Vietnam - New Decree On Preferential Export Tariff Schedule And Preferential Import Tariff Schedule Under The Comprehensive And Progressive Agreement For Trans-Pacific Partnership In The 2019 – 2022 Period.

Legal News & Analysis - Asia Pacific - Vietnam - Regulatory & Compliance - Energy & Project Finance

2 August, 2019


On 26 June 2019, the Government issued Decree No. 57/2019/ND-CP on the preferential export tariff schedule and preferential import tariff schedule under the comprehensive and progressive agreement for trans-pacific partnership (CPTPP) in the 2019 – 2022 period (Decree 57), which took effect from its signing date.

Some of the key provisions contained in Decree 57 include:


(i) Providing applicable export and import tariff rates


  • Appendix I and II of Decree 57 provide the tariff rates, respectively for exports and imports, applicable to six countries which have already ratified the CPTPP, including Mexico, Japan, Singapore, New Zealand, Canada and Australia (CPTPP Member States) for the period from 2019 to 2022;

  • With respect to exports, the goods listed in the Appendix I of Decree 57 (Appendix I Goods) are still subject to export tariffs, while a tariff rate of 0% shall be applied to other goods;

  • In order for the Appendix I Goods to enjoy the preferential export tariff rates as provided in Appendix I when exported to any of the CPTPP Member States, the relevant exporter must prove that the goods were actually exported into CPTPP Member States. In particular, the exporter of Appendix I Goods shall, on the export date, declare the normal export tariff rates.


Then, in order to apply for preferential export tariff rates, within 1 year since the export date the exporter shall submit a full and valid application dossier, including transport documents and import customs declarations, showing that the destination of the goods was one of CPTPP Member States. After the assessment of such application dossier, provided that the application dossier is correct, the custom authority shall undertake a tariff refund procedure in accordance with the applicable legislation; and


With respect to imports, imported goods eligible for preferential import tariffs, must (a) be listed in Appendix II of the Decree 57; (b) be imported from any of the CPTPP Member States into Vietnam or from Vietnamese non-tariff zones to the domestic market; (c) transported into Vietnam from any of the CPTPP Member States or from Vietnamese non-tariff zones, provided that such goods still maintain their origin after the transit or transhipment; and (d) meet the provisions on origin of goods and have certificates of origin according to the forms prescribed under the CPTPP.


(ii)  Different levels of preferential tariffs applied for different CPTPP Member States


The tariff reductions shall be applied starting from 14 January 2019. Decree 57 provides for different levels of tariff reductions, which will be implemented progressively and will increase every year. In particular, a first level of tariff reductions shall apply to goods imported from and exported to Mexico. However, the goods imported from and exported to Japan, Singapore, New Zealand, Canada and Australia, and from Vietnamese non-tariff zones, already enjoy the second level of tariff rate reductions (which is more favourable than the first level). The subsequent levels of annual tariff rate reductions shall take effect on 1 January of each calendar year.


(iii)  Effects on exports and imports declared before 26 June 2019


In accordance with Article 6.2 of Decree 57, with respect to the export and import custom declarations registered from 14 January 2019 to 25 June 2019, if exported and imported goods are eligible for enjoying tariff preference according to Decree 57 but higher duty rates have been paid, the amount paid in excess shall be handled in accordance with the law on tariff administration. 



For further information, please contact:


Mark Fraser, CEO/ Managing Partner, Frasers Law Company