Decree No. 206/2025/ND-CP

DECREE

ON THE SPECIAL PREFERENTIAL IMPORT TARIFF OF VIETNAM FOR THE IMPLEMENTATION OF 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 the Law on Organization of the Government No. 63/2025/QH15;

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

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

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

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

In order to implement the Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People's Democratic Republic signed on April 8, 2024 in Vientiane, Laos;

In order to implement Resolution No. 43/NQ-CP dated 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;

In order to implement Resolution No. 187/NQ-CP dated October 11, 2024 on the approval of 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 this Decree on the Special Preferential Import Tariff of Vietnam for the implementation of 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 for the special preferential import duty rates and the conditions for eligibility for the 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 (hereinafter referred to as the Vietnam - Laos Trade Agreement) from February 24, 2025 to the end of February 24, 2030.

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. List of goods originating from Laos under the Vietnam - Laos Trade Agreement

Promulgated together with this Decree are:

1. Appendix I - List of goods eligible for a 50% reduction of Vietnam's ATIGA duty rate under the Vietnam - Laos Trade Agreement.

2. Appendix II - List of goods not eligible for tariff preferences under the Vietnam - Laos Trade Agreement.

3. Appendix III - List of goods eligible for the annual tariff quota regime under the Vietnam - Laos Trade Agreement.

Article 4. Imported goods eligible for the 0% special preferential import duty rate

Goods imported and originating from Laos, other than goods on the Lists specified in Appendix I, Appendix II and Appendix III promulgated together with this Decree, are eligible for a special preferential import duty rate of 0% (zero percent) if they satisfy the conditions specified in Article 8 of this Decree.

Article 5. Imported goods eligible for a 50% reduction of the ATIGA duty rate.

Goods imported from Laos, falling within the list of goods specified in Appendix I promulgated together with this Decree, are eligible for a special preferential import duty rate equal to 50% of the ASEAN Trade in Goods Agreement (ATIGA) duty rate specified in the Special Preferential Import Tariff promulgated together with Decree No. 126/2022/ND-CP dated December 30, 2022 of the Government promulgating the Special Preferential Import Tariff of Vietnam for the implementation of the ASEAN Trade in Goods Agreement for the 2022 - 2027 period, provided they satisfy the conditions specified in Article 7 and Article 8 of this Decree.

In case the ATIGA duty rate is higher than the preferential import duty rate specified in the Export Tariff, the Preferential Import Tariff, the List of goods and the absolute duty rates, mixed duties, out-of-quota import duties of the Government at the time of importation and amending or supplementing documents (if any) (hereinafter referred to as the MFN Tariff), the special preferential import duty rate equal to 50% of the rate specified in the MFN Tariff shall apply.

Article 6. Imported goods not eligible for tariff preferences upon import into Vietnam

Goods falling under Appendix II promulgated together with this Decree shall not be eligible for the special preferential import duty rate under the Vietnam - Laos Trade Agreement upon import into Vietnam.

Article 7. Imported goods subject to the tariff quota regime

1. For paddy and rice - HS code 10.06 (3 detailed 8-digit HS lines specified in Appendix III promulgated together with this Decree):

a) Paddy and rice originating from Laos imported within the quota specified in Appendix III promulgated together with this Decree, upon import into Vietnam, if satisfying the conditions specified in Article 8 of this Decree and the regulations of the Ministry of Industry and Trade on import under tariff quotas, shall be eligible for a special preferential import duty rate of 0% (zero percent).

b) Paddy and rice originating from Laos imported in excess of the quota quantity specified in Appendix III promulgated together with this Decree, upon import into Vietnam, if satisfying the conditions specified in Article 8 of this Decree, the quantity imported in excess of the tariff quota shall be subject to the duty rate specified in Article 5 of this Decree.

