Decree No. 125/2022/ND-CP

DECREE

ON THE SPECIAL PREFERENTIAL IMPORT TARIFF OF VIETNAM FOR THE IMPLEMENTATION OF THE VIETNAM - KOREA FREE TRADE AGREEMENT FOR THE 2022 - 2027 PERIOD

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law amending and supplementing a number of articles of the Law on Organization of the Government and the Law on Organization of Local Government dated November 22, 2019;

Pursuant to the Law on Export and Import Duties dated April 6, 2016;

Pursuant to the Law on Customs dated June 23, 2014;

Pursuant to the Law on Treaties dated April 9, 2016;

In order to implement the Vietnam - Korea Free Trade Agreement, effective from December 20, 2015;

At the proposal of the Minister of Finance;

The Government promulgates this Decree on the Special Preferential Import Tariff of Vietnam for the implementation of the Vietnam - Korea Free Trade Agreement for the 2022 - 2027 period.

Article 1. Scope of regulation

This Decree provides for the special preferential import duty rates of Vietnam for the implementation of the Vietnam - Korea Free Trade Agreement for the 2022 - 2027 period, and the conditions for eligibility for the special preferential import duty rates under this Agreement.

Article 2. Subjects of application

1. Taxpayers as prescribed by the Law on Export and Import Duties.

2. Customs authorities and customs officers.

3. Organizations and individuals having rights and obligations related to exported and imported goods.

Article 3. Special preferential import tariff

1. Promulgated together with this Decree is the Special Preferential Import Tariff of Vietnam (the special preferential import duty rates applied hereinafter referred to as VKFTA rates) for the implementation of the Vietnam - Korea Free Trade Agreement for the 2022 - 2027 period.

2. The "Commodity code" column and the "Description of goods" column in the Special Preferential Import Tariff promulgated together with this Decree are formulated on the basis of Vietnam's List of Exported and Imported Goods and detailed at the 8-digit or 10-digit code level.

In case Vietnam's List of Exported and Imported Goods is amended or supplemented, the customs declarant shall declare the description and commodity code according to the amended or supplemented List of Exported and Imported Goods and apply the duty rate of the amended or supplemented commodity code specified in the Special Preferential Import Tariff promulgated together with this Decree.

3. The "VKFTA rate (%)" column: The duty rate applicable for different periods, comprising:

a) 2022: The duty rate applicable from December 30, 2022 to December 31, 2022;

b) 2023: The duty rate applicable from January 1, 2023 to December 31, 2023;

c) 2024: The duty rate applicable from January 1, 2024 to December 31, 2024;

d) 2025: The duty rate applicable from January 1, 2025 to December 31, 2025;

dd) 2026: The duty rate applicable from January 1, 2026 to December 31, 2026;

e) 2027: The duty rate applicable from January 1, 2027 to December 31, 2027.

4. The symbol "*": Imported goods not eligible for the VKFTA rate at the corresponding time.

5. The "GIC" column: goods manufactured in the Gaeseong Industrial Complex within the territory of the Democratic People's Republic of Korea are eligible for the VKFTA rate as prescribed in Article 6 of this Decree.

6. For imported goods subject to tariff quotas, comprising certain items under headings 04.07, 17.01, 24.01, 25.01, the in-quota special preferential import duty rate is the rate specified in the Special Preferential Import Tariff promulgated together with this Decree; the list and annual import tariff quota quantities shall comply with the regulations of the Ministry of Industry and Trade, and the out-of-quota import duty rate shall apply according to the Export Tariff, the Preferential Import Tariff, the List of goods and the absolute duty rates, mixed duties, and out-of-quota import duties issued by the Government at the time of importation.

Article 4. Conditions for application of the special preferential import duty rate

Imported goods eligible for the VKFTA rate must fully satisfy the following conditions:

1. Being included in the Special Preferential Import Tariff promulgated together with this Decree.

2. Being imported from the Republic of Korea into Vietnam.

3. Satisfying the regulations on origin of goods (including the regulations on direct transport), and having a Certificate of Origin (C/O) form KV or documents certifying the origin of goods, in accordance with the Vietnam - Korea Free Trade Agreement and current provisions of law.

Article 5. Goods from non-tariff zones of Vietnam

Goods from non-tariff zones of Vietnam imported into the domestic market are eligible for the VKFTA rate provided they satisfy the condition specified in Clause 1, Article 4 of this Decree and have a Certificate of Origin (C/O) form VK or documents certifying the origin of goods, in accordance with the Vietnam - Korea Free Trade Agreement and current provisions of law.

Article 6. Goods manufactured in the Gaeseong Industrial Complex within the territory of the Democratic People's Republic of Korea

Goods manufactured in the Gaeseong Industrial Complex within the territory of the Democratic People's Republic of Korea (GIC goods), in order to be eligible for the VKFTA rate of Vietnam, must fully satisfy the following conditions:

1. Being among the items marked with the symbol "GIC" in the "GIC" column of the Tariff promulgated together with this Decree.

2. Being imported from the Republic of Korea into Vietnam.

3. Satisfying the regulations on origin of goods under Article 3.5, Chapter 3 on Rules of Origin and Origin Certification Procedures of the Vietnam - Korea Free Trade Agreement, the regulations on direct transport, and having a Certificate of Origin (C/O) form KV or documents certifying the origin of goods, in accordance with the Vietnam - Korea Free Trade Agreement and current provisions of law.

Article 7. Effect

1. This Decree takes effect from the date of its signing.

2. Decree No. 149/2017/ND-CP dated December 26, 2017 of the Government promulgating the Special Preferential Import Tariff of Vietnam for the implementation of the Vietnam - Korea Free Trade Agreement for the 2018 - 2022 period ceases to be effective from the effective date of this Decree.

Article 8. Responsibility for implementation

Ministers, Heads of ministerial-level agencies, Heads of Government-attached agencies, Chairpersons of the People's Committees of provinces and centrally-run cities, and related organizations and individuals shall be responsible for implementing this Decree.