Integrated document No. 07/VBHN-BTC dated April 22, 2025 Decree on Schedule of Export Tariffs, Schedule of Preferential Import Tariffs, Tariff Nomenclature, and fixed duties, mixed duties, out-of-quota import duties

MINISTRY OF FINANCE OF VIETNAM -------	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom – Happiness ---------------
No: 07/VBHN-BTC	Hanoi, April 22, 2025

DECREE

SCHEDULE OF EXPORT TARIFFS, SCHEDULE OF PREFERENTIAL IMPORT TARIFFS, TARIFF NOMENCLATURE, AND FIXED DUTIES, MIXED DUTIES, OUT-OF-QUOTA IMPORT DUTIES

The following Decrees provide for amendments to the the Government's Decree No. 26/2023/ND-CP dated May 31, 2023 on Schedule of Export Tariffs, Schedule of Preferential Import Tariffs, Tariff Nomenclature, and fixed duties, mixed duties, out-of-quota import duties and effective from July 15, 2023:

1. Decree No. 144/2024/ND-CP dated November 1, 2023 of the Government on amendments to certain articles of the Government's Decree No. 26/2023/ND-CP dated May 31, 2023 on Schedule of Export Tariffs, Schedule of Preferential Import Tariffs, Tariff Nomenclature and fixed duties, mixed duties, out-of-quota import duties, which comes into force form December 16, 2024;

2. Decree No. 21/2025/ND-CP dated February 10, 2025 of the Government on amendments to Article 9 of the Government's Decree No. 26/2023/ND-CP dated May 31, 2023 on Schedule of Export Tariffs, Schedule of Preferential Import Tariffs, Tariff Nomenclature and fixed duties, mixed duties, out-of-quota import duties, which comes into force from February 10, 2025;

Pursuant to the Law on Organization of the Government of Vietnam dated June 19, 2015; the Law on Amendments to the Law on Organization of the Government of Vietnam and the Law on Organization of the Local Government of Vietnam dated November 22, 2019;

Pursuant to the Law on Export and Import Duties dated April 6, 2016;

Pursuant to the Law on Tax Administration dated June 13, 2019;

Pursuant to the Law on Customs dated June 23, 2014;

Pursuant to Resolution No. 71/2006/QH11 dated November 29, 2006 of the National Assembly on ratification of Protocol on accession of the Socialist Republic of Vietnam to the Agreement establishing the World Trade Organization;

At the request of the Minister of Finance;

The Government promulgates a Decree on Schedule of Export Tariffs, Schedule of Preferential Import Tariffs, Tariff Nomenclature and fixed duties, mixed duties, out-of-quota import duties. [2]

Article 1. Scope

This Decree provides for Schedule of Export Tariffs, Schedule of Preferential Import Tariffs, Tariff Nomenclature and fixed duties, mixed duties, out-of-quota import duties.

Article 2. Regulated entities

1. Taxpayers as defined in the Law on Export and Import Duties.

2. Customs authorities and customs officials.

3. Organizations and individuals that have rights and obligations related to imports and exports.

Article 3. Promulgation of Schedule of Export Tariffs, Schedule of Preferential Import Tariffs under Nomenclature of Dutiable Goods, Tariff Nomenclature and fixed duties, mixed duties, out-of-quota import duties

Promulgated together with this Decree are:

1. Appendix I - Schedule of Export Tariffs under Nomenclature of Dutiable Goods.

2. Appendix II - Schedule of Preferential Import Tariffs under Nomenclature of Dutiable Goods.

3. Appendix III - Tariff Nomenclature and fixed duties, mixed duties on used passenger automobiles with a seating capacity of up to 15 seats.

4. Appendix IV - Tariff Nomenclature and out-of-quota import duty rates imposed on goods subject to tariff-rate quotas.

Article 4. Schedule of Export Tariffs under Nomenclature of Dutiable Goods

1. The Schedule of Export Tariffs under Nomenclature of Dutiable Goods specified in Appendix I issued herewith comprises HS codes, goods description, and export duty rates applicable to each the heading No. and each dutiable product. In cases where any export is not named in in the Schedule of Export Tariffs, the customs declarant shall declare HS code of such export corresponding to its 8-digit HS code under the Schedule of Preferential Import Tariffs provided in Section I, Appendix II issued herewith and shall not be required to enter the duty rate in his/her export declaration.

2. Exports belonging to the heading No. 211 in Schedule of Export Tariffs must simultaneously meet the following two requirements:

a) 1st requirement: They are supplies, raw or input materials, semi-finished products (collectively referred to as "goods") that do not belong to the headings No. from No. 01 to No. 210 in the Schedule of Export Tariffs.

b) 2nd requirement: They are ones which are directly made from raw materials that are mainly natural resources or minerals and of which the aggregate value of such natural resources/minerals plus energy costs accounts for at least 51% of their production cost. The above-mentioned aggregate value shall be determined in accordance with Decree No. 100/2016/ND-CP and Decree No. 146/2017/ND-CP .

Exports falling within exceptions specified in clause 1, Article 1 of Decree No. 146/2017/ND-CP dated December 15, 2017 do not belong to the heading No. 211 of the Schedule of Export Tariffs issued herewith.

3. HS codes of goods belonging to the heading No. 211 and export duty rates applying thereto:

The taxpayer shall declare export duty rates of goods with 8-digit HS codes and description of goods in headings No. 25.23, 27.06, 27.07, 27.08, 68.01, 68.02, 68.03 of the heading No. 211, which correspond with HS codes of such goods of the heading No. 211. Otherwise, the taxpayer shall submit a Statement of ratios of the value of natural resources/minerals plus energy cost to production cost of the exports (using Form No. 14 specified in Appendix II issued herewith) while following customs procedures in order to prove that the aggregate value of natural resources/minerals plus energy costs is less than 51% of their production cost. In case the taxpayer is a trade enterprise that purchase goods from a manufacturer or from another trade enterprise for export but does not declare export duty rates of goods of the heading No. 211, the taxpayer shall complete Form No. 14 in Appendix II according to information provided by the manufacturer in order to prove that the aggregate value of natural resources/minerals plus energy costs is less than 51% of their production cost. The taxpayers shall be legally responsible for their declaration.

