Circular No. 47/2002/TT-BTC provides guidelines on the implementation of Decree No. 21/2001/ND-CP dated February 28, 2002; and the amended and supplemented Decree No. 53/2002/ND-CP dated May 13, 2002 of the Government regarding "the issuance of the list of goods and tax rates of Vietnam to implement the Common Effective Preferential Tariff Agreement (CEPT) of ASEAN countries for the year 2002" (Content Attached).

CIRCULAR

Guidelines for implementing Decree No. 21/2002/NĐ-CP dated February 28, 2002; and Decree No. 53/2002/NĐ-CP dated May 13, 2002 amending and supplementing Decree No. 21/2002/NĐ-CP dated February 28, 2002 of the Government on the issuance of the List of Goods and Tariff Rates of Vietnam to implement the Agreement on Trade Preferential Tariffs (CEPT)

Implementing the Protocol on the accession of the Socialist Republic of Vietnam to the Agreement on the Trade Liberalization Program (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. 21/2002/NĐ-CP dated February 28, 2002 of the Government on the issuance of the List of Goods and Tariff Rates of Vietnam to implement the CEPT/AFTA Agreement for the year 2002; and Decree No. 53/2002/NĐ-CP dated May 13, 2002 of the Government amending and supplementing Decree No. 21/2002/NĐ-CP dated February 28, 2002 of the Government on the issuance of the List of Goods and Tariff Rates of Vietnam to implement the CEPT/AFTA Agreement for the year 2002;

The Ministry of Finance hereby provides guidance as follows:

1. They must be included in the list of goods and tariff rates of Vietnam to implement the CEPT/AFTA Agreement for the years 2003-2006 issued together with Decree No. 78/2003/NĐ-CP dated July 1, 2003 of the Government, and simultaneously included in the list of goods and tariff rates implementing the CEPT/AFTA Agreement for each corresponding year of the ASEAN member country from which the imported goods originate.

Imported goods subject to the CEPT preferential tariff rate as stipulated in Article 1 of Decree No. 21/2002/NĐ-CP dated February 28, 2002 of the Government must meet the following conditions:

1. Included in the List of Goods and Tariff Rates of Vietnam to implement the CEPT/AFTA Agreement for the year 2002 issued together with Decree No. 21/2002/NĐ-CP dated February 28, 2002 of the Government; and Decree No. 53/2002/NĐ-CP dated May 13, 2002 amending and supplementing Decree No. 21/2002/NĐ-CP;

- The Republic of Singapore; and

- Brunei Darussalam;

- Kingdom of Cambodia;

- Republic of Indonesia;

- Lao People's Democratic Republic;

- Union of Myanmar;

3. They must satisfy the ASEAN origin requirements, confirmed by the ASEAN Certificate of Origin - Form D (as specified in Part III of this Circular).

4. They must be transported directly from the exporting country that is a member of ASEAN to Vietnam, as stipulated in Decision No. 416/TM-ĐB dated May 13, 1996 of the Ministry of Trade.

- Kingdom of Thailand;

3. Satisfying the ASEAN origin requirement, confirmed by the ASEAN Certificate of Origin Model D (as specified in Part III of this Circular); and

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

II/ IMPORT DUTY RATES APPLIED:

1. The import duty rate applied to imported goods eligible for the CEPT preferential tariff rate as stipulated in Part I of this Circular is the CEPT tariff rate specified in the List of Goods and Tariff Rates of Vietnam to implement the CEPT/AFTA Agreement for the year 2002 issued together with Decree No. 21/2002/NĐ-CP dated February 28, 2002 of the Government (hereinafter referred to as the CEPT preferential tariff rate 2002).

For the specific four categories of goods including cheese (group 0406), coffee (group 0901), vehicle engines (groups 8407, 8408), the import duty rate applied to imported goods eligible for the CEPT preferential tariff rate is the CEPT tariff rate specified in the amended and supplemented list issued together with Decree No. 53/2002/NĐ-CP dated May 13, 2002 of the Government amending and supplementing Decree No. 21/2002/NĐ-CP.

2. In cases where the Most-Favored-Nation (MFN) tariff rate of a product specified in the current Preferential Import Tariff Schedule for the year 2002 is adjusted to be lower than the CEPT preferential tariff rate 2002, the applicable import duty rate for such product will be the lower MFN rate.

