Decree 05/2024/ND-CP Special Preferential Import Tariff to implement 2023-2024 Vietnam-Cambodia Arrangement on Bilateral Trade Enhancement

DECREE

On Vietnam’s Special Preferential Import Tariff to implement the Arrangement on Bilateral Trade Enhancement between the Government of the Socialist Republic of Vietnam and the Government of the Kingdom of Cambodia in the 2023-2024 period^[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 June 13, 2019 Law on Tax Administration;

Pursuant to the April 9, 2016 Law on Treaties;

To implement the Arrangement on Bilateral Trade Enhancement between the Government of the Socialist Republic of Vietnam and the Government of the Kingdom of Cambodia in the 2023-2024 period, which was concluded on June 2, 2023;

At the proposal of the Minister of Finance;

The Government promulgates the Decree on Vietnam’s Special Preferential Import Tariff to implement the Arrangement on Bilateral Trade Enhancement between the Government of the Socialist Republic of Vietnam and the Government of the Kingdom of Cambodia in the 2023-2024 period.

Article 1. Scope of regulation

This Decree provides for special preferential import duty rates and conditions for imported goods to be eligible for special preferential import duty rates under the Arrangement on Bilateral Trade Enhancement between the Government of the Socialist Republic of Vietnam and the Government of the Kingdom of Cambodia in the 2023-2024 period (below referred to as the 2023-2024 Vietnam-Cambodia Arrangement).

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 goods originating in the Kingdom of Cambodia.

Article 3. Special Preferential Import Tariff; List of tariff quota-based imported goods and List of pairs of border gates through which customs clearance is allowed

To promulgate together with this Decree:

1. Appendix I - Vietnam’s Special Preferential Import Tariff to implement the 2023-2024 Vietnam-Cambodia Arrangement.

2. Appendix II - Vietnam’s List of tariff quota-based imported goods to implement the 2023-2024 Vietnam-Cambodia Arrangement.

3. Appendix III - List of pairs of border gates through which customs clearance is allowed for commodity items eligible for special preferential import duty rates under the 2023-2024 Vietnam-Cambodia Arrangement.

Article 4. Conditions for application of special preferential import duty rates

To be eligible for Vietnam’s special preferential import duty rates to implement the 2023-2024 Vietnam-Cambodia Arrangement, imported goods must fully satisfy the following conditions:

1. Being on the Special Preferential Import Tariff to implement the 2023-2024 Vietnam-Cambodia Arrangement provided in Appendix I to this Decree.

2. Being accompanied by a certificate of origin (C/O), Form S, issued by a competent authority of the Kingdom of Cambodia.

3. Being cleared from customs procedures through the pairs of border gates provided in Appendix III to this Decree.

Article 5. Import duty rates and tariff quotas applicable to rice and unmanufactured tobacco originating in the Kingdom of Cambodia

1. Rice and unmanufactured tobacco listed in Appendix I will, if satisfying the conditions specified in Article 4 of this Decree and complying with the Ministry of Industry and Trade’s regulations on tariff quota-based import under the 2023-2024 Vietnam-Cambodia Arrangement, be eligible for the special preferential import duty rates specified in Appendix I according to the import quota volumes specified in Appendix II to this Decree.

2. For rice items: In case rice items are imported in excess of the quota volumes specified in Appendix II to this Decree, the excessive volume of imported goods will be eligible for the special preferential import duty rates specified in the Free Trade Agreements to which both Vietnam and Cambodia are contracting parties (if fully satisfying the conditions specified in the relevant Decrees on Special Preferential Import Tariffs), or will be eligible for preferential import duty rates specified in the Government’s legal documents on the Export Tariff, Preferential Import Tariff and List of commodity items and their specific duty rates, combined duty rates and out-of-quota duty rates, and revising documents (if any).

3. For unmanufactured tobacco:

a/ In case the imported volumes of unmanufactured tobacco exceed the quota volumes specified in Appendix II to this Decree but remain within the total quota volumes set by the WTO and satisfy the conditions specified in Vietnam’s legal documents on tariff-rate quotas, such imported volumes will be eligible for preferential import duty rates specified in the Government’s legal documents on the Export Tariff, Preferential Import Tariff and List of commodity items and their specific duty rates, combined duty rates and out-of-quota duty rates, and revising documents (if any).

b/ In case the imported volumes of unmanufactured tobacco exceed the quota volumes specified in Appendix II to this Decree and fall beyond the total quota volumes set by the WTO, the out-of-quota import duty rates applicable to unmanufactured tobacco specified in the Government’s legal documents on the Export Tariff, Preferential Import Tariff and List of commodity items and their specific duty rates, combined duty rates and out-of-quota duty rates, and revising documents (if any) shall apply.

4. The imported volumes of rice and unmanufactured tobacco mentioned in the cases specified at Points a and b of this Clause shall not be included in the quota volumes of the relevant commodity items specified in Appendix II to this Decree, specifically as follows:

a/ For items of rice cultivated in Cambodian provinces bordering Vietnam with investment of Vietnamese enterprises, households, business households or individuals, which are imported into Vietnam, the current regulations on import duty and export duty shall apply.

b/ For items of rice and unmanufactured tobacco originating in Cambodia, which are imported into Vietnam by Vietnamese enterprises for re-export to other markets, the mechanism of temporary import for re-export provided by the Government of the Socialist Republic of Vietnam and regional and international agreements which the two countries have acceded to or signed.

Article 6. Organization of implementation

1. This Decree takes effect from the date of its signing through December 31, 2024.

2. For customs declarations of the commodity items specified in Appendix I to this Decree which were registered in the period from June 2, 2023, to the date before this Decree takes effect, if the goods items stated in such declarations fully satisfy the conditions to be eligible for the special preferential import duty rates specified in this Decree and duties on such goods items 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.