Decree No. 26/2023/ND-CP

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

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 Tax Administration dated June 13, 2019;

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

Pursuant to Resolution No. 71/2006/QH11 dated November 29, 2006 of the National Assembly ratifying the Protocol on the accession of the Socialist Republic of Vietnam to the Agreement establishing the World Trade Organization;

At the proposal of the Minister of Finance;

The Government promulgates this 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.

Article 1. Scope of regulation

This Decree promulgates the Export Tariff, the Preferential Import Tariff, the List of goods and the absolute duty rates, mixed duties, and out-of-quota import duties.

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. Promulgation of the Export Tariff and the Preferential Import Tariff according to the List of dutiable commodities, the List of goods and the absolute duty rates, mixed duties, and out-of-quota import duties

Promulgated together with this Decree are:

1. Appendix I - The Export Tariff according to the List of dutiable commodities.

2. Appendix II - The Preferential Import Tariff according to the List of dutiable commodities.

3. Appendix III - The List of goods and the absolute duty rates and mixed duties applicable to used motor vehicles for the transport of 15 persons or fewer.

4. Appendix IV - The List of goods and the out-of-quota import duty rates applicable to commodities subject to tariff quotas.

Article 4. The Export Tariff according to the List of dutiable commodities

1. The Export Tariff according to the List of dutiable commodities specified in Appendix I promulgated together with this Decree comprises the commodity code number (commodity code), the description of goods, and the export duty rate prescribed for each commodity group and dutiable export commodity. In case the exported goods are not named in the Export Tariff, the customs declarant shall declare the commodity code of the exported goods corresponding to the 8-digit commodity code of such goods according to the Preferential Import Tariff specified in Section I of Appendix II promulgated together with this Decree, and is not required to declare the duty rate on the export goods declaration.

2. Exported commodities under the group with serial number (No.) 211 in the Export Tariff must simultaneously satisfy the following two conditions:

a) Condition 1: Materials, raw materials, and semi-finished products (collectively referred to as goods) do not belong to the groups with No. 01 through No. 210 in the Export Tariff.

b) Condition 2: They are processed directly from principal raw materials being resources or minerals whose total value of resources and minerals plus energy costs accounts for 51% or more of the product's cost price. The determination that the total value of resources and minerals plus energy costs accounts for 51% or more of the product's cost price shall be carried out in accordance with Decree No. 100/2016/ND-CP dated July 1, 2016 of the Government detailing and guiding the implementation of a number of articles of the Law amending and supplementing a number of articles of the Law on Value-Added Tax, the Law on Excise Tax and the Law on Tax Administration, and Decree No. 146/2017/ND-CP dated December 15, 2017 of the Government amending and supplementing a number of articles of Decree No. 100/2016/ND-CP, and the amending and supplementing documents (if any).

Exported goods falling under the exclusion cases specified in Clause 1, Article 1 of Decree No. 146/2017/ND-CP dated December 15, 2017 do not belong to the group with No. 211 of the Export Tariff promulgated together with this Decree.

3. The codes and export duty rates of the commodities under the group with serial number 211:

For the commodities detailed with an 8-digit commodity code and description of goods of groups 25.23, 27.06, 27.07, 27.08, 68.01, 68.02, 68.03 under No. 211 of the Export Tariff, the customs declarant shall declare the export duty rate corresponding to such commodity code as specified under No. 211. In case the export duty rate is not declared in accordance with the group with No. 211, the taxpayer shall submit a Statement of the ratio of the value of resources and minerals plus energy costs in the product's cost price of the exported goods according to Form No. 14 in Appendix II promulgated together with this Decree at the time of carrying out customs procedures, in order to prove that the declared goods have a total value of resources and minerals plus energy costs below 51% of the product's cost price. In case the taxpayer is a trading enterprise that purchases goods from a manufacturing enterprise or another trading enterprise for export but does not declare the export duty rate in accordance with the group with No. 211, the taxpayer shall, based on the information provided by the manufacturing enterprise, make the declaration according to Form No. 14 in Appendix II mentioned above in order to prove that the ratio of resources and minerals plus energy costs is below 51% of the product's cost price. The taxpayer shall be legally liable for the accuracy of the declaration.

For exported commodities under the group with No. 211 that have not yet been specifically detailed with an 8-digit commodity code and that satisfy the conditions specified in Clause 2 of this Article, the customs declarant shall declare the exported goods according to the 8-digit commodity code specified in Section I of Appendix II on the Preferential Import Tariff promulgated together with this Decree, and declare the export duty rate of 5%.

Article 5. The Preferential Import Tariff according to the List of dutiable commodities

The Preferential Import Tariff according to the List of dutiable commodities (the Preferential Import Tariff) specified in Appendix II promulgated together with this Decree comprises:

1. Section I: Provides the preferential import duty rates for 97 chapters according to Vietnam's List of Exported and Imported Goods. The content comprises: the names of the Parts and Chapters; Notes; Subheading Notes; the List of the Import Tariff comprising the description of goods, the commodity code (8 digits) according to Vietnam's List of Exported and Imported Goods, and the preferential import duty rate prescribed for the dutiable commodity.

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 and apply the duty rate of the amended or supplemented commodity code.

2. Section II: Provides the List of goods and the preferential import duty rates for a number of commodities under Chapter 98. The content comprises: Notes; the method of classification, conditions, and procedures for application of the preferential import duty rates specified in Chapter 98, and the report on inspection and finalization of the use of goods eligible for the preferential import duty rates specified in Chapter 98; the List of goods and the preferential import duty rates.

a) The commodities named in the List of goods and the preferential import duty rates specified in Clause 3 of Section II of Appendix II promulgated together with this Decree shall be subject to the preferential import duty rates specified in Clause 3 of Section II of Appendix II.

The classification of goods and the application of the preferential import duty rates in Chapter 98 to complete knocked-down motor vehicle component sets (CKD component sets of motor vehicles), incomplete motor vehicle component sets, and chassis fitted with engines and cabs (chassis with cab) shall be carried out in accordance with Clause 1.1 of Section II of Appendix II.

