Vietnam - Laos special preferential import tariff

Published on 21 - 10 - 2021
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On 19/10/2021, the Government issued the Decree No. 90/2021/ND-CP on Vietnam's Special Preferential Import Tariff to implement the Trade Agreement between the Governments of the Socialist Republic of Vietnam and the Lao People's Democratic Republic from October 4, 2020 to October 4, 2023.

Accordingly, the list of goods originating from Laos under the Vietnam-Laos Trade Agreement issued together with this Decree includes:

Appendix I - List of goods entitled to 50% reduction of Vietnam's ATIGA tax rate under the Vietnam-Laos Trade Agreement.

Appendix II - List of goods not entitled to preferential tariffs under the Vietnam-Laos Trade Agreement.

Appendix III - List of goods entitled to the annual tariff quota under the Vietnam-Laos Trade Agreement.

The Decree stipulates that imported goods originating from Laos, except for imported goods in the List of goods specified in Appendix I, II and III issued together with this Decree, shall apply special preferential import tax rate of 0% if the following conditions are met: Being imported from Laos into Vietnam; meeting the provisions of the current law on the Rules of Origin applicable to goods enjoying Vietnam-Laos preferential tariff and having a Certificate of Origin - form S (C/O form S) issued by competent authorities of Laos as prescribed.

The Decree stipulates that goods imported from Laos on the list of goods specified in Appendix I issued together with this Decree are entitled to a special preferential import tax rate equal of 50% of the ATIGA tax rate specified in Table on the special preferential import tax promulgated together with the Decree No. 156/2017/NCC-CP on the promulgation of Vietnam's special preferential import tariff for the implementation of the ASEAN Trade in Goods Agreement for the period of 2018- 2022 and amendments and supplements (if any) if the prescribed conditions are met. Specifically, the List of 14 types of goods entitled to 50% reduction of Vietnam's ATIGA tax rate under the Vietnam-Laos Trade Agreement, includes as follows: Raw eggs of chicken species of Gallus domesticus (Code 0407.21.00) ; raw eggs of ducks and geese (Code 0407.29.10); other paddy (Code 1006.10.90); Hom Mali Rice (Code 1006.20.10); cane or beet sugar and chemically pure sucrose, in solid form with added flavoring or coloring (Code 1701.91.00);…

In case the ATIGA tax rate is higher than the preferential import tax rate specified in the Government's Decree No. 57/2020/ND-CP dated May 25, 2020, amending and supplementing a number of articles of the Decree No. 122 /2916/ND-CP dated September 1, 2016 of the Government on Export Tariff, Preferential Import Tariff, List of goods and absolute tax rates, mixed tax, import tax outside tax quotas and the Decree No. 125/2017/ND-CP dated November 16, 2017 amending and supplementing a number of articles of the Decree No. 122/2016/ND-CP (MFN Tariff) and amendments and supplements (if any), the special preferential import tax rate equal of 50% of the tax rate is applied as specified in the MFN Tariff.

The Decree clearly states that goods in Appendix II issued together with this Decree will not enjoy special preferential import tax rate under the Vietnam-Laos Trade Agreement when imported into Vietnam.

Notably, there are 385 types of goods that are not eligible for preferential tariff under the Vietnam-Laos Trade Agreement, as follows: Poppy seeds (Code 1207.91.00); Poppy powder (Pulvis opii) (Code 1302.11.10); Virginia-unstemmed tobacco leaves, other than hot air-dried (Code 2401.10.20); Artillery weapons (for example guns, mortars) (Code 9301.10.00); …

In particular, the items of 8702, 8703 and 8711 group will not enjoy special preferential import tax rate under the Vietnam-Laos Trade Agreement.

This Decree takes effect from the date of signing.

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