New regulations on Import – Export Tariff

Export Tariff and Preferential Import Tariff

On 1 September 2016, the Government issued Decree 122/2016/ND-CP (“Decree 122”) on the Export Tariff, Preferential Import Tariff, List of goods and absolute duty rates, Mixed tax rates, and Off-quotas import duty. Decree 122 took effect from 1 September 2016.

Preferential Import Tariff

The Preferential Import Tariff includes the first 97 chapters providing for the general preferential import tariff and Chapter 98 providing for specially preferential import  tariff on several categories of goods such as kraft paper under  heading 98.07, alloy  steel with boron and/or chrome and/or titanium element under heading 98.11, bars and coils of non-alloy steel under heading 98.39, materials and equipment imported for production of key mechanical products under heading 98.19, spare parts and materials used for aircraft under heading 98.20, biological oil and petrol under heading 98.38.

Schedule of preferential import tariff according to WTO Commitment

Decree 122 provides for a section along with an appendix on the Preferential Import Tariff applicable to some commodities for implementing Vietnam’s WTO Commitment for the years of 2017, 2018 and from 2019 onwards. This section was not included in old Circular 182/2015/TT-BTC regulating the same matter. Remarkably among the commodities, the import tariff on automobiles and other motor vehicles principally designed for the transport of persons, including vans, station wagons and/or pick-up cars, will be respectively reduced from 58% to 55%, then 52% in 2017, 2018 and from 2019 onwards, except for 4WD and AWD remaining the import tariff of 47% over the periods.

Used cars import tariff

Used cars import tariff under Decree 122 remains unchanged in comparision to  Decision No. 36/2011/QD-TTg, under which used car import tariff is subject to absolute duty rate or mixed tax rate depending on number of seats (including driver’s seat) and cylinder capacity. Decree 122 thus continues elaborating the Government’s policy of disencouraging the import of used cars. It should also be noted that Decree 122 no  longer provides the right of Ministry of Finance to increase or decrease applicable 20% taxes rate based on the factual situation.

Import tariff over petrochemical commodities

Decree 122 also provides for the adjustment to the Preferential Import Tariff imposed  on petrochemical commodities. Currently, petrochemical commodities are subject to the Preferential Import Tax Rate of 1%. This rate will remain 1% till the end of 2016 but be increased to 3% after 1 January 2017.

Export tariff over gold jewelry

Decree 122 also repeats the 0% export tariff over gold jewellry as provided in Decision 789/2015 of Minitry of Finance. Accordingly, gold jewellery and parts thereof, goldsmiths wares and parts thereof and other gold articles with a gold content below 95% are imposed with 0% export tax rate. In this case, exporters must have a test result of determining the gold content below 95% by a licensed organization. While in case of export processing, the exporter shall present a raw gold import permit issued by the  State bank of Vietnam to the relevant customs authority.