Decree No. 131/2016/ND-CP on the Special Preferential Tariff Schedule of Vietnam for Implementing the Vietnam-Korea Free Trade Agreement for the period 2016-2018

DECREE

Issuing Special Preferential Import Tariff Schedule of Vietnam to Implement the Vietnam-Korea Free Trade Agreement for the period 2016-2018

Period: 2016-2018

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Pursuant to the Law on the Organization of the Government No. 76/2015/QH13 dated June 19, 2015;

Pursuant to the Law on Export Tax and Import Tax No. 107/2016/QH13 dated April 6, 2016;

Pursuant to the Law on International Treaties No. 108/2016/QH13 dated April 9, 2016;

To implement the Vietnam-Korea Free Trade Agreement which became effective from December 20, 2015; The Vietnam-Korea Free Trade Agreement took effect from December 20, 2015;

At the proposal of the Minister of Finance;

The Government issues this Decree to issue the Special Preferential Import Tariff Schedule of Vietnam to implement the Vietnam-Korea Free Trade Agreement for the period 2016-2018.

Article 1. Scope of Regulation

This Decree stipulates the special preferential import tariff rates of Vietnam to implement the Vietnam-Korea Free Trade Agreement for the period 2016-2018 and the conditions for enjoying such special preferential import tariff rates under this Agreement.

Article 2. Applicability

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

2. Customs authorities, customs officers.

3. Organizations and individuals involved in export and import goods have rights and obligations related thereto.

Article 3. Special Preferential Import Tariff Schedule

Attached to this Decree is the Special Preferential Import Tariff Schedule of Vietnam to implement the Vietnam-Korea Free Trade Agreement for the period 2016-2018 (the special preferential import tariff rate applied hereinafter referred to as VKFTA rate).

1. Column "Commodity Code" and column "Name and Description of Goods" are based on the List of Exported and Imported Goods of Vietnam and classified according to the 8-digit or 10-digit coding level.

2. Column "VKFTA Rate (%)": the rate applicable for each year, applied from September 1, 2016 to December 31, 2016 and from January 1 to December 31 of 2017 and 2018.

3. Column "GIC": goods produced in the Kaesong Industrial Complex within the territory of the Democratic People's Republic of Korea shall apply the VKFTA rate as provided for in Article 6 of this Decree.

Article 4. Conditions for applying the Special Preferential Tariff Rate

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. Are directly transported from South Korea to Vietnam as prescribed by the Ministry of Industry and Trade.

4. Comply with the provisions on the origin of goods in the Vietnam-Korea Free Trade Agreement, having a Certificate of Origin (C/O) form KV issued by the Ministry of Industry and Trade.

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

Goods from the duty-free zones of Vietnam (including processed goods) imported into the domestic market to apply the VKFTA rate must comply with the conditions specified in Clause 1, Article 4 and have a Certificate of Origin (C/O) form VK issued by the Ministry of Industry and Trade.

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

Goods produced in the Kaesong Industrial Complex within the territory of the Democratic People's Republic of Korea (GIC goods) re-imported to South Korea and then exported to Vietnam to be eligible for the VKFTA rate of Vietnam must meet the following conditions:

1. Belonging to items that can be marked with the "GIC" symbol in the "GIC" column of this Tariff Schedule;

2. Imported from South Korea into Vietnam.

3. Are directly transported from South Korea to Vietnam as prescribed by the Ministry of Industry and Trade.

4. Comply with the provisions on the origin of goods under Article 3.5, Chapter 3 on Rules of Origin and Procedures for Issuing Certificates of Origin under the Vietnam-Korea Free Trade Agreement, having a Certificate of Origin (C/O) form KV issued by the Ministry of Industry and Trade.

Article 7. Effective Date

1. This Decree takes effect from September 1, 2016.

2. Repeal Circular No. 201/2015/TT-BTC dated December 16, 2015 of the Minister of Finance issuing the Special Preferential Import Tariff Schedule of Vietnam to implement the Free Trade Agreement between Vietnam and Korea for the period 2015-2018.

Article 8. Responsibility for Implementation

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