Vietnam's Fta PDF

EUROPE-VIETNAM
Impact assessment of the EU-

Vietnam Free Trade Agreement
(EVFTA) on the UK
29/03/2019
1
Title: Impact assessment of the EU-Vietnam Free Trade Agreement
(EVFTA) on the UK Impact Assessment (IA)
IA No: DIT0009
Date: 07/03/2019
RPC Reference No: RPC-4328(1)-DIT
Stage: Final
Lead department or agency: Department for International Trade
Other departments or agencies: N/A Source of intervention: EU
Type of measure: Other
Contact for enquiries:
enquiries@trade.gov.uk
Summary: Intervention and Options RPC Opinion: Green
Cost of Preferred (or more likely) Option

Total Net Business Net Net cost to business per One-In, Business Impact Target
Present Value Present Value year (EANDCB in 2014 prices) Three-Out Status
£5,100 m N/A N/A No Not a regulatory provision

What is the problem under consideration? Why is government intervention necessary?
The European Commission and the Government of Vietnam have concluded negotiations and agreed a final text for the EU-Vietnam Free Trade
Agreement (EVFTA). The European Commission has presented a proposal on signature and conclusion of this agreement to the Council of the
European Union, which now has to decide whether to formally adopt the necessary Council Decision authorising signature of the Agreement.
In the past, Council Decisions on signature of EU trade agreements have typically been agreed through Common Accord, requiring the
agreement of all Member States. UK parliament will be required to vote for or against the signature and conclusion of the EVFTA. The position
the UK will take on this will be subject to UK Parliamentary scrutiny. Upon signature, the EVFTA will require European Parliament approval and
ratification by Vietnam before it can enter into force.
What are the policy objectives and the intended effects?

The policy objectives are to support the EU’s free trade agenda whilst we are still an EU member state, specifically the implementation of
EVFTA. The intended effects are increased bilateral trade and economic growth, and support for Vietnam’s economic and social transformation
and integration into the global economy. The Agreement includes elimination of most tariffs between the EU and Vietnam and addresses non-
tariff barriers including public procurement rules, regulatory issues, competition, services, investment, intellectual property rights, and
sustainable development. The EVFTA will lower costs of UK exports and imports and give more opportunity for UK businesses in Vietnam.
Furthermore, EVFTA will increase the welfare of UK households by lowering the price of goods. Baker and Vanzetti (2019) shows that the
EVFTA could increase UK exports to Vietnam by 60% (equivalent to around £490 million) per annum in the long run. In addition, UK consumer
welfare is expected to increase by £290 million from an increase in real income. Overall UK GDP is estimated to increase by 0.01% which
equates to around £390 million per annum in the long run.
What policy options have been considered, including any alternatives to regulation? Please justify preferred
option (further details in Evidence Base)
EU and Vietnam have concluded EVFTA negotiations and so there is no scope to change its content at this stage. The policy options are
therefore to support, or not, signature of the agreement. The options, assessed against a baseline of no agreement, are:
1. The UK votes in favour of signature and conclusion of the EVFTA. Providing the other EU Member States also vote in favour, the
effect would be the EVFTA signed and entering into force once the European Parliament has given its consent and Vietnam has
completed its ratification procedure. This is the Government’s preferred option.
2. The UK does not support signature and conclusion of the Agreement. In this case, the means by which Council voted could have
a bearing on the outcome. If Council approval were sought via Common Accord, the UK failing to vote in favour would prevent the
agreement from being signed and concluded. Dialogue to try to unblock signature would be likely, but the practical impact would be
the EU and Vietnam continuing to trade on WTO Most Favoured Nation terms and the UK not accruing any additional benefits above
the baseline of this IA. Alternatively, Council approval might be sought via Qualified Majority Vote, with potential for the agreement to
be signed if a sufficient number of Member States vote in favour, even without UK support.
Will the policy be reviewed? No. If applicable, set review date: N/A
Does implementation go beyond minimum EU requirements? No
Micro Small Medium Large
Are any of these organisations in scope?
Yes Yes Yes Yes
What is the CO2 equivalent change in greenhouse gas emissions? Traded: Non-traded:
(Million tonnes CO2 equivalent) N/Q N/Q
I have read the Impact Assessment and I am satisfied that, given the available evidence, it represents a
reasonable view of the likely costs, benefits and impact of the leading options.
Signed by the responsible SELECT SIGNATORY: Date: 27th March 2019
2
Summary: Analysis & Evidence Policy Option 1
Description: The UK votes in favour of signature of the EU-Vietnam FTA. This is the government’s preferred option
and the one being taken forward. FULL ECONOMIC ASSESSMENT
Price Base PV Base Time Period Net Benefit (Present Value (PV)) (£m)
Year 2017 Year 2017 Years 15 Low: - High: - Best Estimate: 5,100
COSTS (£m) Total Transition Average Annual Total Cost

(Constant Price) (excl. Transition) (Constant Price) (Present Value)
Low 1.4 - 1.4
High 1.3 - 1.3
Best Estimate 1.4 - 1.3
Description and scale of key monetised costs by ‘main affected groups’
UK businesses are not expected to incur costs if they do not utilise the preferences set out in the EVFTA.
Where a business chooses to trade under the EVFTA they will incur a one-off familiarisation cost associated with reading the free trade agreement
guidance (£1.4 million).
Other key non-monetised costs by ‘main affected groups’

There will be lower domestic production in some sectors due to increased competition from imports. This is captured within the net GDP effects set out
below.
BENEFITS (£m) Total Transition Average Annual Total Benefit

(Constant Price) (excl. Transition) (Constant Price) (Present Value)
Low - - -
High - - -
Best Estimate - 420 5,100
Description and scale of key monetised benefits by ‘main affected groups’
Figures presented here reflect the long run impacts per annum and should be treated as a magnitude of change and not a
forecast.
Baker and Vanzetti (2019) estimate the long run net increase in UK real Gross Domestic Product (GDP) to be around 0.01% per annum in the long run
(equivalent to around £390 million). These benefits include the elimination of most tariffs and the reduction of actionable Non-Tariff Measures (NTM) that
impede cross-border trade in goods and services. The impact assessment is based on the results of external Computable General Equilibrium (CGE)
modelling undertaken by Baker and Vanzetti (2019) which is sensitive to the assumptions and methodologies applied. The results are not a forecast and
should be treated as indicative of the plausible magnitude and direction of impacts, rather than precise predictions. The estimates in Baker and Vanzetti
(2019) are based on the authors’ interpretation of the EVFTA text and their judgement on the additional market access offered under the agreement.
The results are therefore subject to a degree of uncertainty.
The increase in net GDP is associated with:
 An increase in UK bilateral exports by 60% which equates to around £490 million per annum.
 An increase in UK bilateral imports by 33%, which equates to around £1.7 billion per annum.
Alongside these benefits the estimates suggest a £290 million increase in UK consumer welfare from an increase in real income.
Most of the UK bilateral export gains will be trade in service sectors. UK import gains are expected to be in textiles, leather and motor vehicle parts.
These are economic changes that underlie and drive the change in GDP, but they are not additive components of GDP.
Other key non-monetised benefits by ‘main affected groups’

Increase in consumer choice of goods and services.
Efficiency savings from a reduction in some non-tariff measures (NTMs), for example, the mutual recognition of conformity assessment bodies.
UK business will benefit from greater ease to bid for Vietnamese government contracts.
Key assumptions/sensitivities/risks Discount rate (%) 3.5%

 The analysis assumes that the Government is able to deliver its stated policy intention to ensure continuity in the effect of EU agreements as the UK leaves
the EU, and therefore ensures broadly similar trade preferences in the long run between the UK and Vietnam. Whilst the UK-EU access to each other’s
markets may, in certain ways, be less than it is now, it is not currently possible to model how that would change the baseline.
 The analysis assumes this agreement will be continued bilaterally with Vietnam once the UK leaves the EU without changes to rules of origin.
 Estimates are produced against a 2018 baseline which includes the tariff eliminations associated with the Comprehensive & Progressive Trans-Pacific
Partnership agreement (CPTPP) and trade agreements the EU has recently concluded such as the EU-Canada Comprehensive and Economic
Partnership Agreement (CETA) and the EU-Singapore FTA.
BUSINESS ASSESSMENT (Option 1)

Direct impact on business (Equivalent Annual) £m Score for Business Impact Target (qualifying
Total Costs: N/A Total Benefits: N/A Net: N/A provisions only) £m: Not a regulatory provision
3
Evidence Base
The structure of this Impact Assessment is as follows:
1: Economic background
2: Strategic overview of EVFTA
3: Problem under consideration
4: Rationale for intervention
5: Policy objective
6: Description of options considered
7: Monetised and non-monetised costs and benefits of each option
8: Small and Micro Business Assessment
9: Direct costs and benefits to business calculations
10: Sensitivities
11: Risks and assumptions
4
1 Economic background
1.1 Under the UK’s current membership of the EU, decisions on trade policy are
taken by the Council of the European Union and the European Parliament. The
day to day conduct of EU trade relations, including the negotiation of free trade
agreements, is led by the European Commission.
1.2 While we are members of the EU, we will continue to cooperate fully and
constructively with our partners fulfilling the responsibilities of a Member State.
Once we have left, we will work collaboratively with the EU to press our shared
free trade agenda. We will then also have the opportunity to advance our
interests, priorities and ambitions through a new independent trade policy.
The world in which the UK trades
1.3 Free and fair trade is fundamental to the prosperity of the EU and the world
economy. Trade has historically been an important part of the UK economy.
Excluding major shocks such as the Great Depression and two World Wars, both
exports and imports have accounted for over 20% of UK GDP for the last 160
years.1
1.4 A substantial proportion of the growth in global trade in recent decades has been
driven by growth in intra-industry trade and the development of cross-border
supply chains, where different stages of production for a particular good are
located in different countries. Well-functioning global trade relationships help
businesses to manage their supply chains effectively and source the imports they
need for their business. Over 70% of global trade is now in intermediate products,
or in capital goods (many of which are employed in the production of other
goods).2 Intra-industry trade (the import and export of the same or similar goods)
has increased; in the late 1980s, 70% of UK manufacturing trade was intra-
industry, whereas between 1997 and 2008, intra-industry trade increased to over
80%.3
1.5 This has driven significant shifts in shares of world trade. Developed economies’
share of global exports fell from 69% in 1980 to 54% in 2013.4
1.6 Services are also an important, and growing, component of supply chains. Firms
increasingly use logistics, communications services, and business services to
enable the efficient functioning of their supply chains, and almost one third of the
value of manufactured exports of developed countries comes from service
intermediate inputs.5 Digital technology is continuing to rapidly develop,
facilitating economic growth and making more and more services tradable.6
1.7 Trade agreements at the multilateral, plurilateral and bilateral level help to
facilitate international trade.
1
DIT using Bank of England research datasets: Three centuries of macroeconomic data. see
http://www.bankofengland.co.uk/research/Pages/datasets/default.aspx
2
OECD, see for example https://www.oecd.org/tad/gvc_report_g20_july_2014.pdf
3
Economic Globalisation Indicators’, (2012) and OECD, ‘Intra Industry and Intra Firm Trade and the Internationalisation of Production’, Economic
Outlook, (2002)
4
DIT estimates based on UNCTAD trade data.
5
WTO working paper see https://www.wto.org/english/res_e/reser_e/ersd201503_e.pdf
6
https://www.gov.uk/ukdigitalstrategy.
5
The benefits of international trade
Global benefits
1.8 An open and rules-based international trading environment enables economic

integration and security cooperation. It encourages predictable behaviour by
states and the peaceful settlement of disputes. It can also lead states to develop
political and economic arrangements at home which favour open markets, the
rule of law, participation and accountability.
Growth, prosperity and jobs
1.9 Empirical studies generally suggest a positive relationship between trade

openness and economic growth. The dramatic increase in China’s growth since
it opened up its economy provides a striking example, and analysis by the OECD
suggests that a 10% increase in openness is associated with a 4% increase in
income per head.7
1.10 Trade enables countries, firms and individuals to specialise in economic activities
that play to their relative strengths, resources and expertise, and to buy from and
sell to other countries doing likewise. Specialisation increases global output and
increases the quality and value of goods and services for consumers.
1.11 Free trade also allows businesses to benefit from access and exposure to ideas,
talent and technology across borders, and so become more competitive.
Businesses that export into new markets can access more customers and help
grow overall UK exports which contribute to growth in the UK economy.
Choice, value and quality for consumers
1.12 Free trade and imports improve living standards for consumers, through the
variety and price of goods available.
1.13 Consumers and households benefit directly through lower tariffs on imported
final consumption goods. They also benefit indirectly as firms become more
productive. For example, during 1996 – 2006 import prices for textiles and
clothing fell by 27% and 38% respectively in real terms, in large part because of
the phasing out of restrictive quotas in developed countries. For the same period
the import price of consumer electronics fell by around 50%,8 reflecting the
impact of the Information Technology Agreement.
7
OECD (2003), Sources of Economic Growth in OECD Countries, ‘https://www.oecd.org/eco/growth/2505752.pdf
8
J. Francois, M. Manchin, and H. Norberg, 2007, “Passing on of the benefits of trade openness to consumers”, European
Commission, Directorate General for Trade, p.7.
6
1.14 Free trade drives businesses to innovate and move up the value chain to
compete with cheaper imports to set themselves apart which means that
consumers benefit from better quality and ever improving products, at lower
prices.
Summary
1.15 Countries engage in trade because it is mutually beneficial and can benefit
businesses, consumers and the wider economy. Businesses gain from greater
revenue and profit which can lead to more investment, productivity and
innovation. Consumers gain from greater choice in the variety and quality of
goods and services, lower prices through increased competition, higher real
wages and living standards. Trade allows countries to allocate their resources to
activities in which they are more productive.
1.16 Domestic government policies may reduce trade flows between countries and
the associated benefits. The most obvious policy measures are tariffs, subsidies
and quantitative restrictions, but barriers also include complex regulations (for
example, health and safety, packaging, labelling and product regulations) and
customs procedures. These restrict free trade, which distorts the market price,
lowering competition and reducing choice for consumers.
1.17 Given the benefits of free trade, liberalisation generally has a positive impact on
GDP and citizens’ welfare. However, changes in the pattern of trade do lead to
some sectors expanding and some sectors declining in response to increased
international competition.
7
Trade between the UK and Vietnam
1.18 This section examines current trade flows between the UK and Vietnam and the
extent to which trade is restricted by tariffs and non-tariff measures (NTMs).
1.19 In 2017, Vietnam had GDP per capita equal to £1,800. This figure is lower than
the UK’s which is equal to £30,000. However per capita income in Vietnam has
grown at an average of 11% since 20009. This strong growth can, in part, be
explained by Vietnam’s increasing openness to international markets. Graph 1,
below, shows that the value of total trade in Vietnam as a percentage of GDP
has been steadily climbing since 2000.
1.20 Over this period there have been important shifts in the structure of Vietnam’s
exports of commodities to the UK and wider EU. Previously, Vietnamese
products mainly comprised agri-food, footwear, and apparel, many of which were
in the form of raw materials or simple processing with little value added.
Nowadays, with strong presence from overseas firms that have invested in the
country, Vietnam exports more sophisticated products. For example, Samsung,
a Korean smartphone manufacturer, has provided multi-billion pound investment
into Vietnam which has transformed Vietnam into a regional hub for assembling
smartphones, with around one third being exported to Europe.
Graph 1: Total trade as a percentage of GDP

200%
180%
160%
140%
120%
100%
80%
60%
40%
20% UK total trade as % of GDP Vietnam total trade as % of GDP
0%
2000 2002 2004 2006 2008 2010 2012 2014 2016
Source: UN Comtrade for total trade data (https://comtrade.un.org/) and World Bank for GDP data
(https://data.worldbank.org/)
9
Nominal GDP per capita, World Bank data: https://data.worldbank.org/
8
1.21 Strong growth in both Vietnam’s GDP and trade is forecast to continue10. Graph
1 shows Vietnam’s total trade as a share of its GDP has increased from 2000 to
2016 whereas the UK’s total trade as a share of its GDP has remained relatively
constant. Estimates suggest GDP growth will average at 5% until 2050,11 driven
by Vietnam’s cost competitive production base and a young digitally-savvy
workforce.12 As of 2017, 40% of Vietnam’s 96 million population is under the age
of 25.13 Given this positive outlook the EVFTA should help increase the £4.7
billion of goods and services the UK already trades with Vietnam.
1.22 As Vietnam’s middle class grows and disposable incomes rise, greater spending
power is generating demand for services and higher value-added products.14
This provides opportunities for increased services trade between the UK and
Vietnam given the UK’s service based economy.
1.23 In 2016 the UK exported just under £800 million worth of goods and services to
Vietnam. In comparison, the UK imported around £4,000 million worth of goods
and services from Vietnam resulting in a UK trade deficit with Vietnam.
1.24 As seen in graph 2, the UK imports more goods from Vietnam than it exports. In
2017 the UK imported £4.2 billion worth of goods from Vietnam including
electrical machinery, footwear and apparel. The large increases in more recent
years reflect two factors: firstly, Vietnam has become better integrated into the
global trade network since its accession to the WTO in 2007. Secondly, as
Vietnam’s economy transitions through the development phases demand for
low-cost electrical machinery has increased throughout Europe and the USA.
1.25 Graph 2 also highlights limited trade in services between the two nations. One of
the reasons for this is that Vietnam has not yet developed a services sector from
which it can compete on a global stage and thus export from. In 2017, services
sector accounted for more than 40% of Vietnam’s GDP, which was still low in
comparison with that of developed countries (around 80% in the UK for example).
However, Vietnam’s economy is developing and the demand for high-quality
financial, legal and other professional services is increasing. With the opening of
the UK and Vietnam markets as a result of the EVFTA, it is expected that bilateral
trade in services will be boosted in the future, particularly for the UK in the short
and medium term.
10
PwC (2017). ‘The World in 2050’. https://www.pwc.com/gx/en/issues/economy/the-world-in-2050.html
11
Source: PwC (2017) ‘Doing Business in Vietnam’ https://www.pwc.com/vn/en/publications/2017/dbg-2017.pdf. Data based
on International Monetary Fund (IMF) analysis. To note, the analysis presented in section 7 assumes Vietnams economy
growths by 5.6% in 2015 down to 3.8% in 2020 and levels off at 4.3% in 2030. See section 11 for more information.
12
PwC (2017). ‘Doing Business in Viet Nam’. https://www.pwc.com/vn/en/publications/2017/dbg-2017.pdf
13
Source: World Bank Data. https://data.worldbank.org/indicator/SP.POP.TOTL?locations=VN.
14
PwC Vietnam (2018). ‘The Future of ASEAN: Viet Nam Perspective’ https://www.pwc.com/vn/en/publications/2018/pwc-
vietnam-future-of-asean-vietnam-perspective.pdf
9
Graph 2: UK trade in goods and services with Vietnam
4000
Goods exports
Nominal value of trade (£ million)
3500
Goods imports
3000
2500
2000
1500
1000
500
0
2000 2002 2004 2006 2008 2010 2012 2014 2016
4000
Nominal value of trade (£ million)
3500 Services exports

3000 Services imports
2500
2000
1500
1000
500
0
2000 2002 2004 2006 2008 2010 2012 2014 2016
Source: Office for National Statistics, Pink Book 2017

(https://www.ons.gov.uk/releases/unitedkingdombalanceofpaymentsthepinkbook2017)
10
1.26 The top 10 goods exported and imported between the UK and Vietnam can be
seen in Table 1. These accounted for 71% and 87% of the total goods exported
to and imported from the UK to Vietnam respectively. Between 2015 and 2017
the UK mostly exported machinery and mechanical appliance to Vietnam,
followed by pharmaceutical products and electrical machinery. By far the top UK
import from Vietnam is electrical machinery, representing 40% of all goods
imports from Vietnam. Breaking down this category further, around £1.37 billion
of the £1.47 billion is in smartphones. For comparison, in 2010, UK imports of
electrical machinery from Vietnam were only £68 million, with footwear and
apparel the largest imports. This is evidence again of the rapid development
Vietnam is undergoing as it shifts from lower to higher skilled manufacturing.
Table 1: Top 10 UK goods exports and imports on average 2015 to 2017

3 year average value Proportion of total
Product Categories exports/imports to/from
(£, millions) Vietnam
Top 10 goods exports to Vietnam
Machinery and mechanical appliances 107 22%
Pharmaceutical products 56 12%
Electrical machinery 45 9%
Optical, photographic, cinema 29 6%
Plastics and plastic products 23 5%
Vehicles other than railway 21 4%
Fish and crustaceans 18 4%
Miscellaneous chemical products 17 4%
Residues and waste from the food
13 3%
industries
Pulp of wood or of other fibrous cellulosic
13 3%
material
Top 10 goods imports from Vietnam

Electrical machinery 1,470 40%
Footwear 454 12%
Articles of apparel (not knitted) 323 9%
Furniture 277 8%
Machinery and mechanical appliances 223 6%
Articles of apparel (knitted) 145 4%
Edible fruit and nuts 90 2%
Fish and crustaceans 88 2%
Plastics and plastic products 79 2%
Coffee, tea, mate and spices 73 2%
Source : https ://www.uktradeinfo.com/Statistics/BuildYourOwnTables/Pages/Table.aspx
Notes: Data presented is based on 2-digit HS codes.
11
1.27 Table 2 highlights both the UK’s and Vietnam’s revealed comparative
advantages (RCA)15. The RCA estimates have been normalised to range
between +1 and -1, where a positive RCA reflects a good which the UK exports
relatively more compared to other countries, and a negative RCA identifies a
good in which the UK exports relatively less than other countries.
1.28 The analysis shows that Vietnam tends to better at exporting products which the
UK is not. The UK has a considerable advantage in the export of ‘works of art
and antiques’, and in ‘pearls, precious stones, and metals’, whereas Vietnam’s
comparative advantages are focused on ‘footwear’, ‘apparel’, and ‘vegetable
products’.
Table 2: Revealed comparative advantage of UK and Vietnam goods exports

Product Category UK RCA Normalised Vietnam RCA Normalised
Works of art and antiques 0.82 -0.99
Pearls, precious stones and metals; coin 0.47 -0.79
Arms and ammunition 0.32 -1.00
Products of the chemical and allied industries 0.23 -0.68
Vehicles, aircraft and vessels 0.15 -0.69
Prepared foodstuff; beverages, spirits, tobacco 0.13 -0.04
Paper, paperboard and articles 0.07 -0.61
Instruments, clocks, recorders and reproducers 0.05 -0.24
Commodities not specified according to kind -0.10 -1.00
Machinery and electrical equipment -0.11 0.13
Base metals and articles -0.13 -0.30
Live animals and products -0.16 0.31
Mineral products -0.16 -0.40
Resins, plastics and articles; rubber and articles -0.17 -0.08
Articles of stone, plaster; ceramic prod.; glass -0.24 0.00
Textiles and articles of apparel -0.26 0.58
Miscellaneous manufactured articles -0.26 0.30
Footwear, headgear; feathers, flowers, fans -0.30 0.79
Hides, skins and articles; saddlery and travel goods -0.32 0.46
Animal and vegetable fats, oils and waxes -0.53 -0.48
Vegetable products -0.59 0.51
Wood, cork and articles; basket ware -0.73 0.36
Source: https://comtrade.un.org/data
Notes: The calculations are based on a 5-year average of 2012, 2013, 2014, 2015 and 2016 data, with the trade flow data
extracted from Comtrade for goods categories.
15
This is based on the Balassa Index (1965). It calculates the percentage of exports of a given sector in a given country and
compares it to the equivalent measure of world trade. If a country has a greater share of its total trade in a given sector than the
share of world exports in that sector, then it has a revealed comparative advantage in that sector.
12
1.29 Similarly, Table 3 shows the RCA’s for UK and Vietnam service exports. The UK
has a strong advantage in service areas which require high skilled workers -
notably in the insurance and finance sectors. Vietnam’s main advantage lies in
travel reflective of its large tourism industry, whilst it also holds a small advantage
in transport services.
Table 3: Revealed comparative advantage of UK and Vietnam service

exports
Service Category UK RCA Normalised Vietnam RCA Normalised
Insurance and pension services 0.52 -0.66
Financial services 0.46 -0.69
Personal, cultural, and
0.18 -
recreational services
Other business services 0.12 -
Telecommunications, computer,
-0.10 -0.75
and information services
Charges for the use of
-0.10 -
intellectual property
Government goods and services -0.13 -0.10
Transport -0.25 0.07
Travel -0.30 0.47
Maintenance and repair services -0.34 -
Manufacturing services on
-0.36 -
physical inputs owned by others
Construction -0.37 -
Source: https://www.trademap.org
Notes: The calculations are based on a 5-year average of 2012, 2013, 2014, 2015 and 2016 data. ‘-‘
indicates that data is unavailable.
1.30 Tariffs or excise duties can be levied by a government to increase the cost of
importing from abroad to protect domestic industries and/or raise revenue. The
impact of a tariff depends on the behaviour and responsiveness of domestic
consumers and businesses to a change in tariff. Graph 3, below, presents the
trade weighted applied MFN tariffs imposed by Vietnam and the UK16.
16
Tariffs can be calculated as a simple average over a range of goods, which is the average tariff across several tariff lines.
However, countries import different quantities of goods under different tariff lines which the simple average does not account
for. A weighted tariff adjusts the average tariff for the volume of trade under each tariff line.
13
Graph 3: Trade weighted tariffs between the UK and Vietnam by sector
Vehicles, aircraft and vessels

Prepared foodstuff; beverages, spirits, vinegar; tobacco
Footwear, headgear; feathers, artif. flowers, fans
Articles of stone, plaster; ceramic prod.; glass
Miscellaneous manufactured articles
Animal and vegetable fats, oils and waxes
Vegetable products
Vietnam UK
Live animals and products
Textiles and articles
Wood, cork and articles; basketware
Mineral products
Hides, skins and articles; saddlery and travel goods
Base metals and articles
Pearls, precious stones and metals; coin
Resins, plastics and articles; rubber and articles
Machinery and electrical equipment
Arms and ammunition
Products of the chemical and allied industries
Works of art and antiques
Instruments, clocks, recorders and reproducers
Paper, paperboard and articles
0% 10% 20% 30% 40% 50%
Source: International Trade Centre (ITC) market access maps. http://www.macmap.org/CountryAnalysis/.
1.31 Graph 3 shows that there is a large disparity in the tariffs imposed by each
country. On average, Vietnam imposes tariffs greater than 10% in 15 out of the
21 sectors listed. The UK does not exceed an average tariff of 10% in any sector.
Vietnam’s higher tariffs reflect its early stage of development, where protectionist
policies may be in place to give industries space to develop. It is important to
note that Vietnam can export to the EU under the Generalised Scheme of
Preferences (GSP). This allows developing countries to pay lower or no duties
on exports to the EU.17
1.32 Additionally, non-tariff measures such as regulatory and standards requirements

can restrict the trade of goods and services. Graph 4, below, indicates that
Vietnam imposes a larger amount and a greater variety of measures than the
UK. It should be noted that Graph 4 only shows the number of NTMs imposed
and not the extent to which they restrict trade.
17
http://ec.europa.eu/trade/policy/countries-and-regions/development/generalised-scheme-of-preferences/index_en.htm
14
Graph 4: Number of NTMs imposed by Vietnam and the UK as of 2018 (pre-EVFTA)
Imposed by Vietnam
Arms and ammunition
Mineral products
Prepared foodstuff; beverages, spirits, vinegar;…
Vegetable products
0 5 10 15 20 25 30 35
Sanitary and Phytosanitary Technical Barriers to Trade
Anti dumping Safeguards
Tariff-rate quotas
Imposed by UK
Arms and ammunition
Mineral products
Prepared foodstuff; beverages, spirits, vinegar;…
Vegetable products
0 5 10 15 20 25 30 35
Technical Barriers to Trade Sanitary and Phytosanitary
Source: WTO integrated analysis and retrieval of notified non-tariff measures
15
1.33 As well as tariffs and non-tariff measures, the complexity and cost of the trade
transaction process can have an impact on overall trade flows. Graph 5, below,
shows the Trade Facilitation Index (TFI) estimated by the OECD for the UK and
Vietnam, which covers 11 indicators. Each indicator, such as automation of
processes, is scored from 0 to 2, where 2 represents the best performance that
can be achieved. With the exception of advance rulings, the data shows that the
UK is much easier to trade with than Vietnam.
Graph 5: OECD trade facilitation index
Information Vietnam
availability
2.0 United Kingdom
Governance & Trade community
Impartiality involvement
1.5
External border 1.0

agency Advance Rulings
cooperation
0.5
Internal border 0.0

Appeal
agency
procedures
cooperation
Procedures Fees & charges
Automation Documents
Source: OECD (http://www.oecd.org/trade/facilitation/indicators.html)

Notes:
A-Information Availability Publication of trade information, including on internet and enquiry points.
B – Involvement of the
The degree to which consultations are carried out with traders.
Trade Community
Prior statements by the government to requesting traders concerning the classification, origin,
C –Advance Rulings valuation method, etc., applied to specific goods at the time of importation; the rules and
process applied to such statements.
D- Appeal Procedures The ability to appeal administrative decisions by border agencies.
E – Fees and Charges Disciplines on the fees and charges imposed on imports and exports.
Simplification of trade documents; harmonisation in accordance with international standards;
F – Documents
acceptance of copies.
G – Automation Electronic exchange of data; automated border procedures; use of risk management.
Streamlining of border controls; single submission points for all required documentation (single
H – Procedures
windows); post-clearance audits; authorised economic operators.
Co-operation between various border agencies of the country; control delegation to customs
I – internal cooperation
authorities.
J – External cooperation Co-operation with neighbouring and third countries.
K – Governance and
Customs structures and functions; accountability; ethics policy
Impartiality
16
1.34 In 2016, HM Revenue and Customs estimated there were 2,874 UK firms
exporting goods to Vietnam and 2,611 UK firms importing goods from Vietnam.
Graph 6, below, highlights the breakdown of businesses trading with Vietnam by
sector. It should be noted that the values for ‘motor vehicles,’ ‘aerospace,’ and
‘pharmaceuticals’ have been supressed due to disclosure control procedure. In
terms of goods trade, ‘other manufacturing’ has the highest number of firms
importing from Vietnam (147), whilst ‘electronic and electrical equipment’ has the
highest number of firms exporting to Vietnam (351).
1.35 Data is not available on the number of business that trade in services. The data
presented as ‘services’ refers to trade in goods carried out by businesses
classified as ‘services’. When looking at the breakdown of UK businesses by
industry, the service sector as a whole has the highest number of firms trading
goods with Vietnam. In 2016, 1,429 UK service industry firms exported goods to
Vietnam and 2,003 UK service industry firms imported goods from Vietnam.
Graph 6: UK businesses exporting to and importing from Vietnam in 2016
Mining, Petroleum products and Waste

