Decree No. 157/2017/ND-CP dated December 27, 2017 of the Government on Vietnam’s Special Preferential Import Tariff to implement the ASEAN-Korea Trade in Goods Agreement during 2018-2022

DECREE

On Vietnam’s Special Preferential Import Tariff to implement the ASEAN-Korea Trade in Goods 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 Agreement on Trade in Goods between the member countries of the Association of Southeast Asian Nations (ASEAN) and the Republic of Korea (below referred to as Korea), which took effect on June 1, 2007;

At the proposal of the Minister of Finance;

The Government promulgates the Decree on Vietnam’s Special Preferential Import Tariff to implement the ASEAN-Korea Trade in Goods Agreement during 2018-2022.

Article 1.Scope of regulation

This Decree prescribes special preferential import duty rates to implement the ASEAN-Korea Trade in Goods Agreement under the ASEAN-Korea Framework Agreement on Comprehensive Economic Cooperation 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 having the 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-Korea Trade in Goods Agreement during 2018-2022 (applicable special preferential import duty rates are below referred to as AKFTA 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. Columns “Heading” and “Description” are developed based on the list of Vietnam’s imports and exports and classified by 8-digit or 10-digit code.

3. Column “AKFTA duty rate (%)”: duty rates applicable to each year, from January 1, 2018, through December 31, 2022.

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

5. Column “Countries ineligible for preference”: commodity items imported from countries with name symbols (specified in Clause 2, Article 4 of this Decree) which are ineligible for AKFTA duty rates under this Decree.

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

7. 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 Trade in Goods 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 AKFTA 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 into Vietnam from the member countries of the ASEAN-Korea Trade in Goods Agreement, namely:

a/ Brunei Darussalam, symbol BN;

b/ The Kingdom of Cambodia, symbol KH;

c/ The Republic of Indonesia, symbol ID;

d/ The Lao People’s Democratic Republic, symbol LA;

dd/ Malaysia, symbol MY;

e/ The Republic of the Union of Myanmar, symbol MM;

g/ The Republic of the Philippines, symbol PH;

h/ The Republic of Singapore, symbol SG;

i/ The Kingdom of Thailand, symbol TH;

k/ The Republic of Korea (Korea), symbol KR;

l/ The Socialist Republic of Vietnam (for goods imported from non-tariff areas into the domestic market), symbol VN.

3. Being transported to Vietnam directly from an exporting country specified in Clause 2, Article 4 of this Decree, as prescribed by the Ministry of Industry and Trade.

4. Satisfying the rules of origin in the ASEAN-Korea Trade in Goods Agreement and having a certificate of origin (C/O), form AK, in accordance with the current regulations.

Article 5.Goods produced at Kaesong Industrial Complex in the territory of the Democratic People’s Republic of Korea

To be eligible for Vietnam’s AKFTA duty rates, 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 symbol “GIC” 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 under the Ministry of Industry and Trade’s regulations;

4. Satisfying the rules of origin specified in the ASEAN-Korea Trade in Goods Agreement regarding goods subject to Rule 6 - AKFTA, and having a certificate of origin (C/O), form AK, with “Rule 6” printed in box 8 issued by a Korean agency competent to issue C/Os, form AK, in accordance with the current regulations.

Article 6.Effect

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

2. To annul the Government’s Decree No. 130/2016/ND-CP of September 1, 2016, promulgating Vietnam’s Special Preferential Import Tariff to implement the ASEAN-Korea Trade in Goods Agreement during 2016-2018.

Article 7.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

* Vietnam’s Special Preferential Import Tariff to implement the ASEAN-Korea Trade in Goods Agreement during 2018-2022 promulgated together with this Decree is not translated.-