Decree No. 101/2021/ND-CP Amending and supplementing certain articles of Decree No. 122/2016/ND-CP dated September 1, 2016 of the Government and Decree No. 57/2020/ND-CP dated May 25, 2020 of the Government amending and supplementing certain articles of Decree No. 122/2016/ND-CP dated September 1, 2016 on Export Tariff, Preferential Import Tariff, List of Goods and Rates of Specific Duties, Compound Duties, and Import Duties outside Quota and Decree No. 125/2017/ND-CP dated November 16, 2017 amending and supplementing certain articles of Decree No. 122/2016/ND-CP.

DECREE

AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF DECREE NO. 122/2016/NĐ-CP OF SEPTEMBER 1, 2016 ISSUED BY THE GOVERNMENT AND DECREE NO. 57/2020/NĐ-CP OF MAY 25, 2020 ISSUED BY THE GOVERNMENT AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF DECREE NO. 122/2016/NĐ-CP OF SEPTEMBER 1, 2016 ISSUED BY THE GOVERNMENT ON THE EXPORT TAX SCHEDULE, THE IMPORT DUTY REDUCTION SCHEDULE, THE LIST OF GOODS AND THE LEVELS OF ABSOLUTE DUTIES, MIXED DUTIES, AND IMPORT DUTIES OUTSIDE QUOTA DUTIES AND DECREE NO. 125/2017/NĐ-CP OF NOVEMBER 16, 2017 AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF DECREE NO. 122/2016/NĐ-CP

September 2016 of the Government and Decree No. 57/2020/NĐ-CP dated September 25

BASED ON RESOLUTION NO. 71/2006/QH11 OF NOVEMBER 29, 2006 OF THE NATIONAL ASSEMBLY APPROVING THE ACCESSION INSTRUMENT TO THE AGREEMENT ESTABLISHING THE WORLD TRADE ORGANIZATION

OF THE SOCIALIST REPUBLIC OF VIETNAM;

on the Export Tariff, the Import Tariff with Preferential Rates, and the List of Goods

122/2016/NĐ-CP

SEPTEMBER 1, 2016 OF THE GOVERNMENT AND DECREE NO.

57/2020/NĐ-CP

_____________

On the basis of Law on Government Organization dated June 19, 2015;  November 22, 2019; November 22, 2019;

On the basis of Law on Export Duties and Import Duties April 6, 2016;

On the basis of Law on Personal Income Tax dated June 13, 2019;

On the basis of Customs Law dated June 23, 2014;

MAY 25, 2020 OF THE GOVERNMENT AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF DECREE NO. SEPTEMBER 1, 2016 OF THE GOVERNMENT ON THE EXPORT TAX SCHEDULE, THE IMPORT DUTY REDUCTION SCHEDULE, THE LIST OF GOODS AND THE LEVELS OF ABSOLUTE DUTIES, MIXED DUTIES, AND IMPORT DUTIES OUTSIDE QUOTA DUTIES AND DECREE NO. 125/2017/NĐ-CP

At the proposal of the Minister of Finance;