Regarding exports belonging to the heading No. 211 that do not have 8-digit HS codes and meet the requirements specified in clause 2 of this Article, the taxpayer shall declare the 8-digit HS codes in the Schedule of Preferential Import Tariffs specified in Section I, Appendix II issued herewith and the export duty rate of 5%.

Article 5. Schedule of Preferential Import Tariffs under Nomenclature of Dutiable Goods

The Schedule of Preferential Import Tariffs under Nomenclature of Dutiable Goods (hereinafter referred to as "Schedule of Preferential Import Tariffs") specified in Appendix II issued herewith comprises:

1. Section I: Prescribes preferential import duty rate on goods in 97 chapters of the Nomenclature of Vietnam’s Exports and Imports. This section is divided into Parts, Chapter; Notes; Sub-the heading No. Notes; the Schedule of Import Tariffs comprising description of goods, 8-digit HS codes adopted according to the Nomenclature of Vietnam’s Exports and Imports and preferential import duty rates applied to dutiable goods.

In case of amendments to the Nomenclature of Vietnam’s Exports and Imports, customs declarants shall declare description of goods and HS codes in accordance with the amended Nomenclature and apply the corresponding duty rates.

2. Section II: Prescribes Tariff Nomenclature and preferential import duty rates applied to certain goods specified in Chapter 98, including Notes; Classification methods of goods, requirements and procedures for application of preferential import duty rates on such goods specified in Chapter 98, and the report on inspection of use of goods eligible for preferential import duty rates specified in Chapter 98 and finalization thereby; Tariff Nomenclature and preferential import duty rates.

a) The goods named in the Tariff Nomenclature and preferential import duty rates specified in clause 3 Section II of Appendix II issued herewith shall be eligible for preferential import duty rates prescribed therein.

The classification methods of goods and application of preferential import duty rates specified in Chapter 98 on completely knocked down (CKD) kits of auto components, incompletely knocked down (IKD) kits of auto components, chassis fitted with engines and cabins of automobiles are prescribed in clause 1.1, Section II of the Appendix II.

Alloy steels containing boron and/or chromium and/or titanium of the heading No. 98.11; fillers, skin care products of the heading No. 98.25; 1680/D/2 and 1890 D/2 nylon tire cord fabrics of the heading No. 98.26; copper wires whose dimension of cross section is between 6 mm and 8 mm of the heading No. 98.30; Polypropylene granules in primary form of the heading No. 98.37; bars and rods, hot-rolled, in irregularly wound coils, of other alloy steel of the heading No. 98.39; Set top boxes of the heading No. 98.46; Neoweb commodities of the heading No. 98.47 shall be eligible for preferential import duty rates specified in Chapter 98 if they conform to standards and technical parameters as prescribed in clause 1, Section II of Appendix II.

b) The classification methods of goods, requirements and procedures for application of preferential import duty rates on such goods specified in Chapter 98, and the report on inspection of use of goods eligible for preferential import duty rates specified in Chapter 98 and finalization thereby are prescribed in clause 2, Section II of Appendix II.

c) The Tariff Nomenclature and preferential import duty rates applicable to certain goods specified in Chapter 98 comprise: HS codes; description of goods; corresponding HS codes of such goods specified in Section I, Appendix II; preferential import duty rates specified in Chapter 98.

d) Goods that are eligible for both preferential import duty rates specified Chapter 98 and special preferential import duty rates under applicable regulations of laws may apply either of such above-mentioned duty rates.

With regard to goods eligible for preferential import duty rates specified in Chapter 98, customs declarants shall, when following the customs procedures, specify HS codes of goods in “Mã hàng tương ứng tại Mục I Phụ lục II” column (corresponding HS codes in Section I, Appendix II) and write down HS codes of such goods specified in Chapter 98 to the side.

Article 6. Preferential import duty rates applicable to machine tools

The preferential import duty rates applicable to machine tools belonging to headings No. from 84.54 to 84.63 are specified as follows:

1. The import duty of 0% shall apply to machine tools not yet manufactured domestically as determined by the Ministry of Planning and Investment's list of domestically manufactured machines and equipment.

2. The preferential import duty rates applicable to goods of headings No. from 84.54 to 84.63 specified in Section I of Appendix II issued herewith shall apply to machine tools not covered by clause 1 of this Article.

Article 7. Import duties on used automobiles

1. The fixed duty rate specified in Appendix III issued herewith shall apply to used passenger automobiles with a seating capacity of up to 9 seats and a cylinder capacity not exceeding 1,000 cc of the heading No. 87.03.

2. The mixed duty rate specified in Appendix III issued herewith shall apply to used passenger automobiles with a seating capacity of up to 9 seats and a cylinder capacity exceeding 1,000 cc of the heading No. 87.03 and those with a seating capacity from 10 to 15 seats of the heading No. 87.02.

3. The preferential import duty rate of 150% shall apply to used passenger automobiles with a seating capacity of at least 16 seats of the heading No. 87.02 and used motorized cargo vehicles with the gross vehicle weight rating (GVWR) not exceeding 5 metric tons of the heading No. 87.04 (except for refrigerated lorries (trucks), refuse/garbage collection vehicles having a refuse compressing device, bulk-cement lorries (trucks) and hook-lift lorries (trucks)).

4. Duty rates applicable to other used automobiles of headings No. 87.02, 87.03 and 87.04 shall be equal to 1.5 times the preferential import duty rates applicable to new vehicles of the same category under same headings No. prescribed in Section I, Appendix II issued herewith.

