Decree 101/2021/ND-CP, supplement items subject to the preferential import tax rate of 0% and adjustment of import, export tax rates for some items

Some of the main contents of Decree 101 are summarized below:

Adding 02 items subject to the preferential import tax rate of 0%, including:

• Oily fruits and seeds for planting have Item code 9805.00.00 in the List of commodity groups from 98.01 to 98.48 and commodity groups 98.50, 98.51, 98.52 at Point 1, Clause II, Section II, Appendix II of Decree 57/2020. The corresponding item codes in Section I Appendix II (Decree 101) are 1207.30.00, 1207.4.90, 1207.50.00, 1207.60.00, 1207.70.00, 1207.91.00, 1207.99.40, 1207.99.50, 1207.99.90.
• Engine ECU, used for motor vehicles with Item code 9849.46.00 in the List of commodity group 98.49 at Point 2, Clause II, Section II, Appendix II of Decree 57/2020. The corresponding item code in Section I Appendix II (Decree 101) is 8537.10.99.

Simultaneously, adjust the export tax rates and preferential import tax rates for some groups of goods specified in Clause 1, Article 2 of Decree 57/2020:

Details of the new tax rate schedule are specified at:

• Appendix I - Export Tariff according to the List of taxable goods;
• Appendix II - Preferential import tariffs according to the List of taxable goods.

Among the adjustments, one notable point is the downward adjustment made to import tax rates applied to the most favored nations for some groups of products such as steel, wheat, corn, etc., which were common input materials for many domestic manufacturing industries.

In addition, Decree 101 also amends and adjusts a number of contents of the tax incentive program for domestic automobile production and assembly specified in Decree 125/2017/ND-CP and Decree 57/2020/ND-CP. Decree 101 has adjusted a number of contents of the tax incentive program for automobile production and assembly, supplemented regulations on tax incentives consideration period (enterprise could selected the incentives period of 6 or 12 months), adjusted production conditions to participate in the Tax Incentive Program, and extended the implementation period of this Program to 31 December 2027 so the automobile manufacturing and assembling enterprises could actively develop the production and business plans of the following years.