THE GOVERNMENT ISSUES THE DECREE AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF DECREE NO. NOVEMBER 16, 2017 AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF DECREE NO. September 1, 2016 of the Government and Decree No. ARTICLE 1. AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF DECREE NO. 57/2020/NĐ-CP 1. CLAUSE 1, ARTICLE 2 OF DECREE NO. 57/2020/NĐ-CP IS AMENDED AND COMPLEMENTED AS FOLLOWS: NOVEMBER 16, 2017 AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF DECREE NO. a) ADJUST THE RATE OF EXPORT DUTY AND THE RATE OF IMPORT DUTY REDUCTION FOR CERTAIN GROUPS OF GOODS AS SPECIFIED IN ANNEX I - EXPORT TAX SCHEDULE ACCORDING TO THE LIST OF GOODS SUBJECT TO TAX AND ANNEX II - IMPORT DUTY REDUCTION SCHEDULE ACCORDING TO THE LIST OF GOODS SUBJECT TO TAX AS PROVIDED FOR IN CLAUSE 1, ARTICLE 2 OF DECREE NO. 57/2020/NĐ-CP INTO NEW RATES OF EXPORT DUTY AND RATES OF IMPORT DUTY REDUCTION AS SPECIFIED IN ANNEX I AND ANNEX II ATTACHED HERETO. b) ADD CODE 9805.00.00 TO THE LIST OF ITEMS FROM 98.01 TO 98.48 AND ITEMS 98.50, 98.51, 98.52 AS PROVIDED FOR IN POINT 1, SUB-CLAUSE II, SECTION II, ANNEX II OF DECREE NO. 57/2020/NĐ-CP AS FOLLOWS: CODE CORRESPONDING AT SECTION I, ANNEX II NOVEMBER 16, 2017 AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF DECREE NO. .

- FRUIT AND SEEDS WITH OIL FOR SEED PURPOSES

c) ADD CODE 9849.46.00 TO THE LIST OF ITEM 98.49 AS PROVIDED FOR IN POINT 2, SUB-CLAUSE II, SECTION II, ANNEX II OF DECREE NO. 57/2020/NĐ-CP AS FOLLOWS:

- ENGINE ECU USED FOR MOTOR VEHICLES

2. AMENDING AND SUPPLEMENTING CLAUSE 2, ARTICLE 2 OF DECREE NO. 57/2020/NĐ-CP AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF DECREE NO. 125/2017/NĐ-CP AS FOLLOWS:

a) GOODS EXPORTED BELONGING TO THE GROUP WITH SERIAL NUMBER 211 IN THE EXPORT TAX SCHEDULE THAT SIMULTANEOUSLY MEET THE FOLLOWING TWO CONDITIONS:

2. Amend and supplement Clause 2 of Article 2 of Decree No. 57/2020/NĐ-CP on amending and supplementing certain provisions of Decree No. 125/2017/NĐ-CP as follows:

"Article 4. The Export Tariff according to the List of Taxable Commodities

1. The Export Tariff according to the List of Taxable Commodities prescribed in Appendix I issued together with this Decree includes the commodity code, description of goods, export tax rate specified for each group of taxable commodities, and taxable export commodities. In case exported goods are not listed in the Export Tariff, the declarant shall declare the commodity code of the exported goods corresponding to the 8-digit commodity code of such goods under the Import Tariff with Preferential Rates prescribed in Section I of Appendix II issued together with this Decree and shall not declare the tax rate on the export goods declaration form.

a) Export commodities belonging to the group with STT 211 in the Export Tariff must simultaneously meet the following two conditions:

Condition 1: Goods, materials, semi-finished products (referred to collectively as goods) do not belong to any of the groups with STT from 01 to STT 210 in the Export Tax Tariff Table.

Condition 2: They are directly processed from main raw materials which are natural resources and minerals, where the total value of natural resources and minerals plus energy costs account for 51% or more of the production cost of the product. The determination of the total value of natural resources and minerals plus energy costs accounting for 51% or more of the production cost of the product shall be carried out in accordance with the provisions of Government Decree No. 100/2016/NĐ-CP dated July 1, 2016 detailing and guiding the implementation of certain articles of the Law Amending and Supplementing Certain Provisions of the Value Added Tax Law, Special Consumption Tax Law, and Tax Administration Law, and Government Decree No. 146/2017/NĐ-CP dated December 15, 2017 amending and supplementing certain provisions of Government Decree No. 100/2016/NĐ-CP.

