Circular No. 163/2011/TT-BTC dated November 17, 2011 of the Ministry of Finance promulgating Vietnam’s Special Preferential Import Tariff to realize the ASEAN-Korea Free Trade Area during 2012-2014

THE MINISTRY OF FINANCE

Circular No. 163/2011/TT-BTC of November 17, 2011, promulgating Vietnam’s Special Preferential Import Tariff to realize the ASEAN-Korea Free Trade Area during 2012-2014

Pursuant to June 14, 2005 Law No. 45/2005/QH11 on Import Duty and Export Duty;

Pursuant to the Government’s Decree No. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to the Government’s Decree No. 87/2010/ND-CP of August 13, 2010, detailing the implementation of June 14, 2005 Law No. 45/2005/QH11 on Import Duty and Export Duty;

Pursuant to the Framework Agreement on Comprehensive Economic Cooperation between the governments of the member countries of the Association of Southeast Asian Nations (ASEAN) and the Republic of Korea (below referred to as Korea), which was concluded on December 13, 2005, in Malaysia and ratified by the President of the Socialist Republic of Vietnam on April 12, 2006;

Pursuant to the Agreement on Trade in Goods under the ASEAN-Korea Framework Agreement on Comprehensive Economic Cooperation (below referred to as ASEAN-Korea Agreement on Trade in Goods) which was concluded on December 13, 2005, in Malaysia and on August 24, 2006, in the Philippines;

The Ministry of Finance promulgates a circular on Vietnam’s Special Preferential Import Tariff to realize the ASEAN-Korea Free Trade Area as follows:

Article 1. To promulgate together with this Circular Vietnam’s Special Preferential Import Tariff to realize the ASEAN-Korea Free Trade Area during 2012-2014 (applicable duty rates are referred to as AKFTA duty rates).

In which:

+ Column “Goods heading” and column “Goods description” are developed based on the 2012 AHTN (ASEAN Harmonized Tariff Nomenclature) and classified at the 8-digit level.

+ Column “AKFTA duty rate (%)”: Duty rates applicable to each year, from January 1 through December 31 of the year, beginning from 2012 to the end of 2014.

+ Column “Ineligible countries”: Goods imported from countries with country codes (specified at Point 2, Article 2 of this Circular) ineligible for AKFTA duty rates.

+ Column “GIC” (Gaeseong Industrial Complex): Goods produced at Kaesong (Gaesesong) Industrial Complex in the territory of the People’s Democratic Republic of Korea eligible for AKFTA duty rate under Article 3 of this Circular.

Article 2. To be eligible for AKFTA duty rates, imports must fully meet the following conditions:

1. Being named in the Special Preferential Import Tariff promulgated together with this Circular;

2. Being imported into Vietnam from the following member countries of the ASEAN-Korea Free Trade Area:

3. Being transported directly from a country of exportation specified in Clause 2 of this Article to Vietnam under the Ministry of Industry and Trade’s regulations;

4. Satisfying the rules of origin of goods in the ASEAN-Korea Agreement on Trade in Goods and having an ASEAN-Korea certificate of origin (referred to as C/O - Form AK) as required by the Ministry of Industry and Trade.

Article 3. To be eligible for AKFTA duty rate, goods produced at Kaesong Industrial Complex in the territory of the People’s Democratic Republic of Korea (GIC goods) must fully meet the following conditions:

1. Being goods with “GIC” sign mentioned in column No. 6 of this Tariff;

2. Being imported and transported directly from the Republic of Korea to Vietnam under the Ministry of Industry and Trade’s regulations;

3. Having a C/O - Form AK printed with words “Rule 6” in box No. 08 issued by an agency of the Republic of Korea competent to issue C/O - Form AK under the Ministry of Industry and Trade’s regulations;

4. Satisfying the rules of origin of goods in the ASEAN-Korea Agreement on Trade in Goods, for goods subject to Rule 6 - AKFTA under the Ministry of Industry and Trade’s regulations.

Article 4. This Circular takes effect on January 1, 2012, and replaces the Minister of Finance Circular No. 77/2010/TT-BTC of May 18, 2010, promulgating Vietnam’s Special Preferential Import Tariff to realize the ASEAN-Korea Free Trade Area during 2010-2011.-

For the Minister of Finance
Vice Minister
TRUONG CHI TRUNG