Circular No. 163/2011/TT-BTC on the issuance of the Special Preferential Import Tariff Schedule of Vietnam for the implementation of the ASEAN-Korea Free Trade Area (AKFTA) period 2012-2014.

CIRCULAR

Regarding the issuance of the Special Preferential Import Tariff Schedule of Vietnam for the implementation of

ASEAN-Korea Free Trade Area for the period 2012-2014

____________________________

Pursuant to the Law on Export Duties and Import Duties No. 45/2005/QH11 dated June 14, 2005;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 87/2010/NĐ-CP dated August 13, 2010 of the Government detailing the implementation of the Law on Export Tax and Import Tax No. 45/2005/QH11 dated June 14, 2005;

Pursuant to the Framework Agreement on Comprehensive Economic Cooperation between the member states of the Association of Southeast Asian Nations (ASEAN) and the Republic of Korea (hereinafter referred to as Korea), signed on December 13, 2005, in Malaysia, which was approved by the President of the Socialist Republic of Vietnam on April 12, 2006;

Pursuant to the ASEAN-Korea Free Trade Area Goods Agreement under the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and Korea (hereinafter referred to as the ASEAN-Korea Goods Agreement), signed on December 13, 2005, in Malaysia, and on August 24, 2006, in the Philippines;

The Ministry of Finance issues this Circular on the Special Preferential Import Tariff Schedule of Vietnam to implement the ASEAN-Korea Free Trade Area as follows:

Article 1. Attached herewith is the Special Preferential Import Tariff Schedule of Vietnam to implement the ASEAN-Korea Free Trade Area for the period 2012-2014 (the applicable tariff rate is abbreviated as AKFTA rate).

Where:

+ Column "Commodity Code" and column "Description of Goods" are based on the Harmonized System 2012 and classified at the 8-digit level.

+ Column "AKFTA Rate (%)": the applicable rate for each year, applied from January 1 to December 31 of that year, starting from 2012 until the end of 2014.

+ Column "Non-beneficiary Country": goods imported from countries that may have country name symbols (as specified in Clause (2) of Article 2 of this Circular) shall not be subject to the AKFTA rates prescribed in this Circular.

+ Column "GIC": goods produced in the Kaesong Industrial Complex within the territory of North Korea shall apply the AKFTA rate as provided for in Article 3 of this Circular.

Article 2. Imported goods to be eligible for the AKFTA rate must meet the following conditions:

1) They must belong to the Special Preferential Import Tariff Schedule issued together with this Circular;

2) They must be imported into Vietnam from member countries of the ASEAN-Korea Free Trade Area, including the following countries:

3) They must be directly transported from the exporting country as stipulated in Clause (2) of this Article to Vietnam, in accordance with the regulations of the Ministry of Industry and Trade;

4) They must comply with the rules of origin for goods in the ASEAN-Korea Goods Agreement, and have an ASEAN-Korea Certificate of Origin (C/O Model AK) as prescribed by the Ministry of Industry and Trade.

Article 3. Goods produced in the Kaesong Industrial Complex within the territory of North Korea (GIC goods) to be eligible for the AKFTA rate of Vietnam must meet the following conditions:

1) They must belong to the items marked with the "GIC" symbol in Column (6) of this Tariff Schedule;

2) They must be directly imported and transported from Korea to Vietnam in accordance with the regulations of the Ministry of Industry and Trade;

3) They must have a C/O Model AK printed with the phrase "Rule 6" in Box 8, issued by the authorized body for issuing C/O Model AK in Korea, as prescribed by the Ministry of Industry and Trade;

4) They must comply with the rules of origin for goods in the ASEAN-Korea Goods Agreement for goods applying Rule 6 - AKFTA, as prescribed by the Ministry of Industry and Trade.

Article 4. This Circular takes effect from January 1, 2012; it revokes Circular No. 77/2010/TT-BTC dated May 18, 2010, of the Minister of Finance on the issuance of the Special Preferential Import Tariff Schedule of Vietnam to implement the ASEAN-Korea Free Trade Area for the period 2010-2011./.