VIETNAM’S SPECIAL PREFERENTIAL IMPORT TARIFF SCHEDULE FOR IMPLEMENTATION OF TRADE AGREEMENT BETWEEN THE GOVERNMENT OF THE SOCIALIST REPUBLIC OF VIETNAM AND THE GOVERNMENT OF LAO PEOPLE'S DEMOCRATIC REPUBLIC IN 2025 – 2030 PERIOD

This Decree deals with special preferential import tariff rates under the Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of Lao People's Democratic Republic (hereinafter referred to as “Vietnam-Laos Trade Agreement”) and conditions to be satisfied for claiming such tariff rates during the period from February 24, 2025 to February 24, 2030 inclusively.

1. Taxpayers as defined in the Law on Export and Import Duties.

2. Customs authorities and customs officials.

3. Organizations and individuals that have rights and obligations related to imports and exports.

The following are enclosed with this Decree:

1. Appendix I - List of goods eligible for 50% reduction in ATIGA tariff rates of Vietnam under the Vietnam - Laos Trade Agreement.

2. Appendix II - List of goods ineligible for preferential tariff rates under the Vietnam - Laos Trade Agreement.

3. Appendix III - List of goods eligible for annual tariff-rate quotas under the Vietnam - Laos Trade Agreement.

Imports originating from Laos, except for the imports included in the Lists of goods mentioned in Appendix I, Appendix II and Appendix III to this Decree, are eligible for a special preferential import tariff rate of 0% (zero percent) if they meet the conditions set out in Article 8 hereof.

Goods imported from Laos and included in the List of goods in Appendix I to this Decree are eligible for a special preferential import tariff rate which is 50% of the ATIGA tariff rate specified in the Special preferential import tariff schedule promulgated together with the Government’s Decree No. 126/2022/ND-CP dated December 30, 2022 introducing Vietnam’s special preferential tariff schedule for implementation of the ASEAN Trade in Goods Agreement (ATIGA) in the 2022 - 2027 period if they meet the conditions set out in Articles 7 and 8 hereof.

If the ATIGA tariff rates are higher than preferential import tariff rates under Government's preferential export tariff schedule, preferential import tariff schedule, and lists of commodities, specific, compound and out-of-quota import tariff rates in force at the time of importation and their amendments (if any) (hereinafter referred to as “MFN Tariff Schedule”), the special preferential import tariff rates applied shall equal 50% of the tariff rates specified in the MFN Tariff Schedule.

The goods included in Appendix II to this Decree shall, when imported to Vietnam, be ineligible for special preferential import tariff rates under the Vietnam - Laos Trade Agreement.

1. Regarding rice of heading 10.06 (03 commodity lines, 8-digit HS code in Appendix III to this Decree):

a) If the rice originating from Laos is imported to Vietnam within the quota prescribed in Appendix III to this Decree and meets the conditions set out in Article 8 hereof and regulations on tariff-rate quota-based import adopted by the Ministry of Industry and Trade, it shall be eligible for a special preferential import tariff rate of 0% (zero percent).

b) If the rice originating from Laos is imported to Vietnam in excess of the quota prescribed in Appendix III to this Decree and meets the conditions set out in Article 8 hereof, the tariff rate specified in Article 5 of this Decree shall apply to the excess quantity.

2. Regarding unmanufactured tobacco and tobacco refuse of heading 24.01 (13 commodity lines, 8-digit HS code in Appendix III to this Decree):

a) If the unmanufactured tobacco and tobacco refuse originating from Laos are included in the list of imports subject to tariff quota specified in Appendix III to this Decree, and, when imported to Vietnam, meet the conditions set out in Article 8 hereof and regulations on tariff-rate quota-based import adopted by the Ministry of Industry and Trade, they shall be eligible for a special preferential import tariff rate of 0% (zero percent).

b) If the unmanufactured tobacco and tobacco refuse originating from Laos are imported to Vietnam in excess of the quota specified in Appendix III to this Decree, they shall be ineligible for special preferential import tariff rates under the Vietnam - Laos Trade Agreement.

3. Regarding sugar and sugar-related products of heading 17.01 (5 commodity lines, 8-digit HS code in Appendix I to this Decree):

a) If sugar and sugar-related products originating from Laos are included in the List in Appendix I to this Decree, and, when imported to Vietnam, meet the conditions set out in Article 8 hereof and fall within the quota specified in regulations on tariff-rate quota-based import adopted by the Ministry of Industry and Trade, they shall be eligible for 50% reduction in ATIGA tariff rates.

b) If sugar and sugar-related products originating from Laos are included in the List in Appendix I to this Decree, and imported to Vietnam in excess of the quota specified in regulations on tariff-rate quota-based import adopted by the Ministry of Industry and Trade, they shall be ineligible for special preferential import tariff rates under the Vietnam - Laos Trade Agreement.

In order to claim special preferential import tariff rates under the Vietnam - Laos Trade Agreement, the imports specified in Articles 4, 5 and 7 of this Decree must fulfill the following conditions:

1. They are imported to Vietnam from Laos.

2. They meet the origin criteria (including provisions on direct consignment) and are supported by the Certificates of Origin (C/O) – Form S issued by competent authorities of Laos in accordance with Vietnam - Laos Trade Agreement.

1. This Decree comes into force from the date on which it is signed to February 24, 2030 inclusively.

2. With regard to goods imported to Vietnam from Laos and covered by import declarations registered within the period commencing from February 24, 2025 to before the effective date of this Decree, if these goods meet the conditions for grant of special preferential export tariff rates as prescribed herein, and import duties have been paid at the rates higher than the prescribed ones, overpaid amounts of import duties shall be considered and settled by customs authorities in accordance with regulations of the Law on Tax Administration.

3. This Decree nullifies the Government’s Decree No. 127/2022/ND-CP dated December 30, 2022 promulgating Vietnam’s special preferential import tariff schedule for implementation of the Trade Agreement between the Socialist Republic of Vietnam and the Government of Lao People's Democratic Republic for the period from December 30, 2022 to October 04, 2023.

Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of People’s Committees of provinces and central-affiliated cities, and relevant organizations and individuals are responsible for the implementation of this Decree./.