Conditions for Applying AHKFTA Tax Rates for the Period 2019 - 2022

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Imported goods eligible for the AHKFTA tariff rate must meet the following conditions:

Firstly, they must be included in the Special Preferential Import Tariff Schedule issued together with Decree 07/2020/ND-CP.

Secondly, they must be imported from member countries of the ASEAN - Hong Kong, China Free Trade Agreement, including the following countries and territories:

- Brunei Darussalam;- Kingdom of Cambodia;- Republic of Indonesia;- Lao People's Democratic Republic;- Malaysia;- Republic of the Union of Myanmar;- Republic of the Philippines;- Republic of Singapore;- Kingdom of Thailand;- Hong Kong Special Administrative Region of the People's Republic of China;- Socialist Republic of Vietnam (including goods imported from non-tariff zones into the domestic market).

Thirdly, they must be directly transported from the exporting country mentioned in clause 2 of this Article as per the provisions of the AHKFTA Agreement and the regulations of the Ministry of Industry and Trade, specifically:

- Goods are transported directly from the member exporting country to the member importing country; or

- Goods are transported through one or more other member countries or through a non-member country and meet the following conditions:

- Goods transit is necessary for geographical reasons or transport requirements;- Goods do not engage in trade or consumption in that transit country;- Goods do not undergo any processing or transformation other than unloading and reloading or activities necessary to preserve the goods in good condition.

Fourthly, they must comply with the rules of origin and have a Certificate of Origin (C/O) Form AHK in accordance with the AHKFTA Agreement and the regulations of the Ministry of Industry and Trade.

Details can be found in Decree 07/2020/ND-CP, effective from February 20, 2020.

Le Hai

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