vietnam trade liberalization: following the...

Vietnam Trade Liberalization: FOLLOWING THE AFTA PROGRAM April 2000 Country Department, Vietnam Poverty Reduction and Economic Management Sector Unit, East Asia and Pacific Region

Duc Minh Pham The World Bank

ACROMYMS AND ABBREVIATIONS AEM - ASEAN Economic Minister AFTA - ASEAN Free Trade Area ASEAN - Association of South East Asian Nations CEPT - Common Effective Preferential Tariffs ESAF - Enhanced Structural Adjustment Facility GATT - General Agreement on Tariffs and Trade GEL - General Exception List HS - Harmonized System IL - Inclusion List IMF - International Monetary Fund MOF - Ministry of Finance NTB - Non-Tariff Barrier PFP - Policy Framework Paper PRGF - Poverty Reduction and Growth Facility PRSP - Poverty Reduction Strategy Paper PTA - Preferential Trading Arrangements QR - Quantitative Restriction SAC - Structural Adjustment Credit SEOM - Senior Economic Officials’ Meeting TEL - Temporary Exclusion List USBTA - US-Vietnam Bilateral Trade Agreement WTO - World Trade Organization

CONTENTS BACKGROUND……………………………………………………………………...1 AFTA REQUIREMENTS, MECHANISM AND PROCEDURES FOR VIETNAM ……………………………………………………………………………2 FINDINGS AND RECOMMENDATIONS………………………………………...6 Annexes Annex 1: Agreement on the Common Effective Preferential Tariff (CEPT)

Scheme for the ASEAN Free Trade Area (AFTA)……………………………………………………………………..8

Annex 2: Protocol for the Accession of the Socialist Republic of Vietnam to the

Agreement on the Common Effective Preferential Tariff Scheme (CEPT) for the ASEAN Free Trade Area (AFTA)……………………………………………………………………14

Annex 3: Vietnam: Proposed Tariff Reduction Schedule during 2001-2006

according to CEPT/AFTA……………………………………………….16 Annex 4: Vietnam: General Exception List as of March 2000…………………...20 Annex 5: Vietnam: Sensitive List as of March 2000………………………………30 Charts and Tables Chart 1: The AFTA Process………………………………………………………....3 Table 1: Vietnam: CEPT Implementation and Plan in the Future………………..4 Table 2: Roadmap for Tariff Reduction and NTB Removal……………………...5

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BACKGROUND 1. Vietnam agreed to participate in ASEAN Free Trade Area (AFTA) since January 1, 1996 after being officially admitted as member of the Association of South East Asian Nations1 (ASEAN) in July 1995. These steps are part of Vietnam's reform efforts and strategy at the end of 1980s and early 1990s to establish a market-oriented and open economy and to effect the country's integration into the international community. To move towards a fully functioning AFTA, ASEAN country members are strategically implementing the critical trade instrument called Common Effective Preferential Tariffs (CEPT)2. The timetable for the program implementation depends, however, on each country member’s conditions: the six original ASEAN members including Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand need to complete CEPT by 2003 while Vietnam must do so by 2006, Laos and Myanmar by 2008, and Cambodia by 2010. AFTA is not only an efficient instrument to create a more attractive environment for the flows of goods, services, and capital among ASEAN countries and to the rest of the world, but also one to help ASEAN country members to enhance their national competitiveness by reducing and phasing out progressively both tariff and non-tariff barriers. Vietnam has seriously and firmly committed itself to the AFTA process, and to its successful implementation, as discussed in details below. 2. Separated from the AFTA process above, the Government of Vietnam has been conducting a series of policy discussions with the World Bank and the International Monetary Fund (IMF), on the assistance program namely the Structural Adjustment Credit (SAC) and Enhanced Structural Adjustment Facility (ESAF)3 during the past 18 months. The vehicle for this discussion is a joint Policy Framework Paper (PFP) that has been drafted and widely discussed between the Bank, the Fund and key policy-related ministries and agencies of Vietnam, under the Steering Committee for Cooperation with the International Financial Institutions, chaired by the First Deputy Prime Minister Nguyen Tan Dung and established in November 1998. Much progress has been achieved in discussing, negotiating, and even partly implementing policy measures listed in the draft Policy Framework Paper, the title of which is recently changed as the Poverty Reduction Strategy Paper (PRSP), especially concerning state enterprise reform, private sector development and banking reform, but several points in the trade reform components remain on the negotiating table.

1 ASEAN was established on August 8, 1967 in Bangkok with the objective to improve economic growth, social progress, and cultural development in the region. Nine years later, the first ASEAN summit was held in Bali in February 1976 and followed by the second summit in Kuala Lumpur in August 1977. (The first two summits did not discuss economic issues). The third summit held in Manila in December 1987 focused primary on economic development. The seventh summit held in Hanoi in December 1998 made entirely efforts to come up with a set of resolutions dealing with regional crisis. 2 See Annex 1: Agreement on the Common Effective Preferential Tariff (CEPT) Scheme for the ASEAN Free Trade Area (AFTA); and Annex 2: Protocol for the Accession of the Socialist Republic of Vietnam to the Agreement on the Common Effective Preferential Tariff (CEPT) Scheme for the ASEAN Free Trade Area (AFTA). 3 Recently, the ESAF is changed as the Poverty Reduction and Growth Facility (PRGF).

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3. Within the trade components, Vietnam basically disagreed with the suggestion by the World Bank and IMF on dual measures to reduce the maximum tariff level to 30 percent and to phase out all non-tariff barriers (NTB) within a three-year period at the beginning of the policy discussion in November 1998. During the mission in September 1999, Vietnam still did not agree with the Bank-fund revised suggestion to focus solely on the removal of all 19 groups of NTB items within the program duration. Currently, the Bank and the Fund suggested a concrete timetable to phase out NTBs for 17 groups of items (out of a total of 19 groups of items) within the three-year time horizon of the program. Vietnam however considers this suggestion still too ambitious as far as the existing conditions in Vietnam are concerned. Vietnam, instead, prefers the AFTA process as a progressive, advantageous, and comprehensive schedule for Vietnam, and proposes the pace of trade liberalization under SAC/PRGF to follow largely the lines set out under AFTA schedule. 4. Given the fact that the SAC/PRGF conditions on trade, the US-Vietnam bilateral trade agreement (USBTA), AFTA, and the WTO process are strongly interrelated, it is useful to look at the trade issues facing Vietnam within this context. This note is an attempt to present in details the AFTA agreement and its mechanism and procedures to understand Vietnam’s commitments to AFTA first of all and then to trace the road map required to actualize/implement these commitments. The note also tries to sketch a comparison between AFTA requirements and its progress up to date and the SAC/PRGF conditions to determine the extent to which the later set of requirements could be accommodated within the AFTA context and its timetables coordinated. AFTA REQUIREMENTS, MECHANISM AND PROCEDURES FOR VIETNAM 5. As of April 2000, Vietnam has about 6,400 items in its tariff schedule. For the AFTA requirements and process as agreed among ASEAN members, Vietnam announced (in a form of a Government decree) on steps needed to fulfill its commitments each year. First, according to AFTA’s principles, as of March 2000 Vietnam announced the classification of goods in four lists: 4,230 items are listed under the inclusion list (IL); 1,800 items under the temporary exclusion list (TEL); 51 items under the sensitive list (SL), and 202 items under the general exception list (GEL). Second, tariffs for items in the inclusion list are to be reduced to 0-5 percent by 2006. Third, quantitative restrictions (QRs) for an item will only be removed if the following conditions are simultaneously met: (i) QR item is fully transferred from TEL to IL; (ii) its tariff falls to 20 percent or less; (iii) the QR items are under both the CEPT lists of exported and imported AEAN countries; (iv) products contain at least 40 percent of the total components originated from ASEAN countries. It means that QR will be removed for an item only if this item fully enjoys CEPT treatment. And finally, all other NTBs will need to be removed five years after QR removal. Some of NTB items may still be included in the GEL and SL as discussed below. 6. Chart 1 illustrates the AFTA process and establishes the basic principles that if one item is transferred from GEL or TEL to IL, it cannot be transferred back to the original lists.

