Decree 26/2023/ND-CP on new Schedule of Export and Import Tariffs

On May 31, 2023, the Government passed Decree 26/2023/ND-CP, an important document related to issues related to the Schedule of Export Tariffs, Schedule of Preferential Import Tariffs, Tariff Nomenclature, and fixed duties, mixed duties, out-of-quota import duties. The Decree is accompanied by 4 appendices: Appendix I – Schedule of Export Tariffs according to the List of taxable goods; Appendix II – Schedule of Preferential Import Tariffs according to the List of taxable goods; Appendix III – List of goods and absolute and mixed tax rates for used passenger cars with 15 seats or less and Appendix IV – List of goods and tax rates import tax out-of-quota import duties.

Full text of Decree 26/2023/ND-CP on new Schedule of Export and Import Tariffs

Basic information of Decree 26/2023/ND-CP

Symbol number: 26/2023/ND-CP

Date of issue: May 31, 2023

Effective date: July 15, 2023

Document type: Decree

Issuing agency: Government

Signed by: Le Minh Khai

New points of Decree 26/2023/ND-CP

New regulations on export tariffs according to the List of taxable goods

Accordingly, the export tax schedule applies according to the List of taxable goods, detailed and specified in Appendix I accompanying the Decree. This list includes commodity codes (product codes), product descriptions and export tax rates for each group of goods and items subject to export tax.

In case the exported goods are not listed in the Export Tariff, the customs declarant will have to declare the product code corresponding to the 08-digit product code of that good, according to the provisions of the Preferential Import Tariff. Information on export tax rates will be applied according to the corresponding product code in the Preferential Import Tariff Schedule, specified in Section I of Appendix II accompanying the Decree. In this case, there is no need to declare tax rates on the export goods declaration.

Exported goods belonging to the group with serial number (STT) 211 in the Export Tariff must simultaneously meet the following two conditions:

• Condition 1: Goods (including supplies, raw materials, and semi-finished products) do not belong to groups with STT from 01 to STT 210 in the Export Tariff Schedule. This is to clearly identify specific groups of goods that have export tax regulations for other goods.
• Condition 2: Goods are processed directly from raw materials such as natural resources and minerals, and the total value of natural resources and minerals plus energy costs accounts for 51% or more of the production cost. Determining the total value of natural resources and minerals plus energy costs accounting for 51% or more will be carried out in accordance with the provisions of Decree No. 100/2016/ND-CP dated July 1, 2016 of the Government. . This regulation regulates the calculation of resource value and energy costs to clearly determine the export tax rate applied to goods.

Note:

Exported goods falling under the exclusions prescribed in Clause 1, Article 1 of Decree No. 146/2017/ND-CP dated December 15, 2017, will not be in the group with STT 211 in the Export Tariff Schedule. issued together with this Decree 26/2023/ND-CP.

This regulation aims to identify specific cases of export tax exemption, helping to ensure the fairness and effectiveness of export tax regulations.

New regulations on preferential import tariffs according to the List of taxable goods

Decree 26 has important adjustments related to the application of Preferential Import Tariffs, effective from July 15, 2023. This preferential import tariff applies to 97 chapters in the List of Vietnam’s export and import goods, and includes:

Section I:

One of the important points in the Decree is to stipulate preferential import tax rates for 97 chapters according to the List of Vietnam’s export and import goods. This catalog contains detailed information, including names of sections and chapters; and grouping annotation; The list of Import Tariffs includes product descriptions and product codes (08 digits) according to Vietnam’s List of Exported and Imported Goods. At the same time, the preferential import tax rates prescribed for each taxable item are also clearly announced.

Accordingly, customs declarants must declare product descriptions and codes according to the revised and supplemented List of goods. This helps ensure the application of correct, accurate, transparent and fair preferential import tax rates for each item that has been changed or added.

It can be said that Decree 26/2023/ND-CP is an important step in shaping and adjusting import tax policy, contributing to promoting Vietnam’s export and import of goods in the context of integration. The international economy is increasingly deepening. The announcement of preferential import tax rates for each specific chapter and product helps create favorable conditions for businesses in planning production and business and also helps ensure transparency and fairness. in the management and implementation of state tax policies.

