Circular No. 64/2003/TT-BTC provides guidelines on the implementation of Decree No. 78/2003/ND-CP dated July 1, 2003 of the Government regarding the issuance of the list of goods and tax rates of Vietnam for the implementation of the Agreement on Common Effective Preferential Tariff (CEPT) of ASEAN countries for the period 2003-2006 (Content Attached).

 CIRCULAR

Guidelines for implementing Decree No. 78/2003/NĐ-CP dated July 1, 2003 of the Government on issuing the list of goods and tariff rates of Vietnam to implement the Agreement on Trade Preferential Tariffs (CEPT)
of the Association of Southeast Asian Nations (ASEAN) for the years 2003-2006

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), signed in Bangkok on December 15, 1995;

Implementing Decree No. 78/2003/NĐ-CP dated July 1, 2003 of the Government on issuing the list of goods and tariff rates of Vietnam to implement the CEPT/AFTA Agreement for the years 2003-2006;

I/ SCOPE OF APPLICATION

Goods imported to be subject to the preferential tariff rate under the CEPT Agreement, as stipulated in Article 1 of Decree No. 78/2003/NĐ-CP dated July 1, 2003 of the Government, must meet the following conditions:

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.

2. They must be imported from ASEAN member countries into Vietnam, including the following countries:

- The Republic of the Philippines;

- The Republic of Singapore; and

- Brunei Darussalam;

- Kingdom of Cambodia;

- Republic of Indonesia;

- Lao People's Democratic Republic;

- Malaysia;

- 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;

II/ CUSTOMS DUTY RATES APPLIED

1. The customs duty rate applied to imported goods eligible for the CEPT preferential tariff rate as provided in Part I of this Circular is the CEPT tariff rate for each year, starting from 2003, and will be automatically applied from January 1 of each subsequent year corresponding to the CEPT tariff rate column for each respective year, as specified in the list of goods and tariff rates of Vietnam to implement the CEPT/AFTA Agreement, issued together with Decree No. 78/2003/NĐ-CP dated July 1, 2003 of the Government (hereinafter referred to as the CEPT preferential tariff rate).

2. If the current applicable Most-Favored-Nation (MFN) customs duty rate for a product as stipulated in the Import Tariff Schedule is adjusted to a lower rate than the CEPT preferential tariff rate, then the customs duty rate applied to such product will be the MFN rate.

When the MFN rate stipulated in the Import Tariff Schedule for such product is adjusted to a higher rate than the CEPT preferential tariff rate, the customs duty rate applied will be the CEPT preferential tariff rate.

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 and the conditions for applying the customs duty rate based on the domestic content ratio according to current regulations, the enterprise will apply the lower of the two tariff rates.

When applying the customs duty rate based on the domestic content ratio, enterprises shall not apply the CEPT preferential tariff rate or vice versa.

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 apply the special preferential tariff rate as stipulated in Part I, the Ministry of Finance will provide appropriate guidance for each specific case.

III/ CERTIFICATE OF ORIGIN AND VERIFICATION OF THE CERTIFICATE OF ORIGIN

1. The rules for goods to be recognized as originating from ASEAN countries are stipulated in the Rules of Origin for the CEPT/AFTA Agreement (Annexes 1, 3, and 5) of the ASEAN Certificate of Origin Regulations of Vietnam, issued together with Decisions No. 416/TM-ĐB dated May 13, 1996, No. 0878/1998/QĐ-BTM dated July 30, 1998, No. 1000/1998/QĐ-BTM dated September 3, 1998, No. 0034/2000/QĐ-BTM dated January 10, 2000, No. 0492/2000/QĐ-BTM dated March 20, 2000, No. 1448/2001/QĐ-BTM dated December 25, 2001, No. 0478/2002/QĐ-BTM dated April 26, 2002, No. 1062/2002/QĐ-BTM dated September 4, 2002, No. 1382/2002/QĐ-BTM dated November 6, 2002, and No. 0468/2003/QĐ-BTM dated April 23, 2003 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 of the following ASEAN member countries for issuing the ASEAN Certificate of Origin - Form D:

- In Brunei Darussalam, the Ministry of Industry and Resources;

- In the Republic of Indonesia, the Ministry of Trade and Industry;

- 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 Vietnam, the Ministry of Trade and Industrial Management Zones authorized by the Ministry of Trade.

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.

- When sufficient documentation proves that the goods are indeed of ASEAN origin, the Customs Authority is responsible for processing the refund procedures to reimburse the importer the difference between the amount of tax temporarily collected at the rate specified in the current Import Tariff Schedule or the general tariff schedule and the amount of tax calculated at the CEPT preferential tariff rate.

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 there is sufficient documentation proving that the goods indeed originate from ASEAN, the Customs Authority shall proceed with the procedures to refund to the importer the difference between the amount of provisional import tax collected under the Preferential Tariff or the ordinary tariff currently in force and the amount of tax calculated at the preferential CEPT rate.

IV/ OTHER PROVISIONS

In the case where the commercial invoice is issued by a third party that is not the exporter, imported goods into Vietnam shall still be subject to the preferential CEPT tariff rate if they meet all the conditions stipulated in this Circular.

The provisions regarding tax base determination, 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 the current guiding documents.

V/ IMPLEMENTATION

This Circular takes effect fifteen days from the date of publication in the Official Gazette, replacing Circular No. 47/2002/TT-BTC dated May 28, 2002 of the Ministry of Finance guiding the implementation of Decree No. 21/2002/NĐ-CP dated February 28, 2002 and Decree No. 53/2002/NĐ-CP dated May 13, 2003 of the Government promulgating the List of Goods and Tariff Rates of Vietnam for implementing the CEPT/AFTA Agreement for the year 2002 and applicable to import declarations submitted to customs authorities from July 1, 2003.

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