The following commodities: alloy steel containing the element Boron and/or Chromium and/or Titanium under group 98.11; dermal fillers, creams supporting the skin protection function, and scar-reducing gel under group 98.25; nylon tire cord fabric 1680/D/2 and 1890 D/2 under group 98.26; copper wire with a maximum cross-sectional dimension of over 6 mm but not exceeding 8 mm under group 98.30; Polypropylene resin in primary form under group 98.37; non-alloy steel in bars and irregularly wound coils, hot-rolled, under group 98.39; Set-top-boxes under group 98.46; cellular confinement systems made of Nano-composite Polymeric Alloy material (Neoweb) under group 98.47 shall be subject to the preferential import duty rates in Chapter 98 if they meet the standards and technical specifications specified in detail in Clause 1 of Section II of Appendix II.

b) The method of classification, conditions, and procedures for application of the preferential import duty rates specified in Chapter 98, and the report on inspection and finalization of the use of goods eligible for the preferential import duty rates specified in Chapter 98: shall be carried out in accordance with Clause 2 of Section II of Appendix II.

c) The List of goods and the preferential import duty rates specified in Chapter 98 for a number of commodities comprises: the commodity code; the description of goods; the corresponding commodity code of such commodity in Section I of Appendix II on the Preferential Import Tariff according to the List of dutiable commodities; and the preferential import duty rate specified in Chapter 98.

d) Goods that satisfy the conditions for classification into Chapter 98 and are eligible for the special preferential import duty rate in accordance with current regulations may opt to apply the special preferential import duty rate specified in the Special Preferential Import Tariffs or the preferential import duty rate specified in Chapter 98 of the Preferential Import Tariff.

For commodities classified into Chapter 98, when carrying out customs procedures, the customs declarant shall declare the “Corresponding commodity code in Section I of Appendix II” column stated in Chapter 98, and at the same time write it alongside the commodity code of Chapter 98.

Article 6. Preferential import duty rates for mechanical processing machinery

Mechanical processing machinery under groups 84.54 through 84.63 shall be subject to the preferential import duty rates as follows:

1. Mechanical processing machinery not yet domestically produced shall be subject to a preferential import duty rate of 0%. The mechanical processing machinery referred to in this Clause is the type not included in the List of machinery and equipment already domestically produced prescribed by the Ministry of Planning and Investment.

2. Mechanical processing machinery not falling under the case referred to in Clause 1 of this Article shall be subject to the preferential import duty rates of groups 84.54 through 84.63 specified in Section I of Appendix II on the Preferential Import Tariff according to the List of dutiable commodities promulgated together with this Decree.

Article 7. Import duty on used motor vehicles

1. Used motor vehicles for the transport of 9 persons or fewer with a cylinder capacity not exceeding 1,000cc under group 87.03 shall be subject to the absolute duty rates specified in Appendix III promulgated together with this Decree.

2. Used motor vehicles for the transport of 9 persons or fewer with a cylinder capacity of over 1,000cc under group 87.03, and those for the transport of 10 to 15 persons under group 87.02, shall be subject to the mixed duties specified in Appendix III promulgated together with this Decree.

3. Used motor vehicles for the transport of 16 persons or more under group 87.02, and used motor vehicles for the transport of goods with a gross design weight not exceeding 5 tonnes under group 87.04 (except refrigerated vehicles, refuse collection vehicles with a refuse-compacting device, tanker vehicles, armoured vehicles for the transport of valuable goods; bulk-cement vehicles and sludge-carrying vehicles with a detachable liftable tank) shall be subject to a preferential import duty rate of 150%.

4. Other types of used motor vehicles under groups 87.02, 87.03, 87.04 shall be subject to a duty rate equal to 1.5 times the preferential import duty rate of a new motor vehicle of the same type under the same group specified in Section I of Appendix II promulgated together with this Decree.

Article 8. Preferential import duty rates for motor vehicle components imported under the Tax Incentive Program for the manufacture and assembly of motor vehicles (the Tax Incentive Program)

1. The preferential import duty rate of 0% for imported motor vehicle components under group 98.49 in Clause 3 of Section II of Appendix II promulgated together with this Decree is prescribed as follows:

a) At the time of registering the customs declaration, the customs declarant shall declare and calculate the tax on the imported goods according to the ordinary import duty rate or the preferential import duty rate or the special preferential import duty rate as prescribed, not yet applying the 0% preferential import duty rate of group 98.49.

b) The application of the 0% preferential import duty rate to motor vehicle components under group 98.49 shall be carried out in accordance with Clauses 2, 3, 4, 5, 6, 7, and 8 of this Article.

2. Subjects of application

Enterprises holding a Certificate of eligibility for motor vehicle manufacture and assembly issued by the Ministry of Industry and Trade.

3. Conditions for application

a) The imported motor vehicle components must satisfy the following conditions:

a.1) The motor vehicle components are named in group 98.49, are of the type not yet domestically produced, and are used for the manufacture and assembly of motor vehicles during the incentive-consideration period (including inventory components from previous incentive-consideration periods used for the manufacture and assembly of vehicles released from the factory in subsequent incentive-consideration periods). The determination of components not yet domestically produced shall be based on the regulations of the Ministry of Planning and Investment on the List of raw materials, materials, and semi-finished products already domestically produced.

a.2) The imported motor vehicle components are imported directly, imported under a mandate, or imported under an authorization by the motor vehicle manufacturing and assembling enterprise.

a.3) In case the imported component set (including imports from multiple sources and multiple shipments) contains a motor vehicle body-shell and a motor vehicle frame, they must satisfy the following:

The motor vehicle body-shell comprises at least the following assemblies: the roof assembly, the floor assembly, the left-side assembly, the right-side assembly, the front assembly, the rear assembly, and the connecting panels (if any), separate from one another and not yet electrostatically painted;

The motor vehicle frame: the type with a length of under 3.7 m being imported, whether or not connected together, must not be electrostatically painted; the type with a length of 3.7 m or more, whether or not connected together, may be electrostatically painted before importation.

