Decree 90/2021/ND-CP Special Preferential Import Tariff to implement the Trade Agreement between Vietnam and Lao from October 4, 2020, to October 4, 2023

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 October 4, 2020, 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 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 June 13, 2019 Law on Tax Administration;

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;

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 October 4, 2020, to October 4, 2023. 

Article 1. Scope of regulation

This Decree specifies special preferential import duty rates and conditions for imported goods to be eligible for 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 (PDR) (below referred to as the Vietnam-Laos Trade Agreement) from October 4, 2020, 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 of goods 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 of goods 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 2018-2022 period to the Government’s Decree No. 156/2017/ND-CP of December 27, 2017, and revising documents (if any), 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 Decree No. 57/2020/ND-CP of May 25, 2020, amending and supplementing a number of articles of the Government’ 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, combined duty rates and out-of-quota import duty rates, and the Government’s Decree No. 125/2017/ND-CP of November 16, 2017, amending and supplementing a number of articles of Decree No. 122/2016/ND-CP (below referred to as the MFN Tariff) and revising documents (if any), 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 of goods specified in Appendix II to this Decree are not 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 with HS Code 10.06 (3 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 with HS Code 24.01 (13 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, 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) when being imported into Vietnam.

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 imported goods to be eligible for the special preferential import duty rates under the Vietnam-Laos Trade Agreement

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 from the Lao PDR into Vietnam.

2. Complying with the current regulations on rules of origin applicable to goods eligible for Vietnam-Laos tariff incentives, and being accompanied with a certificate of origin, form S (C/O, Form S) issued by a competent authority of the Lao PDR under regulations.

Article 9. Organization of implementation

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

2. For customs declarations registered in the period from October 4, 2020, to the date before this Decree takes effect, if the goods stated in such declarations fully meet the conditions to be eligible for the special preferential import duty rates specified in this Decree and duties on such goods have been paid at higher rates, customs offices shall handle the overpaid duty amounts in accordance with the law on tax administration.

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.