Circular No. 16/2016/TT-BTC Amends the preferential import tax rate for certain goods under subheadings 27.07, 29.02, and 39.02 in the Preferential Import Tariff

This Circular amends the preferential import tax rates for certain goods under subheadings 27.07, 29.02, and 39.02 in the Preferential Import Tariff, and supplements provisions regarding virgin PolyPropylene pellets.

Document No.16/2016/TT-BTC
Document typeCircular
Issuing authorityMinistry of Finance
Signed byVũ Thị Mai
Updated17/06/2026
SectorFinance
FieldTax AdministrationFees and Charges
Issued date21/01/2016
Effective date06/03/2016
Expiry date
StatusIn effect
✦ Smart summary

This Circular amends the preferential import tax rates for certain goods under subheadings 27.07, 29.02, and 39.02 in the Preferential Import Tariff, and supplements provisions regarding virgin PolyPropylene pellets.

Scope of application

Importers of goods under subheadings 27.07, 29.02, and 39.02; importers of virgin PolyPropylene pellets

Key points

  • The preferential import tax rate for benzene, xylene, polypropylene in dispersion form, and other types is 1% (Article 1).
  • Virgin PolyPropylene pellets must meet technical parameters such as density, melting index, tensile strength, flexural modulus to be eligible for a preferential tax rate of 0% (Article 2).
  • The item code for virgin PolyPropylene pellets is 9837 and they are exempt from preferential import tax (Article 2).
  • This Circular does not regulate goods outside of subheadings 27.07, 29.02, 39.02, and virgin PolyPropylene pellets.
  • The amendments shall take effect from March 6, 2016 (Article 3).

🌐 Social impact of this document

  • Importers of goods under subheadings 27.07, 29.02, and 39.02 will be subject to a preferential import tax rate of 1%.
  • Importers of virgin PolyPropylene pellets will be exempt from tax if they meet the required technical conditions.
  • Manufacturing enterprises using polypropylene in dispersion form and other types may face increased input costs due to the 1% preferential import tax rate.
  • Importers of virgin PolyPropylene pellets will benefit from tax exemption.

❓ Frequently asked questions

What is the preferential import tax rate for benzene and xylene?

The preferential import tax rate for benzene and xylene is 1% (Article 1).

Are virgin PolyPropylene pellets exempt from tax?

Yes, virgin PolyPropylene pellets meeting the required technical conditions will be exempt from preferential import tax (Article 2).

When does the new preferential import tax rate take effect?

The new preferential import tax rate takes effect from March 6, 2016 (Article 3).

Full text

MINISTRY OF FINANCE
______
SOCIALIST REPUBLIC OF VIET NAM
Independence – Freedom – Happiness
_______________________
Number: 16/2016/TT-BTC
Hanoi, January 21, 2016

CIRCULAR

Amending the preferential import tax rate for certain goods under subheadings 27.07, 29.02, and 39.02 in the Preferential Import Tariff Schedule

__________

Pursuant to the Law on Export Tax and Import Tax dated June 14, 2005;

Pursuant to Resolution No. 295/2007/NQ-UBTVQH12 dated September 28, 2007 of the Standing Committee of the National Assembly on the issuance of the Export Tariff Schedule according to the list of taxable commodity groups and the tax rate range for each group, the Preferential Import Tariff Schedule according to the list of taxable commodity groups and the preferential tax rate range for each group;

Pursuant to Decree No. 87/2010/NĐ-CP dated August 13, 2010 of the Government detailing certain provisions of the Law on Export Duties and Import Duties;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Tax Policy Department;

The Minister of Finance issues this Circular amending the preferential import tax rate for certain goods under subheadings 27.07, 29.02, and 39.02 in the Preferential Import Tariff Schedule.

Article 1. Amending the preferential import tax rate for certain goods under subheadings 27.07, 29.02, and 39.02 in the Preferential Import Tariff Schedule

Amending the preferential import tax rate for certain goods under subheadings 27.07, 29.02, and 39.02 in the Preferential Import Tariff Schedule as specified in Section I of Appendix II issued together with Circular No. 182/2015/TT-BTC dated November 16, 2015 of the Minister of Finance on the Export Tariff Schedule and the Preferential Import Tariff Schedule according to the list of taxable goods as follows:

Goods code

Description of goods

Tax Rate (%)

27.07

Petroleum and other products from high-temperature distillation of bituminous coal; similar products with aromatic carbon content greater than non-aromatic carbon content

2707.10.00

- Benzene

1

1707.30.00

- Xylene

1

29.02

Cycloalkanes

2902.20.00

- Benzene

1

- Xylene

1

39.02

Polymers from propylene or other olefins, in primary forms

3902.10

- Polypropylene

3902.10.30

- In dispersion form

1

3902.10.90

- Other

1

Article 2. Amending and supplementing Chapter 98 specifying the goods codes and preferential import tax rates for certain commodity groups and items at Section II of Appendix II of the Import Tariff Schedule issued together with Circular No. 182/2015/TT-BTC as follows:

1. Supplementing Point 1.38 to Clause 1 of the Notes to Chapter at Section I of Chapter 98 as follows:

"1.38. Subheading 98.37 'Polypropylene Resin in Primary Forms'"

2. Supplementing Point 2.8 to Clause 2 of the Notes to Subheading at Section I of Chapter 98 technical specifications regarding density, melt flow rate, tensile strength, flexural modulus of polypropylene resin in primary forms under subheading 98.37 as follows:

Name of goods

Density (g/cm3)

Melt Flow Rate - MFR/MI (g/10min)

Tensile Strength (MPa)

Flexural Modulus (MPa)

Polypropylene Resin in Primary Forms

0,9

3,0 ±0,3

Meeting one of the following criteria: 32; 33; 34; 35; 36; 45

Meeting one of the following criteria: 1200; 1225; 1250; 1265; 1310; 1350; 1450; 1500; 1550; 1700

3. Polypropylene resin in primary forms subject to a preferential import tax rate of 0% as stipulated in Clause 4 of this Article must meet the technical specifications regarding density, melt flow rate, tensile strength, flexural modulus as stipulated in Clause 2 of this Article.

4. Supplementing Subheading 98.37 'Polypropylene Resin' into the list of commodity groups and items and preferential import tax rates stipulated in Section II of Chapter 98 as follows:

Goods code

Description of goods

Corresponding goods code at Section I of Appendix II

Tax Rate (%)

9837

00

00

Polypropylene Resin in Primary Forms

3902

10

90

0

Article 3. Effectiveness

This Circular takes effect from March 6, 2016.

Place of Receipt:

- Prime Minister and Deputy Prime Ministers;

- Central Party Office and its Departments;

- National Assembly's Office;

- General Secretary's Office;

- President's Office;

- Supreme People's Procuracy, Supreme People's Court;

- State Audit Agency;

- Ministries, Agencies equivalent to Ministries, Agencies under the Government;

- People's Committees of provinces and centrally governed cities;

- Office of the Central Steering Committee for Anti-Corruption;

- Vietnam Chamber of Commerce and Industry;

- Ministry of Justice's Legal Documents Inspection Department;

- Units under and directly affiliated with the Ministry of Finance;

Customs Departments of provinces and cities;

- Official Gazette;

||| - Government website and Ministry of Finance website;

DEPUTY MINISTER

DEPUTY MINISTER

(Signed)

Vu Thi Mai


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