DECREE

PREFERENTIAL EXPORT TARIFF SCHEDULE AND SPECIAL PREFERENTIAL IMPORT TARIFF SCHEDULE UNDER THE COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANS-PACIFIC PARTNERSHIP IN THE 2019 – 2022 PERIOD

Pursuant to Law on Organization of the Government dated June 19, 2015;

Pursuant to Law on export and import taxes dated April 06, 2016;

Pursuant to Law on Customs dated June 23, 2014;

Pursuant to Law on Tax Administration dated November 29, 2006 and Amendments to some articles concerning Law on Tax Administration dated November 20, 2012;

Pursuant to Law on International Agreement dated April 9, 2016;

Pursuant to Resolution No. 72/2018 / QH14 approving the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and relevant documents dated November 12, 2018;

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At the request of the Minister of Finance;

The Government issued a Decree on the Preferential Export Tariff Schedule, the Special Preferential Import Tariff Schedule of Vietnam under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership in the 2019 - 2022 period.

Article 1. Scope

This Decree promulgates the preferential export tariff schedule, the special preferential import tariff schedule under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (hereinafter referred to as the CPTPP Agreement) in the 2019 - 2022 period and conditions for application of preferential export duty rates and special preferential import duty rates under this Agreement.

Article 2. Applicable entities

1. Taxpayers under the provisions of Law on Import and Export Tax.

2. Customs authorities and officials.

3. Organizations and individuals with rights and obligations related to exports and imports.

Article 3. Preferential export tariff schedule and special preferential import tariff schedule under the CPTPP Agreement in the 2019 – 2022 period

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Appendix 1. Preferential export tariff schedule under the CPTPP Agreement in the 2019 – 2022 period.

Appendix 2. Special preferential import tariff schedule under the CPTPP Agreement in the 2019 – 2022 period. List of goods and special preferential import duty rates for used cars applying tariff-rate quotas under the CPTPP Agreement.

2. The "Codes" and the "Descriptions" in the Appendixes promulgated together with this Decree are based on Vietnam’s Nomenclature of Exports and Imports and classified by 8-digit or 10-digit code. The application of the descriptions of goods at up to 8-digit level in this Decree is developed based on the Vietnam’s Nomenclature of Exports and Imports and documents amending the Vietnam’s Nomenclature of Exports and Imports.

Classification of goods shall comply with the Vietnamese laws.

3. The “Duty rates” (%) in Appendix I and Appendix 2, the “Fixed duty (USD / unit)" in Appendix 2: Duty rates corresponding to countries entitled to preferential treatment shall apply to the periods specified in Clause 3, Article 4 and Clause 5, Article 5 of this Decree.

4. Column “Note” in Appendix 2 has the symbols:

a) The “TRQ1” symbol: Goods subject to tariff-rate quotas are based on the annual tariff-rate quotas prescribed by the Ministry of Industry and Trade.

a) The “TRQ2” symbol: Goods subject to tariff-rate quotas are based on the annual tariff-rate quotas under the CPTPP Agreement prescribed by the Ministry of Industry and Trade.

c) The symbol of imported goods that are not eligible for the special preferential import tariff under the CPTPP Agreement

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1. The preferential export tariff schedule specified in Appendix I enclosed with this Decree includes codes, descriptions and preferential duty rates on exports applied in different periods to each country specified at Point a, Clause 4 of this Article for each code of goods.

2. Goods that are not included in the preferential export tariff specified in Appendix I enclosed with this Decree shall be entitled to the duty rate of 0% when exporting to the countries specified in Point a, Clause 4 of this Article.