a.4) The imported motor vehicle components do not include any commodity under group 87.07 (bodies, including cabs).

b) For enterprises manufacturing and assembling electric motor vehicles, fuel-cell motor vehicles, hybrid motor vehicles, motor vehicles running wholly on biofuel, and natural-gas motor vehicles, the enterprise is not required to register a vehicle model when participating in the Tax Incentive Program.

b.1) The enterprise is not required to satisfy the minimum output condition in the first period of registering to participate in the Tax Incentive Program and the immediately following incentive-consideration period; if it satisfies the provisions of Clause 2, Point a of Clause 3, Clauses 4, 6, 7, and 8 of this Article, it shall be entitled to the 0% duty rate for all imported components used for the manufacture and assembly of the vehicle group that the enterprise has registered to participate in the Tax Incentive Program and that is released from the factory during the incentive-consideration period.

b.2) In subsequent incentive-consideration periods, the enterprise must satisfy the minimum output as prescribed in Point b of Clause 5 of this Article and satisfy the conditions specified in Clause 2, Point a of Clause 3, Clauses 4, 6, 7, and 8 of this Article; it shall then be entitled to the 0% duty rate for all imported components used for the manufacture and assembly of the vehicle group for which the enterprise satisfies the output condition as prescribed and which is released from the factory during the incentive-consideration period.

c) For enterprises manufacturing and assembling motor vehicles using gasoline or diesel fuel:

c.1) Condition on emission standards

The manufacture and assembly of motor vehicles that meet emission standard level 5 or higher for the period from 2022 onward, and vehicles meeting emission standard level 4 manufactured and assembled that have been granted a Certificate of technical safety quality and environmental protection before January 1, 2022 and that remain valid, in accordance with Decree No. 116/2017/ND-CP dated October 17, 2017 of the Government and the documents amending, supplementing, or replacing it (if any).

c.2) Condition on vehicle models

An enterprise manufacturing and assembling vehicles using gasoline or diesel fuel may register one or more vehicle models when participating in the Tax Incentive Program. During the implementation period of the Tax Incentive Program, the enterprise may change or supplement the vehicle models and the number of registered vehicle models. The output of the changed or supplemented vehicle model shall be added to the minimum general output for incentive consideration, but it must still satisfy the minimum individual output condition for each incentive-consideration period. The vehicle models of the vehicle groups are prescribed as follows:

The vehicle model for the group of vehicles for the transport of 9 persons or fewer with a cylinder capacity of 2,500cc or less under group 87.03 is a vehicle that simultaneously meets the following criteria: the same engine criterion and a cylinder capacity of 2,500cc or less; the same body-shell (or body-frame) criterion; and fuel consumption below 7.5 litres/100 km. The criterion of fuel consumption below 7.5 litres/100 km shall be based on the combined-cycle fuel consumption stated in the Certificate of fuel consumption issued by the Vietnam Register;

The vehicle model for the mini-bus group (vehicles for the transport of 10 to 19 persons under group 87.02) and the bus/coach group (vehicles for the transport of 20 persons or more under group 87.02) is a vehicle that has the same engine criterion and the same motor-vehicle body-frame criterion;

The vehicle model for the truck group (motorized goods-transport vehicles under group 87.04 and motorized special-purpose vehicles under group 87.05) is a vehicle that has the same engine criterion and the same cab criterion.

The determination of the engine criterion of a vehicle model shall be based on the cylinder capacity, type, or power of the engine stated in the Certificate of technical safety quality and environmental protection of manufactured and assembled motor vehicles issued by the Vietnam Register. The determination of the body-shell (or body-frame) criterion, the motor vehicle frame, and the cab shall be based on the basic technical characteristics of the motor vehicle and the body-frame structure stated in the technical design specification and the technical drawings of the motor vehicle appraised by the Vietnam Register.

c.3) Condition on minimum general output (being the manufacturing and assembly output applied to each motor vehicle group) and minimum individual output (being the manufacturing and assembly output of the vehicle model registered to participate in the Tax Incentive Program)

The enterprise satisfies the condition on minimum general output and minimum individual output in one of the following cases:

c.3.1) In case the enterprise satisfies the minimum general output for each vehicle group and the minimum individual output for at least 1 vehicle model prescribed for each tax incentive-consideration period in Point a of Clause 5 of this Article, and satisfies the conditions specified in Clause 2, Points a, c.1, c.2 of Clause 3, Clauses 4, 6, 7, and 8 of this Article, the enterprise shall be entitled to the 0% duty rate for all imported components used for the manufacture and assembly of the vehicle group for which the enterprise satisfies the output condition as prescribed and which is released from the factory during the incentive-consideration period.

In case both vehicles using gasoline or diesel fuel and electric motor vehicles, fuel-cell motor vehicles, hybrid motor vehicles, motor vehicles running wholly on biofuel, and natural-gas motor vehicles are manufactured and assembled, then when determining the minimum general output of the group of vehicles using gasoline or diesel fuel, the enterprise may add the output of electric motor vehicles, fuel-cell motor vehicles, hybrid motor vehicles, motor vehicles running wholly on biofuel, and natural-gas motor vehicles manufactured and assembled during the incentive-consideration period to the minimum general output of the same group of vehicles using gasoline or diesel fuel when considering the incentive.

c.3.2) In case the enterprise has an actual manufacturing and assembly output of 1 model of vehicle for the transport of 9 persons or fewer registered during the incentive-consideration period reaching 1.3 times or more the minimum individual output of the model of vehicle for the transport of 9 persons or fewer prescribed in Point a of Clause 5 of this Article, and satisfies the conditions specified in Clause 2, Points a, c.1, c.2 of Clause 3, Clauses 4, 6, 7, and 8 of this Article, the enterprise shall be entitled to the 0% duty rate for the imported components used for the manufacture and assembly of that registered vehicle model released from the factory during the incentive-consideration period.

