The Ministry of Finance is proposing amendments to Vietnam’s special preferential import tariff schedule implementing the ASEAN – Korea Trade in Goods Agreement.
The Ministry of Finance is seeking comments on the draft decree amending and supplementing several articles of Decree 119/2022/ND-CP (Decree 119) on promulgating Vietnam’s special preferential import tariff schedule implementing the ASEAN – Korea Trade in Goods Agreement (AKFTA Agreement) for the 2022-2027 period.
>>> Learn more about the AKFTA Agreement
According to the Ministry of Finance, Decree 119 has properly implemented the roadmap for reducing Vietnam’s special preferential import tariffs under the AKFTA Agreement and the List of Import and Export Goods, contributing to supporting customs statistics work, ensuring consistency and synchronization, creating a transparent business environment on tax rates for businesses and customs agencies.
Framework Agreement on Comprehensive Economic Cooperation between ASEAN and the Republic of Korea (AKFTA Agreement)
However, the 3rd Protocol amending the AKFTA Agreement was signed by ASEAN countries and Korea on November 22, 2015. At the same time, on September 22, 2023, the Government issued Resolution 150/NQ-CP, which clearly states:
“Article 1. Approve the 3rd Protocol amending the ASEAN – Korea Trade in Goods Agreement.
Article 2. The Ministry of Industry and Trade shall disseminate the above Protocol implementation plan to relevant Ministries and agencies; take the lead and coordinate with the Ministry of Finance and relevant agencies to organize the implementation of the plan.
Article 3. The Ministry of Foreign Affairs shall carry out necessary procedures as prescribed, specifying the effective date and implementation obligations of Vietnam’s commitments regarding the above Protocol starting from the date Vietnam notifies the completion of domestic procedures”.
Proposal to amend Vietnam’s special preferential import tariff schedule implementing the AKFTA Agreement
According to the implementation plan for the 3rd Protocol amending the AKFTA Agreement, the Ministry of Finance is responsible for drafting and submitting to the Government for promulgation a decree amending and supplementing Decree 119. The purpose is to issue a new special preferential import tariff schedule for Vietnam to implement tariff commitments in the AKFTA Agreement.
According to the Ministry of Finance, during the implementation process, Decree 119 has been stably applied without any problems arising. Therefore, this draft amendment and supplementation decree focuses only on amending and supplementing relevant provisions to implement tariff commitments in the 3rd Protocol of the AKFTA Agreement.
The Ministry of Finance is seeking comments on the decree amending and supplementing several articles of Decree 119
Firstly, promulgate Vietnam’s special preferential import tariff schedule (special preferential import duty rates applied as follows shall be referred to as AKFTA rates) to implement the ASEAN – Korea Trade in Goods Agreement for the 2023-2027 period.
Secondly, column “AKFTA rate (%)”: duty rates applied from November 28, 2023 through December 31, 2027.
Thirdly, for imported goods subject to tariff quotas including some items of groups 04.07, 17.01, 24.01, and 25.01, the AKFTA rate within the quota is the tax rate specified in the special preferential import tariff schedule promulgated together with this Decree, the AKFTA rate outside the quota is the tax rate specified in the List of goods subject to special preferential import duty rates outside tariff quotas issued together with this Decree. The import tax rate outside the quota for goods not included in the above List shall be applied according to the Export Tariff Schedule, Preferential Import Tariff Schedule, List of Goods and Absolute Duty Rates, Mixed Duty Rates, Import Duty Rates Outside Tariff Quotas of the Government at the time of import. The list and annual import tariff quota volumes shall comply with the Ministry of Industry and Trade’s regulations.
Amending the special preferential import tariff schedule of the AKFTA Agreement is an important step in implementing international commitments and promoting trade between Vietnam and Korea. Businesses and related units need to keep up with information, take advantage of preferences and appropriate solutions to get ahead of integration opportunities and challenges. See other articles in our Logistics News section.
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