Decree No. 26/2023/NĐ-CP on Export Tax Rates, Preferential Import Tax Rates, List of Goods and Absolute Tariffs, Compound Tariffs, and Import Tariffs outside Quota

DECREE
Export Tariff Schedule, Preferential Import Tariff Schedule,
List of Goods and Absolute Tax Rates, Mixed Tax Rates,
Import Tariffs outside Quota

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 Law on Tax Administration dated June 13, 2019;

Pursuant to the Customs Law dated June 23, 2014;

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

At the proposal of the Minister of Finance,

The Government promulgates the Decree on the Export Tariff Schedule, Preferential Import Tariff Schedule, List of Goods and Absolute Tax Rates, Mixed Tax Rates, and Import Tariffs outside Quota.

Article 1. Scope of Regulation

This Decree promulgates the Export Tariff Schedule, Preferential Import Tariff Schedule, List of Goods and Absolute Tax Rates, Mixed Tax Rates, and Import Tariffs outside Quota.

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

2. Customs authorities, customs officers.

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

Announced together with this Decree:

1. Appendix I - Export Tariff Schedule according to the List of Taxable Commodities.

2. Appendix II - Preferential Import Tariff Schedule according to the List of Taxable Commodities.

3. Appendix III - List of Goods and Absolute Tax Rates, Mixed Tax Rates for passenger cars with up to 15 seats, second-hand.

4. Appendix IV - List of Goods and Import Tariff Rates outside Quota for commodities subject to Quota Management.

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

1. The Export Tariff Schedule according to the List of Taxable Commodities prescribed in Appendix I issued together with this Decree includes commodity code (commodity code), description of goods, export tax rate specified for each group of taxable commodities. In case the exported goods are not listed in the Export Tariff Schedule, the 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 Schedule prescribed in Section I of Appendix II issued together with this Decree and shall not declare the tax rate on the export declaration form.

2. Commodities exported under the group with serial number 211 in the Export Tariff Schedule must meet both of the following conditions simultaneously:

a) Condition 1: Raw materials, components, semi-finished products (collectively referred to as goods) do not belong to groups with serial numbers from 01 to 210 in the Export Tariff Schedule.

b) Condition 2: Directly processed from primary 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 articles of Government Decree No. 100/2016/NĐ-CP and any subsequent amendments and supplements (if any).

Exported goods falling within the exclusion cases stipulated in Clause 1, Article 1 of Government Decree No. 146/2017/NĐ-CP dated December 15, 2017 do not belong to the group with serial number 211 of the Export Tariff Schedule issued together with this Decree.

3. Commodity codes and export tax rates of goods belonging to the group with serial number 211:

For goods detailed with 8-digit commodity codes and descriptions in groups 25.23, 27.06, 27.07, 27.08, 68.01, 68.02, 68.03 at serial number 211 in the Export Tariff Schedule, the declarant shall declare the export tax rate corresponding to that commodity code as prescribed in serial number 211. If the tax payer does not declare the export tax rate as prescribed in the group with serial number 211, the tax payer must submit a Statement of the proportion of the value of natural resources and minerals plus energy costs in the production cost of the exported goods according to Model No. 14 in Appendix II issued together with this Decree at the time of customs procedures to prove that the declared goods have a total value of natural resources and minerals plus energy costs below 51% of the production cost. In case the tax payer is a trading enterprise purchasing goods from a manufacturing enterprise or another trading enterprise for export but does not declare the export tax rate as prescribed in the group with serial number 211, the tax payer shall base on the information provided by the manufacturing enterprise to declare according to Model No. 14 in the aforementioned Appendix II to prove the proportion of natural resources and minerals plus energy costs below 51% of the production cost. The tax payer shall bear legal responsibility for the accuracy of the declaration.

For goods exported under the group with serial number 211 but not specifically detailed with 8-digit commodity codes and meeting the conditions prescribed in Clause 2 of this Article, the declarant shall declare the exported goods according to the 8-digit commodity code prescribed in Section I of Appendix II on the Preferential Import Tariff Schedule issued together with this Decree and declare the export tax rate as 5%.

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

The Preferential Import Tariff Schedule (the Preferential Import Tariff) specified in Appendix II attached to this Decree includes:

1. Section I: Specifies the preferential import tariff rates for 97 chapters according to the Vietnam Export-Import Goods Classification List. Content includes: Names of Parts and Chapters; Explanations; Subgroup explanations; the Preferential Import Tariff Schedule including goods descriptions, commodity codes (eight digits) according to the Vietnam Export-Import Goods Classification List, preferential import tariff rates prescribed for taxable goods.

In case the Vietnam Export-Import Goods Classification List is amended or supplemented, the declarant shall declare the description and commodity code according to the amended or supplemented list and apply the tariff rate of the amended or supplemented commodity code.

2. Section II: Prescribes the List of Goods and preferential import tariff rates for certain items under Chapter 98. Content includes: Explanations; Methods of classification, conditions, procedures for applying preferential import tariff rates prescribed in Chapter 98, reports on final verification of the use of goods subject to preferential import tariff rates prescribed in Chapter 98; List of Goods and preferential import tariff rates.

a) Items named in the List of Goods and preferential import tariff rates prescribed in Clause 3 of Section II of Appendix II issued with this Decree shall apply the preferential import tariff rates prescribed in Clause 3 of Section II of Appendix II.

