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THE GOVERNMENT
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SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom – Happiness
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No. 26/2023/ND-CP
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Hanoi, May 31,
2023
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DECREE
ON SCHEDULE OF
EXPORT TARIFFS, SCHEDULE OF PREFERENTIAL IMPORT TARIFFS, TARIFF NOMENCLATURE,
AND FIXED DUTIES, MIXED DUTIES, OUT-OF-QUOTA IMPORT DUTIES
Pursuant to the Law on Government Organization
June 19, 2015; the Law on amendments to the Law on Organization of Government
and the Law on Organization of Local Governments dated November 22, 2019;
Pursuant to the Law on Export and Import Duties
dated April 6, 2016;
Pursuant to the Law on Tax Administration dated
June 13, 2019;
Pursuant to the Law on Customs dated June 23,
2014;
Pursuant to Resolution No. 71/2006/QH11 dated
November 29, 2006 of the National Assembly on ratification of Protocol on
accession of the Socialist Republic of Vietnam to the Agreement establishing
the World Trade Organization;
At the request of the Minister of Finance;
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Article 1. Scope
The Decree specifies Schedule of Export Tariffs,
Schedule of Preferential Import Tariffs, Tariff Nomenclature and fixed duties,
mixed duties, out-of-quota import duties.
Article 2. Regulated entities
1. Taxpayers under the Law on Export and Import
Duties.
2. Customs authorities and customs officials.
3. Organizations and individuals with rights and
obligations related to exports and imports.
Article 3. Issuance of Schedule of Export
Tariffs, Schedule of Preferential Import Tariffs under Nomenclature of Taxable
Products, Tariff Nomenclature and fixed duties, mixed duties, out-of-quota
import duties
The following appendices shall be issued together
with this Decree:
1. Appendix I - Schedule of Export Tariffs under
Nomenclature of Taxable Products.
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3. Appendix III - Tariff Nomenclature and fixed
duties, mixed duties imposed on automobiles for the transport of 15 or fewer
persons, used.
4. Appendix IV - Tariff Nomenclature and
out-of-quota import duty rates imposed on goods subject to tariff-rate quotas.
Article 4. Schedule of Export Tariffs under
Nomenclature of Taxable Products
1. Schedule of Export Tariffs under Nomenclature of
Taxable Products specified in Appendix I issued herewith shall specify the
tariff classification number, description, export duty rates imposed on each
heading and each dutiable commodity. In case where any exported good is not
named in the Schedule of Export Tariffs, the customs declarant shall enter HS
code of the exported good corresponding to the 8-digit HS codes of commodities
according to the Schedule of Preferential Import Tariffs specified in Section I
of Appendix II to this Decree, and shall not need to enter duty rates in their
export declaration.
2. The commodities under the heading 211 are
commodities that satisfy both requirements below:
a) 1st requirement: Supplies, raw or input
materials, semi-finished products (collectively referred to as goods) do not
belong to the headings from No. 01 to No. 210 in the Schedule of Export
Tariffs.
b) 2nd requirement: They are goods which are
made directly from raw materials that are mainly natural resources or minerals
and of which the aggregate value of such natural resources plus energy costs
accounts for at least 51% of their production cost. The determination of
the aggregate value of natural resources and minerals plus energy costs
accounting for at least 51% of their production cost shall be subject to regulations
laid down in the Government’s Decree No. 100/2016/ND-CP dated July 1,
2016, detailing and guiding the implementation of a number of articles of the
Law on Amendments and Supplements to several Articles of the Law on Value-Added
Tax, the Law on Special Consumption Tax and the Law on Tax Administration and
the Government’s Decree No. 146 / 2017 / ND-CP dated December 15, 2017,
amending and supplementing a number of articles of the Decree
No. 100/2016/ND-CP and amendments (if any).
Exported goods that are exceptions specified in
clause 1 of Article 1 in the Decree No. 146/2017/ND-CP dated December
15, 2017 do not belong to the heading No. 211 of the Schedule of Export Tariffs
annexed to this Decree.
3. Codes and export duty rates of commodities in
heading 211:
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Regarding exports in headings numbered 211 that do
not have 8-digit codes and satisfy the requirements specified in Clause 2 of
this Article, the taxpayer shall declare the 8-digit codes in the Preferential
Import Tariff Schedule in Section I Appendix II hereof and declare the export
duty rate of 5%.
Article 5. Schedule of Preferential Import
Tariffs under Nomenclature of Taxable Products
The Schedule of Preferential Import Tariffs of
taxable products on the Nomenclature of Taxable Products given in Appendix II
issued hereto, including:
1. Section I: Preferential import tariff rate on
products in 97 chapters of the List of Vietnam’s exports and imports.
This section is divided into Parts, Chapter; Explanatory Notes; Explanatory
Notes for subheadings; for Parts and Chapters; Import Tariff Schedule
comprising the description of products, HS codes (8 digits) adopted according
to the List of Vietnam’s exports and imports and preferential import duty rates
applied to taxable products.
In case where the List of Vietnam’s exports and
imports is amended or supplemented, customs declarants must use descriptions
and HS codes according to the amended List of exports and imports, as well as
duty rates on products with amended HS codes.
