Decree 26/2023/ND

Nov 30, 2023

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THE GOVERNMENT

______

No. 26/2023/ND-CP

THE SOCIALIST REPUBLIC OF VIETNAM

Independence - Freedom - Happiness

____________________

Hanoi, May 31, 2023

DECREE

On the Export Tariff, the Preferential Import Tariff and the list of commodity items and their specific duty rates, combined duty rates and out-of-quota duty rates

________________

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Law on Import Duty and Export Duty dated April 06, 2016;

Pursuant to the Law on Tax Administration dated June 13, 2019;

Pursuant to the Law on Customs dated June 23, 2014;

Pursuant to the National Assembly's Resolution No. 71/2006/QH11 dated November 29, 2006, ratifying the Protocol on the Accession of the Socialist Republic of Vietnam to the Agreement establishing the World Trade Organization;

At the proposal of the Minister of Finance;

The Government promulgates the Decree on the Export Tariff, the Preferential Import Tariff and the list of commodity items and their specific duty rates, combined duty rates and out-of-quota duty rates.

Article 1. Scope of regulation

This Decree promulgates the Export Tariff, the Preferential Import Tariff and the List of commodity items and their specific duty rates, combined duty rates and out-of-quota duty rates.

Article 2. Subjects of application

1. Duty payers prescribed in the Law on Import Duty and Export Duty.

2. Customs offices and customs officers.

3. Organizations and individuals that have rights and obligations relating to imports and exports.

Article 3. To promulgate the Export Tariff, the Preferential Import Tariff and the list of commodity items and their specific duty rates, combined duty rates and out-of-quota duty rates

To promulgate together with this Decree:

1. Appendix I - The Export Tariff according to the list of dutiable commodity items.

2. Appendix II - The Preferential Import Tariff according to the list of dutiable commodity items.

3. Appendix III - The List of the commodity items of used passenger cars with 15 seats or less and their specific duty rates and combined duty rates.

4. Appendix IV - The List of commodity items subject to tariff quota and their out-of-quota duty rates.

Article 4. The Export Tariff according to the list of dutiable commodity items

1. The Export Tariff according to the list of dutiable commodity items in Appendix I to this Decree includes commodity codes (headings) and descriptions of commodities and the export duty rate for each export duty-liable group of items or item. For exports not included in the Export Tariff, customs declarants shall declare the 8-digit headings of such commodity items in the Preferential Import Tariff specified in Section I of Appendix II to this Decree and are not required to declare duty rates on export declarations.

2. Export items of the group No. 211 are those that meet both the conditions below:

a) Condition 1: Being supplies, raw materials or semi-finished products (below collectively referred to as goods) other than those of groups No. 01 thru 210 in the Export Tariff.

b) Condition 2: Being processed directly from main materials that are natural resources and minerals with the total value plus energy cost accounting for 51% or more of the product cost. The determination of whether the total value of natural resources and minerals plus energy cost accounts for 51% or more of the product cost must comply with Decree No. 100/2016/ND-CP dated July 1, 2016, detailing and guiding the implementation of a number of articles of the Law Amending and Supplementing a Number of Articles of the Law on Value-Added Tax, the Law on Excise Tax, the Law on Tax Administration, the Government's Decree No. 146/2017/ND-CP dated December 15, 2017, amending and supplementing a number of articles of Decree No. 100/2016/ND-CP and their amending and supplementing documents (if any).

Exports in the cases of exclusion specified in Clause 1 Article 1 of Decree No. 146/2017/ND-CP dated December 15, 2017, are not of the group No. 211 in the Export Tariff promulgated together with this Decree.

3. Commodity codes and export duty rates of commodity items of group No. 211:

For commodity items detailed into 8-digit headings and commodity description of groups 25.23, 27.06, 27.07, 27.08, 68.01, 68.02, and 68.03 in No. 211 of the Export Tariff, customs declarants shall declare the export duty rates corresponding to such headings as specified in No. 211. In case of failing to declare the export duty rates under regulations specified in the group No. 211, the taxpayers must submit the declaration of the ratio of the value of natural resources and minerals plus energy cost of production costs of exports made according to Form No. 14 in Appendix II to this Decree at the time of carrying out customs procedures to prove that declared commodities have a total value of natural resources and minerals plus energy cost accounting for less than 51% of production costs. In case taxpayers are trading enterprises that purchase commodities from manufacturing enterprises or other trading enterprises to export without declaring export duty rates under regulations specified in the group No. 211, taxpayers shall, based on the information provided by the manufacturing enterprises, make declarations according to Form No. 14 provided in Appendix II as mentioned above to prove that the ratio of natural resources and minerals plus energy cost accounts for less than 51% of production costs. Taxpayers shall take responsibility before the law for the accuracy of their declarations.

For exports in the group No. 211 that have not yet been detailed into 8-digit headings and satisfy conditions specified in Clause 2 of this Article, customs declarants shall declare exports according to the 8-digit headings in the Preferential Import Tariff provided in Section I of Appendix II to this Decree and declare the export duty rate of 5%.

Article 5. Preferential Import Tariff according to the list of dutiable commodity items

The Preferential Import Tariff according to the list of dutiable commodity items (Preferential Import Tariff) in Appendix II to this Decree includes:

1. Section I: Provisions on preferential import duty rates applicable to 97 chapters according to Vietnam's list of imported goods, including titles of Parts, Chapters, Annotations and Group Annotations; the Import Tariff with detailed commodity descriptions and headings (8-digit) according to Vietnam's list of imported goods, and preferential import duty rates for dutiable commodity items.

In case the List of Vietnam's imported and exported goods is revised, customs declarants shall declare commodity descriptions and headings based on the revised list and apply duty rates applicable to revised headings.

