Decree No. 115/2022/ND-CP

DECREE

ON THE PREFERENTIAL EXPORT TARIFF AND SPECIAL PREFERENTIAL IMPORT TARIFF OF VIETNAM FOR THE IMPLEMENTATION OF THE COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANS-PACIFIC PARTNERSHIP FOR THE 2022 - 2027 PERIOD

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law amending and supplementing a number of articles of the Law on Organization of the Government and the Law on Organization of Local Government dated November 22, 2019;

Pursuant to the Law on Export and Import Duties dated April 6, 2016;

Pursuant to the Law on Customs dated June 23, 2014;

Pursuant to the Law on Treaties dated April 9, 2016;

In order to implement Resolution No. 72/2018/QH14 ratifying the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and related instruments dated November 12, 2018;

In order to implement the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, effective from January 14, 2019;

At the proposal of the Minister of Finance;

The Government promulgates this Decree on the Preferential Export Tariff and Special Preferential Import Tariff of Vietnam for the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership for the 2022 - 2027 period.

Article 1. Scope of regulation

This Decree promulgates the Preferential Export Tariff and Special Preferential Import Tariff of Vietnam for the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (hereinafter referred to as the CPTPP Agreement) for the 2022 - 2027 period, and the conditions for eligibility for the preferential export duty rates and special preferential import duty rates under this Agreement.

Article 2. Subjects of application

1. Taxpayers as prescribed by the Law on Export and Import Duties.

2. Customs authorities and customs officers.

3. Organizations and individuals having rights and obligations related to exported and imported goods.

Article 3. Preferential Export Tariff and Special Preferential Import Tariff of Vietnam for the implementation of the CPTPP Agreement for the 2022 - 2027 period

1. Promulgated together with this Decree are:

a) Appendix I - Preferential Export Tariff of Vietnam for the implementation of the CPTPP Agreement.

b) Appendix II - Special Preferential Import Tariff of Vietnam for the implementation of the CPTPP Agreement; the List of goods and special preferential import duty rates applicable to used cars subject to tariff quotas of Vietnam for the implementation of the CPTPP Agreement.

2. The "Commodity code" column and the "Description of goods" column in the Appendices promulgated together with this Decree are formulated on the basis of Vietnam's List of Exported and Imported Goods and detailed at the 8-digit or 10-digit code level.

In case Vietnam's List of Exported and Imported Goods is amended or supplemented, the customs declarant shall declare the description and commodity code according to the amended or supplemented List of Exported and Imported Goods and apply the duty rate of the amended or supplemented commodity code specified in the Appendices promulgated together with this Decree.

3. The "Duty rate (%)" column in Appendix I and Appendix II, and the "Absolute duty rate (USD/unit)" column in Appendix II: The duty rate applicable to the countries eligible for preferential treatment applies for the periods specified in Clause 3 and Clause 4, Article 4, and Clause 5 and Clause 6, Article 5 of this Decree.

4. The "Note" column in Appendix II comprises the following symbols:

a) The symbol "TRQ1": Items subject to tariff quotas according to the annual tariff quota quantity as prescribed by the Ministry of Industry and Trade.

b) The symbol "TRQ2": Items subject to tariff quotas according to the tariff quota quantity for the implementation of the CPTPP Agreement as prescribed by the Ministry of Industry and Trade.

c) The symbol "*": Imported goods not eligible for the special preferential import duty rate under the CPTPP Agreement.

Article 4. Preferential Export Tariff of Vietnam for the implementation of the CPTPP Agreement

1. The Preferential Export Tariff of Vietnam for the implementation of the CPTPP Agreement specified in Appendix I promulgated together with this Decree comprises commodity codes, descriptions of goods, and preferential export duty rates by period for exports to each country specified at Point a, Clause 5 of this Article, for each commodity code.

2. Items not included in the Preferential Export Tariff specified in Appendix I promulgated together with this Decree shall be subject to a duty rate of 0% when exported to the territories of the countries specified at Point a, Clause 5 of this Article.

3. The duty rates applicable to the United Mexican States for the 2022 - 2027 period specified in Appendix I:

a) From December 30, 2022 to December 31, 2022, the column marked "(I)".

b) From January 1, 2023 to December 31, 2023, the column marked "(II)".

c) From January 1, 2024 to December 31, 2024, the column marked "(III)".

d) From January 1, 2025 to December 31, 2025, the column marked "(IV)".

dd) From January 1, 2026 to December 31, 2026, the column marked "(V)".

e) From January 1, 2027 to December 31, 2027, the column marked "(VI)".