2. Section II: Chapter 98 on Tariff nomenclature
and preferential import duty rates imposed on certain headings and commodities,
including: Notes; classification of, requirements and procedures for imposition
of preferential import duty rates prescribed in Chapter 98, and statement of
use of commodities entitled to the preferential import duty rates prescribed in
Chapter 98; Tariff nomenclature and preferential import duty rates.
a) The commodities named in the Tariff nomenclature
and preferential import duty rates as specified in clause 3 Section II of
Appendix II issued herewith are entitled to the preferential import duty rates
prescribed in clause 3 Section II of Appendix II.
The classification of goods and preferential import
duty rates in Chapter 98 on completely knocked down (CKD) kits of auto parts,
incompletely knocked down (IKD) kits of auto parts, chassis fitted with engines
and cabins of automobiles are specified in Clause 1.1 Section II of the
Appendix II.
Alloy steels containing boron and/or chromium
and/or titanium of heading 98.11; fillers, skin care commodities of heading
98.25; 1680/D/2 and 1890 D/2 nylon tire cord fabrics of heading 98.26; copper
wires whose dimension of cross section is between 6 mm and 8 mm of heading
98.30; Polypropylene granules in primary form of heading 98.37; bars and rods,
hot-rolled, in irregularly wound coils, of other alloy steel of heading 98.39;
Set top boxes of heading 98.46; Neoweb commodities of heading 98.47 are
entitled to preferential import duty rates prescribed in Chapter 98 if such
commodities meet standards and technical parameters stipulated in Clause
Section II of Appendix II.
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c) Tariff nomenclature and preferential import duty
rates in Chapter 98 imposed on certain commodities, including: Codes of
heading; description thereof; respective codes of such heading prescribed in
Section I Appendix II of Schedule of preferential import duties under
Nomenclature of Taxable Products; and preferential import duty rates prescribed
in Chapter 98.
c) The commodities which are entitled to both
special preferential import duty rates in Chapter 98 and special preferential
import duty rates under applicable regulations of laws may be applied to either
of such above mentioned duty rates.
Regarding commodities which are classified into
Chapter 98, in case of customs declaration, declarants shall specify codes of
commodities in “Mã hàng tương ứng tại Mục I Phụ lục II” column (respective
codes in Section I Appendix II) and write down codes of such commodities
specified in Chapter 98 to the side.
Article 6. Preferential import duty rates
imposed on machine tools
Machine tools mentioned of headings from 84.54 to
84.63 are entitled to preferential import duty rates as follows:
1. Machine tools that cannot be manufactured in
Vietnam are entitled to the import 0% duty. The abovementioned machines shall
not be included in the list of machines and equipment that can be manufactured
in Vietnam issued by the Ministry of Planning and Investment.
2. Machine tools that are not mentioned in Clause 1
of this Article are entitled to the preferential import duty rate imposed on
commodities of headings from 84.54 to 84.63 specified in Section I Appendix II
on Schedule of preferential import tariff under Nomenclature of Taxable
Products issued herewith.
Article 7. Import duties on used automobiles
1. The fixed duty rates prescribed in Appendix III
of this Decree shall be imposed on used automobiles for transporting up to 9
people of a cylinder capacity not exceeding 1,000 cc of heading 87.03.
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3. The preferential import duty rate of 150% shall
be imposed on used automobiles for transporting at least 16 people of heading
87.02 and used automobiles for the transport of commodities with the gross
vehicle weight rating (GVWR) not exceeding 5 metric tons of heading 87.04
(except for refrigerated lorries (trucks), refuse/garbage collection vehicles
having a refuse compressing device, bulk-cement lorries (trucks) and hook-lift
lorries (trucks)).
4. Other used automobiles of headings 87.02, 87.03
and 87.04 are subject to duty rates equal to 1.5 times the preferential import
duty rates imposed on new vehicles of the same category under same headings
prescribed in Section I Appendix II of this Decree.
Article 8. Preferential import duty rates
imposed on imported auto parts of automobiles according to the tax incentive
program for automobile manufacturing and assembly (hereinafter referred to as
“the Program”)
1. Preferential import duty rates of 0% imposed on
imported auto parts of automobiles of heading 98.49 in Clause 3 Section II
Chapter 98 Appendix II of this Decree shall be specified as follows:
a) At the time of customs declaration, the
declarant shall declare and calculate taxes according to the ordinary import
duty rate, preferential import duty rate or special preferential import duty
rate in accordance with applicable regulations of law. The preferential import
duty rates shall not be imposed on the commodities of heading 98.49.
b) The import 0% duty shall be imposed on auto
parts of heading 98.49 in accordance with regulations in Clauses 2, 3, 4, 5, 6,
7, 8 of this Article.
2. Regulated entities of the Program
Enterprises that obtain certificates of eligibility
for manufacturing and assembly of automobiles issued by the Ministry of
Industry and Trade.
3. Eligibility requirements of the Program:
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a.1) Auto parts named in heading No. 98.49 and
classified as those which have not yet been manufactured domestically, and used
for manufacturing and assembling automobiles within the period of consideration
of grant of tax incentive (hereinafter referred to as consideration period)
(including those in stock from the previous period which are used for
manufacturing and assembling of finished vehicles in the succeeding period).