2. Section II: Provisions on commodity headings and preferential import duty rates for a number of commodity items under Chapter 98, including annotations; classification methods and conditions and procedures for application of the preferential import duty rates specified in Chapter 98, report on inspection and finalization of the use of goods eligible for the preferential import duty rates specified in Chapter 98; the list of commodity items and their preferential import duty rates.

a) For goods listed in the list of commodity items and their preferential import duty rates specified in Clause 3 Section II of Appendix II to this Decree, the preferential import duty rates specified in Clause 3 Section II of Appendix II shall apply.

The classification of commodity headings and application of preferential import duty rates specified in Chapter 98 for completely knocked down kits (auto CKD), non-synchronous auto parts kits and automobile frame fitted with engines and cabs (rolling frame fitted with cabs) must comply with Clause 1.1 Section II of Appendix II.

The commodity items of alloy steel containing boron and/or chromium and/or titanium under heading 98.11; filler, barrier cream and scar reduction gel under heading 98.25; nylon fabric 1680/D/2 and 1890 D/2 under heading 98.26; copper wire of a cross-section exceeding 6mm but not exceeding 8mm under Heading 98.30; primary polypropylene granules under heading 98.37; and non-alloy steel, hot-rolled, in bars or irregularly wound coils, under heading 98.39; Set-top-boxes of heading 98.46; Network-shaped box products made from Nano-composite Polymeric Alloy (Neoweb) materials of heading 98.47, are eligible for the preferential import duty rates specified in Chapter 98, if meeting the technical standards and specifications specified in Clause 1 Section II of Appendix II.

The classification methods and conditions and procedures for application of the preferential import duty rates specified in Chapter 98, report on inspection and finalization of the use of goods eligible for the preferential import duty rates specified in Chapter 98 must comply with Clause 2 Section II of Appendix II.

c) The list of commodity items and their preferential import duty rates specified in Chapter 98 for a number of commodity items, including headings, commodity descriptions; corresponding headings of such commodity items in Section I of Appendix II - Preferential Import Tariff according to the list of dutiable commodity items; preferential import duty rates specified in Chapter 98.

d) For goods that meet all conditions for being classified into Chapter 98 and meet all conditions for application of specially preferential import duty rates under current regulations, either of the particularly preferential import duty rates specified in the Preferential Import Tariffs and the preferential import duty rates specified in Chapter 98 of the Preferential Import Tariff shall be opted for.

For commodity items classified into Chapter 98, when carrying out customs procedures, customs declarants shall declare in the column "Corresponding headings in Section I of Appendix II" as provided in Chapter 98 and note next to the headings of Chapter 98.

Article 6. Preferential import duty rates applicable to mechanical machinery

Mechanical machinery under headings 84.54 to 84.63 are eligible for preferential import duty rates as follows:

1. Mechanical machinery which cannot be manufactured at home are eligible for the preferential import duty rate of 0%. Mechanical machinery mentioned at this Clause are those not included in the Ministry of Planning and Investment's regulations on the list of machinery and equipment that can be domestically manufactured.

2. Mechanical machinery other than those specified in Clause 1 of this Article are eligible for the preferential import duty rates applicable to headings 84.54 thru 84.63 in Section I of Appendix II - Preferential Import Tariff according to the list of dutiable commodity items to this Decree.

Article 7. Import duty for used automobiles

1. For used passenger cars with 9 seats or less of a cylinder capacity of 1,000cc or less under heading 87.03, the specific duty rates specified in Appendix III to this Decree shall apply.

2. For used passenger cars with 9 seats or less of a cylinder capacity of 1,000cc or less under heading 87.02, the specific duty rates specified in Appendix III to this Decree shall apply.

3. For used passenger cars with 16 seats or more under heading 87.02 and motorized cargo vehicles of a gross vehicle weight not exceeding 5 tons under heading 87.04 (except refrigerated trucks, refuse collection vehicles with refuse compressing devices, cistern vehicles, armored vehicles for transporting valuable cargoes, bulk-cement trucks, and hook-lift trucks), the preferential import duty rate of 150% shall apply.

4. The preferential import duty rates for other used automobiles under headings 87.02, 87.03 and 87.04 shall be 1.5 times the preferential import duty rates for brand-new automobiles of the same category under the same headings specified in Section I of Appendix II to this Decree.

Article 8. Preferential import duty rates for automobile parts imported under the Program on duty incentives for automobile manufacture and assembly (below referred to as the Program on duty incentives)

1. For imported automobile parts under heading 98.49 in Section II of Appendix II to this Decree, the preferential import duty rate of 0% shall apply.

a) At the time of registering customs declarations, the customs declarants shall declare and calculate duty for imports at ordinary duty rates, preferential duty rates or specially preferential duty rates under current regulations, and are not yet entitled to the preferential import duty rate of 0% for heading 98.49

b) The application of the preferential import duty rate of 0% to automobile parts under heading 98.49 must comply with Clauses 2, 3, 4, 5, 6, 7 and 8 of this Article.

2. Subjects of application

Enterprises possessing a certificate of eligibility for automobile manufacture or assembly granted by the Ministry of Industry and Trade.

3. Conditions for application

a) Imported automobile parts must meet the following conditions:

a.1) Imported automobile parts are under heading 98.49 and cannot be domestically manufactured and are used for automobile manufacture or assembly in the period of incentive consideration (including parts left in stock from previous periods of incentive consideration to be used for manufacturing or assembling ex-workshop automobiles in subsequent periods of incentive consideration). The identification of parts that cannot be domestically manufactured must comply with the Ministry of Planning and Investment's regulations on the list of materials, supplies and semi-finished products that can be domestically manufactured.

a.2) Imported automobile parts are directly imported by automobile manufacturing or assembling enterprises or under their entrustment or authorization.

a.3) In case an imported automobile part (including imported from many sources and many trips) has an auto body and an auto frame, it must meet the following requirements:

The body of an automobile consists of at least the following assemblies: roof assembly, floor assembly, left side assembly, right side assembly, front assembly, rear assembly and associated arrays (if any) that are separate and not powder coated;

