Vietnam - Cambodia special preferential import tariff schedule for the period 2023 - 2024

Vietnam - Cambodia special preferential import tariff schedule for the period 2023 - 2024 (Internet image)

Regarding this matter, LawNet would like to answer as follows: 

On January 24, 2024, the Government issued Decree 05/2024/ND-CP on Vietnam's special preferential import duty rates for implementing the Bilateral Trade Promotion Agreement between Vietnam and Cambodia for the period 2023-2024.

1. Vietnam-Cambodia Special Preferential Import Tariff for the Period 2023-2024

Decree 05/2024/ND-CP promulgated Vietnam's special preferential import duty rates for implementing the Vietnam-Cambodia Bilateral Trade Promotion Agreement for the period 2023-2024 in Appendix I.

The list of imported goods according to Vietnam's tariff quota to implement the Vietnam-Cambodia Bilateral Trade Promotion Agreement for the period 2023–2024 is provided in Appendix II.

The list of border gates allowed for customs clearance of goods enjoying the special preferential import duty rates according to the Vietnam-Cambodia Bilateral Trade Promotion Agreement for the period 2023–2024 is provided in Appendix III.

2. Conditions for applying the special preferential import duty rates in Vietnam 

The conditions for applying the special preferential import duty rates in Vietnam  are stipulated in Article 4 of Decree 05/2024/ND-CP as follows:

Imported goods eligible for the special preferential import duty rates of Vietnam to implement the Vietnam-Cambodia Bilateral Trade Promotion Agreement for the period 2023-2024 must meet the following conditions:

- They belong to the list of goods subject to the special preferential import duty rates to implement the Vietnam-Cambodia Bilateral Trade Promotion Agreement for the period 2023-2024 as issued in Appendix I accompanying Decree 05/2024/ND-CP.

- They have a Certificate of Origin Form S (C/O Form S) issued by the competent authority of the Kingdom of Cambodia.

- They are allowed to pass through the border gates specified in Appendix III accompanying Decree 05/2024/ND-CP.

3. Vietnam's duty rates and tariff quotas for raw rice and unprocessed tobacco originating from the Kingdom of Cambodia

- For raw rice and unprocessed tobacco specified in Appendix I, if they meet the conditions stipulated in Article 4 of Decree 05/2024/ND-CP and the regulations of the Ministry of Industry and Trade on imports according to the tariff quota under the Vietnam-Cambodia Bilateral Agreement for the period 2023-2024, they shall enjoy the preferential import duty rates specified in Appendix I, based on the quantity of the tariff quota prescribed in Appendix II issued together with Decree 05/2024/ND-CP.

- For raw rice: In cases where the quantity of imported raw rice exceeds the tariff quota prescribed in Appendix II issued together with Decree 05/2024/ND-CP (referred to as exceeding the quota), the quantity of imports exceeding the quota may be subject to the preferential import duty rates of the free trade agreements to which both Vietnam and Cambodia are members (if they meet the conditions stipulated in the corresponding Decrees on preferential import tariffs);

Or they may be subject to the preferential import tariff rates stipulated in the Government's legal documents on export tariffs, preferential import tariffs, the list of goods and absolute tariff rates, mixed tariffs, import tariffs outside the tariff quota, and any amendments or supplements (if any).

- For unprocessed tobacco:

+ In cases where the quantity of imported unprocessed tobacco exceeds the quota prescribed in Appendix II issued together with Decree 05/2024/ND-CP but still falls within the overall quota under the WTO and meets the conditions stipulated in Vietnam's legal documents on tariff quotas, the quantity shall be subject to the preferential import duty rates stipulated in the Government's legal documents on export tariffs, preferential import tariffs, the list of goods and absolute tariff rates, mixed tariffs, import tariffs outside the tariff quota, and any amendments (if any).

+ In cases where the quantity of imported unprocessed tobacco exceeds the quota prescribed in Appendix II issued together with Decree 05/2024/ND-CP and exceeds the overall quota under the WTO, the quantity shall be subject to the import duty rates outside the tariff quota for unprocessed tobacco as stipulated in the Government's legal documents on export tariffs, preferential import tariffs, the list of goods and absolute tariff rates, mixed tariffs, import tariffs outside the tariff quota, and any amendments (if any).

- The quantity of imported raw rice and unprocessed tobacco falling under the cases specified in points a and b of this provision shall not be counted towards the quota for the corresponding goods prescribed in Appendix II issued together with Decree 05/2024/ND-CP:

+ Raw rice produced by Vietnamese enterprises, households, business households, and individuals investing in and cultivating rice in the provinces bordering Vietnam in Cambodia shall be imported into Vietnam in accordance with the current laws on export and import duties.

+ Raw rice and unprocessed tobacco originating from Cambodia imported into Vietnam by Vietnamese enterprises for re-export to other markets shall be carried out in accordance with the temporary import for re-export mechanism of the Government of the Socialist Republic of Vietnam and the regional and international agreements in which both parties participate.

Nguyen Ngoc Que Anh

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