Auto enterprises to enjoy preferential import tariff policies

The Government has issued a decree amending and supplementing Decree No. 26/2023/ND-CP on the export and preferential import tariff schedules, as well as the lists of goods subject to absolute tax, mixed tax, and out-of-quota import duties.

The new decree, Decree No. 199/2025/ND-CP dated July 8, 2025 which took effect on July 8, 2025, revises the minimum production volume criteria for enterprises seeking to benefit from preferential import tariffs on automotive components under the preferential tariff programme.

This policy aims to support domestic vehicle manufacturers and assemblers, particularly those producing environmentally friendly models.

Specifically, the decree amends Clause 3, Article 8 of Decree 26/2023/ND-CP, clarifying that in cases where manufacturers and assemblers of petrol- or diesel-powered vehicles also produce electric vehicles, fuel cell vehicles, hybrids, vehicles powered entirely by biofuels, or those using natural gas, the output of these environmentally friendly vehicles may be included in both the total and model-specific production volume calculations.

This combined figure will be used to determine eligibility for preferential import tariffs for corresponding petrol and diesel vehicle categories.

Additionally, if a company holds over 35% of the charter capital in other automotive manufacturing or assembly firms that have been certified by the Ministry of Industry and Trade, the vehicle output of those affiliated companies may be consolidated.

The combined production volume will count toward meeting the minimum production threshold under the preferential tariff programme. The parent company is responsible for verifying the total eligible production and the ownership percentage during the relevant assessment period.

Customs authorities at the location where the enterprise registers under the Preferential Tariff Programme will process tax refunds in accordance with the number of vehicles manufactured and assembled during the eligibility period.

If the parent company or its affiliates make inaccurate declarations, they will be subject to tax recovery measures and penalties in accordance with tax regulations.

Besides, Decree 199/2025/ND-CP also raises the export and preferential import tax rates for selected commodities, as outlined in Appendix I regarding the export tariff schedule and Appendix II on the preferential import tariff schedule attached to Decree No. 26/2023/ND-CP.

Notably, yellow phosphorus will be subject to a 10% export duty starting January 1, 2026, which will rise further to 15% from January 1, 2027, up from the current 5%.

Yellow phosphorus is a vital input material used in multiple sectors from fertiliser and pesticide production to high-tech applications such as semiconductors and lithium-ion batteries.

The adjustment in export tariffs aims to safeguard national resources, reduce environmental impacts, and support the country’s strategic focus on industries such as chip production, electric vehicle battery manufacturing, and advanced industrial chemicals.

The current 0% import duty on tin-mill blackplate (TMBP) - a type of cold-rolled black steel sheet used in tin-coating - will remain effective only until August 31, 2025. From September 1, 2025, the import duty will increase to 7%.

In addition, a 2% import duty will take immediate effect for several polyethylene categories, including Polyethylene containing alpha-olefin comonomers of 5% or less; Polyethylene with a specific gravity of 0.94 or more; and Ethylene-alpha-olefin copolymers with a specific gravity below 0.94. Previously, these items were all subject to a 0% import duty.