4. The duty rates applicable to Australia, Canada, Japan, New Zealand, the Republic of Singapore, and the Republic of Peru for the 2022 - 2027 period specified in Appendix I:

a) From December 30, 2022 to December 31, 2022, the column marked "(II)".

b) From January 1, 2023 to December 31, 2023, the column marked "(III)".

c) From January 1, 2024 to December 31, 2024, the column marked "(IV)".

d) From January 1, 2025 to December 31, 2025, the column marked "(V)".

dd) From January 1, 2026 to December 31, 2026, the column marked "(VI)".

e) From January 1, 2027 to December 31, 2027, the column marked "(VII)".

5. Conditions for application of the preferential export duty rate under the CPTPP Agreement

Goods exported from Vietnam are eligible for the preferential export duty rate under Clause 1 and Clause 2 of this Article if they fully satisfy the following conditions:

a) Being imported into the territories of the countries specified in the CPTPP Agreement, comprising: Australia; Canada; Japan; the United Mexican States; New Zealand; the Republic of Singapore; the Republic of Peru.

b) Having a transport document (copy) showing the destination is within the territory of the countries specified at Point a, Clause 5 of this Article, in accordance with current law.

c) Having an import customs declaration or a document replacing the import customs declaration of the shipment exported from Vietnam and imported into the territory of the countries specified at Point a, Clause 5 of this Article (copy), in accordance with current law.

d) If the documents specified at Points b and c, Clause 5 of this Article are not in Vietnamese or English, the customs declarant must translate them into Vietnamese or English and shall be responsible for the content of the translation.

6. Procedure for application of the preferential export duty rate under the CPTPP Agreement

a) At the time of completing customs procedures, the customs declarant shall declare the export declaration, apply the export duty rate, calculate and pay duty according to the Export Tariff under the List of dutiable items in the Decree on the Export Tariff, the Preferential Import Tariff, the List of goods and the absolute duty rates, mixed duties, and out-of-quota import duties, and its amending and supplementing documents.

b) Within 1 year from the date of registration of the export declaration, the customs declarant shall submit the complete documents proving that the goods satisfy the requirements specified at Points b and c, Clause 5 of this Article, and shall make an additional declaration for application of the preferential export duty rate under the CPTPP Agreement. After the above 1-year period, the exported goods shall not be eligible for the preferential export duty rate under the CPTPP Agreement.

c) The customs authority shall examine the dossier and verify the preferential export duty rate according to the Preferential Export Tariff specified in Appendix I promulgated together with this Decree; if the exported goods fully satisfy the conditions specified in Clause 5 of this Article, the preferential export duty rate under the CPTPP Agreement shall apply, and any overpaid duty shall be handled and refunded to the customs declarant in accordance with the law on tax administration.

Article 5. Special Preferential Import Tariff of Vietnam for the implementation of the CPTPP Agreement; List of goods and special preferential import duty rates applicable to used cars subject to tariff quotas of Vietnam for the implementation of the CPTPP Agreement

1. The Special Preferential Import Tariff of Vietnam for the implementation of the CPTPP Agreement specified in Appendix II promulgated together with this Decree comprises commodity codes, descriptions of goods, special preferential import duty rates by period, and items subject to tariff quotas by period, to be imported from the countries specified at Point b, Clause 7 of this Article, for each commodity code.

2. The List of goods and special preferential import duty rates applicable to used cars subject to tariff quotas of Vietnam for the implementation of the CPTPP Agreement specified in Appendix II promulgated together with this Decree comprises commodity codes, descriptions of goods, special preferential import duty rates, and absolute duty rates by period, to be imported from the countries specified at Point b, Clause 7 of this Article, for each commodity code.

3. The special preferential import duty rate for used cars under headings 87.02, 87.03, and 87.04 subject to tariff quotas shall apply as follows:

a) For used cars imported within the tariff quota quantity for the implementation of the CPTPP Agreement, the special preferential import duty rate is the mixed duty rate comprising: the duty rate (%) and the absolute duty rate for used cars specified in the List of goods and special preferential import duty rates specified in Appendix II promulgated together with this Decree, at the time of registration of the customs declaration.

The amount of duty applying the mixed duty calculation method for used cars = X + Y.

Where:

X = The dutiable value of the used car as prescribed by law multiplied by (x) the duty rate of the same type of used car duty line at the time of registration of the customs declaration.