The classification of goods and application of preferential import tariff rates in Chapter 98 for complete knock-down (CKD) automobile kits, non-complete automobile kits, chassis with engines and driver's cabins (semi-knock-down automobiles with driver's cabins) shall be carried out according to the provisions in Clause 1.1 of Section II of Appendix II.

Items: Alloy steel containing B and/or Cr and/or Ti in Group 98.11; Leather filling materials, skin protection support creams, scar reduction gels in Group 98.25; Nylon curtain fabrics 1680/D/2 and 1890 D/2 in Group 98.26; Copper wires with cross-sectional area not exceeding 8 mm but more than 6 mm in Group 98.30; Virgin Polypropylene pellets in Group 98.37; Non-alloy steel in the form of bars and unevenly wound coils, hot-rolled in Group 98.39; Set-top boxes in Group 98.46; Net-shaped panels made from Nano-composite Polymeric Alloy (Neoweb) material in Group 98.47 shall apply the preferential import tariff rates in Chapter 98 if they meet the specific standards and technical parameters prescribed in Clause 1 of Section II of Appendix II.

b) Methods of classification, conditions, procedures for applying preferential import tariff rates prescribed in Chapter 98, reports on final verification of the use of goods subject to preferential import tariff rates prescribed in Chapter 98: Shall be implemented according to the provisions in Clause 2 of Section II of Appendix II.

c) The List of Goods and preferential import tariff rates prescribed in Chapter 98 for certain items includes: Commodity code; goods description; corresponding commodity code of that item in Section I of Appendix II on the Preferential Import Tariff Schedule according to the List of Taxable Goods; preferential import tariff rates prescribed in Chapter 98.

d) Goods meeting the conditions for classification into Chapter 98 and having the qualifications to apply special preferential import tariff rates according to current regulations may choose to apply either the special preferential import tariff rates prescribed in the Special Preferential Import Tariff Schedules or the preferential import tariff rates prescribed in Chapter 98 of the Preferential Import Tariff Schedule.

For items classified into Chapter 98, when processing customs formalities, the declarant shall declare the column "Corresponding Commodity Code at Section I of Appendix II" as specified in Chapter 98, while also recording the commodity code of Chapter 98 next to it.

Article 6. Import tariff rates for preferential imported mechanical processing machines

Mechanical processing machines belonging to groups from 84.54 to 84.63 shall apply preferential import tariff rates as follows:

1. Mechanical processing machines that have not yet been produced domestically shall apply a preferential import tariff rate of 0%. The mechanical processing machines referred to in this clause are those not included in the list of machinery and equipment already produced domestically as specified by the Ministry of Planning and Investment.

2. Mechanical processing machines not falling under the case stipulated in Clause 1 of this Article shall apply preferential import tariff rates for groups from 84.54 to 84.63 as prescribed in Section I of Appendix II on the Preferential Import Tariff Schedule accompanying this Decree.

Article 7. Import tariffs for used passenger cars

1. Used passenger cars with up to 9 seats and engine displacement not exceeding 1,000 cc belonging to group 87.03 shall apply the absolute tax rate as prescribed in Appendix III accompanying this Decree.

2. Used passenger cars with up to 9 seats and engine displacement over 1,000 cc belonging to group 87.03 and from 10 to 15 seats belonging to group 87.02 shall apply the mixed tax rate as prescribed in Appendix III accompanying this Decree.

3. Used passenger cars with 16 seats or more belonging to group 87.02 and used motor vehicles for cargo with total design weight not exceeding 5 tons belonging to group 87.04 (excluding refrigerated trucks, waste collection trucks equipped with waste compaction units, tanker trucks, armored trucks for transporting valuable goods; cement tank trucks and mud trucks with detachable tanks) shall apply a preferential import tariff rate of 150%.

4. Other types of used motor vehicles belonging to groups 87.02, 87.03, and 87.04 shall apply a tariff rate equal to 1.5 times the preferential import tariff rate of new motor vehicles of the same type within the same group as prescribed in Section I of Appendix II accompanying this Decree.

Article 8. Preferential import tariff rates for automobile spare parts imported under the Tax Incentive Program for Producing and Assembling Motor Vehicles (Tax Incentive Program)

1. The preferential import tariff rate of 0% shall be applied to automobile spare parts imported under group 98.49 as stipulated in Clause 3, Section II of Appendix II accompanying this Decree as follows:

a) At the time of registering the customs declaration, the declarant shall declare and calculate taxes on imported goods according to the general import tariff rate or the preferential import tariff rate or the special preferential import tariff rate as prescribed, without applying the preferential import tariff rate of 0% for group 98.49.

b) The application of the preferential import tariff rate of 0% for automobile spare parts belonging to group 98.49 shall be implemented according to the provisions of Clauses 2, 3, 4, 5, 6, 7, and 8 of this Article.

Thông tư này áp dụng đối với tổ chức, cá nhân có liên quan đến hoạt động kinh doanh đối tượng thủy sản nuôi chủ lực trên lãnh thổ Việt Nam.

