Decree No. 157/2017/NĐ-CP on the Special Preferential Tariff Schedule of Vietnam for Implementing the ASEAN-Korea Free Trade Agreement (AKFTA) for the period 2018-2022

DECREE

Tariff Schedule for Import Preferential Tax of Vietnam
to Implement the ASEAN-Korea Trade in Goods Agreement
for the Period 2018-2022

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

At the proposal of the Minister of Finance;

The Government promulgates this Decree on the Tariff Schedule for Import Preferential Tax of Vietnam to implement the ASEAN-Korea Trade in Goods Agreement for the period 2018-2022. 2018 - 2022.

Article 1. Scope of Regulation

This Decree stipulates preferential import tax rates to implement the ASEAN-Korea Trade in Goods Agreement under the ASEAN-Korea Comprehensive Economic Partnership Agreement for the period 2018-2022 and the conditions for enjoying such preferential import tax 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 with rights and obligations related to exported and imported goods.

Article 3. Special Preferential Import Tariff Schedule

This Decree annexes the Tariff Schedule for Import Preferential Tax of Vietnam to implement the ASEAN-Korea Trade in Goods Agreement for the period 2018-2022 (the preferential import tax rate hereinafter referred to as AKFTA rate).

1. Notes and general rules explaining the classification of goods are implemented based on the Vietnamese Export and Import Goods Classification List, which is based on the Harmonized System of Description and Coding of Goods of the World Customs Organization.

2. The "Goods Code" column and the "Goods Description" column are established based on the Vietnamese Export and Import Goods Classification List and detailed according to the 8-digit or 10-digit code level.

3. The "AKFTA Rate (%)" column: The rate applicable each year, applied from January 1, 2018 to December 31, 2022.

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

5. The "Non-Beneficiary Countries" column: Goods imported from countries that may have country name symbols (as specified in Clause 2, Article 4 of this Decree) shall not apply the AKFTA rate prescribed in this Decree.

6. The "GIC" column: Goods produced in the Kaesong Industrial Complex within the territory of North Korea shall apply the AKFTA rate as prescribed in Article 3 of this Decree.

7. For goods subject to tariff quotas, the preferential import tax rate applicable to the quantity of goods imported within the quota is detailed in the Tariff Schedule for Import Preferential Tax of Vietnam to implement the ASEAN-Korea Trade in Goods Agreement for the period 2018-2022 annexed to this Decree. The import tax rate outside the quota shall be applied according to 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.

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, symbol BN;

b) Kingdom of Cambodia, code KH;

c) Republic of Indonesia, symbol ID;

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

d) Malaysia, symbol MY;

e) Union of Myanmar, code MM;

g) Republic of the Philippines, symbol PH;

h) Republic of Singapore, code SG;

i) Kingdom of Thailand, code TH;

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

l) Socialist Republic of Vietnam (Goods from duty-free zones imported into the domestic market), symbol VN.

3. Directly transported from the exporting country as specified in Clause 2, Article 4 of this Decree into Vietnam as prescribed by the Ministry of Industry and Trade.

4. Complying with the provisions on the origin of goods in the ASEAN-Korea Trade in Goods Agreement, having a Certificate of Origin (C/O) model AK, as prescribed by current laws.

Article 5. Goods produced at the Khai Thanh Industrial Zone 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 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. Are directly transported from South Korea to Vietnam as prescribed by the Ministry of Industry and Trade.

4. Comply with the origin requirements for goods under the ASEAN-South Korea Free Trade Agreement (AKFTA) Rule 6, having a Certificate of Origin (C/O) Form AK with the phrase "Rule 6" printed in box number 8, issued by the authorized agency responsible for issuing C/O Form AK in South Korea, in accordance with current laws.

Article 6. Effectiveness

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

2. Repeals Decree No. 130/2016/NĐ-CP dated September 1, 2016 of the Government on the issuance of the Special Preferential Tariff Schedule of Vietnam to implement the ASEAN-South Korea Free Trade Agreement for the period 2016-2018.

Article 7. Responsibility for Implementation

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