Automobile frame: imported ones with a length of less than 3.7 m, whether or not linked together, must not be powder coated; types with a length of 3.7 m or more, whether or not linked together, are allowed to be powder coated before being imported.

a.4) Imported automobile parts not included in heading 87.07 (auto body, including cabin).

b) For enterprises manufacturing or assembling electric automobiles, automobiles powered by fuel cells, hybrid automobiles, automobiles totally powered by biofuels or automobiles fuelled by natural gases, enterprises are not required to register automobile models when participating in the Program.

b.1) Enterprises are not required to satisfy the condition on minimum output in the first period of participation in the Program and the subsequent period of incentive consideration. If they satisfy the conditions specified in Clause 2, Point a Clause 3, Clause 4, Clause 6, Clause 7, Clause 8 of this Article, the duty rate of 0% may be applied to all imported parts used for manufacturing or assembling automobiles of the group registered for participation in the Program on duty incentives which are ex-workshopped in the period of incentive consideration.

b.2) In subsequent periods of incentive consideration, enterprises must satisfy the condition on minimum output specified at Point b Clause 5 of this Article and the conditions specified in Clause 2, Point a Clause 3, Clause 4, Clause 6, Clause 7, Clause 8 of this Article for application of the duty rate of 0% for all imported parts used for manufacturing or assembling automobiles of the group for which the enterprises satisfy the condition on output and which are ex-workshopped in the period of incentive consideration.

c) For enterprises manufacturing or assembling automobiles fueled by gasoline or oil:

c.1) Condition on emission standards

Enterprises must manufacture or assemble automobiles that conform to level-5 or higher-level emission standards for the period from 2022 onward; and automobiles that conform to level-4 emission standards and have been granted a technical safety quality and environmental protection certificate before January 1, 2022 which still remains valid in accordance with the Government's Decree No. 116/2017/ND-CP dated October 17, 2017, and its amending, supplementing or replacing documents (if any).

c.2) Condition on automobile models

An enterprise manufacturing or assembling automobiles fueled by gasoline or oil may register one or more than one automobile model when participating in the Program on duty incentives. In the course of implementation of the Program on duty incentives, the enterprise may change or add the registered automobile models. The output of changed or added automobile models may be added up to the minimum general output for incentive consideration but must still satisfy the condition on minimum specific output for each period of incentive consideration. Models of automobile groups are prescribed as follows:

Models of passenger cars with 9 seats or less and of a cylinder capacity not exceeding 2,500 cc under heading 87.03 must fully satisfy the following criteria: meeting the same engine criterion; meeting the same body (or body frame) criterion; having a cylinder capacity not exceeding 2,500 cc; and having a fuel consumption rate of under 7.5 liters/100 km. The criterion of fuel consumption rate of under 7.5 liters/100 km shall be determined based on the fuel consumption rate of combined cycle as stated in a certificate of fuel consumption rate granted by the Vietnam Register;

Models of mini buses (passenger cars with between 10 seats and 19 seats under heading 87.02) and buses/passenger cars (passenger cars with at least 20 seats under heading 87.02) must satisfy the same engine criterion and frame criterion;

Models of trucks (motor vehicles for cargo transportation under heading 87.04 and special-use motor vehicles under heading 87.05) must satisfy the same engine criterion and cabin criterion.

The engine criterion of a vehicle model shall be determined based on cylinder capacity or type or engine capacity as stated in a certificate of technical safety quality and environmental protection for manufactured or assembled automobiles granted by the Vietnam Register. The automobile body (or body frame), frame or cabin criterion shall be determined based on basic technical characteristics of automobiles and their frame structure stated in their technical design explanations and technical drawings appraised by the Vietnam Register.

c.3) Condition on minimum general output (manufacturing or assembling output of each automobile group) and minimum specific output (manufacturing or assembling output of automobile models registered for participation in the Program on duty incentives)

An enterprise must satisfy the condition on minimum general output or minimum specific output in one of the following cases:

c.3.1) In case the enterprise satisfies the condition on minimum general output for each automobile group and minimum specific output for at least one automobile model specified for each period of duty incentive consideration at Point a Clause 5 of this Article and satisfies the conditions specified in Clause 2, Points a, c.1, c.2 Clause 3, Clause 4, Clause 6, Clause 7 Clause 8, of this Article, it may enjoy the duty rate of 0% for all imported parts used for manufacturing or assembling the groups of automobiles for which it satisfies the output condition under regulations and which are ex-workshopped during the period of incentive consideration.

In case the enterprise manufactures or assembles both automobiles fueled by gasoline or oil and electric automobiles, automobiles powered by fuel cells, hybrid automobiles or automobiles totally powered by biofuels or automobiles fueled by natural gases, when determining the minimum general output of the group of automobiles fueled by gasoline or oil, the enterprise may add up the output of electric automobiles, automobiles powered by fuel cells, hybrid automobiles or automobiles totally powered by biofuel or automobiles fueled by natural gases manufactured or assembled during the period of incentive consideration to the minimum general output of automobiles fueled by gasoline or oil of the same group upon incentive consideration.

c.3.2) In case the enterprise's actually manufactured or assembled output of one model of passenger cars with up to 9 seats registered during the period of incentive consideration is equal to at least 1.3 times the minimum specific output of models of automobiles with up to 9 seats as specified at Point a Clause 5 of this Article and satisfies the conditions specified in Clause 2, Points a, c.1, c.2 Clause 3, Clause 4, Clause 6, Clause 7 Clause 8, of this Article, the enterprise may enjoy the duty rate of 0% for imported parts used for manufacturing or assembling automobiles of such registered model which are ex-workshopped during the period of incentive consideration.