The enterprise must hold a Certificate of Eligibility for Producing and Assembling Motor Vehicles issued by the Ministry of Industry and Trade.

a) Imported automobile spare parts must meet the following conditions:

a.1) Automobile spare parts listed in group 98.49 and not yet produced domestically, and used for producing and assembling motor vehicles during the period of incentive review (including spare parts in stock from previous incentive review periods used for producing and assembling vehicles for subsequent incentive review periods). The determination of domestic non-production spare parts is based on the list of raw materials, components, and semi-finished products already produced domestically as specified by the Ministry of Planning and Investment.

a.2) Imported automobile spare parts must be directly imported, entrusted to import, or authorized to import by the enterprise producing and assembling motor vehicles.

a.3) In cases where imported spare parts sets (including imports from multiple sources and multiple shipments) include car bodies and chassis, they must meet the following requirements:

Car bodies must include at least the following components: roof assembly, floor assembly, left side assembly, right side assembly, front assembly, rear assembly, and separate connecting panels (if any), and must not be electrostatically painted;

Chassis with a length under 3.7 meters must be imported either connected or unconnected, and must not be electrostatically painted; chassis with a length of 3.7 meters or more can be electrostatically painted before importation, whether connected or unconnected.

a.4) Imported automobile spare parts must not include items belonging to group 87.07 (car bodies including cabs).

b) For enterprises producing and assembling electric vehicles, fuel cell vehicles, hybrid vehicles, fully biofuel vehicles, and natural gas vehicles, the enterprises are not required to register vehicle models when participating in the Tax Incentive Program.

b.1) Enterprises are not required to meet the minimum production volume requirement for the first registration period to participate in the Tax Incentive Program and the immediately following review period; if they comply with the provisions of Clause 2, Point a of Clause 3, Clauses 4, 6, 7, and 8 of this Article, they may apply a preferential import tariff rate of 0% to all imported spare parts used for producing and assembling the vehicle groups registered for participation in the Tax Incentive Program that were produced and shipped out during the review period.

b.2) For subsequent review periods, enterprises must meet the minimum production volume requirement as stipulated in Point b of Clause 5 of this Article and comply with the conditions set forth in Clause 2, Point a of Clause 3, Clauses 4, 6, 7, and 8 of this Article to apply a preferential import tariff rate of 0% to all imported spare parts used for producing and assembling the vehicle groups that meet the production volume requirements as stipulated and shipped out during the review period.

c) For enterprises producing and assembling gasoline and diesel-powered vehicles:

c.1) Emission standards condition

Production and assembly of motor vehicles must meet emission standards level 5 or higher starting from 2022 onwards, and vehicles with emission standards level 4 produced and assembled and granted a Certificate of Technical Quality and Environmental Protection before January 1, 2022, and still valid according to Government Decree No. 116/2017/NĐ-CP dated October 17, 2017, and any subsequent amendments, supplements, or replacements thereof.

c.2) Vehicle model conditions

A business producing and assembling gasoline and diesel fuel vehicles may register one or more vehicle models when participating in the Tax Incentive Program. During the implementation period of the Tax Incentive Program, the business may change or supplement registered vehicle models and quantities. The production volume of changed or supplemented models will be added to the minimum total production volume for tax incentive consideration but must still meet the minimum individual production volume requirement for each tax incentive assessment period. Vehicle models for each group of vehicles are defined as follows:

For the group of passenger vehicles with up to nine seats and engine displacement of up to 2,500 cc, which belong to category 87.03, the model is a vehicle that simultaneously meets the following criteria: same engine specifications and engine displacement of up to 2,500 cc; same body (or chassis) specifications; fuel consumption below 7.5 liters/100 km. The criterion of fuel consumption below 7.5 liters/100 km is based on the combined cycle fuel consumption level stated in the Certificate of Fuel Consumption Level issued by the Vietnam Motor Vehicle Inspection Center.

For the mini-bus group (passenger vehicles with 10 to 19 seats belonging to category 87.02) and the bus/tourist coach group (passenger vehicles with 20 seats or more belonging to category 87.02), the model is a vehicle with the same engine specifications and the same chassis specifications.

For the truck group (cargo vehicles with engines used for transporting goods belonging to category 87.04 and special purpose vehicles with engines belonging to category 87.05), the model is a vehicle with the same engine specifications and the same cab specifications.

Determining the engine specifications of the model is based on the engine displacement, type, or power specified in the Certificate of Technical Safety Quality and Environmental Protection for automobile production and assembly issued by the Vietnam Motor Vehicle Inspection Center. Determining the body (or chassis) specifications, chassis, and cab is based on the basic technical characteristics of the vehicle and the structure of the body as described in the technical design description and technical drawings of the vehicle that have been reviewed by the Vietnam Motor Vehicle Inspection Center.

c.3) Conditions regarding the minimum total production volume (applicable to each group of automobiles) and the minimum individual production volume (the production volume of the registered model participating in the Tax Incentive Program).

The business satisfies the conditions regarding the minimum total production volume and the minimum individual production volume in one of the following cases:

c.3.1) In the case where the business meets the minimum total production volume for each group of vehicles and the minimum individual production volume for at least one model specified for each tax incentive assessment period under Point a Clause 5 of this Article and also meets the conditions stipulated in Clause 2, Point a, c.1, c.2 Clause 3, Clause 4, Clause 6, Clause 7, and Clause 8 of this Article, then the business shall apply a zero percent import duty rate for all imported parts used in the production and assembly of the group of vehicles that the business meets the production volume requirements according to regulations for release during the tax incentive assessment period.

