Goods imported from Laos into Vietnam, except for imports on the list of goods specified in Appendix I, Appendix II, and Appendix III, are entitled to the special preferential import tax rate of 0%.

The Government has just issued Decree No. 90/2021/ND-CP on Vietnam's special preferential import tariffs to implement the Trade Agreement between the Government of the Socialist Republic of Vietnam Vietnam and the Government of the Laos People's Democratic Republic from October 4, 2020 to October 4, 2023.

Lao Bao international border gate on the Vietnam-Laos border

The list of goods originating from the Lao People's Democratic Republic under the Vietnam-Laos Trade Agreement issued together with this Decree includes:

Appendix I - List of goods entitled to 50% reduction of Vietnam's ATIGA tax rate under the Vietnam-Laos Trade Agreement.

Appendix II - List of goods not entitled to preferential tariffs under the Vietnam-Laos Trade Agreement.

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

Imported goods are subject to a special preferential import tax rate of 0%.

The Decree stipulates that imported goods originating from the Laos People's Democratic Republic, except for imported goods on the list of goods specified in Appendix I, II and III issued together with this Decree. In this case, the special preferential import tax rate of 0% is applied if the following conditions are met:

Imported from the Laos People's Democratic Republic into Vietnam; Meet the provisions of the current law on the Rules of Origin applicable to goods entitled to Vietnam-Laos preferential tariff and must have a Certificate of Origin form S (C/O form S) issued by competent authorities of the Laos People's Democratic Republic according to regulations.

Imported goods enjoy a 50% discount on special preferential import tax rates ATIGA

The Decree stipulates that goods imported from the Laos People's Democratic Republic on the list of goods specified in Appendix I issued with this Decree are entitled to a special preferential import tax rate equal to 50% of the ATIGA tax rate specified in the Special Preferential Import Tariff promulgated together with Decree No. 156/2017/ND-CP on the promulgation of Vietnam's Special Preferential Import Tariff for the implementation of the ASEAN Trade in Goods Agreement for the 2018-2022 period and amendments and supplements (if any) if the prescribed conditions are satisfied.

In case the ATIGA tax rate is higher than the preferential import tax rate specified in the Government's Decree No. 57/2020/ND-CP dated May 25, 2020, amending and supplementing a number of articles of Decree No. 122 /2016/ND-CP dated September 1, 2016 of the Government on Export Tariff, Preferential Import Tariff, List of goods and absolute tax rates, mixed tax, import tax outside tax quotas and Decree No. 125/2017/ND-CP dated November 16, 2017 amending and supplementing a number of articles of Decree No. 122/2016/ND-CP (MFN Tariff) and amendments and supplements additional tax (if any), a special preferential import tax rate equal to 50% of the tax rate specified in the MFN Tariff shall be applied.

The Decree clearly states that goods in Appendix II issued together with this Decree will not enjoy special preferential import tax rates under the Vietnam-Laos Trade Agreement when imported into Vietnam.