The determination of components or accessories that have not yet been
produced domestically shall be subject to the Ministry of Planning and
Investment's regulations on the list of raw or input materials, supplies and
semi-finished products that may be domestically produced.
a.2) Imported automobile components or accessories
are directly imported or imported in trust or under authorization by automobile
manufacturing and assembling enterprises.
a.3) In case an imported component kit (imported
from multiple sources and shipments) has an auto body and an auto chassis, it
must meet the following requirements:
The auto body must consist of at least the
following assemblies: roof, floor, left flank, right flank, front, rear and
associated arrays (if any) that are separate and have not been powder coated;
Autor chassis: 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 auto parts not included in heading
87.07 (coachwork, including cabin).
b) For enterprises manufacturing and assembling
electric, fuel-cell, hybrid, fully biofuel, and natural gas vehicles,
enterprises shall not have to register vehicle makes when participating in the
Program.
b.1) If enterprises that are not subject to the
minimum output requirement at the first participation registration period and
the next consecutive consideration period meet the provisions of clause 2, point
a clause 3, clause 4, clause 6, clause 7, clause 8 of this Article, the 0% duty
rate shall be applied to all of the imported components used for manufacturing
and assembly of their products for which they have registered to participate in
the Tax Incentive Program when these products leave the factory.
b.2) If enterprises that are not subject to the
minimum output requirement at the first participation registration period and
the next consecutive consideration period meet the provisions of clause 2, point
a clause 3, clause 4, clause 6, clause 7, clause 8 of this Article, the 0% duty
rate shall be applied to all of the imported components used for manufacturing
and assembly of their products for which they have registered to participate in
the Program when these products leave the factory.
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c.1) Emission standards:
Automobiles and vehicles are manufactured or
assembled to meet at least level 5 emission standards for the period from 2022,
and vehicles that are issued certificates of technical safety and environmental
protection before January 1, 2022 and remain effective in accordance with
Decree No. 116/2017/ND-CP dated October 17, 2017 and amending documents (if
any) must meet level 4 emission standards.
c.2) Vehicle make:
Enterprises manufacturing and assembling gas and
diesel vehicles may register 01 (one) or more vehicle makes once participating
in the Program. During the validity period of the Program, they may register
any change or addition of vehicle makes or quantities of vehicles by registered
makes. The production output of a vehicle make after such change or
addition shall be added to the minimum general production output as a basis for
consideration of tax incentives, but must still meet the minimum specific
output requirement imposed in each consideration period. Makes of vehicles
belonging to different headings of vehicles shall be regulated as follows:
Vehicles with the maximum capacity of 09 seats and
the maximum cylinder capacity of 2,500cc that are classified into the same
heading No. 87.03 are those meeting all of the following criteria: same
engine criteria; cylinder capacity of 2,500 cc or less; same criteria for
bodywork (or chassis); fuel consumption of under 7.5 liters/100 km. Fuel
consumption criterion of below 7.5 liters / 100 km is based on the fuel
consumption per a combined cycle specified in the fuel consumption certificate
issued by the Vietnam Register;
Mini-buses (including passenger-carrying ones with
the capacity ranging from 10 to 19 seats that are classified into the heading
No. 87.02) and buses/passenger vehicles (including passenger-carrying ones with
the minimum capacity of 20 seats that are classified into the heading No.
87.02) are those vehicles having the same engine and chassis criteria;
Vehicles classified into the truck heading
(including motorized vehicles used for carrying cargo that belong to the
heading No.87.04, and specialized motorized vehicles that belong to the heading
No. 87.05) are those vehicles having the same engine criteria and cabin
criteria.
Engine criteria for a make of vehicle are
determined on the basis of the cylinder capacity or type or engine capacity
stated in the certificate of technical quality, safety, and environment protection
for manufactured or assembled vehicles issued by the Vietnam Register. Body (or
chassis), frame and cabin criteria are determined on the basis of basic
technical specifications stated in technical design interpretations with
“tested” marks granted by the Vietnam Register.
c.3) Minimum general output requirement (referring
to the manufacturing and assembling output requirement applied to vehicles of
each vehicle heading) and minimum specific output requirement (referring to the
manufacturing and assembling output requirement applied to each participating
vehicle).
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c.3.1) If they meet the minimum general output
requirement imposed on each of their vehicle headings and the minimum specific
output requirement imposed on at least one vehicle make in each consideration
period specified under the provisions of point a clause 5 of this Article, and
meet regulations laid down in clause 2, point a, c.1, c.2 clause 3, clause 4,
clause 6, clause 7 and clause 8 of this Article, the 0% duty rate shall be
applied to all of the imported components used for manufacturing and assembly
of products of which the prescribed requirement concerning the output are met
by these enterprises when these products leave the factory within that period.
In case of manufacturing and assembling gas and
diesel, electric, fuel-cell, hybrid, fully biofuel, and natural gas vehicles,
when determining the minimum general output of the heading of vehicles using
gas and diesel fuels, they may add the output of electric, fuel-cell, hybrid,
fully biofuel and natural gas vehicles manufactured or assembled within the
consideration period to the minimum general output of the same heading of
vehicles using gas and diesel fuels during the process of consideration of
grant of tax incentive.
c.3.2) If they have the actual manufacturing and
assembling output of vehicles of the 01 (one) make of vehicles with the maximum
capacity of 09 seats registered within a consideration period which is 1.3
times more than the minimum specific output of vehicles belonging to the
heading of vehicles with the maximum capacity of 09 seats prescribed in point a
clause 5 of this Article, and meet regulations laid down in clause 2, point a,
c.1. c.2 clause 4, clause 4, clause 6, clause 7 and clause 8 of this Article,
they shall be entitled to the 0% duty rate applied to their imported components
already used for manufacturing and assembly of these registered vehicles of
that make leaving the factory within that period.