c.3.3) In case the enterprise has a total actual manufacturing and assembly output of 2 models of vehicles for the transport of 9 persons or fewer registered during the incentive-consideration period reaching 1.5 times or more the minimum individual output of the model of vehicle for the transport of 9 persons or fewer prescribed in Point a of Clause 5 of this Article, and satisfies the conditions specified in Clause 2, Points a, c.1, c.2 of Clause 3, Clauses 4, 6, 7, and 8 of this Article, the enterprise shall be entitled to the 0% duty rate for the imported components used for the manufacture and assembly of those two registered vehicle models released from the factory during the incentive-consideration period.

c.3.4) In case the enterprise registers to participate in the Tax Incentive Program with 2 or more vehicle groups and the total actual manufacturing and assembly output of all the vehicle groups registered to participate in the Tax Incentive Program during the incentive-consideration period is at least equal to the total minimum general output of the corresponding vehicle groups prescribed in Point a of Clause 5 of this Article, and satisfies the conditions specified in Clause 2, Points a, c.1, c.2 of Clause 3, Clauses 4, 6, 7, and 8 of this Article, the enterprise shall be entitled to the 0% duty rate for the imported components used for the manufacture and assembly of the vehicles under the vehicle groups that the enterprise has registered to participate in the Program and that are released from the factory during the incentive-consideration period.

c.3.5) In case the first incentive-consideration period of the motor vehicle manufacturing and assembling enterprise specified in Points c.3.1, c.3.2, c.3.3, c.3.4 of this Clause does not have a sufficient number of months in the incentive-consideration period, if the enterprise reaches an actual manufacturing and assembly output of the vehicle group at least equal to the average monthly output of the minimum general output multiplied by the duration (number of months) of participation in the Tax Incentive Program during the incentive-consideration period, and reaches an actual manufacturing and assembly output of the registered vehicle model at least equal to the average monthly output of the minimum individual output multiplied by the number of months of participation in the Tax Incentive Program during the incentive-consideration period, and at the same time meets the minimum general output and minimum individual output conditions for the following incentive-consideration period, then the motor vehicle components used for the manufacture and assembly of motor vehicles during the first incentive-consideration period shall be entitled to the 0% duty rate if the enterprise satisfies the conditions specified in Clause 2, Points a, c.1, c.2 of Clause 3, Clauses 4, 6, 7, and 8 of this Article. In case the duration of participation in the Tax Incentive Program of the first month is 15 days or more, it shall be counted as a full month. In case the number of days of participation in the Tax Incentive Program of the first month is under 15 days, that month shall not be counted.

4. Tax incentive-consideration period

The enterprise may select a tax incentive-consideration period of 6 months or 12 months as follows:

a) The 6-month tax incentive-consideration period is counted from January 1 to June 30 or from July 1 to December 31 each year.

In case the enterprise selects the 6-month tax incentive-consideration period and has been dealt with for overpaid tax with respect to the components for the manufacture and assembly of motor vehicles released from the factory in the first 6-month period and the last 6-month period of the year that did not meet the output condition as prescribed by the Tax Incentive Program, but the total output for the whole year satisfies the output condition of the 12-month tax incentive-consideration period as prescribed by the Tax Incentive Program, it shall still be granted the tax incentive for the last 6-month period of the year and, at the same time, be dealt with for the overpaid tax with respect to the components used for the manufacture and assembly of motor vehicles released from the factory during the period, provided it satisfies the provisions of Clauses 2, 3, 6, 7, and 8 of this Article.

b) The 12-month tax incentive-consideration period is counted from January 1 to December 31 each year.

5. The output of vehicles manufactured and assembled under the Tax Incentive Program for the manufacture and assembly of motor vehicles

a) Motor vehicles using gasoline or diesel fuel.

Unit of calculation: Vehicle

During the tax incentive-consideration period, in case a vehicle model manufactured and assembled by the enterprise includes both a type meeting emission standard level 4 as prescribed on emission standards in Point c.1 of Clause 3 of Article 8 of this Decree and a type meeting emission standard level 5, the enterprise may count the output of both the vehicle type meeting emission standard level 4 and the type meeting emission standard level 5 in order to determine the output condition of that vehicle model.

For the 2023 tax incentive-consideration period, an enterprise that has participated in the Tax Incentive Program may add the output of vehicles manufactured, assembled, and released from the factory from January 1, 2023 to the effective date of this Decree for incentive consideration, provided it satisfies the conditions of the Tax Incentive Program prescribed in Decree No. 57/2020/ND-CP dated May 25, 2020 of the Government and Decree No. 101/2021/ND-CP dated November 15, 2021, except that the condition on the minimum degree of disassembly of motor vehicle components is not required to be applied.

b) Electric-powered vehicles; fuel-cell motor vehicles; hybrid motor vehicles; motor vehicles running wholly on biofuel; natural-gas motor vehicles.

Unit of calculation: Vehicle

6. Dossier and procedures for registering to participate in the Tax Incentive Program

a) The dossier comprises:

a.1) An official letter registering to participate in the Motor Vehicle Component Tax Incentive Program according to Form No. 05 in Appendix II promulgated together with this Decree: 1 original;

a.2) The Certificate of eligibility for motor vehicle manufacture and assembly: 1 certified copy.

b) Procedures for registering to participate: The enterprise shall submit the dossier for registering to participate in the Tax Incentive Program directly, or send it through the electronic data system, or send it by post to the customs authority where the enterprise has its head office or where its manufacturing and assembly plant is located, in order to register to participate in the Tax Incentive Program from the effective date of this Decree or at any time each year during the duration of the Tax Incentive Program. The time of participation in the Tax Incentive Program is counted from the date of the registration official letter onward.

7. Procedures for declaration on the customs declaration

The customs declarant shall declare the “Type code” criterion: declaring type code A43 - “Import of goods under the Tax Incentive Program” for imported motor vehicle components bearing commodity codes under group 98.49 for the manufacture and assembly of the vehicle group registered to participate in the Tax Incentive Program; and the “Enterprise internal management number” criterion: declaring the code “#&7a.”