Article 8. Preferential import duty rates applicable to imported auto components under the Tax Incentive Program for Automobile Manufacturing and Assembly (hereinafter referred to as “the Program”)

1. The preferential import duty rate of 0 % shall apply to imported auto components of the heading No. 98.49 specified in clause 3, Section II, Appendix II issued herewith as follows:

a) At the time of customs declaration, the customs declarant shall declare and calculate duties on imports according to the ordinary import duty rate, preferential import duty rate or special preferential import duty rate in accordance with applicable regulations of law, without applying the preferential import duty rate of 0 % to goods of the heading No. 98.49.

b) The preferential import duty rate of 0 % shall apply to auto components of the heading No. 98.49 in accordance with the provisions outlined in points 2 through 8 of this Article.

2. Regulated entities of the Program

Enterprises holding a certificate of eligibility for automobile manufacturing and assembly issued by the Ministry of Industry and Trade.

3. Eligibility requirements of the Program

a) Imported auto components must meet the following eligibility requirements:

a.1) Auto components are named of the heading No. 98.49 and classified as those which have not yet been manufactured domestically, and used for manufacturing and assembling automobiles within the period of consideration of grant of tax incentive (hereinafter referred to as consideration period) (including those in stock from the previous period which are used for manufacturing and assembly of automobiles released from the factory within the succeeding periods). Auto components not yet manufactured domestically shall be determined on the basis of the Ministry of Planning and Investment's list of raw or input materials, supplies and semi-finished products that may be domestically manufactured.

a.2) Imported auto components are directly imported or imported in entrust or under authorization by automobile manufacturing and assembling enterprises.

a.3) An imported auto component kit (imported from multiple sources and shipments) that comprises an auto body and an auto chassis must meet the following requirements:

The auto body must consist of at least the following assemblies: roof, floor, left flank, right flank, front, rear and associated arrays (if any) that are separate and have not been powder coated;

Auto chassis must be imported one with a length of less than 3.7 m, whether or not linked together, which has not yet been powder coated; one with a length of 3.7 m or more, whether or not linked together, which is allowed to be powder coated before being imported.

a.4) Imported auto components not included of the heading 87.07 (coachwork, including cabin).

b) Enterprises manufacturing and assembling electric automobiles, fuel-cell automobiles, hybrid automobiles, fully biofuel automobiles, and natural gas automobiles are not required to register vehicle models when participating in the Program.

b.1) Enterprises are not required to meet the minimum output requirement in the first registration period and the immediately subsequent consideration period. If they meet the provisions in clause 2, point a of clause 3, clauses 4, 6, 7, and 8 of this Article, the import duty rate of 0% shall apply to all of auto components imported for manufacturing and assembly of automobiles, for which such enterprises have registered to participate in the Tax Incentive Program, released from the factory within that consideration period.

b.2) If enterprises meet the minimum output requirement as prescribed in point b, clause 5 of this Article and meet the requirements specified in clause 2, point a of clause 3, clauses 4, 6, 7, and 8 of this Article during subsequent consideration periods, the import duty rate of 0% shall apply to all of auto components imported for manufacturing and assembly of automobiles, of which the output requirement is met by such enterprises, released from the factory within that consideration period.

c) With regard to enterprises manufacturing and assembling gasoline and diesel automobiles:

c.1) Emission standards

An enterprise manufacturing and assembling gasoline and diesel automobiles shall manufacture and assemble automobiles that conform to at least Level 5 emission standard from 2022 onwards and those that conform to Level 4 emission standard with a certificate of technical safety and environmental protection issued before January 1, 2022 and remaining effective in accordance with Decree No. 116/2017/ND-CP dated October 17, 2017, and its amendments or replacements (if any).

c.2) Vehicle models

Enterprises manufacturing and assembling gasoline and diesel automobiles may register 01 (one) or more vehicle models when participating in the Program. During the program, such enterprises may register any change or addition to vehicle models or the quantity of registered vehicle models. The output of changed or added models shall be added to the general minimum output as a basis for consideration of tax incentives but must still meet the specific minimum output requirement imposed on each consideration period. Models of vehicles belonging to different vehicle headings are defined as follows:

Passenger automobiles with a seating capacity of up to 9 seats and cylinder capacity of up to 2,500cc (belonging to heading No. 87.03) are those with same engine specifications and a cylinder capacity of up to 2,500cc; same bodywork criteria (or chassis criteria); fuel consumption under 7.5 liters/100 km as determined on the basis of the fuel consumption per a combined cycle specified in the fuel consumption certificate issued by the Vietnam Register.

Mini-buses (including passenger automobiles with a seating capacity from 10 to 19 seats belonging to the heading No. 87.02) and buses/passenger automobiles (including passenger automobiles with a seating capacity of up to 20 seats belonging to the heading No. 87.02) are those with the same engine specifications and the same chassis criteria;

Automobiles classified into the truck heading (including motorized cargo vehicles belonging to the heading No.87.04, and specialized motorized vehicles belonging to the heading No. 87.05) are those with the same engine specifications and the same cabin criteria.

The engine specifications of a vehicle model shall be determined on the basis of the cylinder capacity or type or engine capacity specified in the certificate of technical safety and environment protection for manufactured or assembled automobiles issued by the Vietnam Register. Bodywork (or chassis), frame and cabin criteria shall be determined on the basis of the vehicle's basic technical specifications and chassis structure specified in the design explanation and technical drawings with “tested” marks issued by the Vietnam Register.

c.3) General minimum output requirement (referring to the manufacturing and assembling output imposed on vehicles of each vehicle heading) and specific minimum output requirement (referring to the manufacturing and assembling output imposed on each participating vehicle model)

The following regulations shall apply if enterprises meet the general minimum output requirement or the specific minimum output requirement:

c.3.1) If they meet the general minimum output requirement imposed on each of their vehicle headings and the specific minimum output requirement imposed on at least one vehicle model specified for each consideration period in accordance with point a clause 5 of this Article, and meet requirements specified in clause 2, points a, c.1, c.2 of clause 3, clauses4, 6, 7 and 8 of this Article, the import duty rate of 0% shall apply to all of the auto components imported for manufacturing and assembly of automobiles, of which the output requirement is met by such enterprises, released from the factory within that consideration period.