3. Duty rates applied in the 2019 – 2022 period:

a) The United Mexican States applies duty rates specified in Appendix I:

a.1) From January 14, 2019 to December 31, 2019 at the column with the symbol "(I)".

a.2) From January 1, 2020 to December 31, 2020 at the column with the symbol "(II)".

a.3) From January 1, 2021 to December 31, 2021 at the column with the symbol "(III)".

a.4) From January 1, 2022 to December 31, 2022 at the column with the symbol "(IV)".

b) Australia, Canada, Japan, New Zealand, the Republic of Singapore apply the duty rate prescribed in Appendix I:

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b.2) From January 1, 2020 to December 31, 2020 at the column with the symbol "(III)".

b.3) From January 1, 2021 to December 31, 2021 at the column with the symbol "(IV)".

b.4) From January 1, 2022 to December 31, 2022 at the column with the symbol "(V)".

4. Conditions for application of preferential export duty rates under the CPTPP Agreement

Goods exported from Vietnam will be eligible for preferential export duty rates specified in Clause 1 and Clause 2 of this Article if:

a) They are imported into the territories of the countries under the CPTPP Agreement, namely:

a.1) Australia;

a.2) Canada;

a.3) Japan;

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a.5) New Zealand;

a.6) Republic of Singapore;

b) There are transport documents (copies) with the destination in the territories of the countries specified at Point a, Clause 4 of this Article.

c) There are import customs declarations proving that the goods exported from Vietnam are imported into the territories of the countries specified in Point a, Clause 4 of this Article (photocopies and translations in English or Vietnamese in case the language on the declaration is not in English).

5. Procedures for application of preferential export duty rates under the CPTPP Agreement

a) At the time of customs formalities, customs declarants make export declarations, application of import duty rates, tax calculation and tax payment under the export tariff according to the list of taxable group of goods specified in Decree No. 125/2017/ND-CP dated November 16, 2017 (Decree No. 125/2017 / ND-CP) amending some of the articles of Decree No. 122/2016 / ND-CP dated September 1, 2016 on the export tariff schedule, preferential import tariff schedule, list of goods and fixed duties, mixed duties, out-of-quota import duties and amendments.

b) Within 1 year from the date of registration of export declarations, the customs declarant shall submit all documents proving that the goods satisfy the regulations specified at Points b and c, Clause 4 of this Article (01 copy) and make an additional declarations to enjoy the preferential export duty rate under the CPTPP Agreement. After the expiration of the above-mentioned 1-year time limit, exported goods shall not enjoy the preferential export duty rates under the CPTPP Agreement.

c) Customs authorities shall check applications and preferential export duty rates under the preferential export tariff schedule specified in Appendix I enclosed with this Decree. If exported goods fully meet the conditions specified in Clause 4 of this Article, it will enjoy preferential export duty rates under the CPTPP Agreement and handle the amounts of overpaid taxes for customs declarants according to the law on tax administration.

Article 5. Special preferential import tariff schedule under the CPTPP Agreement List of goods and special preferential import tariff for used cars subject to tariff-rate quotas under the CPTPP Agreement.

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2. Lists of goods and special preferential import tariff for used cars subject to tariff-rate quotas under the CPTPP Agreement specified in Appendix II issued together with this Decree include codes of codes of goods, descriptions of goods, special preferential import duty rates, fixed duties with the periods of being imported from the countries specified at Point b, Clause 6 of this Article for each code of goods.

3. Special preferential import tariff for used cars under the groups of 87.02, 87.03 and 87.04 subject to tariff-rate quotas is as follows:

a) For imported used cars within tariff-rate quotas under CPTPP Agreement, the special preferential import duty rate is the mixed duty including: duty rate (%) and fixed duties of used cars specified in the list of goods and the special preferential import duty specified in Appendix II issued together with this Decree at the time of registration of customs declarations.

Tax amount subject to the mixed duty on used cars equals (=) X plus (+) Y.

Where:

X means the taxable price for used cars in accordance with the laws multiplied (x) by the duty rate on equivalent used cars at the time of registration of customs declarations.

Y means the fixed duties on equivalent used cars at the time of registration of customs declarations.

