Decree No. 125/2022/ND-CP on the Special Preferential Tariff Schedule of Vietnam for Implementing the Vietnam-Korea Free Trade Agreement for the period 2022-2027.

DECREE
Tariff Schedule for Special Preferential Import Tax Rates of Vietnam
to implement the Vietnam-Korea Free Trade Agreement
for the period from 2022 to 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 Vietnam-Korea Free Trade Agreement which became effective on December 20, 2015;

At the proposal of the Minister of Finance,

The Government promulgates this Decree on the Tariff Schedule for Special Preferential Import Tax Rates of Vietnam to implement the Vietnam-Korea Free Trade Agreement for the period from 2022 to 2027.

Article 1. Scope of Regulation

This Decree stipulates the special preferential import tax rates of Vietnam to implement the Vietnam-Korea Free Trade Agreement for the period from 2022 to 2027 and the conditions for enjoying such special preferential import tax rates under the Agreement.

Article 2. Applicability

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

2. Customs authorities, customs officers.

Article 3. Organizations and individuals involved in export and import goods have rights and obligations related to such goods.

Article 3. Special Preferential Import Tariff Schedule

1. Attached to this Decree is the Special Preferential Import Tariff Schedule of Vietnam (hereinafter referred to as the VKFTA tariff rate) to implement the Vietnam-Korea Free Trade Agreement for the period from 2022 to 2027.

2. The columns "Product Code" and "Product Description" in the Special Preferential Import Tariff Schedule attached to this Decree are based on the Vietnam Export and Import Goods List and detailed according to the 8-digit or 10-digit coding system.

In case the Vietnam Export and Import Goods List is amended or supplemented, the declarant shall declare the product description and code according to the amended or supplemented list and apply the VKFTA tariff rate specified in the Special Preferential Import Tariff Schedule attached to this Decree for the modified or supplemented product codes.

3. Column "VKFTA Rate (%)" includes the applicable rates for different periods, including:

a) 2022: The rate applies from December 30, 2022 to December 31, 2022;

b) 2023: The rate applies from January 1, 2023 to December 31, 2023;

c) 2024: The rate applies from January 1, 2024 to December 31, 2024;

d) 2025: The rate applies from January 1, 2025 to December 31, 2025;

đ) 2026: The rate applies from January 1, 2026 to December 31, 2026;

e) 2027: The rate applies from January 1, 2027 to December 31, 2027.

4. Symbol "*": Imported goods do not enjoy the VKFTA rate at the corresponding time.

5. Column "GIC": Products manufactured in the Kaesong Industrial Complex within the territory of the Democratic People's Republic of Korea shall apply the VKFTA rate as prescribed in Article 6 of this Decree.

6. For imported goods subject to quota tariffs, including certain items under commodity groups 04.07, 17.01, 24.01, 25.01, the special preferential import tax rate within the quota is the rate specified in the Special Preferential Import Tariff Schedule attached to this Decree; the annual quota tariff import list and quantity are determined by the Ministry of Industry and Trade, and the import tariff rate outside the quota is applied according to the Export Tariff Schedule, the Import Tariff Schedule for Preferential Rates, the List of Goods and Absolute, Mixed, and Import Tariffs Outside Quota as prescribed by the Government at the time of import.

Article 4. Conditions for applying the preferential import tariff rate under the VKFTA

Imported goods subject to the preferential import tariff rate under the VKFTA must meet the following conditions:

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

2. Imported from South Korea into Vietnam.

3. Comply with the rules on origin of goods (including direct shipment requirements), have a Certificate of Origin (C/O) in Form KV or other proof of origin of goods, in accordance with the Vietnam-Korea Free Trade Agreement and current laws.

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

Goods imported from the duty-free zones of Vietnam into the domestic market subject to the preferential import tariff rate under the VKFTA must meet the conditions stipulated in Clause 1 of Article 4 of this Decree and have a Certificate of Origin (C/O) in Form VK or other proof of origin of goods, in accordance with the Vietnam-Korea Free Trade Agreement and current laws.

Article 6. Goods produced at the Kaesong Industrial Complex located within the territory of the Democratic People's Republic of Korea

Goods produced at the Kaesong Industrial Complex located within the territory of the Democratic People's Republic of Korea (GIC goods) to be eligible for the preferential import tariff rate under the VKFTA of Vietnam must meet the following conditions:

1. Belong to items that can be marked with 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 rules on origin of goods under Article 3.5, Chapter 3 on Rules of Origin and Issuance Procedures of the Vietnam-Korea Free Trade Agreement, direct shipment requirements, have a Certificate of Origin (C/O) in Form KV or other proof of origin of goods, in accordance with the Vietnam-Korea Free Trade Agreement and current laws.

Article 7. Effective Date

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

2. Decree No. 149/2017/NĐ-CP dated December 26, 2017 of the Government promulgating the Special Preferential Import Tariff Schedule of Vietnam to implement the Vietnam-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

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