In case of manufacturing and assembling gasoil and diesel automobiles, electric automobiles, fuel-cell automobiles, hybrid automobiles, fully biofuel automobiles, and natural gas automobiles, when determining the general minimum output of the heading of gasoil and diesel automobiles, they may add the output of electric, fuel-cell, hybrid, fully biofuel and natural gas automobiles manufactured or assembled within the consideration period to the general minimum output of the same heading of gasoil and diesel automobiles during consideration of grant of tax incentive.

c.3.2) If they meet the requirements specified in clause 2, points a, c.1, c.2 of clause 3, clauses 4, 6, 7, and 8 of this Article and their actual manufacturing and assembling output of one registered model of passenger automobiles with a seating capacity of up to 9 seats within the consideration period reaches at least 1.3 times the specific minimum output of such model as prescribed in point a, clause 5 of this Article, the import duty rate of 0% shall apply to auto components imported for manufacturing and assembly of vehicles of such registered model released from the factory within that consideration period.

c.3.3) If they meet the requirements specified in clause 2, points a, c.1, c.2 of clause 3, clauses 4, 6, 7, and 8 of this Article and their total actual manufacturing and assembling output of two registered models of passenger automobiles with a seating capacity of up to 9 seats within the consideration period reaches at least 1.5 times the specific minimum output of such model as prescribed in point a, clause 5 of this Article, the import duty rate of 0% shall apply to auto components imported for manufacturing and assembly of vehicles of such two registered models released from the factory within that consideration period.

c.3.4) If they register for the Program for at least two vehicle headings and meet the requirements specified in clause 2, point a, c.1. c.2 of clause 3, clauses 4, 6, 7 and 8 of this Article, and their total actual manufacturing and assembling output of registered vehicle headings within the consideration period is at least equal to total general minimum output of vehicles belonging to corresponding vehicle headings as prescribed in point a clause 5 of this Article, the import duty rate of 0% shall apply to auto components imported for manufacturing and assembly of vehicles belonging to registered vehicle headings released from the factory within that consideration period.

c.3.5) In case the first consideration period of an enterprise manufacturing and/or assembling automobiles specified in point c.3.1, c.3.2, c.3.3, c.3.4 of this clause is shorter than a full period (6 or 12 months), but the actual quantity of manufactured/assembled vehicles of the enterprise is not smaller than the average monthly minimum production multiplied by (x) the number of months of participating in the Program in the period, and the actual quantity of manufactured/assembled vehicles of the registered model is not smaller than the specific minimum output multiplied by (x) the number of months of participating in the Program in the period, and the general minimum production and specific minimum output of the next period are also achieved, then the number of auto components used for manufacturing and assembling vehicles in that first period shall be eligible for duty rate of 0% provided the enterprise meets the requirements specified in clause 2, point a, c.1. c.2 of clause 3, clauses 4, 6, 7 and 8 of this Article. In case the number of days of participating in the Program in the first month is at least 15 days, it will be considered a full month. In case the number of days of participating in the Program in the first month is less than 15 days, that month will not count.

4. Consideration period

An enterprise may select a 6-month or 12-month consideration period as follows:

a) A 6-month consideration period starts from January 01 to June 30 or from July 01 to December 31 every year.

In case the enterprise selects a 6-month consideration period, the overpaid tax on auto components used for manufacture or assembly of automobiles released from the factory in the first 06 months has been settled but that of the last 06 months of the year is below the minimum quantity prescribed by the Program, but the total quantity of the year is still satisfactory under the Program, tax incentives for the last 06 months are still considered and overpaid tax on auto components used for manufacture or assembly of automobiles in the period will be settled if the requirements specified in clauses 2, 3, 6, 7, and 8 of this Article are met.

b) A 12-month consideration period is from January 01 to June 30 to December 31 every year.

5. The output of manufactured and assembled automobiles of the Program

a) Gasoline and diesel automobiles.

Unit: Vehicle

Vehicle heading 2022 - 2027

6-month consideration period 12-month consideration period

January 1 – June 30 July 1 – December 31 January 1 – December 31

I. Passenger automobiles with a seating capacity of up to 9 seats and cylinder capacity of up to 2,500cc

1. General minimum output 115001150023000

2. Specific minimum output of 01 vehicle model 4500 4500 9000

II. Trucks with the GVWR not exceeding 5 metric tons

1. General minimum output 3500 3500 7000

2. Specific minimum output of 01 vehicle model or total specific minimum output of 02 vehicle models 2000 2000 4000

3. Specific minimum output of 01 vehicle model meeting EURO 5 1000 1000 2000

III. Trucks with the GVWR exceeding 5 metric tons

1. General minimum output 2500 2500 5000

2. Specific minimum output of 01 vehicle model or total specific minimum output of 02 vehicle models 1000 1000 2000

3. Specific minimum output of 01 vehicle model meeting EURO 5 500 500 1000

IV. Minibus

1. General minimum output 330 330 660

2. Minimum general production of 01 vehicle model 165 165 330

V. Bus

1. General minimum output 445 445 890

2. Specific minimum output of 01 vehicle model or total specific minimum output of 02 vehicle models 250 250 500

During the consideration period, if automobiles manufactured or assembled by the enterprise satisfy both Level 4 (according to point c.1, clause 3, Article 8 of this Decree) and Level 5 emission standards, the output of both vehicle models may be used.

As for the consideration period in 2023, enterprises participating in the Program may use the total number of automobiles manufactured and assembled from January 1, 2023 to the effective date of this Decree for consideration of incentives if they meet the requirements of the Program specified in the Government's Decree No. 57/2020/ND-CP , Decree No. 101/2021/ND-CP , and Decree No. 101/2021/ND-CP , the requirement pertaining to minimum degree of completeness of auto components is not applicable.

b) Electric automobiles; battery-powered automobiles; hybrid automobiles; fully biofuel automobiles; natural gas automobiles.