Imports
Other
Exports
Chemicals
Agriculture and Food
Machinery and equipment
Electronic and Electrical equipment
Other manufacturing
Services
0 500 1,000 1,500 2,000
Source: IDBR overseas trade statistics country data tables 2016. https://www.gov.uk/government/statistics/uk-
trade-in-goods-by-business-characteristics-2016.
Notes: The methodology used to compute these statistics is still under development by HMRC. All data should be
considered experimental official statistics.
17
2 Strategic overview of the EVFTA
2.1 Vietnam is one of the fastest growing countries in ASEAN. Growth in Vietnam’s
economy is expected to continue and is expected to be around 5% in 2030.
Vietnam has an increasingly open and trade-driven economy, and acts as a
burgeoning advocate of free trade in the Asia-Pacific region. This is an
encouraging trend, particularly given Vietnam’s status as a developing country.
Vietnam is indeed the only lower income country to be a member of the
Comprehensive & Progressive Trans-Pacific Partnership (CPTPP), and the
EVFTA itself is testament to Vietnam’s commitment to negotiating ambitious and
comprehensive liberalisation on a more equal footing with their trade partners,
consciously moving away from reliance on unilateral preferences.
2.2 More broadly, Vietnam’s centrality to trade and development relations in the
region is both a cause and symptom of Vietnam’s growing leadership within
ASEAN. Vietnam has emphasised ASEAN’s central role in facilitating regional
dispute management and has been at the core of regional unity and stability.
According to a recent Brookings Institute paper, “Vietnam has not only socialized
quickly into the Southeast Asian community, but it has also proven capable of
taking a more central role. Twenty years after joining ASEAN, Vietnam is
arguably the most active player in the region in terms of foreign policy.” 18
2.3 The EU guide to EU-Vietnam Free Trade Agreement explains that bilateral trade
and investment links between the EU and Vietnam have steadily strengthened
since the two sides established formal diplomatic relations in 1996. 19 It goes on
to explain how, for many years, the EU has been Vietnam’s second most
important two-way trading partner after China. The EVFTA provides business
opportunity for engagement with Vietnam with its vibrant economy of more than
95 million consumers, a growing middle class and a young, dynamic
workforce. The European Commission launched the negotiations for an
ambitious and comprehensive free trade agreement with Vietnam in June 2012.
Negotiations concluded in December 2015 and a text for the Agreement was
published on 1 February 2016.
2.4 The primary aim of the EVFTA is to reduce barriers to trade and consolidate
preferential trade access over the long-term, providing certainty to businesses
and promoting economic growth, job creation and greater choice for consumers.
The EVFTA aims to address specific concerns across a range of areas, including
tariffs on goods, services market access, government procurement, intellectual
property rights protection. Vietnam’s developing country status has seen the EU
accept a degree of asymmetry in negotiations. However, this has not reduced
ambition from Vietnam on trade liberalisation under the FTA. Asymmetry
concessions have primarily been made in the form of staging periods to allow
certain provisions within the EVFTA to be gradually introduced over a number of
years.
18
2.5 Along with these priorities, the EVFTA also includes a comprehensive chapter
on trade and sustainable development (TSD), reaffirming obligations to respect
universal human rights principles. It also contains a legally binding link to the EU-
Vietnam Partnership and Cooperation Agreement (EVPCA), which includes a
human rights clause and a provision for the right to take appropriate measures
(including the suspension of agreements) in case of major violations.
2.6 Under the TSD chapter, Vietnam also committed to implement and ratify the
three remaining core International Labour Organisation (ILO) conventions. 20 The
Vietnamese are working with the ILO, and a draft decree is planned for 2019,
with the conventions to being applied after the FTA enters into force (between
2019 and 2023). As part of their CPTPP commitments, Vietnam has a period of
five years after the ratification of the agreement, during which it must implement
conventions 87 and 98. As Vietnam intends to ratify the CPTPP agreement in
autumn 2018, Vietnam will have until the end of 2023 to ratify all missing ILO
conventions.
2.7 The Agreement will eliminate nearly all tariffs (over 99%), except for a small
number of tariff lines for which the EU and Vietnam agreed on partial
liberalisation through zero-duty Tariff Rate Quotas (TRQs). This is a far-reaching
tariff elimination never before achieved with a developing country, but with
adequate transition periods to allow Vietnam to adapt. Vietnam will liberalise 65%
of duties on EU exports at entry into force, with the remainder of duties being
gradually eliminated over a 10-year period. EU duties will be eliminated over a
7-year period.
2.8 The agreement also covers non-tariff barriers to trade and other trade related
aspects including:
 Trade in Goods, including cars and pharmaceutical products

 Customs and Trade Facilitation
 Rules of Origin
 Technical Barriers to Trade
 Sanitary and Phytosanitary Measures
 Intellectual Property Rights
 Geographical Indications
 Services and E-commerce
 Investment
 Government Procurement
 Sustainable Development
 Renewable Energies
 Antitrust, Mergers, State-Owned Enterprises, Subsidies
18
Please see this link https://www.brookings.edu/opinions/vietnams-evolving-role-in-asean-from-adjusting-to-advocating/
19
Please see this link http://trade.ec.europa.eu/doclib/docs/2016/june/tradoc_154622.pdf
20
Conventions 87, 98 and 105 related to freedom of association, right to collective bargaining and elimination of forced labour.
19
 Trade Remedies and Dispute Settlements
2.9 EVFTA will enable UK firms to export and import at a lower cost and give more
opportunity for UK businesses to bid for public procurement contracts in Vietnam.
It will increase the welfare of UK households by lowering the price of goods and
services and increasing consumer choice due to greater competition.
2.10 EVFTA also provides the basis for mutual recognition of conformity assessment
bodies and acceptance of their test assessments to reduce the costs of such
compliance for many sectors. However, EVFTA will not change EU standards
and regulations such as those related to food safety, product safety, consumer
protection, health, environment, social or labour standards. Without exception,
all imports from Vietnam will have to continue to comply with EU product rules
and regulations. Significantly in EVFTA, the EU and Vietnam resolved to
preserve their ability to achieve legitimate policy objectives, such as public
health, safety, environment, public morals and the promotion and protection of
cultural diversity including the ability of governments to subsidise cultural
activities.
2.11 After the Court of Justice of the European Union Opinion (CJEU) regarding the
Singapore FTA and the division of competences between the EU and Member
States, the EVFTA was revised to be an EU exclusive competence only
agreement. This revised and final text was published in August 2018. The May
2017 CJEU Opinion on the EU-Singapore FTA (as drafted at that time) was that
certain provisions within the draft investment chapter including mechanisms to
resolve investor-state disputes were of shared competence between the EU and
its Member States. The Commission and Vietnam subsequently removed the
shared competence elements to enable EVFTA to be presented as an EU-only
competence agreement. The investment protection element is presented as a
distinct mixed Investment Protection Agreement (EVIPA). EVIPA has not been
included in the scope of this impact assessment.
2.12 Separating the investment chapter from the rest of the agreement enables
EVFTA as an EU-only competence agreement to enter into force in a more
streamlined manner than a shared competence agreement. The EVIPA will need
ratification by all EU Member States (which took close to five years with the EU-
Korea FTA). As such we do not presently expect, both before the UK leaves the
EU and during the proposed Implementation Period, there to be any impact on
investors or the UK and Vietnam as a result of the EVIPA. The UK-Vietnam
Bilateral Investment Treaty (BIT) remains fully in force.
2.13 The EVFTA also supports a long-term secondary objective of a regional FTA
between the EU and ASEAN. The EVFTA, EVIPA, the EU-Singapore FTA and
IPA act as benchmarks for further ASEAN agreements, setting the scope and
20
ambition for further bilateral EU FTAs with countries across the region and an
overarching EU-ASEAN FTA in the long-run. 21
3 Problem under consideration
3.1 The European Commission has presented a proposal on signature and

conclusion of this Agreement to the Council of the European Union.
3.2 The Council will now decide whether to formally adopt the necessary Council
Decision authorising signature and conclusion of the Agreement. In the past,
Council Decisions on signature of EU trade agreements have typically been
agreed through Common Accord, requiring the agreement of all Member States.
We expect this to be the approach followed for the EU-Vietnam FTA.
3.3 The UK Government has to establish its position on this (which will be subject to
UK Parliamentary scrutiny).
21
Within the ASEAN region, the EU is currently negotiating a bilateral FTA with Indonesia. Negotiations with Malaysia,
Thailand, the Philippines and Burma are on hold.
21
4 Rationale for intervention
4.1 As a global champion of free trade, the UK government has long supported
initiatives liberalising the trading landscape. On this basis the UK welcomes the
EU’s ambitious and extensive FTA agenda and continues to support the full
range of EU FTAs as a means of driving economic growth, creating jobs and
promoting consumer choice. The EVFTA can contribute positively to this
overarching objective.
4.2 UK Government support for the signature of EVFTA would be a demonstration

of this commitment, and a positive move by the UK as an EU Member State in
demonstrating support for Vietnam and for global trade.
4.3 The rationale for intervention is to provide UK support for the entry into force of
the agreement, and to realise the benefits for the UK and Vietnam described in
this impact assessment. The range of tariff and non-tariff barriers that the
agreement seeks to address should help to improve bilateral trade flows, provide
certainty for UK businesses and make it easier for our companies to operate in
the Vietnamese market. Failure to do so could see the EU and Vietnam continue
to trade on WTO MFN terms, which is not the Government’s preferred option.
4.4 The Government seeks continuity in the UK’s existing trade relations when it
leaves the EU, including continuity of existing EU FTAs such as the EVFTA, to
avoid disruption for businesses and consumers. UK support for the EVFTA at the
Council will demonstrate the UK's commitment to this agreement and provide
clear endorsement for continuing the provisions once the UK leaves the EU.
4.5 Abstention in any vote in Council on signature and conclusion of the agreement,
could prevent common accord. Such action might be seen as a failure by the UK
to demonstrate a duty of sincere cooperation as an EU Member State. It would
also send a negative signal to the global trading community about UK support
for rules-based international free trade and, specifically, to Vietnam.
22
5 UK policy objectives
5.1 The UK has always been deeply committed to free and open international trade
and investment as drivers of growth, prosperity, jobs, and consumer choice.
Trade has lifted millions out of poverty, and supports peace and promotes
security. It is well established that trade is beneficial to both partners to a trade
agreement, through:
 more consumer choice in the variety and quality of goods and services,
 lower prices through increased competition and efficiency
 higher productivity and,
 higher real wages and living standards for the countries engaged.
5.2 Free trade agreements, such as the EU-Vietnam FTA aim to increase trade and
reduce trade barriers.
5.3 The UK’s policy objectives are to support the EU’s ambitious trade agenda and
as part of this support the signature and implementation of EVFTA to promote
bilateral trade and increase economic growth. This will be achieved by a)
eliminating most tariffs and b) reducing non-tariff measures that businesses face
when trading goods and services and when investing abroad. The EVFTA will
enable UK firms to export and import at a lower cost and give more opportunity
for UK businesses to bid for public procurement contracts in Vietnam.
Furthermore, the EVFTA will increase the welfare of UK households by lowering
the price of final goods and services and increase consumer choice due to
greater competition.
5.4 As well as promoting bilateral trade and growth in Vietnam, the UK’s ratification
of EVFTA would:
 Provide a practical demonstration to the EU of the UK’s commitment to

support EU trade policy whilst still a Member State;
 Demonstrate our support to Vietnam;
 Demonstrate the Government’s intention to work with Vietnam to ensure
continuity in our trading relationship after UK EU exit.
23
5.5 The Government is committed to maintaining continuity of trade relations to
deliver certainty and stability for businesses and consumers when we leave the
EU. UK support for EVFTA at the Council will demonstrate the UK’s commitment
to this agreement and provide clear endorsement for continuing the provisions
once the UK leaves the EU.
5.6 Overall, the Government supports the EVFTA and advocates swift
implementation of the agreement.
6 Description of options considered
6.1 Two options have been considered, with evaluation against a baseline where
EVFTA is not in force.
Option 1: UK supports signature and conclusion of the EVFTA
6.2 The Government’s preferred option is for the UK to vote in favour of signature
and conclusion of the EVFTA so that it can be implemented (pursuant to approval
from the European Parliament and ratification by Vietnam).
Option 2: UK does not support signature and conclusion of EVFTA
6.3 The other option is for the UK to not support signature and conclusion of the
agreement. In this case, the means by which Council vote could have a bearing
on the outcome.
6.4 Should Council approval be sought via Common Accord, failure by one or more
Member States to vote in favour would prohibit the agreement from being signed
and concluded. Whilst in practice there could be scope to engage in dialogue to
try to unblock signature, the practical impact of the EVFTA not being signed and
concluded would be the EU and Vietnam continuing to trade on WTO, Most
Favour Nation (MFN) terms and, for Vietnam, under the Generalised Scheme of
Preferences. Under this option the UK does not accrue any additional costs and
benefits. This is the baseline of this IA.
6.5 Should Council Approval be sought alternatively via Qualified Majority Vote,
failure by the UK to support signature would not itself stop the Council reaching
agreement on EVFTA being signed if a sufficient number of other Member States
vote in favour. The impact then would be a delay to the accrual of benefits, which
we cannot quantify, and presentational issues.
24
7 Monetised and non-monetised costs and benefits of each option
7.1 This section will look in depth at the costs and benefits of each policy option
under consideration, focussing on the impacts to UK businesses, consumers,
and the wider economy.
7.2 Most of the results reported in this section are derived from Computable General
Equilibrium (CGE) modelling. This type of modelling is appropriate when there is
a significant change in trade policy and an assessment of the impacts on the
whole economy is needed. The model considers linkages between domestic
markets within each economy and provides impacts at a sectoral and aggregate
level. It also considers the knock-on consequences to trade flows of third parties,
reflecting trade creation and trade diversion effects, as well as the allocation of
resources within an economy.
7.3 CGE analysis can provide a useful indication of the potential magnitude of
economic impacts resulting from policy changes. CGE results should not,
however, be treated as a forecast or prediction of the future. Annex A lays
out further details on CGE modelling.
Economic appraisal the EU-Vietnam Free Trade Agreement on the UK

7.4 We draw on external evidence from “The impact of the EU-Vietnam FTA on the
UK” (2019), a study commissioned by DIT and conducted by Paul Baker and
David Vanzetti.22 The estimates in this external study are based on the authors’
interpretation of the EVFTA text and their judgement on the additional market
access offered under the agreement. The assumptions used in their study are
therefore subject to a degree of uncertainty. The economic analysis presented in
the external study cannot fully capture the comprehensiveness and complexity
of the EVFTA. Nonetheless, this is the best available source to examine the
impacts of EVFTA for the reasons set out below:
i. This study specifically looks at the impact of the FTA on the UK. This
reduces the need to make assumptions around the proportion of the EU
benefits attributable to the UK.
ii. The study applies a CGE model which shows the impacts of a trade
agreement across the whole economy rather than in one specific sector.
iii. This study applies a dynamic model, meaning we are able to understand
how benefits accrue over time.
iv. This study assumes different levels of service liberalisation across different
sectors based on the content of the final EVFTA text.
22
Source: Baker and Vanzetti (2019). ‘Impacts on the United Kingdom of the EU-Vietnam FTA’.
25
7.5 As mentioned above, there are limitations of the external study. As well as being
based on the authors’ interpretation of the EVFTA text and their judgement on
the additional market access offered under the agreement, the study does not
explore the microeconomic (firm level), environmental and social impacts of the
EU-Vietnam FTA. In addition, the analysis is based on the structure of the
Vietnamese and UK economies in 2014.
7.6 We set out the impacts of the EVFTA on UK GDP, bilateral exports, bilateral
imports, total exports and total imports as well as sectoral effects. We also use
this study to assess the impacts on consumer prices and domestic output. The
estimated impacts can vary depending upon the assumptions built into CGE
modelling.
Key assumptions
 The baseline is one where the EVFTA is not in force across the EU28 and
Vietnam. Under the baseline scenario the EU28 trades with Vietnam under
the Most Favoured Nation commitments agreed at the WTO and not under
the preferences contained in the EVFTA. The modelling assumes Vietnam
trades with the EU28 under the GSP and therefore at a lower tariff rate
than the MFN rate.
 For modelling purposes, the EU and UK continue to trade on current terms

and the UK and Vietnam trade on equivalent preferential terms as those set
out in the EVFTA for the duration of the assessment period after the UK has
exited the EU. It is the Government’s intended policy to ensure continued
access to the preferences set out in the EVFTA after the UK leaves the EU.
 The impact of the trade agreement is modelled over a 10 year period up to

2030. Tariff eliminations negotiated in the Comprehensive and Progressive
Agreement for Trans-Pacific Partnership (CPTPP), Comprehensive
Economic and Trade Agreement (CETA) between the EU and Canada and
the EU-Singapore FTA are factored into the baseline. However, the
reduction in regulatory barriers to trade negotiated in these agreements are
not included in the baseline. See Annex B for information on how the
Comprehensive and Progressive Trans Pacific Partnership (CPTPP) could
affect this baseline.
 The baseline data underpinning the CGE analysis captures the pattern of
world trade up to 2014. Since then, the EU has concluded several trade
agreements including the Comprehensive Economic and Trade Agreement
(CETA) between the EU and Canada and the EU-Singapore FTA. Equally
Vietnam is a member of the Comprehensive and Progressive Trans Pacific
Partnership (CPTPP) and is currently in the process of ratifying the trade
agreement. These agreements could result in trade diversion between the
UK and Vietnam. Baker and Vanzetti (2019) account for tariff eliminations
26
set out in these FTAs to provide a better assessment of the EUVFTA on the
UK economy.23
 Agreements not yet in force (EU-Singapore) have been included in the

baseline to ensure that the modelling can provide a more accurate
assessment of the impact of the EVFTA between now and 2030.
 The baseline cost to trade in services is based on the study produced by the
World Bank published in 2014.24
 The degree to which the EVFTA reduced service regulatory barriers to trade
is based on the Baker and Vanzetti’s assessment of the agreement text.
 Baker and Vanzetti (2019) use the United Nations Conference on Trade and
Development (UNCTAD) NTM dataset to estimate the baseline degree of
regulatory alignment between the UK and Vietnam on goods trade. The
authors estimate the scope for further regulatory convergence, as a result
of the EVFTA, using econometric regression analysis.
23
See Annex B for information on how the Comprehensive and Progressive Trans Pacific Partnership (CPTPP) could affect
this baseline.
24
http://documents.worldbank.org/curated/en/137321468331910699/Estimates-of-ad-valorem-equivalents-of-barriers-against-
foreign-suppliers-of-services-in-eleven-services-sectors-and-103-countries
27
Assessment of option 1: UK supports signature and conclusion of the
agreement and it is implemented
Overall benefits to the UK Economy
7.7 Compared to a baseline in which the EVFTA is not in force, the beneficial
impact of the EVFTA on UK GDP is estimated to be around £390 million
(0.01%) in the long run. UK exports to, and imports from, Vietnam are estimated
to increase by £490 million (60%) and £1.7 billion (33%) respectively per annum
in the long run. As set out in section 2, the UK had a trade deficit with Vietnam
in 2016. The implementation of the EVFTA is expected to increase the UK’s trade
deficit with the Vietnam. It is important to note that gains in UK imports from
Vietnam will result in lower UK input production cost for UK businesses and lower
prices for UK consumers. See Annex C for further details on the factors affecting
GDP. As mentioned above, the estimates in the external study are based on the
authors interpretation of the EVFTA text and their judgement on the additional
market access offered under the agreement and is therefore subject to a degree
of uncertainty.
7.8 The sectors in the UK that are expected to experience the greatest increase in
exports to Vietnam are financial and insurance services (£110 million, 48%
increase), business services (£80 million, 50% increase) and air transport (£80
million, 118% increase). UK business are also expected to gain from cheaper
imports from Vietnam. UK imports from Vietnam are expected to increase by the
greatest amount in wearing apparel (£530 million, 78% increase), leather (£460
million, 94% increase) and motor vehicles and transport equipment (£400 million,
17% increase). UK total exports to, and total imports from, the world are
estimated to increase by £350 million (0.09%) and £120 million (0.01%) per
annum respectively in the long run. Consumer welfare is expected to increase
£290 million per annum. The net impact of EVFTA on UK GDP is accounted for
in the total Net Present Value (NPV) of the agreement presented in Section 9.
7.9 The benefits identified under this policy option are expected to outweigh the costs
relating to one-off familiarisation costs, ongoing compliance costs, foregone
benefits to government revenue, and the additional administration needed to
trade under EVFTA preferences. The government’s preferred option is to see
the EVFTA enter into force in order for the UK to gain these benefits.
7.10 The section below assesses the direct and indirect impacts of EVFTA on UK
businesses, UK consumers, the UK Exchequer and wider impacts. We define
direct impacts as those that automatically affect businesses, customer and the
UK Exchequer and does not assume any behavioural change. For example, the
removal of Vietnamese regulations allows UK business to export to Vietnam
automatically at a lower cost. In comparison, indirect impacts are those that
require a behavioural response from businesses. For example, UK firms may
increase domestic production to increase their exports to Vietnam.
28
The net impacts of EVFTA to UK businesses
a) Direct benefits to UK businesses from a reduction in tariffs and regulatory

barriers to trade
(i) Monetised impacts
7.11 UK businesses will benefit from reduced tariffs and non-tariff barriers on both
exports to and imports from Vietnam. As a result, UK goods and services will be
more price competitive in Vietnam. UK producers will be able to import a greater
choice of intermediate goods and services at a lower cost. The following section
outlines the additional market access that firms will receive upon the EVFTA’s
entry into force.
Tariff and non-tariff barrier reductions in the trade of goods
7.12 EVFTA dismantles nearly all tariffs except for a few lines that are subject to duty-
free tariff rate quotas. At entry into force, 65% of EU exports to Vietnam will be
duty free. The remaining trade, with the exception of a few products, will be
liberalised after 10 years. The elimination of tariffs is treated as a transfer as the
reduction of cost to UK businesses is a revenue that otherwise would have been
gained by the UK Exchequer. The agreement will eliminate 99% of all tariffs
currently impose by Vietnam and the EU in the long run.
7.13 The table below sets out how the tariffs imposed by the EU and Vietnam change
after the implementation of the EVFTA. In general, Vietnam’s average tariffs on
goods are higher than those imposed by the EU. The most significant tariff cuts
to Vietnam’s schedule are seen for rice (10.8 percentage point tariff reduction)
and wearing apparel (9.3 percentage point tariff reduction). Sectors which will
still be relatively protected in Vietnam are pork and poultry where the tariff will be
at 12.1%. The largest tariff reductions by the EU and therefore the UK can be
seen in beverages and tobacco (27.8 percentage point reduction), wearing
apparel, sugar and textiles (full tariff elimination for all).
29
Table 4: Changes in tariff schedules
Vietnam's tariffs on UK/EU goods UK/EU tariffs on Vietnam's goods
Tariffs in
2030 post Percentage Tariffs in
Baseline* EVFTA point Baseline* 2030 post Percentage
(%) (%) change (%) EVFTA (%) point change
Rice 23.4 12.7 -10.8 - - -
Wearing apparel 9.3 0.0 -9.3 17.4 0.0 -17.4
Leather 6.9 0.0 -6.9 9.5 2.2 -7.3
Food products 6.3 0.0 -6.3 7.5 1.5 -6.0
Textiles 4.5 0.0 -4.5 10.5 0.0 -10.5
Pork and poultry 16.0 12.1 -3.9 6.6 1.5 -5.1
Beverages & tobacco 4.7 1.5 -3.2 44.0 16.2 -27.8
Motor vehicle & trans
equip 2.7 0.0 -2.7 26.6 11.7 -14.9
Fishing 2.7 0.0 -2.7 8.7 0.0 -8.7
Sugar 2.6 0.0 -2.6 12.6 0.0 -12.6
Chemical, rubber &
plastics 1.8 0.4 -1.4 2.8 0.0 -2.8
Mineral products 0.9 0.2 -0.7 7.8 0.0 -7.8
Manufactures 0.1 0.0 -0.1 5.3 0.0 -5.3
Vegetables, fruit, nuts 0.1 0.0 -0.1 5.6 0.0 -5.6
Other crops 0.03 0.02 0.0 4.5 2.7 -1.8
Petroleum, coal
products - - - 7.8 0.1 -7.7
Paper products,
publishing - - - 6.8 0.0 -6.8
Beef and veal - - - 6.2 0.0 -6.2
Dairy products - - - 11.6 7.6 -4.1
Electronics - - - 2.5 1.0 -1.5
Forestry - - - 0.5 0.0 -0.5
Machinery and
equipment - - - 3.5 0.0 -3.5
Minerals 0.01 0.01 N/A 2.6 0.0 -2.6
Wood products 0.1 0.1 N/A 1.3 0.0 -1.3
Ferrous metals 0.03 0.03 N/A 0.9 0.5 -0.4
Resources - - - - - -
Source: Baker and Vanzetti (2019)
Notes: Vietnam’s baseline tariffs on EU imports reflect MFN tariffs whereas the EU’s baseline
tariffs on imports from Vietnam reflect GSP tariffs.
30
7.14 Machinery and mechanical appliance products are the largest UK goods
export to Vietnam. UK exports were £107 million on average between 2015 to
2017 and accounted for 22% of all UK exports to Vietnam. Under the EVFTA,
the 3.5% tariff imposed on UK exports in machinery and mechanical appliance
will be eliminated.
7.15 Pharmaceutical products are the second largest UK goods exports to Vietnam
and accounted for 12% of total UK exports to Vietnam on average between 2015
to 2017. UK exports to Vietnam in pharmaceutical products over this period were
on average £56 million per annum. Under the EVFTA, Vietnam’s WTO tariffs on
pharmaceutical products (up to 8%) will be fully eliminated.25
7.16 Automobiles – EVFTA provisions improve market access for European cars
entering Vietnam. Investment and manufacturing of motor vehicles and transport
equipment will remain restricted, but tariffs on EU cars (up to 78%) will be
reduced to zero after 10 years and on car parts to zero after 7 years.26 The
EVFTA contains an annex devoted to Non-Tariff Measures (NTMs) in the
automobile sector which comes into effect three years after entry into force. The
agreement builds on the 1958 United Nations Economic Commission for Europe
(UNECE) agreement which sets out a common set of technical prescriptions and
protocols for type approval of vehicles and components. As a result, Vietnam will
accept on its market EU parts and equipment complying with UNECE
regulations. Furthermore, Vietnam will discontinue its requirements for
conformity of production reports.
7.17 Alcoholic beverages – Vietnam imposes relatively high tariffs on alcoholic

beverages (50% on wine and 48% on spirits).27 Both wine and spirits can be
traded duty free after 7 years from entry into force and tariffs on beer exports will
be eliminated after 10 years. The UK exported £9 million in alcoholic beverages
to Vietnam on average between 2015 to 2017. These products can be traded at
a lower cost under the EVFTA.
7.18 Clothes (wearing apparel) and textiles – the EVFTA fully eliminates tariffs
faced by UK exporters of clothes (17.4 percentage point reduction) and textile
products (10.5 percentage point reduction). On average between 2015 to 2017,
the UK exported around £7.5 million in clothing to Vietnam.
7.19 The UK imported just under £500 million in clothes and material (wearing
apparel) on average between 2015 and 2017 and accounted for 13% of all UK
imports from Vietnam. Under the EVFTA, the EU’s average MFN tariffs on these
products (9.3%) are fully eliminated. UK businesses are therefore expected to
benefit from a reduction in input costs. These gains may be transferred to UK
consumers in the form of lower prices.
25
Main Benefits report http://trade.ec.europa.eu/doclib/press/index.cfm?id=1919.
31
7.20 Leather products – The EU’s MFN tariffs on leather products (6.9%) will be fully
eliminated under the EVFTA. The UK’s second largest imports from Vietnam was
footwear (£454 million imports on average from 2015 to 2017) and accounted for
12% of all UK imports from Vietnam. UK businesses are expected to benefit from
a reduction in cost associated with footwear and other leather products. These
gains may be transferred to UK consumers in the form of lower prices.
Non-tariff barrier reductions in the trade of services
7.21 The EVFTA aims to better align the regulations imposed on service trade
between the EU and Vietnam. The FTA is expected to significantly open up
access to Vietnam’s services sector. EU barriers to trade in services are
generally quite low. The EVFTA does however provide Vietnam more access to
the EU market for business and transport services.
7.22 Financial services - Vietnam commits to cross-border services for financial

data processing, advisory and intermediation and other auxiliary financial
services. At present EU businesses can own a maximum of 30% of all shares in
Vietnamese banks. Under the EVFTA EU businesses will be able to increase this
share to 49%.
7.23 Business services - The agreement provides better access in a number of

business sub-sectors. In sectors such as building cleaning, nursing and
physiotherapy services, Vietnam has offered new market access opportunities
to EU firms. Vietnam also abolished limitations in a number of business services
(e.g. architectural, urban planning and urban landscape architectural services).
7.24 Distribution services - Five years after the entry into force of the agreement,
Vietnam will stop requiring retailers to carry out an economic needs test (ENT)
when opening outlets. Until then, retailers will only need an ENT for their first
outlets (stores < 500m 2). In addition, Vietnam commits to ensure that the existing
licensing of spirits will not become more restrictive.
(ii) Non-monetised impacts
7.25 Pharmaceuticals - Vietnam will allow foreign pharmaceutical companies to

establish enterprises in order to import pharmaceuticals that have been
authorised to be sold on the Vietnamese market. Such foreign-invested
enterprises will be allowed to:
 Sell pharmaceuticals imported by them to distributors or wholesalers in Vietnam

 Build their own warehouses
26
Main Benefits report ht/trade.ec.europa.eu/doclib/press/index.cfm?id=1919.
27
Main Benefits and Agriculture report http://trade.ec.europa.eu/doclib/press/index.cfm?id=1919.
32
 Provide information about their product to health care practitioners and do
clinical study and testing.
7.26 Government procurement - After a transitional period of two years from entry
into force, EU suppliers will be allowed to bid for government contracts. From
that point the share reserved for domestic suppliers/producers will diminish over
15 years to a final share of 50%. The remainder will be open to all suppliers with
market access rights. Further to this, provisions on international property rights
will make Vietnam more attractive for producers of pharmaceutical products,
such as:
 Vietnam will provide regulatory data protection to pharmaceutical (as well as to

agri-chemical products) for five years.
 It will also provide an extension of patent protection, up to a limit of two years,
to compensate for delays in the marketing approval of pharmaceutical products
if the approval process takes more than 24 months.
 Vietnam will withdraw existing clinical trials requirements on ethnicity.
7.27 Geographical indicators – Under EVFTA various geographical indicators will

be protected upon entry into force of the FTA including ‘Rioja’, ‘Ouzo’ and
‘Grappa’. Of particular interest to the UK is the protection afforded to ‘Scotch
Whisky’, ‘Scottish Farmed Salmon’, ‘Irish Whiskey’ and ‘Irish Cream’.
7.28 Technical barriers to trade (standards) – EVFTA includes commitments for

Vietnam to:
 Encourage standardising bodies to participate in the preparation of international

standards by relevant international standardising bodies.
 Use relevant international standards as a basis for the development of domestic
standards.
 Avoid duplication of, or overlap with, the work of international standardising
bodies.
 Review national and regional standards not based on relevant international
standards at regular intervals, with a view to increasing their convergence with
relevant international standards.
 Notify technical regulations and conformity assessment procedures making
voluntary standards mandatory.
7.29 Technical barriers to trade (conformity assessment) – EVFTA includes

commitments for Vietnam to:
 Recognise EU certificates of conformity assessment on cars.

 Ensure that businesses have a choice amongst conformity assessment
facilities and ensure that there is independence and no conflicts of interest
between accreditation bodies and conformity assessment bodies.
 Consider joining or encourage its testing, inspection and certification bodies to
join any functioning international agreements or arrangements for
33
harmonisation and/or facilitation of acceptance of conformity assessment
results.
(b) Indirect benefits to UK businesses from a reduction in trade barriers
7.30 Analysis produced by Baker and Vanzetti (2019) estimates the EVFTA could
increase UK exports to Vietnam by approximately £490 million per annum
(60%) in the long run. This represents a situation where the full effects of the
agreement have been reflected in the economy (in 2030) compared against a
baseline where EVFTA is not in force for EU28 or Vietnam.
7.31 The elimination of tariffs and reduction in service regulatory barriers improve
market access opportunities for UK businesses to the Vietnamese market. Table
5 presents the top 10 UK sectors that gain the most in total exports from EVFTA.
Most of the export gains are in services, accounting for £430 million of the £490
million increase in bilateral exports gains to Vietnam. We expect the gains in the
service sectors to be the upper end scale of the impacts.
7.32 The top 10 sectors make up around 90% of the estimated increase in UK exports
to Vietnam. Baker and Vanzetti (2019) find that exporters of financial & insurance
(+£110m), business services (+£80m), air transport (+£80m) and communication
(+£50m) will gain the most from an increase in exports to Vietnam. As Table 5
shows the monetised impacts of the EVFTA and the associated increases in UK
total exports to the world are modest. However, the EVFTA is estimated to
significantly increase UK exports to Vietnam in percentage terms across a
number of sectors.
7.33 The modelling results provide a useful indication of the plausible magnitude of
impacts, and sectors where the impacts might be greatest, but the specific
figures should not be treated as a forecast or prediction of the future.
34
Table 5: Top 10 UK sectors export gains in goods and services in 2030 with EVFTA
Change in UK export to Vietnam Change in UK total world
per annum exports per annum
Sector Monetised Percentage Monetised Percentage
change change change change
Finance & insurance £110 million 48% £90 million Marginal increase
Business services £80 million 50% £20 million Marginal increase
Air transport £80 million 118% £70 million Marginal increase
Communication £50 million 145% £50 million Marginal increase

Marginal increase
Retail & wholesale trade £30 million 145% £30 million
Marginal increase
Other transport £20 million 134% £20 million
Marginal increase
Other services £20 million 61% £20 million
Marginal increase
Recreation and other services £20 million 49% £20 million
Marginal increase
Chemical, rubber & plastics £20 million 37% £10 million
Marginal increase
Sea transport £10 million 72% £10 million
Total top 10 bilateral exports £450 million
Total increase in exports £490 million £390 million
Total increase in net exports £490 million 60% £350 million 0.09%
Notes: Figures are presented in 2017 prices and may not sum due to rounding.
Total increase in net exports captures sectors which experience an increase and decrease in exports.
7.34 The EVFTA is estimated to increase UK imports from Vietnam by £1.7 billion due
to favourable preferential rates. Although the monetised impact is significantly
larger for imports compared to exports, it is smaller in percentage terms. The
increase reflects a 33% increase in UK imports from Vietnam. This could lead to
lower UK business costs for intermediate products. The elimination of tariffs and
the reduction in service regulatory barriers means UK businesses are expected
to be able to purchase goods and services at a lower cost compared to the
baseline, resulting in higher profits or lower consumer prices.
7.35 The table below shows the top 10 sectors in the UK that will import more goods
and services from Vietnam as a result of EVFTA. The main sectors in which the
UK will import more from Vietnam are wearing apparel (clothes and materials)
(+£530m), leather products (+£460m) and motor vehicle and transport
equipment (+£400m).
7.36 Whilst bilateral trade is estimated to increase significantly as a result of the FTA
(60% for exports and 33% for imports), the impact is much smaller on national
trade 0.9% for total UK exports and 0.1% for total UK imports. As the FTA offers
preferential access bilaterally, UK trade is diverted away from other destinations
to Vietnam.
35
Table 6: Top 10 UK sectors import gains in goods and services
Change in UK imports from Change in UK total world
Vietnam per annum imports per annum
Monetised Percentage Monetised Percentage
Sector change change change change
Wearing apparel £530 million 78% No change
Leather £460 million 94% Marginal increase
Motor vehicle & trans equip £400 million 17% No change
Business services nec £140 million 185% Marginal increase
Food products nec £60 million 24% Marginal increase
Textiles £40 million 55% Marginal increase
Air transport £30 million 66% Marginal decrease
Finance & insurance £20 million 45% Marginal increase
Chemical, rubber & plastics £10 million 8% Marginal increase
Other transport £10 million 98% Marginal increase
Total top 10 bilateral imports £1.70 billion £6 million
Total increase in imports £1.78 billion £150 million
Total increase in net imports £1.72 billion 33% £120 million 0.01%
Notes: Figures are presented in 2017 prices and may not sum due to rounding.
Total increase in net imports captures sectors which experience an increase and decrease in imports.
7.37 Trade liberalisation will increase UK business productivity by increasing

competition. UK businesses can specialise in the production of goods and
services that they are relatively better at producing, allowing them to expand
production, benefit from economies of scale and produce goods at a lower
average cost. In addition, UK businesses will have the incentive to reduce costs
and increase efficiency in the face of greater international competition.
7.38 There are several channels through which competition raises productivity, but
most importantly competition forces firms to innovate, coming up with new
products and processes which can lead to step-changes in efficiency.
36
c) Direct costs to UK businesses
7.39 Trading under EVFTA preferences is voluntary. UK business have the option to
choose whether to trade with Vietnam under EVFTA preference (i.e. under lower
tariffs) or the baseline MFN tariffs. Therefore, there is no net cost to businesses
for those who do not wish to trade under EVFTA preferences.
7.40 We attempt to monetise the direct cost to businesses where possible for both
one–off and ongoing costs. It is difficult to estimate business costs due to
availability of data and there are considerable uncertainties around the cost
estimates provided. For this reason, we provide ranges where possible and a
description of the costs and activities involved to demonstrate the impact on
businesses. Our best estimate of business impact costs has then been included
in the Total NPV calculations. There are some limitations to the data used in this
section, these include:
 Data on the preference utilisation of trade deals is not readily accessible.

