Công văn 4470/TCHQ-TXNK

To: Customs Departments of provinces and cities

On June 26, 2019, the Government’s Decree No. 57/2019/ND-CP on promulgation of preferential export tariff schedule and special preferential import tariff schedule under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership in the 2019-2022 period (hereinafter referred to as “CPTPP Agreement”) comes into force. For the purposes of implementation of this Decree, the General Department of Vietnam Customs provides the following guidelines:

1. Guidelines on imports

- If goods imported from the United Mexican States meet all conditions for application of special preferential import duty rates under the CPTPP Agreement as prescribed in Clause 6 Article 5, the customs declarant shall specify the tariff code B20 on the declaration of imports.

- If goods imported from Australia, Canada, Japan, New Zealand, the Republic of Singapore or Vietnam (goods imported from non-tariff zones into domestic market) meet all conditions for application of special preferential import duty rates under the CPTPP Agreement as prescribed in Clause 6 Article 5, the customs declarant shall specify the tariff code B21 on the declaration of imports.

- With regard to goods of headings 04.07, 17.01, 24.01, 25.01 imported within tariff quotas:

+ Goods of headings 04.07, 17.01, 25.01 imported from the United Mexican States within the annual tariff quotas prescribed by the Ministry of Industry and Trade (TRQ1 symbol) and goods of heading 24.01 imported within tariff quotas under the CPTPP Agreement as prescribed by the Ministry of Industry and Trade (TRQ2 symbol), the tariff code B20 shall be declared and in-quota tariff rates specified in the Appendix II shall be applied according to Clause 4 Article 5 of this Decree.

+ Goods of headings 04.07, 17.01, 25.01 imported from Australia, Canada, Japan, New Zealand, the Republic of Singapore or Vietnam (goods imported from non-tariff zones into domestic market) within the annual tariff quotas prescribed by the Ministry of Industry and Trade (TRQ1 symbol) and goods of heading 24.01 imported within tariff quotas under the CPTPP Agreement as prescribed by the Ministry of Industry and Trade (TRQ2 symbol), the tariff code B21 shall be declared and in-quota tariff rates specified in the Appendix II shall be applied according to Clause 4 Article 5 of this Decree.

+ Goods of headings 04.07, 17.01, 24.01, 25.01 imported out of tariff quotas TRQ1 or TRQ2 as prescribed in the Decree No. 57/2019/ND-CP , import duty rates prescribed in Clause 7 Article 1 of the Decree No. 122/2016/ND-CP on export duty schedule">125/2017/ND-CP dated November 16, 2017 providing amendments to Article 8 of Decree No. 122/2016/ND-CP shall be applied.

- If used cars of headings 87.02, 87.03, 87.04 imported within the tariff quotas under the CPTPP Agreement from the United Mexican States, Australia, Canada, Japan, New Zealand or the Republic of Singapore meet all conditions for application of special preferential import duty rates under the CPTPP Agreement, the tariff code B22 shall be declared and the tariff rates specified in Clause 2 and Clause 3 Article 5 of Decree No. 57/2019/ND-CP shall be applied.

With regard to used cars imported out of tariff quotas prescribed in the Decree No. 57/2019/ND-CP , import duty rates prescribed in Clause 5 Article 1 of the Government’s Decree No. 122/2016/ND-CP on export duty schedule">125/2017/ND-CP dated November 16, 2017 shall be applied.

2. Guidelines on exports

With regard to goods exported from Vietnam to the United Mexican States, the Republic of Singapore, Australia, New Zealand, Canada or Japan, the customs declarant shall declare the tariff code B01 when carrying out customs procedures and MFN preferential tariff rates prescribed in Appendix I – The export tariff schedule enclosed with the Government’s Decree No. 122/2016/ND-CP on export duty schedule">125/2017/ND-CP dated November 16, 2017 shall be applied.

3. Guidelines on overpaid duties

- With regard to goods exported under customs declarations registered from January 14, 2019, within a year from the date on which the declaration is registered, if the declarant provides sufficient documents proving that the exports meet the conditions in Clause 4 article 4 of the Decree No. 57/2019/ND-CP and makes additional declaration for applying lower duty rates according to the special preferential export tariff schedule under CPTPP Agreement, the customs authority shall settle the overpaid duties according to Clause 5 Article 4 of Decree No. 57/2019/ND-CP and Clause 64, Clause 65 Article 1 of the Circular No. 39/2018/ND-CP dated April 20, 2018.

- With regard to goods imported under customs declarations registered in the period from January 14, 2019 to before the effective date of this Decree, meeting all conditions for application of special preferential import tariff rates under CPTPP Agreement and on which import duties have been paid at a higher rate, the customs declarant shall make additional declaration for applying special preferential import tariff rates under CPTPP Agreement and having overpaid duties settled according to Clause 2 Article 6 of Decree No. 57/2019/ND-CP and Clause 64, Clause 65 Article 1 of the Circular No. 39/2018/ND-CP dated April 20, 2018. The customs declarant shall submit a written request for refund of overpaid duties using the form No. 27/CVDNHNT/TXNK enclosed with the Circular No. 39/2018/ND-CP dated April 20, 2018 of the Ministry of Finance. Such written request must be accompanied by documents proving the origin of goods under CPTPP Agreement and those proving the imports are transported from United Mexican States, Australia, Canada, Japan, New Zealand or the Republic of Singapore to Vietnam as regulated in Clause 6 Article 5 of Decree No. 57/2019/ND-CP. In case goods are transited or transported through the territory of a third country other than the member states of CPTPP Agreement, the status quo of goods must be protected to meet origin requirements under CPTPP Agreement in Point c.2, Clause 6 Article 5 of Decree No. 57/2019/ND-CP and the declarant shall provide additional documents proving such transport as prescribed in Clause 3 Article 18 of the Circular No. 38/2018/TT-BTC dated April 20, 2018 of the Ministry of Finance prescribing origin of imports and exports.

Customs Departments of provinces and cities are requested to examine, determine and inspect documents, origin of goods under CPTPP Agreement, preferential export duty rates and special preferential import duty rates under CPTPP Agreement as regulated in Decree No. 57/2019/ND-CP and relevant guidelines, and settle overpaid duties as regulated.

4. Guidelines on assistance tasks:

Difficulties that arise during the implementation of the Government’s Decree No. 57/2019/ND-CP dated June 26, 2019 should be reported to the General Department of Vietnam Customs for guidance through the following contact points:

- Difficulties relating to customs procedures and origin of goods shall be reported to Mrs. Dang Thi Hai Binh, Deputy Head of Customs Supervision and Management Division 4, Customs Supervision and Management Department, Tel.: 0439440833, ext.: 8806, email: [email protected].

- Difficulties relating to application of special preferential duty rates under CPTPP Agreement shall be reported to Mr. Le Trung Son, Deputy Head of the Commodity Classification – Tariff Schedule Division, the Export and Import Duty Department , Tel.: 0439440833, ext.: 8564, email: [email protected].

- Difficulties relating to declaration of codes of goods under CPTPP Agreement on VNACCS/VCIS system shall be reported to Helpdesk of General Department of Vietnam Customs, Tel.: 19009299 (line 2), email: [email protected].vn.

Customs Departments of provinces and cities shall direct and instruct their affiliated Customs Sub-departments and enterprises to apply guidelines herein.