Unit: Vehicle

Vehicle heading 2022 - 2027

6-month consideration period 12-month consideration period

January 1 – June 30 July 1 – December 31 January 1 – December 31

Minimum output of each vehicle heading: passenger automobiles with a seating capacity of up to 9 seats; trucks, minibuses, buses

6. Applications and procedures for registration for the Program

a) An application shall comprise:

a.1) A registration form for the Program using the Form No. 05 specified in Appendix II issued herewith: 1 original;

a.2) The certificate of eligibility for manufacture and assembly of automobiles: 1 certified true copy.

b) Procedures for participation: An enterprise shall submit its application at the customs authority premises where its head office or factory is located to participate in the Program, in person, or via electronic data system, or by post, after this Decree is signed or any time within the Program’s period. The enterprise may participate in the Program from the date on which the registration form is submitted onwards.

7. Customs declaration

The customs declarant enters "A43 - Import of goods eligible for the Program" at “Type/Activity code” for imported auto components with HS codes that belong to the heading No. 98.49 for manufacturing and assembly of vehicles of the heading registered for registration for the Program; enters "#&7a" at "Enterprise’s internal control number".

8. 8. Application and procedures for applying the preferential duty rate of 0% to automobiles of the heading No. 98.49

a) An application shall comprise:

a.1) An application form for applying the preferential duty rate of 0% to automobiles of the heading No. 98.49, using the Form No. 06a specified in Appendix II issued herewith: 1 original;

a.2) Report on use of imported auto components used for manufacturing and assembly of automobiles released from the factory within the consideration period, using the Form No. 06 specified in Appendix II issued herewith: 1 original;

a.3) Statement of declarations and paid import duties, using the Form No. 07 specified in Appendix II issued herewith: 1 original;

a.4) Accounting documents proving the quantity of imported auto components already used for manufacturing and assembly of automobiles in the vehicle headings within the consideration period: 1 photocopy;

a.5) Certificate of ex-factory quality inspection, using the Form issued by the Vietnam Register: a copy with the enterprise's seal affixed thereon (the number of copies corresponding to the quantity of automobiles manufactured and assembled within the consideration period);

a.6) Certificate of technical safety and environment protection of manufactured and assembled automobiles: certified true copy, or copy and the original thereof for verification (the number of copies corresponding to the number of types of manufactured and assembled automobiles);

a.7) Design explanation and technical drawings of automobiles with the “tested” mark of the Vietnam Register: certified true copy, or copy and the original thereof for verification (number of copies corresponding to the types of manufactured and assembled automobiles).

b) Procedures for applying duty rates to automobiles of the heading No. 98.49:

b.1) The enterprise shall send the required documents specified at point a of this clause to the customs authority that is authorized to receive applications for registration for the Program within 60 days after June 30 or December 31. In case of submitting the application after 60 days, the customs authority receives and verifies submitted documents, and imposes any administrative fine as prescribed by the Government.

In case the enterprise has the consideration period which is less than 06 months, the enterprise shall submit the required documents specified at point a of this clause at the same time as submission of application for the duty rate of 0% of the next consideration period.

b.2) The customs authority shall, based on the enterprise's application, check whether the enterprise is eligible for the Program and its conformance to requirements for eligibility for the Program specified in clause 2 and 3 of this Article. To be specific:

The output of automobiles shall be determined on the basis of certificates of ex-factory quality inspection issued within the consideration period.

Vehicle models registered for registration for the Program shall follow the certificate of technical safety and environment protection for manufactured or assembled automobiles issued by the Vietnam Register.

The quantity of imported auto components (excluding those used but damaged or defective) must match the quantity of actually manufactured and assembled automobiles with certificates of ex-factory quality inspection within the consideration period and the report on use of auto components eligible for preferential import duty, statement of customs declarations and paid import duties according to each customs declaration of imports.

b.3) The customs authority shall, based on the verification results of the enterprise's application, comply with the following regulations:

If the application is not sufficient, the customs authority requests the enterprise to submit additional documents. In case there is any doubt about the accuracy of the application, the customs authority shall conduct inspections at its office or the taxpayer’s premises in accordance with Law on Tax Administration.

If the enterprise meets all of the eligibility requirements for the Program and the enterprise's paid duties on imported auto components is more than duties payable at the duty rate applied to the heading No.98.49, the customs authority shall issue its decision to refund and make a refund order for the overpaid duty to the enterprise in accordance with the Law on Tax Administration and other guidance documents thereof. On the basis of the customs authority’s order of the state budget revenue refund, the State Treasury shall refund the overpaid import duty to the enterprise. Such refund shall be funded by the central-government state budget revenues from import and export duties.

If the enterprise fails to meet all of the eligibility requirements for the Program, duty refund shall not be made and the customs authority must send its written reply to the enterprise.

Article 9. Preferential import duty rates applied to raw or input materials, supplies and components used for manufacturing, processing (assembling) supporting industrial products prioritized for development of the automobile manufacturing and assembly industry to December 31, 2027 (hereinafter referred to as Tax Incentive Program for Automobile Supporting Industry)

1. The Program prescribes that the preferential import duty rate of 0% will be levied on input or raw materials, supplies and components that have not yet been domestically made to manufacture, process (assemble) supporting products given priority for development of the automobile manufacturing and assembly industry (hereinafter referred to as automobile supporting products) to December 31, 2027 as follows:

a) At the time of registration of their declaration forms, customs declarants shall declare and calculate duties levied on imported raw materials, supplies and components at normal import duty rates or at preferential import duty rates or at special preferential import duty rates in accordance with the provisions while the 0% duty rate has not yet applied.

b) Application of the preferential import duty rate of 0% to raw materials, supplies and accessories as prescribed in the Program for the automobile supporting industry shall comply with Clause 2, 3, 4, 5, 6, 7 and 8 of this Article.".

2. Regulated entities

a) Enterprises manufacturing and processing (assembling) auto components and accessories.

b) Automobile manufacturing and assembling enterprises employing themselves to manufacture and process (assemble) auto components and accessories.

