Vietnam Customs imposes 50% preferential tax on Vape imports

On July 3, Vietnam Enterprise Finance reported that the General Department of Vietnam Customs has issued a document to provincial and municipal customs to guide the implementation of Decree No. 26/2023/ND-CP and Decision No. 15/2023/QD-TTg on export duties. A preferential import duty of 50% will be imposed on other nicotine products (including e-cigarettes) containing tobacco, reconstituted tobacco, nicotine or alternative tobacco for inhalation without combustion or alternative nicotine raw materials, suitable for injecting nicotine into the human body.


It is understood that Decree No. 26/2023/ND-CP will take effect from July 15, 2023.


According to the catalog of goods subject to taxation as stipulated in Annex II of Decree No. 26/2023/ND-CP issued by the Vietnamese government, the General Department of Customs has made the following notable changes specifically to the goods eligible for preferential import duties:


Reducing the preferential import duty rate from 20% to 10% for petroleum goods (including 2710.12.40, 2710.12.50, 2710.12.60, 2710.12.70, 2710.12.80, 2710.12.91, 2710.12.92, 2710.12.99).


Reduce the preferential import tariff rate for ethanol (including 2207.20.11 and 2207.20.19) from 15% to 10%. Reduce the preferential import duty rate for petroleum commodities (including 2710.19.90 and 2710.20.00) from 5 percent to 0 percent. Reduce the preferential import duty rate for unused tires for passenger cars or trucks (including 4011.20.11, 4011.20.12, 4011.20.13, 4011.20.19) from 25% to 20%.


Specifically for all commodities belonging to group 24.04, a preferential import duty rate of 50 percent is provided. “These commodities include other nicotine products containing tobacco, reconstituted tobacco, nicotine, or substitute tobacco or substitute nicotine ingredients for inhalation without combustion, as applicable to the injection of nicotine into the human body.” (This includes e-cigarette products).