c.3.3) If they have total actual manufacturing and
assembling output of vehicles of the 02 (two) makes of vehicles with the maximum
capacity of 09 seats registered within a consideration period which is 1.5
times more than the minimum specific output of vehicles belonging to the
heading of vehicles with the maximum capacity of 09 seats prescribed in point a
clause 5 of this Article, and meet regulations laid down in clause 2, point a,
c.1. c.2 clause 4, clause 4, clause 6, clause 7 and clause 8 of this Article,
they shall be entitled to the 0% duty rate applied to their imported components
already used for manufacturing and assembly of registered vehicles of these two
makes that leave the factory within that period.
c.3.4) If they register participation in the
Program for 02 (two) headings of vehicles or more, have total actual
manufacturing and assembling output of vehicles of all these makes of vehicles
registered within a consideration period which is at least equal to total
minimum general output of vehicles belonging to respective headings of vehicles
according to point a clause 5 of this Article, and meet regulations laid down in
clause 2, point a, c.1. c.2 clause 4, clause 4, clause 6, clause 7 and clause 8
of this Article, they shall be entitled to the 0% duty rate applied to all
components imported for use in the manufacturing and assembly of vehicles
belonging to registered headings of vehicles that leave the factory within that
period.
c.3.5) In case the first tax incentive
consideration period of an enterprise manufacturing and/or assembling motor
vehicles using gas and diesel fuels specified in point c.3.1, c.3.2, c.3.3, c.3.4
of this clause is shorter than a full period (6 or 12 months), but the actual
quantity of manufactured/assembled vehicles of the enterprise is not smaller
than the average monthly minimum production multiplied by (x) the number of
months of participating in the Tax Incentive Program in the period, and the
actual quantity of manufactured/assembled vehicles of the registered make is
not smaller than the minimum specific production multiplied by (x) the number
of months of participating in the Tax Incentive Program in the period, and the
minimum general production and minimum specific production of the next period
are also achieved, then the number of components used for manufacturing and
assembling vehicles in that first period shall be eligible for 0% duty rate
provided the enterprise meets the requirements specified in clause 2, point a,
c.1. c.2 clause 4, clause 4, clause 6, clause 7 and clause 8 of this Article.
In case the number of days of participating in the Program in the first month
is at least 15 days, it will be considered a full month. In case the number of
days of participating in the Program in the first month is less than 15 days,
that month will not count.
4. Consideration period
An enterprise may choose between a 6-month, or 12
month consideration period as follows:
a) A 6-month period is from January 01 to June 30
or from July 01 to December 31 every year.
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b) A 12-month period is from January 01 to June 30
to December 31 every year.
5. Production of manufactured and assembled
vehicles of the Program
a) Gas and diesel vehicles:
Unit: vehicle
Vehicle group
2022 - 2027
6-month
consideration period
12-month
consideration period
January 1 –
June 30
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January 1 –
December 31
I. Vehicle for transport of not exceeding 09
people with cylinder capacity of not exceeding 2.500cc
1. Minimum general production
11500
11500
23000
2. Minimum general production of 1 make
4500
4500
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II. Trucks of a GVW of not exceeding 05 tonnes
1. Minimum general production
3500
3500
7000
2. Minimum general production of 1 make or total
specific production of 2 makes
2000
2000
4000
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1000
1000
2000
III. Trucks of a GVW of exceeding 05 tonnes
1. Minimum general production
2500
2500
5000
2. Minimum general production of 1 make or total
specific production of 2 makes
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1000
2000
3. Minimum general production of 1 make
satisfying EURO 5
500
500
1000
IV. Minibus
1. Minimum general production
330
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660
2. Minimum general production of 1 make
165
165
330
V. Bus
1. Minimum general production
445
445
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2. Minimum general production of 1 make or total
specific production of 2 makes
250
250
500
During the consideration period, if the vehicles manufactured
or assembled by the enterprise satisfy both Level 4 (according to Point c.1
Clause 3 Article 8 of this Decree) and Level 5 emission standards, the
production of both kinds of vehicle may be used.
As for the consideration period in 2023, enterprises
participating in the Tax Incentive Program may use the total number of vehicles
manufactured and assembled from January 1, 2023 to the effective date of this
Decree for consideration of incentives if they meet the requirements of the Tax
Incentive Program specified in the Government's Decree No. 57/2020/ND-CP dated
May 25, 2020 and Decree No. 101/2021/ND-CP dated May 25, 2020 and Decree No.
101/2021/ND-CP dated November 15, 2021, the requirement pertaining to minimum
degree of auto parts is not applicable.
b) Electric vehicles; battery-powered vehicles;
hybrid vehicles; vehicles running on 100% biofuel; natural gas vehicles.
Unit: vehicle
Vehicle group
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6-month
consideration period
12-month
consideration period
January 1 –
June 30
July 1 –
December 31
January 1 –
December 31
Minimum production of each vehicle group:
vehicles for transport of not exceeding 9 people; trucks, minibuses, buses
125
125
250
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a) An application shall consist of:
a.1) An application form for participation in the
Program using the form No. 05 prescribed in Appendix II of this Decree: 1
original;
a.2) The certificate of eligibility for manufacture
and assembly of automobiles: 1 certified true copy.
b) Procedures for participation: An enterprise
shall submit its application at the customs authority premises where its head
office or factory is located to participate in the Program, in person, or via
electronic data system, or by post, after this Decree is signed or any time
within the Program’s period. The enterprise may participate in the Program from
the day on which the application is submitted onwards.