3. Eligibility requirements

a) Enterprises manufacturing and processing (assembling) auto components and accessories must meet the following requirements:

a.1) They have an agreement on purchase and sale of automobile supporting products concluded with automobile manufacturing and assembling enterprises holding certificates of eligibility for automobile manufacture and assembly issued by the Ministry of Industry and Trade;

a.2) Their investment certificates or investment registration certificates or enterprise registration certificates or business registration certificates clearly state their project's objectives or business lines, including the manufacturing of components and accessories of automobiles and other motorized vehicles.

a.3) They hold the ownership of or have the right to use manufacturing and processing (assembling) facilities, machinery and equipment at manufacturing and processing (assembling) facilities within the territory of Vietnam.

b) Automobile manufacturing and assembling enterprises employing themselves to manufacture and process (assemble) auto components and accessories must hold certificates of eligibility for automobile manufacture and assembly issued by the Ministry of Industry and Trade.

c) Imported raw or input materials, supplies and components must meet the following requirements:

c.1) Imported raw or input materials, supplies and components (including raw or input materials, supplies and components imported from the effective date of this Decree which are still in stock to be carried forward from the previous periods of application of preferential duty rates for manufacture or processing (assembling) of automobile supporting products in the following periods of application of preferential duty rates; excluding raw or input materials, supplies and components which are put to use, but damaged or defective) are used for the manufacture and processing (assembly) of automobile supporting products named in the List of supporting industrial products given priority for development for the automobile manufacturing and assembly industry specified in Section IV of the Appendix issued with the Government’s Decree No. 111/2015/ND-CP and its amendments (if any). In case a product is merely assembled with simple details, such as screws, bolts, nuts, rivets, and does not undergo any finished product manufacturing or processing stage, it shall not be eligible for the Tax Incentive Program for Automobile Supporting Industry.

c.2) Raw or input materials, supplies, and components not yet manufactured domestically shall directly imported or directly imported or imported in entrust or under authorization by enterprises specified in clause 2 of this Article. Raw or input materials, supplies, and components not yet manufactured domestically shall be determined on the basis of the Ministry of Planning and Investment's list of raw or input materials, supplies and semi-finished products that may be domestically manufactured.

If any enterprise specified in clause 2 of this Article meets regulations laid down in point a, b and c of this clause and clauses 4, 5, 6, 7 and 8 of this Article, the preferential import duty rate of 0% shall apply to raw or input materials, supplies and components imported for manufacturing, processing (assembling) automobile supporting products within the consideration period.

4. Consideration period

The maximum consideration period shall be 06 months from January 1 to June 30, or from July 1 to December 31 each year.

5. Applications and procedures for registration for the Tax Incentive Program for Automobile Supporting Industry

a) An application for registration for the Tax Incentive Program for Automobile Supporting Industry shall comprise:

a.1) A registration form for the Tax Incentive Program for Automobile Supporting Industry using the Form No. 08 specified in Appendix II issued herewith: 1 original;

a.2) Investment certificate or investment registration certificate or enterprise registration certificate or business registration certificate (applicable to the cases specified at point a of clause 2 of this Article): 1 certified true copy;

a.3) Notification of manufacturing and processing (assembling) facilities; machinery and equipment installed at manufacturing and processing (assembling) facilities, using the Form No. 09 specified in Appendix II issued herewith (applicable to the cases specified at point a of clause 2 of this Article), sent to the customs authority: 1 original. Land use right certificates issued by competent regulatory agencies to the enterprise or those issued by competent authorities to landowners, land, premises or workshop lease or borrowing agreements if the enterprise leases or borrows them to build its facilities: 1 certified true copy;

a.4) Certificate of eligibility for automobile manufacturing and assembly issued by the Ministry of Industry and Trade (applicable to the cases specified at point b of clause 2 of this Article): 1 certified true copy.

b) Procedures for registration for the Tax Incentive Program for Automobile Supporting Industry

An enterprise shall submit an application for registration for the Tax Incentive Program for Automobile Supporting Industry directly or via the electronic data system of the customs authority or by post to the customs authority at the place where such enterprise is headquartered, or its automobile manufacturing, processing (assembly) facilities are located to register its participation right after the effective date of this Decree or any time of the year. The participation in the Tax Incentive Program for Automobile Supporting Industry shall start from the submission date of the registration form.

6. Customs declaration

At the time of registration of the customs declaration, the customs declarant enters "A43 - Import of goods eligible for the tax incentive program" at “Type/Activity code”; enters "#&7b" at "Enterprise’s internal control number"; enters “HS code” according to the List of Vietnam’s Imports and Exports with respect to raw or input materials, supplies and components or accessories qualified for the Tax Incentive Program for Automobile Supporting Industry.

7. Inspection of automobile manufacturing and processing (assembling) facilities of enterprises participating in the Tax Incentive Program for Automobile Supporting Industry

After receipt of the enterprise's application, the customs authority shall conduct the inspection of the manufacturing and processing (assembling) facilities of such enterprise; conduct the inspection of machinery and equipment at automobile manufacturing and processing (assembling) facilities as specified in the enterprise's notification sent to the customs authority. The customs authority shall issue a decision on the inspection of these facilities using the Form No. 09a specified in Appendix II issued herewith and send it via the electronic data system of the customs authority or by the registered mail or fax to the customs declarant within 03 working days from the signing date. The inspection shall commence 5 working days after the date of issuance of the inspection decision. The maximum duration of each inspection must be 5 working days. Inspection contents shall comprise:

a) Conduct the physical inspection of automobile manufacturing and processing facilities to verify information provided by the enterprise to the customs authority, investment certificate or investment registration certificate or enterprise registration certificate or business registration certificate, land use right certificates issued by competent regulatory agencies to the enterprise or those issued by competent authorities to landowners, land, premises or workshop lease or borrowing agreements if the enterprise leases or borrows them to build its facilities.

b) Conduct the physical inspection of machinery and equipment at the manufacturing or processing facility to check conformance to customs dossiers on imported goods, invoices, records, machinery and equipment lease and borrowing agreements (in case of lease and borrowing of machinery and equipment); conduct the inspection of the manufacturing and assembling processes, scale, manpower condition, machinery and equipment condition to determine whether the enterprise's manufacturing capacity is conformable to products registered for the Tax Incentive Program for Automobile Supporting Industry.