8. Dossier and procedures for applying the 0% preferential duty rate of group 98.49

a) The dossier comprises:

a.1) An official letter requesting the application of the 0% preferential duty rate of group 98.49 according to Form No. 06a in Appendix II promulgated together with this Decree: 1 original;

a.2) A report on the situation of the use of imported motor vehicle components for the manufacture and assembly of vehicles released from the factory during the incentive-consideration period according to Form No. 06 in Appendix II promulgated together with this Decree: 1 original;

a.3) A statement of the customs declarations and the amount of import duty paid according to Form No. 07 in Appendix II promulgated together with this Decree: 1 original;

a.4) Accounting documents showing the quantity of imported components used for the manufacture and assembly of the vehicle groups during the incentive-consideration period: 1 photocopy;

a.5) The enterprise's factory-release quality inspection sheets according to the sheet form issued by the Vietnam Register: copies bearing the enterprise's seal (the number of copies corresponding to the number of vehicles manufactured and assembled during the incentive-consideration period);

a.6) The Certificate of technical safety quality and environmental protection of manufactured and assembled motor vehicles: certified copies or copies with the originals presented for comparison (the number of copies corresponding to the number of vehicle types manufactured and assembled);

a.7) The technical design specification and the technical drawings of the motor vehicle appraised by the Vietnam Register: certified copies or photocopies with the originals presented for comparison (the number of copies corresponding to the vehicle types manufactured and assembled).

b) Procedures for applying the duty rate of group 98.49:

b.1) No later than 60 days from June 30 or December 31, the enterprise shall send the dossier specified in Point a of this Clause to the customs authority that received the dossier for registering to participate in the Tax Incentive Program. In case the dossier is submitted beyond the 60-day time limit, the customs authority shall receive the dossier, carry out inspection, and impose administrative penalties as prescribed by the Government.

In case the enterprise's first incentive-consideration period is less than 6 months, the enterprise shall submit the dossier specified in Point a of this Clause at the same time as submitting the dossier requesting the application of the 0% duty rate for the following incentive-consideration period.

b.2) The customs authority shall, based on the enterprise's request dossier, inspect the subjects and conditions for application of the Tax Incentive Program specified in Clauses 2 and 3 of this Article. Of which:

The vehicle output is based on the number of the enterprise's factory-release quality inspection sheets issued during the incentive-consideration period.

The registered vehicle model is based on the Certificate of technical safety and environmental protection of manufactured and assembled motor vehicles issued by the Vietnam Register.

The quantity of imported motor vehicle components used (not including components put into use but damaged or defective) must be consistent with the quantity of vehicles actually manufactured and assembled that have factory-release quality inspection sheets during the incentive-consideration period, and based on the report on the situation of the use of motor vehicle components eligible for the import duty incentive, the statement of the customs declarations, and the amount of import duty paid according to each import goods customs declaration.

b.3) Based on the results of the inspection of the enterprise's dossier, the customs authority shall handle it as follows:

In case the dossier is incomplete, the customs authority shall issue a written request for the enterprise to submit additional documents. In case of doubt about the accuracy of the dossier, the customs authority shall carry out inspection at the customs authority's office or at the taxpayer's office in accordance with the law on tax administration.

In case the dossier satisfies the conditions for application of the Tax Incentive Program and the enterprise has paid an amount of tax on the imported motor vehicle components greater than the amount of tax payable at the duty rate of group 98.49, the customs authority shall issue a Refund Decision and prepare a Refund Order for the overpaid tax to the enterprise in accordance with the Law on Tax Administration and its guiding documents. Based on the Order for refund of the state budget revenue of the customs authority, the State Treasury shall refund the overpaid import duty to the enterprise. The source for the refund of overpaid tax is taken from the central budget revenue on export duty and import duty.

In case the enterprise does not fully satisfy the conditions for application of the Tax Incentive Program, it shall not be entitled to a tax refund, and the customs authority shall issue a written reply to inform the enterprise.

Article 9. Preferential import duty rates for raw materials, materials, and components for the manufacture and processing (assembly) of supporting industry products prioritized for development for the motor vehicle manufacturing and assembly industry until December 31, 2024 (abbreviated as the Tax Incentive Program for the Motor Vehicle Supporting Industry)

1. The preferential import duty rate of 0% for raw materials, materials, and components not yet domestically produced for the manufacture and processing (assembly) of supporting products prioritized for development for the motor vehicle manufacturing and assembly industry (abbreviated as motor vehicle supporting industry products) until December 31, 2024 is prescribed as follows:

a) At the time of registering the customs declaration, the customs declarant shall declare and calculate the tax on the imported raw materials, materials, and components according to the ordinary import duty rate or the preferential import duty rate or the special preferential import duty rate as prescribed, not yet applying the 0% duty rate.

b) The application of the 0% preferential import duty rate to raw materials, materials, and components of the Tax Incentive Program for the Motor Vehicle Supporting Industry shall be carried out in accordance with Clauses 2, 3, 4, 5, 6, 7, and 8 of this Article.

2. Subjects of application

a) Enterprises manufacturing and processing (assembling) motor vehicle components and spare parts.

b) Motor vehicle manufacturing and assembling enterprises that themselves manufacture and process (assemble) motor vehicle components and spare parts.

3. Conditions for application

a) Enterprises manufacturing and processing (assembling) motor vehicle components and spare parts must satisfy the following conditions:

a.1) Having a contract for the purchase and sale of motor vehicle supporting industry products with motor vehicle manufacturing and assembling enterprises holding a Certificate of eligibility for motor vehicle manufacture and assembly issued by the Ministry of Industry and Trade;

a.2) An Investment Certificate or Investment Registration Certificate or Enterprise Registration Certificate or Business Registration Certificate that clearly states the project objective or the business line, which includes the manufacture of spare parts and accessories for motor vehicles and other motorized vehicles;

a.3) Having ownership or the right to use the manufacturing and processing (assembly) facility and the machinery and equipment at the manufacturing and processing (assembly) facility on the territory of Vietnam.

b) Motor vehicle manufacturing and assembling enterprises that themselves manufacture and process (assemble) motor vehicle components and spare parts must hold a Certificate of eligibility for motor vehicle manufacture and assembly issued by the Ministry of Industry and Trade.

