On May 22nd 2012, the Ministry of Finance promulgated Circular No. 82/2012/TT-BTC guiding the special preferential import tax for imported goods originating from the Kingdom of Cambodia.
Circular stipulates that goods originating from Cambodia imported into Vietnam are subject to special preferential import tax rate 0%. They are some agricultural products; sugar canes (including white chocolate), not containing cocoa; mushrooms and truffles, processed or preserved other than by vinegar or acetic acid; jam, fruit jelly, jam from citrus fruit, flour and dough from fruit or nuts, obtained by cooking, whether or not containing added sugar or other sweeteners; fruit juices (including grapes) and vegetable juices, unfermented and not containing added alcohol, whether or not containing added sugar or sweeteners; unprocessed tobacco….
Conditions for goods applied with special preferential import tax rate 0%: imported goods must have Certificates of origin form S (C/ O form S) promulgated by the authorities of the Kingdom of Cambodia and must be customs cleared through the border gates indicated in the Agreement between the Government of Republic Socialist of Vietnam and the Royal Government of Cambodia.
In addition, the Circular also specifies rice and dried tobaco leaves applied with tariff-quota (special import tax rate 0%) from Cambodia must meet the conditions specified above and Article 2 of Circular No.05/2012/TT-BCT on 03/20/2012 of the Ministry of Industry and Commerce under the provisions of the import tariff quotas in 2012 and 2013 for imported goods originating from Cambodia.
If goods with imported quantity exceeds quotas, they are subject to import duty rates as follows:
- For all kinds of rice: tax rates are subject to special preferential import tarriff ATIGA or preferential import (MFN) or general import tax rates as regulated.
- For dry tobacco leaves:
+ In case imported dry tobacco leaves exceeds import quotas stipulated in the Circular but within the general quota and meet the conditions specified in the legal documents of Vietnam on tariff quotas, the over quantity shall be subject to preferential (MFN) tariff in the preferential import tax rates as regulated.
+ In case quantity of dried tobacco leaves exceeds imported quotas specified in this Circular and are over the general quota, it’s applied to import tax rate out of quota in accordance with Circular No.188/2009/TT-BTC dated 09/29/2009 by the Ministry of Finance, issuing the list of goods and import duty rates to apply tariff quotas and other related documents.
+ All kinds of rice and unprocessed dried tobacco leaves planted in Cambodia as invested by Vietnam imported into Vietnam will be subject to tax policy as regulated.
Unprocessed agricultural products (except for rice and dried tobacco leaves) supported by Vietnam to grow in Cambodia to get raw materials for production in Vietnam are controlled according to Circular No. 61/2006/TT-BTC dated June 29th2006 and Circular No /2011/T-BTC dated Feb 09th 2011 and its amendment and supplements of Circular No. 61/2006/TT-BTC. If these items meet conditions specified above, they will be subject to import tax rate 0% (zero percent).
All kinds of rice and dried tobacco leaves originating from Cambodia imported by Vietnam enterprises for re-export to other countries under regime of temporary import for re-export of the Government of Socialist Republic of Vietnam and other regional, international Agreements signed by two parties are not calculated in the quotas set out in Annex III. Besides, all kind of rice and dried tobacco leaves imported to produce, process for export are not calculated in the quotas specified in Appendix III issued with this Circular as well.
The Circular takes effect from February 17th 2012 to Dec.31st 2013. For customs declaration form dated from Feb 17th 2012 with items meeting enough requirements of applying special preferential tariff but they were paid with higher tax rate will be refunded as legally regulated.