This Decree prescribes Vietnam's particularly preferential import tax rates for the implementation of the ASEAN-Hong Kong and China Free Trade Agreement between 2019 and 2022 and conditions for enjoying preferential import tax rates specifically under this Agreement.
Accordingly, imported goods eligible for the AHKFTA tax rate must fully meet the following conditions: On the Special Preferential Import Tariff promulgated together with this Decree; be imported from countries which are members of ASEAN - Hong Kong, China Free Trade Agreement; be transported directly from the exporting country in accordance with the AHKFTA Agreement and the regulations of the Ministry of Industry and Trade; meet the rules of origin and have the certificate of origin (C/O) of the AHK form in accordance with the provisions of the AHKFTA Agreement and the regulations of the Ministry of Industry and Trade.
Issued together with the Decree is the Impact Assessment Report of the Decree promulgating special preferential import tax schedules to fulfill Vietnam's commitments in ASEAN - Hong Kong Free Trade Agreement.
According to the impact assessment report of the ASEAN Secretariat and theresearch, the specific economic structure of Hong Kong has a high proportion ofthe service sector (accounting for 95% of GDP), developing infrastructure modern, advanced administration, high quality man power and the presence of leading multinational corporations in the fields of banking, finance, insurance,shipping, aviation ... AHKFTA will contribute to reducing barriers, encouraging trade and investment, thus helping the majority of ASEAN countries (exceptLaos) to increase GDP.
Therefore, cooperation with Hong Kong within the frame work of AHKFTA can bring positive effects to Vietnam's economic development; support the implementationof Vietnam's economic restructuring strategy and goals of industrialization and modernization.
Up to now, Vietnam's agricultural exports to Hong Kong are not high, mainly seafood, some vegetables and rice. It is expected that implementation with in the framework of AHKFTA will further promote the export of agricultural, fishery and processed foods from Vietnam to Hong Kong market in the near future. Regarding imports, the tariff reductions under the AHKFTA Agreement contribute to the diversification of imports. The AHKFTA Agreement also enhances opportunities to attract investment from Hong Kong into Vietnam aswell as opportunities to access international markets for Vietnamese goods andservices.
The Decree takes effect from February 20, 2020. For customs declarations ofimported goods registered from June 11, 2019 to before February 20, 2020, if all the conditions for enjoying the special preferential import tax are met asprescribed in This Decree and if the tax has been paid at a higher rate, the customs office will handle the overpaid amount in accordance with the law on tax administration.