Exported goods falling under the exclusion cases provided for in Clause 1 Article 1 of Government Decree No. 146/2017/NĐ-CP dated December 15, 2017 do not belong to the group with STT 211 of the Export Tax Tariff Table issued together with this Decree.

b) The commodity code and export tax rate for goods belonging to the group with serial number 211

For goods detailed with an 8-digit commodity code and description in the export tariff table groups 25.23, 27.06, 27.07, 27.08, 68.01, 68.02, 68.03 at STT 211, the declarant shall declare the corresponding export tax rate according to the 8-digit commodity code specified at STT 211. In case the export tax rate is not declared according to the provision at group STT 211, the taxpayer must submit a declaration form showing the proportion of the value of natural resources, minerals, and energy costs in the production cost of exported goods according to Form No. 14 issued together with this Decree at the time of customs procedures to prove that the declared goods have a total value of natural resources, minerals, and energy costs below 51% of the production cost. In case the taxpayer is a trading enterprise purchasing goods from a manufacturing enterprise or another trading enterprise for export but does not declare the export tax rate according to the provision at group STT 211, the taxpayer shall base on the information provided by the manufacturing enterprise to declare according to the aforementioned Form No. 14 to prove that the proportion of natural resources, minerals, and energy costs is below 51% of the production cost. The taxpayer shall bear legal responsibility for the accuracy of the declaration.

For goods belonging to the group with STT 211 but not specifically detailed with an 8-digit commodity code and meeting the conditions stipulated in point a Clause 1 of this Article, the declarant shall declare the exported goods according to the 8-digit commodity code in the Preferential Import Tariff Table prescribed in Section I Appendix II issued together with this Decree and declare the export tax rate as 5%".

3. Amend point a Clause 3.3 and point c.1 Clause 3.3 and Clause 4 of Article 7a prescribed in Clause 3 Article 2 of Government Decree No. 57/2020/NĐ-CP as follows:

“3.3. For automobile manufacturing and assembly enterprises using gasoline and diesel fuel.

a) Emission standards condition:

Manufacturing and assembling automobiles that meet emission standard level 4, level 5 during the period from 2018 to the end of 2021; level 5 or higher during the period starting from 2022 onwards, and automobiles with emission standard level 4 manufactured and assembled before January 1, 2022 and still valid according to the provisions of Government Decree No. 116/2017/NĐ-CP dated October 17, 2017 and subsequent amendments and supplements (if any).

c.1) In case the enterprise meets the minimum total production volume for each vehicle group and the minimum individual production volume for at least one model of vehicle prescribed for each preferential tax assessment period in point b.12.1 Clause 3.2 Chapter 98 Appendix II issued together with this Decree and complies with the provisions of Clause 2, Clause 3.1, point a, b Clause 3.3, Clause 4, Clause 5, Clause 6, Clause 7 of this Article, then the enterprise shall apply a 0% tax rate on all imported parts used for manufacturing and assembling the vehicle group that the enterprise has met the production volume requirement according to regulations for release during the preferential tax assessment period.

In case the enterprise manufactures and assembles both gasoline and diesel vehicles and electric vehicles, fuel cell vehicles, hybrid vehicles, and vehicles running entirely on biofuel and compressed natural gas, when determining the minimum total production volume of gasoline and diesel vehicles, the enterprise may include the production volume of electric vehicles, fuel cell vehicles, hybrid vehicles, vehicles running entirely on biofuel, and compressed natural gas vehicles produced and assembled during the preferential tax assessment period into the minimum total production volume of the same group of gasoline and diesel vehicles when assessing the preferential tax.

In case the first preferential tax assessment period of the automobile manufacturing and assembly enterprise does not have enough months within the assessment period, if the enterprise achieves a real production volume of vehicles in the group equal to the average monthly production volume of the minimum total production volume multiplied by the duration (number of months) participating in the preferential tax program of the assessment period, and achieves a real production volume of the registered model equal to the average monthly production volume of the minimum individual production volume multiplied by the number of months participating in the preferential tax program of the assessment period, while also meeting the minimum total production volume and minimum individual production volume requirements for the next assessment period, then the auto parts used for manufacturing and assembling vehicles in the first preferential tax assessment period can be subject to a 0% tax rate if the enterprise meets the conditions stipulated in Clause 2, Clause 3.1, point a, b Clause 3.3, Clause 4, Clause 5, Clause 6, Clause 7 of this Article. In case the participation period of the first month of the preferential tax program is 15 days or more, it will be counted as one full month. If the number of days participating in the program of the first month is less than 15 days, that month will not be counted."