In the case where the business produces and assembles both gasoline and diesel fuel vehicles and electric vehicles, fuel cell vehicles, hybrid vehicles, and vehicles using entirely biofuel or natural gas, when determining the minimum total production volume of the group of gasoline and diesel fuel vehicles, the business can add the production volume of electric vehicles, fuel cell vehicles, hybrid vehicles, vehicles using entirely biofuel, and vehicles using natural gas produced and assembled during the tax incentive assessment period to the minimum total production volume of the same group of gasoline and diesel fuel vehicles for tax incentive consideration.

c.3.2) In the case where the business's actual production and assembly volume of one model of passenger vehicles with up to nine seats registered for the tax incentive assessment period reaches 1.3 times or more of the minimum individual production volume of the passenger vehicle model with up to nine seats specified in Point a Clause 5 of this Article and also meets the conditions stipulated in Clause 2, Point a, c.1, c.2 Clause 3, Clause 4, Clause 6, Clause 7, and Clause 8 of this Article, then the business shall apply a zero percent import duty rate for imported parts used in the production and assembly of that registered model released during the tax incentive assessment period.

c.3.3) In the case where the business's total actual production and assembly volume of two models of passenger vehicles with up to nine seats registered for the tax incentive assessment period reaches 1.5 times or more of the minimum individual production volume of the passenger vehicle model with up to nine seats specified in Point a Clause 5 of this Article and also meets the conditions stipulated in Clause 2, Point a, c.1, c.2 Clause 3, Clause 4, Clause 6, Clause 7, and Clause 8 of this Article, then the business shall apply a zero percent import duty rate for imported parts used in the production and assembly of those two registered models released during the tax incentive assessment period.

c.3.4) In the case where the business registers to participate in the Tax Incentive Program for two or more groups of vehicles and the total actual production and assembly volume of all registered groups of vehicles participating in the Tax Incentive Program during the tax incentive assessment period is equal to or greater than the total minimum production volume of the corresponding groups of vehicles specified in Point a Clause 5 of this Article and also meets the conditions stipulated in Clause 2, Point a, c.1, c.2 Clause 3, Clause 4, Clause 6, Clause 7, and Clause 8 of this Article, then the business shall apply a zero percent import duty rate for imported parts used in the production and assembly of vehicles belonging to the groups of vehicles that the business has registered to participate in and released during the tax incentive assessment period.

c.3.5) In the case where the first period for tax incentives of automobile manufacturing and assembly enterprises as stipulated in points c.3.1, c.3.2, c.3.3, c.3.4 of this clause does not have enough months within the tax incentive review period, if the enterprise achieves the actual production volume of the vehicle group, which is at least equal to the average monthly production volume of the minimum total production multiplied by the time (number of months) participating in the Tax Incentive Program during the review period, and also achieves the actual production volume of the registered model, which is at least equal to the average monthly production volume of the minimum individual production multiplied by the number of months participating in the Tax Incentive Program during the review period, while meeting the minimum total production and minimum individual production conditions for the next review period, then the auto parts already used for automobile production and assembly during the first review period shall be subject to a 0% tax rate if the enterprise meets the conditions specified in Clause 2, Point a, c.1, c.2 of Clause 3, Clause 4, Clause 6, Clause 7, Clause 8 of this Article. If the participation time in the Tax Incentive Program of the first month is 15 days or more, it will be rounded up to one month. If the number of days participating in the Tax Incentive Program of the first month is less than 15 days, that month will not be counted.

4. Tax incentive review period

The enterprise may choose a six-month or twelve-month tax incentive review period as follows:

a) Six-month tax incentive review period from January 1 to June 30 or from July 1 to December 31 each year.

In the case where the enterprise chooses a six-month tax incentive review period, has been processed for excess tax refunds on auto parts produced and assembled and shipped out during the first six months of the year and the last six months of the year but did not meet the production volume conditions stipulated in the Tax Incentive Program, provided that the total production volume for the entire year meets the production volume conditions for a twelve-month tax incentive review period according to the Tax Incentive Program, the enterprise will still be eligible for tax incentives for the last six months of the year, and will also be entitled to process excess tax refunds on auto parts used for producing and assembling vehicles shipped out during the period if they meet the provisions of Clause 2, Clause 3, Clause 6, Clause 7, Clause 8 of this Article.

b) Twelve-month tax incentive review period from January 1 to December 31 each year.

5. Production volume of vehicles manufactured and assembled under the Tax Incentive Program for automobile production and assembly

a) Gasoline and diesel-powered passenger cars

Unit of measurement: Unit

For the 2023 tax incentive review period, enterprises that have participated in the Tax Incentive Program can include the production volume of vehicles produced and assembled and shipped out from January 1, 2023 to the date this Decree takes effect for tax incentives if they meet the conditions of the Tax Incentive Program stipulated in Government Decree No. 57/2020/NĐ-CP dated May 25, 2020 and Government Decree No. 101/2021/NĐ-CP dated November 15, 2021, except for the condition regarding the minimum degree of disaggregation of auto parts.

b) Electric vehicles; fuel cell vehicles; hybrid vehicles; vehicles running entirely on biofuel; vehicles running on natural gas.

From January 1 to June 30

Unit of measurement: Unit

a.1) Registration letter to participate in the Tax Incentive Program for auto parts according to Model No. 05 attached as Appendix II of this Decree: One original copy;

a) The documents include:

a.2) Certificate of eligibility for automobile production and assembly: One certified copy.

b) Registration procedure: Enterprises submit registration documents to participate in the Tax Incentive Program directly or via the electronic data system or through postal service to the customs authority where the enterprise's main office is located or where the production and assembly plant is located, starting from the date this Decree takes effect or at any time during the Tax Incentive Program period. The participation date in the Tax Incentive Program is calculated from the date of the registration letter.

