Decree No. 122/2016/ND-CP on Export Tax Rates, Preferential Import Tax Rates, List of Goods and Absolute Tariffs, Mixed Tariffs, and Import Tariffs outside Quota

DECREE

EXPORT DUTY SCHEDULE, GRANTED IMPORT DUTY SCHEDULE, LIST OF GOODS AND AMOUNTS OF ABSOLUTE DUTIES, MIXED DUTIES, AND IMPORT DUTIES OUTSIDE QUOTA DUTIES

Pursuant to the Law on Government Organization dated June 19, 2015;

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

Pursuant to Resolution No. 71/2006/QH11 dated November 29, 2006 of the National Assembly approving the Protocol on Accession to the Agreement Establishing the World Trade Organization of the Socialist Republic of Vietnam; Based on the proposal of the Minister of Finance;

The Government issues this Decree on the Export Duty Schedule, the Granted Import Duty Schedule, the List of Goods and Amounts of Absolute Duties, Mixed Duties, and Import Duties Outside Quota Duties.

Article 1. Scope of Regulation

This Decree promulgates the Export Duty Schedule, the Granted Import Duty Schedule, the List of Goods and Amounts of Absolute Duties, Mixed Duties, and Import Duties Outside Quota Duties.

Article 2. Applicability

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

2. Customs authorities, customs officers.

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

Article 3. Issuing the Export Duty Schedule, the Import Duty Schedule according to the list of taxable goods, the List of Goods and Amounts of Absolute Duties, Mixed Duties, and Import Duties Outside Quota Duties attached to this Decree:

3. Appendix III - List of Goods and Absolute Tax Rates, Mixed Tax Rates for passenger cars with up to 15 seats (including driver), used.

2. Appendix II - Preferential Import Tariff Schedule according to the List of Goods Subject to Tax.

4. Appendix IV - List of Goods and Import Tariff Rates outside Quota Tariffs for goods subject to Quota Tariffs."

4. Appendix IV - List of Goods and Rates of Import Duties Outside Quota Duties for goods subject to Quota Duties.

1. The Export Tariff according to the list of taxable goods prescribed in Appendix I issued together with this Decree includes commodity code, description of goods, export tax rate specified for each group of goods, taxable export goods. For goods belonging to Group 211 in the Export Tariff when handling customs procedures, the declarant declares the name and commodity code of that good according to the 8-digit commodity code corresponding to the 8-digit commodity code of that good in the Import Tariff Preferential and records the export tax rate at 5%. Export goods belonging to Group 211 must meet both of the following conditions simultaneously:

1. The Export Duty Schedule according to the list of taxable goods specified in Appendix I attached to this Decree includes commodity codes, descriptions of goods, rates of export duties prescribed for each group of taxable goods, and taxable export goods.

2. For wood charcoal products under commodity code 4402.90.90, a rate of 5% export duty as stipulated in the Export Duty Schedule attached to this Decree must meet the following technical criteria:

3. Jewelry items and parts thereof made of gold (group 71.13), artistic articles and parts thereof made of gold (group 71.14), and other products made of gold (group 71.15) shall be subject to a 0% export duty rate if they satisfy the following conditions:

a) In addition to the general customs declaration documents for exported goods, there must be a Test Result Certificate determining the gold content below 95%, issued by a certified testing organization (one original copy for verification, one copy submitted to the customs authority).

b) In cases where jewelry items and parts thereof made of gold (group 71.13), artistic articles and parts thereof made of gold (group 71.14), and other products made of gold (group 71.15) are exported under the processing trade or export production scheme with all raw materials imported, when handling customs procedures, they shall comply with current regulations and do not need to present the Test Result Certificate determining the gold content. For exports under the export production scheme, enterprises must present the import permit for gold raw materials from the State Bank when handling customs procedures.

4. Fertilizer products belonging to groups 31.01, 31.02, 31.03, 31.04, 31.05 shall be subject to the following export duty rates:

a) Fertilizer products belonging to groups 31.01, 31.02, 31.03, 31.04, 31.05, where the combined value of natural resources, minerals, and energy costs account for 51% or more of the product cost, shall be subject to a 5% export duty rate.

b) Fertilizer products not falling within the scope described in point a of this clause shall be subject to the export duty rates prescribed for groups 31.01, 31.02, 31.03, 31.04, 31.05 in the Export Duty Schedule specified in Appendix I attached to this Decree.