7. Customs declaration making procedures:
The customs declarant enters "A43 - Import of
goods eligible for the Program" at “Type/Activity code” for imported
automobile components or accessories with HS codes that belong to the No. 98.49
heading for manufacturing and assembly of vehicles in the heading registered
for participation in the Program; enters "#&7a" at
"Enterprise’s internal control number".
8. Application and documentation requirements and
procedures for eligibility of vehicles in the No. 98.49 heading for 0%
preferential tax rate
a) Documentation requirements, including:
a.1) Request form for application of 0%
preferential tax rate to products in the No.98.49 heading, made by using the
Form No. 06a of Appendix II hereto: 1 original;
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a.3) Statement of declarations and import duty
payment amounts, which is made by using the Form No. 07 of Appendix II hereto:
1 original;
a.4) Accounting vouchers or records proving the
quantity of imported components or accessories already used for manufacturing
and assembling of automobiles in the headings within the consideration period:
1 photocopy;
a.5) Pre-shipment check cards, made according to
the form issued by the Vietnam Register: a copy with the exporter's seal
affixed thereon (the number of copies corresponding to the number of vehicles
manufactured and assembled within the consideration period);
a.6) Certificate of technical quality, safety, and
environment protection of manufactured and assembled automobiles: certified
true copy, or copy and the original thereof for verification purposes (the
number of copies corresponding to the number of types of manufactured and
assembled vehicles);
a.7) Explanatory notes on the technical design and
technical drawings of automobile with the “tested” mark of the Vietnam
Register: certified copy, or copy and the original thereof for checking
purposes (number of copies corresponding to the types of manufactured and
assembled vehicles).
b) Procedures for application of tax rates applied
to products in the No. 98.49 heading:
b.1) Not later than 60 days after June 30 or
December 31, the applicant enterprise sends the required application documents
specified at point a of this clause to the customs authority that is authorized
to receive application documents for registration for participation in the
Program. In case of submitting application documents after 60 days, the customs
authority receives and verifies submitted documents, and imposes any
administrative fine regulated by the Government.
In case where the applicant enterprise has the
consideration period, which is less than 06 months, the enterprise shall submit
application documents specified at point a of this clause at the same time as
submission of application for the 0% duty rate of the next consideration
period.
b.2) Based on the application from the applicant
enterprise, the receiving customs authority checks whether the enterprise is
eligible for the Program and their conformance to requirements for eligibility
for the Program specified in clause 2 and 3 of this Article. They will
check the followings:
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Make or type of vehicles registered for
participation in the Program, based on the certificate of technical quality,
safety, and environment protection for manufactured or assembled vehicles,
issued by the Vietnam Register.
The industrial consumption of imported automobile
components or accessories (excluding those used but damaged or defective). This
must match the quantity of actually manufactured and assembled vehicles with
pre-shipment check cards within the consideration period and based on the
report on use of automobile components or accessories eligible for preferential
import duty, statement of customs declarations and import duty payment amounts
according to each import customs declaration.
b.3) Based on the results of documentary
inspection, the inspecting customs authority shall take the following actions:
In case where submitted application is not
sufficient, they can request the applicant enterprise in writing to make any
necessary amendment or supplementation. In case there is any doubt about the
accuracy of the submitted application, they shall conduct inspections at their
office or the taxpayer’s office in accordance with tax administration law.
If all of the eligibility requirements for the
Program are met, and the applicant enterprise has paid taxes on imported
automobile components or accessories more than taxes to be paid at the duty
rate applied to the No.98.49 heading, the customs authority shall issue its
decision to refund and make a refund order for the overpaid tax amount to the
applicant enterprise in accordance with the Law on Tax Administration and other
instructional documents thereof. On the customs authority’s order of
refund of the state budget receipt issued by, the State Treasury shall refund
the overpaid import duty amount to the applicant enterprise. Such refund
of the overpaid duty amount shall be funded by the central government’s state
budget revenues from customs tariff.
In case of failure to meet all of the eligibility
requirements for the Program, the customs authority shall send its written
reply to the applicant enterprise.
Article 9. Preferential import duty rates
applied to materials, supplies and accessories used for manufacturing,
processing (assembling) supporting industrial products prioritized for
development of the automobile manufacturing and assembly industry to December
31, 2024 (hereinafter referred to as tax incentive program for automobile
supporting industry)
1. The Program prescribes that 0% preferential
import tax rates will be levied on input or raw materials and accessories that
have not yet been domestically made to manufacture, process (assemble)
supporting products given priority for development of the automobile
manufacturing and assembly industry (hereinafter referred to as automobile
supporting products) to December 31, 2024 as follows:
a) At the time of registration of their declaration
forms, customs declarants shall declare and calculate duties levied on imported
raw materials, supplies and accessories at normal import duty rates or at
preferential import duty rates or at special preferential import duty rates in
accordance with the provisions while the 0% duty rate has not yet been applied.
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2. Entities of the Program
a) Automobile parts and accessories manufacturing
and processing (assembling) enterprises;
b) Automobile manufacturing and assembling
enterprises employing themselves to manufacture and process (assemble)
automobile accessories and spare parts.
