Circular No. 16/2004/TT-BTC guides the implementation of the Early Harvest Program (EHP) under the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and China, applicable to goods imported from countries participating in the EHP and export processing enterprises in Vietnam. The Circular stipulates preferential EHP tariff rates and requirements for origin certification.

CIRCULAR

Guidelines for implementing Decree No. 99/2004/NĐ-CP dated February 25, 2004 of the Government on issuing the List of Goods and Import Tariff Rates of Vietnam to implement the Early Harvest Program under the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and China

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Implementing Article 6 of the Early Harvest Program (hereinafter referred to as EHP) of the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and China (hereinafter referred to as the Framework Agreement) signed in Phnom Penh, Cambodia, November 4, 2002;

Enforcing Decree No. 99/2004/NĐ-CP dated February 25, 2004 of the Government on issuing the List of Goods and Import Tariff Rates of Vietnam for the years 2004-2008 to implement the EHP of the Framework Agreement;

The Ministry of Finance hereby provides guidance as follows:

I. Scope of Application

1. Imported goods from ASEAN countries and China subject to preferential import tariff rates for the EHP, issued together with Decree No. 99/2004/NĐ-CP dated February 25, 2004 of the Government must meet the following conditions:

(i) Included in the List of Goods and Import Tariff Rates of Vietnam participating in the EHP, issued together with Decree No. 99/2004/NĐ-CP dated February 25, 2004 of the Government;

(ii) Imported into Vietnam from ASEAN member countries and China that have signed the Framework Agreement and joined the EHP, including the following countries:

- Brunei Darussalam (hereinafter referred to as Brunei);

- Kingdom of Cambodia (hereinafter referred to as Cambodia);

- Republic of Indonesia (hereinafter referred to as Indonesia);

- Lao People's Democratic Republic (hereinafter referred to as Laos);

- Malaysia;

- Union of Myanmar (hereinafter referred to as Myanmar);

- Republic of Singapore (hereinafter referred to as Singapore);

- Kingdom of Thailand (hereinafter referred to as Thailand);

- People's Republic of China (hereinafter referred to as China).

The Philippines (hereinafter referred to as the Philippines), although a member of ASEAN that has signed the Framework Agreement, has not yet committed to participate in the EHP. Therefore, goods included in the List of Goods and Import Tariff Rates of Vietnam implementing the EHP, issued together with Decree No. 99/2004/NĐ-CP dated February 25, 2004 of the Government, imported into Vietnam with origin from the Philippines will not be entitled to preferential import tariff rates for the EHP. After the Philippines makes a notification committing to join the EHP, the Ministry of Finance will issue supplementary guidelines.

(iii) Directly transported to Vietnam from a participating EHP country and satisfying the ASEAN-China origin requirements, having obtained an ASEAN-China Certificate of Origin, Form E (as stipulated in Part III of this Circular) according to Decision No. 1727/2003/QĐ-BTM dated December 12, 2003 of the Minister of Trade.

2. Goods of export processing enterprises in Vietnam, when sold in the domestic market, must meet the following conditions to apply the preferential import tariff rate for the EHP:

(i) Included in the List of Goods and Import Tariff Rates of Vietnam participating in the EHP, issued together with Decree No. 99/2004/NĐ-CP dated February 25, 2004 of the Government;

(ii) Satisfying the ASEAN-China origin requirements, confirmed by an ASEAN-China Certificate of Origin, Form E issued by the Ministry of Trade or an authorized agency thereof.

II. Preferential import tariff rate for the EHP

1. The level of preferential import tariff applicable to imported goods eligible for preferential tariff rates under the EHP as stipulated in Part I of this Circular is the EHP tariff rate for each year, corresponding to each column of the EHP tariff rate of that year, as specified in the List of Goods and Import Tariff Rates of Vietnam for implementing the EHP, issued together with Decree No. 99/2004/NĐ-CP dated February 25, 2004 of the Government (hereinafter referred to as the preferential EHP tariff rate). The preferential EHP tariff rate for each year is automatically applied from January 1 to December 31 of that year, starting from 2004.

