Circular No. 95/1998/TT-BTC guides the implementation of Decree No. 15/1998/NĐ-CP dated March 12, 1998 of the Government on the issuance of the list of Vietnamese goods for implementing the Agreement on the Trade Preferential Scheme (CEPT) of ASEAN countries for the year 1998.

CIRCULAR

Guidelines for Implementing Decree No. 15/1998/NĐ-CP dated March 12, 1998 of the Government

on issuing the List of Goods of Vietnam to implement the Agreement on the Trade Preferential Scheme (CEPT) of ASEAN countries for 1998

Effective for the year 1998

Pursuant to the Protocol on the Accession of the Socialist Republic of Vietnam to the Agreement on the Trade Preferential Scheme (CEPT) for the implementation of the ASEAN Free Trade Area (AFTA), signed in Bangkok on December 15, 1995;

To implement Decree No. 15/1998/NĐ-CP dated March 12, 1998 of the Government on issuing the List of Goods of Vietnam to implement the Agreement on the Trade Preferential Scheme (CEPT) of ASEAN countries for 1998;

The Ministry of Finance hereby provides guidance as follows:

I. SCOPE OF APPLICATION

Imported goods subject to the preferential tariff rates under the CEPT, as stipulated in Article 1 of Decree No. 15/1998/NĐ-CP dated March 12, 1998 of the Government, must meet the following conditions:

1. They must be items listed in the List of Goods issued together with Decree No. 15/1998/NĐ-CP dated March 12, 1998 of the Government;

2. They must be imported from ASEAN countries. In cases where changes occur in the legal documents of ASEAN countries implementing the CEPT Agreement affecting Vietnam's right to enjoy the preferential tariff rates specified herein, the Ministry of Finance will provide supplementary guidance.

3. They must meet the origin criteria according to the CEPT and have an origin certificate from ASEAN countries;

Organizations and individuals importing goods as specified in point 1 above shall have the obligation to submit to the Customs Authority the Certificate of Origin of ASEAN Goods - Form D issued by the competent authority of the exporting country's government.

Currently, the competent authorities issuing the Certificate of Origin of ASEAN Goods - Form D of ASEAN countries are as follows:

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

In Indonesia, it is the Ministry of Trade;

In Laos, it is the Department of Foreign Trade, Ministry of Trade;

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

In Myanmar, it is the Department of Trade, Ministry of Trade;

In the Philippines, it is the Bureau of Customs;

In Singapore, it is the Board of Trade Development;

In Thailand, it is the Department of PreambleTrade Promotion, Ministry of Trade;

In Vietnam, it is the Ministry of Trade.

The Certificate of Origin of ASEAN Goods - Form D includes four copies, one original copy (Copy No. 1, light purple) and three duplicates (Copies No. 2, 3, 4, orange).

The original copy and duplicate No. 3 shall be handed over by the exporter to the importer for presentation to the Customs Authority at the place of importation.

4. Goods shipped directly from an ASEAN exporting country to Vietnam.

Goods transported in accordance with Rule 5 of the Origin Regulations for the CEPT Agreement (Annex 1) of the Certificate of Origin Regulations for ASEAN Goods of Vietnam, issued together with Decision No. 416/TM-ĐB dated May 13, 1996 of the Ministry of Trade, shall be considered as goods shipped directly from an ASEAN exporting country to Vietnam.

II. TARIFF SCHEDULE

The import tariffs applicable to goods imported under the preferential tariff rates of the CEPT according to the conditions set out in Part I of this Circular are those rates specified in the List of Goods issued together with Decree No. 15/1998/NĐ-CP dated March 12, 1998 of the Government. In case imported goods do not meet all the conditions set out in Part I of this Circular, the general import tariff rates currently in force in Vietnam shall apply.

Any amendments or supplements to the List of Goods and tariff rates of the general import tariff schedule currently in force, as decided by the Ministry of Finance, shall be handled for goods imported under the preferential tariff rates of the CEPT specified in the List of Goods issued together with Decree No. 15/1998/NĐ-CP dated March 12, 1998 of the Government as follows:

If such amendments or supplements result in lower tariff rates than the preferential tariff rates of the CEPT, then the general import tariff rates shall apply;

For other cases, the rates specified in the List of Goods issued together with Decree No. 15/1998/NĐ-CP dated March 12, 1998 of the Government shall apply.

III. VERIFICATION OF CERTIFICATE OF ORIGIN

In case there is doubt about the authenticity and accuracy of the Certificate of Origin of ASEAN Goods - Form D, the Customs Authority has the right to:

Request a recheck of the Certificate of Origin of ASEAN Goods - Form D. The Customs Authority will send a request to the issuing authority of the exporting country and ask for confirmation.

Suspend the application of the preferential tariff rates of the CEPT specified in the List of Goods issued together with Decree No. 15/1998/NĐ-CP dated March 12, 1998 of the Government, and apply the general import tariff rates currently in force.

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

While awaiting the results of the recheck, the procedures for releasing the goods shall continue if these goods are not prohibited or restricted imports under current regulations.

When the Customs Authority has sufficient evidence proving that the goods indeed originate from ASEAN, the difference between the import tariff paid according to the general import tariff schedule and the preferential tariff rate of the CEPT specified in the List of Goods issued together with Decree No. 15/1998/NĐ-CP dated March 12, 1998 of the Government shall be refunded by the Customs Authority to the importer.

The rules for recognizing goods as originating from ASEAN countries are stipulated in the Origin Regulations for the CEPT Agreement (Annex 1) of the Certificate of Origin Regulations for ASEAN Goods of Vietnam, issued together with Decision No. 416/TM-ĐB dated May 13, 1996 of the Ministry of Trade and the CEPT Origin Regulations for Textiles and Textile Products (which will be issued together with a separate Decision by the Ministry of Trade).

IV. OTHER PROVISIONS

Provisions on the basis for calculating tax; tax collection and payment regimes, accounting for tax revenue, reporting on tax collection results; exemption and reduction regimes for import taxes; refund, recovery of tax, and handling of violations shall be implemented in accordance with the provisions of the Export Tax Law, Import Tax Law, and current guiding documents.

V. IMPLEMENTATION

This Circular takes effect from January 1, 1998, and applies to all import cases from ASEAN countries where the import declaration is registered with the Customs Authority from January 1, 1998.

For cases eligible for preferential tariff rates under the CEPT according to the effectiveness of Decree No. 15/1998/NĐ-CP dated March 12, 1998 of the Government, but which have been taxed at the general import tariff rate, the Customs Authority will review the files and refund the difference (if any) between the amount of import tax collected at the general import tariff rate and the preferential CEPT rate to the importer.

This Circular replaces Circular No. 16 TC/TCT dated March 5, 1996, and Circular No. 13 TC/TCT dated March 28, 1997, of the Ministry of Finance, guiding the implementation of Decree No. 91/CP dated December 18, 1995, and Decree No. 82/CP dated December 13, 1996, of the Government promulgating the list of goods for implementing the Agreement on the Common Effective Preferential Tariff (CEPT) of ASEAN countries for the years 1996 and 1997.

In the course of implementation, if there are difficulties or obstacles, it is recommended that units and agencies promptly report to the Ministry of Finance for research and supplementary guidance to ensure appropriateness./.