c) The imported raw materials, materials, and components must satisfy the following conditions:

c.1) The imported raw materials, materials, and components (including raw materials, materials, and components already imported from the effective date of this Decree remaining in inventory from previous incentive periods carried over for the manufacture and processing (assembly) of motor vehicle supporting industry products in subsequent incentive periods; not including raw materials, materials, and components put into use but damaged or defective) for the manufacture and processing (assembly) of motor vehicle supporting industry products are named in the List of supporting industry products prioritized for development for the motor vehicle manufacturing and assembly industry specified in Section IV of the Appendix promulgated together with Decree No. 111/2015/ND-CP dated November 3, 2015 of the Government on the development of the supporting industry, and the amending and supplementing documents (if any). In case the products are merely assembled together by simple devices such as screws, bolts, nuts, or rivets and do not undergo any manufacturing or processing to become finished products, the Tax Incentive Program for the Motor Vehicle Supporting Industry shall not be applied.

c.2) The imported raw materials, materials, and components are of the type not yet domestically produced and are imported directly, imported under a mandate, or imported under an authorization by the enterprise specified in Clause 2 of this Article. The determination of raw materials, materials, and components not yet domestically produced shall be based on the regulations of the Ministry of Planning and Investment on the List of raw materials, materials, and semi-finished products already domestically produced.

An enterprise specified in Clause 2 of this Article that satisfies the provisions of Points a, b, and c of this Clause and the provisions of Clauses 4, 5, 6, 7, and 8 of this Article shall be entitled to the 0% preferential import duty rate for the imported raw materials, materials, and components for the manufacture and processing (assembly) of motor vehicle supporting industry products during the incentive-consideration period.

4. Tax incentive-consideration period

The tax incentive-consideration period shall not exceed 6 months, counted from January 1 to June 30 or from July 1 to December 31 each year.

5. Dossier and procedures for registering to participate in the Tax Incentive Program for the Motor Vehicle Supporting Industry

a) The dossier for registering to participate in the Tax Incentive Program for the Motor Vehicle Supporting Industry comprises:

a.1) An official letter registering to participate in the Tax Incentive Program for the Motor Vehicle Supporting Industry according to Form No. 08 in Appendix II promulgated together with this Decree: 1 original;

a.2) An Investment Certificate or Investment Registration Certificate or Enterprise Registration Certificate or Business Registration Certificate (applicable to the case specified in Point a of Clause 2 of this Article): 1 certified copy;

a.3) A written notification of the manufacturing and processing (assembly) facility and the machinery and equipment at the manufacturing and processing (assembly) facility to the customs authority according to Form No. 09 in Appendix II promulgated together with this Decree (applicable to the case specified in Point a of Clause 2 of this Article): 1 original. The Land Use Right Certificate issued by a competent state authority to the enterprise, or the Land Use Right Certificate issued by a competent authority to the landowner together with the contract for leasing or borrowing the land, premises, or workshop in case the enterprise leases or borrows them to use as a manufacturing facility: 1 certified copy;

a.4) The Certificate of eligibility for motor vehicle manufacture and assembly issued by the Ministry of Industry and Trade (applicable to the case specified in Point b of Clause 2 of this Article): 1 certified copy.

b) Procedures for registering to participate in the Tax Incentive Program for the Motor Vehicle Supporting Industry

The enterprise shall submit the dossier for registering to participate in the Tax Incentive Program for the Motor Vehicle Supporting Industry directly, or send it through the customs authority's electronic data system, or send it by post to the customs authority where the enterprise has its head office or where its manufacturing and processing (assembly) facility is located, in order to register to participate immediately after the effective date of this Decree or at any time during the year. The time of participation is counted from the date of the official letter registering for the Tax Incentive Program for the Motor Vehicle Supporting Industry onward.

6. Procedures for declaration on the customs declaration

At the time of registering the customs declaration, the customs declarant shall declare the Type code criterion as “A43 - Import of goods under the Tax Incentive Program”; the “Enterprise internal management number” criterion as “#&7b”; and the “Commodity code number” (HS code) criterion according to Vietnam's List of Exported and Imported Goods for the raw materials, materials, and components of the Tax Incentive Program for the Motor Vehicle Supporting Industry.

7. Inspection of the manufacturing and processing (assembly) facility of the enterprise participating in the Tax Incentive Program for the Motor Vehicle Supporting Industry

After receiving the dossier for registering to participate in the Tax Incentive Program for the Motor Vehicle Supporting Industry, the customs authority shall inspect the manufacturing and processing (assembly) facility and the machinery and equipment at the manufacturing and processing (assembly) facility that the enterprise has notified to the customs authority. The customs authority shall issue a Decision on the inspection of the manufacturing and processing facility according to Form No. 09a in Appendix II promulgated together with this Decree and send it through the customs authority's electronic data system, or by registered mail or fax, to the customs declarant within 3 working days from the date of signing. The inspection shall be carried out 5 working days after the date of issuance of the inspection Decision. The inspection time limit shall not exceed 5 working days. The inspection contents comprise:

a) Inspecting the actual manufacturing and processing facility against the information the enterprise notified to the customs authority, the Investment Certificate or Investment Registration Certificate or Enterprise Registration Certificate or Business Registration Certificate, the Land Use Right Certificate issued by a competent state authority to the enterprise, or the Land Use Right Certificate issued by a competent state authority to the landowner together with the contract for leasing or borrowing the land, premises, or workshop in case the enterprise leases or borrows them to use as a manufacturing and processing facility.

b) Inspecting the actual machinery and equipment at the manufacturing and processing facility in conformity with the import goods customs dossier, invoices, documents, and contracts for leasing or borrowing machinery and equipment (in case of leasing or borrowing machinery and equipment); inspecting the manufacturing and processing (assembly) process and scale, the status of human resources, and the status of machinery and equipment in order to determine the conformity of the enterprise's actual manufacturing capacity with respect to the products registered to participate in the Tax Incentive Program for the Motor Vehicle Supporting Industry.

Upon completion of the inspection, the customs authority shall prepare a Record of the results of the inspection of the manufacturing and processing facility according to Form No. 09b in Appendix II promulgated together with this Decree.

