Decree No. 131/2016/ND-CP dated September 01, 2016 of the Government on Vietnam’s Special Preferential Import Tariff to implement the Vietnam-Korea Free Trade Agreement during 2016-2018

DECREE

On Vietnam’s Special Preferential Import Tariff to implement the Vietnam-Korea Free Trade Agreement during 2016-2018[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 implementation of the Vietnam - Korea Free Trade Agreement, which took effect on December 20, 2015;

At the proposal of the Minister of Finance;

The Government promulgates the Decree on Vietnam’s Special Preferential Import Tariff to implement the Vietnam-Korea Free Trade Agreement during 2016-2018.

Article 1.Scope of regulation

This Decree prescribes Vietnam’s special preferential import duty rates to implement the Vietnam-Korea Free Trade Agreement during 2016-2018, and conditions for enjoying the special preferential import duty rates under this 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.Special Preferential Import Tariff

To promulgate together with this Decree Vietnam’s Special Preferential Import Tariff to implement the Vietnam-Korea Free Trade Agreement during 2016-2018 (applicable duty rates are below referred to as VKFTA duty rates).

1. Column “Goods heading” and column “Goods names and description” are developed based on the list of Vietnam’s imports and exports and classified by 8-digit or 10-digit code.

2. Column “VKFTA duty rate (%)”: Duty rates applicable to each year, from September 1, 2016, through December 31, 2016; from January 1, 2017, through December 31, 2017; and 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 6 of this Decree.

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

To be eligible for VKFTA 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 Republic of Korea into Vietnam.

3. Being transported directly from the Republic of Korea to Vietnam as prescribed by the Ministry of Industry and Trade.

4. Satisfying the rules of origin of goods in the Vietnam-Korea Free Trade Agreement, and having a certificate of origin (C/O), Form KV provided by the Ministry of Industry and Trade.

Article 5.Goods from non-tariff areas of Vietnam

To be eligible for VKFTA duty rates, goods (including processed goods) imported into the domestic market from non-tariff areas of Vietnam must satisfy the conditions prescribed in Clause 1, Article 4 of this Decree and have a certificate of origin (C/O), Form VK provided by the Ministry of Industry and Trade.

Article 6.Goods produced at Kaesong Industrial Complex in the territory of the Democratic People’s Republic of Korea

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

1. Being commodity items with “GIC” symbol in column “GIC” of this Tariff.

2. Being imported from the Republic of Korea into Vietnam.

3. Being transported directly from the Republic of Korea to Vietnam as prescribed by the Ministry of Industry and Trade.

4. Satisfying the rules of origin of goods prescribed in Article 3.5, Chapter 3, on rules of origin and origin procedures in the Vietnam-Korea Free Trade Agreement, and having a certificate of origin (C/O), Form KV provided by the Ministry of Industry and Trade.

Article 7.Effect

1. This Decree takes effect on September 1, 2016.

2. To annul the Minister of Finance’s Circular No. 201/2015/TT-BTC of December 16, 2015, promulgating Vietnam’s Special Preferential Import Tariff to implement the Vietnam-Korea Free Trade Agreement during 2015-2018.

Article 7.Implementation responsibility

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

* Vietnam’s Special Preferential Import Tariff to implement the Vietnam-Korea Free Trade Agreement during 2016-2018 promulgated together with this Decree is not translated.-