On 26th June 2019, the Government of Vietnam promulgated a Decree No. 57/2019/ND-CP (“Decree 57”) on new Tariff Preference on Export and Import for the period from 2019 to 2022, including requirements for application of tariff preference as well as tariff schedule.  The Decree 57 is to implement the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”) which took effect on 14th January 2019. 

Tariff preference for importers – “Origin” is the key 

Under the Decree 57, importers must meet the following requirements for the imported goods to enjoy the tariff preference under the CPTPP: 

  • be included in the preferential import tariff schedule; 
  • be imported into Vietnam from the CPTPP member countries, including Australia, Canada, Japan, Mexico, New Zealand and Singapore (“Member countries); 
  • be originated in a Member country; and 
  • the origins of goods transporteinto Vietnam will be unchanged even in case transported through the territories of any non-member countries. 

As for the requirement of “being originated in a member country”, a good is treated originating in a Member country if it is wholly obtained or produced in the territory of one or more of the Member countries. If a product produced in the territory of one or more of the member countries using non-originating materials (materials from non-Member countries such as China), the product must satisfy all applicable requirements of Annex 3-D of the CPTPP, including the requirement of a change in tariff classification (CC, CTH or CTSH), production process requirement, regional value content (RVC), and all other applicable requirement.  

The origins of goods imported to Vietnam will be unchanged if no transit through the territory of any non-member countries is made If such transit is made, the origins of goods will be unchanged if: 

  • they do not undergo any production and processing stages outside the territory of the member countries, except for: (imaterial handling, splitting of goods, warehousing, labelling or marking as required by Vietnam; or (ii) other necessary activities for good preserve of goods or for transport of goods to the territory of Vietnam; and 
  • they are under supervision by the customs authority in the territory of the country which is not a member of the CPTPP. 

The preferential import tariff schedule specified in Appendix II is enclosed with the Decree 57, including codes, descriptions, preferential import duty rates, goods subject to tariff-rate quotas on imports applied in different periods to the member countries. 

Opportunities for exporters from Vietnam 

Goods exported from Vietnam will be eligible for preferential tariff rates specified in the Decree 59 if: 

  • they are imported into the territories of the member countries; 
  • there are transport documents with the destination in the territories of the member countries; and 
  • there are import customs declarations proving that the goods exported from Vietnam are imported into the territories of the member countries. 

At the time of customs formalities, the customs declarants must make export declarations, application of import duty rates, tax calculation and tax payment Within 1 year from the date of registration of export declarations, the customs declarant shall submit all documents proving that the goods satisfy the regulations and make an additional declaration to enjoy the preferential export duty rate under the CPTPP.  After the expiration of the above-mentioned 1-year time limit, exported goods shall not be able to be granted with the preferential export duty rates under the CPTPP. 

The preferential tariff rates are not applicable to commodities that are not included in the preferential export tariff schedule.  The export duty rate of 0% applies to those goods. 

The preferential export tariff schedule specified in Appendix I is enclosed with the Decree 57, including codes, descriptions, preferential import duty rates, goods subject to tariff-rate quotas on imports applied in different periods to the member countries. 

Decree No. 57/2019/ND-CP took effect on June 26, 2019.


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