From July 15, how will preferential import and export tariffs be applied?

On May 31, the Government issued the Export Tariff Schedule, Preferential Import Tariff Schedule, List of goods and absolute tax rates, mixed tax, and import tax outside the tariff quota attached to Decree 26/2023/ND-CP (effective from July 15).

Preferential export and import tariff schedule effective from July 15, 2023. (Source: Dau Tu Newspaper)

Accordingly, the preferential export and import tax schedule according to the List of taxable items applied from July 15, 2023 is specifically as follows:

Export tariff schedule by item category subject to tax.

The export tax schedule according to the List of taxable goods specified in Appendix I issued with Decree 26/2023/ND-CP includes commodity codes (commodity codes), commodity descriptions, and export tax rates prescribed for each group of goods and export taxable goods.

In cases where exported goods are not listed in the Export Tariff Schedule, the customs declarant shall declare the corresponding 8-digit code of the exported goods according to the Preferential Import Tariff Schedule specified in Section I, Appendix II issued with Decree 26/2023/ND-CP and shall not be required to declare the tax rate on the export goods declaration form.

Exported goods belonging to group No. 211 in the Export Tariff must simultaneously satisfy the following two conditions:

- Condition 1: Materials, raw materials, and semi-finished products (collectively referred to as goods) do not belong to the groups numbered from 01 to 210 in the Export Tariff Schedule.

- Condition 2: Processed directly from main raw materials which are resources and minerals with total value of resources and minerals plus energy costs accounting for 51% or more of the product's production cost.

The determination of the total value of resources and minerals plus energy costs accounting for 51% or more of the product production cost is implemented according to the provisions of Decree 100/2016/ND-CP and Decree 146/2017/ND-CP and amendments and supplements (if any).

Exported goods subject to the exclusion cases specified in Clause 1, Article 1 of Decree 146/2017/ND-CP are not in group No. 211 of the Export Tariff issued with Decree 26/2023/ND-CP.

Codes and export tax rates for items in group number 211:

- For goods detailed with 8-digit codes and commodity descriptions of groups 25.23, 27.06, 27.07, 27.08, 68.01, 68.02, 68.03 in Item 211 of the Export Tariff, customs declarants shall declare the export tax rate corresponding to that goods code specified in Item 211.

In case of not declaring the export tax rate as prescribed in group No. 211, the taxpayer must submit a List of the ratio of value of resources, minerals plus energy costs in the product cost of exported goods according to Form No. 14 in Appendix II issued with Decree 26/2023/ND-CP at the time of customs procedures to prove that the declared goods have a total value of resources, minerals plus energy costs of less than 51% of the product cost.

In cases where the taxpayer is a trading enterprise purchasing goods from a manufacturing enterprise or other trading enterprise for export but does not declare the export tax rate as prescribed in group number 211, the taxpayer shall use the information provided by the manufacturing enterprise to declare using Form No. 14 in Appendix II above to prove that the proportion of natural resources, minerals plus energy costs is less than 51% of the product cost.

Taxpayers are responsible before the law for the accuracy of their declarations.

- For exported goods in group No. 211 but not yet specified with 8-digit commodity codes and meeting the above conditions, customs declarants shall declare exported goods according to the 8-digit commodity codes specified in Section I of Appendix II on the Preferential Import Tariff Schedule issued with Decree 26/2023/ND-CP and declare the export tax rate as 5%.

Preferential import tariff schedule according to the list of taxable items.

Preferential import tariff schedule according to the List of taxable items (Preferential import tariff schedule) specified in Appendix II issued with Decree 26/2023/ND-CP includes:

- Section I: Regulations on preferential import tax rates for 97 chapters according to the Vietnamese Export and Import Goods Classification List. Contents include: Names of Sections and Chapters; Notes; Subgroup Notes; Import Tariff Schedule including descriptions of goods, commodity codes (8 digits) according to the Vietnamese Export and Import Goods Classification List, and preferential import tax rates stipulated for taxable items.

In case the List of Vietnam's export and import goods is amended or supplemented, the customs declarant shall declare the description and code of the goods according to the amended or supplemented List and apply the tax rate of the amended or supplemented code.

- Section II: Regulations on the List of goods and preferential import tax rates for some goods in Chapter 98. Contents include: Notes; Classification method, conditions, procedures for applying preferential import tax rates prescribed in Chapter 98, report on inspection and settlement of the use of goods subject to preferential import tax rates prescribed in Chapter 98; List of goods and preferential import tax rates.

+ Items listed in the List of goods and preferential import tax rates specified in Clause 3, Section II, Appendix II issued with Decree 26/2023/ND-CP shall apply the preferential import tax rates specified in Clause 3, Section II, Appendix II.

The classification of goods and application of preferential import tax rates in Chapter 98 for synchronous separate automobile parts (CKD automobile parts), asynchronous automobile parts, chassis with engine and cockpit (car chassis with cockpit) are implemented according to the provisions in Clause 1.1, Section II, Appendix II.

Items: Alloy steel containing the elements Boron and/or Chromium and/or Titanium of heading 98.11; Dermal fillers, Skin protection creams, Scar reduction gels of heading 98.25; Nylon fabric 1680/D/2 and 1890 D/2 of heading 98.26; Copper wire with a maximum cross-sectional dimension exceeding 6 mm but not exceeding 8 mm of heading 98.30; Polypropylene plastic granules in primary form of heading 98.37; Non-alloy steel, in bars and irregularly wound coils, hot-rolled of heading 98.39; Set-top-boxes of heading 98.46; Net-shaped compartments made from Nano-composite Polymeric Alloy (Neoweb) material in group 98.47 are subject to preferential import tax rates in Chapter 98 if they meet the standards and technical specifications specified in Clause 1, Section II, Appendix II.

+ Classification method, conditions, procedures for applying preferential import tax rates prescribed in Chapter 98, report on final settlement of use of goods subject to preferential import tax rates prescribed in Chapter 98: Implement according to regulations in Clause 2, Section II, Appendix II.

+ List of goods and preferential import tax rates prescribed in Chapter 98 for a number of goods include: Goods code; description of goods; corresponding goods code of that item in Section I of Appendix II on Preferential import tax schedule according to the List of taxable goods; preferential import tax rates prescribed in Chapter 98.

+ Goods that meet the conditions for classification under Chapter 98 and are eligible for special preferential import duty rates according to current regulations may choose to apply the special preferential import duty rate specified in the Special Preferential Import Tariff Schedule or the preferential import duty rate specified in Chapter 98 of the Preferential Import Tariff Schedule.

For goods classified in Chapter 98, when carrying out customs procedures, the customs declarant shall declare in the column "Corresponding goods code in Section I, Appendix II" stated in Chapter 98, and write next to the goods code of Chapter 98.

Source: https://baoquocte.vn/tu-ngay-157-bieu-thue-xuat-khau-nhap-khau-uu-dai-duoc-ap-dung-the-nao-230032.html