Section II:

According to Decree 26/2023/ND-CP, recently announced, adjusting the list of goods and preferential import tax rates for a number of items in Chapter 98. Detailed content in the regulations includes information on annotation, classification, conditions, and procedures for applying preferential import tax rates based on the provisions of Chapter 98. Also provided are regulations on inspection reports and decisions. Accounting for the use of goods subject to preferential import tax rates specified in Chapter 98. The list of goods and preferential import tax rates are specified in Clause 3, Section II, Appendix II of the Decree. 26/2023/ND-CP and is expected to take effect in Section II, Appendix II.

This regulation also emphasizes the classification of goods and the application of preferential import tax rates for items under Chapter 98, including items such as separate sets of automobile components (CKD parts sets of car), asynchronous car parts set , and a chassis with an engine attached and a cockpit (chassis car, with a cockpit). This will comply with the specific provisions in Clause 1.1, Section II, Appendix II.

Other items are also offered and subject to preferential import tax rates in Chapter 98 if they meet the standards and specifications specified in Clause 1, Section II, Appendix II. Some items include alloy steel containing the elements Boron and/or Chromium and/or Titanium in group 98.11, dermal fillers, skin barrier support creams, scar-reducing gel in group 98.25, nylon curtain fabric 1680/D/2 and 1890 D/2 belonging to to to group 98.26, copper wire with a maximum cross-sectional dimension from 6 mm to not more than 8 mm belongs to group 98.30, polypropylene plastic granules in primary form belong to group 98.37, non-alloy steel Hot-rolled irregularly rolled bars and coils are in heading 98.39, set-top-boxes are in heading 98.46 and lattice-shaped boxes made from Nano-composite Polymeric Alloy material (Neoweb) are in heading 98.47.

The application of classification methods, conditions, and procedures for applying preferential import tax rates according to the provisions of Chapter 98, along with the inspection and settlement report of the use of goods to which tax rates are applied. Preferential import tax rates specified in Chapter 98 will be implemented according to the provisions of Clause 2, Section II, Appendix II.

The list of goods and preferential import tax rates specified in Chapter 98 contains the product code, description of goods, and corresponding product code of each item in Section I, Appendix II of the Preferential Import Tariff Schedule. incentives according to the List of taxable goods and preferential import tax rates specified in Chapter 98. Conditions for goods to be classified in Chapter 98 and apply special preferential import tax rates are also clearly stated in regulations. When carrying out customs procedures, the customs declarant needs to declare the column “Corresponding product code in Section I, Appendix II” for items in Chapter 98 and write it next to the product code of Chapter 98. This ensures accuracy. accuracy and transparency in customs processing, and at the same time help businesses get clear information to apply appropriate preferential import tax rates for their goods.

Import tax on used cars

The Decree stipulates that used passenger cars with 9 seats or less with a cylinder capacity not exceeding 1,000cc in product group 87.03 shall apply the absolute tax rate specified in Appendix III issued with the Decree. This.

Used passenger cars with 9 seats or less with a cylinder capacity of over 1,000cc in product group 87.03 and from 10 to 15 seats in product group 87.02 are subject to mixed tax rates specified in Appendix III. promulgated together with this Decree.

Used passenger cars with 16 seats or more belong to group 87.02 and used motor vehicles used to transport goods with a total design weight of not more than 5 tons belong to group 87.04. (except refrigerated cars, waste collection cars with waste compactors, tank cars, armored cars to transport valuable goods; tank-type cement cars, and mud cars with Liftable removable containers) apply a preferential import tax rate of 150%.

Other types of used cars in product groups 87.02, 87.03, and 87.04 are subject to a tax rate equal to 1.5 times the preferential import tax rate of used cars of the same type in the same category. same product group as specified in Section I, Appendix II issued with this Decree.

Preferential import tax rates for mechanical processing machinery products

Mechanical processing machinery products belonging to product groups from 84.54 to 84.63 are subject to preferential import tax rates as follows:

Mechanical processing machinery products that have not been produced domestically are eligible for a preferential import tax rate of 0%. Mechanical processing machines mentioned in this Clause are not on the List of domestically produced machinery and equipment prescribed by the Ministry of Planning and Investment.

Mechanical processing machinery items that do not fall into the cases mentioned in Clause 1 of this Article are subject to the preferential import tax rates of groups from 84.54 to 84.63 specified in Section I, Appendix II of the Preferential Import Tariff Schedule. according to the List of taxable goods issued together with this Decree.

If you need advice on import and export tax schedules, please contact Viet An Tax Agent for the best support.