Decree No. 129/2022/NĐ-CP on the Preferential Import Tax Tariff for Special Treatment of Vietnam to Implement the Regional Comprehensive Economic Partnership Agreement Phase 2022-2027

DECREE

Tariff Schedule for Special Preferential Import Tax Rates of Vietnam

to implement the Comprehensive and Progressive Agreement for Trans-Pacific Partnership Phase 2022-2027

Area period 2022 - 2027

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing Certain Provisions of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

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

Pursuant to the Customs Law dated June 23, 2014;

Pursuant to the ASEAN Framework Agreement on Facilitation of Intra-Regional Land Transport signed on December 10, 2009;

To implement the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (RCEP) which became effective from January 1, 2022;

At the proposal of the Minister of Finance;

The Government issues this Decree on the Special Preferential Import Tariff Schedule of Vietnam to implement the Comprehensive and Progressive Agreement for Trans-Pacific Partnership Phase 2022-2027.

Article 1. Scope of Regulation

This Decree stipulates the special preferential import tariff rates of Vietnam to implement the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (RCEP) Phase 2022-2027 and the conditions for enjoying such special preferential import tariff rates under this Agreement.

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 involved in export and import goods have rights and obligations related thereto.

Article 3. Special Preferential Import Tariff Schedule

1. Issuing with this Decree the Special Preferential Import Tariff Schedules of Vietnam to implement the Comprehensive and Progressive Agreement for Trans-Pacific Partnership Phase 2022-2027 (the special preferential import tariff rates referred to hereinafter as RCEP rates), including:

Appendix A: Special Preferential Import Tariff Schedule for ASEAN countries as provided for in Clause 2, Article 4 and Article 5 of this Decree;

Appendix B: Special Preferential Import Tariff Schedule for Australia;

Appendix C: Special Preferential Import Tariff Schedule for China;

Appendix D: Special Preferential Import Tariff Schedule for Japan;

Appendix E: Special Preferential Import Tariff Schedule for South Korea;

Appendix F: Special Preferential Import Tariff Schedule for New Zealand.

2. The columns "Commodity Code" and "Commodity Description" in the Appendices issued with this Decree are based on the Vietnam Export and Import Goods Classification and detailed according to the 8-digit or 10-digit coding system.

In case the Vietnam Export and Import Goods Classification is amended or supplemented, the declarant shall declare the commodity description and code according to the amended or supplemented Vietnam Export and Import Goods Classification and apply the tariff rate of the amended or supplemented commodity code as specified in the Special Preferential Import Tariff Schedules issued with this Decree.

3. Column "RCEP Rate (%)": The tariff rates applicable for different periods include:

c) 2024: From January 1, 2024 to December 31, 2024;

d) 2025: From January 1, 2025 to December 31, 2025;

đ) 2026: From January 1, 2026 to December 31, 2026;

e) 2027: From January 1, 2027 to December 31, 2027.

4. Symbol "*": Imported goods not entitled to the RCEP rate at the corresponding time.

5. For imported goods subject to quota tariffs, including certain items under groups 04.07, 17.01, 24.01, 25.01, the special preferential import tariff within the quota is the tariff rate specified in the Special Preferential Import Tariff Schedules issued with this Decree; the list and annual quota volume for imported goods are regulated by the Ministry of Industry and Trade, and the tariff rate outside the quota is applied according to the Export Tariff Schedule, the Preferential Import Tariff Schedule, the List of Goods and Absolute Tariffs, Mixed Tariffs, and Import Tariffs Outside Quotas of the Government at the time of importation.

Article 4. Conditions for applying the Special Preferential Tariff Rate

Imported goods subject to the RCEP rate must meet the following conditions:

1. They must be listed in the Special Preferential Import Tariff Schedule issued together with this Decree.

2. Imported from member countries of the RCEP Agreement, including the following countries and territories:

a) Brunei Darussalam;

b) Kingdom of Cambodia;

c) Republic of Indonesia;

d) Lao People's Democratic Republic;

đ) Malaysia;

e) Singapore;

g) Thailand;

h) Australia;

i) People's Republic of China (China);

k) Republic of Korea (South Korea);

1) Japan;

3. Complying with the rules of origin (including direct shipment requirements) and having certificates of origin as prescribed by the RCEP Agreement and current laws.

Article 5. Goods from Vietnam's Duty-Free Zones

Imported goods from the Vietnam’s duty-free zone into the domestic market must comply with the conditions stipulated in Clause 1 and Clause 3, Article 4 of this Decree to be eligible for the special preferential import tariff rate under the RCEP Agreement.

Article 6. Special Preferential Import Tax Rate

1. Goods imported from a member country of the RCEP Agreement (including goods from Vietnam's non-tariff zones) that meet the conditions stipulated in this Decree and do not have different RCEP tax rates among the Tariff Schedules attached to this Decree shall be subject to the RCEP tax rate specified in the Tariff Schedule for that member country.

2. Goods imported from a member country of the RCEP Agreement (including goods from Vietnam's non-tariff zones) that meet the conditions stipulated in this Decree and have different RCEP tax rates among the Tariff Schedules attached to this Decree shall apply the RCEP tax rate as follows:

a) The RCEP tax rate in the Tariff Schedule designated for the country of origin according to current laws shall be determined.

b) In cases where point a of this Clause does not apply, the importer may declare under one of the following RCEP tax rates:

- The highest RCEP tax rate in the Tariff Schedules applicable to the same goods originating from RCEP member countries (including Vietnam's non-tariff zones) that contribute raw materials with origin used to produce the imported goods, provided that the importer can prove the declared information.

- The highest RCEP tax rate in the Tariff Schedules applicable to the same goods originating from RCEP member countries (including Vietnam's non-tariff zones).

Article 7. Effective Date

1. This Decree takes effect from the date of issuance.

2. For goods imported from Brunei Darussalam, Cambodia, Laos, Singapore, Thailand, Australia, China, Japan, New Zealand, Vietnam's non-tariff zone, and registered for import customs declaration on or after January 1, 2022, for goods imported from South Korea and registered for import customs declaration on or after February 1, 2022, and for goods imported from Malaysia and registered for import customs declaration from March 18, 2022 until the day before this Decree takes effect, if they meet the conditions to enjoy the RCEP tax rate as prescribed in this Decree and if they have already paid taxes at a higher rate, the customs authority shall handle the excess tax paid in accordance with the law on tax administration.

3. For goods imported from Indonesia and registered for import customs declaration on or after January 2, 2023, if they meet the conditions, they shall enjoy the RCEP tax rate as prescribed in this Decree.

Article 8. Responsibility for Implementation

The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial People's Committees under central cities, and related organizations and individuals are responsible for implementing this Decree.