Decree No. 07/2020/ND-CP Vietnam’s Special Preferential Import Tariff under AHKFTA during 2019-2022

DECREE

On Vietnam’s Special Preferential Import Tariff to implement the ASEAN-Hong Kong, China Free Trade Agreement during 2019-2022^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the April 6, 2016 Law on Import Duty and Export Duty;

Pursuant to the June 23, 2014 Law on Customs;

Pursuant to the April 9, 2016 Law on Treaties;

In implementation of the Association of Southeast Asian Nations (ASEAN)-Hong Kong, China Free Trade Agreement, which took effect on June 11, 2019;

At the proposal of the Minister of Finance;

The Government promulgates the Decree on Vietnam’s Special Preferential Import Tariff to implement the ASEAN-Hong Kong, China Free Trade Agreement during 2019-2022.

Article 1. Scope of regulation

This Decree prescribes Vietnam’s special preferential import duty rates to implement the ASEAN-Hong Kong, China Free Trade Agreement during 2019-2022 and conditions for enjoying special preferential import duty rates under this Agreement.

Article 2. Subjects of application

1. Taxpayers specified by the Law on Import Duty and Export Duty.

2. Customs offices and customs officers.

3. Organizations and individuals that have rights and obligations related to exports and imports.

Article 3. Special Preferential Import Tariff

To promulgate together with this Decree Vietnam’s Special Preferential Import Tariff to implement the ASEAN-Hong Kong, China Free Trade Agreement during 2019-2022 (applicable special preferential duty rates are below referred to as AHKFTA duty rates).

1. The columns “Goods heading” and “Goods description” in the appendices to this Decree are developed based on Vietnam’s Export and Import Classification Nomenclature and specified into 8-digit or 10-digit subheadings. The application of the column “Goods description” with 8-digit subheadings under this Decree must comply with Vietnam’s Export and Import Classification Nomenclature and its revising documents.

The classification of goods must comply with Vietnam’s law.

2. Column “AHKFTA duty rate (%)”: duty rates to be applied during the following periods (i) from June 11, 2019, through December 31, 2019; (ii) from January 1, 2020, through December 31, 2020; (iii) from January 1, 2021, through December 31, 2021, and (iv) from January 1, 2022, through December 31, 2022.

3. Symbol “*”: imports ineligible for AHKFTA duty rates at a given point of time.

4. For imports subject to tariff quotas, special preferential import duty rates applicable to the volume of goods imported within tariff quotas are specified in Vietnam’s Special Preferential Import Tariff to implement the ASEAN-Hong Kong, China Free Trade Agreement during 2019-2022 promulgated together with this Decree. Out-of-quota import duty rates shall be applied under the Government’s regulations at the time of import. Annual import tariff quotas shall be prescribed by the Ministry of Industry and Trade.

Article 4. Conditions for application of special preferential import duty rates

To be eligible for AHKFTA duty rates, imports must fully satisfy the following conditions:

1. Being specified in the Special Preferential Import Tariff promulgated together with this Decree.

2. Being imported from the member states of the ASEAN-Hong Kong, China Free Trade Agreement, namely:

a/ Brunei Darussalam;

b/ The Kingdom of Cambodia;

c/ The Republic of Indonesia;

d/ The Lao People’s Democratic Republic;

dd/ Malaysia;

e/ The Republic of the Union of Myanmar;

g/ The Republic of the Philippines;

h/ The Republic of Singapore;

i/ The Kingdom of Thailand;

k/ Hong Kong Special Administrative Region of the People’s Republic of China;

l/ The Socialist Republic of Vietnam (goods imported from non-tariff zones into the domestic market).

3. Being transported directly from an exporting country specified in Clause 2 of this Article under the AHKFTA and the Ministry of Industry and Trade’s regulations, specifically as follows:

a/ Being transported directly from an exporting member state to an importing member state; or,

b/ Being transported through one or more than one member state or through a non-member state and satisfying the following conditions:

- Being transited as necessary for geographical reasons or to meet transport requirements;

- Neither being involved in commercial transactions nor sold there;

- Having not undergone any processing step other than unloading and reloading or any other steps necessary for preservation under good conditions.

4. Satisfying the rules of origin, and having a certificate of origin (C/O), form AHK, under the AHKFTA and regulations of Vietnam’s Ministry of Industry and Trade.

Article 5. Effect

1. This Decree takes effect on February 20, 2020.

2. For imports with customs declarations registered during the period from June 11, 2019, to before the effective date of this Decree, which fully satisfy the conditions for enjoying the special preferential import duty rates under this Decree and for which import duty has been paid at higher duty rates, customs offices shall handle the overpaid duty amounts in accordance with the law on tax administration.

Article 6. Implementation responsibility

Ministers, heads of ministerial-level agencies and government-attached agencies, chairpersons of provincial-level People’s Committees and related organizations and individuals shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC

* The appendices to this Decree are not translated.