c.3.3) In case the enterprise's total actually manufactured or assembled output of two models of passenger cars with up to 9 seats registered during the period of incentive consideration is equal to at least 1.5 times the minimum specific output of models of automobiles with up to 9 seats as specified at Point a Clause 5 of this Article and satisfies the conditions specified in Clause 2, Points a, c.1, c.2 Clause 3, Clause 4, Clause 6, Clause 7 Clause 8, of this Article, the enterprise may enjoy the duty rate of 0% for imported parts used for manufacturing or assembling automobiles of such registered models which are ex-workshopped during the period of incentive consideration.

c.3.4) In case the enterprise has registered two or more automobile groups for participation in the Program and the total actually manufactured or assembled output of all automobile groups registered for participation in the Program during the period of incentive consideration is at least equal to the total minimum general output of corresponding automobile groups as specified at Point a Clause 5 of this Article and satisfies the conditions specified in Clause 2, Points a, c.1, c.2 Clause 3, Clause 4, Clause 6, Clause 7 Clause 8, of this Article, the enterprise may enjoy the duty rate of 0% for imported parts used for manufacturing or assembling automobiles of groups registered for participation in the Program which are ex-workshopped during the period of incentive consideration.

c.3.5) In case the first period of incentive consideration of an enterprise manufacturing or assembling automobiles specified at Points c.3.1, c.3.2, c.3.3 and c.3.4 of this Clause is under the required number of months in the period of incentive consideration but the enterprise reaches an output of actually manufactured or assembled automobiles of a group at least equal to the average monthly output as a minimum general output multiplied by the number of months of participation in the Program on duty incentives during the period of incentive consideration, and reaches an output of actually manufactured or assembled automobiles of registered models at least equal to the average monthly output as a minimum specific output multiplied by the number of months of participation in the Program on duty incentives during the period of incentive consideration and, at the same time, satisfies the condition on minimum general output and minimum specific output for the subsequent period of incentive consideration, the automobile parts used for manufacturing or assembling automobiles during the first period of incentive consideration will be eligible for the duty rate of 0% provided the enterprise satisfies the conditions specified in Clause 2, Points a, c.1, c.2 Clause 3, Clause 4, Clause 6, Clause 7 Clause 8, of this Article. In case the period of participation in the Program on duty incentives in the first month is 15 days or more, such period shall be rounded up to one full month. In case the period of participation in the Program on duty incentives in the first month is under 15 days, such month shall not be counted.

4. Periods of incentive consideration

An enterprise may choose a 6-month or 12-month duty incentive consideration period as follows:

a) A 6-month period of incentive consideration is counted from January 1 to June 30 or from July 1 to December 31 every year.

In case the enterprise chooses the 6-month duty incentive consideration period, the overpaid tax amount has been handled for the number of automobile parts for manufacturing and assembling automobiles ex-workshopped during the first 6 months and last 6 months of the year that do not meet the output conditions under the Program on duty incentives, but the total output of the whole year meets the output conditions of the 12-month duty incentive consideration period under the Program on duty incentives, it will still be considered for duty incentives for the last 6 months of the year, and at the same time have its overpaid tax on the number of automobile parts used for manufacturing or assembling automobiles, which are ex-workshopped during the period, settled provided that the provisions of Clause 2, Clause 3, Clause 6, Clause 7, Clause 8 of this Article are satisfied.

b) A 12-month period of incentive consideration is counted from January 1 to December 31 every year.

5. Output of automobiles manufactured or assembled under the Program on duty incentives for automobile manufacture or assembly

a) Automobiles fueled by gasoline or oil.

Unit: Piece

Group

From 2022 to 2027

6-month period of incentive consideration

12-month period of incentive consideration

From

January 1 to June 30

From July 1 to December 31

From July 1 to December 31

I. Passenger cars with 09 seats or less, of a cylinder capacity not exceeding 2,500 cc

1. Minimum general output

11500

11500

23000

2. Minimum specific output for one type of automobile

4500

4500

9000

II. Trucks with a designed gross weight of 5 tons maximum

1. Minimum general output

3500

3500

7000

2. Minimum specific output for one type of automobile or total minimum specific output for two types of automobiles

2000

2000

4000

3. Minimum specific output for one type of automobile meeting EURO 5 emission standards

1000

1000

2000

III. Trucks with a designed gross weight of over 5 tons

1. Minimum general output

2500

2500

5000

2. Minimum specific output for one type of automobile or total minimum specific output for two types of automobiles

1,000

1000

2000

3. Minimum specific output for one type of automobile meeting EURO 5 emission standards

500

500

1000

IV. Mini buses

1. Minimum general output

330

330

660

2. Minimum specific output for one type of automobile

165

165

330

V. Buses/passenger cars

1. Minimum general output

445

445

890

2. Minimum specific output for one type of automobile or total minimum specific output for two types of automobiles

250

250

500

In the period of incentive consideration, in case the automobile model manufactured or assembled by the enterprise has a type that meets the level-4 emission standards according to the regulations on emission standards specified at Point c.1 Clause 3 Article 8 of this Decree, and meets the level-5 emission standards, the enterprise can calculate the output of the automobile type that meets the level-4 and level-5 emission standards to determine the output condition of that model.

For the duty incentive consideration period in 2023, enterprises participating in the Program on duty incentives may add up the output of automobiles manufactured, assembled and ex-workshopped from January 1, 2023 to the effective date of this Decree to consider incentives if they meet the conditions of the Program on duty incentives specified in the Government's Decree No. 57/2020/ND-CP dated May 25, 2020 and Decree No. 101/2021/ND-CP dated November 15, 2021, only the conditions on the minimum knock-down level of automobile parts shall not apply.

b) Electric automobiles, automobiles powered by fuel cells, hybrid automobiles, automobiles totally powered by biofuels, or automobiles fueled by natural gases.