Within 5 working days from the date of signing the inspection record, the customs authority shall notify the enterprise in writing of whether or not it satisfies the conditions on the manufacturing and processing (assembly) facility and the machinery and equipment specified in Point a.3 of Clause 3 of this Article, according to Form No. 09c in Appendix II promulgated together with this Decree.

During participation in the Tax Incentive Program for the Motor Vehicle Supporting Industry, if the enterprise has a change in the address of the manufacturing and processing facility, or in the ownership or right to use the machinery and equipment at the manufacturing and processing (assembly) facility, it must notify the customs authority in writing within 5 working days from the date of the change. After receiving the enterprise's notification of change, or upon detecting signs indicating that the enterprise has changed information on the manufacturing and processing facility, machinery, or equipment but has not notified the customs authority, or on the basis of applying risk management, the customs authority shall inspect the manufacturing and processing (assembly) facility and the machinery and equipment at the manufacturing and processing (assembly) facility.

8. Dossier and procedures for applying the 0% preferential duty rate

a) The dossier comprises:

a.1) For enterprises manufacturing and processing (assembling) motor vehicle components and spare parts:

An official letter requesting the application of the 0% preferential duty rate under the Tax Incentive Program for the Motor Vehicle Supporting Industry according to Form No. 10a in Appendix II promulgated together with this Decree: 1 original;

An Investment Certificate or Investment Registration Certificate or Business Registration Certificate or Enterprise Registration Certificate (except where the enterprise has already submitted it when registering to participate in the Tax Incentive Program for the Motor Vehicle Supporting Industry): 1 certified copy;

A contract for the purchase and sale of motor vehicle supporting industry products with enterprises holding a Certificate of eligibility for motor vehicle manufacture and assembly issued by the Ministry of Industry and Trade: 1 original;

The manufacturing and processing (assembly) process of the motor vehicle supporting industry products (together with an explanatory note): 1 original;

A statement of the declarations and the amount of import duty paid on the raw materials, materials, and components for the manufacture and processing (assembly) of the motor vehicle supporting industry products registered to participate in the Tax Incentive Program for the Motor Vehicle Supporting Industry according to Form No. 10 in Appendix II promulgated together with this Decree: 1 original;

A report on the situation of the use of imported raw materials, materials, and components for the manufacture and processing (assembly) of the motor vehicle supporting industry products registered to participate in the Program according to Form No. 11 in Appendix II promulgated together with this Decree: 1 original;

A statement of the value-added tax invoices corresponding to the quantity of motor vehicle supporting industry products sold under the purchase and sale contract according to Form No. 12 in Appendix II promulgated together with this Decree: 1 original;

Accounting documents showing the quantity of imported raw materials, materials, and components used for the manufacture and processing (assembly) of the motor vehicle supporting industry products: 1 photocopy.

a.2) For motor vehicle manufacturing and assembling enterprises that themselves manufacture and process (assemble) motor vehicle components and spare parts:

An official letter requesting the application of the 0% preferential duty rate under the Tax Incentive Program for the Motor Vehicle Supporting Industry according to Form No. 10a in Appendix II promulgated together with this Decree: 1 original;

The manufacturing and processing (assembly) process of the motor vehicle supporting industry products (together with an explanatory note): 1 original;

A statement of the declarations and the amount of import duty paid on the raw materials, materials, and components for the manufacture and processing (assembly) of the motor vehicle supporting industry products according to Form No. 10 in Appendix II promulgated together with this Decree: 1 original;

A report on the situation of the use of imported raw materials, materials, and components for the manufacture and processing (assembly) of the motor vehicle supporting industry products according to Form No. 11 in Appendix II promulgated together with this Decree: 1 original;

A statement of the value-added tax invoices corresponding to the quantity of motor vehicle supporting industry products sold to motor vehicle manufacturing and assembling enterprises holding a Certificate of eligibility for motor vehicle manufacture and assembly issued by the Ministry of Industry and Trade according to Form No. 12 in Appendix II promulgated together with this Decree (if any): 1 original;

A report on the situation of the use of the motor vehicle supporting industry products manufactured and processed (assembled) according to Form No. 13 in Appendix II promulgated together with this Decree: 1 original;

The Certificate of eligibility for motor vehicle manufacture and assembly issued by the Ministry of Industry and Trade (except where it has already been submitted when registering to participate in the Program): 1 certified copy;

Accounting documents showing the quantity of imported raw materials, materials, and components used for the manufacture and processing (assembly) of the motor vehicle supporting industry products: 1 photocopy.

b) Procedures for applying the 0% duty rate:

b.1) No later than 60 days from June 30 or December 31 each year, the enterprise shall send the dossier specified in Point a of this Clause to the customs authority that received the dossier for registering to participate in the Tax Incentive Program for the Motor Vehicle Supporting Industry. In case the dossier is submitted beyond the 60-day time limit, the customs authority shall receive the dossier, carry out inspection, and impose administrative penalties as prescribed by the Government.

b.2) The customs authority shall, based on the dossier requesting the application of the 0% duty rate and the results of the inspection of the enterprise's manufacturing and processing (assembly) facility, machinery, and equipment, inspect the subjects and conditions for application of the Tax Incentive Program for the Motor Vehicle Supporting Industry, and handle it as follows:

In case the dossier is not complete as prescribed, the customs authority shall issue a written request for the enterprise to submit additional documents. In case of doubt about the accuracy of the dossier, the customs authority shall carry out inspection at the customs authority's office or at the taxpayer's office in accordance with the law on tax administration.

In case the conditions for application of the Tax Incentive Program for the Motor Vehicle Supporting Industry are fully satisfied, the customs authority shall issue a Refund Decision and prepare a Refund Order for the overpaid tax to the enterprise in accordance with the Law on Tax Administration and its guiding documents. Based on the Order for refund of the state budget revenue of the customs authority, the State Treasury shall refund the overpaid import duty to the enterprise. The source for the refund of overpaid tax is taken from the central budget revenue on export duty and import duty.

