Decree No. 149/2017/ND-CP on the Preferential Import Tariff Schedule for Special Treatment of Vietnam to Implement the Vietnam-Korea Free Trade Agreement for the period 2018-2022.

DECREE

Tariff Schedule for Special Preferential Import Tax Rates of Vietnam

to implement the Vietnam-Korea Free Trade Agreementphase 2018

during 2018- 2022

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 International Treaties dated April 9, 2016;

To implement the Vietnam-Korea Free Trade Agreement which became effective from December 20, 2015; The Government promulgates this Decree on the Special Preferential Import Tariff Schedule of Vietnam for implementing the Vietnam-Korea Free Trade Agreement during the period 2018-2022.

At the proposal of the Minister of Finance;

This Decree stipulates the rates of special preferential import tariffs of Vietnam for implementing the Vietnam-Korea Free Trade Agreement during the period 2018-2022 and the conditions for enjoying such special preferential import tariff rates under the Agreement. đ1. Taxpayers as prescribed by the Law on Export Duties and Import Duties.

Article 1. Scope of Regulation

This Decree annexes the Special Preferential Import Tariff Schedule of Vietnam for implementing the Vietnam-Korea Free Trade Agreement during the period 2018-2022 (the special preferential import tariff rate hereinafter referred to as the VKFTA rate).

Article 2. Applicability

1. The notes and general rules for interpreting the classification of goods shall be implemented based on the Vietnamese Goods Classification List according to the Harmonized System of Description and Coding of Goods of the World Customs Organization.

2. Customs authorities, customs officers.

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

Article 3. Special Preferential Import Tariff Schedule

2. The columns "Goods Code" and "Description of Goods" are established based on the Vietnamese Goods Classification List and detailed according to the 8-digit or 10-digit coding level.

a) 01/01/2018 - 31/12/2018: The rate applicable from January 1, 2018 to December 31, 2018;

b) 01/01/2019 - 31/12/2019: The rate applicable from January 1, 2019 to December 31, 2019;

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

c) 01/01/2020 - 31/12/2020: The rate applicable from January 1, 2020 to December 31, 2020;

d) 01/01/2021 - 31/12/2021: The rate applicable from January 1, 2021 to December 31, 2021;

đ) 01/01/2022 - 31/12/2022: The rate applicable from January 1, 2022 to December 31, 2022.

5. Column "GIC": Goods produced at the Kaicheng Industrial Zone located 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.

6. For imported goods subject to quota duties, the special preferential import tariff rate applicable to the quantity of goods imported within the quota is detailed in the Special Preferential Import Tariff Schedule of Vietnam for implementing the Vietnam-Korea Free Trade Agreement during the period 2018-2022 issued with this Decree. The import tariff rate outside the quota shall be applied in accordance with the regulations of the Government at the time of importation. The annual quota volume for imported goods is regulated by the Ministry of Industry and Trade.

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

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

4. Complying with the provisions on the origin of goods under the Vietnam-Korea Free Trade Agreement, having a Certificate of Origin (C/O) model KV, in accordance with the current laws.

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.

Goods from the Vietnamese duty-free zone (including processed goods) imported into the domestic market to be subject to the VKFTA rate must comply with the conditions stipulated in Clause 1, Article 4 of this Decree and have a Certificate of Origin (C/O) model VK, in accordance with the current laws.

4. Complying with the provisions on the origin of goods under Article 3.5, Chapter 3 on Rules of Origin and Issuance Procedures under the Vietnam-Korea Free Trade Agreement, having a Certificate of Origin (C/O) model KV, in accordance with the current laws.

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

2. Repeals Decree No. 131/2016/NĐ-CP dated September 1, 2016 of the Government promulgating the Special Preferential Import Tariff Schedule of Vietnam for implementing the Vietnam-Korea Free Trade Agreement during the period 2016-2018.

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.

Goods from the Vietnamese duty-free zone (including processed goods) imported into the domestic market to be subject to the VKFTA rate must comply with the conditions stipulated in Clause 1, Article 4 of this Decree and have a Certificate of Origin (C/O) model VK, in accordance with the current laws.

Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairmen of provincial and municipal People's Committees directly under the Central Government, and relevant organizations and individuals are responsible for enforcing this Decree./.

Article 7. Effective Date

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

2. Abolish Decree No. 131/2016/NĐ-CP dated September 1, 2016 issued by the Government on the Special Preferential Tariff Schedule of Vietnam for implementing the Vietnam-Korea Free Trade Agreement period 2016-2018.

Article 8. Responsibility for Implementation

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