The Vietnamese government has promulgated Decree 90/2021/ND-CP on Vietnam's special preferential import tariff Vietnam to implement the Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People's Democratic Republic.
Article table of contents
Special preferential import tariffs for the implementation of the Vietnam-Laos Trade Agreement
Regulations on special preferential import tax rates and conditions for enjoying special preferential import tax rates under a trade agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People's Democratic Republic from October 4, 2020 to October 4, 2023.
Specifically, to promulgate together with this Decree the following appendices:
(1) Appendix I - List of goods entitled to 50% reduction of Vietnam's ATIGA tax rate under the Vietnam-Laos Trade Agreement.
Including 14 product lines such as bird eggs and poultry eggs in shell, raw or preserved or cooked; rice; cane or beet sugar and chemically pure sucrose in solid form;
The items specified in this Appendix are subject to the special preferential tax rate, reducing 50% of Vietnam's ATIGA tax rate as follows:
- Goods imported from Lao which is on the list of goods specified in Appendix I, are entitled to a special preferential import tax rate equal to 50% of the ATIGA tax rate specified in the promulgated Special Preferential Import Tariff enclosed with Decree 156/2017/ND-CP and amendments and supplements (if any), if conditions are met for enjoying special preferential import tax rates under the Vietnam trade agreement – Laos.
- In case the ATIGA tax rate is higher than the preferential import tax rate specified in Decree 57/2020/ND-CP (hereinafter referred to as the MFN Tariff) and amendments and supplements (if any) ), then apply the special preferential import tax rate equal to 50% of the tax rate specified in the MFN Tariff.
Conditions for enjoying special preferential import tax rates under the Vietnam-Laos trade agreement
Imported goods specified in Articles 4, 5 and 7 of Decree 90/2021/ND-CP eligible for special preferential import tax rates under the Vietnam-Laos Trade Agreement must fully satisfy the requirements and conditions:
1. Imported from Laos into Vietnam.
2. Satisfy the provisions of the current law on Rules of Origin applicable to goods entitled to preferential tariffs from Vietnam - Laos and have a Certificate of Origin form issued by the competent authority of Laos according to regulations.
(2) Appendix II - List of goods not entitled to preferential tariffs under the Vietnam - Laos Trade Agreement.
According to this Appendix, there are 385 product lines not enjoy preferential tariffs under the Vietnam - Laos Trade Agreement when imported into Vietnam, mainly poppy seeds; tobacco products and tobacco leaf waste; mineral fuels, mineral oils and products of their distillation, bituminous substances, mineral waxes; waste pharmaceuticals, drugs to treat cancer, HIV/AIDS or incurable diseases; explosives, pyrotechnic products, matches, flammable alloys, other combustible preparations and a number of other chemical products; rubber and articles of rubber; vehicles other than railway or tramway vehicles, and parts and accessories thereof; weapons and ammunition, their parts and accessories.
(3) Appendix III - List of goods entitled to the annual tariff quota regime under the Vietnam - Laos Trade Agreement.
Appendix III stipulates 13 product lines entitled to a special preferential tax rate of 0% for the quantity within the quotas specified in this Appendix, specifically:
- For unprocessed tobacco leaves and tobacco waste - HS code 24.01:
+ Unprocessed tobacco and tobacco scraps originating from Laos are on the list of imported goods subject to the tariff-rate quota regime of 3,000 tons/year when imported into Vietnam if they meet the requirements amd conditions for enjoying special preferential import tax rates under the Vietnam-Laos trade agreement and regulations of the Ministry of Industry and Trade of Vietnam on import under tariff quotas, then enjoy special preferential import tax rate of 0%
+ In case of exceeding the above-mentioned quota quantity, they are not entitled to special preferential import tax rates under the Vietnam-Laos Trade Agreement.
- For rice products - HS code 10.06:
+ Rice products originating from Laos are imported within a quota of 70,000 tons/year when imported into Vietnam if they meet the conditions for enjoying special preferential import tax rates under the Vietnam-Laos trade agreement, the quantity imported in excess of the tariff quota shall apply the tax rate specified in Article 5 of Decree 90/2021 on incentives to reduce 50% of the ATIGA tax rate.
Note:
- All of the above items are classified according to the AHTN 2017 system.
- The certificate of origin of the above goods is issued according to the form S.
Decree 90/2021/ND-CP of Vietnam takes effect from October 19, 2021.
Bao Ngoc