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Chart 1: The AFTA Process

7. Observations on the past and future movements of the tariff items between these lists may be critical to understand the liberalization process of the trade regime in Vietnam within the context of AFTA. If one focuses on the logical process of trade liberalization within the context of AFTA, and considers the process of trade liberalization with appropriate schedules to be in the best interests of Vietnam, then these observations will also help to understand better the stance of the Vietnamese authorities when they discuss the trade reform in the second SAC. 8. Inclusion List (IL): � IL consists of those items whose tariff will be reduced to 0-5 percent after the

completion of CEPT. � Right after signing CEPT, each country has to submit its IL. Vietnam submitted

its first IL in 1996 with 856 items. In 2000, 640 new items were added to the 1999 list bringing the total cumulative number of items in IL to 4,230.

� A proposed road map for tariff reduction during 2001-2006 according to AFTA requirements, as of March 2000, by the Ministry of Finance (MOF) is shown in Annex 3: Vietnam: Proposed Schedule For Tariff Reduction During 2001-2006 According to CEPT/AFTA.

9. Temporary Exclusion List (TEL) � TEL includes items whose tariffs are tentatively kept unchanged and those that are

subject to quantitative restrictions (quota surcharge, licensing restriction, prohibition etc.).

� Items in TEL need to be transferred to IL within a period of five years and by 20 percent total numbers of items each year. Vietnam needs to fully transfer all these items from TEL to IL by 2003.

� In 2000, 640 items have been removed from TEL to include to IL (in 1999, IL consisted of 3590 items). There remains 1,800 items in TEL that will be phased out by 2003. It means that most of NTB items will be phased out by 2003, except for those that are included in GEL and SL.

10. General Exception List (GEL): � GEL contains those items that are not included in any tariff reduction scheme as

they relate to strategic goods, national security, defense, health, cultural and historical heritages, etc.

GEL TEL IL

No

No

No

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� There are 202 tariff items under this list including alcoholic beverages; automobiles; motorbikes and kits; and petroleum products which are under the NTB list of 19 groups of items according to the Bank – Government discussion on SAC. By definition, the above underlined items should not necessarily be included in the GEL. (See Annex 4: Vietnam: General Exception List).

11. Sensitive List (SL) � The sensitive list includes unprocessed agricultural commodities with the deadline

for tariff reduction to 0-5 percent by 2013. � In 2000, this list covers 51 NTB items basically in the restriction form of technical

specification or bans. Sugar is included in this list. (See Annex 5: Vietnam: Sensitive List.)

� SL is subject to be changed according to multilateral negotiation within AFTA country members.

12. Progress in implementation towards AFTA mechanism in Vietnam is shown in Table 1. This table clearly indicates the serious and firm commitment of Vietnam toward the AFTA process as well as its successful implementation. The difference in terms of total number of tariff lines between 1998 and 1999 are 3,043 due to the change in the Vietnam tariff schedule according to the newly issued Law on Export - Import tax that took effect on January 1, 1999. According to this law, total number of tariff lines increased from 3200 to 6,243 (nearly doubled) to fit in with the new eight-digit harmonized system (HS) of the ASEAN.

Table 1: Vietnam: CEPT Implementation and Plan in the Future

Source: MOF and staff estimate. Note: 1) Total number of tariff lines in different lists increased between 1998 and 1999 due to Newly

Issued Law on Export - Import Tax; 2) Figures for period 2001-2003 are preliminary; 3) Numbers of items in GEL and SL would change over time in the future.

13. In terms of quantitative restrictions, among 19 groups of items listed in a suggested NTB phase-out under SAC / PRGF negotiation, 14 groups of items are still under TEL4 which will be fully transferred to IL by 2003, and whose tariff will

4 These 14 groups items include Liquid Soda, Ceramic & Glass Consumer Goods, Plastic Packing, DOP, Ceramic Sanitary Ware, Electric Fan, Bicycle, Fertilizer (which were removed from NTB list in 2000), Ceramic & Granite Tile, Vegetable Oil, Widow Glass, Paper (Newsprint, Writing, and Packaging),Cement and Clinker, Certain Type of Steel.

Number of Items 96' 97' 98' 99' 00' 01' 02' 03'

Inclusion List 856 1496 1996 3590 4230 4830 5430 6030Temporary Exclusion List 2123 1483 983 2440 1800 1200 600 0Sensitive List 26 26 26 51 51 51 51 51General Exceptions List 213 213 213 202 202 202 202 202Total 3218 3218 3218 6283 6283 6283 6283 6283

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ultimately be reduced to 0-5 percent by 2006. Four groups of items5 remain in the GEL. In addition, one group of items6 remains in the sensitive list that will be phased out by 2010. Table 2 shows the schedule for a NTB phase out and tariff reduction by MOF for consultation with line ministries and enterprises. While this schedule has not been approved yet, it suggests a possible way to accommodate the conditions proposed in SAC/PRGF following the AFTA process.

Table 2: Roadmap for Tariff Reduction and NTB Removal (Draft for consultation with line ministries and enterprises)

Source: MOF and staff assumption. 14. The Government completed a road map for the coming yeas until 2006 and summarized this roadmap under a book entitled “Roadmap for realizing tariff reduction in Vietnam according to AFTA” (The Finance Publishing House, MOF,

5 These four groups include Alcoholic Beverages; Automobiles, Motorbikes and kits; and petroleum products, and cover 58 tariff lines coded 2203,2206,2207,2208 (alcoholic beverages); 2710 (petroleum products); 8702,8703 (automobiles); and 8711 (motorcycles) and marked blue in Annex 2. 6 This group covers four items (sugar cane and its products) coded 1701 and marked blue in Annex 3.

Roadmap: Tariff ReductionCEPT/AFTA

Items Current TaxRate

AfterTariff--ication 00 01 02 03 04 05 06

Note

NTB removal on 01/01/20001 Liquid Soda 15 20 - 15 15 10 10 5 5 TEL2 Ceramic & Glass Consumer

Goods50 60 - - - 50 35 10 5 TEL

3 Plastic Packing 30 40 - - 30 20 20 10 5 TEL4 Plasticizer DOP 5 20 - 5 5 5 5 5 5 TEL5 Ceramic Sanitary Ware 50 50 - - - 50 35 20 5 TEL6 Electric Fan 50 50 - - - 50 35 20 5 TEL7 Bicycle 50 60 - - - 50 35 20 5 TEL8 Fertilizer 0 10 - - 0 0 0 0 0 TEL

NTB removal by 20039 Ceramic and Granite Tile 50 50 - - - 50 35 20 5 TEL10 Vegetables Oil 40 - - - - 40 25 10 5 TEL11 Window Glass 40 - - - - 40 25 10 5 TEL12 Paper (Newsprint, Writing

&Packaging)40 20 - - 40 30 20 10 5 TEL

13 Certain Types of Steel 2040

- 2040

2035

1530

1520

1015

1010

55

TEL

14 Cement and Clinker Clinker: 30Cement: 40

- --

--

--

3040

2525

1515

55

TEL

NTB removal after 200315 Alcoholic Beverages 1 100 - - - - - - - - GEL16 Automobiles 2 60 100 - - - - - - - GEL17 Motorbikes and Kits 3 60 - - - - - - - - GEL18 Petroleum Products 0-25 - - - - - - - - GEL19 Sugar, Raw and Refined Raw Sugar: 30

Refined Sugar: 40- -

---

--

--

--

--

--

SEL

Note: Wine will be removed from group of Alcohol products in GEL to include into IL/CEPT.Among group of automobile products, only less-than- 15- seat automobiles are included in GEL.Among group of motorcycle products and kits, only motorcycle with capacity less than 250cc are included in GEL.The first 3 items were planned to be phased-out on 01/01/2001, but in fact, they were phased out on 01/01/2000.

Items #4-#8 were planned to be phased-out on 01/01/2003, but in fact, they were phased out on 01/01/2000.

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February 1998). This work is not available internationally yet but is widely published and discussed among official, academic, and business circles in Vietnam. This book classifies all the tariff lines under the Vietnam’s tariff schedule into four different lists according to CEPT/AFTA, and indicates a clear time-table for transfer of items from IL to TEL, and for tariff reduction to 0-5 percent by 2006 in IL. The book, however, needs to be revised due to change in the tariff schedule for application of new eight-digit HS. FINDINGS AND RECOMMENDATIONS 15. Based on the above presentation, there are several important findings that may be relevant to the SAC/PRGF discussion on trade issues, among many others that will need to be taken into account: � AFTA is the single most important and challenging commitment on trade

liberalization that received approval from the highest level in Vietnam. The process is also consistently considered as widely accepted program for every group of interests of the whole nation. Designing the SAC condition on trade issues based on this process would save enormous lead time for discussion and approval.