Article 5. The Preferential Import Tariff Schedule according to the List of Taxable Goods

"Article 7b. The rate of the granted import tax for raw materials, components, spare parts for manufacturing, processing (assembly) priority supporting industrial products for the automobile manufacturing industry during the period from 2020 to 2024 (referred to as the Preferential Tax Program for Supporting Industrial Products for Automobiles)

1. Section I: Specifies the preferential import tariff rates applicable to 97 chapters according to the list of imported goods in Vietnam. The content includes the names of Parts, Chapters, Explanations of Parts, Explanations of Chapters; The tariff schedule includes descriptions of goods (name of commodity group and name of commodity), commodity code (eight digits), preferential import tariff rate specified for taxable goods.

2. Section II: Chapter 98 - Specifies commodity codes and preferential import tariff rates separately applicable to certain commodity groups and commodities.

- Explanation of the chapter: Goods named in Clause 1 Part I Section II Appendix II issued together with this Decree shall apply separate preferential import tariff rates in Chapter 98.

- Explanation of Chapter: Commodities listed in Clause 1, Part I, Section II, Appendix II issued together with this Decree shall apply separate preferential import tariff rates under Chapter 98.

+ Classification of commodity codes and application of separate preferential import tariff rates for CKD automobiles, chassis with engine and cab (cab chassis) are implemented in accordance with the provisions of Clause 2.1 Part I Section II Appendix II.

+ Classification of commodity codes and application of separate preferential import tariff rates for CKD automobiles, chassis already fitted with engines and equipped with cabs (automobiles with cabs) shall be carried out in accordance with the provisions of Clause 2.1, Part I, Section II, Appendix II;

+ Commodity groups: Kraft paper used for cement bags, bleached, belonging to subheading 98.07; Alloy steel containing elements Boron and/or Chromium and/or Titanium belonging to subheading 98.11; Leather fillers, skin protection supporting creams, scar reduction gels belonging to subheading 98.25; Nylon curtain fabrics 1680/D/2 and 1890 D/2 belonging to subheading 98.26; Copper wire with cross-sectional area not exceeding 6 mm but not more than 8 mm belonging to subheading 98.30; Raw Polypropylene pellets belonging to subheading 98.37; Non-alloy steel in bars and coils of uneven winding, hot-rolled belonging to subheading 98.39 shall apply separate preferential import tariff rates under Chapter 98 if they meet the specific standards and technical parameters stipulated in Clauses 2.2, 2.3, 2.4, 2.5, 2.6, 2.7, 2.8, Part I, Section II, Appendix II.

- Method of classification, conditions, procedures for applying separate preferential import tariff rates recorded in Chapter 98, report on inspection of the use of goods subject to separate preferential import tariff rates under Chapter 98: Shall be implemented in accordance with the provisions of Clause 3, Part I, Section II, Appendix II.

b) The list of commodity groups and commodities and separate preferential import tariff rates includes: Commodity codes of commodity groups and commodities under Chapter 98; description of goods (name of commodity group, commodity); corresponding commodity codes of those commodity groups and commodities at Section I of Appendix II (97 chapters according to the List of Vietnam's Import Tariff Schedule) and separate preferential import tariff rates applied under Chapter 98 shall be implemented in accordance with specific provisions in Part II, Section II, Appendix II.

c) Commodity groups and commodities named and subject to separate preferential import tariff rates under Chapter 98, if meeting the conditions for applying special preferential import tariff rates according to current regulations, may choose to apply special preferential import tariff rates stipulated in the Special Preferential Import Tariff Schedules or separate preferential import tariff rates stipulated in Chapter 98 of the Preferential Import Tariff Schedule.

d) When processing customs formalities, the declarant must declare the commodity code according to the "Corresponding commodity code at Section I of Appendix II" column stated in Chapter 98 and note the Chapter 98 commodity code beside it.

