Decree No. 124/2016/ND-CP dated September 01, 2016 of the Government on the Special Preferential Import Tariff to implement the Bilateral Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People’s Democratic Republic

DECREE

On the Special Preferential Import Tariff to implement the Bilateral Trade Agreement between the Government of the Socialist Republic of
Vietnam and the Government of the Lao People’s Democratic Republic[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 April 9, 2016 Law on Treaties;

In furtherance of the Bilateral Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People’s Democratic Republic which was concluded in Vientiane on March 3, 2015;

At the proposal of the Minister of Finance;

The Government promulgates the Decree on the Special Preferential Import Tariff to implement the Bilateral Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People’s Democratic Republic.

Article 1.Scope of regulation

This Decree promulgates the Special Preferential Import Tariff to implement the Bilateral Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People’s Democratic Republic which was concluded in Vientiane on March 3, 2015 (below referred to as the Vietnam-Laos Trade Agreement), and conditions for entitlement to the special preferential import duty rates under the Vietnam-Laos Trade Agreement.

Article 2.Subjects of application

1. Taxpayers as defined in the Law on Import Duty and Export Duty.

2. Customs offices and officers.

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

Article 3.List of goods originating from the Lao People’s Democratic Republic under the Vietnam-Laos Trade Agreement

To promulgate together with this Decree:

1. Appendix I - List of goods originating from the Lao People’s Democratic Republic which are eligible for 50% reduction of ATIGA import duty rates (Vietnam’s special preferential import duty rates to implement the ASEAN Trade in Goods Agreement) when being imported into Vietnam.

2. Appendix II - List of goods originating from the Lao People’s Democratic Republic which are ineligible for tariff incentives when being imported into Vietnam.

3. Appendix III - List of goods originating from the Lao People’s Democratic Republic which are eligible for annual tariff-rate quotas when being imported into Vietnam.

Article 4.Imports eligible for 50% reduction of ATIGA import duty rates

1. Imports originating from the Lao People’s Democratic Republic and being on the List of goods prescribed in Appendix I to this Decree are eligible for import duty rates equal to 50% of ATIGA import duty rates prescribed in the Special Preferential Import Tariff promulgated together with the Government’s Decree on Vietnam’s Special Preferential Import Tariff to implement the ASEAN Trade in Goods Agreement (the ATIGA Tariff). In case the duty rates prescribed in the ATIGA Tariff are higher than those prescribed in the Most-Favored Nation (MFN) Import Tariff, 50% reduction of the duty rates prescribed in the MFN Import Tariff shall be applied.

2. Goods specified in Clause 1 of this Article must satisfy the following conditions:

a/ Being imported and transported directly from the Lao People’s Democratic Republic into Vietnam;

b/ Complying with the current regulations on rules of origin applicable to goods eligible for Vietnam-Laos tariff incentives, and having a certificate of origin, form S (C/O, form S) granted by a competent authority of the Lao People’s Democratic Republic.

Article 5.Imports eligible for 0% special preferential import duty rate

Imports originating from the Lao People’s Democratic Republic, except imports subject to tariff-rate quotas prescribed in Article 6 of this Decree, and being outside the List of goods prescribed in Appendix I or II to this Decree, are eligible for the special preferential import duty rate of 0% (zero percent) if satisfying the conditions prescribed in Clause 2, Article 4 of this Decree.

Article 6.Imports eligible for tariff-rate quotas

1. Imports originating from the Lao People’s Democratic Republic, being on the List of goods with tariff-rate quota volumes prescribed in Appendix III to this Decree, and satisfying the conditions specified in Clause 2, Article 4 of this Decree, are eligible for tariff-rate quotas with the import duty rate of 0% and must comply with the Ministry of Industry and Trade’s document on annul tariff-rate quota-based import of goods originating from the Lao People’s Democratic Republic.

2. For imports originating from the Lao People’s Democratic Republic, being on the List of goods prescribed in Appendix III to this Decree, and satisfying the conditions specified in Clause 2, Article 4 of this Decree, which have volumes exceeding the tariff-rate quotas prescribed in Appendix III to this Decree, except tobacco leaves and tobacco leaf scraps imported in excess of the tariff-rate quotas prescribed in Clause 4 of this Article, their over-quota volumes are eligible for the import duty rates equal to 50% of the ATIGA import duty rates prescribed in Clause 1, Article 4 of this Decree.

3. For imports originating from the Lao People’s Democratic Republic and being on the List of goods prescribed in Appendix III to this Decree but failing to satisfy the conditions specified in Clause 2, Article 4 of this Decree, which have volumes exceeding the tariff-rate quotas prescribed in Appendix III to this Decree, except tobacco leaves and tobacco leaf scraps imported in excess of the tariff-rate quotas prescribed in Clause 4 of this Article, their over-quota volumes are eligible for the ATIGA import duty rates.

4. Tobacco leaves and tobacco leaf scraps which are imported in excess of the tariff-rate quotas prescribed in Appendix III to this Decree must comply with the following provisions:

a/ If they are within the total tariff-rate quotas for imports announced by the Ministry of Industry and Trade and satisfy the conditions prescribed in Vietnam’s legal documents on tariff-rate quotas, their over-quota volumes are eligible for preferential import duty rates stated in the Preferential Import Tariff promulgated together with the Government’s Decree on the Export Tariff, Preferential Import Tariff, List of goods and their absolute duty rates, compound duty, and import duty on beyond-quota imports;

b/ If they are beyond the total tariff-rate quotas for imports announced by the Ministry of Industry and Trade or fail to satisfy the conditions prescribed in Vietnam’s legal documents on tariff-rate quotas, their over-quota volumes are eligible for beyond-quota duty rates for tobacco leaves and tobacco leaf scraps prescribed in the Government’s Decree on the Export Tariff, Preferential Import Tariff, List of goods and their absolute duty rates, compound duty, and import duty on beyond-quota imports.

Article 7.Effect

1. This Decree takes effect from September 1, 2016, through October 3, 2020.

2. To annul the Minister of Finance’s Circular No. 216/2015/TT-BTC of December 31, 2015, guiding import duty rates to implement the Bilateral Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People’s Democratic Republic.

Article 8.Organization of implementation

Ministers, heads of ministerial-level agencies, heads of 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.-