DECREE 101| PREFERENTIAL EXPORT AND IMPORT TARIFF SCHEDULES, COMMODITIES’ LISTS, AND QUOTA IMPORT DUTIES
On 15 November 2021, the Government issued Decree No. 101/2021/ND-CP (“Decree 101”) to amend Decree 122/2016/ND-CP, Decree 125/2017/ND-CP and Decree No. 57/2020/ND-CP on preferential export and import tariff schedules, commodities’ lists, and quota import duties.
The main adjustments include the following:
1.Adjustment of export tariff, preferential import tariff rates
Regarding export tariff rates, Appendix I of Decree 101 provides new adjustments for some groups of commodities, while Appendix II of Decree 101 provides adjusted preferential import tariff rates.
Some new adjustments include:
In addition, Decree 101 also includes new applicable commodities of “oil seeds and oil fruits suitable for planting” (HS code 9805.00.00) and “engine ECU used for motor vehicles” (HS code 9849.46.00).
2. Adjustment of the export tariff schedule
Decree 101 provides new guidance for the export commodities of group 211 in the export tariff schedule.
Accordingly, for commodities of sub-group codes 25.23, 27.06, 27.07, 27.08, 68.01, 68.02, 68.03 that have corresponding 8-digit codes, the taxpayer may either pay tariffs at (i) the predefined rate in the export tariff schedule, or (ii) the rate calculated based on the value ratio of input resources.
For commodities of the same sub-groups without the corresponding 8-digit code, the export tariff rate is 5%.
3. Adjustment to conditions of preferential import tariff for automobile companies
a. New applicable emission standards
For vehicles manufactured from 2018 up to the end of 2021, the emission standards eligible for preferential import tariff are level 4 and level 5.
For vehicles manufactured from 2022, the emission standards eligible for preferential import tariffs are level 5 or higher; or level 4 with the Certificate of Technical Safety and Environmental Safety granted before January 01, 2022.
b. Adjustment to incentive consideration period
Corporate taxpayers may choose between a 6-month or 12-month incentive consideration period, compared to only the 6-month period as prescribed in the previous regulations. The preferential import tariff will be calculated based on the specific consideration period selected by the company.
c. Applicable production volume
Decree 101 provides the new production volume eligible for preferential import tariffs for 2021 and the period of 2022-2027.
For gas and diesel vehicles, the applicable production volume has been decreased significantly, which makes it easier for manufacturers to qualify for preferential import tariffs. The total volume may be combined from the volume of vehicles with level 4 and level 5 emission standards.
For electric vehicles; battery-powered vehicles; hybrid vehicles; vehicles running on 100% biofuel; natural gas vehicles, the production volume remains the same as previous regulations.