� In terms of tariff reduction, AFTA covers a reasonable schedule for tariff

reduction as far as Vietnam conditions are concerned. If Vietnam is able to complete timely the CEPT by 2006, it will be likely leveling the playing field for the players in the domestic and international markets.

� In terms of NTBs, it is appropriate for Vietnam to apply a schedule to phase out

all NTB items in the tentative exclusion list by 2003. This transitional period is acceptable by the Vietnamese authorities given its current macroeconomic stance. The actual gap between AFTA and SAC is the number of NTB items under GEL.

� It is necessary to move as soon as possible towards an eight-digit HS and to

complete a firm tariff schedule based on this HS and the newly amended Law on Export and Import Tax. This task should be considered as the first priority because otherwise any revision in the tariff schedule classification, transfer, reduction, and phase-out may lead to inconsistent commitments and implementation.

� Vietnam needs to announce an overall agenda for the whole detailed AFTA

scheme based on the eight-digit HS which includes a clear classification of all the tariff lines under the Vietnam’s tariff schedule into four different lists according to CEPT/AFTA, a transparent timing for transfer every single items from IL to TEL, and a clear time-table for tariff reduction of all items under IL on a yearly basis until 2006. And this work would closely link with the revision of the book “Roadmap for realizing tariff reduction in Vietnam according to AFTA” published by the MOF in 1998.

� AFTA may be bias towards regionalism and the ASEAN grouping where

favorable conditions accepted and applied within the group may not be applicable

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to the rest of the world. This would lead to the need for a formulation of a longer-term strategy on trade liberalization in Vietnam, taking into account both ASEAN and non-ASEAN processes which include the USBTA, APEC, and WTO.

Based on the above findings, it would be worthwhile to suggest that the conditionality for SAC be a transparent NTB phase - out scheme according to AFTA process which needs to be applicable to non-ASEAN countries as well. Under this AFTA timetable, the six remaining quantitatively restricted items (shown in Table 2) should be phased out by 2003.

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Annex 1: AGREEMENT ON THE COMMON EFFECTIVE PREFERENTIAL TARIFF

(CEPT) SCHEME FOR THE ASEAN FREE TRADE AREA (AFTA) The Governments of Brunei Darussalam, the Republic of Indonesia, Malaysia, the Republic of the Philippines, the Republic of Singapore and the Kingdom of Thailand, Member States of the Association of South East Asian Nations (ASEAN) MINDFUL of the Declaration of ASEAN Concord signed in Bali, Indonesia on 24 February 1976 which provides that Member States shall cooperate in the field of trade in order to promote development and growth of new production and trade; RECALLING that the ASEAN Heads of Government, at their Third Summit Meeting held in Manila on 13-15 December 1987, declared that Member States shall strengthen intra-ASEAN economic cooperation to maximize the realization of the region’s potential in trade and development; NOTING that the Agreement on ASEAN Preferential Trading Arrangements (PTA) signed in Manila on 24 February 1977 provides for the adoption of various instruments on trade liberalization on a preferential basis; ADHERING to the principles, concepts and ideals of the Framework Agreement on Enhancing ASEAN Economic Cooperation signed in Singapore on 28 January 1992; CONVINCED that preferential trading arrangements among ASEAN Member States will act as a stimulus to the strengthening of national and ASEAN economic resilience, and the development of the national economies of Member States by expanding investment and production opportunities, trade, and foreign exchange earnings; DETERMINED to further cooperate in the economic growth of the region by accelerating the liberalization of intra-ASEAN trade and investment with the objective of creating the ASEAN Free Trade Area using the Common Effective Preferential Tariff (CEPT) Scheme; DESIRING to effect improvements on the ASEAN PTA in consonance with ASEAN’s international commitments. HAVE AGREED AS FOLLOWS:

ARTICLE 1 Definition

For the purposes of this Agreement: 1. “CEPT” means the Common Effective preferential Tariff, and it is an agreed effective tariff, preferential to ASEAN, to be applied to goods originating from ASEAN Member States, and which have been identified for inclusion in the CEPT Scheme in accordance with Articles 2 (5) and 3.

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2. “Non-Tariff Barriers” mean measures other than tariffs which effectively prohibit or restrict import or export of products within Member State. 3. “Quantitative restrictions” mean prohibitions or restrictions on trade with other Member States, whether made effective through quotas, license or other measures with equivalent effect, including administrative measures and requirements which restrict trade. 4. “Foreign exchange restrictions” mean measures taken by Member States in the form of restrictions and other administrative procedures in foreign exchange which have the effect of restricting trade. 5. “PTA” means ASEAN preferential Trading Arrangements stipulated in the Agreement signed in Manila on 24 February 1997, and in the Protocol on Improvements on Extension of Tariff Preferences under the ASEAN Preferential Trading Arrangements (PTA), signed in Manila on 15 December 1987. 6. “Exclusion List” means a list containing products that are excluded from the extension of tariff preferences under the CEPT Scheme. 7. “Agricultural products” mean: (a) Agricultural raw materials/unprocessed products covered under Chapters 1-24 of the Harmonized System (HS), and similar agricultural raw materials/unprocessed products in other related HS Heading; and (b) Products which have undergone simple processing with minimal change in form from the original products.

ARTICLE 2 General Provisions

1. All Member States shall participate in the CEPT Scheme. 2. Identification of products to be included in the CEPT Scheme shall be on a sectoral basis, i.e.…, at HS 6-digit level. 3. Exclusions at the HS 8/9 digit level for specific products are permitted for those Member States, which are temporarily not ready to include such products in the CEPT Scheme. For specific products, which are sensitive to a Member States, pursuant to Article 1 (3) of the Framework Agreement on Enhancing ASEAN Economic Cooperation, a Member State may exclude products from the CEPT Scheme, subject to a waiver of any concession herein provided for such products. A review of this Agreement shall be carried out in the eighth year to decide on the final Exclusion List or any amendment to this Agreement. 4. A product shall be deemed to be originating from ASEAN Member States, if at least 40 percent of its content originates from any Member State. 5. All manufactured products, including capital goods, processed agricultural products and those products falling outside the definition of agricultural products, as set out in this Agreement, shall be in the CEPT Scheme. These products shall automatically be subject to the schedule of tariff reduction, as set out in Article 4 of this Agreement. In respect of PTA items, the schedule of tariff reduction provided for in Article 4 of this Agreement shall be applied, taking into account the tariff rate after the application of the existing margin of preference (MOP) as at 31 December 1992.

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6. All products under the PTA which are not transferred to the CEPT Scheme shall continue to enjoy the MOP existing as at 31 December 1992. 7. Member States, whose tariffs for the agreed products are reduced from 20 percent and below to 0-5 percent, even though granted on an MFN basis, shall still enjoy concessions. Member States with tariff rates at MFN rates of 0-5 percent shall be deemed to have satisfied the obligations under this Agreement and shall also enjoy the concessions.

ARTICLE 3 Product Coverage

This Agreement shall apply to all manufactured products, including capital goods, processed agricultural products, and those products falling outside the definition of agricultural products as set out in this Agreement. Agricultural products shall be excluded from the CEPT Scheme.

ARTICLE 4

Schedule of Tariff Reduction 1. Member States agree to the following schedule of effective preferential tariff reductions: (a) The reduction from existing tariff rates to 20 percent shall be done within a time frame of 5-8 years, from 1 January 1993, subject to a program of reduction to be decided by each Member State, which shall be announced at the start of the program. Member States are encouraged to adopt an annual rate of reduction, which shall be (X-20)%/5 or 8, where X equals the existing tariff rates of individual Member States. (b) The subsequent reduction of tariff rates from 20 percent or below shall be done within a time frame of seven years. The rate of reduction shall be at a minimum of 5 percent quantum per reduction. A program of reduction to be decided by each Member State shall be announced at the start of the program. (c) For products with existing tariff rates of 20 percent or below as at 1 January 1993, Member Sates shall decide upon a program of tariff reductions, and announce at the start, the schedule of tariff reductions. Two or more Member States may enter into arrangements for tariff reduction to 0-5 percent on specific products at an accelerated pace to be announced at the start of the program. 2. Subject to Articles 4910 (b) and 4 (1) (c) of this Agreement, products which reach, or are at tariff rates of 20 percent or below, shall automatically enjoy the concessions. 3. The above schedule of tariff reduction shall not prevent Member States from immediately reducing their tariffs to 0-5 percent or following an accelerated schedule of tariff reduction.