Unit: Piece

Group

From 2022 to 2027

06-month period of incentive consideration

12-month period of incentive consideration

From July 1 to December 30

From July 01 to December 31

From July 1 to December 31

Minimum output for each group: Passenger cars with up to 9 seats; trucks; mini buses; buses/passenger cars

125

125

250

6. Dossiers and procedures for registration for participation in the Program on duty incentives

a) A dossier must comprise:

a.1) An official letter for registration of automobile parts for participation in the Program on duty incentives, made according to Form No. 05 provided in Appendix II to this Decree: 1 original;

a.2) A certificate of eligibility for automobile manufacture or assembly: 1 certificated copy.

b) Procedures for registration for participation in the Program on duty incentives: An enterprise shall submit a dossier for registration for participation in the Program directly or via the e-data system or by post to the customs office of the locality where the enterprise's head office or its manufacturing or assembling plant is located for registration for participation in the Program right after this Decree takes effect or at any time in the year during the period of implementation of the Program. The date of participation in the Program on duty incentives is the date of issuance of the official letter for registration for participation in the Program.

7. Procedures for filling in customs declarations:

A customs declarant shall fill in the item "Type code" as A43 - "Import of commodities under the Program on duty incentives" for imported automobile parts under heading 98.49 for manufacturing or assembling automobiles of groups registered for participation in the Program on duty incentives; and the item "Internal management code of the enterprise": To declare the code "#&7a."

8. Dossiers and procedures for application of the preferential duty rate of 0% to commodities under heading 98.49

a) A dossier must comprise:

a.1) A written request for application of the preferential duty rate of 0% for commodities under heading 98.49, made according to Form No. 06a provided in Appendix II to this Decree: 1 original;

a.2) A report on the actual use of imported automobile parts for manufacturing or assembling automobiles ex-workshopped during the period of incentive consideration, made according to Form No. 06 provided in Appendix II to this Decree: 1 original;

a.3) A list of customs declarations and paid import duty amounts, made according to Form No. 07 provided in Appendix II to this Decree: 1 original;

a.4) Accounting documents showing quantities of imported parts used for manufacturing or assembling automobile groups during the period of incentive consideration: 1 photocopy;

a.5) A sheet of ex-workshop quality inspection of the enterprise, made according to a form issued by the Vietnam Register: copies bearing the enterprise's seal (the number of copies is equal to the number of automobiles manufactured or assembled during the period of incentive consideration);

a.6) A certificate of technical safety quality and environmental protection for manufactured or assembled automobiles: A certified copy or copy enclosed with the original for checking (the number of copies is equal to the number of types of manufactured or assembled automobiles);

a.7) Written explanations about technical designs of automobiles appraised by the Vietnam Register: A certified copy or photocopy enclosed with the original for checking (the number of copies is equal to the number of types of manufactured or assembled automobiles).

b) Procedures for application of the duty rate applicable to heading 98.49:

b.1) Within 60 days from June 30 or December 31, an enterprise shall send a dossier specified at Point a of this Clause to the customs office responsible for receiving dossiers for registration for participation in the Program on duty incentives. In case a dossier is submitted after the expiration of the 60-day time limit, the customs office shall still receive the dossier, conduct inspection and sanction administrative violations under regulations of the Government.

In case the first period of incentive consideration of the enterprise is under 6 months, the enterprise shall submit a dossier specified at Point a of this Clause together with a dossier of request for application of the duty rate of 0% for the subsequent period of incentive consideration.

b.2) The customs office shall base itself on the enterprise's dossier of request to check the latter's eligibility and conditions for application of the Program on duty incentives under Clauses 2 and 3 of this Article, including:

Output of automobiles, based on the number of sheets of ex-workshop quality inspection issued by the enterprise during the period of incentive consideration.

Registered automobile models, based on the certificate of technical safety and environmental protection for manufactured or assembled automobiles granted by the Vietnam Register.

The number of imported automobile parts used (excluding those intended for use but found damaged or having defects), which must be consistent with the number of actually manufactured or assembled automobiles with sheets of ex-workshop quality inspection issued during the period of incentive consideration and based on a report on actual use of automobile parts eligible for import duty incentives, a list of customs declarations, and paid import duty amounts as stated in customs declarations of imports.

b.3) Based on results of checking of the enterprise's dossier, the customs office shall:

In case the dossier is incomplete, request in writing the enterprise to supplement the dossier. In case of a doubt about accuracy of the dossier, the customs office shall carry out inspection at its office or the office of the duty payer in accordance with the law on tax administration.

In case the dossier fully satisfies the conditions for application of the Program on duty incentives and the enterprise has paid a duty amount for imported automobile parts larger than the payable duty amount calculated at the duty rate applicable to commodities under heading 98.49, the customs office shall issue a decision on duty refund and make an order on refund of the overpaid duty amount to the enterprises in accordance with the Law on Tax Administration and guiding documents. Based on the customs office's order on refund of state budget revenue, the State Treasury office shall refund the overpaid import duty amount to the enterprise. Sources for refund of overpaid duty amounts come from the central budget's revenues from import duty and export duty.

In case the enterprise fails to fully satisfy the conditions for application of the Program on duty incentives, it shall not be entitled to duty refund and the customs office shall notify such in writing to the enterprise.

Article 9. Preferential import duty rates applicable to materials, supplies and parts for manufacturing and processing (assembling) supporting industry products prioritized for development for the automobile manufacture and assembly industry until December 31, 2024 (hereinafter referred to as the Program on duty incentives for automobile supporting industries)

1. The preferential import duty rate of 0% for materials, supplies and parts that cannot be manufactured domestically for manufacturing, processing (assembling) supporting products prioritized for development for the automobile manufacture and assembly industry (hereinafter referred to as automobile supporting industry products) to December 31, 2024, is prescribed as follows:

a) At the time of registering customs declarations, the customs declarants shall declare and calculate duty for imported materials, supplies and parts at ordinary duty rates, preferential duty rates or specially preferential duty rates under current regulations, and are not yet entitled to the duty rate of 0%.

b) The application of the preferential import duty rate of 0% to materials, supplies and parts under the Program on duty incentives for automobile supporting industries must comply with Clauses 2, 3, 4, 5, 6, 7 and 8 of this Article.

