On June 26th, 2019, the Government issued Decree No.
57/2019/ND-CP on Preferential tariff for export, Special preferential tariff
for import to implement CPTPP Agreement from 2019 to 2022. CPTPP has come into
force as of January 14th, 2019, however, the Decree 57 is the
official legislation incorporating CPTPP’s commitment into national laws.
Tariff concessions applying to each country
In addition to 0% tax applied to many products as soon as effect
of Decree 57, the remaining is eliminated as scheduled into 4 stages: from
January 14th, 2019 to end of 2019, 2020, 2021 and 2022 equivalent to
each tariff concessions.
The first six countries which have approved CPTPP Agreement
including Mexico, Japan, Singapore, New Zealand, Canada and Australia. Vietnam
was the seventhly country completing ratification procedures to bring the
Agreement into effect. Under the CPTPP Agreement, the first six countries
ratifying the Agreement have the right to notify to the later ratifying
countries about the schedule of tariff concessions. Based on such provision,
Article 4 and 5 of Decree 97 stipulates the reduction of import and export tax
levels for each group of countries including: the group of five countries of
Japan, Singapore, New Zealand, Canada and Australia shall may be applied the
second level of tax reduction from January 14th, 2019 due to similar
application of such countries to Vietnam; and Mexico shall be applied the first
level of tax reduction from January 14th, 2019.
The conditions for applying preferential export tariff
Under the CPTPP
Agreement, the Schedule for preferential export tariff include 519 tax lines,
tax of 0% shall be applied to the goods outside such Schedule exporting to
territory of country members to which CPTPP Agreement has taken effect. The
exporting companies shall meet the followings to enjoy the preference:
-Goods shall be exported to 6 countries to which CPTPP Agreement
has taken effect (Mexico, Japan, Singapore, New Zealand, Canada and Australia).
-Having the instruments of transportation showing the
destination in territory of country members to which CPTPP Agreement has taken
effect
-Having importing declarations of the shipment at customs of the
member countries to which the CPTPP Agreement has taken effect.
The conditions for applying special preferential import
tariff
Imported goods subject
to special preferential import tariff under the CPTPP Agreement shall meet the
following conditions:
-Imported goods belong to Preferential import tariff or List of
products and preferential import tax or List of products and special
preferential import tax for used cars.
-Being imported from member countries to which the CPTPP Agreement
has taken effect and Vietnamese non-tariff zones to domestic market.
-Being transported into Vietnam from member countries to which
the CPTPP Agreement has taken effect (in case of transshipment and cargo in
transit, other conditions).
-Vietnam currently is a member and negotiating many free trade
agreements to promote exports. This action will make a strong progress in
import and export activities in international arena.
ANT Lawyers is a Law firm in Vietnam with international standards, recognized by Legal500,
IFLR1000. We are an exclusive Vietnam member of Prea Legal, the global law firm
network coverig more than 150 juridictions. The firm provides a range of
legal services as following to multinational and domestic clients.
To
learn more about ANT Lawyers International Trade and Tax or contact our
lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at
(+84) 24 730 86 529
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