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ARTICLE 5 Other Provisions

A. Quantitative Restrictions and Non-Tariff Barriers 1. Member States shall eliminate all quantitative restrictions in respect of products under the CEPT Scheme upon enjoyment of the concessions applicable to those products. 2. Member Sates shall eliminate other non-tariff barriers on a gradual basis within a period of five years after the enjoyment of concessions applicable to those products. B. Foreign Exchange Restrictions Member States shall make exceptions to their foreign exchange restrictions relating to payments for the products under the CEPT Scheme, as well as repatriation of such payments without prejudice to their rights under Article XVIII of the General Agreement on Tariffs and Trade (GATT) and relevant provisions of the Articles of Agreement of the International Monetary Fund (IMF) C. Other Areas of Cooperation Member Sates shall explore further measures on border and non-boarder areas of cooperation to supplement and complement the liberalization of trade. These may include, among others, the harmonization of standards, reciprocal recognition of tests and certification of products, removal of barriers to foreign investment, macroeconomic consultations, rules for fair competition, and promotion of venture capital. D. Maintenance of Concessions Member Sates shall not nullify or impair any of the concessions as agreed upon through the application of methods of customs valuation, any new charges or measures restricting trade, except in cases provided for in this Agreement.

ARTICLE 6

Emergency Measures 1. If, as a result of the implementation of this Agreement, import of a particular product eligible under the CEPT Scheme is increasing in such a manner as to cause or threaten to cause serious injury to sector producing like or directly competitive products in the importing Member States, the importing Member States may, to the extent and for such time as may be necessary to prevent or to remedy such injury, suspend preferences provisionally and without discrimination, subject to Article 6(3) of this Agreement. Such suspension of preferences shall be consistent with the GATT. 2. Without prejudice to existing international obligations, a Member State, which finds it necessary to create or intensify quantitative restrictions or other measures limiting imports with a view to forestalling the threat of or stopping a serous decline of its monetary reserves, shall endeavor to do so in a manner, which safeguards the value of the concessions agreed upon.

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3. Where emergency measures are taken pursuant to the Article, immediate notice of such action shall be give to the Council referred to in Article 7 of this Agreement, and such action may be the subject of consultations as provided for in Article 8 of this Agreement.

ARTICLE 7 Institutional Arrangement

1. The ASEAN Economic Ministers (AEM) shall, for the purposes of this Agreement, establish a ministerial-level Council comprising one nominee from each Member State and the Secretary-General of the ASEAN Secretariat. The ASEAN Secretariat shall provide the support to the ministerial-level Council for supervising, coordinating and reviewing the implementation of this Agreement, and assisting the AEMs in all matters relating thereto. In the performance of its functions, the ministerial-level Council shall also be supported by the Senior Economic Officials’ Meeting (SEOM) 2. Member States which enter into bilateral arrangement on tariff reductions pursuant to Article 4 of this Agreement shall notify all other Member States and the ASEAN Secretariat of such arrangements. 3. The ASEAN Secretariat shall monitor and report to the SEOM on the implementation of the Agreement pursuant to the Article III (2) (8) of the Agreement on the Establishment of the ASEAN Secretariat. Member States shall cooperate with the ASEAN Secretariat in the performance of its duties.

ARTICLE 8 Consultations

1. Member States shall accord adequate opportunity for consultations regarding any representations made by other Member States with respect to any matter affecting the implementation of this Agreement. The Council referred to in Article 7 of this Agreement, may seek guidance from the AEM in respect of any matter for which it has not been possible to find a satisfactory solution during previous consultations. 2. Member States, which consider that any other Member State has not carried out its obligations under this Agreement, resulting in the nullification or impairment of any benefit accruing to them, may, with a view to achieving satisfactory adjustment of the matter, make representations or proposals to the other Member State concerned, which shall give due consideration to the representations or proposals made to it. 3. Any differences between the Member States concerning the interpretation or application of this Agreement shall, as far as possible, be settled amicably between the parties. If such differences cannot be settled amicably, it shall be submitted to the Council referred to in Article 7 of this Agreement, and if necessary, to the AEM.

ARTICLE 9 General Exceptions

Nothing in this Agreement shall prevent any Member State from taking action and adopting measures, which it considers necessary for the protection of its national security, the

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protection of public moral, the protection of human, animal or plant life and health, and the protection of articles of artistic, historic and archaeological value.

ARTICLE 10 Final Provisions

1. The respective Governments of Member States shall undertake the appropriate measures to fulfill the agreed obligations arising from this Agreement. 2. Any amendment to this Agreement shall be made by consensus and shall become effective upon acceptance by all Member States. 3. This Agreement shall be effective upon signing 4. This Agreement shall be deposited with the Secretary-General of the ASEAN Secretariat, who shall likewise promptly furnish a certified copy thereof to each Member State. 5. No reservation shall be made with respect to any of the provisions of this Agreement. In witness whereof the undersigned, being duly authorized thereto by their respective Governments, have signed this Agreement on Common Effective Preferential Tariff (CEPT) Scheme for the ASEAN Free Trade Area (AFTA). Done at Singapore, this 28th day of January, 1992 in a single copy in the English Language. For the Government of Brunei Darussalam

ABDUL RAHMAN TAIB Minister of Industry and Primary Resources

For the Government of The Republic of Indonesia

DR ARIFIN M SIREGAR Minister of Trade

For the Government of Malaysia

RAFIDAH AZIZ Minister of International Trade and Industry

For the Government of The Republic of the Philippines

PETER D.GARRUCHO JR Secretary for Trade and Industry Minister for Trade and Industry

For the Government of the Republic of Singapore

LEE HSIEN LOONG Deputy Prime Minister and

For the Government of The Kingdom of Thailand

AMARET SILA-ON Minister of Commerce

Source: AFTA Reader, ASEAN Secretariat, November 1993.

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Annex 2:

PROTOCOL FOR THE ACCESSION OF THE SOCIALIST REPUBLIC OF VIETNAM TO THE AGREEMENT ON THE COMMON EFFECTIVE

PREFERENTIAL TARIFF SCHEME (CEPT) FOR THE ASEAN FREE TRADE AREA (AFTA)

WHEREAS the Agreement on the Common Effective Preferential Tariff (CEPT) Scheme for the ASEAN Free Trade Area (AFTA) (“the Agreement”) was signed by the Government of Brunei Darussalam, the Republic of Indonesia, Malaysia, the Republic of the Philippines, the Republic of Singapore and the Kingdom of Thailand on 28 January 1992 at the Fourth Summit Meeting held in Singapore, and amended by the Protocol to amend the Agreement on the Common Effective Preferential Tariff (CEPT) Scheme for the ASEAN Free Trade Area (AFTA) (“Protocol”) on 15 December 1995 at the Fifth Summit Meeting held in Bangkok; WHEREAS Article 4 of the Protocol provides that new Members of ASEAN shall accede to the Agreement on terms and conditions, consistent with the Framework Agreement on Enhancing ASEAN Economic Cooperation and the Agreement, and which have been agreed between them and the existing Members of ASEAN; AND WHEREAS the Socialist Republic of Vietnam has become the seventh Member of ASEAN on 28 July 1995, and has agreed to subscribe or accede, as the case may be, to all Declaration, Treaties and Agreements in ASEAN; HAVING REGARD to the results of the negotiations directed towards the accession of the Socialist Republic of Vietnam to the Agreement; AND RECOGNISING that the Agreement adheres to the principles, concepts and ideals of the Framework Agreement on Enhancing ASEAN Economic Cooperation signed in Singapore on 28 January 1992 and the amendments thereof; NOTING the commitments made by Vietnam in the signed letters by H.E. Nguyen Manh Cam, Minister of Foreign Affairs, Socialist Republic of Vietnam, on 28 July 1995 and subsequently by H.E. Le Van Triet, Minister of Trade, Socialist Republic of Vietnam, on 7 September 1995; NOTING FURTHER that Vietnam shall extend, on a reciprocal basis, Most-Favored Nation and National Treatment (on turnover tax, luxury tax, exchange rate determination, foreign exchange control and other measures) to ASEAN Member Countries and to provide relevant information as and when requested; RECOGNISING that Vietnam shall prepare a list for tariff reduction and shall begin tariff reduction effective 1 January 1996 and ending at 0-5 percent tariff rate on 1 January 2006; RECOGNISING FURTHER that Vietnam shall phase in products which are temporarily excluded in five equal installments beginning 1 January 1999 and ending 1 January 2003; and prepare a list of these products for their annual installment; ALSO RECOGNISING that Vietnam shall phase in agricultural products which are temporarily excluded beginning 1 January 2000 and ending 1 January 2006, and prepare a list of these products for their annual installment; AND RECOGNISING that arrangements pertaining to the ASEAN Preferential Trading Agreements (PTA) shall not apply to Vietnam;

15

NOW THEFORE, the Government of the Socialist Republic of Vietnam hereby accedes to the Agreement and upon the entry into force of this Protocol on 1 January 1996, undertakes to immediately observe and carry out its obligations under the Agreement as amended. This Protocol shall be deposited with the Secretary-General of ASEAN, who shall promptly furnish a certified copy thereof to each Member Country. IN WITNESS WHEREOF, the undersigned, being duly authorised thereto by the Government of the Socialist Republic of Vietnam, has signed the Protocol for the Accession of the Socialist Republic of Vietnam to the Agreement on the Common Effective Preferential Tariff Scheme (CEPT) for the ASEAN Free Trade Area (AFTA). DONE at Bangkok, this 15th day of December 1995 in a singly copy in the English Language.