2. Subjects of application

a) Enterprises that manufacture or process (assemble) automobile parts and spare parts.

a) Automobile manufacturing or assembling enterprises that manufacture or process (assemble) on their own automobile parts and spare parts.

3. Conditions for application

a) An enterprise that manufactures or processes (assembles) automobile parts and spare parts must satisfy the following conditions:

a.1) Signing contracts on purchase and sale of automobile supporting industry products with automobile manufacturing or assembling enterprises which possess certificates of eligibility for automobile manufacture or assembly granted by the Ministry of Industry and Trade;

a.2) Possessing its investment certificate or investment registration certificate or enterprise registration certificate or business registration certificate clearly stating objectives of its projects or business lines, including the manufacture of spare parts and accessories for automobiles and other motor vehicles;

a.3) Having ownership over, or the right to use, a manufacturing or processing (assembling) establishment in Vietnam's territory and machinery and equipment at such establishment.

b) An automobile manufacturing or assembling enterprise that manufactures or processes (assembles) on its own automobile parts and spare parts must possess a certificate of eligibility for automobile manufacture or assembly granted by the Ministry of Industry and Trade.

c) Imported materials, supplies and parts must satisfy the following conditions:

c.1) Imported materials, supplies and parts (including those imported on or after the effective date of this Decree and left in stock and transferred from previous periods eligible for duty incentives for manufacture or processing (assembly) of automobile supporting industry products in subsequent periods eligible for duty incentives; and excluding those intended for use but having defects) for manufacture or processing (assembly) of automobile supporting industry products are on the list of supporting industry products prioritized for development for automobile manufacture or assembly industries specified in Section IV of the Appendix to the Government's Decree No. 111/2015/ND-CP dated November 3, 2015, on development of support industries, and amending and supplementing documents (if any). Products that are simply assembled by simple devices such as screws, bolts, nuts and rivets and have not undergone any manufacturing or processing stage to become finished products are not eligible for the Program on duty incentives for automobile supporting industries.

c.2) Imported materials, supplies and parts are those that cannot be domestically manufactured and directly imported or imported under entrustment or authorization by the enterprises specified in Clause 2 of this Article. The identification of materials, supplies and parts that cannot be domestically manufactured must comply with the Ministry of Planning and Investment's regulations on the list of materials, supplies and semi-finished products that can be domestically manufactured.

The enterprises specified in Clause 2 of this Article, satisfying the conditions specified at Points a, b and c of this Clause and complying with Clauses 4 thru 8 of this Article are eligible for the preferential import duty rate of 0% for materials, supplies and parts imported for manufacture or processing (assembly) of automobile supporting industry products in the period of duty incentive consideration.

4. Periods of incentive consideration

A period of duty incentive consideration must not exceed 6 months counting from January 1 to June 30 or from July 1 to December 31 every year.

5. Dossiers and procedures for registration for participation in the Program on duty incentives for automobile supporting industries

a) A dossier of registration for participation in the Program on duty incentives for automobile supporting industries must comprise:

a.1) An official letter for registration for participation in the Program on duty incentives for automobile supporting industries, made according to Form No. 08 provided in Appendix II to this Decree: 1 original;

a.2) An investment certificate or investment registration certificate or enterprise registration certificate or business registration certificate (for the case specified at Point a Clause 2 of this Article): 1 certified copy;

a.3) A notice of the manufacturing or processing (assembling) establishment; machinery and equipment at the establishment sent to the customs office, made according to Form No. 09 provided in Appendix II to this Decree (for the case specified at Point a Clause 2 of this Article): 1 original; a land use rights certificate granted by a competent state agency to the enterprise or a land use rights certificate granted by a competent agency to the land owner and a contract on rent or borrowing of land, ground and workshops in case the enterprise rents or borrows them for use as manufacturing establishments: 1 certified copy;

a.4) A certificate of eligibility for automobile manufacture or assembly granted by the Ministry of Industry and Trade (for the case specified at Point b Clause 2 of this Article): 1 certificated copy.

b) Procedures for registration for participation in the Program on duty incentives for automobile supporting industries

An enterprise shall submit a dossier of registration for participation in the Program on duty incentives for automobile supporting industries directly or via the e-data system of the customs office or by post to the customs office of the locality where the enterprise or its manufacturing or processing (assembling) establishment is located for registration for participation in the Program right after the effective date of this Decree or at any time in the year. The date of participation in the Program is the date of issuance of the official letter for registration of the Program.

6. Procedures for filling in customs declarations:

Upon registering a customs declaration, a customs declarant shall fill in the item "Type code" as "A43 - Import of commodities under the Program on duty incentives"; item "Internal management number of the enterprise" coded "#&7b"; and item "Commodity code" (HS code) according to Vietnam's List of exports and imports for materials, supplies and parts under the Program on duty incentives for automobile supporting industries.

7. Inspection of manufacturing or processing (assembling) establishments of enterprises participating in the Program on duty incentives for automobile supporting industries

Upon receiving a dossier of registration for participation in the Program on duty incentives for automobile supporting industries, a customs office shall inspect manufacturing or processing (assembling) establishments; and inspect machinery and equipment at such establishments notified by the enterprise. The customs office shall issue a decision on inspection of manufacturing establishments according to Form No. 09a provided in Appendix II to this Decree and send such decision via its e-data system or by registered mail or facsimile to the customs declarant within 3 working days from the date of signing. Inspection shall be carried out after 5 working days from the date of issuance of the inspection decision. The inspection period must not exceed 5 working days. Inspection contents include:

a) Physical inspection of manufacturing or processing establishments against information notified by the enterprise to the customs office, investment certificate or investment registration certificate or enterprise registration certificate or business registration certificate and land use rights certificate granted by a competent state agency to the enterprises or land use rights certificate granted by a competent state agency to the land owner, and a contract on rent or borrowing of land, ground and workshops in case the enterprise rents or borrows them for use as manufacturing or processing establishments.

b) Physical inspection of machinery and equipment at manufacturing or processing establishments against information in customs dossiers of imported goods, invoices, documents, and contracts on rent or borrowing of machinery and equipment (for the case of rent or borrowing of machinery and equipment); inspection of manufacturing or processing (assembling) process and scale, human resources, and actual state of machinery and equipment in order to determine the compatibility of actual manufacturing capacity of the enterprise with products registered for participation in the Program on duty incentives for automobile supporting industries.