In case the enterprise does not fully satisfy the conditions for application of the Tax Incentive Program for the Motor Vehicle Supporting Industry, the customs authority shall issue a written reply to inform the enterprise.

Article 10. The List of goods and the import duty rates for commodities subject to tariff quotas

1. The List of goods subject to tariff quotas comprises the commodities under the commodity groups specified in Appendix IV promulgated together with this Decree, and the commodities subject to tariff quotas specified in the international treaties to which the Socialist Republic of Vietnam is a member (international treaties).

2. The annual import tariff quota quantities shall comply with the regulations of the Ministry of Industry and Trade.

3. The import duty rate applicable to the quantity of goods imported within the tariff quota:

Goods whose imported quantity is within the annual import tariff quota quantity as prescribed by the Ministry of Industry and Trade shall be subject to the preferential import duty rate specified in Section I of Appendix II promulgated together with this Decree, or to the special preferential import duty rate under the Special Preferential Import Tariffs (if they satisfy the conditions for eligibility for the special preferential import duty rate) promulgated together with the Government's Decrees promulgating the Special Preferential Import Tariffs for the implementation of international treaties.

In case the Government's Decrees promulgating the Special Preferential Tariffs for the implementation of international treaties provide for conditions for application of the special preferential import duty rate within the tariff quota, the provisions of those Decrees shall apply.

4. The import duty rate applicable to the quantity of goods imported outside the tariff quota:

a) Goods referred to in Clause 1 of this Article whose imported quantity is outside the annual import quota quantity as prescribed by the Ministry of Industry and Trade shall be subject to the out-of-quota import duty rate specified in Appendix IV promulgated together with this Decree.

b) In case the international treaties provide for the import quota quantity and/or the out-of-quota import duty rate for the goods referred to in Clause 1 of this Article, the provisions of the Government's Decrees promulgating the Special Preferential Import Tariffs for the implementation of those international treaties shall apply. In case the out-of-quota duty rate under an international treaty is higher than the out-of-quota import duty rate specified in Appendix IV promulgated together with this Decree, the out-of-quota import duty rate specified in Appendix IV promulgated together with this Decree shall apply.

Article 11. Responsibility for organizing implementation

1. The Ministry of Finance shall carry out inspection, supervision, price consultation, and combating of trade fraud as prescribed for commodities with high import duty rates and commodities with high risks regarding the dutiable value.

2. The Ministry of Planning and Investment shall promulgate the List of goods already domestically produced; and review, update, and amend the List to ensure conformity with reality.

3. The Ministry of Industry and Trade shall be responsible for:

a) Issuing the Certificate of eligibility for motor vehicle manufacture and assembly in accordance with the Government's regulations on the conditions for the manufacture, assembly, and import of motor vehicles and the trading of motor vehicle warranty and maintenance services;

b) Promulgating regulations internalizing the provisions on tariff quota quantities in the international treaties to which Vietnam is a member.

4. The competent state authorities shall issue Investment Certificates, Investment Registration Certificates or investment policy decisions, Enterprise Registration Certificates, and Business Registration Certificates to enterprises in strict accordance with the law.

5. The relevant ministries, sectors, and localities shall, according to their functions and tasks, carry out inspection and control to ensure that the policy is implemented in accordance with regulations and to combat trade fraud.

6. 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.

Article 12. Effect

1. This Decree takes effect from July 15, 2023.

2. This Decree replaces the following Decrees of the Government: Decree No. 122/2016/ND-CP dated September 1, 2016, Decree No. 125/2017/ND-CP dated November 16, 2017, Decree No. 57/2020/ND-CP dated May 25, 2020, Decree No. 101/2021/ND-CP dated November 15, 2021, and Decree No. 51/2022/ND-CP dated August 8, 2022.

3. From October 1, 2022 to the effective date of this Decree, the condition on the minimum degree of disassembly of motor vehicle components under Point b of Clause 3.1 of Article 7a specified in Clause 3 of Article 2 and Point b.5 of Clause 3 of Section II of Chapter 98 of Decree No. 57/2020/ND-CP dated May 25, 2020 of the Government shall not be applied.

In case an enterprise has participated in the Tax Incentive Program but has not yet been refunded the import duty paid from October 1, 2022 to the effective date of this Decree, it shall be entitled to a refund for the imported motor vehicle components if it satisfies the conditions specified in the Tax Incentive Program, except that the condition on the minimum degree of disassembly of motor vehicle components is not required to be applied.

In case an enterprise imports CKD component sets and incomplete component sets of motor vehicles for manufacture and assembly, including enterprises importing under authorization, enterprises importing under a mandate with an entrustment contract, and trading-importing enterprises with a purchase and sale contract with a motor vehicle manufacturing and assembling enterprise, during the period from October 1, 2022 to the effective date of this Decree, and opts for the method of calculating tax according to each motor vehicle component and spare part or according to group 98.21, it must satisfy the conditions specified in Decree No. 57/2020/ND-CP dated May 25, 2020 of the Government, except that the condition on the minimum degree of disassembly of motor vehicle components is not required to be applied.

4. The preferential import duty rate for imported motor vehicle components under group 98.49 specified in Article 8 of this Decree shall be applied until December 31, 2027. Enterprises that have registered to participate in the Tax Incentive Program before the effective date of this Decree must re-register with the customs authority in accordance with this Decree.

In case, after registering to participate in the Tax Incentive Program, an enterprise changes or supplements the vehicle group, vehicle model, or number of vehicle models registered to participate in the Tax Incentive Program, the enterprise must re-register with the customs authority.

5. The preferential import duty rate for raw materials, materials, and components for the manufacture and processing (assembly) of supporting industry products prioritized for development for the motor vehicle manufacturing and assembly industry specified in Article 9 of this Decree shall be applied until December 31, 2024. An enterprise that has registered to participate in the Tax Incentive Program for the Motor Vehicle Supporting Industry before the effective date of this Decree is not required to re-register for the Tax Incentive Program for the Motor Vehicle Supporting Industry and shall enjoy the incentives as prescribed in this Decree.