Vietnam-Cambodia special preferential import tariff for the period of 2023-2024
Inheriting the contents specified in Decree No. 83/2021/ND-CP dated September 13, 2021
31 July 2023
Draft Decree on Vietnam’s Special Preferential Import Tariff to implement the Vietnam-Cambodia Bilateral Trade Promotion Agreement 2023-2024.
On April 19, 2023, the Government issued Resolution No. 10/NQ-CP on signing an Agreement to promote bilateral trade between Vietnam and Cambodia from 2023 to 2024.
On June 2, 2023, the Ministry of Industry and Trade signed with Cambodia an Agreement to promote bilateral trade between the Government of the Socialist Republic of Vietnam and the Government of the Kingdom of Cambodia from 2023 to 2024. prescribed in Articles 12 and 14 of the Agreement, the Agreement shall take effect from June 2, 2023, and expire on December 31, 2024.
From 2021 to 2022, to fulfill Vietnam’s commitment to import tax in the Agreement, the Government has issued Decree No. 83/2021/ND-CP dated September 13, 2021, on the Import Tariff Vietnam’s special incentives to implement the Agreement to promote bilateral trade between the Government of the Socialist Republic of Vietnam and the Government of the Kingdom of Cambodia from 2021 to 2022. According to regulations, the Decree is valid until December 31, 2022.
To comply with Vietnam’s commitments in signed international treaties, Vietnam needs to issue a Decree stipulating Vietnam’s special preferential import tariff to implement the Agreement to promote bilateral trade between the two countries. Government of the Socialist Republic of Vietnam and Government of the Kingdom of Cambodia for the period of 2023-2024.
The draft Decree is built based on inheriting the contents specified in Decree No. 83/2021/ND-CP dated September 13, 2021, including regulations that are applied stably and without any problems. encountered during implementation in the past.
According to the draft, issued together with this Decree 01 Tariff and 02 corresponding lists in 03 appendices:
Appendix I stipulates the list of goods subject to Vietnam’s special preferential import tax rate of 0% for goods originating from the Kingdom of Cambodia corresponding to the items in Appendix I of this Agreement. Agreement between Vietnam and Cambodia (including unprocessed rice and tobacco products within the quotas specified in Articles 3 and 4 of the Agreement).
Appendix III, the list of pairs of border gates allowed to clear goods enjoying special incentives: this provision in the Decree is consistent with the provisions in Appendix III of the Agreement.
The tariff schedule for 29 items entitled to special preferential tax rates in this Decree is narrowed down to 02 product lines compared to 31 items in Decree 83/2021/ND-CP dated September 13, 2021 (including 02 items as follows: other flavored crunchy foods with HS code 1905.90.80 and Other with HS code of 1905.90.90 out of the Preferential Tariff for Cambodia import tax rates under the Agreement for the period 2023 – 2024 due to the item tax rates. this has been 0% according to the ATIGA Agreement).
Regulations on the application of special preferential import tax rates to imported goods subject to the tariff-rate quota regime are provided in Appendix II issued together with the Decree, including rice and tobacco products. unprocessed leaves.
For rice products: In case of import within the quota specified in Appendix II, the tax rate of 0% shall be applied; In case of exceeding the quota, the special preferential import tax rate of the Free Trade Agreements of which Vietnam and Cambodia are members, or the import tax rate may be applied. incentives (MFN tax rate) according to the provisions of the Decree on the MFN Tariff and amendments and supplements (if any).
For tobacco products: In case of import within the quota specified in Appendix II, the tax rate of 0% shall be applied; in case the import exceeds the quota specified in Appendix II, but is still within the total quota according to the WTO, the preferential import tax rate shall be applied to this quantity; In case the import exceeds the quota specified in Appendix II and is outside the total quota according to the WTO, the import tax rate of out-of-quota shall be applied to unprocessed tobacco products, as prescribed in Decree on MFN Tariff and amendments and supplements (if any).
Rice products imported to Vietnam by Vietnamese enterprises, households, business households, and individuals, planted in Cambodia’s provinces adjacent to the Vietnamese border, are not included in the limited quantity. quota of rice products specified in Appendix II issued with this Decree.
Unprocessed rice and tobacco products originating from Cambodia and imported by Vietnamese enterprises to Vietnam for re-export to other markets shall comply with the mechanism of temporary import for re-export without counting the quantity. quotas of corresponding goods specified in Appendix II issued together with this Decree.
In the period 2010 – 2023, the trade relationship between Vietnam and Cambodia has a special mark. Vietnam is Cambodia’s largest trading partner. From 2022, Vietnam will become the largest trading partner in ASEAN and the third largest trading partner in the world of Cambodia, after China and the US. In the first five months of 2023, the total bilateral trade turnover between Cambodia and Vietnam reached more than $2.8 billion, an increase of nearly 3% over the same period in 2022, the Cambodian Ministry of Commerce said.
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