Decree 122/2016/ND-CP, effective from September 1, 2016, on the Export Tariff Schedule, Preferential Import Tariff Schedule, List of Goods and Absolute Tax Rates, Mixed Taxes, Import Taxes beyond the Tariff Quota.
Article table of contents
Issued together with Decree 04 Appendix
- Appendix I: Export tariff schedule by the list of taxable items;- Appendix II: Preferential import tariff schedule by the list of taxable items;- Appendix III: List of goods and absolute tax rates, mixed taxes for passenger cars with up to 15 seats (including the driver), used;- Appendix IV: List of goods and import tax rates outside the quota for goods under the tariff quota.
Gold jewelry applies a tax rate of 0%
According to the Decree, an export tax rate of 0% is applied to gold jewelry and parts thereof (HS code 71.13), industrial products and parts thereof made of gold (HS code 71.14), and other gold products (HS code 71.15) if they meet the following conditions:
- Customs documentation for exported goods as regulated;- A test result certificate determining gold content below 95% issued by a licensed testing organization (one original copy for comparison, one photocopy to be submitted to the customs authority).- No need to present a test result certificate determining gold content for exports in the form of processing for export or those that meet the conditions for being produced entirely from imported materials, exported in the form of export production for the following items:- Gold jewelry and parts thereof (HS code 71.13),- Industrial products and parts thereof made of gold (HS code 71.14),- Other gold products (HS code 71.15).
For export in the form of export production, companies must present the State Bank's gold material import license in accordance with the regulations during customs clearance procedures.
Fertilizers are subject to a tax rate of 5%
Fertilizers under HS codes 31.01, 31.02, 31.03, 31.04, and 31.05 that have the value of resources, minerals plus energy costs accounting for 51% or more of the product cost shall apply an export tax rate of 5%.
For fertilizers not falling under the aforementioned cases, the export tax rates stipulated for HS codes 31.01, 31.02, 31.03, 31.04, and 31.05 in the export tariff schedule in Appendix 1 issued together with Decree 122 shall apply.
Applying tax rates according to a schedule for petrochemical products
Petrochemical products, including Benzene under HS codes 2707.10.00 and 2902.20.00; Xylene under HS code 2707.30.00, P-xylene under HS code 2902.43.00, and Polypropylene under HS codes 3902.10.30 and 3902.10.90 (excluding primary form Polypropylene under HS code 98.37), shall apply the preferential import tax rates according to the schedule.
- From September 1, 2016 to December 31, 2016, the preferential import tax rate is 1%.- From January 1, 2017 onwards, these items shall apply the preferential import tax rate of 3%.
Guidance on applying import tax on used cars
- The absolute tax rate in Appendix III applies to passenger cars ≤ 09 seats, engine capacity <1500cc under HS code 87.03, and passenger cars with 10-15 seats under HS code 87.02;- The mixed tax rate in Appendix III applies to passenger cars ≤ 09 seats, engine capacity ≥ 1500cc under HS code 87.03;- A preferential import tax rate of 150% applies to passenger cars ≥ 16 seats under HS code 87.02 and goods transport vehicles with a total load weight of up to 05 tons under HS code 87.04 (excluding refrigerated trucks, waste collection trucks with waste compression components, tankers, armored trucks for transporting valuable goods, cement bulk carriers, and removable lift dump trucks);- The tax rate is 1.5 times the preferential import tax rate of new cars of the same type under the HS code stipulated in Section I Appendix II for other cars under HS codes 87.02, 87.03, 87.04.
More details can be found in Decree 122/2016/ND-CP.