3. Eligibility requirements
a) Automobile accessories and spare parts
manufacturing and processing (assembling) enterprises must meet the following
requirements:
a.1) They have an agreement on purchase and sale of
automobile supporting products with automobile manufacturing and assembling
enterprises holding certificates of eligibility for automobile manufacture and
assembly issued by the Ministry of Industry and Trade;
a.2) Their investment certificates or investment
registration certificates or enterprise registration certificates or business
registration certificates clearly state their project's objectives or business
lines, including the manufacture of spare parts and components of automobiles
and other motor vehicles.
a.3) They have the right to own or use
manufacturing and processing (assembling) facilities, machinery and equipment
at manufacturing and processing (assembling) workshops within the territory of Vietnam.
b) Automobile manufacturing and assembling
enterprises employing themselves to manufacture and process (assemble)
automobile accessories and spare parts must have Certificates of eligibility
for automobile manufacture and assembly, issued by the Ministry of Industry and
Trade.
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c.1) Imported raw or input materials, supplies and
components or accessories (including raw or input materials, supplies and components
or accessories imported from the effective date of this Decree which are still
in stock to be carried forward from the previous periods of application of
preferential duty rates for manufacture or processing (assembling) of
automobile supporting products in the following periods of application of
preferential duty rates; excluding raw or input materials, supplies and
components or accessories which are put to use, but broken or defective) are
used for the manufacture and processing (assembly) of automobile supporting
products named in the List of supporting industrial products given priority for
development for the automobile manufacturing and assembly industry specified in
Section IV of the Appendix to the Government’s Decree No. 111/2015/ND-CP dated
November 3, 2015 on development of the supporting industry and in amendment and
supplementation documents (if any). In case where an automobile product
is merely assembled with simple details, such as screws, bolts, nuts, rivets,
and does not undergo any finished product manufacturing or processing stage, it
shall not be entitled to the tax incentive program for the automobile
supporting industry.
c.2) Raw or input materials, supplies, components,
or accessories classified as those that cannot be domestically produced are
directly imported by or imported under authorization given to enterprises
referred to in clause 2. The determination of raw or input materials,
supplies and components or accessories that have not yet been produced
domestically shall be subject to the Ministry of Planning and Investment's
regulations on the list of raw or input materials, supplies and semi-finished
products that may be domestically produced.
If any enterprise prescribed in clause 2 of this
Article meets regulations laid down in point a, b and c of this clause and
clause 4, 5, 6, 7 and 8 of this Article, they shall be entitled to 0%
preferential import duty rate applied to raw or input materials, supplies and
components or accessories imported for manufacturing, processing (assembling)
automobile supporting products within the period of consideration of grant of
tax incentive.
4. Consideration period
The maximum Consideration period shall be 06 months
from January 1 to June 30, or from July 1 to December 31 each year.
5. Documentation and application requirements for
participation in the tax incentive program for the automobile supporting
industry
a) Documentation and application requirements for
participation in the tax incentive program for the automobile supporting industry,
including:
a.1) Registration form for participation in the tax
incentive program for the automobile supporting industry by using the Form No.
08 of Appendix II hereto: 1 original;
a.2) Investment certificate or investment
registration certificate or enterprise registration certificate or business
registration certificate (applicable to the cases specified at point a of
clause 2 of this Article): 1 certified true copy;
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a.4) Certificate of eligibility for automobile
manufacturing and assembly granted by the Ministry of Industry and Trade
(applicable to the cases specified at point b of clause 2 of this Article): 1
certified true copy.
b) Procedures for registration of participation in
the tax incentive program for the automobile supporting industry
Applicant enterprises submit applications for
registration for the tax incentive program for the automobile supporting
industry directly or via the electronic data systems of customs authorities or
by post to customs authorities at places where enterprises are headquartered,
or their automobile manufacturing, processing (assembly) facilities are located
to register their participation right after the effective date of this Decree
or any time of the year. The participation in the tax incentive program for the
automobile supporting industry shall start from the submission date of the
registration form.
6. Customs declaration making procedures:
At the time of registration of the customs
declaration, the customs declarant enters "A43 - Import of goods eligible
for the tax incentive program" at “Type/Activity code”; enters
"#&7b" at "Enterprise’s internal control number"; enters
“HS code” according to the List of Vietnam’s Imports and Exports with respect
to raw or input materials, supplies and components or accessories qualified for
the Tax Incentive Program for the automobile supporting industry.
7. Inspection of automobile manufacturing and
processing (assembling) facilities of enterprises participating in the tax
incentive program for the automobile supporting industry.
After receipt of the registration application for
participation in the tax incentive program for the automobile supporting
industry, the customs authority shall carry out the inspection of the
manufacturing and processing (assembling) facilities of the applicant
enterprise; conduct the inspection of machinery and equipment at automobile
manufacturing and processing (assembling) facilities that the enterprise has
notified to the customs authority. The customs authority shall issue a
decision on the inspection of these manufacturing facilities using the Form No.
09a of Appendix II enclosed herewith and send it via the electronic data system
of the customs authority or by the registered mail or fax to the applicant
customs declarant within 03 working days from the signing date. The
inspection shall commence 5 business days after the date of issuance of the inspection
decision. The maximum duration of each inspection must be 5 business
days. Inspection’s objectives:
a) Conducting the physical inspection of automobile
manufacturing and processing facilities to verify information that enterprises
have notified to customs authorities, investment certificates or investment
registration certificates or enterprise registration certificates or business
registration certificates, land use right certificates granted by competent
state authorities to enterprises or land use right certificates granted by
competent state authorities to land owners and land, premises or workshop
rental or borrowing agreements in case enterprises leases or borrows them to
build manufacturing and processing facilities.
b) Conducting the physical inspection of machinery
and equipment at the manufacturing or processing facility to check conformance
to customs documentation on imported goods, invoices, evidence, machinery and
equipment rental and borrowing agreements (in case of renting and borrowing of
machinery and equipment); conducting the inspection of the manufacturing and
assembling processes, scale, manpower condition, machinery and equipment
condition to determine whether the applicant enterprise's manufacturing
capacity is conformable to products registered for participation in the tax
incentive program for the automobile supporting industry.