After completion of the physical inspection, the customs authority must make a report on results of the physical inspection of the automobile manufacturing and assembling facility, using the Form No. 09b of the Appendix II issued herewith.

Within 05 working days from the date on which the inspection report is signed, the customs authority shall send a notification to the inspected enterprise of whether or not it meets requirements on manufacturing and processing (assembling) facility and machinery or equipment specified at point a.3, clause 3 of this Article, using the Form No. 09c specified in Appendix II issued herewith.

During the period of participation in the Tax Incentive Program for Automobile Supporting Industry, if the enterprise has any change in its address of manufacturing and processing facility, its ownership of or right to use machinery and equipment at the manufacturing and processing (assembling) facility, the enterprise must send a notification of such change to its supervisory customs authority within 5 working days after the change-making date. After receiving the enterprise's notification or when detecting any suspicious sign that the enterprise changes information about its manufacturing and processing facility, machinery and equipment without prior notice to the supervisory customs authority, or according to risk management principles, the customs authority shall conduct the inspection of the manufacturing and processing (assembling) facility, or the inspection of machinery and equipment installed at the manufacturing and processing (assembling) facility.

8. Application and procedures for applying the preferential duty rate of 0%

a) An application shall comprise:

a) With regard to enterprises manufacturing and processing (assembling) auto components and accessories:

An application form for applying the preferential duty rate of 0% under the Tax Incentive Program for Automobile Supporting Industry, using the Form No. 10a specified in Appendix II issued herewith: 1 original;

Investment certificate or investment registration certificate or enterprise registration certificate or business registration certificate (except when the enterprise already submits the registration form for the Tax Incentive Program for Automobile Supporting Industry): 1 certified true copy;

Agreement on purchase and sale of automobile supporting products with the automobile manufacturing and assembling enterprise holding the certificate of eligibility for automobile manufacturing and assembly issued by the Ministry of Industry and Trade: 1 original;

Processes for manufacturing and processing (assembly) of automobile supporting products (enclosing interpretation or explanatory notes): 1 original;

Statement of customs declarations and paid import duties on raw or input materials, supplies, and components used for manufacturing, processing (assembling) of automobile supporting products registered for the Tax Incentive Program for Automobile Supporting Industry, using the Form No. 10 specified in Appendix II issued herewith: 1 original;

Report on use of raw or input materials, supplies, and components used for manufacturing, processing (assembling) of automobile supporting products registered for the Tax Incentive Program for Automobile Supporting Industry, using the Form No. 11 specified in Appendix II issued herewith: 1 original;

Statement of value-added invoices corresponding to the quantity of automobile supporting products already sold under the concluded purchase and sale agreement, using the Form No. 12 specified in Appendix II issued herewith: 1 original;

Accounting documents proving the quantity of imported raw or input materials, supplies, and components already used for manufacturing and processing (assembling) of automobile supporting products: 1 photocopy;

a.2) With regard to automobile manufacturing or processing (assembling) enterprises employing themselves to manufacture and process (assemble) auto components and accessories

An application form for applying the preferential duty rate of 0% under the Tax Incentive Program for Automobile Supporting Industry, using the Form No. 10a specified in Appendix II issued herewith: 1 original;

Processes for manufacturing and processing (assembly) of automobile supporting products (enclosing interpretation or explanatory notes): 1 original;

Statement of customs declarations and paid import duties on raw or input materials, supplies, components used for manufacturing, processing (assembling) of automobile supporting products, using the Form No. 10 specified in Appendix II issued herewith: 1 original;

Report on use of raw or input materials, supplies, components used for manufacturing, processing (assembling) of automobile supporting products, using the Form No. 11 specified in Appendix II issued herewith: 1 original

Statement of value-added invoices corresponding to the quantity of automobile supporting products already sold to the automobile manufacturing and assembling enterprise holding the certificate of eligibility for automobile manufacturing and assembling issued by the Ministry of Industry and Trade, using the Form No. 12 specified in Appendix II issued herewith: 1 original;

Report on use of automobile supporting products already manufactured or processed (assembled), using the Form No. 13 specified in Appendix II issued herewith: 1 original;

Certificate of eligibility for automobile manufacturing and assembly issued by the Ministry of Industry and Trade (except for case where the submitted application for registration for the Tax Incentive Program comprises the certificate): 1 certified true copy;

Accounting documents proving the quantity of imported raw or input materials, supplies, and components already used for manufacturing and processing (assembling) of automobile supporting products: 1 photocopy;

b) Procedures for applying the preferential duty rate of 0%:

b.1) The enterprise shall send the required documents specified at point a of this clause to the customs authority that is authorized to receive applications for registration for the Tax Incentive Program for Automobile Supporting Industry within 60 days after June 30 or December 31 every year. In case of submitting the application after 60 days, the customs authority receives and verifies submitted documents, and imposes any administrative fine as prescribed by the Government.

b.2) The customs authority shall, based on the enterprise's application and the inspection results of its manufacturing and processing (assembling) facility, machinery and equipment, check whether the enterprise is eligible for the Program and its conformance to requirements for eligibility for the Tax Incentive Program for Automobile Supporting Industry specified in clause 2 and 3 of this Article. To be specific:

If the application is not sufficient, the customs authority requests the enterprise to submit additional documents. In case there is any doubt about the accuracy of the application, the customs authority shall conduct inspections at its office or the taxpayer’s premises in accordance with Law on Tax Administration.

If the enterprise meets all of the eligibility requirements for the Tax Incentive Program for Automobile Supporting Industry, the customs authority shall issue its decision to refund and make a refund order for the overpaid duty to the enterprise in accordance with the Law on Tax Administration and other guidance documents thereof. On the basis of the customs authority’s order of the state budget revenue refund, the State Treasury shall refund the overpaid import duty to the enterprise. Such refund shall be funded by the central-government state budget revenues from import and export duties.