7. Declaration procedures on the customs declaration form

The declarant shall declare the "Type code" index: declare type code A43 - "Import of goods under the Tax Incentive Program" for imported auto parts with codes belonging to subheading 98.49 for production and assembly of registered vehicle groups under the Tax Incentive Program; the "Internal company management number" index: declare code "#&7a."

8. Documents and procedures for applying the 0% preferential tax rate of subheading 98.49

a.1) Letter requesting application of the 0% preferential tax rate of subheading 98.49 according to Model No. 06a attached as Appendix II of this Decree: One original copy;

a.2) Report on the situation of using imported auto parts for production and assembly of vehicles shipped out during the tax incentive review period according to Model No. 06 attached as Appendix II of this Decree: One original copy;

a.3) List of customs declarations, amount of import tax paid according to Model No. 07 attached as Appendix II of this Decree: One original copy;

a.3) List of customs declaration forms, amount of import tax paid, in accordance with Form No. 07 in Appendix II issued together with this Decree: 01 original copy;

a.4) Accounting records showing the quantity of imported parts that have been used for producing and assembling vehicle groups during the period under consideration for preferential treatment: one copy;

a.5) Quality inspection certificates issued by the enterprise according to the form provided by the Vietnam Vehicle Inspection Center: certified copies bearing the stamp of the enterprise (the number of copies corresponding to the number of vehicles produced and assembled during the period under consideration for preferential treatment);

a.6) Certificate of technical safety and environmental protection for automobiles produced and assembled: certified copies or copies presented with the original for verification (the number of copies corresponding to the types of vehicles produced and assembled);

a.7) Technical design descriptions and drawings of automobiles that have been reviewed by the Vietnam Vehicle Inspection Center: certified copies or copies presented with the original for verification (the number of copies corresponding to the types of vehicles produced and assembled).

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

b.1) Not later than 60 days from June 30 or December 31, the enterprise submits the documents specified in point a of this clause to the customs authority where the application for participation in the Preferential Tax Program is accepted. In cases where the submission exceeds the 60-day deadline, the customs authority will accept the documents, conduct inspections, and impose administrative penalties as prescribed by the Government.

If the first period under consideration for preferential treatment has not yet reached six months, the enterprise shall submit the documents specified in point a of this clause simultaneously with the application for a zero percent tax rate for the subsequent period under consideration.

b.2) The customs authority bases its review on the enterprise's application to verify the objects and conditions for applying the Preferential Tax Program as stipulated in Clause 2 and Clause 3 of this Article. Among these:

The production volume is based on the number of Quality Inspection Certificates issued by the enterprise during the period under consideration.

The registered model is based on the Certificate of Technical Safety and Environmental Protection for automobiles produced and assembled issued by the Vietnam Vehicle Inspection Center.

The quantity of imported automobile parts used (excluding parts that were put into use but became defective or faulty) must correspond to the actual number of vehicles produced and assembled with Quality Inspection Certificates during the period under consideration, and be based on the Report on the Utilization of Imported Automobile Parts Eligible for Preferential Import Tax, the List of Customs Declarations, and the amount of import tax paid per customs declaration for imported goods.

b.3) Based on the results of reviewing the enterprise's documents, the customs authority will handle the matter as follows:

If the documents are incomplete, the customs authority will issue a notice requesting the enterprise to provide additional information. If there are doubts about the accuracy of the documents, the customs authority will conduct an on-site inspection at the customs office or the taxpayer's premises in accordance with the laws governing tax administration.

If the documents meet the conditions for applying the Preferential Tax Program and the enterprise has paid more import tax on imported automobile parts than the amount due under the tariff rate of group 98.49, the customs authority will issue a Decision to refund and prepare an Order for refunding the excess tax paid to the enterprise in accordance with the Law on Tax Administration and related implementing regulations. Based on the Order for refunding state budget revenue issued by the customs authority, the State Treasury will refund the excess import tax to the enterprise. The source of the refund will be derived from the central government's revenue from export and import taxes.

If the enterprise does not meet the conditions for applying the Preferential Tax Program, it will not be eligible for a refund, and the customs authority will issue a notice informing the enterprise accordingly.

a) At the time of declaring the customs declaration form, the declarant shall declare and calculate taxes on imported raw materials, components, and spare parts according to the general import tax rate, preferential import tax rate, or special preferential import tax rate as prescribed, without applying the 0% tax rate.

b) The application of the preferential import tax rate of 0% for raw materials, components, and spare parts under the Preferential Tax Program for Supporting Industrial Products for Automobiles shall be implemented in accordance with the provisions of Clauses 2, 3, 4, 5, 6, 7, and 8 of this Article.

Thông tư này áp dụng đối với tổ chức, cá nhân có liên quan đến hoạt động kinh doanh đối tượng thủy sản nuôi chủ lực trên lãnh thổ Việt Nam.

a) Enterprises producing, processing (assembling) automobile spare parts and accessories.

b) Enterprises manufacturing and assembling automobiles that produce, process (assemble) automobile spare parts and accessories themselves.