Example: For bleached kraft paper used for cement bags when imported, the declarant declares the commodity code as 4804.29.00 (9807.00.00), with a separate preferential import tariff rate of 3%.

3. Section III: Specifies preferential import tariff rates for certain goods implementing WTO commitments for the years 2017, 2018, and from 2019 onwards.

Article 6. Import tariff rates for preferential imported goods on machine tools and petrochemical products

1. Machine tools belonging to groups from 84.54 to 84.63 shall apply preferential import tariff rates as follows:

a) Machine tools that have not yet been produced domestically shall apply a preferential import tariff rate of 0%. The machine tools referred to in this point are those not included in the list of machinery and equipment already produced in Vietnam as specified by the Ministry of Planning and Investment.

b) Machine tools not falling under the case mentioned in point a of this clause shall apply preferential import tariff rates prescribed for groups from 84.54 to 84.63 in the Import Tariff Table set out in Section I of Appendix II issued together with this Decree.

2. Petrochemical products including Benzene under item 2707.10.00 and item 2902.20.00; Xylene under item 2707.30.00, P-Xylene under item 2902.43.00 and Polypropylene under items 3902.10.30 and 3902.10.90 (excluding raw Polypropylene under group 98.37) shall apply preferential import tariff rates according to the following schedule:

a) From September 1, 2016 to December 31, 2016: Apply a preferential import tariff rate of 1%.

b) From January 1, 2017 onwards: Apply a preferential import tariff rate of 3% as stipulated in Section I of Appendix II issued together with this Decree.

Article 7. Import tariffs on second-hand passenger cars

1. Passenger cars carrying up to nine seats (including the driver) with engine displacement below 1,500cc under group 87.03 and passenger cars carrying from ten to fifteen seats (including the driver) under group 87.02 shall apply the absolute tax rate as specified in Appendix III issued together with this Decree.

2. Passenger cars carrying up to nine seats (including the driver) with engine displacement of 1,500cc or more under group 87.03 shall apply the mixed tax rate as specified in Appendix III issued together with this Decree.

3. Passenger cars carrying sixteen seats or more (including the driver) under group 87.02 and cargo vehicles with total weight capacity not exceeding five tons under group 87.04 (except refrigerated trucks, waste collection trucks with compaction units, tanker trucks, armored trucks for transporting valuable goods; cement mixer trucks and slurry trucks with detachable tanks) shall apply a preferential import tariff rate of 150%.

4. Other types of passenger cars under groups 87.02, 87.03, 87.04 shall apply a tariff rate equal to 1.5 times the preferential import tariff rate of new passenger cars of the same type under the same group as specified in Section I of Appendix II issued together with this Decree.

Article 8. List of goods and preferential import tariff rates outside quota for goods subject to quota import tariffs

1. Goods subject to quota import tariffs include certain items under groups 04.07; 17.01; 24.01; 25.01 as specified in Appendix IV issued together with this Decree.

2. Preferential import tariff rates outside quota as specified in Appendix IV issued together with this Decree.

3. The annual import quota volume of the goods mentioned in Clause 1 of this Article shall be implemented in accordance with the regulations of the Ministry of Industry and Trade.

4. Goods mentioned in Clause 1 of this Article with import quantities exceeding the annual import quota volume as stipulated by the Ministry of Industry and Trade shall apply the preferential import tariff rate outside quota as specified in Clause 2 of this Article.

5. In cases where Free Trade Agreements signed by Vietnam commit to preferential import tariff rates outside quota (commitment tariff rates) for goods specified in Clause 1 of this Article and the commitment tariff rates are lower than the preferential import tariff rates outside quota as specified in Appendix IV issued together with this Decree, then the commitment tariff rates (if the conditions for enjoying the commitment tariff rates are met) as stipulated in the Agreement shall be applied. If the commitment tariff rate under the Agreement is higher than the preferential import tariff rate outside quota as specified in Appendix IV, the preferential import tariff rate outside quota as specified in Appendix IV shall be applied.

