Decree No. 149/2017/ND-CP dated December 26, 2017 of the Government on Vietnam’s Special Preferential Import Tariff to implement the ASEAN-Korea Free Trade Agreement during 2018-2022

DECREE

On Vietnam’s Special Preferential Import Tariff to implement the ASEAN-Korea Free Trade Agreement during 2018-2022[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 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 2018-2022.

Article 1.Scope of regulation

This Decree prescribes Vietnam’s special preferential import duty rates to implement the Vietnam-Korea Free Trade Agreement during 2018-2022, and conditions for enjoying such duty rates under this Agreement.

Article 2.Subjects of application

1. Duty payers 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 2018-2022 (applicable special preferential import duty rates are below referred to as VKFTA duty rates).

1. The annotation and general rules explaining the classification of commodities must comply with the list of Vietnam’s exports and imports based on the Harmonized Commodity Description and Coding System (HS) of the World Customs Organization.

2. Column “Heading” and column “Description” are developed based on the list of Vietnam’s imports and exports and classified by 8-digit or 10-digit code.

3. Column “VKFTA duty rate (%)”: duty rates applicable to different periods, including:

a/ January 1, 2018 - December 31, 2018: duty rates applicable from January 1, 2018, through December 31, 2018;

b/ January 1, 2019 - December 31, 2019: duty rates applicable from January 1, 2019, through December 31, 2019;

c/ January 1, 2020 - December 31, 2020: duty rates applicable from January 1, 2020, through December 31, 2020;

d/ January 1, 2021 - December 31, 2021: duty rates applicable from January 1, 2021, through December 31, 2021;

dd/ January 1, 2022 - December 31, 2022: duty rates applicable from January 1, 2022, through December 31, 2022;

4. Symbol “*”: imports ineligible for AKFTA duty rates at a corresponding time.

5. 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.

6. For imports subject to tariff quotas, the special preferential import duty rates applicable to the volume of imports within the tariff quotas are detailed in Vietnam’s Special Preferential Import Tariff to implement the ASEAN-Korea Free Trade Agreement during 2018-2022 promulgated together with this Decree. The out-of-quota import duty rates must comply with the Government’s regulations at the time of importation. The annual import tariff quotas must comply with the Ministry of Industry and Trade’s regulations.

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 in the Vietnam-Korea Free Trade Agreement, and having a certificate of origin (C/O), form KV, in accordance with the current regulations.

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 KV, in accordance with the current regulations.

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 of Vietnam, goods produced at Kaesong Industrial Complex in the territory of the Democratic People’s Republic of Korea (GIC goods) must fully satisfy the following conditions:

1. Being commodity items with “GIC” symbol in column “GIC” of the 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 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, in accordance with the current regulations.

Article 7.Effect

1. This Decree takes effect on January 1, 2018.

2. To annul the Government’s Decree No. 131/2016/ND-CP of September 1, 2016, promulgating Vietnam’s Special Preferential Import Tariff to implement the Vietnam-Korea Free Trade Agreement during 2016-2018.

Article 8.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 2018-2022 promulgated together with this Decree is not translated.-