Decree 206/2025/ND-CP on Vietnam’s Special Preferential Import Tariff to implement the Trade Agreement between Vietnam and Laos for 2025-2030

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 for the 2025-2030 period

Pursuant to Law No. 63/2025/QH15 on Organization of the Government;

Pursuant to Law No. 72/2025/QH15 on Organization of Local Administration;

Pursuant to Law No. 107/2016/QH13 on Import Duty and Export Duty;

Pursuant to Law No. 54/2014/QH13 on Customs;

Pursuant to Law No. 108/2016/QH13 on Treaties;

To implement the Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People’s Democratic Republic, which was signed in Vientiane, Laos, on April 8, 2024;

To implement the Government’s Resolution No. 43/NQ-CP of April 5, 2024, on the signing of the Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People’s Democratic Republic;

To implement the Government’s Resolution No. 187/NQ-CP of October 11, 2024, approving the Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People’s Democratic Republic; 

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 for the 2025-2030 period. 

Article 1. Scope of regulation

This Decree provides 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 (below referred to as the Vietnam-Laos Trade Agreement) from February 24, 2025, through February 24, 2030.

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 in Laos 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 ASEAN Trade in Goods Agreement (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 in Laos, except those on the Lists provided 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

Goods imported from Laos and on the List provided in Appendix I to this Decree will be eligible for the special preferential import duty rates equal to 50% of the duty rates under the ATIGA as provided 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 Articles 7 and 8 of this Decree.

In case the ATIGA duty rates are higher than the preferential import duty rates provided 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 provided in the MFN Tariff shall be applied.

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

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

Article 7. Imported goods subject to tariff-rate quotas

1. For rice items - HS code 10.06 (with 3 lines of 8-digit commodity codes provided in Appendix III to this Decree):

a/ Rice items originating in Laos, which are imported into Vietnam within the tariff-rate quotas provided 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 in Laos, which are imported into Vietnam in excess of the tariff-rate quotas provided in Appendix III to this Decree, if satisfying the conditions specified in Article 8 of this Decree, the excessive rice volumes will be subject to 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 8-digit commodity codes provided in Appendix III to this Decree):

a/ Unmanufactured tobacco and tobacco refuse items originating from Laos, which are on the List of imported goods subject to the tariff-rate quotas provided 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 in Laos, which are imported into Vietnam in excess of the tariff-rate quotas provided in Appendix III to this Decree, will not be eligible for the special preferential import duty rates under the Vietnam-Laos Trade Agreement.

3. For sugar and related items - HS code 17.01 (with 5 lines of 8-digit commodity codes provided in Appendix I to this Decree):

a/ Sugar and related items originating in Laos, which are on the List provided in Appendix I 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 rates equal to 50% of the ATIGA duty rates.

b/ Sugar and related items originating in Laos, which are on the List provided in Appendix I to this Decree and imported into Vietnam in excess of the tariff-rate quotas under the Ministry of Industry and Trade’s regulations, 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 Laos.

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 Laos in accordance with the Vietnam-Laos Trade Agreement.

Article 9. Implementation provisions

1. This Decree takes effect from the date of its signing through February 24, 2030.

2. For goods imported from Laos to Vietnam and bearing import customs declaration forms from February 24, 2025, to the date before the effective date of this Decree, which fully satisfy the conditions for application of special preferential import tax rates as specified in this Decree and for which the duty has paid at a higher rate, customs offices shall handle the overpaid duty amounts in accordance with the law on tax administration.

3. This Decree annuls the Government’s Decree No. 127/2022/ND-CP of December 30, 2022, 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 10. 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.-

On behalf of the Government
For the Prime Minister
Deputy Prime Minister
HO DUC PHOC 

* The Appendices to this Decree are not translated.