Circular No. 35/2000/TT-BTC guiding the implementation of Decree No. 09/2000/NĐ-CP dated March 21, 2000 of the Government on issuing the list of goods and tariff rates of Vietnam for implementing the Common Effective Preferential Tariff (CEPT) Agreement of ASEAN countries for the year 2000.

CIRCULAR

Guidelines for implementing Decree No. 09/2000/NĐ-CP dated March 21, 2000 of the Government on issuing the List of Goods and Tariff Rates of Vietnam to implement the Agreement on Trade Preferential Measures with FTA Effect (CEPT) for the year 2000.

Implementing the Protocol on the accession of the Socialist Republic of Vietnam to the Agreement on the Trade Preferential Measures with FTA Effect (CEPT) to realize the ASEAN Free Trade Area (AFTA) (hereinafter referred to as the CEPT/AFTA Agreement), signed in Bangkok on December 15, 1995;

Implementing Decree No. 09/2000/NĐ-CP dated March 21, 2000 of the Government on issuing the List of Goods and Tariff Rates of Vietnam to implement the CEPT/AFTA Agreement for the year 2000;

The Ministry of Finance hereby provides guidance as follows:

I. Scope of Application

Imported goods subject to preferential tariff rates under CEPT, as stipulated in Article 1 of Decree No. 09/2000/NĐ-CP dated March 21, 2000 of the Government, must meet the following conditions:

1. Goods listed in the List of Goods and Tariff Rates of Vietnam to implement the CEPT/AFTA Agreement for the year 2000 issued together with Decree No. 09/2000/NĐ-CP dated March 21, 2000 of the Government;

2. Goods imported from ASEAN member countries into Vietnam, including the following countries:

Brunei Darussalam;

Kingdom of Cambodia;

Republic of Indonesia;

Lao People's Democratic Republic;

Malaysia;

Union of Myanmar;

Republic of the Philippines;

Republic of Singapore; and

Kingdom of Thailand;

3. Goods that ensure the origin criteria according to CEPT and have their origin certified from ASEAN countries (as specified in Part III of this Circular); and

4. Goods directly transferred from an exporting country that is a member of ASEAN to Vietnam.

II. Tax Rates Applied

1. The preferential CEPT tax rate applied to imported goods subject to preferential tariff rates under CEPT as stipulated in Part I of this Circular is the tax rate specified in the List of Goods and Tariff Rates of Vietnam to implement the CEPT/AFTA Agreement for the year 2000 issued together with Decree No. 09/2000/NĐ-CP dated March 21, 2000 of the Government.

2. In case during the year 2000, the Most-Favored-Nation (MFN) tax rate of a good specified in the Import Tariff Schedule is adjusted lower than the tax rate specified in the List of Goods and Tariff Rates of Vietnam to implement the CEPT/AFTA Agreement for the year 2000 issued together with Decree No. 09/2000/NĐ-CP dated March 21, 2000 of the Government, then the preferential CEPT tax rate applied to that good will be the lower MFN tax rate.

When the MFN tax rate specified in the Import Tariff Schedule of that good is subsequently adjusted higher than the tax rate specified in the List of Goods and Tariff Rates of Vietnam to implement the CEPT/AFTA Agreement for the year 2000 issued together with Decree No. 09/2000/NĐ-CP dated March 21, 2000 of the Government, the preferential CEPT tax rate applied will be the CEPT tax rate issued pursuant to Decree No. 09/NĐ-CP.

3. In case there are changes in the legal documents of ASEAN countries issued to implement the CEPT/AFTA Agreement affecting the right to enjoy the preferential tax rate of Vietnam as stipulated in Part I, the Ministry of Finance will provide guidance suitable for each specific case.

- To request a recheck of C/O Model D. The Customs Authority will send a request to the Ministry of Trade of the Kingdom of Thailand or the issuing authority to seek confirmation.

1. Rules for goods to be recognized as originating from ASEAN countries are prescribed in the Origin Regulations for the CEPT/AFTA Agreement (Annexes 1, 3, and 5) of the ASEAN Certificate of Origin Regulations of Vietnam, issued together with Decision No. 416/TM-ĐB dated May 13, 1996, Decision No. 0878/1998/QĐ-BTM dated July 30, 1998, Decision No. 1000/1998/QĐ-BTM dated September 3, 1998, Decision No. 0034/2000/QĐ-BTM dated January 10, 2000, and Decision No. 0492/2000/QĐ-BTM dated March 20, 2000 of the Ministry of Trade.