When the MFN tariff rate specified in the current Preferential Import Tariff Schedule for such product is adjusted to be higher than the CEPT preferential tariff rate 2002, the applicable import duty rate will be the CEPT preferential tariff rate 2002.

3. In cases where imported goods by enterprises for production and assembly of mechanical-electrical-electronic products meet both the conditions for applying the CEPT preferential tariff rate 2002 and the conditions for applying the import tariff rate based on the level of domestic content according to current regulations, the enterprise will apply the lower of the two tariff rates.

4. In cases where changes occur in the legal documents of ASEAN countries issued to implement the CEPT/AFTA Agreement affecting Vietnam's right to the CEPT preferential tariff rate stipulated in Part I, the Ministry of Finance will provide appropriate guidance for each specific case.

III/ CERTIFICATE OF ORIGIN AND INSPECTION OF THE CERTIFICATE OF ORIGIN

1. Rules for recognizing goods as originating from ASEAN countries are stipulated 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, Decision No. 0492/2000/QĐ-BTM dated March 20, 2000, and Decision No. 1448/2001/QĐ-BTM dated December 25, 2001 of the Ministry of Trade.

2. The Certificate of Origin must bear a signature and stamp consistent with the official signature and stamp model issued by the competent authorities issuing the ASEAN Certificate of Origin Model D of the following ASEAN member countries:

- In Malaysia, the Ministry of International Trade and Industry;

- In the Kingdom of Cambodia, the Ministry of Commerce;

- In the Republic of Singapore, the Customs Authority;

- In the Lao People's Democratic Republic, the Ministry of Trade;

- In the Kingdom of Thailand, the Ministry of Commerce; and

- In Myanmar, the Ministry of Commerce;

- In the Philippines, the Department of Finance;

- In the Republic of Singapore, the Trade Development Council;

3. In cases of doubt regarding the authenticity and accuracy of the ASEAN Certificate of Origin - Form D, the Customs Authority has the right:

- To request a recheck of the ASEAN Certificate of Origin - Form D. The Customs Authority will send a request to the competent authority issuing the certificate of origin of the exporting country to confirm.

- To suspend the application of the CEPT preferential tariff rate and temporarily collect taxes at the rate specified in the current Import Tariff Schedule or the general tariff schedule.

- To request the importer to provide additional documentation (if available) to prove that the goods indeed originate from ASEAN countries within the latest period of one year.

- Suspension of application of the CEPT preferential tariff rate 2002 and temporary collection at the rate specified in the current Preferential Import Tariff Schedule or the general tariff schedule.

IV/ OTHER PROVISIONS

- During the waiting period for the re-inspection results, the procedures for releasing the goods according to the general import regulations shall continue.

When sufficient documentation proves that the goods indeed originate from ASEAN, the Customs authority shall proceed with procedures to refund the importer the difference between the temporarily collected amount under the current Preferential Import Tariff Schedule or the general tariff schedule and the amount calculated under the CEPT preferential tariff rate 2002.

IV/ OTHER PROVISIONS

Provisions regarding tax calculation basis, tax collection and payment system, tax exemption and reduction, tax refund, violation handling, and other provisions shall be implemented in accordance with the provisions of the Law on Export Tax and Import Tax and current guiding documents.

V/ IMPLEMENTATION

This Circular takes effect from January 1, 2002 and replaces Circular No. 52/2001/TT-BTC dated July 2, 2001 of the Ministry of Finance guiding the implementation of Decree No. 28/2001/NĐ-CP dated June 6, 2001 on the issuance of the List of Goods and Tariff Rates of Vietnam to implement the CEPT/AFTA Agreement for the year 2001.

For cases eligible for the preferential tax rates under the CEPT in effect pursuant to Decree No. 21/2002/NĐ-CP dated February 28, 2002, and Decree No. 53/2002/NĐ-CP dated May 13, 2002, which have already been taxed at the preferential CEPT rate for 2001 (under Decree No. 28/2001/NĐ-CP dated June 6, 2001) or the current preferential or ordinary import tariff rates, the Customs authority shall examine the documentation and refund the importer the difference in import tax without additional collection where there is a discrepancy between the applied tax rate and the 2002 CEPT preferential tax rate.

During implementation, if there are difficulties or obstacles, please report them promptly so that the Ministry of Finance can provide supplementary guidance as appropriate.