2. For imported goods from ASEAN countries and goods of export processing enterprises in Vietnam sold in the domestic market, the importer has the right to choose the lowest preferential import tariff rate at the time of importation according to the preferential tariff programs that Vietnam has committed to if they meet the applicable conditions, including:

(i) Preferential import tariff rate for the EHP;

(ii) Preferential import tariff rate under the General Preferential Tariff Agreement for implementing the ASEAN Free Trade Area;

(iii) Preferential import tariff rate - Most-Favored-Nation (MFN) rate;

(iv) Other preferential import tariff rates that Vietnam has committed bilaterally with an ASEAN member country (if any).

3. For imported goods from China, the importer has the right to choose the lowest preferential import tariff rate at the time of importation according to the preferential tariff programs that Vietnam has committed to if they meet the applicable conditions, including:

(i) Preferential import tariff rate for the EHP;

(ii) Preferential import tariff rate - MFN rate;

((iii) Other preferential import tariff rates that Vietnam has committed bilaterally with China (if any).

4. In cases where changes occur in the legal documents of ASEAN countries and China issued for implementing the EHP affecting Vietnam's entitlement to special preferential import tariff rates as stipulated in Part I of this Circular, the Ministry of Finance will provide appropriate guidance for each specific case.

III. ASEAN-China Certificate of Origin

1. Rules for recognizing goods originating from ASEAN-China are stipulated in the Origin Regulations for the EHP issued together with Decision No. 1727/2003/QĐ-BTM dated December 12, 2003 of the Minister of Trade.

2. The Certificate of Origin must bear a signature and be stamped with an official seal matching the authorized signature and stamp model of the competent authority issuing the ASEAN-China Certificate of Origin of ASEAN and China member countries participating in the EHP, including the following authorities:

(i) In Brunei, the Ministry of Industry and Resources or an authorized agency;

(ii) In Cambodia, the Ministry of Commerce or an authorized agency;

(iii) In Indonesia, the Ministry of Trade and Industry or an authorized agency;

(iv) In Laos, the Ministry of Commerce or an authorized agency;

(v) In Malaysia, the Ministry of International Trade and Industry or an authorized agency;

(vi) In Myanmar, it is the Ministry of Commerce or an authorized agency;

(vii) In Singapore, it is the Customs Authority or an authorized agency;

(viii) In Thailand, it is the Ministry of Commerce or an authorized agency;

(ix) In China, it is the Ministry of Commerce or an authorized agency;

(x) In Vietnam, it is the Ministry of Trade or agencies authorized by the Ministry of Trade;

The signature and stamp on the Certificate of Origin Form E must correspond to the sample signature and stamp notified by the competent authorities of the ASEAN member countries and China;

4. In case of doubt regarding the authenticity and accuracy of the Certificate of Origin Form E, the Customs Authority has the right:

(i) To request a re-examination of the ASEAN-China Certificate of Origin, Form E. The Customs Authority will send a request to the issuing authority of the exporting country for confirmation;

(ii) To suspend the application of the preferential tariff rate under the EPC and temporarily collect taxes at the applicable preferential or ordinary import tariff rates;

(iii) To request the importer to provide additional documentation (if available) to prove that the goods originate from ASEAN and China within the latest period of not more than one year;

(iv) During the waiting period for the re-examination results, continue to process the release of goods according to the general import procedures;

(iv) When sufficient documentation proves that the goods originate from ASEAN-China, the Customs Authority shall be responsible for processing the refund to the importer of the difference between the temporarily collected tax at the applicable preferential or ordinary import tariff rates and the tax calculated at the preferential tariff rate under the EPC;

IV. Other Provisions

1. In cases where the commercial invoice is issued by a third party other than the exporter, the imported goods may still be subject to the preferential tariff rate under the EPC if they meet all conditions stipulated in this Circular;

2. Regulations concerning the basis for taxation, tax collection and payment procedures, tax exemption and reduction, tax refund procedures, violation handling, and other provisions shall be implemented in accordance with the provisions of the Law on Export Duties and Import Duties and current guiding documents;

V. Implementation

This Circular takes effect fifteen days after its publication in the Official Gazette and applies to import declarations submitted to customs authorities from January 1, 2004;

During the implementation of this Circular, if units encounter difficulties or obstacles, they are advised to promptly report to the Ministry of Finance for supplementary guidance to ensure compliance./.