The Ministry of Finance (MOF) has submitted to the Government a draft decree on the Preferential Export Tariff and Special Preferential Import Tariff which is designed for Vietnam to implement its commitments under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in the 2019-22 period.
The Ministry of Finance (MOF) has submitted to the Government a draft decree on the Preferential Export Tariff and Special Preferential Import Tariff which is designed for Vietnam to implement its commitments under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in the 2019-22 period.
The proposed Preferential Export Tariff covers 519 tariff lines, with the average duty rate to be truncated step by step to 19.1 percent, 17.4 percent, 15.7 percent and 14.1 percent in 2019, 2020, 2021 and 2022, respectively.
Goods exported to Mexico would be entitled to preferential export duty rate from the first year of the duty reduction roadmap, meanwhile exports to Australia, Canada, Japan, New Zealand and Singapore would enjoy duty preferences from the second year.
To be eligible for preferential export duty rates under the CPTPP, goods must be accompanied with transport documents and import declarations showing the destination lying within the territories of the above countries. In case of failure to produce these documents, ordinary duty rates would apply.
If the preferential export duty rate applicable to a goods item is lower than that prescribed for such item in Decree 125 of 2017, the preferential export duty rate would apply. As for items not listed in the Export Tariff attached to Decree 125 and items liable to a preferential export duty rate equal to or higher than the rate specified in Decree 125, the preferential export duty rate would not apply.
Goods exported from the domestic market to the country’s non-tariff zones would not be entitled to preferential export duty rates, according to the draft.
The draft also draws a Special Preferential Import Tariff with 10,216 tariff lines with 8-digit headings and 1,442 tariff lines with 10-digit headings. The average duty rate would be 9.1 percent in 2019, and then gradually cut to 7.7 percent in 2020, 6.3 percent in 2021, and 4.8 percent in 2022. The roadmap for implementation of the Special Preferential Import Tariff would be similar to that applicable to the Preferential Export Tariff. Particularly, goods imported from Vietnam’s non-tariff zones into the domestic market would be entitled to preferential duty rates from the second year of the duty reduction roadmap.
The MOF also introduces a list of used cars subject to tariff quotas and their special preferential import duty rates under CPTPP.
Goods exported to Mexico would be entitled to preferential export duty rate from the first year of the duty reduction roadmap, meanwhile exports to Australia, Canada, Japan, New Zealand and Singapore would enjoy duty preferences from the second year.
To be eligible for preferential export duty rates under the CPTPP, goods must be accompanied with transport documents and import declarations showing the destination lying within the territories of the above countries. In case of failure to produce these documents, ordinary duty rates would apply.
If the preferential export duty rate applicable to a goods item is lower than that prescribed for such item in Decree 125 of 2017, the preferential export duty rate would apply. As for items not listed in the Export Tariff attached to Decree 125 and items liable to a preferential export duty rate equal to or higher than the rate specified in Decree 125, the preferential export duty rate would not apply.
Goods exported from the domestic market to the country’s non-tariff zones would not be entitled to preferential export duty rates, according to the draft.
The draft also draws a Special Preferential Import Tariff with 10,216 tariff lines with 8-digit headings and 1,442 tariff lines with 10-digit headings. The average duty rate would be 9.1 percent in 2019, and then gradually cut to 7.7 percent in 2020, 6.3 percent in 2021, and 4.8 percent in 2022. The roadmap for implementation of the Special Preferential Import Tariff would be similar to that applicable to the Preferential Export Tariff. Particularly, goods imported from Vietnam’s non-tariff zones into the domestic market would be entitled to preferential duty rates from the second year of the duty reduction roadmap.
The MOF also introduces a list of used cars subject to tariff quotas and their special preferential import duty rates under CPTPP.
(Source:VLLF)
