Apply 609 preferential export tax lines, 11,526 special preferential import tax lines to implement the CPTPP Agreement

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The special preferential import tax table in implementing the CPTPP includes 11,526 tax lines. Photo: ST

Decree No. 115/2022/ND-CP on Vietnam's Preferential Export Tariff and Special Preferential Import Tariff for implementing the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) period 2022 – 2027 was promulgated by the Government at the end of 2022. Previously, the CPTPP Agreement was signed on March 8, 2018, and took effect on December 30, 2018, after the first 6 member countries ratified the Agreement and fulfilled the obligation to notify the depositary of the Agreement, including Australia, Canada, Japan, Mexico, New Zealand, and Singapore. For Vietnam, on November 12, 2018, at the 6th session, the XIV National Assembly passed Resolution No. 72/2018/QH14 ratifying the CPTPP Agreement and related documents.

To implement Vietnam's import and export tax commitments under the CPTPP Agreement, the Ministry of Finance has submitted to the Government for promulgation Decree No. 57/2019/ND-CP dated June 26, 2019. Vietnam's preferential export tariff and special preferential import tariff for the implementation of the CPTPP Agreement for the period of 2019-2022 apply to 6 member countries that have ratified the Agreement until June 26, 2019, including Australia, Canada, Japan, Mexico, New Zealand, Singapore and Decree No. 21/2022/ND-CP dated March 10, 2022, amending and supplementing several articles of Decree No. 57/2019/ND-CP dated June 26, 2019, to supplement regulations applicable to Peru after the CPTPP Agreement took effect for Peru on September 19, 2021. The Tariffs issued and the above Decree are built according to the ASEAN Harmonized Tax Table 2017 version.

On March 8, 2022, the Government issued Resolution No. 29/NQ-CP approving the List of ASEAN Harmonized Tariffs version 2022 (the AHTN 2022 List). Accordingly, to achieve consistency with the List of export and import goods of Vietnam to deploy the List of AHTN 2022 and to continue to implement the commitments on import and export tax in the CPTPP Agreement, the Ministry of Finance has developed and submitted to the Government to sign and promulgate Decree No. 115/2022/ND-CP dated December 30, 2022, promulgating Vietnam's preferential export tariff and special preferential import tariff for the implementation of the CPTPP Agreement from 2022 to 2027. The scope of the Decree will cover all member countries of the CPTPP Agreement for which the Agreement has entered into force for those countries, including Australia, Canada, Japan, Mexico, New Zealand, Singapore, Peru and Vietnam.

Regarding the basic contents of the Decree, specifically on the preferential export tax table for the implementation of the CPTPP Agreement, the preferential export tariff table includes 609 tax lines; products not included in this Preferential Export Tariff apply a preferential export tax of 0% when exported to the territories of member countries where the CPTPP Agreement has come into force. To enjoy the preferential export tax rates, exported goods must have transport documents and import customs declarations or documents replacing customs declarations showing that the destination is in the territories of the member countries in which the CPTPP agreement has come into force, specified in the scope of regulation of the Decree.

At the time of customs procedures, customs declarants make export declarations, apply export tax rates, calculate and pay taxes according to the List of taxable items in the Decree on the Export Tariff, Preferential import tax, List of goods and absolute tax rates, mixed tax, import tax outside the tariff quota. Within one year from the export declaration's registration date, the customs declarant shall submit a photocopy of the transport document and a photocopy of the import customs declaration and make additional declarations according to the provisions of the customs law to preferential export tax rates under the CPTPP Agreement. Past the above 1-year time limit, exported goods are not eligible for preferential export tax rates under the CPTPP Agreement. The customs authority shall check the dossiers, check the preferential export tax rates. If the exported goods fully satisfy the conditions specified in the Decree, the preferential export tax rates shall be applied according to the provisions of the CPTPP Agreement and handling overpaid tax for customs declarants following the law on tax administration.

For special preferential import tax to implement the CPTPP Agreement, the special preferential import tariff includes 11,526 tax lines, of which 207 tax lines are detailed at the 10-digit level and the List of goods and Special preferential tax for used cars applying tariff quotas to implement the CPTPP. Imported goods are eligible for special preferential import tax rates under the CPTPP must fully satisfy the conditions of being on the Special Preferential Import Tariff or the List of Goods and Special Preferential Import Taxes for used cars; be imported into Vietnam from the member countries of the CPTPP Agreement that have taken effect, including goods from the non-tariff zone imported into the domestic market; meet the regulations on origin of goods and have proof of origin according to the provisions of the CPTPP.

Regarding the groups of countries in the tariff reduction roadmap of the Decree, implementing the provisions in Article 3 and Appendix 2D of the CPTPP Agreement, Vietnam applies 2 tax reduction routes for 2 groups of countries within the scope of this Decree. Accordingly, Mexico applies the tax schedule for both export tax and import tax 1 year later than the remaining group of countries, including Australia, Canada, Japan, New Zealand, Singapore and Peru. Applying a separate roadmap for the two groups of countries above ensures compliance with commitments and benefits for Vietnam based on implementing the principle of reciprocity.

Instruction relating to certificate of origin in CPTPP Agreement

The provisions of Decree No. 115/2022/ND-CP dated December 30, 2022, promulgating the Preferential Export Tariff and the Special Preferential Import Tariff of Vietnam to implement the CPTPP Agreement in the period 2022-2027 inherits the provisions of Decree No. 57/2019/ND-CP promulgating the Tariff for the implementation of the CPTPP Agreement for the period of 2019-2022. Therefore, during the implementation of the Decree, the Ministry of Finance did not record cases where enterprises and customs offices encountered problems with the provisions of the Decree.