3. Conditions for Application

a) Enterprises producing, processing (assembling) automobile spare parts and accessories must meet the following conditions:

a.1) Having a sales contract for supporting industrial products for automobiles with automobile manufacturing and assembly enterprises holding a Certificate of Eligibility for Automobile Manufacturing and Assembly issued by the Ministry of Industry and Trade.

a.2) Investment Certificate or Registration Certificate of Investment or Enterprise Registration Certificate or Business Registration Certificate clearly stating the project objectives or business activities including the production of automobile spare parts and auxiliary parts for other motor vehicles.

a.3) Possessing ownership or usage rights over the production facilities, processing (assembly) sites, and machinery and equipment at such facilities located within Vietnam.

b) Enterprises manufacturing and assembling automobiles that produce, process (assemble) automobile spare parts and accessories must hold a Certificate of Eligibility for Automobile Manufacturing and Assembly issued by the Ministry of Industry and Trade.

c) Imported raw materials, components, and spare parts must meet the following conditions:

c.1) Imported raw materials, components, and spare parts (including those already imported from the date this Decree takes effect and remain in stock from previous preferential periods to be used for producing, processing (assembling) supporting industrial products for automobiles during subsequent preferential periods; excluding raw materials, components, and spare parts that have been put into use but are defective or faulty) must be listed in the Catalogue of Priority Supporting Industrial Products for the Automobile Manufacturing and Assembly Industry as stipulated in Section IV of the Appendix attached to Government Decree No. 111/2015/ND-CP dated November 3, 2015, concerning the development of supporting industries and any amendments or supplements thereto. In cases where products are merely assembled together using simple devices such as screws, bolts, nuts, rivets, and do not undergo any production or processing processes to become finished products, they will not be eligible for the Preferential Tax Program for Supporting Industrial Products for Automobiles.

c.2) Imported raw materials, components, and spare parts must be of types that are not domestically produced, directly imported or entrusted to import by enterprises specified in Clause 2 of this Article. The determination of raw materials, components, and spare parts that are not domestically produced shall be based on the regulations of the Ministry of Planning and Investment regarding the List of Raw Materials, Components, and Semi-finished Products Already Produced Domestically.

Enterprises specified in Clause 2 of this Article that comply with 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 apply the preferential import tax rate of 0% for imported raw materials, components, and spare parts for producing, processing (assembling) supporting industrial products for automobiles during the preferential review period.

4. Tax incentive review period

The maximum preferential tax review period shall not exceed six months, calculated from January 1 to June 30 or from July 1 to December 31 each year.

5. Documents and procedures for registering participation in the Preferential Tax Program for Supporting Industrial Products for Automobiles

a) Documents for registering participation in the Preferential Tax Program for Supporting Industrial Products for Automobiles include:

a.1) A registration letter for participating in the Preferential Tax Program for Supporting Industrial Products for Automobiles according to Model No. 08 in Appendix II attached to this Decree: One original copy;

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

a.3) Notification of production facilities, processing (assembly) sites, machinery, and equipment at such facilities to the customs authority according to Model No. 09 in Appendix II attached to this Decree (applicable to the case specified in Point a of Clause 2 of this Article): One original copy. Land Use Right Certificate issued by the competent state authority to the enterprise or Land Use Right Certificate issued by the competent authority to the land owner and lease or loan agreements for land, premises, and factories in cases where the enterprise leases or borrows them for production purposes: One certified copy;

a.4) Certificate of Eligibility for Automobile Manufacturing and Assembly issued by the Ministry of Industry and Trade (applicable to the case specified in Point b of Clause 2 of this Article): One certified copy.

b) Procedures for registering participation in the Preferential Tax Program for Supporting Industrial Products for Automobiles

A business shall submit an application to participate in the Industrial Support Automotive Tax Incentive Program directly or through the electronic data system of the customs authority or by mail to the customs authority where the business's main office is located or where it has a production facility or assembly plant immediately after this Decree takes effect or at any time during the year. The date of participation shall be calculated from the date of the registration letter for the Industrial Support Automotive Tax Incentive Program.

6. Declaration procedures on the customs declaration form

At the time of registering the customs declaration form, the declarant shall declare the "Type code" index as "A43 - Importing goods under the Industrial Support Automotive Tax Incentive Program"; the "Internal management number" index as "#&7b"; and the "Commodity code" (HS code) according to the Export and Import Goods List of Vietnam for raw materials, components, and spare parts of the Industrial Support Automotive Tax Incentive Program.

7. Inspection of the production and processing (assembly) facilities of businesses participating in the Industrial Support Automotive Tax Incentive Program

After receiving the application to participate in the Industrial Support Automotive Tax Incentive Program, the customs authority shall inspect the production and processing (assembly) facilities; check machinery and equipment at the production and processing (assembly) facilities that the business has notified to the customs authority. The customs authority shall issue the Inspection Decision for Production and Processing Facilities according to Form No. 09a attached as Appendix II to this Decree and send it through the electronic data system of the customs authority or by registered mail, fax to the declarant within three working days from the date of signature. The inspection shall be carried out five working days after the issuance of the Inspection Decision. The inspection period shall not exceed five working days. The inspection contents include:

a) Inspect the actual production and processing facilities against the information provided by the business to the customs authority, Investment Certificate or Investment Registration Certificate or Business Registration Certificate or Business License or Land Use Right Certificate issued by the competent state agency to the business or Land Use Right Certificate issued by the competent state agency to the land owner and lease or loan contracts for land, premises, workshops in cases where the business leases or borrows them for production and processing purposes.

b) Inspect the actual machinery and equipment at the production and processing facilities in accordance with the customs declaration forms for imported goods, invoices, certificates, and leasing or borrowing contracts for machinery and equipment (in cases of leasing or borrowing machinery and equipment); inspect the production process, scale, workforce status, and machinery and equipment status to determine the actual production capacity of the business in relation to the products registered to participate in the Industrial Support Automotive Tax Incentive Program.

