Decree No. 119/2022/NĐ-CP on the Special Preferential Import Tax Tariff of Vietnam for Implementing the ASEAN-Korea Free Trade Agreement (AKFTA) for the period 2022-2027

DECREE
Tariff Schedule for Special Preferential Import Duties of Vietnam to Implement the ASEAN-Korea Trade in Goods Agreement for the Period 2022-2027

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing Certain Provisions of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

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

Pursuant to the Customs Law dated June 23, 2014;

Pursuant to the ASEAN Framework Agreement on Facilitation of Intra-Regional Land Transport signed on December 10, 2009;

To implement the ASEAN-Korea Trade in Goods Agreement between the Association of Southeast Asian Nations (ASEAN) and the Republic of Korea (ROK), which became effective on June 1, 2007;

At the proposal of the Minister of Finance,

The Government promulgates this Decree on the Tariff Schedule for Special Preferential Import Duties of Vietnam to Implement the ASEAN-Korea Trade in Goods Agreement for the Period 2022-2027.

Article 1. Scope of Regulation

This Decree stipulates the rates of special preferential import duties to implement the ASEAN-Korea Trade in Goods Agreement under the ASEAN-Korea Comprehensive Economic Partnership Agreement for the period 2022-2027, and the conditions for enjoying such special preferential import duty rates under this Agreement.

Article 2. Applicability

1. Taxpayers as prescribed by the Law on Export Duties and Import Duties.

2. Customs authorities, customs officers.

3. Organizations and individuals have rights and obligations related to exported and imported goods.

Article 3. Special Preferential Import Tariff Schedule

2. The columns "Commodity Code" and "Description of Goods" in the Tariff Schedule for Special Preferential Import Duties promulgated by this Decree are based on the List of Exported and Imported Commodities of Vietnam and detailed according to the 8-digit or 10-digit coding level.

In case the List of Exported and Imported Commodities of Vietnam is amended or supplemented, the declarant shall declare the description and commodity code according to the amended or supplemented List of Exported and Imported Commodities and apply the duty rate specified in the amended or supplemented commodity code in the Tariff Schedule for Special Preferential Import Duties promulgated by this Decree.

4. Symbol "*": Imported goods not entitled to AKFTA duty rate at the corresponding time.

5. Column "Non-Beneficiary Countries": Goods imported from countries whose names are indicated with country symbols (as provided for in Clause 2, Article 4 of this Decree) are not subject to the AKFTA duty rates prescribed in this Decree.

6. Column "GIC": Goods produced in the Kaesong Industrial Complex within the territory of North Korea shall be subject to AKFTA duty rates as prescribed in Article 6 of this Decree.

Article 4. Conditions for applying the Special Preferential Tariff Rate

Imported goods subject to AKFTA duty rates must meet the following conditions:

1. They must be listed in the Special Preferential Import Tariff Schedule issued together with this Decree.

2. Imported into Vietnam from member countries of the ASEAN-Korea Trade in Goods Agreement, including the following countries:

a) Brunei Darussalam, code BN;

b) Kingdom of Cambodia, code KH;

c) Republic of Indonesia, code ID;

d) Lao People's Democratic Republic, code LA;

d) Malaysia, code MY;

e) Union of Myanmar, code MM;

g) Republic of the Philippines, code PH;

h) Republic of Singapore, code SG;

i) Kingdom of Thailand, code TH;

k) Republic of Korea (South Korea), code KR;

3. Comply with the provisions on origin of goods (including direct shipment requirements), having a Certificate of Origin (C/O) in the AK format or other certification documents proving the origin of goods, as prescribed by the ASEAN-Korea Trade in Goods Agreement and current laws.

Article 5. Goods from Vietnam's Duty-Free Zones

Goods from Vietnam’s free zones imported into the domestic market and subject to special preferential import duty rates under the ASEAN-Korea Trade in Goods Agreement must comply with the conditions stipulated in Clause 1 and Clause 3, Article 4 of this Decree.

Article 6. Goods produced at the Kaesong Industrial Complex located within the territory of North Korea

Goods produced at the Kaesong Industrial Complex located within the territory of North Korea (hereinafter referred to as "GIC") shall be eligible for the AKFTA preferential tariff rate of Vietnam if they satisfy the following conditions:

1. Belong to items that can bear the symbol "GIC" in the "GIC" column of the Tariff Schedule issued together with this Decree.

2. Imported from South Korea into Vietnam.

3. Comply with the origin requirements for goods (including direct shipment requirements), accompanied by a Certificate of Origin (C/O) bearing the phrase "Rule 6" in box number 8 issued by the authorized agency issuing the AK C/O model of South Korea, or other certification documents proving the origin of the goods, in accordance with the provisions of the ASEAN-Korea Free Trade Agreement regarding goods applying Rule 6 - AKFTA and current laws.

Article 7. Effective Date

1. This Decree takes effect from the date of issuance.

2. Decree No. 157/2017/NĐ-CP dated December 27, 2017 of the Government promulgating the Special Preferential Import Tariff Schedule of Vietnam to implement the ASEAN-Korea Free Trade Agreement for the period 2018-2022 ceases to be effective from the date this Decree comes into force.

Article 8. Responsibility for Implementation

The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and municipal People's Committees under central jurisdiction, and related organizations and individuals are responsible for implementing this Decree.