This means that existing evidence on preference utilisation is limited.
 HMRC empirical data on the administration costs incurred by businesses to
trade are commercially sensitive and not available for this analysis.
7.41 There will be one-off costs to firms, enforcers, and customs and government
officials from reading and understanding the text of this agreement. It is not
possible to monetise the precise impact of this one-off cost, but we provide an
illustration of the potential impacts on UK businesses that trade with Vietnam. In
2016, HMRC estimated that around 2,900 VAT registered businesses exported
goods to Vietnam and around 2,600 VAT registered businesses imported goods
from Vietnam. Based on this, the upper bound of businesses that could be
trading with Vietnam in goods is 5,500 in 2016. This figure could be an
overestimate as it double counts firms who both export to Vietnam as well as
import from Vietnam. However, it does not consider the number of new
businesses that may trade with Vietnam as a result of EVFTA which may lead to
an underestimate. Secondly and importantly it does not capture the number of
business that trade in services which will lead to an underestimation.
7.42 Based on this number of firms, the aggregate cost to businesses currently trading
with Vietnam could range from £1.3 to £1.4 million. The method for this estimate
is shown in Annex D. Our central estimate of business impact costs are included
in the NPV calculations in section 9.
37
7.43 To trade under the EVFTA preferences, business are required to produce a
certificate to confirm the origin of the export content meets the rules of origin
requirements set out in the agreement. Businesses can submit rules of origin
forms to HMRC to process free of charge however this could take several days
to complete. Alternatively, businesses can choose to get an origins certificate
from the British Chambers of Commerce which processes the certificate in a
shorter period for a fee of £52.20.28
7.44 Recent academic studies (World Bank 2014, Ciuriak & Xiao 2014) estimate the
tariff equivalent trade costs associated with rules of origin administration and
compliance requirements ranges between 2% to 6%. These estimates vary
considerably depending on the methodology, time period, and the countries
under consideration. Further research (Keck and Lendle 2012) has shown that
utilisation of agreements can be very high, even where there are very small
preferential margins, which could not be the case in the presence of high
administrative costs.
7.45 Firms could face other one-off costs such as IT set-up costs and custom
declarations.
d) Indirect Costs to UK businesses
7.46 There are no monetised indirect impacts to UK businesses
7.47 UK business will be exposed to greater international competition with greater

trade liberalisation. This may cause a decline in production for domestic
businesses that are less competitive. However, due to data limitations it is not
possible to indicate which sectors may incur a decline in activity.
28
https://www.londonchamber.co.uk/cofo/ January 2019 Price List.
38
Impact on Consumer welfare
a) Direct benefits to UK consumers
7.48 UK consumers will be able to imports products at a lower cost due to the tariff
reduction on final goods. This can be viewed as an increase in consumer
purchasing power.
b) Indirect benefits to UK consumers
7.49 Consumption and consumer welfare will likely increase because of EVFTA due
to several reasons:
 As a result of the EVFTA, UK consumers will have a wider variety of choice in

the goods and services they can consume, as Vietnamese goods will become
less costly and easier to purchase. Prices may fall, and quality may increase.
 UK businesses will be able to import intermediate goods and services at a lower

price due to EVFTA preferences. This allows the income of consumers to go
further if firms pass lower import prices on to consumers in the form of lower
goods prices.
 As UK firms face greater competition from Vietnamese firms, aggregate

productivity may increase causing a subsequent increase in real wages.
Baker and Vanzetti (2019) find that consumer welfare increases by £290 million
per annum in the long run as a result of the EVFTA. These impacts are not
captured in the total NPV as seen in section 9 as the welfare gains are an
alternative way of looking at the impacts of GDP once accounting for price
changes following the implementation of the EVFTA.
c) Direct cost to UK consumers
7.50 There are no direct costs on UK consumers.
d) Indirect costs to UK consumers
7.51 It is possible that in some sectors the exit of UK firms from domestic markets
might reduce consumer choice.
Impact of EVFTA on the UK Exchequer
a) Direct benefits to the UK Exchequer
39
7.52 There are no direct benefits to the UK Exchequer.
b) Indirect benefits to the UK Exchequer
7.53 A loss in government revenue from reduced tariffs is in part a transfer to UK

businesses who benefit from lower trade costs under the EVFTA preferences,
and to consumers who will benefit from lower prices on final goods. The EVFTA
is expected to increase domestic economic activity in specific sectors of the
economy, which in turn will increase revenue for the UK Exchequer.
c) Direct costs to the UK Exchequer
7.54 The EVFTA is expected to increase domestic economic activity which will in turn
increase revenue. This will be offset to some extent by forgone revenue to the
EU and the UK from lower or eliminated tariffs on imports from Vietnam. To
present the maximum loss of revenue of the EVFTA we assume that all tariffs
are removed on entry into force. The UK exchequer could lose around £100
million from the elimination of all tariffs currently imposed on goods imported
from Vietnam. Table 7 illustrates this in more detail below. It should be noted
that that this is partly a transfer to UK consumers who may benefit from lower
prices. This impact is not captured in the total NPV as seen in section 9 as it is
implicitly captured within the impact on net UK GDP.
Table 7: Estimated foregone revenue in the UK from the reduction in tariffs

Top 5 Sector Name Estimated annual revenue
Textiles and articles £47 million
Footwear, headgear; feathers, artif. flowers, fans £36 million
Prepared foodstuff, beverages, spirits, vinegar, tobacco £7 million
Live animals and products £5 million
Vehicles, aircraft and vessels £5 million
Subtotal of Top 5 sectors £100 million
Total of all sectors £104 million
Source: Agriculture AVEs are sourced from the MacMaps, non-Agri AVEs are sourced from WITs
World Bank and trade flow data is sourced from HMRC trade database. The estimated foregone
revenue to the UK Exchequer from the elimination of tariffs imposed on Vietnam is based on average
trade flow data from 2015 to 2017.
Notes: AVEs do not include the various reductions that importers can get, e.g. inward processing
exemption, outward processing exemption.
Numbers may not sum due to rounding
40
d) Indirect costs to the UK Exchequer
7.55 There are no indirect costs to the UK Exchequer.
Assessment of policy option 2: UK does not support signature and conclusion

of the EVFTA
7.56 Under this option the Government opposes the Commission’s proposed
decisions on signature and conclusion of the EVFTA. If the Council choose to
use qualified majority voting and a qualified majority of Member States favoured
proceeding to signature, the EVFTA would still come into force. Under this
scenario, trading preferences set out in the EVFTA would apply to the UK and
Vietnam and the associated gains would correspond to those set out under
option 1.
7.57 Should the Council require agreement across the EU28 before proceeding, there
is a risk that the agreement would not be implemented, meaning the EU and
Vietnam would continue to trade on WTO MFN and GSP terms. Under this
scenario, the UK would not accrue any additional costs and benefits and is
therefore the same as under the baseline of this IA.
7.58 This is not the Government’s preferred option, as it runs counter to the
Government’s policies in relation to free trade and its support for an ambitious
EU trade policy. This could also damage the UK’s bilateral relations with Vietnam
and with the EU, which could make negotiations over future trading
arrangements more challenging.
41
8 Small and micro business assessment
8.1 This section provides a qualitative impact assessment of the EVFTA on Small
and Micro Businesses. It assesses whether the impact on the operations and
performance of small businesses are likely to be disproportionate compared to
larger businesses.
8.2 In 2016, there were 1,483 small and micro firms importing from Vietnam, and
1,609 small and micro firms exporting to Vietnam29. This reflects 57% and 56%
of the total number of firms importing/exporting to/from Vietnam respectively.
However, small and micro firms only represent 12% of import and 27% of
export value. Comparatively, while large firms make up 14% of both importing
and exporting firms, they account for 66% and 44% of import and export value
respectively.
Rules of Origin
8.3 Small and micro firms in the UK will be able to choose to export goods and
services under EVFTA preferences. These firms will have the incentive to export
to Vietnam if the reduction in tariffs outweigh the cost of complying with rules of
origin. If this cost is too high for small businesses, they can opt out and trade
under the baseline MFN tariffs and as a result will not incur an additional cost
above the baseline.
8.4 Cost will affect small business disproportionately to larger businesses as these
firms will face relatively higher fixed costs compared to larger firms. Furthermore,
small firms may not have the capacity and capabilities to deal with understanding
the process and regulations around complying with Rules of Origin requirements
compared to larger firms.
Tariff reductions
8.5 Small and micro firms in industries that are liberalised may expand production
and experience an increase in revenue as their products become cheaper for
Vietnamese importers. Similarly, small UK firms will be able to import products
from Vietnam at a lower cost. This could lead to small businesses becoming
more productive and competitive in the UK.
8.6 Some less competitive small businesses in the UK may be adversely affected by
greater competition from Vietnam. However, the net impact on small businesses
is expected to be positive.
29
Values for the number of sole traders have been supressed by HMRC so are not included in the count.
42
Mutual recognition agreements
8.7 The burdens of understanding and addressing technical barriers to trade such
as different conformity standards and regulatory requirements in Vietnam can be
disproportionately large for small businesses. EVFTA provides a basis for the
mutual recognition of certain standards, which could reduce the costs to business
of conformity assessments such as product testing. This may be of particular
benefit to small business exporters. In addition, small businesses in the UK might
benefit if they can import products at a lower cost as a result of reduced product
assessment costs in Vietnam.
43
9 Total Net Present Value impacts on the UK population under Option 1
9.1 Our estimate of EVFTA’s net impact on UK GDP is £391 million relative to a baseline where the agreement is not implemented
in the long run. The immediate gain in UK GDP is £474 million compared against a baseline where the agreement is not in
force. This gain stabilises in the long run steady state to £391million. The gains decline in later years because of greater tariff
reductions by 2030. Over time, greater tariff reductions across the EU and Vietnam are expected to result in negative terms of
trade effects for the UK relative to Vietnam. In other words, in the long run, the price of UK imports from Vietnam are higher
relative to the price of UK exports to Vietnam. Baker and Vanzetti (2019) find this result is driven by the relative price changes
of motor vehicles, chemicals rubber and plastics, manufactured goods, air transport, financial services and other business
services.
9.2 As shown in Table 8, below, in total the benefits to the UK are estimated to equal £6,350 million over a 15-year period. Costs
are estimated at around £1.35 million over the same period. Subsequently, it is estimated that the net impact, in present value
terms of option 1 is around £5,097 million over 15 years.
Table 8: The estimated total Net Present Value (NPV) of EVFTA across 15 years
Total Impacts on the UK (£m) Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 Total
Costs
(2017 Real Prices)
One-off familiarisation costs 0.81 0.34 0.20 1.35

Benefits
(2017 Real Prices)
Increase in UK GDP 474 467 460 453 446 439 429 420 410 400 391 391 391 391 391 6,350
Total NPV Costs 0.81 0.33 0.19 1.34
Total NPV Benefits 474 451 429 408 389 370 349 330 311 294 277 268 259 250 241 5,099
Total Business NPV 473 451 429 408 389 370 349 330 311 294 277 268 259 250 241 5,097
Note: The benefits are estimated to be £391 million in 2017 prices in the long run. This is discounted to calculate present value gains which is estimated at £241 million in appraisal year 15. We
do not expect all firms to incur the one-off familiarisation costs in the first year of EVFTA's implementation. We assume that 60% of the total one-off familiarisation cost to businesses (£0.8
million) occurs in the first year that EVFTA is implemented, followed by 25% in year two and 15% in year three.
44
10 Sensitivities
10.1 This section explores the degree to which our understanding of the net benefits
can change when considering the construction of a CGE model.
CGE modelling
10.2 CGE models are used widely to estimate the impact of trade policy changes.
However, there are several limitations of these models. The results depend on
the underlying assumptions and parameters that are used in the model, which to
some extent are subjective and difficult to estimate – for example estimating
elasticities in certain markets and regions. The results will also depend on the
data used in the model and the assumption that future outcomes depend on past
behaviour, which is not always the case. For example, if bilateral trade flows
between two countries are non-existent or negligible, trade cost reductions
facilitated by a trade agreement will not stimulate much impact in a CGE model.
10.3 However, CGE models can sometimes underestimate the full benefits of policy
changes, as it is difficult and often requires further assumptions to model a
comprehensive set of dynamic changes. For instance, this trade agreement is
likely to result in increased competition between firms, which could result in
higher levels of innovation. However, the positive impact of increasing innovation
is not included explicitly within the model.
10.4 With regards to a change in trade policy there are two specific parameters built
into CGE models that when altered have a substantial effect on the results:
Firstly, the elasticity that describes how tariff changes impact trade flows.
Secondly, the degree to which regulatory barriers between the EU and Vietnam
converge.
10.5 Through the use of CGE modelling we can understand the how GDP, trade,
welfare, domestic production can change from the implementation of a trade
agreement. However, these results cannot be added without double counting
benefits.
 Real GDP captures the impact of a trade agreement on the quantity of

output an economy can produce in the long run. This does not take into
account the impact of a trade agreement on the “terms of trade” – that is,
on the relative price of a country’s exports relative to the price of its
imports. In addition, it does not take into account the change in consumer
prices.
45
 Consumer welfare is used to assess the impacts on consumers when
prices fall due to trade liberalisation. This is measured using a method
called “equivalent variation” which looks at how much consumers would
need to be paid or compensated to keep them as well off in the absence
of the trade agreement.
Each of these can be calculated in a way that is consistent, but cannot be

added without double counting benefits.
46
11 Risks and assumptions
11.1 The section below sets out the key modelling assumptions regarding the
baseline, exchange rate, competition, employment and the UK’s relationship with
the EU.
11.2 Baseline assumptions: The baseline scenario in Baker and Vanzetti (2019)
assumes no changes in trade policy - tariffs and NTMs remain as they are at
present, subject to the conclusions of trade negotiations currently underway. The
study projects the world economy to 2020, 2025 and 2030. The study’s model
runs on the GTAP database, version 10. This is a commonly used database and
is seen to have the most update, internally consistent data on production,
consumption and international trade by country and sector. The database for the
model was benchmarked for 2014, then projected up to 2030 in real terms.
11.3 Economic growth: The analysis accounts for economic growth in the UK and
Vietnam. GDP growth in the UK is estimated to be 2.3% in 2015 and declines to
1.9% in 2030. In comparison, Vietnam’s GDP growth is estimated at 5.8% in
2015, takes a dip in 2020 and levels off at around 4.5% by 2030.
Graph 7: Year on year GDP growth assumed within the CGE analysis
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
UK Vietnam
Source: International Monetary Fund.
47
11.4 The UK and the EU’s relationship: The future trading agreement between the
UK and the EU is exogenous and for modelling purposes is assumed to be on
the current status quo basis.
11.5 Full employment: The study assume a fixed amount of employment in the UK
economy. This means workers based in sectors that contract following the
implementation of the EVFTA move to more productive sectors of the economy.
11.6 Market Structure: The analysis that all firms have the same characteristics and
sells the same type of products for the same price. There are no barriers to entry
into the market meaning businesses can enter and leave the market with ease,
making it a highly competitive market. In practice the structure of markets can
vary by sector depending on the barriers to entry and ability for firms to ascertain
a large market share. By assuming perfect competition, gains from an increase
in productivity and innovation are not explicitly accounted for. Therefore the
results presented in the impact assessment are towards the lower bound.
11.7 Sector aggregation: CGE models require an aggregation of sub sectors into
larger groupings. This can obscure specific sector impacts as NTMs or tariff
changes for sub sectors will be aggregated to a higher level.
11.8 Rules of Origin: For modelling purposes, the CGE analysis assumes full
diagonal cumulation of EU content in UK exports to Vietnam.
11.9 Service openness: Baker and Vanzetti (2019) make expert judgements on the
extent to which market access increases in service, using the Service Trade
Restrictiveness Index (STRI). The baseline costs associated with trade in
services between the UK and Vietnam are based on a study produced by the
World Bank published in 2014.30 The table below sets out the assumption used
in the CGE modelling. The degree of service liberalisation is greater in Vietnam
than in the EU. The communication and other transport sector are expected to
open up the most in Vietnam under the EVFTA. In comparison, businesses
services are assume to open up the most in the UK under the agreement. As
mentioned in section 7, the estimates presented in table 9 reflect the authors’
interpretation on the EVFTA text and their judgement of the additional market
access offered under the agreement and is therefore subject to a degree of
uncertainty. Overall, we expect the cost reduction presented in table 9 to be the
upper end scale of the impacts.
Table 9: Degree of liberalisation in services

UK exports to Vietnamese exports to
Vietnam (%) the UK (%)
Communication 75 2
Other transport 70 28
Sea transport 50 20
Retail & wholesale trade 50 6
30
http://documents.worldbank.org/curated/en/137321468331910699/Estimates-of-ad-valorem-equivalents-of-barriers-against-
foreign-suppliers-of-services-in-eleven-services-sectors-and-103-countries
48
Business services nec 25 48
Air transport 72 20
Finance & insurance 25 16
Recreation and other services 25 0
Other services 25 0
Notes: The degree of liberalisation is bounded between 0 to 100, where 100 is
complete opening of the sector.
11.10 NTMs of goods: The EVFTA is expected to remove a limited number of NTMs.
Some regulatory barriers to trade Regulatory changes will also occur across food
products, beverages and chemicals. In general the EU is expected to make fewer
regulatory adjustments.
11.11 The reduction of regulatory barriers to trade are often expressed as an Ad

Valorem Equivalent (AVE) or tariff equivalent. However, Baker and Vanzetti
(2019) express this in the form of a ‘productivity shift’. In other words, a reduction
in regulatory barriers is reflected as a reduction in production cost to businesses.
It is important to note that the modelling does not capture the elimination of NTMs
but models the impact of regulatory convergence. The authors source the
baseline NTMs between the UK and Vietnam from the United Nations
Conference on Trade and Development (UNCTAD) NTM database. A gravity
model is used to assess the how much input prices change for businesses as a
result of greater regulatory convergence between the EU and Vietnam.31 The
table below shows the reduction in production cost for businesses when trading
under the EVFTA. For example, the production cost for UK export to Vietnam in
beverages and tobacco and chemicals, rubber and plastics have reduced by 2%
and 1.9% respectively. As mentioned in section 7, the estimates presented in
table 10 reflect the authors’ interpretation of the EVFTA text and their judgement
on the additional market access offered under the agreement and is therefore
subject to a degree of uncertainty.
Table 10: Reductions in domestic production cost by sector as a result of

EVFTA
EU/UK exports to Vietnam’s exports to
Vietnam EU
Rice 3.7 1.4
Sugar 2.8 1.2
Forestry 2.5 1.3
Food products nec 2.3 1.3
Dairy products 2.3 1.5
Fishing 2.2 1.2
Vegetables, fruit, nuts 2.2 1.5
Pork and poultry 2.1 1.4
31
The database for Vietnam and other ASEAN countries is described in Ing et al (2016) and the methodology for calculating
the price impacts is described in Cadot et al. (2015) and detailed further in Knebel and Peters (2018).
49
Beverages & tobacco 2.0 1.1
Other crops 1.9 0.7
Chemical, rubber & plastics 1.9 0.7
Beef and veal 1.7 1.4
Petroleum, coal products 1.4 0.7
Textiles 1.4 0.6
Resources 1.3 0.5
Leather 1.2 0.6
Wood products 1.2 0.7
Motor vehicle & trans equip 1.0 0.6
Ferrous metals 0.9 0.3
Mineral products nec 0.7 0.3
Manufactures 0.7 0.3
Minerals 0.5 0.4
Wearing apparel 0.4 0.7
Paper products, publishing 0.3 0.3
Machinery and equipment nec 0.1 0.3
Electronics 0.0 0.2
11.12 Exchange rate: The original data from the GTAP model are in US dollars at
2014 prices. We can estimate the equivalent pound sterling in 2017 prices by
first inflating US dollar prices from 2014 to 2017 and then converting to pound
sterling by estimating a 2017 exchange rate of 1.31 £/USD based on data from
the International Monetary Fund (IMF).
50
Annex A: Explanation of CGE modelling
There are various well established robust methods to estimate the impact of trade
agreements namely:
 Econometric gravity modelling – This type of modelling predicts bilateral
trade flows based on the economic size of the countries in question and their
geographic distance. Expansions of gravity modelling have included other
components of ‘distance’ including trade costs and other country characteristics
such as culture and language. This method has been applied since the late
1960’s and is predicated on historical data.
 Partial equilibrium modelling – This tool of analysis estimates the isolated
impact of a change in policy in one sector, e.g. automotive, agriculture,
financial. In the context of trade agreements, it looks at the impacts of changes
in trade costs on a sector’s production, exports, and imports. While it can
observe the impacts for a much more granular sectoral aggregation that CGE
models, it does not capture positive or negative spillover effects on
complementary sectors or the wider economy.
 General equilibrium modelling – This model links all sectors and agents of
an economy together and therefore captures any positive or negative spillover
effects from a trade agreement. For example, if tariffs are reduced for a
particular good, its use as a final and intermediate good may increase due to
lower prices. This has expansionary effects for other sectors that rely on the
good for their own production and further knock-on effects for the incomes of
workers, firms, and government.
51
Annex B: The impact of future free trade agreements on the baseline
The European Commission’s study was concluded in 2013. The elimination of

tariffs sets out in CPTPP is included in the baseline analysis. However liberalisation
associated with regulatory barriers to trade are not factored in. Modelling that
captures the impact of the EU-Vietnam free trade agreement on the UK specifically,
taking into account all the final provisions set out in CPTPP, is not available.
CPTPP will bring the harmonisation of certain standards and reductions in NTMs
that will affect the flow of both goods and services between CPTPP members and
could lead to diversionary effects. We do, however, expect the negative impact of
CPTPP to be small in the short term, because Vietnam already has FTAs in force
with 7 out of the 10 other CPTPP members (excluding Vietnam itself). Vietnam
does not currently have FTAs with Canada, Mexico and Peru.
The main goods exported by UK businesses to Vietnam differ from those exported
by Canada, Mexico and Peru. Firstly, the top exports to Vietnam by Canada are
cereals, fish and crustaceans, and oils and seeds. Secondly, for Mexico, the top
exports are aluminium, fish and crustaceans, and fruit and nuts. Thirdly, for Peru
the top exports are ores, slag and ash, and meat products. However the top UK
exports to Vietnam are nuclear machinery and mechanical appliances,
pharmaceutical products, electrical machinery and equipment.32 As the majority of
the products are different, diversionary effects on goods trade are likely to be
minimal.
Data is not readily available on service trade between the UK, Mexico, Canada,
and Peru with Vietnam by service sector so we cannot compare exports in detail.
However, we would expect the impact of trade diversion on services to be minimal.
In 2016, 16% of Canadian exports to Vietnam were in services whereas in 2017,
33% of UK exports to Vietnam were in services.33,34 As Canada’s share of service
exports is much lower than the UK’s, we would expect CPTPP to lead to minimal
trade diversion in services. Similar data was not available for Peru and Mexico.
Annex C: Factors affecting GDP
GDP is the summation of aggregate consumption, investment, government
expenditure, and net trade (exports – imports). As presented in the main body
of the impact assessment, Baker and Vanzetti (2019) estimate the EVFTA
could result in a £490 million increase in UK exports to Vietnam, a £1.7 billion
increase in UK imports from Vietnam, and a £390 million increase in UK net
GDP.
Although not explicitly stated in Baker and Vanzetti’s results, the impact of a
trade agreement also affects other components of GDP. One of the advantages
of the CGE model used is that it captures links between markets throughout the
economy so that the wider effects can be captured, rather than a narrow focus
32
Product data from UNCOMTRADE, 3 year average (2015-17)
33
Global Affairs Canada Trade Statistics
34
ONS Balance of Payments
52
on imports and exports. This is why the impact to GDP is positive even though
the trade balance has declined.
An FTA can allow for UK businesses and consumers to import intermediate and
final goods at a lower cost. This lower cost could also be passed onto
consumers in the form of lower prices, inducing increased consumption.
Cheaper intermediate products could also increase UK businesses profitability,
extra profits can then be used for either increased domestic investment or
higher wages and tax receipts, hence providing a potential boost to government
expenditure and consumption.
Other examples include Copenhagen Economics assessment of EU-Japan

Economic Partnership Agreement (2009). Gains in EU imports are estimated
at €35.3 to €53.8 billion, whereas export gains are only €27.8 to €43.3 billion.
However, the overall impact on EU GDP is positive equal to increase of
between 0.10% to 0.14%.
Annex D: Method description: estimated one-off costs associated with EVFTA

text familiarisation costs
The steps below set out the method applied to estimate the one-off familiarisation costs
to businesses.
1 We assume that 40% of UK businesses that trade with Vietnam will read the full agreement,
this includes:
 18 chapters and 17 annexes of the EU-Vietnam Free Trade Agreement text1,
authentic as of January 2016.
We assume a business will read the document stated above which collectively total 192,268
words.
2 Evidence shows the average reading time is 228 words per minute with a range of 30 words
either side.2
3 Based on the information above, we estimate the following ranges of time it may take a firm
to become familiar with the EVFTA text:
a) High scenario: assuming an employee reads 198 words per minute, it will take 16.2
hours to read the document above.
b) Central scenario: assuming an employee reads 228 words per minute, it will take
14.0 hours read the collective documents above.
c) Low scenario: assuming an employee reads 258 words per minute, it will take 12.4
hours to read the collective documents.
4 Average weekly earnings are £472 from the year ending September 2017 and the average
number of hours worked per week is 37.5 over the same period. From this we estimate the
average hourly pay is £13 per hour. 3
5 We uplift this by 20.2% to account for other non-wage labour costs such as national
insurance, pensions and other costs that vary with hours worked,
revising the cost per business to £15.63 (£13 + £2.62).4
6 The cost for one business to read the EVFTA text and guidance is estimated at:
a) High scenario: £252.89 (£15.63 x 16.2 reading hours)
53
b) Central scenario: £219.62 (£15.63 x 14.0 reading hours)
c) Low scenario: £194.08 (£15.63 x 12.4 reading hours)
7 Published data shows 2,874 UK businesses exporting to Vietnam and 2,611 importing from
Vietnam in 2016.6 The total number of firms trading with Vietnam is therefore 5,485.
The 40% of firms (2,194) which choose to read the full agreement incur some familiarisation
costs:
a) High scenario: £554,849 [(2,194 x £252.89 cost per firm)
b) Central scenario: £481,843 [(2,194 x £219.62 cost per firm)
c) Low scenario: £425,815 [(2,194 x £194.08 cost per firm)
8 Alternatively, businesses may seek advice from a specialist agent on interpreting the text
and implications for their trade.
Survey evidence shows that 60% of businesses seek advice from an agent to complete tax
affairs. Using this as a proxy for the number of firms which would seek advice on EVFTA.
The same survey provides an average cost of using an agent of £265.5
9 Published data shows 2,874 UK businesses exporting to Vietnam and 2,611 importing from
Vietnam in 2016.6 The total number of firms trading with Vietnam is therefore 5,485.
The 60% of firms (3,291) that choose to seek advice from an agent will incur the following
costs:
 £872,115 (3,291 firms x £265 cost per firm)
10 We assume that 100% of firms use the EUSFTA preferences and therefore incur some
familiarisation costs:
d) High scenario: £1.43 million (£554,849 + £872,115)
e) Central scenario: £1.35 million : (£481,843 + £872,115)
f) Low scenario: £1.30 million (£425,815 + £872,115)
Sources :
1
http://trade.ec.europa.eu/doclib/press/index.cfm?id=961
2
http ://iovs.arvojournals.org/article.aspx? articleid=2166061#90715174
3
Labour market statistics summary data tables (ONS) 2017. Table 15. Average Weekly Earnings (nominal) –
Regular Pay (Great Britain, seasonally adjusted).
4
Understanding tax administration for businesses, HM Revenue and Customs Research Report 375, July 2015
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/443746/HMRC_Report_375_Tax_Ad
ministration.pdf
https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabo
urmarket/october2017/relateddata
5
As cited in the Green Book, HSE uses 30% as an adjustment for non-wage labour cost. This is based on the
labour force survey 1992.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/220541/green_book_complete.pdf
6
IDBR overseas trade statistics country data tables 2016. https://www.gov.uk/government/statistics/uk-trade-in-
goods-by-business-characteristics-2016.
54
Annex E: Distribution impacts
Section 7 showed that, under EVFTA, UK exports to Vietnam could increase by £490
million and UK imports from Vietnam could increase by £1.7 billion in the long run.
The evidence indicates that most of the export gains will be in the finance and
insurance sector and most of the import gains will be in the wearing apparel, leather
products and motor vehicle and transport parts. The graphs below highlights UK
exports to Vietnam are mostly concentrated in the North West in 2017 relative to
the rest of the UK. In comparison, the data shows UK imports from Vietnam are
mostly concentrated in the North East in 2017.
Graph 8: UK exports of goods to Vietnam by area in 2017
Source: HMRC, Regional Trade Statistics

Note: The percentage shares represent the value of trade each area exports in goods to Vietnam
compared to the value of trade each area exports to the world.
55
Graph 9: UK imports of goods from Vietnam by area in 2017
Source: HMRC, Regional Trade Statistics

Note: The percentage shares represent the value of trade each area imported in goods from
Vietnam compared to the value of trade each area imported from the world.
56
JAPAN-VIETNAM
AGREEMENT BETWEEN JAPAN AND THE SOCIALIST REPUBLIC OF VIET NAM
FOR AN ECONOMIC PARTNERSHIP
Table of Contents
Preamble
Chapter 1 General Provisions
Article 1 Objectives
Article 2 General Definitions
Article 3 Transparency
Article 4 Public Comment Procedures
Article 5 Administrative Procedures
Article 6 Confidential Information
Article 7 Taxation
Article 8 General and Security Exceptions
Article 9 Relation to Other Agreements
Article 10 Implementing Agreement
Article 11 Joint Committee
Article 12 Communications
Chapter 2 Trade in Goods
Article 13 Definitions
Article 14 Classification of Goods
Article 15 National Treatment
Article 16 Elimination or Reduction of Customs

Duties
Article 17 Customs Valuation
Article 18 Export Subsidies
Article 19 Non-tariff Measures
Article 20 Bilateral Safeguard Measures
Article 21 Measures to Safeguard the Balance of

