Circular No. 201/2015/TT-BTC dated December 16, 2016 of the Ministry of Finacne on promulgating Vietnam’s Special Preferential Import Tariff for implementation of the Vietnam-Republic of Korea Free Trade Agreement during 2015-2018

CIRCULAR

Promulgating Vietnam’s Special Preferential Import Tariff for implementation of the Vietnam-Republic of Korea Free Trade Agreement during 2015-2018[1]

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

Pursuant to the Government’s Decree No. 87/2010/ND-CP of August 13, 2010, detailing a number of articles of the Law on Import Duty and Export Duty;

Pursuant to the Government’s Decree No. 215/2013/ND-CP of December 23, 2013, defining the functions, duties, powers and organizational structure of the Ministry of Finance;

Pursuant to the Framework Agreement on Comprehensive Economic Cooperation between the Association of Southeast Asian Nations (ASEAN) and the Republic of Korea (hereafter referred to as Korea), which was concluded on December 13, 2005, in Malaysia and approved 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, which was concluded in Malaysia on December 13, 2005, and in the Republic of the Philippines on August 24, 2006, and approved by the Government of the Socialist Republic of Vietnam on October 30, 2006;

Pursuant to the Vietnam-Korea Free Trade Agreement, which was concluded on May 5, 2015, in Vietnam and approved by the Government of the Socialist Republic of Vietnam in Resolution No. 60/NQ-CP of August 20, 2015;

At the proposal of the Director of the Department of International Cooperation;

The Minister of Finance promulgates the Circular promulgating Vietnam’s Special Preferential Import Tariff for implementation of the Vietnam-Korea Free Trade Agreement during 2015-2018.

Article 1.To promulgate together with this Circular Vietnam’s Special Preferential Import Tariff for implementation of the Vietnam-Korea Free Trade Agreement during 2015-2018 (applicable special preferential duty rates are below referred to as VKFTA duty rates).

1. Columns “Goods heading” and “Goods description” shall be developed based on the 2012 ASEAN Harmonized Tariff Nomenclature (AHTN 2012) and classified with 8-digit or 10-digit codes.

2. Column “VKFTA duty rate (%)”: Duty rates shall be applicable to each year from December 12, 2015, through December 31, 2015, and from January 1 through December 31 of the years 20 from 2016 through 2018.

3. Column “GIC”: The application of VKFTA duty rates to goods produced at Kaesong Industrial Complex in the territory of the Democratic People’s Republic of Korea must comply with Article 4 of this Circular.

Article 2.Conditions for imports to be eligible for VKFTA duty rates

To be eligible for VKFTA duty rates, imports must fully meet the following conditions:

1. Being specified in the Special Preferential Import Tariff promulgated together with this Circular(not translated).

2. Being imported from Korea to Vietnam.

3. Being transported directly from Korea to Vietnam under the Ministry of Industry and Trade’s regulations.

4. Complying with the rules of origin of goods in the Vietnam-Korea Free Trade Agreement and having a KV certificate of origin (abbreviated to C/O KV) as required by the Ministry of Industry and Trade.

Article 3.Goods imported from non-tariff areas (including outsourced goods) into the domestic market to enjoy VKFTA duty rates must satisfy the conditions prescribed in Clause 1, Article 2 of this Circular and have a VK certificate of origin (abbreviated to C/O VK) according to the Ministry of Industry and Trade’s regulations.

Article 4.GIC goods

Goods produced at Kaesong Industrial Complex in the territory of the Democratic People’s Republic of Korea (GIC goods), which are re-imported into Korea and then exported to Vietnam to enjoy VKFTA duty rates must fully meet the following conditions:

1. Being commodity items labeled “GIC” at column “GIC” of this Tariff;

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

3. Complying with the regulations on rules of origin of special goods specified in Clause 3.5, Chapter “Rules of origin and origin procedures” of the Vietnam-Korea Free Trade Agreement, and having a KV certificate of origin (abbreviated to C/O KV) issued by a Korean customs agency, on the word “Article 3.5” is printed in the 8^thblank according to the Ministry of Industry and Trade’s regulations.

Article 5.Effect

This Circular takes effect on December 20, 2015. Any problems arising in the course of implementation should be promptly reported to the Ministry of Finance for additional guidance as appropriate.-

For the Minister of Finance
Deputy Minister
TRUONG CHI TRUNG