4. Preferential tax assessment period

Enterprises may choose a 6-month or 12-month preferential tax assessment period as follows:

a) The tax benefit review period of six months runs from January 1 to June 30 or from July 1 to December 31 each year.

In the case where a business chooses the six-month tax benefit review period, if it has been processed for excess tax refunds on the number of parts used to produce and assemble automobiles that were not in compliance with the production volume conditions stipulated in the Tax Preference Program during the first six months of the year and the last six months of the year, but the total annual production volume meets the production volume conditions for the twelve-month tax benefit review period as prescribed by the Tax Preference Program, then the business will still be eligible for tax benefits for the last six months of the year, while also being processed for excess tax refunds on the parts used to produce and assemble automobiles during the period if they comply with the provisions of this Article, Clauses 2, 3, 5, 6, and 7.

b) The tax benefit review period of twelve months runs from January 1 to December 31 each year.

4. Amend and supplement Clause 2.5 and Point b.12 of Clause 3.2, Section I, Chapter 98, Appendix II of the Tariff Schedule of Preferential Import Duties issued together with Decree No. 57/2020/NĐ-CP as follows:

“2.5. Products such as fillers for leather; skin function support creams; scar reduction gels shall be classified under Group 98.25 if they have an Import Permit, Registration Certificate for Circulation, or Notification of Receipt of Standard Declaration Application in accordance with the regulations of the Ministry of Health.

3.2. Conditions and procedures for applying the preferential import duty rate specified in Chapter 98:

b) Conditions and procedures for applying the preferential import duty rate and reporting, inspecting the importation and use of goods belonging to Groups 98.17 to 98.23 and Groups 98.34, 98.40, 98.42, 98.44, 98.49, 98.51:

b.12) Production volume of vehicles produced and assembled under the Tax Preference Program for automobile parts belonging to Group 98.49

b.12.1) Gasoline and diesel-powered passenger cars:

Unit of measurement: Units

During the tax benefit review period, if a model of vehicle produced and assembled by a business meets both the Tier 4 emission standard according to the emission standards set out in Point a, Clause 3.3, Article 7a of this Decree and the Tier 5 emission standard, the business may count the production volume of both the Tier 4 and Tier 5 compliant vehicles towards determining the production volume condition for that model.

b.12.2) Electric vehicles; fuel cell vehicles; hybrid vehicles; completely biofuel vehicles; natural gas vehicles.

Unit of measurement: Units

5. Replace Model No. 05, Model No. 06a, and add Model No. 14 in Section I, Chapter 98, Appendix II issued together with Decree No. 57/2020/NĐ-CP.

Article 2. Effective Date

1. This Decree takes effect from December 30, 2021. The export tariff rates for stone products under Chapter 25 and Chapter 68; and for plywood under Group 25.23 shall be implemented according to the schedule set forth in Appendix I issued together with this Decree. The preferential import tariff rates for pork products shall be implemented according to the schedule set forth in Appendix II issued together with this Decree.

2. The preferential import tariff rate for automobile parts imported under Group 98.49 as stipulated in Article 7a of Decree No. 57/2020/NĐ-CP, amended and supplemented by this Decree, shall apply until December 31, 2027. Businesses that have registered to participate in the Tax Preference Program before the effective date of this Decree do not need to re-register for the Tax Preference Program and can enjoy the benefits as prescribed in this Decree. If there are changes or additions to the vehicle categories, models, or quantities of models already registered to participate in the Tax Preference Program, the business must re-register with the customs authority.

3. Repeal Clause 3 of Article 4 of Decree No. 122/2016/NĐ-CP.