Payments
1
Article 22 Relation to the Agreement on
Comprehensive Economic Partnership among
Japan and Member States of the Association
of Southeast Asian Nations
Chapter 3 Rules of Origin
Article 24 Originating Goods
Article 25 Goods Wholly Obtained or Produced
Article 26 Goods Not Wholly Obtained or Produced
Article 27 Calculation of Local Value Content
Article 28 De Minimis
Article 29 Accumulation
Article 30 Non-qualifying Operations
Article 31 Direct Consignment
Article 32 Packing Materials and Containers
Article 33 Accessories, Spare Parts, Tools, and

Instructional or Other Information
Materials
Article 34 Indirect Materials
Article 35 Identical and Interchangeable Materials
Article 36 Operational Certification Procedures
Article 37 Sub-Committee on Rules of Origin
Chapter 4 Customs Procedures
Article 38 Scope
Article 41 Customs Clearance
Article 42 Goods in Transit
Article 43 Cooperation and Exchange of Information
Article 44 Sub-Committee on Customs Procedures
2
Chapter 5 Sanitary and Phytosanitary Measures
Article 45 Scope
Article 46 Reaffirmation of Rights and Obligations
Article 47 Enquiry Points
Article 48 Sub-Committee on Sanitary and

Phytosanitary Measures
Article 49 Non-application of Chapter 13
Chapter 6 Technical Regulations, Standards, and

Conformity Assessment Procedures
Article 50 Objectives
Article 51 Scope
Article 52 Reaffirmation of Rights and Obligations
Article 53 Cooperation
Article 54 Enquiry Points
Article 55 Sub-Committee on Technical Regulation

Standards, and Conformity Assessment
Procedures
Chapter 7 Trade in Services
Article 57 Scope
Article 59 Market Access
Article 61 Additional Commitments
Article 62 Schedule of Specific Commitments
Article 63 Most-Favored-Nation Treatment
Article 64 Modification of Schedules
Article 65 Qualifications, Technical Standards, and

Licensing
Article 66 Recognition
3
Article 67 Monopolies and Exclusive Service
Suppliers
Article 68 Payments and Transfers
Article 69 Restrictions to Safeguard the Balance

of Payments
Article 70 Denial of Benefits
Article 71 Sub-Committee on Trade in Services
Article 72 Review of Commitments
Article 73 Emergency Safeguard Measures
Chapter 8 Movement of Natural Persons
Article 74 Scope
Article 76 Specific Commitments
Article 77 Requirements and Procedures
Article 78 Sub-Committee on Movement of Natural

Persons
Article 79 Further Negotiations
Chapter 9 Intellectual Property
Article 80 General Provisions
Article 82 Most-Favored-Nation Treatment
Article 83 Streamlining and Harmonization of

Procedural Matters
Article 85 Promotion of Public Awareness Concerning

Protection of Intellectual Property
Article 86 Patents
Article 87 Industrial Designs
Article 88 Trademarks
Article 89 Copyright and Related Rights
4
Article 90 New Varieties of Plants
Article 91 Geographical Indications
Article 92 Unfair Competition
Article 93 Enforcement – Border Measures
Article 94 Enforcement – Civil Remedies
Article 95 Enforcement – Criminal Remedies
Article 96 Cooperation
Article 97 Sub-Committee on Intellectual Property
Article 98 Security Exceptions
Chapter 10 Competition
Article 99 Promotion of Competition by Addressing

Anti-competitive Activities
Article 101 Cooperation on Promoting Competition by

Addressing Anti-competitive Activities
Article 102 Technical Cooperation
Article 103 Non-application of Paragraph 3 of

Article 6 and Chapter 13
Article 104 Miscellaneous
Chapter 11 Improvement of the Business Environment
Article 105 Basic Principles
Article 106 Government Procurement
Article 107 Sub-Committee on Improvement of the

Business Environment
Article 108 Consulting Fora
Article 109 Liaison Office
Chapter 12 Cooperation
Article 111 Basic Principles
Article 112 Areas and Forms of Cooperation
5
Article 113 Implementation
Article 114 Sub-Committee on Cooperation
Chapter 13 Dispute Settlement
Article 116 Scope
Article 117 Consultations
Article 118 Good Offices, Conciliation, or Mediation
Article 119 Establishment of Arbitral Tribunals
Article 120 Functions of Arbitral Tribunals
Article 121 Proceedings of Arbitral Tribunals
Article 122 Termination of Proceedings
Article 123 Implementation of Award
Article 124 Expenses
Chapter 14 Final Provisions
Article 125 Table of Contents and Headings
Article 126 Annexes and Notes
Article 127 Amendment
Article 128 Entry into Force
Article 129 Termination
Annex 1 Schedules in relation to Article 16
Annex 2 Product Specific Rules
Annex 3 Operational Certification Procedures
Annex 4 Financial Services
Annex 5 Schedules of Specific Commitments in

relation to Article 62
Annex 6 Lists of Most-Favored-Nation Treatment

Exemptions in relation to Article 63
Annex 7 Specific Commitments for the Movement

of Natural Persons
6
Preamble
Japan and the Socialist Republic of Viet Nam (hereinafter

referred to in this Agreement as “Viet Nam”),
Recognizing that a dynamic and rapidly changing global

environment brought about by globalization and technological
progress presents various economic and strategic challenges and
opportunities to the Parties;
Conscious of their longstanding friendship and strong

economic and political ties that have developed through many
years of fruitful and mutually beneficial cooperation between
the Parties;
Believing that such a bilateral relationship will be

enhanced by forging a mutually beneficial economic partnership
through trade liberalization, trade facilitation, and
cooperation;
Recognizing the development gap between the Parties;
Reaffirming that the economic partnership will provide a

useful framework for enhanced cooperation and serve the common
interests of the Parties in various fields as agreed in this
Agreement and lead to the improvement of economic efficiency
and the development of trade, investment, and human resources;
Recognizing that such a partnership will create a larger

and new market, and enhance the attractiveness and vibrancy of
their markets;
Recalling Article XXIV of the General Agreement on Tariffs

and Trade 1994 and Article V of the General Agreement on Trade
in Services in Annex 1A and Annex 1B, respectively, to the
Marrakesh Agreement Establishing the World Trade Organization,
done at Marrakesh, April 15, 1994;
Convinced that this Agreement would open a new era for the
relationship between the Parties; and
Determined to establish a legal framework for an economic

partnership between the Parties;
HAVE AGREED as follows:
Chapter 1
General Provisions
Article 1
Objectives
The objectives of this Agreement are to:
7
(a) liberalize and facilitate trade in goods and services
between the Parties;
(b) ensure protection of intellectual property and

promote cooperation in the field thereof;
(c) promote cooperation and coordination for the

effective enforcement of competition laws in each
Party;
(d) facilitate the movement of natural persons between the

Parties;
(e) improve business environment in each Party;
(f) establish a framework to enhance closer cooperation

in the fields agreed in this Agreement; and
(g) create effective procedures for the implementation of

this Agreement and for the settlement of disputes.
Article 2
General Definitions
For the purposes of this Agreement, the term:
(a) “Area” means with respect to a Party, (i) the territory

of the Party, including its territorial sea; and (ii)
the exclusive economic zone and the continental shelf
with respect to which the Party exercises sovereign
rights or jurisdiction in accordance with
international law;
Note: Nothing in this subparagraph shall affect the

rights and obligations of the Parties under
international law, including those under the
United Nations Convention on the Law of the
Sea.
(b) “customs authority” means the competent authority

that is responsible for the administration and
enforcement of customs laws and regulations;
(c) “GATS” means the General Agreement on Trade in

Services in Annex 1B to the WTO Agreement;
(d) “GATT 1994” means the General Agreement on Tariffs and

Trade 1994 in Annex 1A to the WTO Agreement. For the
purposes of this Agreement, references to articles in
the GATT 1994 include the interpretative notes;
8
(e) “Harmonized System” or “HS” means the Harmonized
Commodity Description and Coding System set out in the
Annex to the International Convention on the
Harmonized Commodity Description and Coding System,
and adopted and implemented by the Parties in their
respective laws;
(f) “Parties” means Japan and Viet Nam, and “Party” means
either Japan or Viet Nam; and
(g) “WTO Agreement” means the Marrakesh Agreement

Establishing the World Trade Organization, done at
Marrakesh, April 15, 1994.
Article 3
Transparency
1. Each Party shall, in accordance with its laws and

regulations, promptly publish, or otherwise make publicly
available, its laws, regulations, administrative procedures,
and administrative rulings and judicial decisions of general
application as well as international agreements to which the
Party is a party, with respect to any matter covered by this
Agreement.
2. Each Party shall make available to the public the names

and addresses of the competent authorities responsible for laws,
regulations, administrative procedures, and administrative
rulings, referred to in paragraph 1.
3. Each Party shall, upon request by the other Party, within

a reasonable period of time, respond to specific questions from,
and provide information to, the other Party with respect to
matters referred to in paragraph 1.
4. When introducing or changing its laws, regulations, or

administrative procedures that significantly affect the
implementation and operation of this Agreement, each Party
shall, in accordance with its laws and regulations, endeavor
to provide, except in emergency situations, a reasonable
interval between the time when such laws, regulations, or
administrative procedures as introduced or changed are
published or made publicly available and the time when they
enter into force.
Article 4
Public Comment Procedures
The Government of each Party shall, in accordance with the

laws and regulations of the Party, endeavor to adopt or maintain
public comment procedures, in order to:
9
(a) make public in advance regulations of general
application that affect any matter covered by this
Agreement, when the Government adopts, amends, or
repeals them; and
(b) provide a reasonable opportunity for comments by the

public and give consideration to those comments before
adoption, amendment, or repeal of such regulations.
Article 5
Administrative Procedures
1. Where administrative decisions which pertain to or affect

the implementation and operation of this Agreement are taken
by the competent authorities of a Party, the competent
authorities shall, in accordance with the laws and regulations
of the Party:
(a) inform the applicant of the decision within a

reasonable period of time after the submission of the
application considered complete under the laws and
regulations of the Party, taking into account the
established standard periods of time referred to in
paragraph 3; and
(b) provide, within a reasonable period of time,

information concerning the status of the application,
at the request of the applicant.
2. The competent authorities of a Party shall, in accordance

with the laws and regulations of the Party, endeavor to
establish standards for taking administrative decisions in
response to submitted applications. The competent authorities
shall endeavor to:
(a) make such standards as specific as possible; and
(b) make such standards publicly available except when it

would extraordinarily raise administrative
difficulties for the Government of the Party.
3. The competent authorities of a Party shall, in accordance

with the laws and regulations of the Party, endeavor to:
(a) establish standard periods of time between the receipt

of applications by the competent authorities and the
administrative decisions taken in response to the
submitted applications; and
(b) make publicly available such periods of time, if

established.
Article 6
Confidential Information
10
regulations, maintain the confidentiality of information
provided in confidence by the other Party pursuant to this
Agreement.
2. Notwithstanding paragraph 1, the information provided

pursuant to this Agreement may be transmitted to a third party
subject to prior consent of the Party which provided the
information.
3. Nothing in this Agreement shall require a Party to provide

confidential information, the disclosure of which would impede
the enforcement of its laws and regulations, or otherwise be
contrary to the public interest, or which would prejudice the
legitimate commercial interests of particular enterprises,
public or private.
Article 7
Taxation
1. Unless otherwise provided for in this Agreement, the

provisions of this Agreement shall not apply to any taxation
measures.
2. Nothing in this Agreement shall affect the rights and

obligations of either Party under any tax convention. In the
event of any inconsistency between this Agreement and any such
convention, that convention shall prevail to the extent of the
inconsistency.
3. Articles 3 and 6 shall apply to taxation measures, to the

extent that the provisions of this Agreement are applicable to
such taxation measures.
Article 8
General and Security Exceptions
1. For the purposes of Chapters 2, 3, and 4, Articles XX and

XXI of the GATT 1994 are incorporated into and form part of this
Agreement, mutatis mutandis.
2. For the purposes of Chapters 7 and 8, Articles XIV and XIV

bis of the GATS are incorporated into and form part of this
Article 9
Relation to Other Agreements
1. The Parties reaffirm their rights and obligations under

the WTO Agreement or any other agreements to which both Parties
are parties.
2. In the event of any inconsistency between this Agreement

and the WTO Agreement, the WTO Agreement shall prevail to the
extent of the inconsistency.
11
3. In the event of any inconsistency between this Agreement
and any agreement other than the WTO Agreement to which both
Parties are parties, the Parties shall immediately consult with
each other with a view to finding a mutually satisfactory
solution, taking into consideration general principles of
international law.
4. The provisions of the Agreement between Japan and the

Socialist Republic of Viet Nam for the Liberalization,
Promotion and Protection of Investment, signed at Tokyo on
November 14, 2003 (hereinafter referred to in this Article as
“BIT”), except its Article 20, as may be amended, are
incorporated into and form part of this Agreement, mutatis
mutandis.
5. Nothing in this Agreement shall be construed so as to

derogate from any of obligations of a Party under the BIT, if
such an obligation entitles the other Party to treatment more
favorable than that accorded by this Agreement.
Article 10
Implementing Agreement
The Governments of the Parties shall conclude a separate

agreement setting forth the details and procedures for the
implementation of this Agreement (hereinafter referred to in
this Agreement as “the Implementing Agreement”).
Article 11
Joint Committee
1. A Joint Committee shall be established under this

Agreement.
2. The functions of the Joint Committee shall be:
(a) reviewing and monitoring the implementation and

operation of this Agreement;
(b) considering and recommending to the Parties any

amendments to this Agreement;
(c) supervising and coordinating the work of all

Sub-Committees established under this Agreement;
(d) adopting:
(i) the Implementing Regulations referred to in Part

2 of Annex 1 and Rule 11 of Annex 3; and
(ii) any necessary decisions; and
(e) carrying out other functions as the Parties may agree.
12
3. The Joint Committee:
(a) shall be composed of representatives of the

Governments of the Parties; and
(b) may establish, and delegate its responsibilities to,

Sub-Committees.
4. The Joint Committee shall establish its rules and

procedures.
5. The Joint Committee shall meet at such time and venue as

may be agreed by the Parties.
Article 12
Communications
Each Party shall designate a contact point to facilitate

communications between the Parties on any matter relating to
this Agreement.
Chapter 2
Trade in Goods
Article 13
Definitions
For the purposes of this Chapter, the term:
(a) “bilateral safeguard measure” means a bilateral

safeguard measure provided for in paragraph 4 of
Article 20;
(b) “customs duty” means any customs or import duty and

a charge of any kind imposed in connection with the
importation of a good, but does not include any:
(i) charge equivalent to an internal tax imposed

consistently with the provisions of paragraph
2 of Article III of the GATT 1994, in respect
of the like goods or, directly competitive or
substitutable goods of the Party or in respect
of goods from which the imported goods have been
manufactured or produced in whole or in part;
(ii) anti-dumping or countervailing duty applied

pursuant to a Party’s law and applied
consistently with the provisions of Article VI
of the GATT 1994, the Agreement on
Implementation of Article VI of the General
Agreement on Tariffs and Trade 1994 in Annex 1A
to the WTO Agreement, and the Agreement on
Subsidies and Countervailing Measures in Annex
1A to the WTO Agreement; or
13
(iii) fees or other charges commensurate with the cost
of services rendered;
(c) “customs value of goods” means the value of goods for

the purposes of levying ad valorem customs duties on
imported goods;
(d) “domestic industry” means the producers as a whole of

the like or directly competitive goods operating in
a Party, or those whose collective output of the like
or directly competitive goods constitutes a major
proportion of the total domestic production of those
goods;
(e) “originating good” means a good that qualifies as

originating in accordance with the provisions of
Chapter 3;
(f) “provisional bilateral safeguard measure” means a

provisional bilateral safeguard measure provided for
in subparagraph 11(a) of Article 20;
(g) “serious injury” means a significant overall

impairment in the position of a domestic industry; and
(h) “threat of serious injury” means serious injury that,

on the basis of facts and not merely on allegation,
conjecture, or remote possibility, is clearly
imminent.
Article 14
Classification of Goods
The classification of goods in trade between the Parties

shall be in conformity with the Harmonized System.
Article 15
National Treatment
Each Party shall accord national treatment to the goods

of the other Party in accordance with Article III of the GATT
1994.
Article 16
Elimination or Reduction of Customs Duties
1. Except as otherwise provided for in this Agreement, each

Party shall, in accordance with its Schedule in Annex 1,
eliminate or reduce its customs duties on originating goods of
the other Party.
2. The Parties shall negotiate on issues such as improving

market access conditions on originating goods designated for
negotiation in the Schedules in Annex 1, in accordance with the
terms and conditions set out in such Schedules.
14
3. In cases where its most-favored-nation applied rate of
customs duty on a particular good is lower than the rate of
customs duty to be applied in accordance with paragraph 1 on
the originating good which is classified under the same tariff
line as that particular good, each Party shall apply the lower
rate with respect to that originating good in accordance with
its laws, regulations, and procedures.
Article 17
Customs Valuation
For the purposes of determining the customs value of goods

traded between the Parties, provisions of Part I of the
Agreement on Implementation of Article VII of the General
Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO
Agreement (hereinafter referred to in this Agreement as “the
Agreement on Customs Valuation”) shall apply mutatis mutandis.
Article 18
Export Subsidies
Neither Party shall, in accordance with its obligations

under the WTO Agreement, introduce or maintain any export
subsidies.
Article 19
Non-tariff Measures
1. Each Party shall not introduce or maintain any non-tariff

measures on the importation of any good of the other Party or
on the exportation or sale for export of any good destined for
the other Party which are inconsistent with its obligations
under the WTO Agreement.
2. Each Party shall ensure transparency of its non-tariff

measures permitted under paragraph 1, including quantitative
restrictions. Each Party shall ensure full compliance with the
obligations under the WTO Agreement with a view to minimizing
possible distortions to trade to the maximum extent possible.
Article 20
Bilateral Safeguard Measures
1. Each Party may apply a safeguard measure to an originating

good of the other Party in accordance with Article XIX of the
GATT 1994 and the Agreement on Safeguards in Annex 1A to the
WTO Agreement (hereinafter referred to in this Article as “the
Agreement on Safeguards”), or Article 5 of the Agreement on
Agriculture in Annex 1A to the WTO Agreement (hereinafter
referred to in this Article as “Agreement on Agriculture”). Any
action taken pursuant to Article XIX of the GATT 1994 and the
Agreement on Safeguards, or Article 5 of the Agreement on
Agriculture shall not be subject to Chapter 13 of this
Agreement.
15
2. Each Party shall be free to apply a bilateral safeguard
measure, to the minimum extent necessary to prevent or remedy
the serious injury to a domestic industry of that Party and to
facilitate adjustment, if as an effect of the obligations
incurred by that Party under this Agreement, including tariff
concessions, or if as a result of unforeseen developments and
of the effects of the obligations incurred by that Party under
this Agreement, an originating good of the other Party is being
imported in such increased quantities, in absolute terms or
relative to domestic production, and under such conditions as
to cause or threaten to cause serious injury to the domestic
industry of the former Party that produces like or directly
competitive goods in the former Party.
3. A Party shall not apply a bilateral safeguard measure to

an originating good imported up to the limit of quota quantities
granted under tariff rate quotas applied in accordance with its
Schedule in Annex 1.
4. A Party applying a bilateral safeguard measure may:
(a) suspend the further reduction of any customs duty on

the originating good of the other Party provided for
under this Chapter; or
(b) increase the customs duty on the originating good of

the other Party to a level not to exceed the lesser
of:
(i) the most-favored-nation applied rate on the good

in effect on the day when the bilateral safeguard
measure is applied; and
(ii) the most-favored-nation applied rate on the good

in effect on the day immediately preceding the
date of entry into force of this Agreement.
5. (a) A Party may apply a bilateral safeguard measure only

after an investigation has been carried out by the
competent authorities of that Party in accordance with
the same procedures as those provided for in Article
3 and paragraph 2 of Article 4 of the Agreement on
Safeguards.
(b) The investigation referred to in subparagraph (a)

shall be completed within one year following its date
of initiation.
6. The following conditions and limitations shall apply with

regard to a bilateral safeguard measure:
(a) A Party shall immediately give a written notice to the

other Party upon:
16
(i) initiating an investigation referred to in
subparagraph 5(a) relating to serious injury, or
threat of serious injury, and the reasons for it;
(ii) making a finding of serious injury or threat of

serious injury caused by increased imports; and
(iii) taking a decision to apply or extend a bilateral

safeguard measure.
(b) The Party giving the written notice referred to in

subparagraph (a) shall provide the other Party with
all pertinent information, which shall include:
(i) in the written notice referred to in subparagraph

(a)(i), the reason for the initiation of the
investigation, a precise description of an
originating good subject to the investigation and
its heading or subheading of the Harmonized
System, on which the Schedules in Annex 1 are
based, the period subject to the investigation,
and the date of initiation of the investigation;
and
(ii) in the written notice referred to in subparagraphs

(a)(ii) and (iii), the evidence of serious injury
or threat of serious injury caused by the
increased imports of the originating good, a
precise description of the originating good
subject to the proposed safeguard measure and its
heading or subheading of the Harmonized System,
on which the Schedules in Annex 1 are based, a
precise description of the bilateral safeguard
measure, the proposed date of its introduction,
and its expected duration.
(c) A Party proposing to apply or extend a bilateral

safeguard measure shall provide adequate opportunity
for prior consultations with the other Party with a
view to reviewing the information arising from the
investigation referred to in subparagraph 5(a),
exchanging views on the bilateral safeguard measure
and reaching an agreement on compensation set out in
paragraph 7.
17
(d) No bilateral safeguard measure shall be maintained
except to the extent and for such time as may be
necessary to prevent or remedy serious injury and to
facilitate adjustment, provided that such time shall
not exceed a period of three years. A bilateral
safeguard measure may be extended, provided that the
conditions set out in this Article are met. The total
duration of the bilateral safeguard measure,
including any extensions thereof, shall not exceed
four years. In order to facilitate adjustment in a
situation where the expected duration of a bilateral
safeguard measure is over one year, the Party
maintaining the bilateral safeguard measure shall
progressively liberalize the bilateral safeguard
measure at regular intervals during the period of
application.
(e) No bilateral safeguard measure shall be applied again

to the import of a particular originating good which
has been subject to such a bilateral safeguard measure,
for a period of time equal to the duration of the
previous safeguard measure or one year, whichever is
longer.
(f) Upon the termination of a bilateral safeguard measure

on a good, the rate of the customs duty for that good
shall be the rate which, in accordance with the
Schedule of the Party applying the bilateral safeguard
measure set out in Annex 1, would have been in effect
had the bilateral safeguard measure not been applied.
7. (a) A Party proposing to apply or extend a bilateral

safeguard measure shall provide to the other Party
mutually agreed adequate means of trade compensation
in the form of substantially equivalent level of
concessions or other obligations to that existing
under this Agreement.
(b) In seeking compensation provided for in subparagraph

(a), the Parties shall hold consultations in the Joint
Committee. Any proceedings arising from such
consultations shall be completed within 30 days from
the date on which the bilateral safeguard measure was
applied.
18
(c) If no agreement on the compensation is reached within
the time frame specified in subparagraph (b), the
Party against whose originating good the bilateral
safeguard measure is taken shall be free to suspend
concessions of customs duties under this Agreement,
which is substantially equivalent to the bilateral
safeguard measure. That Party may suspend the
concessions only for the minimum period necessary to
achieve the substantially equivalent effects and only
while the bilateral safeguard measure is maintained.
The right of suspension provided for in this
subparagraph shall not be exercised for the first two
years that a bilateral safeguard measure is in effect,
provided that the bilateral safeguard measure has been
applied as a result of an absolute increase in imports
and that such a bilateral safeguard measure conforms
to the provisions of this Article.
8. (a) A Party applying a safeguard measure in connection

with an importation of an originating good of the other
Party in accordance with Article XIX of the GATT 1994
and the Agreement on Safeguards, or Article 5 of the
Agreement on Agriculture, shall not apply the
bilateral safeguard measure to that importation.
(b) The period of application of the bilateral safeguard

measure referred to in subparagraph 6(d) shall not be
interrupted by the Party’s non-application of the
bilateral safeguard measure in accordance with
subparagraph (a).
9. Each Party shall ensure the consistent, impartial, and

reasonable administration of its laws and regulations relating
to bilateral safeguard measures.
10. Each Party shall adopt or maintain equitable, timely,

transparent, and effective procedures relating to bilateral
safeguard measures.
11. (a) In critical circumstances, where delay would cause

damage which it would be difficult to repair, a Party
may apply a provisional bilateral safeguard measure,
which shall take the form of the measure set out in
subparagraph 4(a) or 4(b), pursuant to a preliminary
determination that there is clear evidence that
increased imports of an originating good have caused
or are threatening to cause serious injury to a
domestic industry.
19
(b) A Party shall give a written notice to the other Party
prior to applying a provisional bilateral safeguard
measure. Consultations by the Parties in the Joint
Committee on the application of the provisional
bilateral safeguard measure shall be initiated
immediately after the provisional bilateral safeguard
measure is applied.
(c) The duration of a provisional bilateral safeguard

measure shall not exceed 200 days. During that period,
the pertinent requirements of paragraph 5 shall be met.
The duration of the provisional bilateral safeguard
measure shall be counted as a part of the period
referred to in subparagraph 6(d).
(d) Subparagraph 6(f) shall apply, mutatis mutandis, to

the provisional bilateral safeguard measure.
(e) The customs duty imposed as a result of the provisional

bilateral safeguard measure shall be refunded if the
subsequent investigation referred to in subparagraph
5(a) does not determine that increased imports of the
originating good have caused or threatened to cause
serious injury to a domestic industry.
12. All official communications and documentations exchanged

between the Parties relating to a bilateral safeguard measure
shall be in writing and shall be in the English language.
13. (a) Within 10 years after the entry into force of this
Agreement, the Parties shall review this Article with
a view to determining whether there is a need to
maintain the bilateral safeguard mechanism.
(b) If the Parties do not agree to remove the bilateral

safeguard mechanism during the review pursuant to
subparagraph (a), the Parties shall thereafter
conduct reviews to determine the necessity of the
bilateral safeguard mechanism in the Joint Committee.
Article 21
Measures to Safeguard the Balance of Payments
Where a Party is in serious balance of payments and external

financial difficulties or threat thereof, the Party may, in
accordance with the GATT 1994 and the Understanding on the
Balance-of-Payments Provisions of the General Agreement on
Tariffs and Trade 1994 in Annex 1A to the WTO Agreement, adopt
restrictive import measures.
Article 22
Relation to the Agreement on Comprehensive
Economic Partnership among Japan and Member States of
the Association of Southeast Asian Nations
20
The Parties reaffirm that, as is provided for in Article
9 of this Agreement, any commitments of the Parties under this
Chapter shall not affect the commitments of the Parties under
the Agreement on Comprehensive Economic Partnership among Japan
and Member States of the Association of Southeast Asian Nations.
Chapter 3
Rules of Origin
Article 23
Definitions
(a) “exporter” means a natural or juridical person

located in an exporting Party who exports a good from
the exporting Party;
(b) “factory ships of the Party” or “vessels of the Party”

respectively means factory ships or vessels:
(i) which are registered in the Party;
(ii) which sail under the flag of the Party;
(iii) which are owned to an extent of at least 50

percent by nationals of the Parties, or by a
juridical person with its head office in either
Party, of which the representatives, chairman
of the board of directors, and the majority of
the members of such board are nationals of the
Parties, and of which at least 50 percent of the
equity interest is owned by nationals or
juridical persons of the Parties; and
(iv) of which at least 75 percent of the total of the

master, officers, and crew are nationals of the
Parties or non-Parties which are Member States
of the Association of Southeast Asian Nations
(hereinafter referred to in this Agreement as
“ASEAN”);
(c) “generally accepted accounting principles” means

the recognized consensus or substantial
authoritative support in a Party, with respect to the
recording of revenues, expenses, costs, assets, and
liabilities; the disclosure of information; and the
preparation of financial statements. These
standards may encompass broad guidelines of general
application as well as detailed standards, practices,
and procedures;
(d) “good” means any merchandise, product, article, or

material;
21
(e) “identical and interchangeable materials” means
materials being of the same kind and commercial
quality, possessing the same technical and physical
characteristics, and which once they are
incorporated into the good cannot be distinguished
from one another for origin purposes by virtue of any
markings;
(f) “importer” means a natural or juridical person who

imports a good into the importing Party;
(g) “materials” means any matter or substance used or

consumed in the production of a good, physically
incorporated into a good, or used in the production
of another good;
(h) “originating good” or “originating material” means

a good or material that qualifies as originating in
accordance with the provisions of this Chapter;
(i) “packing materials and containers for

transportation and shipment” means the goods used to
protect a good during its transportation and shipment,
different from those containers or materials used for
its retail sale;
(j) “preferential tariff treatment” means the rate of

customs duties applicable to an originating good of
the exporting Party in accordance with paragraph 1
of Article 16; and
(k) “production” means methods of obtaining a good

including growing, mining, harvesting, raising,
breeding, extracting, gathering, collecting,
capturing, fishing, trapping, hunting,
manufacturing, processing, or assembling.
Article 24
Originating Goods
For the purposes of this Agreement, a good shall qualify

as an originating good of a Party if it:
(a) is wholly obtained or produced entirely in the Party

as provided for in Article 25;
(b) satisfies the requirements of Article 26 when using

non-originating materials; or
(c) is produced entirely in the Party exclusively from

originating materials of the Party,
and meets all other applicable requirements of this Chapter.
22
Article 25
Goods Wholly Obtained or Produced
For the purposes of paragraph (a) of Article 24, the

following shall be considered as wholly obtained or produced
entirely in a Party:
(a) plant and plant products grown and harvested, picked,

or gathered in the Party;
Note: For the purposes of this paragraph, the term

“plant” refers to all plant life, including
fruit, flowers, vegetables, trees, seaweed,
fungi, and live plants.
(b) live animals born and raised in the Party;
Note: For the purposes of paragraphs (b) and (c), the

term “animals” covers all animal life,
including mammals, birds, fish, crustaceans,
molluscs, reptiles, bacteria, and viruses.
(c) goods obtained from live animals in the Party;
(d) goods obtained from hunting, trapping, fishing,

gathering, or capturing conducted in the Party;
(e) minerals and other naturally occurring substances,

not included in paragraphs (a) through (d), extracted
or taken from soil, waters, seabed or beneath the
seabed of the Party;
(f) goods taken from the waters, seabed or beneath the

seabed outside the territorial waters of the Party,
provided that the Party has the rights to exploit such
waters, seabed and beneath the seabed in accordance
with its laws and regulations and international law;
Note: Nothing in this Agreement shall affect the

rights and obligations of the Parties under
international law, including those under the
United Nations Convention on the Law of the
Sea.
(g) goods of sea-fishing and other marine products taken

by vessels of the Party from outside the territorial
seas of the Parties;
(h) goods processed and/or made on board factory ships

of the Party exclusively from products referred to
in paragraph (g);
23
(i) articles collected in the Party which can no longer
perform their original purpose or be restored or
repaired, and are fit only for disposal, for the
recovery of parts or raw materials, or for recycling
purposes;
(j) parts or raw materials recovered in the Party from

articles which can no longer perform their original
purpose nor are capable of being restored or
repaired;
(k) scrap and waste derived from manufacturing or

processing operations, including mining,
agriculture, construction, refining, incineration
and sewage treatment operations, or from consumption,
in the Party, and fit only for disposal or for the
recovery of raw materials; and
(l) goods obtained or produced in the Party exclusively

from goods referred to in paragraphs (a) through (k).
Article 26
Goods Not Wholly Obtained or Produced
1. For the purposes of paragraph (b) of Article 24, a good

shall qualify as an originating good of a Party if:
(a) the good has a local value content (hereinafter

referred to in this Agreement as “LVC”), calculated
using the formula set out in Article 27, of not less
than 40 percent, and the final process of production
has been performed in the Party; or
(b) all non-originating materials used in the production

of the good have undergone in the Party a change in
tariff classification (hereinafter referred to in
this Agreement as “CTC”) at the 4-digit level (i.e.
a change in tariff heading) of Harmonized System.
Note: For the purposes of this paragraph,

