April 07, 2020 17:10

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The special preferential import tariffs of Vietnam – Hong Kong (China)

15:58 | 14/01/2020

VCN – The Government has issued Decree No. 07/2020/NĐ-CP on Vietnam’s special preferential import tariffs for the implementation of the ASEAN-Hong Kong (China) Free Trade Agreement in 2019 – 2022 (AHKFTA).

the special preferential import tariffs of vietnam hong kong china
illustration image. Source: Internet

This decree stipulates Vietnam’s special preferential import tariffs for the implementation of the ASEAN-Hong Kong (China) Free Trade Agreement in 2019-2022 and conditions for subjecting preferential import tax rates under this agreement.

Imported goods subject to the AHKFTA tax rate must fully meet the following conditions: 1 - Listed in the Special Preferential Import Tariff promulgated together with this decree; 2 - Being imported from countries which are members of the ASEAN Free Trade Agreement - Hong Kong (China); 3 - Being transported directly from the exporting country in accordance with provisions of the AHKFTA agreement and the regulations of the Ministry of Industry and Trade; 4 - Meeting the rules of origin and obtaining the certificate of origin (C/O) of the AHK form in accordance with provisions of the AHKFTA agreement and the regulations of the Ministry of Industry and Trade.

Issued together with this Decree: Appendix I - Content about converting the AHKFTA tariff from AHTN 2012 to AHTN.

Appendix II - Impact assessment report of the decree promulgating the special preferential import tariff schedule to fulfill Vietnam's commitments in the ASEAN - Hong Kong Free Trade Agreement.

The decree will take effect from February 20, 2020. For customs declarations of imported goods registered from June 11, 2019 to the days before February 20, 2020, if all the conditions for enjoying the special preferential import tax are met as prescribed in this decree and if the tax has been paid at a higher rate, the customs authority will handle the overpaid amount in accordance with the law on tax management.

The impact assessment report of the decree stated that according to ASEAN Secretariat research, Hong Kong's typical economic structure has a high proportion of service sectors (accounting for 95 percent of GDP), with modern infrastructure development, advanced administration, high quality manpower and the presence of leading multinational corporations in banking, finance, insurance, shipping, and aviation. The AHKFTA agreement will contribute to reducing barriers, encouraging trade and investment, therefore, it will help the majority of ASEAN countries (except Laos) increase their GDP.

By Hương Dịu/Thanh Thuy