For the Government of the Socialist Republic of Vietnam

(signed)

LE VAN TRIET Minister of Trade

Source: AFTA Reader, ASEAN Secretariat, November 1993.

16

Annex 3: VIETNAM: PROPOSED TARIFF REDUCTION SCHEDULE DURING 2001-2006 ACCORDING TO CEPT/AFTA

Current Tariff

(MFN) HS Code Items '01 '02 '03 '04 '05 '06 Note

100 % 2204, 2205 Wine 80 60 40 20 10 5 6309 Secondhand clothes and garment products 80 60 40 20 10 5

80 % 8704 Up to 5 tone trucks 80 60 40 20 10 5 60 % 8703 Special designed vehicle for snow skiing and golf for up to 9 persons 60 40 20 15 10 5

8704 5-10 tone trucks 60 40 20 15 10 5 50 % 1603, 1604 Water crustacean products 50 35 20 15 10 5

1704, 1806 Some candies 50 35 20 5 1901-1905 Cereal powder, cake and cereal products 50 35 20 15 10 5 Chapter 20 Vegetable products 50 35 20 15 10 5

Chapter 21 Tea, coffee essence, sources 50 35 20 15 10 5 Chapter 22 Mineral water, soft drinks 50 35 20 15 10 5 3303-3307 Perfume, cosmetic and toiletry 50 35 20 15 10 5 3922, 3924 Lavatory seats, plastic dinner set and kitchen articles 50 35 20 15 10 5 4203, 4303-4304 Leather clothes 50 35 20 15 10 5 6307, 6310 Cloths, fiber parts 50 35 20 15 10 5 6401-6405 Gaiter footwear 50 35 20 15 10 5 Chapter 84, 85 Some kind of electric and electronic machinery for house use 50 35 20 15 10 5 9504-9505 Some entertainment instruments 50 35 20 15 10 5

40% 0806 Fresh or dry grape 40 30 20 15 10 5 2104 Soup, n-íc xuýt 40 25 15 5 3605 Match 40 30 20 15 10 5 3918, 3925-3926 Plastic floor coverings and some other similar things 40 30 20 15 10 5 4016 Rubber floor coverings and lined coverings 40 30 20 15 10 5 4202, 4203, 4303 Leather box, suitcases, handbags... and clothes 40 30 20 15 10 5 4421 Other wooden products 40 25 15 5 4802, 4814, 4815 UN-coated paper and paper board: Wall coverings and floor coverings 40 30 20 15 10 5 4803, 4817, 4818, 4820 Toilet paper, tissues; Envelop, postcard; Notebook, book... 40 25 15 5 4909, 4910 Cards, postcards, printed calendar 40 30 20 15 10 5 5007 Silk textile fibers 40 30 20 15 10 5 5208-5212 Cotton textile fibres 40 30 20 10 5 5309-5311 Flax, jute fibres and other vegetable textile fibers 40 30 20 10 5

17

5407, 5408 Artificial and recycled filaments 40 30 20 10 5 5512-5516 Artificial and recycled staple fibres 40 30 20 10 5 Chapter 58 Special textile fibres, lace, embroidering products 40 30 20 15 10 5 6001-6002 Knightly textile fibres 40 30 20 15 10 5 6506-6507 Non-fabric hats and pats thereof 40 30 20 15 10 5 6601-6602 Umbrellas, sunshades, waking sticks ... 40 30 20 15 10 5 6904-6906 Construction bricks, tile, ceramic tubs and pipes 40 30 20 15 10 5 7113-7118 Jewelry, gold and silver manufacturing and other similar products 40 30 20 15 10 5 7324 Iron or steel toiletry things 40 30 20 15 10 5 7418 Copper dinner set, kitchen and toilet assessories and articles thereof 40 30 20 15 10 5 7615 Aluminum dinner set, kitchen and toilet assessories and articles thereof 40 30 20 15 10 5 8407, 8408, 8414, 8422 Vehicle engines, special fans, disk washing machines 40 30 20 15 10 5 8509, 8516, 8520, 8539 Electric mechanical equipment for domestic purpose, electric heaters, dryers

and other appliances, tape recorders, kinds of not special designed electric lamps

40 30 20 15 10 5

Chapter 91 Watches and clocks 40 30 20 15 10 5 Chapter 94 Furniture (beds, shaves, tables and chairs ...), furnishings and lamps 40 30 20 15 10 5 Chapter 96 Some other items 40 30 20 15 10 5

30% 0402-0404, 0406 Some milk products such as yogurts, cheeses... 30 20 10 5 1806 Cocoa powder and products processed from cocoas in block or pieces shapes 30 20 10 5 1904 Cereal foods 30 20 20 15 10 5 3208-3210 Some paints 30 20 20 15 10 5 3405-3406 Polishing waxes for shoes, leather and wooden things, scouring things,

candles and other similar things 30 20 10 5

3702-3703 Photographic film and paper 30 20 20 15 10 5 3923 Plastic boxes, bags 30 20 20 15 10 5 4011 Rubber tyres for small cars and special designed tyres 30 20 15 10 5 4804, 4819, 4821, 4823 Paper and craft paperboards; paper boxes, file boxes, trays..., labels 30 20 20 15 10 5 4911 Commercial advertising printings, pictures ... 30 20 10 5 5204, 5402, 5508, 5511 Some kind of textile fibre 30 20 20 15 10 5 5601 Cotton and cotton products (wadding) 30 20 20 15 10 5 5908 Textile and plaited wicks for lamps, candles and lighters ... 30 20 15 10 5 6306 Water registered fibres, sun covers, sails... and other products for camps 30 20 10 5 6901 G¹ch, g¹ch khèi lµm tõ bét ho¸ th¹ch si lÝc hoÆc c¸c lo¹i ®Êt si lÝc t-¬ng tù 30 20 10 5 7005, 7006, 7009, 7011,

7020 Kinds of processed glasses, mirrors for transportation means, television picture lamps...

30 20 10 5

7210 Metal and alloy products with the width less than 1,2mm 30 20 20 15 10 5 7308, Roofs ; kinds of screws, bolts; textile and sewing needles; Ovens and 30 20 20 15 10 5

18

7318-7323 heaters; dinner sets, kitchen things and other metal assessories 8214-8215 Knitter, resources for toe nails, kitchen assessoiries made from metal 30 20 20 15 10 5 8304-8306 Board and office things, bells, metal frames 30 20 20 15 10 5 Chapter 84 Some electric machinery, engines and equipment 30 20 10 5 Chapter 85 Some electric machinery, engines and equipment 30 20 20 15 10 5 8701, 8704, 8708, 8716 Kinds of trucks, parts and assessories for vehicles ... 30 20 10 5 9006 Camera 30 20 20 15 10 5 9110-9113 Watch and clock motors, spare parts and cover, wire 30 20 20 15 10 5 9603-9608,

9613 Some other items 30 20 20 15 10 5

20% 0401, 0405, 0410 Milk and milk ice-scream, milk water, butter and other fat things, milk cake 20 15 10 5 1006 Husked rice 20 15 10 5 3403 Lubricant product 20 15 10 5 4801, 4819, 4823 Printing paper, other kinds of paper 20 20 15 10 5 5603 Non textile product 20 20 20 15 10 5 5806 Cloth used for producing ribbon for typerwriter and similar equipment 20 15 10 5 7007-7008 Safety car glass; glass used for wall panel 20 20 20 15 10 5 7311, 7318 Metal or iron tank of less than 30l used for containing compressed or liquid

gas; some kinds of screw, pin, bolt... 20 20 20 15 10 5

8407, 8415 Engine used for tractor and car of more than 10 seats 20 15 10 5 8501, 8504, 8507, 8516,

