What is the Decree 21 2025 on amendments to Decree 26 2023 on Schedule of Export Tariffs, Schedule of Preferential Import Tariffs of Vietnam?

What is the Decree 21 2025 on amendments to Decree 26 2023 on Schedule of Export Tariffs, Schedule of Preferential Import Tariffs of Vietnam?

The Government of Vietnam has just issued Decree 21/2025/ND-CP amending Article 9 of Decree 26/2023/ND-CP regarding the Schedule of Export Tariffs and Import Tariff.

Decree 21/2025/ND-CP amends the title of Article 9 and Clause 1 of Article 9 of Decree 26/2023/ND-CP regarding the Schedule of Export Tariffs, Schedule of Preferential Import Tariffs, Tariff Nomenclature and fixed duties, mixed duties, out-of-quota import duties.

Decree 21/2025/ND-CP takes effect from February 10, 2025.

The preferential import tax rate on raw materials, supplies, and components used for the production and assembly of industrial supportive products prioritized for development in the automobile manufacturing and assembly industry as stipulated in this Decree shall apply until December 31, 2027. Enterprises that have registered to participate in the Automobile Supportive Industry Preferential Tax Program before this Decree takes effect are not required to re-register for the program and will enjoy incentives according to the provisions of this Decree.

See full details of Decree 21/2025/ND-CP: Here

What is the Decree 21 2025 on amendments to Decree 26 2023 on Schedule of Export Tariffs, Schedule of Preferential Import Tariffs of Vietnam? (Image from Internet)

What are the principles when promulgating the import tariff schedule of Vietnam?

Based on Article 10 Law on Import and Export Tax 2016, there are five principles when promulgating the import tariff schedule as follows:

Principle 1. Encourage the import of raw materials and materials, prioritizing those not yet meeting domestic demand; focus on the development of high technology, foundational technology, energy saving, and environmental protection sectors.

Principle 2. Conform to the socio-economic development orientation of the State and commitments on export and import taxes in international treaties of which the Socialist Republic of Vietnam is a member.

Principle 3. Contribute to market stability and state budget revenue.

Principle 4. Be simple, transparent, and create convenience for taxpayers and implement administrative tax procedures reform.

Principle 5. Apply a unified tax rate for goods of the same nature, structure, and function, with similar technical features; the import tax rate decreases from finished products to raw materials; the export tax rate increases from finished products to raw materials.

What are Provisions on Schedule of Preferential Import Tariffs According to the Nomenclature of Taxable Products of Vietnam?

Based on Article 5 Decree 26/2023/ND-CP, the Schedule of Preferential Import Tariffs schedule according to the Nomenclature of Taxable Products is stipulated as follows:

The Schedule of Preferential Import Tariffs Schedule according to the Nomenclature of Taxable Products (Schedule of Preferential Import Tariffs Schedule) as stipulated in Appendix 2 issued along with Decree 26/2023/ND-CP includes:

* Section 1: Stipulates the preferential import tax rate for 97 chapters according to Vietnam's export and import goods list. Content includes: Titles of Parts, Chapters; Explanatory Notes; Sub-group explanatory notes; The Schedule of Preferential Import Tariffs schedule comprises goods descriptions, codes (8 digits) according to Vietnam's export and import goods list, and the preferential import tax rate stipulated for taxable goods.

In the event that Vietnam's export and import goods list is amended or supplemented, the customs declarant declares descriptions and codes according to the amended or supplemented list and applies the tax rate of the amended or supplemented code.

* Section 2: Stipulates the list of goods and the preferential import tax rates for certain items under Chapter 98.

Content includes: Explanatory Notes; Classification methods, conditions, procedures to apply preferential import tax rates stipulated in Chapter 98, inspection reports on the usage of goods entitled to preferential import tax rates stipulated in Chapter 98; List of goods and preferential import tax rates.

- Items listed in the list of goods and preferential import tax rates stipulated in Clause 3, Section 2, Appendix 2 issued with this Decree shall apply the preferential import tax rate stipulated in Clause 3, Section 2, Appendix 2.

Classification and preferential import tax rate application under Chapter 98 for items such as completely knocked down sets (CKD kits) of cars, non-assembly kits of cars, chassis fitted with engines and cabins (chassis with cabs) are carried out according to the provisions of Clause 1.1, Section 2, Appendix 2.

Items include:

Alloy steel containing Boron and/or Chromium and/or Titanium under group 98.11;

Skin filling agents, Protective function cream, Scar-reducing gel under group 98.25;

Nylon cord fabric 1680/D/2 and 1890 D/2 under group 98.26;

Copper wire with a maximum cross-sectional dimension over 6 mm but not exceeding 8 mm under group 98.30;

Primary polypropylene plastic particles under group 98.37;

Non-alloy steel, irregularly coiled, hot-rolled under group 98.39;

Set-top-boxes under group 98.46;

Web division made from Nano-composite Polymeric Alloy material (Neoweb) under group 98.47 applies preferential import tax rates in Chapter 98 if specific standards and technical specifications stipulated in Clause 1, Section 2, Appendix 2 are met.

- Classification methods, conditions, procedures to apply preferential import tax rates stipulated in Chapter 98, inspection reports on the usage of goods entitled to preferential import tax rates stipulated in Chapter 98: Implement according to the provisions of Clause 2, Section 2, Appendix 2.

- List of goods and preferential import tax rates stipulated in Chapter 98 for certain items include: Item codes; goods descriptions; corresponding codes of the item in Section 1, Appendix 2 about the Schedule of Preferential Import Tariffs Schedule according to the Nomenclature of Taxable Products; preferential import tax rates stipulated in Chapter 98.

- Goods meeting conditions for classification into Chapter 98 and eligible to apply special preferential import tax rates according to current regulations can choose to apply special preferential import tax rates stipulated in special Schedule of Preferential Import Tariffs schedules or preferential import tax rates stipulated in Chapter 98 of the Schedule of Preferential Import Tariffs Schedule.

For items classified into Chapter 98, when making customs procedures, the customs declarant declares the column "Corresponding item code in Section 1, Appendix 2" mentioned in Chapter 98, and simultaneously records alongside the item code of Chapter 98.