If the enterprise fails to meet all of the eligibility requirements for the Program, duty refund shall not be made and the customs authority must send its written reply to the enterprise.

Article 10. Tariff Nomenclature and out-of-quota import duty rates imposed on goods subject to tariff-rate quotas

1. The Nomenclature of goods subject to tariff-rate quotas includes certain goods of heading specified in Appendix IV issued herewith and goods subject to tariff-rate quotas specified in international treaties to which the Socialist Republic of Vietnam is a signatory (international treaties).

2. Annual import tariff-rate quotas on the commodities shall comply with regulations issued by the Ministry of Industry and Trade.

3. In-quota tariff rates on imports are specified as follows:

If the quantity of imports conforms to the annual import tariff-rate quotas prescribed by the Ministry of Industry and Trade, the preferential import duty rates prescribed in Section I, Appendix II issued herewith or special preferential import duty rates prescribed in the schedules of special preferential import tariffs (if such imports are eligible for special preferential import duty rates) issued with the Government’s Decrees on schedules of special preferential import tariffs for implementation of international treaties) shall apply.

If the Government’s Decrees on schedules of special preferential import tariffs for implementation of international treaties prescribe requirements for application of in-quota special preferential import duty rates, the requirements shall prevail.

4. Out-of-quota tariff rates on imports are specified as follows:

a) Imports prescribed in clause 1 of this Article whose quantity exceeds the annual import quotas prescribed by the Ministry of Industry and Trade will be subject to out-of-quota tariff rates prescribed in Appendix IV issued herewith.

b) If international treaties to which the Socialist Republic of Vietnam is a signatory contain import quotas and/or out-of-quota tariff rates imposed on imports prescribed in clause 1 of this Article, the Government’s Decrees on schedules of special preferential import tariffs for implementation of these international treaties will apply. If the out-of-quota tariff rates prescribed in international treaties are greater than those prescribed in Appendix IV issued herewith, the out-of-quota tariff rates specified in Appendix IV issued herewith will be imposed.

Article 11. Responsibilities for implementation

1. The Ministry of Finance shall conduct the inspection, supervision, price consultation and trade fraud combat according to regulations on goods taxed at high import duty rates and goods with considerable risk on customs valuation.

2. 2. The Ministry of Planning and Investment shall issue the list of domestically manufactured goods; review and update the list to ensure it remains relevant to practical conditions.

3. The Ministry of Industry and Trade shall:

a) issue certificates of eligibility for automobile manufacture and assembly in accordance with the Government's regulations on eligibility requirements for manufacturing, assembly, import of automobiles and provision of automobile warranty and maintenance services in accordance with law;

b) Promulgate regulations to internalize the provisions on tariff-rate quotas specified in the international treaties to which the Socialist Republic of Vietnam is a signatory.

4. Competent regulatory agencies shall issue investment certificates, investment registration certificates or decisions on investment guidelines, enterprise registration certificates and business registration certificates to enterprises in accordance with law.

5. Ministries and central authorities shall, based on their functions and tasks, conduct the audit and control operations to ensure due implementation of policies and anti-fraud practices.

6. Ministers, Directors of ministerial agencies, Directors of Governmental agencies, heads of related agencies, Presidents of People’s Committees of provinces and municipalities, and relevant organizations and individuals shall implement this Decree.

Article 12. Entry in force

1. This Decree comes into force from July 15, 2023.

2. This Decree replaces the following Government’s Decrees: Decree No. 122/2016/ND-CP dated September 1, 2016, Decree No. 125/2017/ND-CP dated November 16, 2017, Decree No. 57/2020/ND-CP dated May 25, 2020, Decree No. 101/2021/ND-CP dated November 15, 2021, Decree No. 51/2022/ND-CP dated August 8, 2022.

3. From October 1, 2022 to the effective date of this Decree, the requirement pertaining to the minimum degree of completeness of auto components under point b, clause 3.1, Article 7a specified in clause 3 Article 2 and point b.5, clause 3, Section II, Chapter 98 of Decree No. 57/2020/ND-CP shall not apply.

In case an enterprise has participated in the Tax Incentive Program but has not yet been refunded the import duty paid from October 1, 2022 to the effective date of this Decree, it will receive a refund of duties on imported auto components if the requirements specified in the Tax Incentive Program are met and the requirement pertaining to the minimum degree of completeness of auto components will not apply.

In case an enterprise that import CKD and IKD kits of auto components for manufacturing and assembly, even if it is an authorized importer, entrusted importer under an entrustment contract, or an importer under a purchase and sale agreement concluded with an auto manufacturing and assembly enterprise, from October 1, 2022 to the effective date of this Decree, selects to impose duties on each auto component or accessory or under the heading No. 98.21, it must meet the requirements laid down in Decree No. 57/2020/ND-CP and the requirement pertaining to the minimum degree of completeness of auto components will not apply.

4. Preferential import duty rates specified in Article 8 of this Decree shall apply to imported auto components of heading No. 98.49 until December 31, 2027. Enterprises that have registered for the Tax Incentive Program before the effective date of this Decree must re-register with customs authorities as prescribed in this Decree.

If, after registration for the Tax Incentive Program, enterprises add or change their registered vehicle headings, vehicle models, or the quantity of vehicle models, they must re-register with customs authorities.

5. Preferential import duty rates prescribed in Article 9 of this Decree shall apply to raw or input materials, supplies and components for the manufacturing, processing (assembly) of supporting industry products prioritized for development for the automobile manufacturing and assembly industry until December 31, 2024. Enterprises that have registered for the Tax Incentive Program for Automobile Supporting Industry specified before the effective date of this Decree must re-register for the Tax Incentive Program for Automobile Supporting Industry and enjoy incentives under this Decree./.

CERTIFIED BY PP. MINISTER DEPUTY MINISTER Cao Tuan Anh