The Government of Vietnam has just issued Decree No. 81/2024/ND-CP. Attached to this Decree is Vietnam’s Special Preferential Import Tariff, implementing the ASEAN and Korea Trade Agreement (AKFTA) in the period of 2023 – 2027. This tariff is effective from July 4, 2024.
The new AKFTA tariff stipulates a 0% tariff rate applicable to many types of goods such as: live animals; meat and edible offal.
Meanwhile, the tax rate of 5% applies to certain types of mineral fertilizers or chemical fertilizers, containing phosphate (phosphate fertilizers), cosmetics or preparations for makeup, and skin care products (except pharmaceuticals), including sunscreen or sunscreen preparations; Preparations for nails or pedicure.
In addition, Decree 81/2024/ND-CP also supplements the “List of goods subject to special preferential tax rates outside Vietnam’s quota, implementing the AKFTA agreement for the period of 2023 – 2027“. Accordingly, goods exceeding Vietnam’s tariff quota will also be subject to special preferential tax rates if they are on this list. In case goods exceed the tariff quota but do not fall into this list , the tax rate in Decree No. 26/2023/ND-CP shall be applied.
(Imports subject to tariff quotas include items of heading 04.07, 17.01, 24.01, 25.01. The list of goods and tariff quotas will be updated annually in accordance with the Government’s regulations)
For goods within the tariff quota, the tax rate is applied based on the “Special preferential import tariff for the implementation of the AKFTA Agreement for the period of 2023 – 2027” mentioned above.
Enterprises that have paid import tax higher than the preferential tax rate in this Decree No. 81/2024/ND-CP will be refunded. This applies to import declarations registered from November 28, 2023 to before July 4, 2024.
Source: Decree No. 81/2024/ND-CP