Officially Issuing the Schedule of Tariff Concessions for Import and Export to Implement CPTPP Agreement

On June 26^th, 2019, the Government issued Decree No. 57/2019/ND-CP on Preferential tariff for export, Special preferential tariff for import to implement CPTPP Agreement from 2019 to 2022. CPTPP has come into force as of January 14^th, 2019, however, the Decree 57 is the official legislation incorporating CPTPP’s commitment into national laws.

Tariff concessions applying to each country

In addition to 0% tax applied to many products as soon as effect of Decree 57, the remaining is eliminated as scheduled into 4 stages: from January 14^th, 2019 to end of 2019, 2020, 2021 and 2022 equivalent to each tariff concessions.

The first six countries which have approved CPTPP Agreement including Mexico, Japan, Singapore, New Zealand, Canada and Australia. Vietnam was the seventhly country completing ratification procedures to bring the Agreement into effect. Under the CPTPP Agreement, the first six countries ratifying the Agreement have the right to notify to the later ratifying countries about the schedule of tariff concessions. Based on such provision, Article 4 and 5 of Decree 97 stipulates the reduction of import and export tax levels for each group of countries including: the group of five countries of Japan, Singapore, New Zealand, Canada and Australia shall may be applied the second level of tax reduction from January 14^th, 2019 due to similar application of such countries to Vietnam; and Mexico shall be applied the first level of tax reduction from January 14^th, 2019.

The conditions for applying preferential export tariff

Under the CPTPP Agreement, the Schedule for preferential export tariff include 519 tax lines, tax of 0% shall be applied to the goods outside such Schedule exporting to territory of country members to which CPTPP Agreement has taken effect. The exporting companies shall meet the followings to enjoy the preference:

-Goods shall be exported to 6 countries to which CPTPP Agreement has taken effect (Mexico, Japan, Singapore, New Zealand, Canada and Australia).

-Having the instruments of transportation showing the destination in territory of country members to which CPTPP Agreement has taken effect

-Having importing declarations of the shipment at customs of the member countries to which the CPTPP Agreement has taken effect.

The conditions for applying special preferential import tariff

Imported goods subject to special preferential import tariff under the CPTPP Agreement shall meet the following conditions:

-Imported goods belong to Preferential import tariff or List of products and preferential import tax or List of products and special preferential import tax for used cars.

-Being imported from member countries to which the CPTPP Agreement has taken effect and Vietnamese non-tariff zones to domestic market.

-Being transported into Vietnam from member countries to which the CPTPP Agreement has taken effect (in case of transshipment and cargo in transit, other conditions).

-Meeting the provisions on origin of goods and having C/O according to form of CPTPP Agreement.

Vietnam currently is a member and negotiating many free trade agreements to promote exports. This action will make a strong progress in import and export activities in international arena.