8518 Electric motor; some kind of battery, transformer, some electric parts 20 20 20 15 10 5

15% 0402 Milk and fresh cream without sugar and other sweat substance 15 15 10 5 3208, 3210 Some kinds of paints 15 15 15 10 10 5 7305 Twisty welded pipes 15 15 15 10 10 5 8544 Electric conducting wire with plastic cover and other kind of isolated wire 15 15 15 10 10 5

10% 1501-1506 Fat, animal oil and related product 10 10 10 5 5 5 1702-1703 Glucose sugar vµ glucose syrups; honey 10 10 10 5 5 5 2814-2815 Ammoniac, solid natri- hydroxide 10 10 10 5 5 5 3004-3005 Some kind of pharmaceutical product; cotton, band and similar product 10 10 10 5 5 3208 Inner paint and normal paint, anti ship worm paint and anti erosion paint

used for ship cover 10 10 10 5 5 5

7210, 7213, 7216-7217 Flat-rolled non-alloy metal product of more than 1.2 mm thick; non-alloy iron product in stick and twisted stick shape; in form of angle, string, mould and shape

10 10 10 5 5 5

7415 Various bronze pin 10 10 10 5 5 5 8536, 8539, 8544 Some electric equipment, monitoring cable 10 10 10 5 5 5 8701, 8704, 8706 Tractor, some transportation means and truck frame 10 10 10 5 5 5

19

5% 3208-3209 Some specialized paint (used for dentistry) 5 5 5 5 5 5 3403 Lubricant used for processing textile, leather, feather product; oil used for

transformer, switcher or for plane engine; silicon oil 5 5 5 5 5 5

Chapter 89 Boat/ ship assembling parts or other kinds of floating items assembling parts 5 5 5 5 3% 2919-2924, 2940 Some organic chemicals 3 3 3 3 3

4410, 4412, 4413 All kinds of plywood 3 3 3 3 3 1% 5506-5507 Synthetic staple fiber or recycle processed fiber 1 1 1 1 1 1

7108 Crude gold or gold in kind of semi product or powder 1 1 1 1 7315 Chain used for other kind of transport mean other than bicycle and

motorcycle 1 1 1 1 1 1

8544 High voltage electric conducting wire (more than 1000v), other kinds of electric conducting wire

1 1 1 1 1 1

0% 2711 Liquid gas 0 0 0 0 2815 Kali-Hydroxide, Natri - Peroxide or Kali -Peroxide 0 0 0 0 0 2844-2845 Radio active element and radio active isotopes; heavy water 0 0 0 0 Chapter 29 Organic chemicals 0 0 0 0 0 Chapter 31 Fertilizer 0 0 0 0 8501, 8539 Electric generator; some special bulb/tube 0 0 0 0 0 0 8701, 8703, 8704 Tractor, some specialized transport mean 0 0 0 0 0 0 8901, 8902, 8904, 8906 Some kind of boat/ ship, floating assembled bridge 0 0 0 0 9018, 9022 Equipment, tools used for health care, dentistry, surgery....radio active and X

ray equipment 0 0 0 0 0 0

Source: MOF, Vietnam.

20

Annex 4: VIETNAM: GENERAL EXCEPTION LIST AS OF MARCH 2000

No HS Code Description

HeadingSubheading

1207 Other oil seeds and oleaginous fruits, whether or not broken- Other

1 1207 91 00 - - Poppy seeds

1302 Vegetable saps and extracts; pectic substances, pectinates and pectates ; agar-agar and other mucilages and thickeners, whether or not modified, derived from vegetable products - Vegetable saps and extracts:

2 1302 11 00 - - Opium

3 2203 00 00 Beer made from malt

2206 00 Other fermented beverages (for example, cider, perry, mead); mixtures of fermented beverages and mixtures of fermented beverages and non-alcoholic beverages, not elsewhere specified or included

4 2206 00 10 - Fruit wines (other than grape wine)5 2206 00 20 - Honey wine

- Rice wine (including sake or other added vitamins wine):

6 2206 00 31 - - Of an alcoholic strength by volume of less than 15% vol.

7 2206 00 39 - - Other8 2206 00 90 - Other

2207 Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or higher; ethyl alcohol or other spirits, denatured, of any strength.

9 2207 10 00 - Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or higher

2207 20 - Ethyl alcohol or other spirits, denatured, of any strength:

10 2207 20 10 - - Ethyl alcohol of an alcoholic strength by volume of 99% vol. or higher

11 2207 20 90 - - Other

2208 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol.; spirits, liqueurs and other spirituous beverages

2208 20 - Spirits obtained by distilling grape wine or grape marc:

12 2208 20 10 - - Spirituous quintessence13 2208 20 90 - - Other

2208 30 - Whiskies:14 2208 30 10 - - Spirituous quintessence15 2208 30 90 - - Other

2208 40 - Rum and tafia:16 2208 40 10 - - Spirituous quintessence17 2208 40 90 - - Other

21


HeadingSubheading

2208 50 - Gin and Geneva:18 2208 50 10 - - Spirituous quintessence19 2208 50 90 - - Other

2208 60 - Vodka20 2208 60 10 - - Spirituous quintessence21 2208 60 90 - - Other

2208 70 - Liqueurs and cordials:22 2208 70 10 - - Spirituous quintessence23 2208 70 90 - - Other

2208 90 - Other- - Other spirits:

24 2208 90 11 - - - Spirituous quintessence25 2208 90 19 - - - Other26 2208 90 90 - - Other spirituous beverages

2401 Unmanufactured tobacco; tobacco refuse27 2401 10 00 - Tobacco, not stemmed/stripped28 2401 20 00 - Tobacco, partly or wholly stemmed/stripped

2401 30 - Tobacco refuse29 2401 30 10 - - Tobacco stems30 2401 30 90 - - Other

2402 Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes

31 2402 10 00 - Cigars, cheroots and cigarillos, containing tobacco

32 2402 20 00 - Cigarettes containing tobacco33 2402 90 00 - Other

2403 Other manufactured tobacco and manufactured tobacco substitutes; "homogenized" or "reconstituted" tobacco; tobacco extracts and essences

34 2403 10 00 - Smoking tobacco, whether or not containing tobacco substitutes in any proportion- Other

35 2403 91 00 - - "Homogenized" or "reconstituted" tobacco36 2403 99 00 - - Other

37 2618 00 00 Granulated slag (slag sand) from the manufacture of iron or steel

38 2619 00 00 Slag, dross (other than granulated slag), scalings and other waste from the manufacture of iron or steel

2620 Ash and residues (other than from the manufacture of iron or steel), containing metals or metals compounds- Containing mainly zinc

39 2620 11 00 - - Hard zinc spelter40 2620 19 00 - - Other41 2620 20 00 - Containing mainly lead

22


HeadingSubheading

42 2620 30 00 - Containing mainly copper43 2620 40 00 - Containing mainly aluminium44 2620 50 00 - Containing mainly vanadium45 2620 90 00 - Other

46 2621 00 00 Other slag and ash, including seaweed ash (kelp)

2710 Petroleum oils and oils obtained from

bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations- Light oils and preparations

47 2710 00 11 - - Aviation spirit48 2710 00 12 - - White spirit 49 2710 00 19 - - Other50 2710 00 20 - Diesel fuel51 2710 00 30 - Mazut52 2710 00 40 - Type jet fuel (TC1, ZA1,etc…)53 2710 00 50 - Kerosene54 2710 00 60 - Naphtha, reformates and other similar preparations55 2710 00 70 - Condensate and other similar preparations56 2710 00 90 - Other

57 3601 00 00 Propellent powders

58 3602 00 00 Prepared explosives, other thanpropellent powders

59 3603 00 00 Safety fuses; detonating fuses; percussion or detonating caps; igniters; electric detonators.