Upon completion of the inspection, the customs authority shall prepare the Inspection Record of Production and Processing Facilities according to Form No. 09b attached as Appendix II to this Decree.

Within five working days from the date of signing the inspection record, the customs authority shall notify the business in writing about whether the conditions regarding the production and processing facilities (assembly), machinery, and equipment stipulated in point a.3 clause 3 of Article 3 of this Decree are met according to Form No. 09c attached as Appendix II to this Decree.

During the participation in the Industrial Support Automotive Tax Incentive Program, if a business changes its production and processing facility address, ownership, or usage rights for machinery and equipment at the production and processing (assembly) facilities, it must notify the customs authority in writing within five working days from the date of change. Upon receipt of the business's change notification or upon discovering signs indicating that the business has changed information about the production and processing facilities, machinery, and equipment without notifying the customs authority or based on risk management, the customs authority shall conduct inspections of the production and processing (assembly) facilities and machinery and equipment at the production and processing (assembly) facilities.

8. Documents and procedures for applying the preferential tax rate of 0%

a) The documents include:

a.1) For businesses producing and processing (assembling) automotive spare parts and components:

A letter requesting the application of the preferential tax rate of 0% under the Industrial Support Automotive Tax Incentive Program according to Form No. 10a attached as Appendix II to this Decree: One original copy;

Investment Certificate or Investment Registration Certificate or Business License or Business Registration Certificate (except in cases where the business has already submitted when applying to participate in the Industrial Support Automotive Tax Incentive Program): One certified copy;

Sales contract for industrial support automotive products with enterprises holding a Certificate of Eligibility for Automotive Production and Assembly issued by the Ministry of Industry and Trade: One original copy;

Production and processing (assembly) procedures for industrial support automotive products (with explanations): One original copy;

Declaration of customs declarations, amount of import duties paid for raw materials, components, and spare parts used to produce, process (assemble) industrial support automotive products registered to participate in the Industrial Support Automotive Tax Incentive Program according to Form No. 10 attached as Appendix II to this Decree: One original copy;

Report on the use of imported raw materials, components, and spare parts to produce, process (assemble) industrial support automotive products registered to participate in the program according to Form No. 11 attached as Appendix II to this Decree: One original copy;

Declaration of value-added tax invoices corresponding to the quantity of industrial support automotive products sold according to the sales contract according to Form No. 12 attached as Appendix II to this Decree: One original copy;

Accounting documents showing the quantity of imported raw materials, components, and spare parts used to produce, process (assemble) industrial support automotive products: One copy.

a.2) For automobile manufacturing businesses that produce and process (assemble) their own automotive spare parts and components:

Request for applying the preferential tax rate of 0% under the Automotive Supporting Industry Tax Incentive Program according to Form No. 10a in Appendix II issued together with this Decree: 01 original copy;

Production and processing (assembly) procedures for industrial support automotive products (with explanations): One original copy;

Declaration of import declaration forms and amount of import duties paid on raw materials, components, spare parts for producing, processing (assembling) automotive supporting products according to Form No. 10 in Appendix II issued together with this Decree: 01 original copy;

Report on the use of imported raw materials, components, spare parts for producing, processing (assembling) automotive supporting products according to Form No. 11 in Appendix II issued together with this Decree: 01 original copy;

List of value-added tax invoices corresponding to the quantity of automotive supporting products sold to automobile manufacturing and assembly enterprises holding a Certificate of Eligibility for Automobile Production and Assembly issued by the Ministry of Industry and Trade according to Form No. 12 in Appendix II issued together with this Decree (if applicable): 01 original copy;

Report on the use of automotive supporting products produced, processed (assembled) according to Form No. 13 in Appendix II issued together with this Decree: 01 original copy;

Certificate of Eligibility for Automobile Production and Assembly issued by the Ministry of Industry and Trade (except in cases where it has already been submitted when registering to participate in the Program): 01 certified copy;

Accounting documents showing the quantity of imported raw materials, components, and spare parts used to produce, process (assemble) industrial support automotive products: One copy.

b) Procedures for applying the 0% tax rate:

b.1) Not later than 60 days from June 30 or December 31 each year, the enterprise shall submit the documents specified in point a of this clause to the customs authority at the place where the application for participation in the Automotive Supporting Industry Tax Incentive Program was received. In case of submission beyond the 60-day deadline, the customs authority will accept the documents, conduct inspections, and impose administrative penalties in accordance with government regulations.

b.2) The customs authority shall base its decision on the application for the 0% tax rate, the results of inspections of the production facilities, processing (assembly), machinery, and equipment of the enterprise to verify compliance with the program's conditions and handle accordingly:

If the documents are incomplete as required, the customs authority shall issue a notice requesting the enterprise to supplement the documents. In case of doubt about the accuracy of the documents, the customs authority shall conduct an inspection at its office or the taxpayer's premises in accordance with the laws on tax administration.

If the conditions for applying the Automotive Supporting Industry Tax Incentive Program are met, the customs authority shall issue a Decision on Refund and establish an Order for Refund of excess import taxes paid by the enterprise in accordance with the Law on Tax Administration and implementing regulations. Based on the Order for Refund of state budget revenue issued by the customs authority, the State Treasury shall refund the excess import taxes paid by the enterprise. The source of the refund of excess taxes shall be taken from the central government's revenue from export and import taxes.