“Harmonized System” is that on which the
product specific rules set out in Annex 2 are
based.
Each Party shall permit the exporter of the good to decide

whether to use subparagraph (a) or (b) when determining whether
the good qualifies as an originating good of the Party.
24
2. Notwithstanding paragraph 1, a good subject to product
specific rules shall qualify as an originating good if it
satisfies the applicable product specific rules set out in Annex
2. Where a product specific rule provides a choice of rules
from an LVC-based rule of origin, a CTC-based rule of origin,
a specific manufacturing or processing operation, or a
combination of any of these, each Party shall permit the
exporter of the good to decide which rule to use in determining
whether the good qualifies as an originating good of the Party.
3. For the purposes of subparagraph 1(a) and the relevant

product specific rules set out in Annex 2 which specify a certain
LVC, it is required that the LVC of a good, calculated using
the formula set out in Article 27, is not less than the percentage
specified by the rule for the good.
4. For the purposes of subparagraph 1(b) and the relevant

product specific rules set out in Annex 2, the rules requiring
that the materials used have undergone CTC, or a specific
manufacturing or processing operation, shall apply only to
non-originating materials.
Article 27
Calculation of Local Value Content
1. For the purposes of calculating the LVC of a good, the

following formula shall be used:
FOB - VNM
LVC = x 100 %
FOB
2. For the purposes of this Article:
(a) “FOB” is, except as provided for in paragraph 3, the

free-on-board value of a good, inclusive of the cost
of transport from the producer to the port or site
of final shipment abroad;
(b) “LVC” is the LVC of a good, expressed as a percentage;

and
(c) “VNM” is the value of non-originating materials used

in the production of a good.
3. FOB referred to in subparagraph 2(a) shall be the value:
(a) adjusted to the first ascertainable price paid for

a good from the buyer to the producer of the good,
if there is free-on-board value of the good, but it
is unknown and cannot be ascertained; or
(b) determined in accordance with Articles 1 through 8

of the Agreement on Customs Valuation, if there is
no free-on-board value of a good.
25
4. For the purposes of paragraph 1, the value of
non-originating materials used in the production of a good in
a Party:
(a) shall be determined in accordance with the Agreement

on Customs Valuation and shall include freight,
insurance, and where appropriate, packing and all
other costs incurred in transporting the materials
to the importation port in the Party where the
producer of the good is located; or
(b) if such value is unknown and cannot be ascertained,

shall be the first ascertainable price paid for the
materials in the Party, but may exclude all the costs
incurred in the Party in transporting the materials
from the warehouse of the supplier of the materials
to the place where the producer is located such as
freight, insurance and packing as well as any other
known and ascertainable costs incurred in the Party.
5. For the purposes of paragraph 1, the VNM of a good shall

not include the value of non-originating materials used in the
production of originating materials of the Party which are used
in the production of the good.
6. For the purposes of subparagraph 3(b) or 4(a), in applying

the Agreement on Customs Valuation to determine the value of
a good or non-originating materials, the Agreement on Customs
Valuation shall apply, mutatis mutandis, to domestic
transactions or to the cases where there is no domestic
transaction of the good or non-originating material.
Article 28
De Minimis
1. A good that does not satisfy the requirements of

subparagraph 1(b) of Article 26 or an applicable CTC-based rule
of origin set out in Annex 2 shall be considered as an originating
good of a Party if:
(a) in the case of a good classified under Chapters 16,

19, 20, 22, 23, 28 through 49, and 64 through 97 of
the Harmonized System, the total value of
non-originating materials used in the production of
the good that have not undergone the required CTC does
not exceed 10 percent of the FOB;
(b) in the case of a particular good classified under

Chapters 9, 18, and 21 of the Harmonized System, the
total value of non-originating materials used in the
production of the good that have not undergone the
required CTC does not exceed 10 percent or seven
percent of the FOB, as specified in Annex 2; or
26
(c) in the case of a good classified under Chapters 50
through 63 of the Harmonized System, the weight of
all non-originating materials used in the production
of the good that have not undergone the required CTC
does not exceed 10 percent of the total weight of the
good,
provided that it meets all other applicable criteria set out

in this Chapter for qualifying as an originating good.
Note: For the purposes of this paragraph, subparagraph 2(a) of

Article 27 shall apply.
2. The value of non-originating materials referred to in

paragraph 1 shall, however, be included in the value of
non-originating materials for any applicable LVC-based rule of
origin for the good.
Article 29
Accumulation
Originating materials of a Party used in the production

of a good in the other Party shall be considered as originating
materials of that other Party.
Article 30
Non-qualifying Operations
A good shall not be considered to satisfy the requirements

of CTC or specific manufacturing or processing operation merely
by reason of:
(a) operations to ensure the preservation of products in

good condition during transport and storage (such as
drying, freezing, keeping in brine) and other similar
operations;
(b) changes of packaging and breaking up and assembly of

packages;
(c) disassembly;
(d) placing in bottles, cases, and boxes and other simple

packaging operations;
(e) collection of parts and components classified as a

good pursuant to Rule 2(a) of the General Rules for
the Interpretation of the Harmonized System;
(f) mere making-up of sets of articles; or
(g) any combination of operations referred to in

subparagraphs (a) through (f).
27
Article 31
Direct Consignment
1. Preferential tariff treatment shall be accorded to an

originating good satisfying the requirements of this Chapter
and which is consigned directly from the exporting Party to the
importing Party.
2. The following shall be considered as consigned directly

from the exporting Party to the importing Party:
(a) a good transported directly from the exporting Party

to the importing Party; or
(b) a good transported through one or more non-Parties,

provided that the good does not undergo operations
other than transit or temporary storage in warehouses,
unloading, reloading, and any other operation to
preserve it in good condition.
Article 32
Packing Materials and Containers
1. Packing materials and containers for transportation and

shipment of a good shall not be taken into account in determining
the origin of any good.
2. Packing materials and containers in which a good is

packaged for retail sale, when classified together with the good,
shall not be taken into account in determining whether all of
the non-originating materials used in the production of the good
have met the applicable CTC-based rule of origin for the good.
3. If a good is subject to an LVC-based rule of origin, the

value of the packing materials and containers in which the good
is packaged for retail sale shall be taken into account as
originating or non-originating materials, as the case may be,
in calculating the LVC of the good.
Article 33
Accessories, Spare Parts, Tools,
and Instructional or Other Information Materials
1. If a good is subject to the requirements of CTC or specific

manufacturing or processing operation, the accessories, spare
parts, tools, and instructional or other information materials
presented with the good shall not be taken into account in
determining whether the good qualifies as an originating good,
provided that:
(a) the accessories, spare parts, tools, and

instructional or other information materials are not
invoiced separately from the good; and
28
(b) the quantities and value of the accessories, spare
parts, tools, and instructional or other information
materials are customary for the good.
2. If a good is subject to an LVC-based rule of origin, the

value of the accessories, spare parts, tools, and instructional
or other information materials shall be taken into account as
the value of the originating or non-originating materials, as
the case may be, in calculating the LVC of the good.
Article 34
Indirect Materials
1. Indirect materials shall be treated as originating

materials regardless of where they are produced.
2. For the purposes of this Article, the term “indirect

materials” means goods used in the production, testing, or
inspection of a good but not physically incorporated into the
good, or goods used in the maintenance of buildings or the
operation of equipment associated with the production of a good,
including:
(a) fuel and energy;
(b) tools, dies, and moulds;
(c) spare parts and materials used in the maintenance of

equipment and buildings;
(d) lubricants, greases, compounding materials, and

other materials used in production or used to operate
equipment and buildings;
(e) gloves, glasses, footwear, clothing, safety

equipment, and supplies;
(f) equipment, devices, and supplies used for testing or

inspecting the good;
(g) catalysts and solvents; and
(h) any other goods that are not incorporated into the
good but whose use in the production of the good can
reasonably be demonstrated to be a part of that
production.
Article 35
Identical and Interchangeable Materials
The determination of whether identical and

interchangeable materials are originating materials shall be
made by the use of generally accepted accounting principles of
stock control applicable, or those of inventory management
practiced, in the exporting Party.
29
Article 36
Operational Certification Procedures
The operational certification procedures, as set out in

Annex 3, shall apply with respect to procedures regarding
certificate of origin and related matters.
Article 37
Sub-Committee on Rules of Origin
1. For the purposes of the effective implementation and

operation of this Chapter, a Sub-Committee on Rules of Origin
(hereinafter referred to in this Article as “the
Sub-Committee”) shall be established pursuant to Article 11.
2. The functions of the Sub-Committee shall be:
(a) reviewing and making appropriate recommendations,

as needed, to the Joint Committee on:
(i) the implementation and operation of this

Chapter;
(ii) any amendments to Annex 2 and Attachment to

Annex 3, proposed by either Party; and
(iii) the Implementing Regulations referred to in

Rule 11 of Annex 3;
(b) considering any other matter related to this Chapter,

as the Parties may agree;
(c) reporting the findings of the Sub-Committee to the

Joint Committee; and
(d) carrying out other functions as may be delegated by

the Joint Committee pursuant to Article 11.
3. The Sub-committee shall be composed of representatives of

the Governments of the Parties, and may invite representatives
of relevant entities other than the Governments of the Parties
with necessary expertise relevant to the issues to be discussed,
upon agreement of the Parties.
4. The Sub-Committee shall meet at such time and venue as may

be agreed by the Parties.
Chapter 4
Customs Procedures
Article 38
Scope
30
1. This Chapter shall apply to customs procedures required
for the clearance of goods traded between the Parties, to
promote the following aspects of the customs procedures:
(a) transparency;
(b) simplification and harmonization; and
(c) cooperation and exchange of information.
2. This Chapter shall be implemented by the Parties in

accordance with the laws and regulations of each Party and
within the available resources of their respective customs
authorities.
Article 39
Definitions
For the purposes of this Chapter, the term “customs laws”

means such laws and regulations administered and enforced by
the customs authority of each Party concerning the importation,
exportation, and transit of goods, as they relate to customs
duties, charges, and other taxes, or to prohibitions,
restrictions, and other similar controls with respect to the
movement of controlled items across the boundary of the customs
territory of each Party.
Article 40
Transparency
1. Each Party shall ensure that all relevant information of

general application pertaining to its customs laws is readily
available to any interested person.
2. When information that has been made available must be

revised due to changes in its customs laws, each Party shall
make the revised information readily available sufficiently in
advance of the entry into force of the changes to enable
interested persons to take account of them, unless such an
advance notice is precluded.
3. At the request of any interested person of the Parties,

each Party shall, wherever appropriate, provide, as quickly and
as accurately as possible, information relating to the specific
customs matters raised by the interested person and pertaining
to its customs laws. Each Party shall supply not only the
information specifically requested but also any other pertinent
information which it considers the interested person should be
made aware of.
Article 41
Customs Clearance
31
1. The Parties shall apply their respective customs
procedures in a predictable, consistent, and transparent
manner.
2. For prompt customs clearance of goods traded between the

Parties, each Party shall:
(a) endeavor to make use of information and communications

technology;
(b) simplify its customs procedures;
(c) harmonize its customs procedures, as far as possible,

with relevant international standards and recommended
practices such as those made under the auspices of the
Customs Co-operation Council; and
(d) promote cooperation, wherever appropriate, between

its customs authority and:
(i) other national authorities of the Party;
(ii) the trading communities of the Party; and
(iii) the customs authorities of non-Parties.
3. Each Party shall provide affected parties with easily

accessible processes of administrative and judicial review of
its administrative actions relating to customs matters.
Article 42
Goods in Transit
Each Party shall continue to facilitate customs clearance

of goods in transit from or to the other Party in accordance
with paragraph 3 of Article V of the GATT 1994.
Article 43
Cooperation and Exchange of Information
1. The Parties shall cooperate and exchange information with

each other in the field of customs procedures, including their
enforcement against the trafficking of prohibited goods and the
importation and exportation of goods suspected of infringing
intellectual property rights.
2. Such cooperation and exchange of information shall be

implemented as provided for in the Implementing Agreement.
3. Paragraph 3 of Article 6 shall not apply to the exchange

of information under this Article.
Article 44
Sub-Committee on Customs Procedures
32
operation of this Chapter, the Sub-Committee on Customs
Procedures (hereinafter referred to in this Article as “the
Sub-Committee”) shall be established in accordance with Article
11.
(a) reviewing the implementation and operation of this

Chapter;
(b) reporting the findings of the Sub-Committee to the

Joint Committee;
(c) identifying areas, relating to this Chapter, to be

improved for facilitating trade between the Parties;
and


4. The composition of the Sub-Committee shall be specified

in the Implementing Agreement.
Chapter 5
Sanitary and Phytosanitary Measures
Article 45
Scope
This Chapter shall apply to all sanitary and phytosanitary

(hereinafter referred to in this Chapter as "SPS") measures of
the Parties under the Agreement on the Application of Sanitary
and Phytosanitary Measures in Annex 1A to the WTO Agreement
(hereinafter referred to in this Agreement as “SPS Agreement”),
that may, directly or indirectly, affect trade in goods between
the Parties.
Article 46
Reaffirmation of Rights and Obligations
The Parties reaffirm their rights and obligations relating

to SPS measures under the SPS Agreement.
Article 47
Enquiry Points
33
Each Party shall designate an enquiry point which is able
to answer all reasonable enquiries from the other Party
regarding SPS measures and, if appropriate, to provide the
relevant information.
Article 48
Sub-Committee on Sanitary and Phytosanitary Measures

operation of this Chapter, the Sub-Committee on Sanitary and
Phytosanitary Measures (hereinafter referred to in this Article
as “the Sub-Committee”) shall be established pursuant to
Article 11.
(a) exchange of information on such matters as occurrences

of SPS incidents in the Parties and non-Parties, and
change or introduction of SPS-related regulations and
standards of the Parties, which may, directly or
indirectly, affect trade in goods between the Parties;
(b) science-based consultations to identify and address

specific issues that may arise from the application
of SPS measures with the objective of achieving
mutually acceptable solutions;
(c) consulting on cooperative efforts between the Parties

in international fora in relation to SPS measures;
(d) discussing technical cooperation between the Parties

on SPS measures with a view to strengthening it;
(e) reviewing the implementation and operation of this

Chapter;
(f) reporting the findings of the Sub-Committee to the

(g) carrying out other functions as may be delegated by

3. The Sub-Committee shall be composed of government

officials of the Parties with responsibility for SPS measures.

34
5. The Sub-Committee may, if necessary, establish ad hoc
technical working groups as its subsidiary bodies relating to
a specific area of SPS measures.
Article 49
Non-application of Chapter 13
Chapter 13 shall not apply to this Chapter.
Chapter 6
Technical Regulations, Standards, and
Article 50
Objectives
The objectives of this Chapter are to promote trade between

the Parties by:
(a) ensuring that technical regulations, standards, and

conformity assessment procedures do not create
unnecessary obstacles to trade;
(b) promoting mutual understanding of the technical

regulations, standards, and conformity assessment
procedures in each Party;
(c) strengthening information exchange and cooperation

between the Parties in relation to the preparation,
adoption, and application of technical regulations,
standards, and conformity assessment procedures;
(d) strengthening cooperation between the Parties at
international and regional fora on the work related
to standardization and conformity assessments; and
(e) providing a framework to realize these objectives.
Article 51
Scope
1. This Chapter shall apply to technical regulations,

standards, and conformity assessment procedures as defined in
the Agreement on Technical Barriers to Trade in Annex 1A to the
WTO Agreement (hereinafter referred to in this Chapter as “TBT
Agreement”).
2. This Chapter shall not apply to purchasing specifications

prepared by governmental bodies for production or consumption
requirements of governmental bodies and sanitary and
phytosanitary measures as defined in Annex A of the SPS
Agreement.
35
3. Nothing in this Chapter shall limit the right of a Party
to prepare, adopt, and apply technical regulations and
standards, to the extent necessary, to fulfill a legitimate
objective. Such legitimate objectives are, inter alia, national
security requirements; the prevention of deceptive practices;
and protection of human health or safety, animal or plant life
or health, or the environment.
Article 52
Reaffirmation of Rights and Obligations
The Parties reaffirm their rights and obligations relating

to technical regulations, standards, and conformity assessment
procedures under the TBT Agreement.
Article 53
Cooperation
1. For the purposes of ensuring that technical regulations,

standards, and conformity assessment procedures do not create
unnecessary obstacles to trade in goods between the Parties,
the Parties shall, where possible, cooperate in the field of
technical regulations, standards, and conformity assessment
procedures.
2. The forms of cooperation pursuant to paragraph 1 may

include the following:
(a) conducting joint studies and holding seminars, in

order to enhance mutual understanding of technical
procedures in each Party;
(b) exchanging government officials of the Parties for

training purposes;
(c) exchanging information on technical regulations,

standards, and conformity assessment procedures;
(d) contributing, where appropriate, jointly to the

activities related to technical regulations,
standards, and conformity assessment procedures in
international and regional fora;
(e) encouraging the bodies responsible for technical

procedures in each Party to cooperate on matters of
mutual interest; and
(f) enhancing participation in the existing framework for

mutual recognition established under international
agreements or developed by relevant international and
regional bodies.
36
3. The implementation of this Article shall be subject to the
availability of appropriated funds and the applicable laws and
regulations of each Party.
Article 54
Enquiry Points
1. Each Party shall designate an enquiry point which shall

have the responsibility to coordinate the implementation of
this Chapter.
2. Each Party shall provide the other Party with the name of
its designated enquiry point and the contact details of relevant
officials in that organization including information on
telephone, facsimile, e-mail, and other relevant details.
3. Each Party shall notify the other Party promptly of any

change of its enquiry point or any amendments to the information
of the relevant officials.
Article 55
Sub-Committee on Technical Regulations, Standards, and

operation of this Chapter, the Sub-Committee on Technical
Regulations, Standards and Conformity Assessment Procedures
(a) coordinating cooperation pursuant to Article 53;
(b) identifying mutually agreed priority sectors for

enhanced cooperation, including giving favorable
consideration to any proposal made by either Party;
(c) establishing work programs in mutually agreed

priority areas to facilitate the acceptance of
conformity assessment results of the other Party and
equivalence of technical regulations;
(d) monitoring the progress of work programs;
(e) reviewing the implementation and operation of this

Chapter;
(f) facilitating technical consultations;
(g) reporting, where appropriate, its findings to the

(h) carrying out other functions as may be delegated by

37
4. The Sub-Committee shall be:
(a) composed of representatives of the Governments of the

Parties; and
(b) co-chaired by officials of the Governments of the

Parties.
Article 56
Chapter 7
Trade in Services
Article 57
Scope
1. This Chapter shall apply to measures by a Party affecting

trade in services.
2. This Chapter shall not apply to:
(a) in respect of air transport services, measures

affecting traffic rights, however granted; or to
measures affecting services directly related to the
exercise of traffic rights, other than measures
affecting:
(i) aircraft repair and maintenance services;
(ii) the selling and marketing of air transport

services; and
(iii) computer reservation system services;
(b) cabotage in maritime transport services;
(c) measures pursuant to immigration laws and

regulations;
(d) measures affecting natural persons of a Party seeking

access to employment market of the other Party, nor
measures regarding nationality, or residence or
employment on a permanent basis; and
(e) government procurement.
3. Annex 4 provides supplementary provisions to this Chapter

on financial services, including scope and definitions.
38
Article 58
Definitions
(a) “aircraft repair and maintenance services” means such

activities when undertaken on an aircraft or a part
thereof while it is withdrawn from service and does
not include so-called line maintenance;
(b) “commercial presence” means any type of business or

professional establishment, including through:
(i) the constitution, acquisition, or maintenance of

a juridical person; or
(ii) the creation or maintenance of a branch or a

representative office,
within the Area of a Party for the purposes of supplying

a service;
(c) “computer reservation system services” means services

provided by computerized systems that contain
information about air carriers’ schedules,
availability, fares and fare rules, through which
reservations can be made or tickets may be issued;
(d) “juridical person” means any legal entity duly

constituted or otherwise organized under applicable
law, whether for profit or otherwise, and whether
privately-owned or governmentally-owned, including
any corporation, trust, partnership, joint venture,
sole proprietorship, or association;
(e) “juridical person of the other Party” means a

juridical person which is either:
(i) constituted or otherwise organized under the law

of the other Party and is engaged in substantive
business operations in the Area of the other
Party; or
(ii) in the case of the supply of a service through

commercial presence, owned or controlled by:
(A) natural persons of the other Party; or
(B) juridical persons of the other Party

identified under subparagraph (i);
(f) a juridical person is:
39
(i) “owned” by persons of a Party or persons of a
non-Party if more than 50 percent of the equity
interest in it is beneficially owned either by
the former persons or by the latter persons;
(ii) “controlled” by persons of a Party or persons of

a non-Party if either the former persons or the
latter persons have the power to name a majority
of its directors or otherwise to legally direct
its actions; and
(iii) “affiliated” with another person when it controls,

or is controlled by, that other person; or when
it and the other person are both controlled by
the same person;
(g) “measure” means any measure, whether in the form of

a law, regulation, rule, procedure, decision,
administrative action or any other form;
Note: “measure” shall include taxation measures to

the extent covered by the GATS.
(h) “measures by a Party” means any measures taken by:
(i) the central or local governments or authorities

of a Party; and
(ii) non-governmental bodies in the exercise of powers

delegated by the central or local governments or
authorities of a Party;
(i) “measures by a Party affecting trade in services”

includes measures in respect of:
(i) the purchase, payment, or use of a service;
(ii) the access to and use of, in connection with the

supply of a service, services which are required
by the Party to be offered to the public generally;
and
(iii) the presence, including commercial presence, of

persons of the other Party for the supply of a
service in the Area of the former Party;
(j) “monopoly supplier of a service” means any person,

public or private, which in the relevant market of the
Area of a Party is authorized or established formally
or in effect by that Party as the sole supplier of that
service;
40
(k) “natural person of the other Party” means a natural
person who resides in the other Party or elsewhere,
and who is a national of the other Party under the law
of the other Party;
(l) "person" means either a natural person or a juridical

person;
(m) “sector” of a service means:
(i) with reference to a specific commitment,

one or more, or all, sub-sectors of that service,
as specified in a Party’s Schedule of Specific
Commitments in Annex 5; or
(ii) otherwise, the whole of that service sector,

including all of its sub-sectors;
(n) “service” includes any service in any sector except

a service supplied in the exercise of governmental
authority;
(o) “service consumer” means any person that receives or

uses a service;
(p) “service of the other Party” means a service which is

supplied:
(i) from or in the Area of the other Party, or in the

case of maritime transport, by a vessel registered
under the laws of the other Party, or by a person
of the other Party which supplies the service
through the operation of a vessel or its use in
whole or in part; or
(ii) in the case of the supply of a service through

commercial presence or through the presence of
natural persons, by a service supplier of the
other Party;
(q) “service supplied in the exercise of governmental

authority” means any service which is supplied neither
on a commercial basis nor in competition with one or
more service suppliers;
(r) “service supplier” means any person that supplies a

service;
41
Note: Where the service is not supplied directly by
a juridical person but through other forms of
commercial presence such as a branch or a
representative office, the service supplier
(i.e. the juridical person) shall, nonetheless,
through such presence be accorded the treatment
provided for service suppliers under this
Chapter. Such treatment shall be extended to the
presence through which the service is supplied
and need not be extended to any other parts of
the supplier located outside the Area of a Party
where the service is supplied.
(s) “supply of a service” includes the production,

distribution, marketing, sale, and delivery of a
service;
(t) “the selling and marketing of air transport services”

means opportunities for the air carrier concerned to
sell and market freely its air transport services
including all aspects of marketing such as market
research, advertising, and distribution. These
activities do not include the pricing of air transport
services nor the applicable conditions;
(u) “trade in services” means the supply of services:
(i) from the Area of a Party into the Area of the other
Party (“cross-border supply mode”);
(ii) in the Area of a Party to the service consumer

of the other Party (“consumption abroad mode”);
(iii) by a service supplier of a Party, through

commercial presence in the Area of the other Party
(“commercial presence mode”); and
(iv) by a service supplier of a Party, through presence

of natural persons of that Party in the Area of
the other Party (“presence of natural persons
mode”); and
(v) “traffic rights” means the rights for scheduled and

non-scheduled services to operate and/or to carry
passengers, cargo and mail for remuneration or hire
from, to, within, or over a Party, including points
to be served, routes to be operated, types of traffic
to be carried, capacity to be provided, tariffs to be
charged and their conditions, and criteria for
designation of airlines, including such criteria as
number, ownership, and control.
Article 59
Market Access
42
1. With respect to market access through the modes of supply
defined in paragraph (u) of Article 58, each Party shall accord
services and service suppliers of the other Party treatment no
less favorable than that provided for under the terms,
limitations and conditions agreed and specified in its Schedule
of Specific Commitments in Annex 5.
Note: If a Party undertakes a market-access commitment in

relation to the supply of a service through the mode
of supply referred to in subparagraph (u)(i) of
Article 58 and if the cross-border movement of
capital is an essential part of the service itself,
that Party is thereby committed to allow such
movement of capital. If a Party undertakes a
market-access commitment in relation to the supply
of a service through the mode of supply referred to
in subparagraph (u)(iii) of Article 58, it is thereby
committed to allow related transfers of capital into
its Area.
2. In sectors where market-access commitments are undertaken,

the measures which a Party shall not maintain or adopt either
on the basis of a regional subdivision or on the basis of its
entire Area, unless otherwise specified in its Schedule of
Specific Commitments in Annex 5, are defined as:
(a) limitations on the number of service suppliers whether

in the form of numerical quotas, monopolies, exclusive
service suppliers, or the requirements of an economic
needs test;
(b) limitations on the total value of service transactions

or assets in the form of numerical quotas or the
requirement of an economic needs test;
(c) limitations on the total number of service operations

or on the total quantity of service output expressed
in terms of designated numerical units in the form of
quotas or the requirement of an economic needs test;
Note: This subparagraph does not cover measures of a

Party which limit inputs for the supply of
services.
(d) limitations on the total number of natural persons

that may be employed in a particular service sector
or that a service supplier may employ and who are
necessary for, and directly related to, the supply of
a specific service in the form of numerical quotas or
the requirement of an economic needs test;
(e) measures which restrict or require specific types of

legal entity or joint venture through which a service
supplier may supply a service; and
43
(f) limitations on the participation of foreign capital
in terms of maximum percentage limit on foreign
shareholding or the total value of individual or
aggregate foreign investment.
Article 60
National Treatment
1. In the sectors inscribed in its Schedule of Specific

Commitments in Annex 5, and subject to any conditions and
qualifications set out therein, each Party shall accord to
services and service suppliers of the other Party, in respect
of all measures affecting the supply of services, treatment no
less favorable than that it accords to its own like services
and service suppliers.
Note: Specific commitments assumed under this Article shall not

be construed to require either Party to compensate for any
inherent competitive disadvantages which result from the
foreign character of the relevant services or service
suppliers.
2. A Party may meet the requirement of paragraph 1 by according

to services and service suppliers of the other Party, either
formally identical treatment or formally different treatment
to that it accords to its own like services and service
suppliers.
3. Formally identical or formally different treatment shall

be considered to be less favorable if it modifies the conditions
of competition in favor of services or service suppliers of the
Party compared to like services or service suppliers of the
other Party.
4. A Party shall not invoke the preceding paragraphs under

Chapter 13 with respect to a measure of the other Party that
falls within the scope of an international agreement between
the Parties relating to the avoidance of double taxation.
Article 61
Additional Commitments
The Parties may negotiate commitments with respect to

measures affecting trade in services not subject to scheduling
under Articles 59 and 60, including those regarding
qualifications, standards, or licensing matters. Such
commitments shall be inscribed in a Party’s Schedule of Specific
Commitments in Annex 5.
Article 62
Schedule of Specific Commitments
44
1. Each Party shall set out in its Schedule the specific
commitments it undertakes under Articles 59, 60, and 61. With
respect to sectors or sub-sectors where such specific
commitments are undertaken, the Party’s Schedule of Specific
Commitments in Annex 5 shall specify:
(a) terms, limitations and conditions on market access;
(b) conditions and qualifications on national treatment;
(c) undertakings relating to additional commitments; and
(d) where appropriate, the time-frame for implementation

of such commitments.
2. Measures inconsistent with both Articles 59 and 60 shall

be inscribed in the column relating to Article 59. In this case
the inscription will be considered to provide a condition or
qualification to Article 60 as well.
Article 63
Most-Favored-Nation Treatment
1. Unless otherwise specified in Annex 6, each Party shall

accord to services and service suppliers of the other Party
treatment no less favorable than that it accords to like
services and service suppliers of any non-Party.
2. Treatment granted under other agreements concluded by a

Party and notified under Article V or Article V bis of the GATS
shall not be subject to paragraph 1.
3. If, after this Agreement enters into force, a Party

concludes or amends an agreement of the type referred to in
paragraph 2 with a non-Party, it shall provide the other Party
an opportunity to consult on the possibility of according
treatment no less favorable than that granted to services and
service suppliers of the non-Party under that agreement to like
services and service suppliers of that other Party.
Article 64
Modification of Schedules
1. Any modification or withdrawal of specific commitments on

trade in services shall be made in accordance with paragraph
1 of Article 127. In the negotiations for such modification or
withdrawal, the Parties shall endeavor, in line with
subparagraph 2(a) of Article XXI of the GATS, to maintain a
general level of mutually advantageous commitments not less
favorable to trade than that provided for in their Schedules
of Specific Commitments in Annex 5 prior to such negotiations.
45
2. With regard to the same commitment that appears in a Party’s
Schedule of Specific Commitments under both the GATS and this
Agreement, if modification or withdrawal has been made to such
commitment with regard to its Schedule of Specific Commitments
under the GATS and compensatory adjustment has been made to the
other Party as an “affected Member” in accordance with Article
XXI of the GATS, the Parties shall agree to amend this Agreement
to incorporate such modification or withdrawal into it without
further negotiation, subject to their applicable domestic
procedures.
Article 65
Qualifications, Technical Standards, and Licensing
With a view to ensuring that measures by a Party relating

to qualification requirements and procedures, technical
standards, and licensing requirements of service suppliers of
the other Party do not constitute unnecessary barriers to trade
in services, each Party shall endeavor to ensure that such
measures:
(a) are based on objective and transparent criteria, such

as competence and the ability to supply the service;
(b) are not more burdensome than necessary to ensure the

quality of the service; and
(c) in the case of licensing procedures, are not in

themselves a restriction on the supply of the service.
Article 66
Recognition
1. A Party may recognize the education or experience obtained,

requirements met, or licenses or certifications granted in the
other Party for the purposes of the fulfillment, in whole or
in part, of its standards or criteria for the authorization,
licensing, or certification of service suppliers of the other
Party.
2. Recognition referred to in paragraph 1, which may be

achieved through harmonization or otherwise, may be based upon
an agreement or arrangement between the Parties or may be
accorded unilaterally.
3. Where a Party recognizes, by agreement or arrangement

between the Party and a non-Party or unilaterally, the education
or experience obtained, requirements met, or licenses or
certifications granted in the non-Party:
(a) nothing in Article 63 shall be construed to require

the Party to accord such recognition to the education
or experience obtained, requirements met, or licenses
or certifications granted in the other Party;
46
(b) the Party shall accord the other Party an adequate
opportunity to negotiate the accession of that other
Party to such an agreement or arrangement or to
negotiate comparable ones with it between the Parties;
and
(c) where the Party accords such recognition

unilaterally, the Party shall accord the other Party
an adequate opportunity to demonstrate that the
education or experience obtained, requirements met,
or licenses or certifications granted in the other
Party should also be recognized.
Article 67
Monopolies and Exclusive Service Suppliers
1. Each Party shall ensure that any monopoly supplier of a

service in its Area does not, in the supply of the monopoly
service in the relevant market, act in a manner inconsistent
with the Party’s commitments under this Chapter.
2. Where a Party’s monopoly supplier competes, either

directly or through an affiliated juridical person, in the
supply of a service outside the scope of its monopoly rights
and which is subject to that Party’s specific commitments, the
Party shall ensure that such a supplier does not abuse its
monopoly position to act in the Area of the Party in a manner
inconsistent with such commitments.
3. If a Party has a reason to believe that a monopoly supplier

of a service of the other Party is acting in a manner inconsistent
with paragraph 1 or 2, it may request the other Party to provide
specific information concerning the relevant operations.
4. The provisions of this Article shall also apply to cases

of exclusive service suppliers, where a Party, formally or in
effect:
(a) authorizes or establishes a small number of service

suppliers; and
(b) substantially prevents competition among those

suppliers in its Area.
Article 68
Payments and Transfers
1. Except under the circumstances envisaged in Article 69,

a Party shall not apply restrictions on international transfers
and payments for current transactions relating to its specific
commitments.
47
2. Nothing in this Chapter shall affect the rights and
obligations of the Parties as members of the International
Monetary Fund under the Articles of Agreement of the
International Monetary Fund, including the use of exchange
actions which are in conformity with the Articles of Agreement
of the International Monetary Fund, provided that a Party shall
not impose restrictions on any capital transactions
inconsistently with its specific commitments under this Chapter
regarding such transactions, except under Article 69, or at the
request of the International Monetary Fund.
Article 69
Restrictions to Safeguard the Balance of Payments
1. In the event of serious balance-of-payments and external

financial difficulties or threat thereof, a Party may adopt or
maintain restrictions on trade in services on which it has
undertaken specific commitments, including on payments or
transfers for transactions related to such commitments. It is
recognized that particular pressure on the balance of payments
of a Party in the process of economic development or economic
transition may necessitate the use of restrictions to ensure,
inter alia, the maintenance of a level of financial reserves
adequate for the implementation of its program of economic
development or economic transition.
2. The restrictions referred to in paragraph 1:
(a) shall ensure that the other Party is treated as

favorably as any non-Party;
(b) shall be consistent with the Articles of Agreement of

the International Monetary Fund;
(c) shall avoid unnecessary damage to the commercial,

economic, and financial interests of the other Party;
(d) shall not exceed those necessary to deal with the

circumstances described in paragraph 1; and
(e) shall be temporary and be phased out progressively as

the situation specified in paragraph 1 improves.
3. In determining the incidence of such restrictions, a Party

may give priority to the supply of services which are more
essential to its economic or development programs. However,
such restrictions shall not be adopted or maintained for the
purpose of protecting a particular service sector.
4. Any restrictions adopted or maintained under paragraph 1,

or any changes therein, shall be promptly notified to the other
Party.
Article 70
Denial of Benefits
48
1. A Party may deny the benefits of this Chapter to a service
supplier that is a juridical person, where the denying Party
establishes that the juridical person is owned or controlled
by persons of a non-Party, and that denying Party:
(a) does not maintain diplomatic relations with that

non-Party; or
(b) adopts or maintains measures with respect to that

non-Party that prohibit transactions with the
juridical person or that would be violated or
circumvented if the benefits of this Chapter were
accorded to the juridical person.
2. Subject to prior notification and consultation, a Party

may deny the benefits of this Chapter to a service supplier that
is a juridical person, if the denying Party establishes that
the juridical person is not a service supplier of the other
Party.
Article 71
Sub-Committee on Trade in Services
1. For the purposes of effective implementation and operation

of this Chapter, the Sub-Committee on Trade in Services
(hereinafter referred to in this Article as "the
Sub-Committee") shall be established pursuant to Article 11.
(a) reviewing commitments, with respect to measures

affecting trade in services in this Chapter, with a
view to achieving further liberalization on a mutually
advantageous basis and securing an overall balance of
rights and obligations;
(b) reviewing and monitoring the implementation and

operation of this Chapter;
(c) discussing any issues related to this Chapter;
(d) reporting the findings of the Sub-Committee to the