2. For unmanufactured tobacco leaves and tobacco refuse - HS code 24.01 (13 detailed 8-digit HS lines specified in Appendix III promulgated together with this Decree):

a) Unmanufactured tobacco leaves and tobacco refuse originating from Laos, falling under the list of imported goods subject to the tariff quota regime specified in Appendix III promulgated together with this Decree, upon import into Vietnam, if satisfying the conditions specified in Article 8 of this Decree and the regulations of the Ministry of Industry and Trade on import under tariff quotas, shall be eligible for a special preferential import duty rate of 0% (zero percent).

b) Unmanufactured tobacco leaves and tobacco refuse originating from Laos imported into Vietnam in excess of the quota quantity specified in Appendix III promulgated together with this Decree shall not be eligible for the special preferential import duty rate under the Vietnam - Laos Trade Agreement.

3. For sugar and related products - HS code 17.01 (5 detailed 8-digit HS lines specified in Appendix I promulgated together with this Decree).

a) Sugar and related products originating from Laos specified in Appendix I promulgated together with this Decree, upon import into Vietnam, if fully satisfying the conditions specified in Article 8 of this Decree and the imported quantity falls within the quota under the regulations of the Ministry of Industry and Trade on import under tariff quotas, shall be eligible for a 50% reduction of the ATIGA import duty rate.

b) Sugar and related products originating from Laos specified in Appendix I promulgated together with this Decree, when imported in excess of the quota quantity under the regulations of the Ministry of Industry and Trade, upon import into Vietnam, shall not be eligible for the special preferential import duty rate under the Vietnam - Laos Trade Agreement.

Article 8. Conditions for eligibility for the special preferential import duty rate under the Vietnam - Laos Trade Agreement

Imported goods specified in Article 4, Article 5 and Article 7 of this Decree, in order to be subject to the special preferential import duty rate under the Vietnam - Laos Trade Agreement, must fully satisfy the following conditions:

1. Being imported from Laos into Vietnam.

2. Satisfying the regulations on origin of goods (including the regulations on direct transport) and having a Certificate of Origin form S (C/O form S) issued by the 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 to the end of February 24, 2030.

2. For goods imported from Laos into Vietnam with import customs declarations registered from February 24, 2025 to before the effective date of this Decree, if they fully satisfy the conditions for eligibility for the special preferential import duty rate under this Decree and duty has been paid at a higher rate, the customs authority shall handle the overpaid tax amount in accordance with the law on tax administration.

3. This Decree repeals Decree No. 127/2022/ND-CP dated December 30, 2022 of the Government on the Special Preferential Import Tariff of Vietnam for the implementation of 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. 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./.

APPENDIX I

LIST OF GOODS ELIGIBLE FOR A 50% REDUCTION OF VIETNAM'S ATIGA DUTY RATE UNDER THE VIETNAM - LAOS TRADE AGREEMENT (Enclosed with Decree No. 206/2025/ND-CP dated July 15, 2025 of the Government)

Notes:

1. All goods are listed according to the AHTN 2022 of Vietnam's tariff lines.

2. The Certificate of Origin issued for goods on the above list shall be the Certificate of Origin Form S.

APPENDIX II

LIST OF GOODS NOT ELIGIBLE FOR TARIFF PREFERENCES UNDER THE VIETNAM - LAOS TRADE AGREEMENT (Enclosed with Decree No. 206/2025/ND-CP dated July 15, 2025 of the Government)

Notes:

1. All goods are listed according to the AHTN 2022 of Vietnam's tariff lines.

2. The Certificate of Origin issued for goods on the above list shall be the Certificate of Origin Form S.

APPENDIX III

LIST OF GOODS ELIGIBLE FOR THE ANNUAL TARIFF QUOTA REGIME UNDER THE VIETNAM - LAOS TRADE AGREEMENT (Enclosed with Decree No. 206/2025/ND-CP dated July 15, 2025 of the Government)

1. The import quota for tobacco leaves is 3,000 tons

2. The import quota for rice is 70,000 tons

Notes:

1. All goods are listed according to the AHTN 2022 of Vietnam's tariff lines.

2. The Certificate of Origin issued for goods on the above list shall be the Certificate of Origin Form S.