Question: What are preferential export tax rates and special preferential import tax rates stipulated in Decree 57 only apply to the exports and imports among Viet Nam and other CPTPP six member countries?
Answer: Preferential tax rates applied for the period of 2019-2020 are divided into four small periods including:
Stage I: From January 14, 2019 to December 31, 2019;
Stage II: From January 1, 2020 to December 31, 2020;
Stage III: From January 1, 2021 to December 31, 2021;
Stage IV: From January 1, 2022 to December 31, 2022.
Items are entitled to preferential import tax rate of 0% such as live animal groups including purebred horses, donkeys and mules (code 01.01) for breeding and other types; live cattle (code 01.02); live purebred sheep and goats for breeding and other types (code 01.04).
For used automobile items within the groups of 87.02, 87.03 and 87.04 imported in tariff quotas under the CPTPP, particularly preferential import duty is a mixed tax rate including the tax rate of 0% and the absolute tax rate specified in the List of Goods and Special Preferential Import Duties stipulated in the CPTPP at the time of registering customs declaration forms.
For used cars of these groups but imported beyond the tariff quota under the CPTPP, the import duties will be applied pursuant to Decree 125/2017/ND-CP dated November 16, 2017 by the Government amending and supplementing a number of articles of Decree No. 122/2016/ND-CP of September 1, 2016 by the Government on the Export Tariff, Preferential Import Tariff, List of Goods and absolute tax rates, mixed tax rates, non-quota import duties and amending and supplementing documents.
Decree 57 took effect from June 26, 2019
On December 30, 2018 the CPTPP entered into force among the first six countries to ratify the agreement – Canada, Australia, Japan, Mexico, New Zealand, and Singapore. On January 14, 2019, the CPTPP entered into force for Viet Nam./.