(e) carrying out other functions as may be delegated by


Parties and may invite representatives of relevant
entities other than the Governments of the Parties
with necessary expertise relevant to the issues to be
discussed; and
49
(b) co-chaired by officials of the Governments of the
Parties.
4. The working group on financial services (hereinafter

referred to in this Article as “the Working Group”) shall be
established under the Sub-Committee. The details and procedures
of the Working Group shall be specified in Annex 4.
Article 72
Review of Commitments
1. The Parties shall review commitments on trade in services

within five years from the date of entry into force of this
Agreement, with the aim of improving the overall level of
commitments undertaken by the Parties under this Chapter.
2. In reviewing their commitments pursuant to paragraph 1,

the Parties shall take into account the principles in paragraph
1 of Article IV and paragraph 2 of Article XIX of the GATS.
Article 73
Emergency Safeguard Measures
In the event that the implementation of this Agreement

causes substantial adverse impact to a Party in a specific
service sector, the Party may request consultations with the
other Party for the purposes of taking appropriate measures to
address such adverse impact. In such consultations, the Parties
shall take into account the circumstances of the particular case
and the result of the multilateral negotiations pursuant to
Article X of the GATS if the said negotiations have been
concluded at the time of such consultations.
Chapter 8
Movement of Natural Persons
Article 74
Scope
1. This Chapter shall apply to measures affecting the

movement of natural persons of a Party who enter the other Party
and fall under one of the categories referred to in Annex 7.
2. This Chapter shall not apply to measures affecting natural

persons of a Party seeking access to employment market of the
other Party, nor measures regarding nationality, or residence
or employment on a permanent basis.
50
3. This Chapter shall not prevent a Party from applying
measures to regulate the entry of natural persons of the other
Party into, or their temporary stay in, the former Party,
including those measures necessary to protect the integrity of,
and to ensure the orderly movement of natural persons across,
its borders, provided that such measures are not applied in such
a manner as to nullify or impair the benefits accruing to the
other Party under the terms of specific commitments under
Article 76.
Note: The sole fact of requiring a visa for natural persons

of the other Party and not for those of certain
non-Parties shall not be regarded as nullifying or
impairing benefits under specific commitments under
Article 76.
Article 75
Definitions
For the purposes of this Chapter, the term “natural person

of a Party” means a natural person who resides in a Party or
elsewhere and who under the law of the Party is a national of
the Party.
Article 76
Specific Commitments
1. Each Party shall grant entry and temporary stay to natural

persons of the other Party in accordance with this Chapter
including the terms of the categories in Annex 7, provided that
the natural persons comply with the laws and regulations of the
former Party related to movement of natural persons applicable
to entry and temporary stay which are not inconsistent with the
provisions of this Chapter.
2. Neither Party shall impose or maintain any limitations on

the number of granting entry and temporary stay under paragraph
1, unless otherwise specified in Annex 7.
Article 77
Requirements and Procedures
1. Each Party shall publish or otherwise make available to

the other Party on the date of entry into force of this Agreement,
with respect to natural persons covered by that Party’s specific
commitments under Article 76, information on requirements and
procedures necessary for an effective application by natural
persons of the other Party for the grant of entry into, initial
temporary stay in or renewal thereof, and, where applicable,
permission to work in, and a change of status of temporary stay
in, the former Party.
2. Each Party shall endeavor to provide, upon request by a

natural person of the other Party, information on requirements
and procedures referred to in paragraph 1.
51
3. Each Party shall endeavor to promptly inform the other
Party of the introduction of any new requirements and procedures,
or changes in any existing requirements and procedures referred
to in paragraph 1 that affect the effective application by
natural persons of the other Party for the grant of entry into,
initial temporary stay in or renewal thereof, and, where
applicable, permission to work in, and a change of status of
temporary stay in, the former Party.
4. Each Party shall ensure that fees charged by its competent

authorities on application referred to in paragraph 1 do not
in themselves represent an unjustifiable impediment to movement
of natural persons of the other Party under this Chapter.
5. Each Party shall endeavor, to the maximum extent possible,

to take measures to simplify the requirements and to facilitate
and expedite the procedures relating to the movement of natural
persons of the other Party within the framework of its laws and
regulations.
Article 78
Sub-Committee on Movement of Natural Persons

operation of this Chapter, the Sub-Committee on Movement of
Natural Persons (hereinafter referred to in this Article as
“the Sub-Committee”) shall be established pursuant to Article
11.

(b) discussing any issues related to this Chapter,

including the subjects of further negotiations
referred to in Annex 7;
(c) reporting the findings of the Sub-Committee to the


the Joint Committee in accordance with Article 11.
Article 79
Further Negotiations
The Parties shall, after the date of the entry into force
of this Agreement, enter into negotiations in accordance with
Annex 7.
Chapter 9
Intellectual Property
52
Article 80
General Provisions
1. The Parties shall grant and ensure adequate, effective,

and non-discriminatory protection of intellectual property,
promote efficiency and transparency in the administration of
intellectual property protection system, and provide for
measures for adequate and effective enforcement of intellectual
property rights against infringement, counterfeiting, and
piracy, in accordance with the provisions of this Chapter and
the international agreements to which both Parties are parties.
2. The Parties, recognizing the growing importance of

protection of intellectual property in further promoting trade
and investment between the Parties, in accordance with their
respective laws and regulations and subject to their available
resources, shall cooperate in the field of intellectual
property.
3. Intellectual property referred to in this Chapter shall

mean all categories of intellectual property:
(a) that are subject of Articles 86 through 92; and/or
(b) that are under the Agreement on Trade-Related Aspects

of Intellectual Property Rights in Annex 1C to the WTO
Agreement (hereinafter referred to in this Chapter as
“the TRIPS Agreement”) and/or the relevant
international agreements referred to in the TRIPS
Agreement.
4. The Parties reaffirm their commitment to comply with the

obligations set out in the international agreements relating
to intellectual property to which both Parties are parties.
Article 81
National Treatment
Each Party shall accord to nationals of the other Party

treatment no less favorable than the treatment it accords to
its own nationals with regard to the protection of intellectual
property in accordance with Articles 3 and 5 of the TRIPS
Agreement.
Note: For the purposes of Articles 81 and 82, “nationals”

shall have the same meaning as in the TRIPS Agreement,
and "protection" shall include matters affecting
the availability, acquisition, scope, maintenance,
and enforcement of intellectual property rights as
well as those matters affecting the use of
intellectual property rights specifically
addressed in this Chapter.
Article 82
Most-Favored-Nation Treatment
53
Each Party shall accord to nationals of the other Party
treatment no less favorable than the treatment it accords to
the nationals of a non-Party with regard to the protection of
intellectual property in accordance with Articles 4 and 5 of
the TRIPS Agreement.
Article 83
Streamlining and Harmonization of Procedural Matters
1. For the purposes of providing efficient administration of

intellectual property protection system, each Party shall take
appropriate measures to streamline its administrative
procedures concerning intellectual property.
2. Neither Party may require the authentication of signatures

or other means of self-identification on documents to be
submitted to the competent authority of the Party, including
applications, translations into a language accepted by such
authority of any earlier application whose priority is claimed,
powers of attorney, and certifications of assignment, in the
course of application procedure or other administrative
procedures on patents, utility models, industrial designs, or
trademarks.
3. Notwithstanding paragraph 2, a Party may require:
(a) the authentication of signatures or other means of

self-identification, if the law of the Party so
provides, where the signatures or other means of
self-identification concern the change in ownership
of a patent or a registration of utility models,
industrial designs, or trademarks; and
(b) the submission of evidence if there is a reasonable

doubt as to the authenticity of the signature or other
means of self-identification on documents submitted
to the competent authority of the Party. Where the
competent authority notifies the person that the
submission of evidence is required, the notification
shall state the reason for doubting the authenticity
of the signature or other means of
self-identification.
4. Neither Party may require the certification, by any party

other than the applicant or his or her representatives, of the
accuracy of a translation of an earlier application whose
priority is claimed.
54
5. Each Party shall introduce and implement a system in which
a power of attorney for application procedures or other
administrative procedures on patents, utility models,
industrial designs, or trademarks before the competent
authority of the Party may relate to one or more applications
and/or grants or registrations identified in the power of
attorney or, subject to any exception indicated by the
appointing person, to all existing and future applications
and/or grants or registrations of that person.
6. The applications for and grants of patents and publications

thereof shall be classified in accordance with the
international patent classification system established under
the Strasbourg Agreement Concerning the International Patent
Classification of March 24, 1971, as amended. The applications
for registrations of, and registrations of, trademarks for
goods and services and publication thereof shall be classified
in accordance with the international classification system of
goods and services established under the Nice Agreement
Concerning the International Classification of Goods and
Services for the Purposes of the Registration of Marks, of June
15, 1957, as revised and amended.
7. Each Party shall endeavor to improve patent attorney system

with a view to further facilitating acquisition and utilization
of rights to patents, utility models, industrial designs and
trademarks.
Article 84
Transparency
For the purposes of further promoting transparency in

administration of intellectual property protection system,
each Party shall, in accordance with its laws and regulations:
(a) take appropriate measures to publish information at

least on applications for and grants of patents,
registrations of utility models and industrial
designs, registrations of trademarks and application
therefor, and registration of new varieties of plants
and application therefor;
(b) endeavor to make available to the interested parties

official information contained in the dossiers in
connection with matters provided for in paragraph (a);
(c) endeavor to make easily available to the public

information on intellectual property protection
system, including information on its efforts to
provide effective enforcement of intellectual
property rights.
Article 85
Promotion of Public Awareness Concerning Protection of
Intellectual Property
55
The Parties shall take appropriate measures to enhance
public awareness of protection of intellectual property
including educational and dissemination projects on the use of
intellectual property as well as on the enforcement of
intellectual property rights.
Article 86
Patents
1. Each Party shall ensure that any application for a patent

is not rejected solely on the ground that the subject matter
claimed in the application is related to a computer program.
2. The provisions of paragraph 1 shall not prejudice the

patentability of computer programs as such which shall be
determined in accordance with the laws and regulations of each
Party.
3. Each Party shall ensure that, if an invention claimed in

the application for a patent is being worked by any person other
than the applicant for the patent in that person’s business
after the publication of the application, that person or the
applicant for the patent may file a request to the competent
authority of the Party that the application be examined in
advance of other applications, in accordance with its laws and
regulations. In this case, the competent authority of the Party
may require the applicant for the patent or the person who filed
the request to furnish a proof that the invention is being worked,
a result of prior art search in relation to the application,
or a copy of the final decision by the administrative authority
for patents of the other Party or of a non-Party on an application,
which the applicant has filed in the other Party or in the
non-Party, of an invention that is the same or substantially
the same with the invention claimed in the application at issue.
Where such a request has been filed, the competent authority
of the Party shall take the request into consideration and
endeavor to examine the application in advance of other
applications, where appropriate.
4. Each Party shall ensure that a patent owner may file a

request for correction of the description, the scope of the
claims, or the drawings, that are attached to the application,
to the administrative authority for patents for the purpose of
restricting the scope of the claims.
Article 87
Industrial Designs
Each Party shall ensure adequate and effective protection

of industrial designs in accordance with Articles 25 and 26 of
the TRIPS Agreement.
Article 88
Trademarks
56
of trademarks in accordance with Articles 15 through 21 of the
TRIPS Agreement.
Article 89
Copyright and Related Rights
1. Each Party shall ensure effective protection of copyright

and related rights in accordance with its laws and regulations
and international agreements to which it is a party.
2. Each Party shall ensure that its laws and regulations be

implemented with appropriate legal remedies in order to protect
copyright and related rights in the digital environment.

regulations, take appropriate measures to promote the
development of the collective management organizations for
copyright and related rights in that Party.
Article 90
New Varieties of Plants
Each Party recognizes the importance of providing a system

of protection of new varieties of plants and shall endeavor to
provide for the protection of all plant genera and species as
early as practicable in accordance with the 1991 Act of the
International Convention for the Protection of New Varieties
of Plants.
Article 91
Geographical Indications

of geographical indications in accordance with its laws and
regulations and with the TRIPS Agreement.
Article 92
Unfair Competition
1. Each Party shall provide for effective protection against

acts of unfair competition.
2. Any act of competition contrary to honest practices in

industrial or commercial matters constitutes an act of unfair
competition.
3. The following acts, in particular, shall be prohibited as

acts of unfair competition:
(a) all acts of such a nature as to create confusion by

any means whatever with the establishment, the goods,
or the industrial or commercial activities, of a
competitor;
57
(b) false allegations in the course of trade of such a
nature as to discredit the establishment, the goods,
or the industrial or commercial activities, of a
competitor;
(c) indications or allegations the use of which in the

course of trade is liable to mislead the public as to
the nature, the characteristics, the suitability for
their purpose, or the quantity, of the goods or the
services, or the manufacturing process of the goods;
(d) acts of acquiring or holding the right to use or using

a domain name identical with or confusingly similar
to a protected trade name and trademark of another
person, for the purposes specified in the laws and
regulations of each Party, such as with the intention
to gain an unfair profit or the intention to cause
damage to that other person.
4. Each Party shall ensure in its laws and regulations

adequate and effective protection of undisclosed information
in accordance with Article 39 of the TRIPS Agreement.
5. Each Party shall establish appropriate remedies to prevent

or punish acts of unfair competition. In particular, each Party
shall ensure that any person that considers its business
interests to be affected by an act of unfair competition may
bring legal action and request suspension or prevention of the
act, destruction of the goods which constitute the act, removal
of materials and implements used for the act, or damages to
compensate for the injury which result from the act, unless
otherwise provided for in the laws and regulations of the Party.
Article 93
Enforcement – Border Measures
Each Party shall ensure adequate and effective enforcement

of border measures in accordance with Articles 51 through 60
of the TRIPS Agreement.
Article 94
Enforcement – Civil Remedies
1. Each Party shall ensure that the right holder of

intellectual property has the right to claim against the
infringer damages adequate to compensate for the injury the
right holder has suffered because of an infringement of that
person’s intellectual property right by an infringer who
knowingly, or with reasonable grounds to know, engaged in
infringing activity.
58
2. In cases where it is extremely difficult for the right
holder of intellectual property to prove the actual economic
harm due to the nature of facts concerned, each Party shall
ensure, to the extent possible in accordance with its laws and
regulations, that its judicial authorities have the authority
to determine the amount of damages based on the totality of the
evidence presented to them.
3. Each Party shall endeavor, as necessary, to take necessary

measures to improve its judicial system with a view to providing
effective civil remedies against infringement of intellectual
property rights.
Article 95
Enforcement – Criminal Remedies
Each Party shall ensure that criminal procedures and

penalties be applied in accordance with Article 61 of the TRIPS
Agreement.
Article 96
Cooperation
1. The Parties shall cooperate in the field of intellectual

property in accordance with paragraph 2 of Article 80.
2. Areas and forms of cooperation under this Article shall

be set forth in the Implementing Agreement.
3. Costs of cooperation under this Article shall be borne in

as equitable a manner as possible.
4. Chapter 13 shall not apply to this Article.
Article 97
Sub-Committee on Intellectual Property

operation of this Chapter, the Sub-Committee on Intellectual
Property (hereinafter referred to in this Article as “the

(b) discussing any issues related to intellectual

property with a view to enhancing protection of
intellectual property and enforcement of intellectual
property rights and to promoting efficient and
transparent administration of intellectual property
protection system, such as:
(i) issues on patents;
59
(ii) issues on industrial designs;
(iii) issues on trademarks;
(iv) issues on liability of internet service

providers;
(v) issues on unfair competition;
(vi) issues on border measures;
(vii) issues on geographical indications; and
(viii) issues on administrative remedies;
(c) reporting the findings and the outcome of discussions

of the Sub-Committee to the Joint Committee; and

the Joint Committee in accordance with Article 11.


Parties; and
(b) co-chaired by officials of the Governments.
Article 98
Security Exceptions
For the purposes of this Chapter, Article 73 of the TRIPS

Agreement is incorporated into and forms part of this Agreement,
mutatis mutandis.
Chapter 10
Competition
Article 99
Promotion of Competition
by Addressing Anti-competitive Activities
Each Party shall, in accordance with its laws and

regulations, promote competition by addressing
anti-competitive activities in order to facilitate the
efficient functioning of its market. Any measure taken for such
purposes shall be taken in conformity with the principles of
transparency, non-discrimination, and procedural fairness.
Article 100
Definitions
60
(a) “anti-competitive activities” means any conduct or

transaction that may be subject to penalties or relief
under the competition law of either Party; and
(b) “competition law” means:
(i) for Japan, the Law Concerning Prohibition of

Private Monopoly and Maintenance of Fair Trade
(Law No. 54, 1947) and its implementing
regulations as well as any amendments thereto; and
(ii) for Viet Nam, the Competition Law (Law No.

27/2004/QH11) and its implementing regulations as
well as any amendments thereto.
Article 101
Cooperation on Promoting Competition by Addressing
Anti-competitive Activities
The Parties shall, in accordance with their respective laws

and regulations, cooperate in the field of promoting
competition by addressing anti-competitive activities subject
to their respective available resources, with a view to
contributing to the effective enforcement of the competition
law of each Party and to avoiding or lessening the possibility
of conflicts between the Governments of the Parties in all
matters pertaining to the application of the competition law
of each Party. Such cooperation may take the form of exchange
of information, notification and coordination of enforcement
activities, and consultation.
Article 102
Technical Cooperation
The Parties agree that it is in their common interest for

the competition authorities of the Parties to work together in
technical cooperation activities related to strengthening of
competition policy and implementation of the competition law
of each Party.
Article 103
Non-application of Paragraph 3 of Article 6 and Chapter 13
Paragraph 3 of Article 6 and Chapter 13 shall not apply to

this Chapter.
Article 104
Miscellaneous
1. Detailed arrangements to implement this Chapter may be made

between the competition authorities of the Parties.
61
2. Nothing in this Chapter shall prevent the Parties from
seeking or providing assistance to one another pursuant to other
bilateral or multilateral agreements or arrangements.
3. Nothing in this Chapter shall be construed to prejudice

the policy or legal position of either Party regarding any
issues related to jurisdiction.
4. Nothing in this Chapter shall be construed to affect the

rights and obligations of either Party under other
international agreements or arrangements or under its laws.
Chapter 11
Improvement of the Business Environment
Article 105
Basic Principles
Each Party shall, in accordance with its laws and

regulations, take appropriate measures to further improve the
business environment for the persons of the other Party
conducting their business activities in the former Party.
Article 106
Government Procurement
Recognizing the importance of enhancing efficiency of its

government procurement in improving the business environment
in the Party, each Party, subject to its laws and regulations,
policies, and practices on government procurement shall
endeavor to:
(a) enhance transparency of the measures regarding

government procurement; and
(b) implement in a fair and effective manner the measures

regarding government procurement.
Article 107
Sub-Committee on Improvement of the Business Environment

operation of this Chapter, the Sub-Committee on Improvement of
the Business Environment (hereinafter referred to in this
Chapter as “the Sub-Committee”) shall be established pursuant
to Article 11.
(a) reviewing findings reported by a Liaison Office on

Improvement of the Business Environment (hereinafter
referred to in this Chapter as the “Liaison Office”)
to be designated by each Party under Article 109;
62
(b) addressing and seeking ways to resolve issues related
to the business environment on its own initiative or
based on the findings reported by the Liaison Office;
(c) reporting its findings and making recommendations,

including those on measures that should be taken by
the Parties, to the Parties;
(d) reviewing, where appropriate, the measures taken by

the Parties in relation to such recommendations
referred to in subparagraph (c);
(e) making available to the public, in an appropriate

manner, the recommendations referred to in
subparagraph (c) and the results of the review
referred to in subparagraph (d);
(f) reporting promptly the recommendations referred to in

subparagraph (c) and other findings in relation to the
implementation and operation of this Chapter to the
Joint Committee;
(g) cooperating, in an appropriate manner, with other

Sub-Committees established under this Agreement, with
a view to avoiding unnecessary duplication of works.
The forms of such cooperation may include:
(i) informing the results of consideration to such

other Sub-Committees;
(ii) seeking opinions from such other Sub-Committees;
(iii) inviting to the Sub-Committee the members of such

other Sub-Committees; and
(iv) where appropriate, transferring the relevant

issues to such other Sub-Committees.
3. The Sub-Committee shall be composed of representatives of

the Governments of the Parties. The Sub-Committee may invite
representatives of relevant entities other than the Governments
of the Parties with the necessary expertise relevant to the
issues to be addressed.

Article 108
Consulting Fora
Where appropriate, the Parties may make use of existing

consulting fora between the Parties for improvement of the
business environment in the Parties in connection with the
matters covered by this Chapter.
63
Article 109
Liaison Office
1. Each Party shall designate and maintain the Liaison Office

in the Party. The designation of the Liaison Office by each Party
shall be notified to the other Party.
2. The functions of the Liaison Office in each Party shall

be:
(a) receiving complaints, inquiries, and/or requests for

consultations from the persons of the other Party with
regard to the laws, regulations, and other measures
of the former Party which may adversely affect the
business activities of such persons of the other
Party;
(b) transmitting the complaints, inquiries, and/or

requests for consultations referred to in
subparagraph (a) to relevant authorities of the former
Party;
(c) transmitting responses from the relevant authorities

of the former Party to the persons that filed the
complaints, made inquiries, and/or made request for
consultations;
(d) providing the persons referred to in subparagraph (a)

with necessary information and advice in
collaboration with relevant authorities of the former
Party; and
(e) reporting its findings, with regard to the exercise

of its functions referred to in subparagraphs (a)
through (d), to the Joint Committee, relevant
Sub-Committees, and/or the existing consulting fora
referred to in Article 108.
3. The Liaison Office in each Party shall endeavor to respond

within a reasonable period of time to the persons that filed
complaints, made inquiries, and/or made requests for
consultations.
4. Communications between the Liaison Office in a Party and

the persons of the other Party referred to in paragraph 2 may
be conducted through an authority or an organization designated
by the Government of the latter Party.
5. Paragraphs 2 through 4 shall not be construed as to prevent

or restrict any contacts made by the persons of a Party directly
to relevant authorities of the other Party.
64
Article 110
Chapter 12
Cooperation
Article 111
Basic Principles
The Parties shall, in accordance with their respective

applicable laws and regulations, promote cooperation under this
Agreement for their mutual benefits in order to liberalize and
facilitate trade and investment between the Parties and to
promote the well-being of the peoples of the Parties. For this
purpose, the Parties shall cooperate between the Governments
of the Parties and, where necessary and appropriate, encourage
and facilitate cooperation between the parties, one or both of
whom are entities other than the Governments of the Parties,
in the following fields:
(a) agriculture, forestry, and fisheries;
(b) trade and investment promotion;
(c) small and medium enterprises;
(d) human resource management and development;
(e) tourism;
(f) information and communications technology;
(g) environment;
(h) transportation; and
(i) other fields to be mutually agreed by the Parties.
Article 112
Areas and Forms of Cooperation
Areas and forms of cooperation under this Chapter shall

be set forth in the Implementing Agreement.
Article 113
Implementation
1. The implementation of cooperation under this Chapter shall

be subject to the availability of appropriated funds and other
resources, and the applicable laws and regulations of each
Party.
65
2. Costs of cooperation under this Chapter shall be borne in
as equitable a manner as possible between the Parties through
efficient and effective utilization of resources.
Article 114
Sub-Committee on Cooperation

operation of this Chapter, the Sub-Committee on Cooperation
(a) exchanging views and information on cooperation in

each of the fields of cooperation referred to in
Article 111 and identifying ways of further
cooperation between the Parties;
(b) monitoring, reviewing, and discussing issues

concerning the effective implementation and
(c) reporting the findings and actions taken by the

Sub-Committee to the Joint Committee regarding
issues relating to the implementation and operation
of this Chapter;
(d) supervising the functions and activities of the

working groups to be established pursuant to
paragraph 6;
(e) establishing its own rules and procedures;
(f) discussing any issues related to this Chapter; and
(g) performing other functions as may be delegated by the

Joint Committee pursuant to Article 11.
3. The Sub-Committee shall respect existing consultation

mechanisms between the Parties for Official Development
Assistance and other existing cooperation schemes and, as
appropriate, share information with such mechanisms to ensure
effective and efficient implementation of cooperative
activities.
4. The Sub-Committee shall be composed of representatives of

the Governments of the Parties. The Sub-Committee may invite
representatives of relevant entities other than the Governments
of the Parties as resource persons with the necessary expertise
relevant to the issues to be addressed.

66
6. The Sub-Committee may establish a working group under the
Sub-Committee for each of the fields of cooperation referred
to in Article 111. The functions, composition, and other
details of the working groups may be set forth in the
Implementing Agreement.
Article 115
Chapter 13
Dispute Settlement
Article 116
Scope
1. Unless otherwise provided for in this Agreement, this

Chapter shall apply with respect to the settlement of disputes
between the Parties concerning the interpretation or
application of this Agreement.
2. Nothing in this Chapter shall prejudice any rights of the

Parties to have recourse to dispute settlement procedures
available under any other international agreement to which both
Parties are parties.
3. Notwithstanding paragraph 2, once a dispute settlement

procedure has been initiated under this Chapter or under any
other international agreement to which both Parties are parties
with respect to a particular dispute, that procedure shall be
used to the exclusion of any other procedure for that particular
dispute. However, this shall not apply if substantially
separate and distinct rights or obligations under different
international agreements are in dispute.
4. For the purposes of paragraphs 2 and 3, a dispute

settlement procedure shall be deemed to have been initiated when
a Party has requested the establishment of, or referred a
dispute to, an arbitral tribunal or a dispute settlement panel,
in accordance with this Chapter or any other international
agreement to which the Parties are parties.
Article 117
Consultations
1. Either Party may make a request in writing for

consultations to the other Party concerning any matter on the
interpretation or application of this Agreement.
67
2. Any request for consultations shall be submitted in
writing, containing the identification of the specific measures
at issue and indication of the factual and legal basis
(including, if applicable, the provisions of this Agreement
alleged to have been breached and any other relevant provisions)
of the complaint.
3. When a Party makes a request for consultations pursuant

to paragraph 1, the other Party shall reply to the request and
enter into consultations in good faith within 30 days after the
date of receipt of the request, with a view to reaching a prompt
and mutually satisfactory resolution of the matter. In case
of consultations regarding perishable goods, the other Party
shall enter into consultations within 15 days after the date
of receipt of the request.
Article 118
Good Offices, Conciliation, or Mediation
1. Good offices, conciliation, or mediation may be requested

at any time by either Party. They may begin at any time by
agreement of the Parties and be terminated at any time upon the
request of either Party.
2. If the Parties agree, good offices, conciliation, or

mediation may continue while the proceedings of the arbitral
tribunal provided for in this Chapter are in progress.
Article 119
Establishment of Arbitral Tribunals
1. The complaining Party that made a request for

consultations under Article 117 may request in writing the
establishment of an arbitral tribunal to the Party complained
against:
(a) if the Party complained against does not enter into

such consultations within 30 days, or within 15 days
in case of consultations regarding perishable goods,
after the date of receipt of the request for such
consultations; or
(b) if the Parties fail to resolve the dispute through

such consultations within 60 days, or within 30 days
in case of consultations regarding perishable goods,
after the date of receipt of the request for such
consultations,
provided that the complaining Party considers that any benefit

accruing to it under this Agreement is being nullified or
impaired as a result of the failure of the Party complained
against to carry out its obligations under this Agreement, or
as a result of the application by the Party complained against
of measures which are in conflict with its obligations under
this Agreement.
68
2. Any request for the establishment of an arbitral tribunal
pursuant to this Article shall identify:
(a) the legal basis of the complaint including the

provisions of this Agreement alleged to have been
breached and any other relevant provisions; and
(b) the factual basis for the complaint.
3. Each Party shall, within 30 days after the date of receipt

of the request for the establishment of an arbitral tribunal,
appoint one arbitrator who may be its national and propose up
to three candidates to serve as the third arbitrator who shall
be the chair of the arbitral tribunal. The third arbitrator
shall not be a national of either Party, nor have his or her
usual place of residence in either Party, nor be employed by
either Party, nor have dealt with the dispute in any capacity.
4. The Parties shall agree on and appoint the third arbitrator

within 45 days after the date of receipt of the request for the
establishment of an arbitral tribunal, taking into account the
candidates proposed pursuant to paragraph 3.
5. If either Party has not appointed an arbitrator pursuant

to paragraph 3, or if the Parties fail to agree on and appoint
the third arbitrator pursuant to paragraph 4, the
Director-General of the World Trade Organization shall
immediately be requested to make the necessary appointments.
In the event that the Director-General is a national of either
Party, the Deputy Director-General or the officer next in
seniority who is not a national of either Party shall be
requested to make the necessary appointments.
6. The date of the establishment of an arbitral tribunal shall

be the date on which the chair is appointed.
7. An arbitral tribunal should be composed of arbitrators

with relevant technical or legal expertise.
Article 120
Functions of Arbitral Tribunals
1. The arbitral tribunal established pursuant to Article 119:
(a) should consult with the Parties as appropriate and

provide adequate opportunities for the development
of a mutually satisfactory resolution;
(b) shall make its award in accordance with this

Agreement and applicable rules of international law;
(c) shall set out, in its award, its findings of law and
fact, together with the reasons therefor; and
69
(d) may, apart from giving its findings, include in its
award suggested implementation options for the
Parties to consider in conjunction with Article 123.
2. The arbitral tribunal may seek, from the Parties, such

relevant information as it considers necessary and appropriate.
The Parties shall respond promptly and fully to any request by
the arbitral tribunal for such information.
3. The arbitral tribunal may seek information from any

relevant source and may consult experts to obtain their opinion
on certain aspects of the matter. With respect to factual
issues concerning a scientific or other technical matter raised
by a Party, the arbitral tribunal may request advisory reports
in writing from experts. The arbitral tribunal may, at the
request of a Party or on its own initiative, select, in
consultation with the Parties, no fewer than two scientific or
technical experts who shall assist the arbitral tribunal
throughout its proceedings, but who shall not have the right
to vote in respect of any decision to be made by the arbitral
tribunal, including its award.
Article 121
Proceedings of Arbitral Tribunals
1. The rules and procedures as set out in this Article shall

apply to the proceedings of an arbitral tribunal.
2. The Parties, in consultation with the arbitral tribunal,

may agree to adopt additional rules and procedures not
inconsistent with the provisions of this Article.
3. After consulting the Parties, the arbitral tribunal shall

as soon as practicable and whenever possible within seven days
after the establishment of the arbitral tribunal, fix the
timetable for the arbitral tribunal process. The timetable
fixed for the arbitral tribunal shall include precise deadlines
for written submissions by the Parties. Modifications to such
timetable may be made by the agreement of the Parties in
consultation with the arbitral tribunal.
4. The venue for the arbitral tribunal proceedings shall be

decided by mutual agreement between the Parties. If there is
no agreement, the venue shall alternate between the capitals
of the Parties with the first meeting of the arbitral tribunal
proceedings to be held in the capital of the Party complained
against.
5. The arbitral tribunal shall meet in closed session. The

