b, Clause 6 of this Article, except for the following cases of:

+ Loading, unloading, lot splitting, warehouse consignment, labeling or marking at the request of Vietnam; or

+ Other necessary activities in order to ensure well preserve goods or transport goods to the territory of Vietnam.

- Being placed under customs supervision while in the territory of the country that is not a CPTPP member state.

d/ Satisfying the rules of origin and having documents certifying the origin of goods under CPTPP.

7. The volume of TRQ1 and TRQ2 eligible for preferential duty rates under CPTPP shall be announced by the Ministry of Industry and Trade.

Article 6.Effect

1. This Decree takes effect on June 26, 2019.

2. For customs declarations of exports and imports registered between January 14, 2019, and the effective date of this Decree, if the goods meet all conditions for enjoyment of the preferential export duty rates or special preferential import duty rates under this Decree and taxpayers have paid duty at a higher duty rate, customs offices shall refund the overpaid tax amounts in accordance with the law on tax administration.

Article 7.Implementation responsibility

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

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC

* All appendices to this Decree are not translated.