2. The Certificate of Origin must bear the signature and seal consistent with the official signature and seal model issued by the Competent Authorities issuing the ASEAN Certificate of Origin Model D of the following ASEAN member countries:

In Brunei Darussalam, it is the Ministry of Industry and Resources;

In the Kingdom of Cambodia, it is the Ministry of Commerce;

In the Republic of Indonesia, it is the Ministry of Trade and Industry;

In the Lao People's Democratic Republic, it is the Ministry of Commerce;

In Malaysia, it is the Ministry of Foreign Trade and Industry;

In the Union of Myanmar, it is the Ministry of Commerce;

In the Republic of the Philippines, it is the Department of Finance;

In the Republic of Singapore, it is the Trade Development Bureau;

In the Kingdom of Thailand, it is the Ministry of Commerce; and

In Vietnam, it is the Ministry of Trade and Industrial Management Zones authorized by the Ministry of Trade.

3. In case there is doubt about the authenticity and accuracy of the ASEAN Certificate of Origin Model D, the Customs Authority has the right:

To request a recheck of the ASEAN Certificate of Origin Model D. The Customs Authority will send the request to the Competent Authority issuing the certificate of origin of the exporting country to seek confirmation.

To suspend the application of the preferential CEPT tax rate specified in the List of Goods and Tariff Rates of Vietnam to implement the CEPT/AFTA Agreement for the year 2000 issued together with Decree No. 09/2000/NĐ-CP dated March 21, 2000 of the Government and temporarily collect taxes at the rate specified in the Import Tariff Schedule or the general tariff schedule currently in effect.

To request the importer to provide additional documentation (if available) to prove that the goods actually originate from ASEAN countries within the latest period of not more than 01 (one) year.

During the waiting period for the recheck results, continue to process the procedures to release the goods according to the general import regulations.

Once sufficient documentation proves that the goods indeed originate from ASEAN, the Customs Authority is responsible for processing the refund procedures for the importer of the difference between the amount temporarily collected according to the Import Tariff Schedule or the general tariff schedule currently in effect and the amount calculated according to the preferential CEPT tax rate specified in the List of Goods and Tariff Rates of Vietnam to implement the CEPT/AFTA Agreement for the year 2000 issued together with Decree No. 09/2000/NĐ-CP dated March 21, 2000 of the Government.

IV. Other Provisions

Provisions regarding tax calculation basis, tax collection and payment system, tax exemption and reduction, tax refund, tax recovery, 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 from the date on which Decree No. 09/2000/NĐ-CP dated March 21, 2000 of the Government on the list of goods and tariff rates of Vietnam to implement the CEPT/AFTA Agreement for the year 2000 comes into force (i.e., from January 1, 2000) and shall apply to all import cases from ASEAN countries where the import declaration is submitted to the Customs Authority from the said date onwards.

For cases eligible for preferential tariff rates under Decree No. 09/2000/NĐ-CP dated March 21, 2000 of the Government, but which have been taxed at the preferential CEPT tariff rate for 1999 (under Decree No. 14/1999/NĐ-CP dated March 23, 1999) or at the tariff rate of the current preferential or ordinary import tariff schedule, the Customs Authority will review the files and refund the difference in tax paid to the importer if the applied tariff rate was higher than the rate specified in the list of goods and tariff rates of Vietnam to implement the CEPT/AFTA Agreement for the year 2000 issued with Decree No. 09/2000/NĐ-CP dated March 21, 2000 of the Government, or collect the difference in tax from the importer if the applied tariff rate was lower than the rate specified in the list of goods and tariff rates of Vietnam to implement the CEPT/AFTA Agreement for the year 2000 issued with Decree No. 09/2000/NĐ-CP dated March 21, 2000 of the Government.

This Circular replaces Circular No. 41/1999/TT-BTC dated April 20, 1999 of the Ministry of Finance guiding the implementation of Decree No. 14/1999/NĐ-CP dated March 23, 1999 on the list of goods and tariff rates of Vietnam to implement the CEPT/AFTA Agreement for the year 1999 and Circular No. 53/1999/TT-BTC dated May 8, 1999 of the Ministry of Finance amending and supplementing Circular No. 41/1999/TT-BTC.

In case of difficulties during implementation, please report them promptly so that the Ministry of Finance can provide supplementary guidance accordingly./.