Parties shall be present at the meetings only when invited by
the arbitral tribunal to appear before it.
70
6. The Parties shall be given the opportunity to attend any
of the presentations, statements or rebuttals in the
proceedings. Any information provided or written submissions
made by a Party to the arbitral tribunal, including any comments
on the descriptive part of the draft award and responses to
questions put by the arbitral tribunal, shall be made available
to the other Party.
7. The deliberations of the arbitral tribunal and the

documents submitted to it shall be kept confidential.
8. Notwithstanding paragraph 7, either Party may make public

statements as to its views regarding the dispute, but shall
treat as confidential, information provided and written
submissions made by the other Party to the arbitral tribunal
which that other Party has designated as confidential. Where
a Party has provided information or made written submissions
designated to be confidential, that Party shall, upon request
of the other Party, provide a non-confidential summary of the
information or written submissions which may be disclosed
publicly.
9. The award of the arbitral tribunal shall be drafted without

the presence of the Parties, and in the light of the information
provided and the statements made.
10. The arbitral tribunal shall, within 90 days after the date
of its establishment, submit to the Parties its draft award,
including both the descriptive part and its findings and
conclusions, for the purposes of enabling the Parties to review
it. When the arbitral tribunal considers that it cannot submit
its draft award within the aforementioned 90 day period, it may
extend that period with the consent of the Parties. A Party
may submit comments in writing to the arbitral tribunal on the
draft award within 15 days after the date of submission of the
draft award.
11. The arbitral tribunal shall issue its award within 30 days
after the date of submission of the draft award.
12. The arbitral tribunal shall attempt to make its decisions,

including its award, by consensus but may also make its
decisions, including its award, by majority vote.
13. The award of the arbitral tribunal shall be final and

binding on the Parties.
Article 122
Termination of Proceedings
The Parties may agree to terminate the proceedings of the

arbitral tribunal by jointly so notifying the chair of the
arbitral tribunal at any time before the issuance of the award
to the Parties.
71
Article 123
Implementation of Award
1. The Party complained against shall promptly comply with

the award of the arbitral tribunal issued pursuant to Article
121.
2. The Party complained against shall, within 20 days after

the date of issuance of the award, notify the complaining Party
of the period of time in which to implement the award. If the
complaining Party considers the period of time notified to be
unacceptable, it may refer the matter to an arbitral tribunal
which then determines the reasonable implementation period.
3. If the Party complained against considers it impracticable

to comply with the award within the implementation period as
determined pursuant to paragraph 2, the Party complained
against shall, no later than the expiry of that implementation
period, enter into consultations with the complaining Party,
with a view to developing mutually satisfactory compensation.
If no satisfactory compensation has been agreed within 20 days
after the date of expiry of that implementation period, the
complaining Party may notify the Party complained against that
it intends to suspend the application to the Party complained
against of concessions or other obligations under this
Agreement.
4. If the complaining Party considers that the Party

complained against has failed to comply with the award within
the implementation period as determined pursuant to paragraph
2, it may refer the matter to an arbitral tribunal to confirm
the failure.
5. If the arbitral tribunal to which the matter is referred

pursuant to paragraph 4 confirms that the Party complained
against has failed to comply with the award within the
implementation period as determined pursuant to paragraph 2,
the complaining Party may, within 30 days after the date of such
confirmation by the arbitral tribunal, notify the Party
complained against that it intends to suspend the application
to the Party complained against of concessions or other
obligations under this Agreement.
6. The suspension of the application of concessions or other

obligations under this Agreement pursuant to paragraphs 3 and
5 may only be implemented at least 30 days after the date of
the notification in accordance with those paragraphs. Such
suspension shall:
(a) not be effected if, in respect of the dispute to which

the suspension relates, consultations or
proceedings before the arbitral tribunal are in
progress;
72
(b) be temporary, and be discontinued when the Parties
reach a mutually satisfactory resolution or where
compliance with the award is effected;
(c) be restricted to the same level of nullification or

impairment that is attributable to the failure to
comply with the award; and
(d) be restricted to the same sector or sectors to which

the nullification or impairment relates, unless it
is not practicable or effective to suspend the
application of concessions or other obligations
under this Agreement in such sector or sectors.
7. If the Party complained against considers that the

requirements for the suspension of the application to it of
concessions or other obligations under this Agreement by the
complaining Party set out in paragraph 6 have not been met, it
may request consultations with the complaining Party. The
complaining Party shall enter into consultations within 10 days
after the date of receipt of the request. If the Parties fail
to resolve the matter within 30 days after the date of receipt
of the request for consultations pursuant to this paragraph,
the Party complained against may refer the matter to an arbitral
tribunal.
8. The arbitral tribunal that is established for the purposes

of this Article shall, wherever possible, have, as its
arbitrators, the arbitrators of the original arbitral tribunal.
If this is not possible, then the arbitrators to the arbitral
tribunal that is established for the purposes of this Article
shall be appointed pursuant to paragraphs 3 through 5 of Article
119. Unless the Parties agree to a different period, the
arbitral tribunal established for the purposes of this Article
shall issue its award within 60 days after the date when the
matter is referred to it. Such award shall be binding on the
Parties.
Article 124
Expenses
Each Party shall bear the costs of the arbitrator appointed

by it and its representation in the proceedings of the arbitral
tribunal. The other costs of the arbitral tribunal shall be
borne by the Parties in equal shares, unless otherwise agreed
by the Parties.
73
Chapter 14
Final Provisions
Article 125
Table of Contents and Headings
The table of contents and headings of the Chapters and the

Articles of this Agreement are inserted for convenience of
reference only and shall not affect the interpretation of this
Agreement.
Article 126
Annexes and Notes
The Annexes and Notes to this Agreement shall form an

integral part of this Agreement.
Article 127
Amendment
1. This Agreement may be amended by agreement between the

Parties. Such amendment shall be approved by the Parties in
accordance with their respective legal procedures, and shall
enter into force on the date to be agreed by the Parties.
2. Notwithstanding paragraph 1, amendments relating only to

the following may be made by diplomatic notes exchanged between
the Governments of the Parties:
(a) Annex 1, provided that the amendments are made in

accordance with the amendment of the Harmonized
System, and include no change on the rates of customs
duty to be applied by a Party to the originating goods
of the other Party in accordance with Annex 1;
(b) Annex 2; or
(c) Attachment to Annex 3.
Article 128
Entry into Force
This Agreement shall enter into force on the first day of

the second month following the month in which the Governments
of the Parties exchange diplomatic notes informing each other
that their respective legal procedures necessary for entry into
force of this Agreement have been completed. It shall remain
in force unless terminated pursuant to Article 129.
Article 129
Termination
Either Party may terminate this Agreement by giving one

year’s advance notice in writing to the other Party.
74
IN WITNESS WHEREOF, the undersigned, being duly authorized
by their respective Governments, have signed this Agreement.
DONE at Tokyo on this twenty-fifth day of December in the

year 2008 in duplicate in the English language.
For Japan: For the Socialist Republic

of Viet Nam:
中曽根弘文 Vu Huy Hoang
75
Annex 2
Product Specific Rules
1. For the purposes of the product specific rules set out

in this Annex and the Attachment to Annex 3, the term:
(a) “LVC 40%” means that the good has a local value
content, calculated using the formula set out in
Article 27, of not less than 40 percent, and the final
process of production has been performed in a Party;
Note: For the purposes of this Annex, subparagraph

2(a) of Article 27 shall apply.
(b) “CC” denotes a change to the chapter, heading or

subheading from any other chapter. This means that
all non-originating materials used in the
production of the good have undergone a change in
tariff classification at the 2-digit level (i.e. a
change in chapter) of the HS;
(c) “CTH” denotes a change to the chapter, heading or

subheading from any other heading. This means that
all non-originating materials used in the
change in heading) of the HS;
(d) “CTSH” denotes a change to the chapter, heading or

subheading from any other subheading. This means
that all non-originating materials used in the
change in subheading) of the HS; and
(e) “WO” means that the good is wholly obtained or

produced entirely in a Party as defined in Article
25.
2. This Annex is based on the Harmonized System as amended

on 1 January 2007.
3. For the purposes of subparagraph 1(b) of Article 28, the

following shall apply:
(a) in the case of a good classified under subheadings

0901.21, 0901.22, 1803.10, 1803.20, and 1805.00 of
the HS, the total value of non-originating materials
used in its production that have not undergone the
required CTC does not exceed 10 percent of the FOB;
and
694
(b) in the case of a good classified under subheading
2103.90 of the HS, the total value of
non-originating materials used in its production
that have not undergone the required CTC does not
exceed seven percent of the FOB.
695
Tariff item number Description of goods Product
specific
rules
Section I Live animals; animal products (Chapter 1-5)
Chapter 1 Live animals CC

Chapter 2 Meat and edible meat offal CC except from
Chapter 1.
Chapter 3 Fish and crustaceans, mollusks and CC
other aquatic invertebrates
Chapter 4 Dairy produce; birds’ eggs; natural CC
honey; edible products of animal
origin, not elsewhere specified or
included
Chapter 5 Products of animal origin, not CC
elsewhere specified or included
Section II Vegetable products (Chapter 6-14)
Chapter 6 Live trees and other plants; bulbs, CC
roots and the like; cut flowers and
ornamental foliage
Chapter 7 Edible vegetables and certain roots and CC
tubers
Chapter 8 Edible fruit and nuts; peel of citrus
fruit or melons
08.01 Coconuts, Brazil nuts and cashew nuts,
fresh or dried, whether or not shelled
or peeled.
- Coconuts:
0801.11 -- Desiccated CC
0801.19 -- Other CC
- Brazil nuts:
0801.21 -- In shell CC
0801.22 -- Shelled CC
- Cashew nuts:
0801.31 -- In shell CC
0801.32 -- Shelled CTSH
08.02 Other nuts, fresh or dried, whether or CC
not shelled or peeled.
08.03 0803.00 Bananas, including plantains, fresh or CC
dried.
08.04 Dates, figs, pineapples, avocados, CC
guavas, mangoes and mangosteens, fresh
or dried.
08.05 Citrus fruit, fresh or dried. CC
08.06 Grapes, fresh or dried. CC
08.07 Melons (including watermelons) and CC
papaws (papayas), fresh.
08.08 Apples, pears and quinces, fresh. CC
08.09 Apricots, cherries, peaches (including CC
nectarines), plums and sloes, fresh.
696
08.10 Other fruit, fresh. CC
08.11 Fruit and nuts, uncooked or cooked by CC
steaming or boiling in water, frozen,
whether or not containing added sugar
or other sweetening matter.
08.12 Fruit and nuts, provisionally preserved CC
(for example, by sulphur dioxide gas,
in brine, in sulphur water or in other
preservative solutions), but
unsuitable in that state for immediate
consumption.
08.13 Fruit, dried, other than that of CC
headings 08.01 to 08.06; mixtures of
nuts or dried fruits of this Chapter.
08.14 0814.00 Peel of citrus fruit or melons CC
(including watermelons), fresh,
frozen, dried or provisionally
preserved in brine, in sulphur water or
in other preservative solutions.
Chapter 9 Coffee, tea, maté and spices
09.01 Coffee, whether or not roasted or CC
decaffeinated; coffee husks and skins;
coffee substitutes containing coffee in
any proportion.
09.02 Tea, whether or not flavored. CC
09.03 0903.00 Maté. CC
09.04 Pepper of the genus Piper; dried or CC
crushed or ground fruits of the genus
Capsicum or the genus Pimenta.
09.05 0905.00 Vanilla. CC
09.06 Cinnamon and cinnamon-tree flowers. CC
09.07 0907.00 Cloves (whole fruit, cloves and stems). CC
09.08 Nutmeg, mace and cardamoms. CC
09.09 Seeds of anise, badian, fennel, CC
coriander, cumin or caraway; juniper
berries.
09.10 Ginger, saffron, turmeric (curcuma),
thyme, bay leaves, curry and other
spices.
0910.10 - Ginger CC
0910.20 - Saffron CC
0910.30 - Turmeric (curcuma) CC
- Other spices：
0910.91 -- Mixtures referred to in Note 1(b) to CC
this Chapter
0910.99 -- Other CTSH for
Curry.
CC for any
other good.
Chapter 10 Cereals CC
Chapter 11 Products of the milling industry; malt;
starches; inulin; wheat gluten
697
11.01 1101.00 Wheat or meslin flour. CC
11.02 Cereal flours other than of wheat or CC
meslin.
11.03 Cereal groats, meal and pellets. CC
11.04 Cereal grains otherwise worked (for CC
example, hulled, rolled, flaked,
pearled, sliced or kibbled), except
rice of heading 10.06; germ of cereals,
whole, rolled, flaked or ground.
11.05 Flour, meal, powder, flakes, granules CC except from
and pellets of potatoes. Chapter 7.
11.06 Flour, meal and powder of the dried
leguminous vegetables of heading 07.13,
of sago or of roots or tubers of heading
07.14 or of the products of Chapter 8.
1106.10 - Of the dried leguminous vegetables of CC
heading 07.13
1106.20 - Of sago or of roots or tubers of heading CC except from
07.14 Chapter 7.
1106.30 - Of the products of Chapter 8 CC except from
Chapter 8.
11.07 Malt, whether or not roasted. CC
11.08 Starches; inulin. CC
11.09 1109.00 Wheat gluten, whether or not dried. CC
Chapter 12 Oil seeds and oleaginous fruits; CC
miscellaneous grains, seeds and fruit;
industrial or medicinal plants; straw
and fodder
Chapter 13 Lac; gums, resins and other vegetable CC
saps and extracts
Chapter 14 Vegetable plaiting materials; CC
vegetable products not elsewhere
specified or included
Section III Animal or vegetable fats and oils and their cleavage products; prepared
edible fats; animal or vegetable waxes (Chapter 15)
Chapter 15 Animal or vegetable fats and oils and
their cleavage products; prepared
edible fats; animal or vegetable waxes
15.01 1501.00 Pig fat (including lard) and poultry CC
fat, other than that of heading 02.09
or 15.03.
15.02 1502.00 Fats of bovine animals, sheep or goats, CC
other than those of heading 15.03.
15.03 1503.00 Lard stearin, lard oil, oleostearin, CC
oleo-oil and tallow oil, not emulsified
or mixed or otherwise prepared.
15.04 Fats and oils and their fractions, of CC
fish or marine mammals, whether or not
refined, but not chemically modified.
15.05 1505.00 Wool grease and fatty substances CC
derived therefrom (including lanolin).
15.06 1506.00 Other animal fats and oils and their CC
698
fractions, whether or not refined, but
not chemically modified.
15.07 Soya-bean oil and its fractions,
whether or not refined, but not
chemically modified.
1507.10 - Crude oil, whether or not degummed CC
1507.90 - Other CTSH
15.08 Ground-nut oil and its fractions, CC
15.09 Olive oil and its fractions, whether or
not refined, but not chemically
modified.
1509.10 - Virgin CC
15.10 1510.00 Other oils and their fractions, CC
obtained solely from olives, whether or
modified, including blends of these
oils or fractions with oils or fractions
of heading 15.09.
15.11 Palm oil and its fractions, whether or
modified.
1511.10 - Crude oil CC
15.12 Sunflower-seed, safflower or CC
cotton-seed oil and fractions thereof,
15.13 Coconut (copra), palm kernel or babassu
oil and fractions thereof, whether or
modified.
- Coconut (copra) oil and its fractions:
1513.11 -- Crude oil CC
1513.19 -- Other CTSH
- Palm kernel or babassu oil and
fractions thereof:
1513.29 -- Other CTSH
15.14 Rape, colza or mustard oil and fractions CC
thereof, whether or not refined, but not
15.15 Other fixed vegetable fats and oils
(including jojoba oil) and their
fractions, whether or not refined, but
not chemically modified.
- Linseed oil and its fractions:
1515.19 -- Other CC
- Maize (corn) oil and its fractions:
699
1515.29 -- Other CC
1515.30 - Castor oil and its fractions CTSH
1515.50 - Sesame oil and its fractions CC
1515.90 - Other CTSH for Tung
oil and its
fractions.
CC for any
other goods.
15.16 Animal or vegetable fats and oils and CTH
their fractions, partly or wholly
hydrogenated, inter-esterified,
re-esterified or elaidinized, whether
or not refined, but not further
prepared.
15.17 Margarine; edible mixtures or CTH
preparations of animal or vegetable
fats or oils or of fractions of
different fats or oils of this Chapter,
other than edible fats or oils or their
fractions of heading 15.16.
15.18 1518.00 Animal or vegetable fats and oils and CTH
their fractions, boiled, oxidized,
dehydrated, sulphurized, blown,
polymerized by heat in vacuum or in
inert gas or otherwise chemically
modified, excluding those of heading
15.16; inedible mixtures or
preparations of animal or vegetable
fats or oils or of fractions of
different fats or oils of this Chapter,
not elsewhere specified or included.
15.20 1520.00 Glycerol, crude; glycerol waters and CTH
glycerol lyes.
15.21 Vegetable waxes (other than CTH
triglycerides), beeswax, other insect
waxes and spermaceti, whether or not
refined or colored.
15.22 1522.00 Degras; residues resulting from the CTH
treatment of fatty substances or animal
or vegetable waxes.
Section IV Prepared foodstuffs; beverages, spirits and vinegar; tobacco and
manufactured tobacco substitutes (Chapter 16-24)
Chapter 16 Preparations of meat, of fish or of
crustaceans, mollusks or other aquatic
invertebrates
16.01 1601.00 Sausages and similar products, of meat, CC except from
meat offal or blood; food preparations Chapter 1 or 2.
based on these products.
16.02 Other prepared or preserved meat, meat
offal or blood.
1602.10 - Homogenized preparations CC except from
700
Chapter 1 or 2.
1602.20 - Of liver of any animal CC except from
Chapter 1 or 2.
- Of poultry of heading 01.05:
1602.31 -- Of turkeys CC except from
Chapter 1 or 2.
1602.32 -- Of fowls of the species Gallus CC
domesticus
1602.39 -- Other CC
- Of swine:
1602.41 -- Hams and cuts thereof CC except from
Chapter 1 or 2.
1602.42 -- Shoulders and cuts thereof CC except from
Chapter 1 or 2.
1602.49 -- Other, including mixtures CC except from
Chapter 1 or 2.
1602.50 - Of bovine animals CC except from
Chapter 1 or 2.
1602.90 - Other, including preparations of CC
blood of any animal
16.03 1603.00 Extracts and juices of meat, fish or CC
crustaceans, mollusks or other aquatic
invertebrates.
16.04 Prepared or preserved fish; caviar and
caviar substitutes prepared from fish
eggs.
- Fish, whole or in pieces, but not
minced:
1604.11 -- Salmon CC except from
Chapter 3.
1604.12 -- Herrings CC except from
Chapter 3.
1604.13 -- Sardines, sardinella and brisling or CC except from
sprats Chapter 3.
1604.14 -- Tunas, skipjack and bonito (Sarda CC except from
spp.) Chapter 3.
1604.15 -- Mackerel CC except from
Chapter 3.
1604.16 -- Anchovies CC except from
Chapter 3.
1604.19 -- Other CC except from
Chapter 3.
1604.20 - Other prepared or preserved fish CC except from
Chapter 3.
1604.30 - Caviar and caviar substitutes CC
16.05 Crustaceans, mollusks and other
aquatic invertebrates, prepared or
preserved.
1605.10 - Crab CC except from
Chapter 3.
1605.20 - Shrimps and prawns CC
1605.30 - Lobster CC except from
701
Chapter 3.
1605.40 - Other crustaceans CC
1605.90 - Other CC except from
Chapter 3.
Chapter 17 Sugars and sugar confectionery
17.01 Cane or beet sugar and chemically pure CC except from
sucrose, in solid form. Chapter 12.
17.02 Other sugars, including chemically
pure lactose, maltose, glucose and
fructose, in solid form; sugar syrups
not containing added flavoring or
coloring matter; artificial honey,
whether or not mixed with natural
honey; caramel.
- Lactose and lactose syrup:
1702.11 -- Containing by weight 99 % or more CC except from
lactose, expressed as anhydrous Chapter 4.
lactose, calculated on the dry matter
Chapter 4.
1702.20 - Maple sugar and maple syrup CC
1702.30 - Glucose and glucose syrup, not CC
containing fructose or containing in
the dry state less than 20 % by weight
of fructose
1702.40 - Glucose and glucose syrup, containing CC
in the dry state at least 20 % but less
than 50 % by weight of fructose,
excluding invert sugar
1702.50 - Chemically pure fructose CC except from
Chapter 11 or
12.
1702.60 - Other fructose and fructose syrup, CC except from
containing in the dry state more than Chapter 11 or
50 % by weight of fructose, excluding 12.
invert sugar
1702.90 - Other, including invert sugar and CC
other sugar and sugar syrup blends
containing in the dry state 50 % by
weight of fructose
17.03 Molasses resulting from the extraction CC except from
or refining of sugar. Chapter 12.
17.04 Sugar confectionery (including white CC
chocolate), not containing cocoa.
Chapter 18 Cocoa and cocoa preparations CC
Chapter 19 Preparations of cereals, flour, starch
or milk; pastrycooks’ products
19.01 Malt extract; food preparations of CC
flour, groats, meal, starch or malt
extract, not containing cocoa or
containing less than 40 % by weight of
cocoa calculated on a totally defatted
702
basis, not elsewhere specified or
included; food preparations of goods of
headings 04.01 to 04.04, not containing
cocoa or containing less than 5 % by
weight of cocoa calculated on a totally
defatted basis, not elsewhere
specified of included.
19.02 Pasta, whether or not cooked or stuffed CC
(with meat or other substances) or
otherwise prepared, such as spaghetti,
macaroni, noodles, lasagna, gnocchi,
ravioli, cannelloni; couscous, whether
or not prepared.
19.03 1903.00 Tapioca and substitutes therefor CC except from
prepared from starch, in the form of Chapter 11.
flakes, grains, pearls, siftings or in
similar forms.
19.04 Prepared foods obtained by the swelling CC
or roasting of cereals or cereal
products (for example, corn flakes);
cereals (other than maize (corn)) in
grain form or in the form of flakes or
other worked grains (except flour,
groats and meal), pre-cooked or
otherwise prepared, not elsewhere
specified or included.
19.05 Bread, pastry, cakes, biscuits and
other bakers’ wares, whether or not
containing cocoa; communion wafers,
empty cachets of a kind suitable for
pharmaceutical use, sealing wafers,
rice paper and similar products.
1905.10 - Crispbread CC except from
Chapter 11.
1905.20 - Gingerbread and the like CC except from
Chapter 11.
- Sweet biscuits; waffles and wafers:
1905.31 -- Sweet biscuits CC
1905.32 -- Waffles and wafers CC
1905.40 - Rusks, toasted bread and similar CC except from
toasted products Chapter 11.
1905.90 - Other CC except from
Chapter 11.
Chapter 20 Preparations of vegetables, fruit,
nuts or other parts of plants
20.01 Vegetables, fruit, nuts and other CC except from
edible parts of plants, prepared or Chapter 7 or 8.
preserved by vinegar or acetic acid.
20.02 Tomatoes prepared or preserved CC except from
otherwise than by vinegar or acetic Chapter 7.
acid.
20.03 Mushrooms and truffles, prepared or CC except from
703
preserved otherwise than by vinegar or Chapter 7.
acetic acid.
20.04 Other vegetables prepared or preserved CC except from
acid, frozen, other than products of
heading 20.06.
20.05 Other vegetables prepared or preserved CC except from
acid, not frozen, other than products
of heading 20.06.
20.06 2006.00 Vegetables, fruit, nuts, fruit-peel CC except from
and other parts of plants, preserved by Chapter 7 or 8.
sugar (drained, glacé or
crystallized).
20.07 Jams, fruit jellies, marmalades, fruit
or nut purée and fruit or nut pastes,
obtained by cooking, whether or not
containing added sugar or other
sweetening matter.
2007.10 - Homogenized preparations CC except from
Chapter 8.
- Other:
2007.91 -- Citrus fruit CC except from
Chapter 8.
Chapter 7 or 8.
20.08 Fruit, nuts and other edible parts of
plants, otherwise prepared or
preserved, whether or not containing
added sugar or other sweetening matter
or spirit, not elsewhere specified or
included.
- Nuts, ground-nuts and other seeds,
whether or not mixed together:
2008.11 -- Ground-nuts CC except from
Chapter 12.
2008.19 -- Other, including mixtures CC except from
Chapter 8.
2008.20 - Pineapples CC except from
Chapter 8.
2008.30 - Citrus fruit CC except from
Chapter 8.
2008.40 - Pears CC except from
Chapter 8.
2008.50 - Apricots CC except from
Chapter 8.
2008.60 - Cherries CC except from
Chapter 8.
2008.70 - Peaches, including nectarines CC except from
Chapter 8.
2008.80 - Strawberries CC except from
Chapter 8.
704
- Other, including mixtures other than
those of subheading 2008.19:
2008.91 -- Palm hearts CC except from
Chapter 8.
2008.92 -- Mixtures CC except from
Chapter 8.
Chapter 7 or 8.
20.09 Fruit juices (including grape must) and
vegetable juices, unfermented and not
containing added spirit, whether or not
containing added sugar or other
sweetening matter.
- Orange juice:
2009.11 -- Frozen CC
2009.12 -- Not frozen, of a Brix value not CC
exceeding 20
2009.19 -- Other CC
- Grapefruit (including pomelo) juice:
2009.21 -- Of a Brix value not exceeding 20 CC
2009.29 -- Other CC
- Juice of any other single citrus
fruit:
2009.39 -- Other CC
- Pineapple juice:
2009.41 -- Of a Brix value not exceeding 20 CC except from
Chapter 8.
Chapter 8.
2009.50 - Tomato juice CC except from
Chapter 7.
- Grape juice (including grape must):
2009.69 -- Other CC
- Apple juice:
2009.79 -- Other CC
2009.80 - Juice of any other single fruit or CC
vegetable
2009.90 - Mixture of Juices CC except from
Chapter 7 or 8.
Chapter 21 Miscellaneous edible preparations
21.01 Extracts, essences and concentrates,
of coffee, tea or maté and preparations
with a basis of these products or with
a basis of coffee, tea or maté; roasted
chicory and other roasted coffee
substitutes, and extracts, essences
and concentrates thereof.
- Extracts, essences and concentrates
of coffee, and preparations with a
705
basis of these extracts, essences or
concentrates or with a basis of
coffee:
2101.11 -- Extracts, essences and concentrates CC
2101.12 -- Preparations with a basis of CC
extracts, essences or concentrates or
with a basis of coffee
2101.20 - Extracts, essences and concentrates, CC
of tea or maté, and preparations with
a basis of these extracts, essences or
concentrates or with a basis of tea or
maté
2101.30 - Roasted chicory and other roasted CC except from
coffee substitutes, and extracts, Chapter 10 or
essences and concentrates thereof 19.
21.02 Yeasts (active or inactive); other CC
single-cell micro-organisms, dead (but
not including vaccines of heading
30.02); prepared baking powders.
21.03 Sauces and preparations therefor;
mixed condiments and mixed seasonings;
mustard flour and meal and prepared
mustard.
2103.10 - Soya sauce CC
2103.20 - Tomato ketchup and other tomato CC except from
sauces Chapter 7 or
20.
2103.30 - Mustard flour and meal and prepared CC
mustard
2103.90 - Other CC
21.04 Soups and broths and preparations CC
therefor; homogenized composite food
preparations.
21.05 2105.00 Ice cream and other edible ice, whether CC
or not containing cocoa.
21.06 Food preparations not elsewhere
2106.10 - Protein concentrates and textured CC
protein substances
2106.90 - Other LVC 40%
Chapter 22 Beverages, spirits and vinegar
22.01 Waters, including natural or CC
artificial mineral waters and aerated
waters, not containing added sugar or
other sweetening matter nor flavored;
ice and snow.
22.02 Waters, including mineral waters and
aerated waters, containing added sugar
or other sweetening matter or flavored,
and other non-alcoholic beverages, not
including fruit or vegetable juices of
heading 20.09.
706
2202.10 - Waters, including mineral waters and CC
aerated waters, containing added
sugar or other sweetening matter or
flavored
2202.90 - Other LVC 40%
22.03 2203.00 Beer made from malt. CTH
22.04 Wine of fresh grapes, including CC
fortified wines; grape must other than
that of heading 20.09.
22.05 Vermouth and other wine of fresh grapes CC
flavored with plants or aromatic
substances.
22.06 2206.00 Other fermented beverages (for CC
example, cider, perry, mead); mixtures
of fermented beverages and mixtures of
fermented beverages and non-alcoholic
beverages, not elsewhere specified or
included.
22.07 Undenatured ethyl alcohol of an CC
alcoholic strength by volume of 80% vol
or higher; ethyl alcohol and other
spirits, denatured, of any strength.
22.08 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 LVC 40% or CC
wine or grape marc
2208.30 - Whiskies LVC 40% or CC
2208.40 - Rum and other spirits obtained by LVC 40% or CC

distilling fermented sugarcane
products
2208.50 - Gin and Geneva LVC 40% or CC
2208.60 - Vodka LVC 40% or CC
2208.70 - Liqueurs and cordials LVC 40%or CC