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Within 05 working days from the day on which the
inspection report is signed, the customs authority shall notify the inspected
enterprise in writing whether or not they meet manufacturing and processing
(assembling) facility, machinery or equipment requirements specified at point
a.3 of clause 3 of this Article by using the Form No. 09c of Appendix II
hereto.
During the period of participation in the tax
incentive program for the automobile supporting industry, if the participant
enterprise has any change in their address of manufacturing and processing
facility, their rights to own or use machinery and equipment at the
manufacturing and processing (assembling) facility, they must notify such
change in writing to their supervisory customs authority within 5 working days
after the change-making date. After receiving the notification of change
from the enterprise or when detecting any suspicious sign that the enterprise
changes information about their manufacturing and processing facility,
machinery and equipment without prior notice to the supervisory customs
authority, or according to risk management principles, the customs authority
shall carry out the inspection of the manufacturing and processing (assembling)
facility, or the inspection of machinery and equipment installed at the
manufacturing and processing (assembling) facility.
8. Application and documentation requirements and
procedures for application of 0% preferential tax rate
a) Documentation requirements, including:
a.1) Automobile parts and accessories manufacturing
and processing (assembling) enterprises:
Request form for grant of 0% preferential tax rate
under the tax incentive program for the automobile supporting industry by using
the Form No. 10a of Appendix II hereto: 1 original;
Investment certificate or investment registration
certificate or enterprise registration certificate or business registration
certificate (except when the applicant enterprise already submits the
registration form for participation in the tax incentive program for the
automobile supporting industry): 1 certified true copy;
Agreement on purchase and sale of automobile
supporting products with the automobile manufacturing and assembling enterprise
holding the certificate of eligibility for automobile manufacturing and
assembly issued by the Ministry of Industry and Trade: 1 original;
Processes for manufacturing and processing
(assembly) of automobile supporting products (enclosing interpretation or
explanatory notes): 1 original;
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Report on use of raw or input materials, supplies,
components, or accessories used for manufacturing, processing (assembling) of
automobile supporting products already registered for participation in the tax
incentive program for the automobile supporting industry by using the Form No.
11 of Appendix II hereto: 1 original;
Statement of value-added tax invoices corresponding
to the quantity of automobile supporting products already sold under sale
agreements by using the Form No. 12 of Appendix II hereto: 1 original;
Accounting vouchers or records proving the quantity
of imported raw or input materials, supplies, components, or accessories
already used for manufacturing and processing (assembling) of automobile
supporting products: 1 photocopy.
a.2) Automobile manufacturing or processing
(assembling) enterprises employing themselves to manufacture and process
(assemble) automobile components, accessories, or spare parts
Request form for grant of 0% preferential tax rate
under the tax incentive program for the automobile supporting industry by using
the Form No. 10a of Appendix II hereto: 1 original;
Processes for manufacturing and processing
(assembly) of automobile supporting products (enclosing interpretation or
explanatory notes): 1 original;
Statement of declarations and import duty payment
amounts with respect to raw or input materials, supplies, components, or
accessories used for manufacturing and processing (assembling) of automobile
supporting products, which is made by using the Form No. 10 of Appendix II
hereto: 1 original;
Report on use of raw or input materials, supplies,
components, or accessories used for manufacturing and processing (assembling)
of automobile supporting products, which is made by using the Form No. 11 of
Appendix II hereto: 1 original;
Statement of value-added tax invoices corresponding
to the quantity of automobile supporting products already sold to the
automobile manufacturing and assembling enterprise holding the certificate of
eligibility for automobile manufacturing and assembling, issued by the Ministry
of Industry and Trade using the Form No. 12 of Appendix II hereto: 1 original;
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Certificate of eligibility for automobile
manufacturing and assembly granted by the Ministry of Industry and Trade
(except in case of already being submitted when registering participation in
the tax incentive program): 1 certified true copy;
Accounting vouchers or records proving the quantity
of imported raw or input materials, supplies, components, or accessories
already used for manufacturing and processing (assembling) of automobile
supporting products: 1 photocopy.
b) Procedures for application of 0% preferential
tax rate:
b.1) Not later than 60 days after June 30 or
December 31 every year, the applicant enterprise sends the required application
documents specified at point a of this clause to the customs authority that is
authorized to receive application documents for registration for participation
in the tax incentive program for the automobile supporting industry. In case of
submitting application documents after 60 days, the customs authority receives
and verifies submitted documents, and imposes any administrative fine regulated
by the Government.
b.2) Based on the application for grant of 0%
preferential tax rate and the results of the inspection of the manufacturing
and processing (assembling) facility, machinery and equipment of the applicant
enterprise, the receiving customs authority checks whether the enterprise is
eligible for the tax incentive program and their conformance to requirements
for eligibility for the tax incentive program for the automobile supporting
industry, and may choose to take the following measures:
In case where submitted application is not
sufficient according to regulations in force, the customs authority can request
the applicant enterprise in writing to make any necessary amendment or
supplementation. In case there is any doubt about the accuracy of the submitted
application, the customs authority shall conduct inspections at the office of
the customs authority or the taxpayer in accordance with tax administration
law.