3604 Fireworks, signaling flares, rain rockets, fog signals and other pyrotechnic articles

60 3604 10 00 - Fireworks3604 90 - Other

61 3604 90 10 - - Signaling flares, fog signals62 3604 90 90 - - Other

4012 Retreaded or used pneumatic tyres of rubber; solid or cushion tyres, interchangeable tyre treads and tyre flaps, of rubber

4012 10 - Retreaded tyres63 4012 10 10 - - Of a kind used on motor cars (including

station wagons and racing cars)- - Of a kind used on buses or lorries:

64 4012 10 21 - - - Of 450 mm in diameter65 4012 10 29 - - - Other66 4012 10 30 - - Of a kind used on aircraft67 4012 10 40 - - Of a kind used on motorcycles

23


HeadingSubheading

68 4012 10 50 - - Of a kind used on bicycles4012 10 - - Other:

69 4012 10 91 - - - Of 450 mm in diameter70 4012 10 99 - - - Other

4012 20 - Used pneumatic tyres:71 4012 20 10 - - Of a kind used on motor cars (including

station wagons and racing cars)4012 20 - - Of a kind used on buses or lorries:

72 4012 20 21 - - - Of 450 mm in diameter73 4012 20 29 - - - Other74 4012 20 30 - - Of a kind used on aircraft75 4012 20 40 - - Of a kind used on motorcycles76 4012 20 50 - - Of a kind used on bicycles77 4012 20 90 - - Other

4012 90 - Other- - Solid or cushion tyres

78 4012 90 11 - - - Of 450 mm in diameter79 4012 90 19 - - - Other

- - Interchangeable tyre treads80 4012 90 21 - - - Of 450 mm in diameter81 4012 90 29 - - - Other82 4012 90 30 - - Tyre flaps

8517 Electrical apparatus for line telephony or line telegraphy, including line telephone sets with cordless handsets and telecommunication apparatus for carrier-current line systems or for digital line systems; videophones- Telephone sets; videophones:

8517 11 - - Line telephone sets with cordless handsets:83 8517 11 10 - - - Interphones84 8517 11 90 - - - Other

8517 19 - - Other:85 8517 19 10 - - - Interphones86 8517 19 20 - - - Videophones

- Facsimile machines and teleprinters87 8517 21 00 - - Facsimile machines88 8517 22 00 - - Teleprinters89 8517 30 00 - Telephonic or telegraphic switching apparatus

8517 50 - Other apparatus, for carrier-current line systems or for digital line systems

90 8517 50 10 - - Modems91 8517 50 20 - - Compressing or line analysing apparatus92 8517 50 90 - - Other

8517 80 - Other apparatus93 8517 80 10 - - Frequency converting apparatus, including

combined modulators-demodulators (modems)94 8517 80 90 - - Other

8517 90 - Parts95 8517 90 10 - - Assembled chip boards96 8517 90 90 - - Other

24


HeadingSubheading

8525 Transmission apparatus for radio-telephony, radio-telegraphy, radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras; still image video cameras and other video camera recorders.

97 8525 10 00 - Transmission apparatus 8525 20 - Transmission apparatus incorporating

reception apparatus 98 8525 20 10 - - Wireless telephone sets (mobile phones)99 8525 20 20 - - Television transmission apparatus

100 8525 20 30 - - Apparatus for radio-telephony, radio-telegraphy101 8525 20 90 - - Other 102 8525 30 00 - Television cameras 103 8525 40 00 - Still image video cameras and other video

camera recorders. * Particulars:

104 + Cameras for specialized use

8526 Radar apparatus, radio navigational aid apparatus and radio remote control apparatus

105 8526 10 00 - Radar apparatus - Other

106 8526 91 00 - - Radio navigational aid apparatus 107 8526 92 00 - - Radio remote control apparatus

8527 Reception apparatus for radio-telephony, radio-telegraphy or radio broadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock

- Radio-broadcast receivers capable of operating without an external source of power, including apparatus capable of receiving also radio- telephony or radio-telegraphy:

108 8527 12 00 - - Pocket-size radio cassette-players 109 8527 13 00 - - Other apparatus combined with sound

recording or reproducing apparatus 110 8527 19 00 - - Other

- Radio-broadcast receivers not capable of operating without an external source of power, of a kind used in motor vehicles, including apparatus capable of receiving also radio-telephony or radio-telegraphy:

111 8527 21 00 - - Combined with sound recording or reproducing apparatus

112 8527 29 00 - - Other - Other radio-broadcast receivers, including apparatus capable of receiving also radio- telephony or radio-telegraphy:

113 8527 31 00 - - Combined with sound recording or reproducing apparatus

114 8527 32 00 - - Not combined with sound recording or reproducing apparatus, but combined a clock

115 8527 39 00 - - Other 8527 90 - Other

116 8527 90 10 - - Pagers (beepers)

25


HeadingSubheading

117 8527 90 90 - - Other* Particulars:

118 + In CKD form of heading No. 8527 (other than pagers/beepers)119 + In IKD form of heading No. 8527 (other than pagers/beepers)

8529 Parts suitable for use solely or principally with the apparatus of headings Nos. 85.25 to 85.28

120 8529 10 00 - Aerials and aerial reflectors of all kinds; parts suitable for use therewith * Particulars:

121+ Satellite antennas solely used for radio-broadcasting or television or telecommunication stations

122 8529 90 00 - Other * Particulars:

123+ Of subheading No. 8529.90 for use solely or principally with the apparatus of headings Nos. 8525 and 8526

8702 Public - transport type passenger motor vehicles, of 10 seats or more, including the driver

124 8702 10 00 - With compression-ignition internal combustion piston engine (diesel or semi-diesel)

125 8702 90 00 - Other

8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading No.87.02), including station wagons and racing cars- Other vehicles with spark-ignition internal combustion reciprocating piston engine:

8703 21 - - Of a cylinder capacity not exceeding 1,000 cc:126 8703 21 20 - - - Designed for transporting less than 8 persons,

including the driver127 8703 21 30 - - - Designed for transporting 9 persons, including

the driver8703 22 - - Of a cylinder capacity exceeding 1,000cc

but not exceeding 1,500cc:128 8703 22 20 - - - Designed for transporting less than 8 persons,



but not exceeding 3000cc:130 8703 23 20 - - - Designed for transporting less than 8 persons,


the driver8703 24 - - Of a cylinder capacity exceeding 3,000cc:

132 8703 24 20 - - - Designed for transporting less than 8 persons,including the driver

133 8703 24 30 - - - Designed for transporting 9 persons, including the driver

26


HeadingSubheading

- Other vehicles, with compression-ignition internal combustion piston engine (diesel or semi-diesel):

8703 31 - - Of a cylinder capacity not exceeding 1,500cc134 8703 31 20 - - - Designed for transporting less than 8 persons,



but not exceeding 2,500cc:136 8703 32 20 - - - Designed for transporting less than 8 persons,


the driver8703 33 - - Of a cylinder capacity exceeding 2,500cc:

138 8703 33 20 - - - Designed for transporting less than 8 persons,including the driver

139 8703 33 30 - - - Designed for transporting 9 persons, including the driver

8703 90 - Other140 8703 90 20 - - - Designed for transporting less than 8 persons,


the driver

142 8710 00 00 Tanks and other armored fighting vehicles, motorized, whether or not fitted with weapons, and parts of such vehicles

8711 Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars.

143 8711 10 00 - With reciprocating internal combustion piston engine of a cylinder capacity not exceeding 50cc

144 8711 20 00 - With reciprocating internal combustion piston engine of a cylinder capacity exceeding 50cc but not exceeding 250cc* Particulars:

145 + In CKD1 form of heading 8711146 + In CKD2 form of heading 8711147 + In IKD1 form of heading 8711148 + In IKD2 form of heading 8711149 + In IKD3 form of heading 8711

8801 Balloons and dirigibles; gliders, hang gliders and other non-powered aircraft.

150 8801 10 00 - Gliders, hang gliders151 8801 90 00 - Other

8802 Other aircraft (for examples, helicopters, airplanes); spacecraft (including satellites) and suborbital and spacecraft launch vehicles- Helicopters:

152 8802 11 00 - - Of an unladen weight not exceeding 2,000 kg

27


HeadingSubheading

153 8802 12 00 - - Of an unladen weight exceeding 2,000 kg8802 20 - Aeroplanes and other aircraft, of an

unladen weight not exceeding 2,000 kg:154 8802 20 10 - - Aeroplanes155 8802 20 90 - - Other

8802 30 - Aeroplanes and other aircraft, of an unladen weight exceeding 2,000 kg but not exceeding 15,000 kg:

156 8802 30 10 - - Aeroplanes157 8802 30 90 - - Other

8802 40 - Aeroplanes and other aircraft, of an unladen weight exceeding 15,000 kg:

158 8802 40 10 - - Aeroplanes159 8802 40 90 - - Other

8802 60 - Spacecraft (including satellites) and suborbital and spacecraft launch vehicles:

160 8802 60 10 - - Telecommunications satellites 161 8802 60 90 - - Other

8803 Parts of goods of heading No.88.01 or 88.02162 8803 10 00 - Propellers and rotors and parts thereof:163 8803 20 00 - Under-carriages and parts thereof164 8803 30 00 - Other parts of aeroplanes or helicopters165 8803 90 00 - Other

8805 Aircraft launching gear; deck-arrestor or similar gear; ground flying trainers; parts of the foregoing articles

166 8805 10 00 - Aircraft launching gear and parts thereof; deck-arrestor or similar gear and parts thereof

167 8805 20 00 - Ground flying trainers and parts

9009 Photo-copying apparatus incorporating an optical system or of the contact type and thermo-copying apparatus- Electrostatic photo-copying apparatus:

168 9009 11 00 - - Operating by reproducing the original image directly onto the copy (direct process)

169 9009 12 00 - - Operating by reproducing the original via an intermediate onto the copy (indirect process)- Other photo-copying apparatus:

170 9009 21 00 - - Incorporating an optical system171 9009 22 00 - - Of the contact type172 9009 30 00 - Thermo-copying apparatus 173 9009 90 00 - Parts and accessories

174 9301 00 00 Military weapons, other than revolvers, pistols and the arms of heading No. 93.07

175 9302 00 00 Revolvers and pistols, other than those of heading Nos. 93.03 or 93.04

9303 Other firearm and similar devices which

28


HeadingSubheading

operate by the firing of an explosive charge (for example, sporting shotguns and rifles, muzzle-loading firearms, very pistols and other devices designed to project only signal flares, pistols and revolvers for firing blank ammunition, captive-bolt humane killers, line-throwing guns)

176 9303 10 00 - Muzzle-loading firearms9303 20 - Other sporting, hunting or target-shooting

shotguns, including combination shotgun-rifles177 9303 20 10 - - Hunting shotguns178 9303 20 90 - - Other

9303 30 - Other sporting hunting or target-shooting rifles179 9303 30 10 - - Hunting shotguns180 9303 30 90 - - Other181 9303 90 00 - Other

182 9304 00 00 Other arms (for example, spring, air or gas guns and pistols, truncheons), excluding those of heading No.93.07

9305 Parts and accessories of article of headings Nos. 93.01 to 93.04

183 9305 10 00 - Of revolvers or pistols- Of shotguns or rifles of heading No.93.03:

9305 21 - - Shotgun barrels184 9305 21 10 - - - Of shotguns weighted to 17 kilos185 9305 21 90 - - - Other

9305 29 - - Other186 9305 29 10 - - - Of shotguns weighted to 17 kilos187 9305 29 90 - - - Other

9305 90 - Other188 9305 90 10 - - - Of shotguns or rifles weighted to 17 kilos189 9305 90 90 - - Other

9306 Bombs, grenades, torpedoes, mines, missiles and similar munitions of war and parts thereof; cartridges and other ammunition and projectiles and parts thereof, including shot and cartridge wads

190 9306 10 00 - Cartridges for riveting or similar tools orfor captive-bolt humane killers and parts thereof- Shotgun cartridges and parts thereof; air gun pellets:

191 9306 21 00 - - Cartridges 192 9306 29 00 - - Other193 9306 30 00 - Other cartridges and parts thereof194 9306 90 00 - Other

195 9307 00 00 Sword, cutlasses, bayonets, lances and similar arms and parts thereof and scabbards and sheaths therefor

9701 Paintings, drawings and pastels, executed entirely by hand, other than drawings of heading No.49.06 and other than hand-painted or hand-decorated manufactured articles; collages and similar decorative plaques

29



HeadingSubheading

196 9701 10 00 - Paintings, drawings and pastels197 9701 90 00 - Other

198 9702 00 00 Original engravings, prints and lithographs

199 9703 00 00 Original sculptures and statuary, in any material

200 9704 00 00 Postage or revenue stamps, stamp-postmarks, first-day covers, postal stationery (stamped paper), and the like, used, or if unused not of current or new issue in the country to which they are destined

201 9705 00 00 Collections and collector, pieces of zoological, botanical, minera-logical, anatomical, historical, archaeological paleontological, ethnographic or numismatic interest

202 9706 00 00 Antiques of an age exceeding one hundred years

30

Annex 5: VIETNAM: SENSITIVE LIST AS OF MARCH 2000

Heading0105 Live poultry, that is to say, fowls of the species Gallus Domesticus,

ducks, geese, turkeys and guinea fowls- Weighing not more than 185g:

0105 11 - - Fowls of the species Gallus Domesticus:1 0105 11 90 - - - Other

0105 12 - - Turkeys:2 0105 12 90 - - - Other

0105 19 - - Other:3 0105 19 90 - - - Other

- Other:0105 92 - - Fowls of the species Gallus Domesticus,

weighing not more than 2,000g:4 0105 92 90 - - - Other

0105 93 00 - - Fowls of the species Gallus Domesticus, 5 weighing more than 2,000g

0105 99 - - Other:6 0105 99 90 - - - Other

0207 Meat and edible offal, of the poultry of heading No.01.05, fresh, chilled or frozen- Of fowls of the species Gallus domesticus :

7 0207 11 00 - - Not cut in pieces, fresh or chilled8 0207 12 00 - - Not cut in pieces, frozen9 0207 13 00 - - Cuts and offal, fresh or chilled10 0207 14 00 - - Cuts and offal, frozen

- Of turkeys:11 0207 24 00 - - Not cut in pieces, fresh or chilled12 0207 25 00 - - Not cut in pieces, frozen13 0207 26 00 - - Cuts and offal, fresh or chilled14 0207 27 00 - - Cuts and offal, frozen

- Of duck, geese or guinea fowls:15 0207 32 00 - - Not cut in pieces, fresh or chilled16 0207 33 00 - - Not cut in pieces, frozen17 0207 34 00 - - Fatty livers, fresh or chilled18 0207 35 00 - - Other, fresh or chilled19 0207 36 00 - - Other, frozen

0208 Other meat and edible meat offal, fresh, chilled or frozen20 0208 10 00 - Of rabbits or hares21 0208 20 00 - Frogs’ legs22 0208 90 00 - Other

NOSubheading

HS CODE DESCRIPTION

31

Heading

0407 00 Birds’ eggs, in shell, fresh, preserved or cooked23 0407 00 10 - For hatching24 0407 00 90 - Other

0602Other live plants (including their roots), cuttings and slips; mushroom spawn

25 0602 10 00 - Unrooted cuttings and slips26 0602 20 00 - Trees, shrubs and bushes, grafted or not,

of kinds which bear edible fruits or nuts27 0602 30 00 - Rhododendrons and azaleas, grafted or not28 0602 40 00 - Roses, grafted or not29 0602 90 00 - Other

0805 Citrus fruit, fresh or dried30 0805 10 00 - Oranges31 0805 20 00 - Mandarins (including tangerines and

satsumas); clementines, wilkings and similar citrus hybrids32 0805 30 00 - Lemons (Citrus limon, Citrus limonum) and

limes (Citrus aurantifolia)33 0805 40 00 - Grapefruit34 0805 90 00 - Other

1006 Rice1006 10 - Rice in the husk (paddy or rough):

35 1006 10 90 - - Other36 1006 20 00 - Husked (brown) rice

37 1601 00 00 Sausages and similar products, of meat, meat offal or blood; food preparations based on these products

1602 Other prepared or preserved meat, meat offal or blood38 1602 10 00 - Homogenised preparations39 1602 20 00 - Of liver of any animal

- Of poultry of heading No.01.05:40 1602 31 00 - - Of turkeys41 1602 32 00 - - Of fowls of the species Gallus domesticus42 1602 39 00 - - Other

- Of swine:43 1602 41 00 - - Hams and cuts thereof44 1602 42 00 - - Shoulders and cuts thereof45 1602 49 00 - - Other, including mixtures

NOSubheading

HS CODE DESCRIPTION

32


Heading46 1602 50 00 - Of bovine animals47 1602 90 00 - Other, including preparations of blood

of any animal

1701 Cane or beet sugar and chemically pure sucrose, in solid form- Raw sugar not containing added flavourings or colouring matters:

48 1701 11 00 - - Cane sugar- Other:

49 1701 91 00 - - Containing added flavourings or colouring matters

1701 99 - - Other:50 1701 99 10 - - - White sugar51 1701 99 90 - - - Other

NOSubheading

HS CODE DESCRIPTION

vietnam trade liberalization: following the...

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