6. Goods mentioned in Clause 1 of this Article with import quantities within the annual import quota volume as stipulated by the Ministry of Industry and Trade shall apply the preferential import tariff rate as specified in Section I of Appendix II issued together with this Decree or apply special preferential import tariff rates according to the Special Preferential Import Tariff Tables (if the conditions for enjoying special preferential import tariff rates are met) issued together with Government Decrees to implement Free Trade Agreements.

Article 9. Implementation Organization

1. This Decree takes effect from September 1, 2016.

2. This Decree abolishes:

a) Decision No. 36/2011/QD-TTg dated June 29, 2011 of the Prime Minister on the determination of import tariffs for second-hand passenger cars carrying up to fifteen seats (including the driver);

b) Decision No. 24/2013/QD-TTg dated May 3, 2013 of the Prime Minister amending and supplementing Clause 1, Article 1 of Decision No. 36/2011/QD-TTg dated June 29, 2011 on the determination of import tariffs for second-hand passenger cars carrying up to fifteen seats (including the driver);

c) Circular No. 111/2012/TT-BTC dated July 4, 2012 of the Minister of Finance promulgating the list of goods and import tariff rates for applying quota import tariffs;

d) Circular No. 80/2014/TT-BTC dated June 23, 2014 of the Minister of Finance amending and supplementing Circular No. 111/2012/TT-BTC dated July 4, 2012 of the Ministry of Finance promulgating the list of goods and import tariff rates for applying quota import tariffs;

đ) Circular No. 182/2015/TT-BTC dated November 16, 2015 of the Minister of Finance promulgating Export Tariffs and Preferential Import Tariffs according to the list of taxable goods;

e) Circular No. 05/2016/TT-BTC dated January 13, 2016 of the Minister of Finance amending preferential import tariff rates for some environmental goods in APEC under groups 84.19 and 84.21 in the Preferential Import Tariff Table.

g) Circular No. 16/2016/TT-BTC dated January 21, 2016, issued by the Minister of Finance, amending the preferential import tariff rates for certain goods under subheadings 27.07, 29.02, and 39.02 in the Preferential Import Tariff Schedule;

h) Circular No. 25/2016/TT-BTC dated February 16, 2016, issued by the Minister of Finance, amending the preferential import tariff rate for diammonium hydrogen phosphate (diammonium phosphate) under heading 3105.30.00 in the Preferential Import Tariff Schedule;

i) Circular No. 31/2016/TT-BTC dated February 23, 2016, issued by the Minister of Finance, supplementing the Preferential Import Tariff Schedule with hexane solvent used in soybean oil and vegetable oil production, rice bran extract, and rice bran oil under Chapter 98;

k) Circular No. 48/2016/TT-BTC dated March 17, 2016, issued by the Minister of Finance, amending the preferential import tariff rates for certain petroleum products under subheading 27.10 in the Preferential Import Tariff Schedule;

l) Circular No. 51/2016/TT-BTC dated March 18, 2016, issued by the Minister of Finance, amending and supplementing the list of groups of goods and preferential import tariff rates for iron or steel for tire production under Chapter 98 of the Preferential Import Tariff Schedule issued together with Circular No. 182/2015/TT-BTC dated November 16, 2015, issued by the Minister of Finance;

m) Circular No. 73/2016/TT-BTC dated May 20, 2016, issued by the Minister of Finance, amending and supplementing the export tariff rate for wood charcoal under subheading 44.02 in the Export Tariff Schedule issued together with Circular No. 182/2015/TT-BTC dated November 16, 2015, issued by the Minister of Finance;

n) Circular No. 98/2016/TT-BTC dated June 29, 2016, issued by the Minister of Finance, supplementing the list of groups of goods and preferential import tariff rates for Artemia eggs under Chapter 98 of the Preferential Import Tariff Schedule issued together with Circular No. 182/2015/TT-BTC dated November 16, 2015, issued by the Minister of Finance.

3. The Ministry of Industry and Trade shall take the lead and coordinate with relevant ministries and sectors to announce specific details and regulations on the management methods for imports of each item subject to quota tariffs.

2. The Ministers of National Defense, Public Security, and other ministers and sector heads shall be responsible for providing professional guidance and technical support to implement clinical pharmacy activities for medical examination and treatment facilities under their management authority.