In case of meeting all of the eligibility
requirements for the tax incentive program for the automobile supporting
industry, the customs authority shall issue its decision to refund and make a
refund order for the overpaid duty amount to the applicant enterprise in
accordance with the Law on Tax Administration and other instructional documents
thereof. On the customs authority’s order of refund of the state budget receipt
issued by, the State Treasury shall refund the overpaid import duty amount to
the applicant enterprise. Such refund of the overpaid duty amount shall
be funded by the central government’s state budget revenues from customs
tariff.
In case of failure to meet all of the eligibility
requirements for the tax incentive program for the automobile supporting
industry, the customs authority shall send its written reply to the applicant
enterprise.
Article 10. The lists of commodities and import
duty rates imposed on commodities subject to tariff-rate quotas
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2. Annual import tariff-rate quotas on the
commodities shall comply with regulations issued by the Ministry of Industry
and Trade.
3. In-quota tariff rates on imports are specified
as follows:
If the commodities are imported within the
annual import tariff-rate quotas prescribed by the Ministry of Industry and
Trade, they will be entitled to preferential import duty rates prescribed in
Section I Appendix II of the Decree or special preferential import duty rates
prescribed in the special preferential import duty schedules (if they satisfy
all conditions for entitlement to special preferential import duty rate) issued
together with the Government’s Decrees on promulgating special preferential
import duty schedule for implementation of international treaties).
If the Government’s Decrees on promulgating special
preferential import duty schedule for implementation of international treaties
stipulate requirements for application of in-quota special preferential import
tariff rates, the requirements shall prevail.
4. Out-of-quota tariff rates on imports are
specified as follows:
a) The commodities prescribed in Clause 1 of this
Article whose imported quantity exceeds the annual import quotas prescribed by
the Ministry of Industry and Trade will be subject to out-of-quota tariff rates
prescribed in Appendix IV of this Decree.
b) If international treaties to which the Socialist
Republic of Vietnam is a signatory contain import quotas and/or out-of-quota
tariff rates imposed on the commodities mentioned in Clause 1 of this Article,
the Government’s Decrees on promulgating special preferential import duty
schedules for implementation of these international treaties will be applied.
If the out-of-quota tariff rates prescribed in international treaties are
greater than those prescribed in Appendix IV of this Decree, the out-of-quota
tariff rates specified in Appendix IV will be imposed.
Article 11. Responsibilities for implementation
1. The Ministry of Finance shall conduct the
inspection, supervision, price consultation and trade fraud combat according to
regulations on goods taxed at high import duty rates and goods with
considerable risk on customs valuation.
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3. The Ministry of Industry and Trade shall:
a) grant certificates of eligibility for automobile
manufacture and assembly regulated by the Government's regulations on
eligibility conditions for automobile manufacture, assembly, import and
provision of vehicle warranty and maintenance services in accordance with law;
b) Promulgate regulations to internalize the
provisions on the amount of tariff quotas in the international treaties to
which Vietnam is a contracting party.
4. Competent state authorities shall issue
investment certificates, investment registration certificates or investment
policy decisions, enterprise registration certificates and business
registration certificates to enterprises strictly according to regulations of
law.
5. Relevant ministries and local governments shall,
according to their functions and tasks, conduct the examination and control
activities to ensure due implementation of policies and anti-fraud practices.
6. Ministers, heads of ministerial-level agencies,
heads of Governmental agencies, heads of related agencies, Presidents of
People’s Committees of provinces and centrally affiliated to cities, and
relevant organizations and individuals shall implement this Decision.
Article 12. Entry in force
1. This Decree comes into force as of 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.
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In case an enterprise has participated in the Tax
Incentive Program but has not yet been refunded the import duty paid from
October 1, 2022 to the effective date of this Decree, it will be entitled to a
tax refund equivalent to the number of auto parts that have been imported if
the requirements specified in the tax incentive program are satisfied, the
requirement pertaining to minimum degree of auto parts is not applicable.
If an enterprise imports CKD and IKD kits of auto
parts for manufacturing and assembly, even if it is an authorized importer,
entrusted importer under an entrustment contract, or an importer under a sales
contract with an auto manufacturing and assembly enterprise, from October 1,
2022 to the effective date of this Decree, and it chooses to impose duties on
each auto part or component or under heading 98.21, it must meet the
requirements laid down in Decree No. 57/2020/ND-CP dated May 25, 2020, the
requirement pertaining to minimum degree of auto parts is not applicable.
4. Preferential import duty rates for imported auto
parts of 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
Tax Incentive Program before the effective date of this Decree must re-register
with the customs authorities as prescribed in this Decree.
If, after enrolling in the Tax Incentive Program,
the enterprise adds or changes vehicle groups, makes, or the number of vehicle
makes registered in the Tax Incentive Program, they must re-register with the
customs authority.
5. Preferential import duty rates for raw
materials, supplies and components for the manufacturing, processing (assembly)
of supporting industry products prioritized for development for the automobile
manufacturing and assembly industry prescribed in Article 9 of this Decree
shall be applied until December 31, 2024. Enterprises that have enrolled in the
Tax Incentive Program for the automobile supporting industry specified before
the effective date of this Decree must re-register for the Automotive Support
Industry Tax Incentive Program and enjoy incentives under this Decree.
ON BEHALF OF
THE GOVERNMENT
PP. PRIME MINISTER
DEPUTY PRIME MINISTER
Le Minh Khai
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