If the enterprise does not meet the conditions for applying the Automotive Supporting Industry Tax Incentive Program, the customs authority shall issue a response letter to inform the enterprise.

Article 10. List of goods and import tax rates for items subject to tariff quotas

1. Goods subject to tariff quotas include items belonging to the groups of goods specified in Appendix IV issued together with this Decree and goods subject to tariff quotas as provided for in international treaties to which the Socialist Republic of Vietnam is a party (international treaties).

2. The annual quota volume for imports shall be implemented in accordance with the regulations of the Ministry of Industry and Trade.

3. The import tax rate applied to the quantity of goods imported within the tariff quota:

Goods with quantities imported within the annual tariff quota volume as prescribed by the Ministry of Industry and Trade shall apply the preferential import tax rate specified in Section I of Appendix II issued together with this Decree or the special preferential import tax rate according to the Special Preferential Import Tariff Schedules (if they meet the conditions for enjoying the special preferential import tax rate) issued together with Government Decrees on the issuance of Special Preferential Import Tariff Schedules to implement international treaties.

Where Government Decrees on the issuance of Special Preferential Import Tariff Schedules for implementing international treaties provide conditions for applying the special preferential import tax rate within the tariff quota, such provisions shall be implemented in accordance with those Decrees.

4. The import tax rate applied to the quantity of goods imported outside the tariff quota:

a) Goods mentioned in Clause 1 of this Article with quantities imported outside the annual quota volume as prescribed by the Ministry of Industry and Trade shall apply the import tax rate outside the quota as specified in Appendix IV issued together with this Decree.

b) Where international treaties specify the quota volume and/or the import tax rate outside the quota for the goods mentioned in Clause 1 of this Article, such provisions shall be implemented in accordance with Government Decrees on the issuance of Special Preferential Import Tariff Schedules to implement those international treaties. Where the import tax rate outside the quota specified in the international treaty is higher than the import tax rate outside the quota specified in Appendix IV issued together with this Decree, the import tax rate outside the quota specified in Appendix IV issued together with this Decree shall be applied.

Article 11. Responsibility for organizing implementation

1. The Ministry of Finance shall carry out inspection, supervision, price consultation, and anti-trade fraud measures in accordance with regulations for goods with high import tax rates and goods with high risks in terms of valuation.

2. The Ministry of Planning and Investment shall issue a list of domestically produced goods; review and update the list to ensure consistency with reality.

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

a) Issuing Certificates of Eligibility for Automobile Production and Assembly in accordance with the Government's regulations on conditions for automobile production, assembly, importation, and after-sales service operations;

b) Issuing domestic regulations internalizing the provisions on tariff quotas in international treaties to which Vietnam is a party.

4. The competent state agencies shall issue Investment Certificates, Investment Registration Certificates, or investment approval decisions, Enterprise Registration Certificates, Business Registration Certificates to enterprises in accordance with the provisions of the law.

5. Relevant ministries, sectors, and localities shall perform their functions and duties to inspect and supervise to ensure that policies are implemented in accordance with regulations and to prevent commercial fraud.

6. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of People's Committees of provinces and centrally governed cities, and related organizations and individuals shall be responsible for implementing this Decree.

Article 12. Effective Date

1. This Decree shall take effect from July 15, 2023.

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

3. From October 1, 2022 until the date this Decree takes effect, the condition regarding the minimum degree of disaggregation of automobile parts as stipulated in point b, Clause 3.1, Article 7a, Clause 3, Article 2, and point b.5, Clause 3, Section II, Chapter 98 of Decree No. 57/2020/NĐ-CP dated May 25, 2020 of the Government shall not be applied.

In cases where enterprises have participated in the tax preference program but have not yet been refunded import taxes paid from October 1, 2022 to the date this Decree takes effect, they shall be eligible for refunds on imported automobile parts if they meet the conditions specified in the tax preference program, excluding the condition regarding the minimum degree of disaggregation of automobile parts.

In cases where enterprises import complete knock-down (CKD) kits and non-integrated automobile part sets for production and assembly, including authorized importers, consigned importers with consignment contracts, and trading importers with purchase and sale contracts with automobile manufacturing and assembly enterprises during the period from October 1, 2022 to the date this Decree takes effect, they must choose to calculate taxes on each automobile part or accessory or group 98.21 according to the conditions stipulated in Decree No. 57/2020/NĐ-CP dated May 25, 2020 of the Government, excluding the condition regarding the minimum degree of disaggregation of automobile parts.

4. The preferential import tariff rate for automobile parts imported under group 98.49 as provided for in Article 8 of this Decree shall apply until December 31, 2027. Enterprises that have registered to participate in the tax preference program before the date this Decree takes effect must re-register with customs authorities in accordance with this Decree.

In cases where enterprises change or supplement vehicle models, types, or quantities of vehicle models already registered to participate in the tax preference program after registration, enterprises must re-register with customs authorities.

5. The preferential import tariff rate for raw materials, components, and parts for producing and processing (assembling) priority supporting industrial products for the automobile manufacturing and assembly industry as provided for in Article 9 of this Decree shall apply until December 31, 2024. Enterprises that have registered to participate in the automobile supporting industry tax preference program before the effective date of this Decree do not need to re-register for the automobile supporting industry tax preference program and shall enjoy benefits as prescribed in this Decree.