Decree No. 24/2017/ND-CP dated March 14, 2017, prescribing the special preferential import duty rates to implement the Bilateral Trade Promotion Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Kingdom of Cambodia in 2016

DECREE

Pursuant to the June 19, 2015 Law on Organization of the Government;

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

Pursuant to the April 9, 2016 Law on Treaties;

In furtherance of the Bilateral Trade Promotion Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Kingdom of Cambodia, which was concluded on October 26, 2016;

At the proposal of the Minister of Finance;

The Government promulgates the Decree prescribing the special preferential import duty rates to implement the Bilateral Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Kingdom of Cambodia in 2016.

Article 1. Scope of regulation

This Decree prescribes the special preferential import duty rates to implement the Bilateral Trade Promotion Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Kingdom of Cambodia which was concluded in Hanoi on October 26, 2016 (below referred to as the 2016 Vietnam-Cambodia Trade Promotion Agreement), and conditions for enjoyment of the special preferential import duty rates under the 2016 Vietnam-Cambodia Trade Promotion Agreement.

Article 2. Subjects of application

1. Taxpayers as defined in the Law on Import Duty and Export Duty.

2. Customs offices and officers.

3. Organizations and individuals that have rights and obligations relating to imports originating from the Kingdom of Cambodia.

Article 3. List of imports eligible for the duty rate of 0%; list of tariff quota-based imports originating from the Kingdom of Cambodia; and list of pairs of border gates permitted for customs clearance under the 2016 Vietnam-Cambodia Trade Promotion Agreement

To promulgate together with this Decree:

1. Appendix I - List of imports originating from the Kingdom of Cambodia which are eligible for the special preferential import duty rate of 0%.

2. Appendix II - List of tariff quota-based imports originating from the Kingdom of Cambodia.

3. Appendix III - List of pairs of border gates permitted for customs clearance of the commodity items provided in the 2016 Vietnam-Cambodia Trade Promotion Agreement.

Article 4. Conditions for imports to be eligible for the special preferential import duty rate of 0%

Imports originating from the Kingdom of Cambodia which are on the list of commodity items provided in Appendix I to this Decree are eligible for the special preferential import duty rate of 0% if satisfying the following conditions:

1. Having a certificate of origin, form S (C/O, form S) granted by a competent authority of the Kingdom of Cambodia.

2. Undergoing customs clearance through pairs of border gates provided in Appendix III to this Decree.

Particularly, rice and dried tobacco leaves are eligible for the special preferential import duty rate of 0% under Article 5 of this Decree.

Article 5. Import quotas of rice and dried tobacco leaves under the 2016 Vietnam-Cambodia Trade Promotion Agreement

1. Rice and dried tobacco leaves specified in Appendix I, which satisfy the conditions prescribed in Clauses 1 and 2, Article 4 of this Decree and the Ministry of Industry and Trade’s regulations on import within the 2016 and 2017 tariff quotas, are eligible for the special preferential import duty rate of 0% for the volumes imported within the import quotas specified in Appendix II to this Decree.

2. For rice: In case rice is imported in excess of the quota specified in Appendix II to this Decree (below referred to as over-quota imported volume), the over-quota imported volume is eligible for the ATIGA special preferential import duty rate (if fully satisfying the conditions prescribed in the Government’s Decree No. 129/2016/ND-CP of September 1, 2016, on Vietnam’s Special Preferential Import Tariff to implement the ASEAN Trade in Goods Agreement during 2016-2018), or the preferential import duty rate (MFN duty rate) prescribed in the Government’s Decree No. 122/2016/ND-CP of September 1, 2016, on the Export Tariff, the Preferential Import Tariff and the list of commodity items and their specific duty rates, combined duty rates and out-of-quota duty rates (below referred to as Decree No. 122/2016/ND-CP).

3. For dried tobacco leaves:

a/ In case the volume of imported dried tobacco leaves exceeds the quota specified in Appendix II to this Decree, but is still within its total quota of the country and satisfies the conditions prescribed in Vietnamese’s legal documents on tariff quotas, the over-quota imported volume is eligible for the MFN duty rate prescribed in Decree No. 122/2016/ND-CP;

b/ In case the over-quota imported volume mentioned at Point a of this Clause is beyond the total quota of the country, it is eligible for the out-of-quota import duty rate for dried tobacco leaves prescribed in Decree No. 122/2016/ND-CP.

Article 6. Agricultural goods

1. Unprocessed agricultural goods (including also rice and dried tobacco leaves) planted in Cambodia with investment by Vietnamese enterprises for import into Vietnam must comply with the current law on import duty and export duty. The volumes of unprocessed rice and tobacco leaves specified in this Clause shall not be included in the quotas specified in Appendix II to this Decree.

2. Agricultural commodity items (including also rice and dried tobacco leaves) originating from Cambodia which are imported by Vietnamese enterprises into Vietnam for re-export to other markets must comply with the temporary import for re-export mechanism of the Government of the Socialist Republic of Vietnam and regional and international agreements to which the two countries are contracting parties. The volumes of rice and dried tobacco leaves specified in this Clause which are imported for re-export or for production or export processing shall not be included in the quotas specified in Appendix II to this Decree.

Article 7. Organization of implementation

1. This Decree takes effect from the date of its signing through December 31, 2017.

2. Tax administration agencies shall settle over-paid tax amounts under the current regulations for importers who already paid the higher duty rates and registered customs declarations of the commodity items prescribed in Appendix I to this Decree from October 26, 2016, to before the effective date of this Decree, and fully satisfy the conditions for enjoyment of the special preferential import duty rates prescribed in this Decree.

3. In the course of implementation, if relevant legal documents which are referred to in this Decree are amended, supplemented or replaced, the amending, supplementing or replacing documents shall prevail.

4. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related organizations and individuals shall implement this Decree.-

* The Appendices to this Decree are not translated.