Upon completion of inspection, the customs office shall make a minutes of inspection results according to Form No. 09b provided in Appendix II to this Decree.

Within 5 working days after signing the inspection minutes, the customs office shall send to the enterprise a notice of satisfaction of or failure to satisfy conditions of manufacturing or processing (assembling) establishments or machinery and equipment specified at Point a.3 Clause 3 of this Article, made according to Form No. 09c provided in Appendix II to this Decree.

In the course of participation in the Program on duty incentives for automobile supporting industries, if there is a change in the addresses of manufacturing or processing establishments or the ownership over or the right to use machinery and equipment of such establishments of the enterprise, the enterprise shall send a notice of such change to the customs office within 5 working days after such change occurs. Upon receiving the notice of change or detecting a sign indicating that the enterprise changes information about its manufacturing or processing establishments, or machinery and equipment at such establishments but fails to notify such change to the customs office or based on the risk management process, the customs office shall carry out inspection of manufacturing or processing (assembling) establishments, and inspect machinery and equipment at such establishments.

8. Dossiers and procedures for application of the preferential duty rate of 0%

a) A dossier must comprise:

a.1) For an enterprise that manufactures or processes (assembles) automobile parts and spare parts:

A written request for application of the preferential duty rate of 0% under the Program on duty incentives for automobile supporting industries, made according to Form No. 10a provided in Appendix II to this Decree: 1 original;

An investment certificate or investment registration certificate or business registration certificate or enterprise registration certificate (unless the enterprise has submitted such certificate upon registering for participation in the Program on duty incentives for automobile supporting industries): 1 certified copy;

Contracts on purchase and sale of automobile supporting industry products with enterprises possessing a certificate of eligibility for automobile manufacture or assembly granted by the Ministry of Industry and Trade: 1 original;

Process of manufacturing or processing (assembling) automobile supporting industry products (together with explanations): 1 original;

A list of import duty declarations and paid amounts for materials, supplies and parts for manufacturing or processing (assembling) automobile supporting industry products registered for participation in the Program on duty incentives for automobile supporting industries, made according to Form No. 10 provided in Appendix II to this Decree: 1 original;

A report on use of materials, supplies and parts imported for manufacturing or processing (assembling) automobile supporting industry products registered for participation in the Program on duty incentives for automobile supporting industries, made according to Form No. 11 provided in Appendix II to this Decree: 1 original;

A list of value-added invoices for quantities of automobile supporting industry products sold under purchase and sale contracts, made according to Form No. 12 provided in Appendix II to this Decree: 1 original;

Accounting documents showing quantities of materials, supplies and parts imported for manufacturing or processing (assembling) automobile supporting industry products: 1 photocopy;

a.2) For an automobile manufacturing or assembling enterprise that manufactures or processes (assembles) automobile parts and spare parts on its own:

A written request for application of the preferential duty rate of 0% under the Program on duty incentives for automobile supporting industries, made according to Form No. 10a provided in Appendix II to this Decree: 1 original;

Process of manufacturing or processing (assembling) automobile supporting industry products (together with explanations): 1 original;

A list of import duty declarations and paid amounts for materials, supplies and parts for manufacturing or processing (assembling) automobile supporting industry products, made according to Form No. 10 provided in Appendix II to this Decree: 1 original;

A report on use of materials, supplies and parts imported for manufacturing or processing (assembling) automobile supporting industry products, made according to Form No. 11 provided in Appendix II to this Decree: 1 original;

A list of value-added invoices for quantities of automobile supporting industry products sold to automobile manufacturing or assembling enterprises possessing a certificate of eligibility for automobile manufacture or assembly (if any) granted by the Ministry of Industry and Trade, made according to Form No. 12 provided in Appendix II to this Decree: 1 original;

A report on use of automobile supporting industry products manufactured or processed (assembled), made according to Form No. 13 provided in Appendix II to this Decree: 1 original;

A certificate of eligibility for automobile manufacture or assembly (if any) granted by the Ministry of Industry and Trade (unless the enterprise has submitted such certificate upon registration for participation in the Program): 01 certified copy;

Accounting documents showing quantities of materials, supplies and parts imported for manufacturing or processing (assembling) automobile supporting industry products: 1 photocopy;

b) Procedures for application of the duty rate of 0%

b.1) Within 60 days from June 30 or December 31 every year, an enterprise shall send a dossier specified at Point a of this Clause to the customs office responsible for receiving dossiers for registration for participation in the Program on duty incentives for automobile supporting industries. In case a dossier is submitted after the expiration of the 60-day time limit, the customs office shall still receive the dossier, conduct inspection and sanction administrative violations under regulations of the Government.

b.2) The customs office shall base itself on the dossier of request for application of the duty rate of 0%, results of inspection of manufacturing or processing (assembling) establishments, machinery and equipment of the enterprise to inspect the eligible subject and conditions for application of the Program on duty incentives for automobile supporting industries and:

In case the dossier is incomplete, request in writing the enterprise to supplement the dossier. In case of a doubt about accuracy of the dossier, the customs office shall carry out inspection at its office or the office of the duty payer in accordance with the law on tax administration.

In case the conditions for application of the Program on duty incentives for automobile supporting industries are fully satisfied, issue a refund decision and make an order of refund of the overpaid duty amount to the enterprise in accordance with the law on tax administration and guiding documents. Based on the customs office's order on refund of state budget revenue, the State Treasury office shall refund the overpaid import duty amount to the enterprise. Sources for refund of overpaid duty amounts come from the central budget's revenues from import duty and export duty.

