The Government has issued Decree No. 57/2020 / ND-CP amending Decree No. 122/2016 / ND-CP and Decree No. 125/2017 / ND-CP amending Decree No. 122/2016 / ND CP on Export Tariff, Preferential Import Tariff.
Accordingly, from July 10, 2020, the preferential import and export tariff will be applied according to the list of taxable items, the list of goods and absolute tax rate, mixed tax, and non-quota import tax. issued together with Decree 57/2020 / ND-CP .
Decree 57/2020 / ND-CP has added regulations on the application of 0% preferential import tax rate on raw materials, supplies and components which cannot be domestically produced for production or processing. (assembly) supporting products with priority development for the automobile manufacturing and assembling industry in the period of 2020 – 2024 (the program of preferential auto industrial tax incentives)
According to the provisions of the above Decree, enterprises that manufacture, process (assemble) auto components and parts, and enterprises that manufacture and assemble cars that manufacture and assemble components themselves. auto parts, if satisfying the following conditions: Investment Certificate or Investment Registration Certificate or Business Registration Certificate or Business Registration Certificate; The ownership or the right to use the manufacturing, processing (assembly) facility and the machinery and equipment at the manufacturing or processing facility; … as prescribed, will be subject to the import tax rate. 0% preferential import.
A period of tax incentives must not exceed 6 months, from January 1 to June 30, or from July 1 to December 31, every year. To enjoy the 0% tax incentives, enterprises must submit to the customs office where their head office is located or where the production, processing (assembly) facility is located. Automotive SI as prescribed right after the effective date of this Decree or at any time of the year.
In addition, this Decree has repealed the content of “Regulations on preferential import tax rates for a number of goods that comply with WTO commitments from January 1, 2019 on” in Decree 125/2017 / ND-CP and the Appendices issued together with Decree 125/2017 / ND-CP.
Decree 57/2020 / ND-CP takes effect from July 10, 2020, except for the provisions on preferential import tax rates for automobile components imported under the tax incentive program for production. car assembly in Clause 3, Article 2, applicable from January 1, 2020.