Decree No. 124/2016/ND-CP on the Preferential Import Tariff Schedule for Special Treatment 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

SPECIAL PREFERENTIAL IMPORT DUTY TARIFF FOR IMPLEMENTING THE BILATERAL TRADE AGREEMENT BETWEEN THE GOVERNMENT OF THE SOCIALIST REPUBLIC OF VIET NAM AND THE GOVERNMENT OF THE LAO PEOPLE'S DEMOCRATIC REPUBLIC

Pursuant to the Law on Government Organization dated June 19, 2015;

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

Pursuant to the Law on Treaties dated April 9, 2016;

To implement the Bilateral Trade Agreement between the Government of the Socialist Republic of Viet Nam and the Government of the Lao People's Democratic Republic signed in Vientiane on March 3, 2015;

At the proposal of the Minister of Finance;

The Government promulgates the Decree on the Special Preferential Import Duty Tariff for implementing the Bilateral Trade Agreement between the Government of the Socialist Republic of Viet Nam and the Government of the Lao People's Democratic Republic.

Article 1. Scope of Regulation

This Decree promulgates the Special Preferential Import Duty Tariff for implementing the Bilateral Trade Agreement between the Government of the Socialist Republic of Viet Nam (Viet Nam) and the Government of the Lao People's Democratic Republic (Lao PDR) signed in Vientiane on March 3, 2015 (hereinafter referred to as the Viet Nam-Lao PDR Trade Agreement) and the conditions for enjoying the preferential import duty rate under the Viet Nam-Lao PDR Trade 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 with rights and obligations related to exported and imported goods.

Article 3. List of goods originating from Lao PDR according to the Viet Nam-Lao PDR Trade Agreement

Announced together with this Decree:

1. Appendix I - List of goods originating from Lao PDR eligible for preferential reduction of 50% of the ATIGA tariff rate (special preferential import duty rate of Viet Nam to implement the ASEAN Trade in Goods Agreement) when imported into Viet Nam.

2. Appendix II - List of goods imported from Lao PDR that are not eligible for preferential treatment when imported into Viet Nam.

3. Appendix III - List of goods originating from Lao PDR eligible for annual quota import duty regime when imported into Viet Nam.

Article 4. Goods imported eligible for preferential reduction of 50% of the ATIGA tariff rate

1. Goods imported from Lao PDR listed in Appendix I attached hereto shall be subject to an import duty rate equal to 50% of the ATIGA tariff rate specified in the Special Preferential Import Duty Tariff promulgated by the Government to implement the ASEAN Trade in Goods Agreement (ATIGA Tariff). In cases where the tariff rate specified in the ATIGA Tariff is higher than the Most-Favored-Nation (MFN) tariff rate, the reduction of 50% shall be applied based on the MFN tariff rate.

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

a) Imported and transported directly from Lao PDR to Viet Nam;

b) Comply with the current laws on Rules of Origin applicable to goods benefiting from preferential tariffs under the Viet Nam-Lao PDR Agreement and must have a Certificate of Origin Form S (C/O Form S) issued by the competent authority of Lao PDR in accordance with the regulations.

Article 5. Goods imported eligible for special preferential import duty rate of 0%

Goods imported from Lao PDR, except those subject to quota import duty regime as stipulated in Article 6 of this Decree, which are not included in the list of goods specified in Appendices I and II attached hereto, shall be subject to a special preferential import duty rate of 0% (zero percent) if they meet the conditions specified in Clause 2 of Article 4 of this Decree.

Article 6. Goods imported subject to quota tariff regime

1. Goods imported from the Lao People's Democratic Republic that belong to the list of goods and quota quantities specified in Appendix III issued together with this Decree when imported into Vietnam and meet the conditions stipulated in Clause 2, Article 4 of this Decree shall be entitled to the quota tariff regime with a zero percent import tariff rate and shall be implemented according to the document of the Ministry of Industry and Trade regulating the importation under the annual quota tariff for goods originating from the Lao People's Democratic Republic.

2. Goods imported from the Lao People's Democratic Republic that belong to the list of goods specified in Appendix III issued together with this Decree and meet the conditions stipulated in Clause 2, Article 4 of this Decree, if the quantity imported exceeds the quota quantity specified in Appendix III issued together with this Decree, except for tobacco leaves and waste tobacco leaves which exceed the quota quantity and are implemented according to the provisions of Clause 4 of this Article, then the excess quantity imported shall be subject to an import tariff rate equal to fifty percent of the ATIGA import tariff rate specified in Clause 1, Article 4 of this Decree.

3. Goods imported from the Lao People's Democratic Republic that belong to the list of goods specified in Appendix III issued together with this Decree but do not meet the conditions stipulated in Clause 2, Article 3 of this Decree, if the quantity imported exceeds the quota quantity specified in Appendix III issued together with this Decree, except for tobacco leaves and waste tobacco leaves which exceed the quota quantity and are implemented according to the provisions of Clause 4 of this Article, then the excess quantity imported shall be subject to the ATIGA import tariff rate.

4. Tobacco leaves and waste tobacco leaves imported exceeding the quota quantity specified in Appendix III issued together with this Decree shall be implemented as follows:

a) In the case where the quantity of tobacco leaves and waste tobacco leaves imported exceeds the quota quantity specified in Appendix III issued together with this Decree but still falls within the total quota quantity for import announced by the Ministry of Industry and Trade and meets the conditions stipulated in the legal regulations of Vietnam on quota tariffs, then the excess quantity imported shall be subject to the preferential import tariff rate specified in the Preferential Tariff Schedule issued together with the Government Decree stipulating the Export Tariff Schedule, the Preferential Import Tariff Schedule, the List of Goods and Absolute Tax Rates, Mixed Tax Rates, and Import Tariffs outside Quota Tariffs.

b) In the case where the quantity of tobacco leaves and waste tobacco leaves imported exceeds the quota quantity specified in Appendix III issued together with this Decree and exceeds the total quota quantity for import announced by the Ministry of Industry and Trade or does not meet the conditions stipulated in the legal regulations of Vietnam on quota tariffs, then the excess quantity imported shall be subject to the non-quota import tariff rate for tobacco leaves and waste tobacco leaves specified in the Government Decree stipulating the Export Tariff Schedule, the Preferential Import Tariff Schedule, the List of Goods and Absolute Tax Rates, Mixed Tax Rates, and Import Tariffs outside Quota Tariffs.

Article 7. Effective Date

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

2. The Circular No. 216/2015/TT-BTC dated December 31, 2015 of the Minister of Finance guiding the import tariff 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 is hereby abolished.

Article 8. Implementation organization

Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairpersons of provincial and centrally-administered city People's Committees, and related organizations and individuals are responsible for implementing this Decree./