Y = The corresponding absolute duty rate for the used car at the time of registration of the customs declaration.

b) For used cars imported outside the tariff quota quantity for the implementation of the CPTPP Agreement, the import duty applied shall be that under the Decree on the Export Tariff, the Preferential Import Tariff, the List of goods and the absolute duty rates, mixed duties, and out-of-quota import duties, and its amending and supplementing documents.

4. The special preferential import duty rate for items under headings 04.07, 17.01, 24.01, and 25.01 subject to tariff quotas shall apply as follows:

a) For items imported within the TRQ1 or TRQ2 tariff quota quantity, the special preferential import duty rate is the duty rate specified in Appendix II promulgated together with this Decree.

b) For items imported outside the TRQ1 or TRQ2 tariff quota quantity, the import duty applied shall be as prescribed in the Export Tariff, the Preferential Import Tariff, the List of goods and the absolute duty rates, mixed duties, and out-of-quota import duties issued by the Government at the time of importation.

5. The duty rates applicable to the United Mexican States for the 2022 - 2027 period specified in Appendix II:

a) From December 30, 2022 to December 31, 2022, the column marked "(I)".

b) From January 1, 2023 to December 31, 2023, the column marked "(II)".

c) From January 1, 2024 to December 31, 2024, the column marked "(III)".

d) From January 1, 2025 to December 31, 2025, the column marked "(IV)".

dd) From January 1, 2026 to December 31, 2026, the column marked "(V)".

e) From January 1, 2027 to December 31, 2027, the column marked "(VI)"

6. The duty rates applicable to Australia, Canada, Japan, New Zealand, the Republic of Singapore, and the Republic of Peru for the 2022 - 2027 period specified in Appendix II:

a) From December 30, 2022 to December 31, 2022, the column marked "(II)".

b) From January 1, 2023 to December 31, 2023, the column marked "(III)".

c) From January 1, 2024 to December 31, 2024, the column marked "(IV)".

d) From January 1, 2025 to December 31, 2025, the column marked "(V)".

dd) From January 1, 2026 to December 31, 2026, the column marked "(VI)".

e) From January 1, 2027 to December 31, 2027, the column marked "(VII)".

7. Conditions for application of the special preferential import duty rate under the CPTPP Agreement

Imported goods eligible for the special preferential import duty rate under the CPTPP Agreement must fully satisfy the following conditions:

a) Being included in the Special Preferential Import Tariff or the List of goods and special preferential import duty rates applicable to used cars subject to tariff quotas of Vietnam for the implementation of the CPTPP Agreement specified in Appendix II promulgated together with this Decree.

b) Being imported into Vietnam from the member countries of the CPTPP Agreement, comprising: Australia; Canada; Japan; the United Mexican States; New Zealand; the Republic of Singapore; the Republic of Peru.

c) Satisfying the regulations on origin of goods and having a document certifying the origin of goods in accordance with the CPTPP Agreement.

8. The TRQ1 and TRQ2 import tariff quota quantities eligible for tariff preferences under the CPTPP Agreement shall be announced by the Ministry of Industry and Trade.

Article 6. Goods from non-tariff zones of Vietnam

Goods from non-tariff zones of Vietnam imported into the domestic market that fully satisfy the conditions specified at Points a and c, Clause 7, Article 5 of this Decree shall be subject to the duty rate specified in Appendix II:

1. From December 30, 2022 to December 31, 2022, the column marked "(II)".

2. From January 1, 2023 to December 31, 2023, the column marked "(III)".

3. From January 1, 2024 to December 31, 2024, the column marked "(IV)".

4. From January 1, 2025 to December 31, 2025, the column marked "(V)".

5. From January 1, 2026 to December 31, 2026, the column marked "(VI)".

6. From January 1, 2027 to December 31, 2027, the column marked "(VII)".

Article 7. Effect

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

2. Decree No. 57/2019/ND-CP dated June 26, 2019 promulgating the Preferential Export Tariff and Special Preferential Import Tariff for the implementation of the CPTPP Agreement for the 2019 - 2022 period, and Decree No. 21/2022/ND-CP dated March 10, 2022 amending and supplementing certain articles of Decree No. 57/2019/ND-CP, cease to be effective from the effective date of this Decree.

Article 8. Responsibility for implementation

Ministers, Heads of ministerial-level agencies, Heads of Government-attached agencies, Chairpersons of the People's Committees of provinces and centrally-run cities, and related organizations and individuals shall be responsible for implementing this Decree.