In case the enterprise fails to fully satisfy the conditions for application of the Program on duty incentives for automobile supporting industries, reply in writing to the enterprise.

Article 10. List of commodity items subject to tariff quotas and their import duty rates

1. The list of commodity items subject to tariff quotas includes commodity items specified in Appendix IV to this Decree and commodity items subject to tariff quotas specified in treaties to which the Socialist Republic of Vietnam is a contracting party (treaties).

2. The annual import quotas must comply with the Ministry of Industry and Trade's regulations.

3. Import duty rates applicable to the quantities of imported goods within tariff quotas:

In case the import volume of a commodity item lays within its annual tariff quota prescribed by the Ministry of Industry and Trade, the preferential import duty rates specified in Section I of Appendix II to this Decree or the specially preferential import duty rates according to the Specially Preferential Import Tariff promulgated together with the Government's decrees on promulgations of the Special Preferential Import Tariff to implement treaties (provided that the conditions for application of such specially preferential import duty rates are met) shall apply.

In case the Government's decrees on promulgations of the Special Preferential Import Tariff to implement treaties provide regulations on application of within-quota special preferential import duty rates, such regulations shall apply.

4. Import duty rates applicable to the quantities of imported goods in excess of tariff quotas:

a) In case the import volume of a commodity item specified in Clause 1 of this Article exceeds its annual import quota prescribed by the Ministry of Industry and Trade, the excessive volume shall be subject to the out-of-quota duty rates specified in Appendix IV to this Decree.

b) In case treaties provide for import quotas and/or out-of-quota import duty rates for the commodity items specified in Clause 1 of this Article, the Government's Decrees promulgating the Specially Preferential Import Tariffs for implementation of such treaties shall apply. In case the out-of-quota duty rates under a treaty are higher than the out-of-quota duty rates prescribed in Appendix IV to this Decree, the latter shall prevail.

Article 11. Responsibility for implementation organization

1. The Ministry of Finance shall inspect, supervise, give price advice and combat trade frauds under regulations regarding commodity items subject to high import duty rates and commodity items with high risks in duty value.

2. The Ministry of Planning and Investment shall promulgate the list of commodities that can be domestically manufactured; revise and update revisions to such list as suitable to reality.

3. The Ministry of Industry and Trade shall assume the prime responsibility for:

a) Granting certificates of eligibility for automobile manufacture or assembly under the Government's regulations on conditions for automobile manufacture, assembly and import and provision of automobile warranty and maintenance services;

b) Promulgating regulations to internalize the provisions on tariff quotas in treaties to which Vietnam is a contracting party.

4. Competent state agencies shall grant investment certificates, investment registration certificates or investment policy decisions, enterprise registration certificates or business registration certificates to enterprises in accordance with law.

5. Related ministries and sectors, and localities shall, within the ambit of their functions and tasks, carry out inspection and control to ensure that policies are implemented in accordance with regulations and combat trade frauds.

6. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of People's Committees of provinces and centrally-run cities, and related organizations and individuals shall implement this Decree.

Article 12. Effect

1. This Decree takes effect from July 15, 2023.

2. This Decree replaces the following Government's Decrees: Decree No. 122/2016/ND-CP dated September 1, 2016; Decree No. 125/2017/ND-CP dated November 16, 2017; Decree No. 57/2020/ND-CP dated May 25, 2020; Decree No. 101/2021/ND-CP dated November 15, 2021; Decree No. 51/2022/ND-CP dated August 8, 2022.

3. From October 1, 2022, to the effective date of this Decree, the conditions on the minimum knock-down level of automobile parts under Point b Clause 3.1 Article 7a as provided in Clause 3 Article 2 and Point b.5 Clause 3 Section II Chapter 98 of the Government's Decree No. 57/2020/ND-CP dated May 25, 2020, shall not apply.

In case an enterprise has participated in the Program on duty incentives but has not yet been refunded the import duty amount paid in the period of between October 1, 2022, and the effective date of this Decree, it shall be refunded the duty amount for the imported automobile parts, provided that it satisfies the conditions specified in the Program on duty incentives; and is not required to satisfy the conditions on the minimum knock-down level of automobile parts.

If an enterprise importing completely knocked down kits (auto CKD), non-synchronous auto parts kits for manufacture and assembly, including an enterprise importing them under entrustment contracts or authorization, the importing enterprise, that has contracts on purchase and sales with automobile manufacturing or assembling enterprises in the period of between October 1, 2022, and the effective date of this Decree and chooses the method of calculating duty according to each automobile part or spare part, or heading 98.21, must satisfy the conditions specified in the Government's Decree No. 57/2020/ND-CP dated May 25, 2020; and is not required to satisfy the conditions on the minimum knock-down level of automobile parts.

4. The preferential import duty rates applicable to imported automobile parts under heading 98.49 specified in Article 8 of this Decree shall be applied until December 31, 2027. Enterprises that have registered to participate in the Program on duty incentives before the effective date of this Decree must re-register with customs offices in accordance with this Decree.

In case of changing or adding automobile groups or models or number of automobile models registered upon participating in the Program on duty incentives, enterprises shall make registration again with customs offices.

5. Preferential import duty rates applicable to materials, supplies and parts for manufacturing and processing (assembling) supporting industry products prioritized for development for the automobile manufacture and assembly industry specified in Article 9 of this Decree shall be applied until December 31, 2024. Enterprises that have registered to participate in the Program on duty incentives for automobile supporting industries before the effective date of this Decree are not required to make such registration again and may enjoy incentives under this Decree.

ON BEHALF OF THE GOVERNMENT

FOR THE PRIME MINISTER

THE DEPUTY MINISTER

Le Minh Khai

* All Appendices are not translated herein.

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