For imported used cars outside tariff quota rates under the CPTPP Agreement, the import duty rate is applied according to Decree No. 125/2017 / ND-CP dated November 16, 2017, amending and supplementing a number of articles of Decree No. 122/2016 / ND-CP dated September 1, 2016 on the export tariff, preferential import tariff, list of goods and fixed duties, mixed duties, out-of-quota import duties and amendments.

4. Special preferential import tariff for goods under the groups of 04.07, 17.01, 24.01 and 25.01 subject to tariff-rate quotas is as follows:

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b) For imported goods outside TRQ1 or TRQ2, the import tariff is applied according to the current law.

5. Duty rates applied to the 2019 – 2022 period:

a) The Federation of Mexico applies the duty rate specified in Appendix I:

a.1) From January 14, 2019 to December 31, 2019 at the column with the symbol "(I)".

a.2) From January 1, 2020 to December 31, 2020 at the column with the symbol "(II)".

a.3) From January 1, 2021 to December 31, 2021 at the column with the symbol "(III)".

a.4) From January 1, 2022 to December 31, 2022 at the column with the symbol "(IV)".

b) Australia, Canada, Japan, New Zealand, the Republic of Singapore, and the Socialist Republic of Vietnam (goods from non-tariff areas imported into the domestic market) apply the duty rate specified in Appendix II:

b.1) From January 14, 2019 to December 31, 2019 at the column with the symbol "(II)".

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b.3) From January 1, 2021 to December 31, 2021 at the column with the symbol "(IV)".

b.4) From January 1, 2022 to December 31, 2022 at the column with the symbol "(V)".

6. Conditions for application of preferential import duty rates under the CPTPP Agreement

Imported goods will be eligible for the special preferential import tariff under the CPTPP Agreement if:

a) They are included in the special preferential import tariff or the list of goods and special preferential import duty rate for used cars subject to tariff-rate quotas under the CPTPP Agreement.

b) They are imported into Vietnam from the member countries under the CPTPP Agreement, namely:

b.1) Australia;

b.2) Canada;

b.3) Japan;

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b.5) New Zealand;

b.6) Republic of Singapore;

b.7) Socialist Republic of Vietnam (Goods from the non-tariff area imported into the domestic market).

c) They are transported into Vietnam from countries specified in Point b, Clause 6 of this Article. In case of transiting, goods shall meet the transit conditions under the CPTPP Agreement, specifically:

c.1) The origins of goods transported to Vietnam will be unchanged in case of no transit through the territory of any non-member states under the CPTPP Agreement.

c.2) In case of goods transported through the territories of any non-member states under the CPTPP Agreement, the origins of goods will be unchanged if:

- They do not undergo any production and processing stages outside the territories of the countries specified in Point b, Clause 6 of this Article, except for:

+ Material handling, splitting of goods, warehousing, labelling or marking as required by Vietnam; or

+ Other necessary activities for good preserve of goods or for transport of goods to the territory of Vietnam.

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d) They meet the conditions on origin of goods and have documents proving the origin of goods under the CPTPP Agreement.

7. Goods imported within TRQ1 and TRQ2 will be eligible for preferential tariff treatment under the CPTPP Agreement announced by the Ministry of Industry and Trade.

Article 6. Effect

1. This Decree takes effect from June 26, 2019.

2. For export declarations and import declarations registered from January 14, 2019 to before the effective date of this Decree, if goods meet the conditions for enjoying the preferential export duty rates and the special preferential import duty rates specified in this Decree and payment for higher duty rate is made, customs authority will handle the excessive amount in accordance with the law on tax administration.

Article 7. Responsibility for the implementation

Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Presidents of People's Committees of central-affiliated provinces and cities as well as relevant individuals and organizations shall be in charge of the execution of this Decision.

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Nghị định 57/2019/NĐ-CP về Biểu thuế xuất khẩu ưu đãi, Biểu thuế nhập khẩu ưu đãi đặc biệt để thực hiện Hiệp định Đối tác Toàn diện và Tiến bộ xuyên Thái Bình Dương giai đoạn 2019-2022