2208.90 - Other LVC 40% and CTH
for sake
compound or
cooking sake
(Mirin).
CC except from
Chapter 8 or 20
for beverage
with a basis of
fruits, of an
alcoholic
strength by
volume of less
than 1 %.
CTH except
from heading
22.07 for any
707
other good.
22.09 2209.00 Vinegar and substitutes for vinegar CC
obtained from acetic acid.
Chapter 23 Residues and waste from the food
industries; prepared animal fodder
23.01 Flours, meals and pellets, of meat or CTH
meat offal, of fish or of crustaceans,
mollusks or other aquatic
invertebrates, unfit for human
consumption; greaves.
23.02 Bran, sharps and other residues, CTH
whether or not in the form of pellets,
derived from the sifting, milling or
other working of cereals or of
leguminous plants.
23.03 Residues of starch manufacture and CTH
similar residues, beet-pulp, bagasse
and other waste of sugar manufacture,
brewing or distilling dregs and waste,
whether or not in the form of pellets.
23.04 2304.00 Oil-cake and other solid residues, CTH
whether or not ground or in the form of
pellets, resulting from the extraction
of soya-bean oil.
23.05 2305.00 Oil-cake and other solid residues, CTH
of ground-nut oil.
23.06 Oil-cake and other solid residues, CTH
of vegetable fats or oils, other than
those of heading 23.04 or 23.05.
23.07 2307.00 Wine lees; argol. CTH
23.08 2308.00 Vegetable materials and vegetable CTH
waste, vegetable residues and
by-products, whether or not in the form
of pellets, of a kind used in animal
feeding, not elsewhere specified or
included.
23.09 Preparations of a kind used in animal LVC 40%
feeding.
Chapter 24 Tobacco and manufactured tobacco
substitutes
24.01 Unmanufactured tobacco; tobacco
refuse.
2401.10 - Tobacco, not stemmed/stripped CC
2401.20 - Tobacco, partly or wholly CC
stemmed/stripped
2401.30 - Tobacco refuse CTSH
24.02 Cigars, cheroots, cigarillos and CTH
cigarettes, of tobacco or of tobacco
substitutes.
24.03 Other manufactured tobacco and CTH
manufactured tobacco substitutes;
“homogenized” or “reconstituted”
tobacco; tobacco extracts and
essences.
Section V Mineral products (Chapter 25-27)
Chapter 25 Salt; sulphur; earths and stone;
708
plastering materials, lime and cement
25.01 2501.00 Salt (including table salt and denatured CC
salt) and pure sodium chloride, whether
or not in aqueous solution or containing
added anti-caking or free-flowing
agents; sea water.
25.02 2502.00 Unroasted iron pyrites. CC
25.03 2503.00 Sulphur of all kinds, other than CC
sublimed sulphur, precipitated sulphur
and colloidal sulphur.
25.04 Natural graphite. CC
25.05 Natural sands of all kinds, whether or CC
not colored, other than metalbearing
sands of Chapter 26.
25.06 Quartz (other than natural sands); CC
quartzite, whether or not roughly
trimmed or merely cut, by sawing or
otherwise, into blocks or slabs of a
rectangular (including square) shape.
25.07 2507.00 Kaolin and other kaolinic clays, whether CC
or not calcined.
25.08 Other clays (not including expanded CC
clays of heading 68.06), andalusite,
kyanite and sillimanite, whether or not
calcined; mullite; chamotte or dinas
earths.
25.09 2509.00 Chalk. CC
25.17 Pebbles, gravel, broken or crushed
stone, of a kind commonly used for
concrete aggregates, for road metalling
or for railway or other ballast, shingle
and flint, whether or not heat-treated;
macadam of slag, dross or similar
industrial waste, whether or not
incorporating the materials cited in the
first part of the heading; tarred
macadam; granules, chippings and
powder, of stones of heading 25.15 or
25.16, whether or not heat-treated.
2517.20 - Macadam of slag, dross or similar CC
industrial waste, whether or not
incorporating the materials cited in
subheading 2517.10
2517.30 - Tarred macadam CC
- Granules, chippings and powder, of
stones of heading 25.15 or 25.16,
whether or not heat-treatment:
2517.41 -- Of marble CC
2517.49 -- Other CC
25.18 Dolomite, whether or not calcined or CC
sintered, including dolomite roughly
rectangular (including square) shape;
dolomite ramming mix.
25.19 Natural magnesium carbonate CC
(magnesite); fused magnesia;
dead-burned (sintered) magnesia,
whether or not containing small
quantities of other oxides added before
sintering; other magnesium oxide,
whether or not pure.
709
25.20 Gypsum; anhydrite; plasters (consisting
of calcined gypsum or calcium sulphate)
whether or not colored, with or without
small quantities of accelerators or
retarders.
2520.10 - Gypsum; anhydrite CC
2520.20 - Plasters CTSH
25.21 2521.00 Limestone flux; limestone and other CC
calcareous stone, of a kind used for the
manufacture of lime or cement.
25.24 Asbestos. CC
25.25 Mica, including splittings; mica waste.
2525.10 - Crude mica and mica rifted into sheets CC
or splittings
2525.20 - Mica powder CC
2525.30 - Mica waste WO
25.26 Natural steatite, whether or not roughly CC
rectangular (including square) shape;
talc.
25.28 Natural borates and concentrates CC
thereof (whether or not calcined), but
not including borates separated from
natural brine; natural boric acid
containing not more than 85 % of H3BO3
calculated on the dry weight.
25.29 Feldspar; leucite; nepheline and CC
nepheline syenite; fluorspar.
25.30 Mineral substances not elsewhere CC
Chapter 26 Ores, slag and ash
26.01 Iron ores and concentrates, including CC
roasted iron pyrites.
26.02 2602.00 Manganese ores and concentrates, CC
including ferruginous manganese ores
and concentrates with a manganese
content of 20 % or more, calculated on
the dry weight.
26.03 2603.00 Copper ores and concentrates. CC
26.04 2604.00 Nickel ores and concentrates. CC
26.05 2605.00 Cobalt ores and concentrates. CC
26.06 2606.00 Aluminum ores and concentrates. CC
26.07 2607.00 Lead ores and concentrates. CC
26.08 2608.00 Zinc ores and concentrates. CC
26.09 2609.00 Tin ores and concentrates. CC
26.10 2610.00 Chromium ores and concentrates. CC
26.11 2611.00 Tungsten ores and concentrates. CC
26.12 Uranium or thorium ores and CC
concentrates.
26.13 Molybdenum ores and concentrates. CC
26.14 2614.00 Titanium ores and concentrates. CC
26.15 Niobium, tantalum, vanadium or CC
zirconium ores and concentrates.
26.16 Precious metal ores and concentrates. CC
26.17 Other ores and concentrates. CC
26.18 2618.00 Granulated slag (slag sand) from the WO
manufacture of iron or steel.
710
26.19 2619.00 Slag, dross (other than granulated WO
slag), scalings and other waste form the
manufacture of iron or steel.
26.20 Slag, ash and residues (other than from WO
the manufacture of iron or steel)
containing metals, arsenic or their
compounds.
26.21 Other slag and ash, including seaweed WO
ash (kelp); ash and residues from the
incineration of municipal waste.
Chapter 27 Mineral fuels, mineral oils and products
of their distillation; bituminous
substances; mineral waxes
27.01 Coal; briquettes, ovoids and similar CC
solid fuels manufactured from coal.
27.02 Lignite, whether or not agglomerated, CC
excluding jet.
27.03 2703.00 Peat (including peat litter), whether or CC
not agglomerated.
27.04 2704.00 Coke and semi-coke of coal, of lignite CC
or of peat, whether or not agglomerated;
retort carbon.
27.05 2705.00 Coal gas, water gas, producer gas and CC
similar gases, other than petroleum
gases and other gaseous hydrocarbons.
27.06 2706.00 Tar distilled from coal, from lignite or CC
from peat, and other mineral tars,
whether or not dehydrated or partially
distilled, including reconstituted
tars.
27.09 2709.00 Petroleum oils and oils obtained from CC
bituminous minerals, crude.
27.10 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; waste oils.
- Waste oils:
2710.91 -- Containing polychlorinated biphenyls WO
(PCBs), polychlorinated terphenyls
(PCTs) or polybrominated biphenyls
(PBBs)
2710.99 -- Other WO
27.11 Petroleum gases and other gaseous
hydrocarbons.
- Liquefied:
2711.11 -- Natural gas CC
- In gaseous state:
2711.21 -- Natural gas CC
Section VI Products of the chemical or allied industries (Chapter 28-38)
Chapter 28 Inorganic chemicals; organic or
inorganic compounds of precious
metals, of rare-earth metals, or
radioactive elements or of isotopes
28.04 Hydrogen, rare gases and other
non-metals.
- Silicon:
2804.61 -- Containing by weight not less than LVC 40% or CTSH
711
99.99 % of silicon
2804.69 -- Other LVC 40% or CTSH
28.44 Radioactive chemical elements and
radioactive isotopes (including the
fissile or fertile chemical elements
and isotopes) and their compounds;
mixture and residues containing these
products.
2844.10 - Natural uranium and its compounds; CC
alloys, dispersions (including
cermets), ceramic products and
mixtures containing natural uranium or
natural uranium compounds
2844.20 - Uranium enriched in U 235 and its CTSH
compounds; plutonium and its
compounds; alloys, dispersions
(including cermets), ceramic products
and mixtures containing uranium
enriched in U 235, plutonium or
compounds of these products
2844.30 - Uranium depleted in U 235 and its CTSH
compounds; thorium and its compounds;
alloys, dispersions (including
cermets), ceramic products and
mixtures containing uranium depleted
in U 235, thorium or compounds of these
products
2844.40 - Radioactive elements and isotopes and CTSH
compounds other than those of
subheading 2844.10, 2844.20 or
2844.30; alloys, dispersions
(including cermets), ceramic products
and mixtures containing these
elements, isotopes or compounds;
radioactive residues
2844.50 - Spent (irradiated) fuel elements CTSH
(cartridges) of nuclear reactors
Chapter 29 Organic chemicals
29.01 Acyclic hydrocarbons. LVC 40% or CTSH
29.02 Cyclic hydrocarbons. LVC 40% or CTSH
29.03 Halogenated derivatives of LVC 40% or CTSH
hydrocarbons.
29.04 Sulphonated, nitrated or nitrosated LVC 40% or CTSH
derivatives of hydrocarbons, whether
or not halogenated.
29.05 Acyclic alcohols and their
halogenated, sulphonated, nitrated or
nitrosated derivatives.
- Saturated monohydric alcohols:
2905.11 -- Methanol (methyl alcohol) LVC 40% or CTSH
2905.12 -- Propan-1-ol (propyl alcohol) and LVC 40% or CTSH
propan-2-ol (isopropyl alcohol)
2905.13 -- Butan-1-ol (n-butyl alcohol) LVC 40% or CTSH
2905.14 -- Other butanols LVC 40% or CTSH
2905.16 -- Octanol (octyl alcohol) and isomers LVC 40% or CTSH
thereof
2905.17 -- Dodecan-1-ol (lauryl alcohol), LVC 40% or CTSH
hexadecane-1-ol (cetyl alcohol) and
712
octadecan-1-ol (stearyl alcohol)
- Unsaturated monohydric alcohols:
2905.22 -- Acyclic terpene alcohols LVC 40% or CTSH
- Diols:
2905.31 -- Ethylene glycol (ethanediol) LVC 40% or CTSH
2905.32 -- Propylene glycol (propane-1,2-diol) LVC 40% or CTSH
- Other polyhydric alcohols:
2905.41 -- 2-Ethyl-2-(hydroxymethyl) LVC 40% or CTSH
propane-1,3-diol
(trimethylolpropane)
2905.42 -- Pentaerythritol LVC 40% or CTSH
2905.44 -- D-glucitol (sorbitol) CTH except
heading 17.02.
Note: Other than
2-Ethyl-2-(hydroxymethyl)
propane-1,3-diol
(trimethylolpropane),
pentaerythritol, mannitol,
d-glucitol (sorbitol), and
glycerol.
- Halogenated, sulphonated, nitrated
or nitrosated derivatives of acyclic
alcohols:
2905.51 -- Ethchlorvynol (INN) LVC 40% or CTSH
29.06 Cyclic alcohols and their halogenated,
sulphonated, nitrated or nitrosated
derivatives.
- Cyclanic, cyclenic or cycloterpenic:
2906.11 -- Menthol CC except from
Chapter 33.
2906.12 -- Cyclohexanol, methylcyclohexanols LVC 40% or CTSH
and dimethylcyclohexanols
2906.13 -- Sterols and inositols LVC 40% or CTSH
- Aromatic:
2906.21 -- Benzyl alcohol LVC 40% or CTSH
29.07 Phenols; phenols-alcohols. LVC 40% or CTSH
29.09 Ethers, ether-alcohols, LVC 40% or CTSH
ether-phenols,
ether-alcohol-phenols, alcohol
peroxides, ether peroxides, ketone
peroxides (whether or not chemically
defined), and their halogenated,
derivatives.
29.10 Epoxides, epoxyalcohols, epoxyphenols LVC 40% or CTSH
713
and epoxyethers, with a three-membered
ring, and their halogenated,
derivatives.
29.12 Aldehydes, whether or not with other LVC 40% or CTSH
oxygen function; cyclic polymers of
aldehydes; paraformaldehyde.
29.14 Ketones and quinones, whether or not
with other oxygen function, and their
- Acyclic ketones without other oxygen
function:
2914.11 -- Acetone LVC 40% or CTSH
2914.12 -- Butanone (methyl ethyl ketone) LVC 40% or CTSH
2914.13 -- 4-Methylpentan-2-one (methyl LVC 40% or CTSH
isobutyl ketone)
- Cyclanic, cyclenic or cycloterpenic
ketones without other oxygen function:
2914.22 -- Cyclohexanone and LVC 40% or CTSH
methylcyclohexanones
2914.23 -- Ionones and methylionones LVC 40% or CTSH
Note: Other than camphor;
cyclohexanone and
methylcyclohexanones; and
ionones and methylionones.
- Aromatic ketones without other oxygen
function:
2914.31 -- Phenylacetone (phenylpropan-2-one) LVC 40% or CTSH
2914.40 - Ketone-alcohols and ketone-aldehydes LVC 40% or CTSH
2914.50 - Ketone-phenols and ketones with other LVC 40% or CTSH
oxygen function
- Quinones:
2914.61 -- Anthraquinone LVC 40% or CTSH
2914.70 - Halogenated, sulphonated, nitrated LVC 40% or CTSH
or nitrosated derivatives
29.15 Saturated acyclic monocarboxylic acids LVC 40% or CTSH
and their anhydrides, halides,
peroxides and peroxyacids; their
29.16 Unsaturated acyclic monocarboxylic LVC 40% or CTSH
acids, cyclic monocarboxylic acids,
their anhydrides, halides, peroxides
and peroxyacids; their halogenated,
derivatives.
29.17 Polycarboxylic acids, their LVC 40% or CTSH
714
anhydrides, halides, peroxides and
peroxyacids; their halogenated,
derivatives.
29.18 Carboxylic acids with additional
oxygen function and their anhydrides,
halides, peroxides and peroxyacids;
their halogenated, sulphonated,
nitrated or nitrosated derivatives.
- Carboxylic acids with alcohol
function but without other oxygen
function, their anhydrides, halides,
peroxides, peroxyacids and their
derivatives:
2918.11 -- Lactic acid, its salts and esters LVC 40% or CTSH
2918.12 -- Tartaric acid LVC 40% or CTSH
2918.13 -- Salts and esters of tartaric acid LVC 40% or CTSH
2918.14 -- Citric acid CTH except
from Chapter
17 or 23.
2918.15 -- Salts and esters of citric acid CTH except
from Chapter
17 or 23.
2918.16 -- Gluconic acid, its salts and esters LVC 40% or CTSH
2918.18 -- Chlorobenzilate (ISO) LVC 40% or CTSH
- Carboxylic acids with phenol function
but without other oxygen function,
their anhydrides, halides, peroxides,
peroxyacids and their derivatives:
2918.21 -- Salicylic acid and its salts LVC 40% or CTSH
2918.22 -- O-Acetylsalicylic acid, its salts LVC 40% or CTSH
and esters
2918.23 -- Other esters of salicylic acid and LVC 40% or CTSH
their salts
2918.30 - Carboxylic acids with aldehyde or LVC 40% or CTSH
ketone function but without other
oxygen function, their anhydrides,
halides, peroxides, peroxyacids and
their derivatives
- Other:
2918.91 -- 2,4,5-T (ISO) LVC 40% or CTSH
(2,4,5-trichlorophenoxyacetic acid),
its salts and esters
29.20 Esters of other inorganic acids of LVC 40% or CTSH
non-metals (excluding esters of
hydrogen halides) and their salts;
their halogenated, sulphonated,
nitrated or nitrosated derivatives.
29.21 Amine-function compounds. LVC 40% or CTSH
715
29.22 Oxygen-function amino-compounds.
- Amino-alcohols, other than those
containing more than one kind of oxygen
function, their ethers and esters;
salts thereof:
2922.11 -- Monoethanolamine and its salts LVC 40% or CTSH
2922.12 -- Diethanolamine and its salts LVC 40% or CTSH
2922.13 -- Triethanolamine and its salts LVC 40% or CTSH
2922.14 -- Dextropropoxyphene (INN) and its LVC 40% or CTSH
salts
- Amino-naphthols and other
amino-phenols, other than those
function; salts thereof:
2922.21 -- Aminohydroxynaphthalenesulphonic LVC 40% or CTSH
acids and their salts
- Amino-aldehydes, amino-ketones and
amino-quinones, other than those
function; salts thereof:
2922.31 -- Amfepramone (INN), methadone (INN) LVC 40% or CTSH
and normethadone (INN); salts thereof
- Amino-acids, other than those
function, and their esters; salts
thereof:
2922.41 -- Lysine and its esters; salts thereof LVC 40% or CTSH
2922.43 -- Anthranilic acid and its salts LVC 40% or CTSH
2922.44 -- Tilidine (INN) and its salts LVC 40% or CTSH
Note: Other than lysine, its esters,
glutamic acid, anthranilic acid,
tilidine (INN) and salts
thereof.
2922.50 - Amino-alcohol-phenols, LVC 40% or CTSH
amino-acid-phenols and other
amino-compounds with oxygen function
29.23 Quaternary ammonium salts and
hydroxides; lecithins and other
phosphoaminolipids, whether or not
chemically defined.
2923.10 - Choline and its salts LVC 40% or CTSH
2923.90 - Other LVC 40% or CTSH
Note: Other than choline and its salts;
and lecithins and other
phosphoaminolipids.
29.24 Carboxyamide-function compounds;
amide-function compounds of carbonic
acid.
716
- Acyclic amides (including acyclic
cabamates) and their derivatives;
salts thereof:
2924.11 -- Meprobamate (INN) LVC 40% or CTSH
2924.12 -- Fluroacetamide (ISO), monocrotophos LVC 40% or CTSH
(ISO) and phosphamidon (ISO)
2924.19 --Other LVC 40% or CTSH
- Cyclic amides (including cyclic
carbamates) and their derivatives;
salts thereof:
2924.21 -- Ureines and their derivatives; salts LVC 40% or CTSH
thereof
2924.23 -- 2-Acetamidobenzoic acid LVC 40% or CTSH
(N-acetylanthranilic acid) and its
salts
2924.24 -- Ethinamate (INN) LVC 40% or CTSH
29.25 Caboxyimide-function compounds LVC 40% or CTSH
(including saccharin and its salts) and
imine-function compounds.
29.26 Nitrile-function compounds. LVC 40% or CTSH
29.29 Compounds with other nitrogen LVC 40% or CTSH
function.
29.30 Organo-sulphur compounds. LVC 40% or CTSH
29.32 Heterocyclic compounds with oxygen LVC 40% or CTSH
hetero-atom(s) only.
29.33 Heterocyclic compounds with nitrogen LVC 40% or CTSH
hetero-atom(s) only.
29.34 Nucleic acids and their salts, whether LVC 40% or CTSH
or not chemically defined; other
heterocyclic compounds.
29.36 Provitamins and vitamins, natural or LVC 40% or CTSH
reproduced by synthesis (including
natural concentrates), derivatives
thereof used primarily as vitamins, and
intermixtures of the foregoing,
whether or not in any solvent.
29.40 2940.00 Sugars, chemically pure, other than CTH except
sucrose, lactose, maltose, glucose and from heading
fructose; sugar ethers, sugar acetals 17.02.
and sugar esters, and their salts,
other than products of heading 29.37,
29.38 or 29.39.
Chapter 30 Pharmaceutical products
30.06 Pharmaceutical goods specified in Note
4 to this Chapter.
- Other
Note: Other than sterile surgical
catgut, similar sterile suture
materials (including sterile
absorbable surgical or dental
yarns) and sterile tissue
adhesives for surgical wound
717
closure; sterile laminaria and
sterile laminaria tents;
sterile absorbable surgical or
dental haemostatics; sterile
surgical or dental adhesion
barriers, whether or not
absorbable; blood-grouping
reagents; opacifying
preparations for X-ray
examinations; diagnostic
reagents designed to be
administered to the patient;
dental cements and other dental
fillings; bone reconstruction
cements, first-aid boxes and
kits; chemical contraceptive
preparations based on hormones,
on other products of heading
29.37 or on spermicides； and gel
preparations designed to be
used in human or veterinary
medicine as a lubricant for
parts of the body for surgical
operations or physical
examinations or as a coupling
agent between the body and
medical instruments.
3006.91 -- Appliances identifiable for ostomy LVC 40% or CTSH
use
3006.92 -- Waste pharmaceuticals WO
Chapter 31 Fertilizers
31.02 Mineral or chemical fertilizers, LVC 40% or CTSH
nitrogenous.
31.03 Mineral or chemical fertilizers,
phosphatic.
3103.10 - Superphosphates LVC 40% or CTSH
31.04 Mineral or chemical fertilizers, LVC 40% or CTSH
potassic.
31.05 Mineral or chemical fertilizers
containing two or three of the
fertilizing elements nitrogen,
phosphorus and potassium; other
fertilizers; goods of this Chapter in
tablets or similar forms or in packages
of a gross weight not exceeding 10 kg.
3105.10 - Goods of this Chapter in tablets or CC
similar forms or in packages of a gross
weight not exceeding 10 kg
3105.20 - Mineral or chemical fertilizers LVC 40% or CTSH
containing the three fertilizing
elements nitrogen, phosphorus and
potassium
718
3105.30 - Diammonium hydrogenorthophosphate LVC 40% or CTSH
(diammonium phosphate)
3105.40 - Ammonium dihydrogenorthophosphate LVC 40% or CTSH
(monoammonium phosphate) and mixtures
thereof with diammonium
hydrogenorthophosphate (diammonium
phosphate)
- Other mineral or chemical fertilizers
containing the two fertilizing
elements nitrogen and phosphorus:
3105.51 -- Containing nitrates and phosphates LVC 40% or CTSH

3105.60 - Mineral or chemical fertilizers LVC 40% or CTSH
containing the two fertilizing
elements phosphorus and potassium
Chapter 35 Albuminoidal substances; modified
starches; glues; enzymes
35.02 Albumins (including concentrates of
two or more whey proteins, containing
by weight more than 80% whey proteins,
calculated on the dry matter),
albuminates and other albumin
derivatives.
- Egg albumin:
3502.11 -- Dried CC except from
Chapter 4.
Chapter 4.
3502.20 - Milk albumin, including concentrates CTH
of two or more whey proteins
3502.90 - Other CTH
35.03 3503.00 Gelatin (including gelatin in CTH
rectangular (including square) sheets,
whether or not surface-worked or
colored) and gelatin derivatives;
isinglass; other glues of animal
origin, excluding casein glues of
heading 35.01.
35.05 Dextrins and other modified starches CTH
(for example, pregelatinized or
esterified starches); glues based on
starches, or on dextrins or other
modified starches.
Chapter 38 Miscellaneous chemical products
38.01 Artificial graphite; colloidal or LVC 40% or CTSH
semi-colloidal graphite; preparations
based on graphite or other carbon in the
form of pastes, blocks, plates or other
semi-manufactures.
38.06 Rosin and resin acids, and derivatives
719
thereof; rosin spirit and rosin oils;
run gums.
3806.10 - Rosin and resin acids LVC 40% or CTSH
3806.20 - Salts of rosin, of resin acids or of LVC 40% or CTSH
derivatives of rosin or resin acids
other than salts of rosin adducts
Note: Other than rosin and resin acids;
salts of rosin, of resin acids or
of derivatives of rosin or resin
acids other than salts of rosin
adducts; and ester gums.
38.09 Finishing agents, dye carriers to
accelerate the dyeing or fixing of
dyestuffs and other products and
preparations (for example, dressings
and mordants), of a kind used in the
textile, paper, leather or like
industries, not elsewhere specified or
included.
3809.10 - With a basis of amylaceous substances CTH except
from heading
11.08 or
35.05.
38.24 Prepared binders for foundry molds or
cores; chemical products and
preparations of the chemical or allied
industries (including those consisting
of mixtures of natural products), not
elsewhere specified or included.
3824.60 - Sorbitol other than that of CTH except
subheading 2905.44 from heading
17.02.
38.25 Residual products of the chemical or WO
allied industries, not elsewhere
specified or included; municipal
waste; sewage sludge; other wastes
specified in Note 6 to this Chapter.
Section VII Plastics and articles thereof; rubber and articles thereof (Chapter 39-40)
Chapter 39 Plastics and articles thereof
39.15 Waste, paring and scrap, of plastics. WO
39.23 Articles for the conveyance or packing LVC 40% or CTSH
of goods, of plastics; stoppers, lids,
caps and other closures, of plastics.
39.24 Tableware, kitchenware, other LVC 40% or CTSH
household articles and hygienic or
toilet articles, of plastics.
39.26 Other articles of plastics and articles LVC 40% or CTSH
of other materials of headings 39.01 to
39.14.
Chapter 40 Rubber and articles thereof
40.01 Natural rubber, balata, gutta-percha,
720
guayule, chicle and similar natural
gums, in primary forms or in plates,
sheets or strip.
4001.10 - Natural rubber latex, whether or not CC
pre-vulcanized
40.04 4004.00 Waste, parings and scrap of rubber WO
(other than hard rubber) and powders
and granules obtained therefrom.
40.12 Retreaded or used pneumatic tires of LVC 40% or CTSH
rubber; solid or cushion tires, tire
treads and tire flaps, of rubber.
Section VIII Raw hides and skins, leather, furskins and articles thereof; saddlery
and harness; travel goods, handbags and similar containers; articles of animal gut
(other than silk-worm gut) (Chapter 41-43)
Chapter 41 Raw hides and skins(other than furskins) CC
and leather
Chapter 42 Articles of leather; saddlery and CC
harness; travel goods, handbags and
similar containers; articles of animal
gut (other than silk-worm gut)
Chapter 43 Furskins and artificial fur; CC
manufactures thereof
Section IX Wood and articles of wood; wood charcoal; cork and articles of cork;
manufactures of straw, of esparto or of other plaiting materials; basketware and
wickerwork (Chapter 44-46)
Chapter 44 Wood and articles of wood; wood
charcoal
44.01 Fuel wood, in logs, in billets, in CTH
twigs, in faggots or in similar forms;
wood in chips or particles; sawdust and
wood waste and scrap, whether or not
agglomerated in logs, briquettes,
pellets or similar forms.
44.02 Wood charcoal (including shell or nut CTH
charcoal), whether or not
agglomerated.
44.03 Wood in the rough, whether or not CTH
stripped of bark or sapwood, or roughly
squared.
44.04 Hoopwood; split poles; piles, pickets CTH
and stakes of wood, pointed but not sawn
lengthwise; wooden sticks, roughly
trimmed but not turned, bent or
otherwise worked, suitable for the
manufacture of walking-sticks,
umbrellas, tool handles or the like;
chipwood and the like.
44.05 4405.00 Wood wool; wood flour. CTH
44.06 Railway or tramway sleepers CTH
(cross-ties) of wood.
44.07 Wood sawn or chipped lengthwise, sliced CTH
or peeled, whether or not planed,
sanded or end-jointed, of a thickness
exceeding 6 mm.
721
44.08 Sheets for veneering (including those CTH
obtained by slicing laminated wood),
for plywood or for similar laminated
wood and other wood, sawn lengthwise,
sliced or peeled, whether or not
planed, sanded, spliced or
end-jointed, of a thickness not
exceeding 6 mm.
44.09 Wood (including strips and friezes for CTH
parquet flooring, not assembled)
continuously shaped (tongued, grooved,
rebated, chamfered, V-jointed, beaded,
molded, rounded or the like) along any
of its edges, ends or faces, whether or
not planed, sanded or end-jointed.
44.10 Particle board, oriented strand board CTH
(OSB) and similar board (for example,
waferboard) of wood or other ligneous
materials, whether or not agglomerated
with resins or other organic binding
substances.
44.11 Fiberboard of wood or other ligneous CTH
materials, whether or not bonded with
resins or other organic substances.
44.12 Plywood, veneered panels and similar CTH except
laminated wood. from heading
44.07 or
44.08.
44.13 4413.00 Densified wood, in blocks, plates, CTH
strips or profile shapes.
44.14 4414.00 Wooden frames for paintings, CTH
photographs, mirrors or similar
objects.
44.15 Packing cases, boxes, crates, drums and CTH
similar packings, of wood; cable-drums
of wood; pallets, box pallets and other
load boards, of wood; pallet collars of
wood.
44.16 4416.00 Casks, barrels, vats, tubs and other CTH
coopers' products and parts thereof, of
wood, including staves.
44.17 4417.00 Tools, tool bodies, tool handles, broom CTH
or brush bodies and handles, of wood;
boot or shoe lasts and trees, of wood.
44.18 Builders’ joinery and carpentry of CTH
wood, including cellular wood panels,
assembled flooring panels, shingles
and shakes.
44.19 4419.00 Tableware and kitchenware, of wood. CTH
44.20 Wood marquetry and inlaid wood; caskets CTH
and cases for jewelry or cutlery, and
similar articles, of wood; statuettes
and other ornaments, of wood; wooden
722
articles of furniture not falling in
Chapter 94.
44.21 Other articles of wood. CTH
Chapter 46 Manufactures of straw, of esparto or of
other plaiting materials; basketware
and wickerwork
46.01 Plaits and similar products of plaiting
materials, whether or not assembled
into strips; plaiting materials,
plaits and similar products of plaiting
materials, bound together in parallel
strands or woven, in sheet form,
whether or not being finished articles
(for example, mats, matting, screens).
- Mats, matting and screens of
vegetable materials:
4601.21 -- Of bamboo CC except from
Chapter 14.
4601.22 -- Of rattan CC except from
Chapter 14.
Chapter 14.
- Other:
4601.92 -- Of bamboo CC except from
Chapter 14.
4601.93 -- Of rattan CC except from
Chapter 14.
4601.94 -- Of other vegetable materials CC except from
Chapter 14.
Section X Pulp of wood or of other fibrous cellulosic material; recovered (waste
and scrap) paper or paperboard; paper and paperboard and articles thereof (Chapter
47-49)
Chapter 47 Pulp of wood or of other fibrous
cellulosic material; recovered (waste
and scrap) paper or paperboard
47.07 Recovered (waste and scrap) paper or WO
paperboard.
Section XI Textiles and textile articles (Chapter 50-63) Note: See the note to this
section
Chapter 50 Silk
50.01 5001.00 Silk-worm cocoons suitable for CC
reeling.
50.02 5002.00 Raw silk (not thrown). CTH
50.03 5003.00 Silk waste (including cocoons CTH
unsuitable for reeling, yarn waste and
garneted stock).
50.04 5004.00 Silk yarn (other than yarn spun from CTH
silk waste) not put up for retail sale.
50.05 5005.00 Yarn spun from silk waste, not put up CTH except
for retail sale. from heading
50.06.
50.06 5006.00 Silk yarn and yarn spun from silk waste, CTH except
723
put up for retail sale; silk-worm gut. from heading
50.05.
50.07 Woven fabrics of silk or of silk waste. CTH, provided
that, where
non-originati
ng materials
of heading
50.04 through
50.06 are
used, each of
the non-
originating
materials is
spun, or dyed
or printed
entirely in
either Party
or a non-Party
which is a
Member State
of the ASEAN;
or
No required
CTC, provided
that the good
is dyed or
printed
entirely and
that the non-
originating
material of
heading 50.07
is woven
entirely in
either Party
or a non-Party
which is a
Member State
of the ASEAN.
Chapter 51 Wool, fine or coarse animal hair;
horsehair yarn and woven fabric
51.01 Wool, not carded or combed. CC
51.02 Fine or coarse animal hair, not carded CC
or combed.
51.03 Waste of wool or of fine or coarse animal WO
hair, including yarn waste but
excluding garneted stock.
51.04 5104.00 Garneted stock of wool or of fine or CC
coarse animal hair.
51.05 Wool and fine or coarse animal hair, CTH
carded or combed (including combed wool
in fragments).
51.06 Yarn of carded wool, not put up for CTH outside
724
retail sale. heading 51.06
51.07 Yarn of combed wool, not put up for through 51.10.
retail sale.
51.08 Yarn of fine animal hair (carded or
combed), not put up for retail sale.
51.09 Yarn of wool or of fine animal hair, put
up for retail sale.
51.10 5110.00 Yarn of coarse animal hair or of
horsehair (including gimped horsehair
yarn), whether or not put up for retail
sale.
51.11 Woven fabrics of carded wool or of CTH outside
carded fine animal hair. heading 51.11
51.12 Woven fabrics of combed wool or of through 51.13
combed fine animal hair. provided that,
51.13 5113.00 Woven fabrics of coarse animal hair or where
of horsehair. non-originati
ng materials
of heading
51.06 through
51.10 are
used, each of
the non-
originating
materials is
spun, or dyed
or printed
entirely in
either Party
or a non-Party
which is a
Member State
of the ASEAN;
or
No required
CTC, provided
that the good
is dyed or
printed
entirely and
that the non-
originating
material of
heading 51.11
through 51.13
is woven
entirely in
either Party
or a non-Party
which is a
Member State
of the ASEAN.
Chapter 52 Cotton
725
52.01 5201.00 Cotton, not carded or combed. CC
52.02 Cotton waste (including yarn waste and WO
garneted stock).
52.03 5203.00 Cotton, carded or combed. CC
52.04 Cotton sewing thread, whether or not CTH outside
put up for retail sale. heading 52.04
52.05 Cotton yarn (other than sewing thread), through 52.07,
containing 85 % or more by weight of provided that,
cotton, not put up for retail sale. where non-
52.06 Cotton yarn (other than sewing thread), originating
containing less than 85 % by weight of materials of
cotton, not put up for retail sale. heading 52.03
52.07 Cotton yarn (other than sewing thread) are used, each
put up for retail sale. of the non-
originating
materials is
carded or
combed
entirely in
either Party
or a non-Party
which is a
Member State
of the ASEAN.
52.08 Woven fabrics of cotton, containing CTH outside
85 % or more by weight of cotton, heading 52.08
weighing not more than 200 g/m2. through 52.12,
52.09 Woven fabrics of cotton, containing provided that,
85 % or more by weight of cotton, where non-
weighing more than 200 g/m2. originating
52.10 Woven fabrics of cotton, containing materials of
less than 85 % by weight of cotton, mixed heading 52.04
mainly or solely with man-made fibers, through 52.07
weighing not more than 200 g/m2. are used, each
52.11 Woven fabrics of cotton, containing of the non-
less than 85 % by weight of cotton, mixed originating
mainly or solely with man-made fibers, materials is
weighing more than 200 g/m2. spun, or dyed
52.12 Other woven fabrics of cotton. or printed
entirely in
either Party
or a non-Party
which is a
Member State
of the ASEAN
or
No required
CTC, provided
that the good
is dyed or
printed
entirely and
that the non-
726
originating
material of
heading 52.08
through 52.12
is woven
entirely in
either Party
or a non-Party
which is a
Member State
of the ASEAN.
Chapter 53 Other vegetable textile fibers; paper
yarn and woven fabrics of paper yarn
53.01 Flax, raw or processed but not spun; CC
flax tow and waste (including yarn
waste and garneted stock).
53.02 True hemp (Cannabis sativa L.), raw or CC
processed but not spun; tow and waste
of true hemp (including yarn waste and
garneted stock).
53.03 Jute and other textile bast fibers CC
(excluding flax, true hemp and ramie),
raw or processed but not spun; tow and
waste of these fibers (including yarn
53.05 5305.00 Coconut, abaca (Manila hemp or Musa CC
textilis Nee), ramie and other
vegetable textile fibers, not
elsewhere specified or included, raw or
processed but not spun; tow, noils and
waste of these fibers (including yarn
53.06 Flax yarn. CTH outside
53.07 Yarn of jute or of other textile bast heading 53.06
fibers of heading 53.03. through 53.08.
53.08 Yarn of other vegetable textile fibers;
paper yarn.
53.09 Woven fabrics of flax. CTH outside
53.10 Woven fabrics of jute or of other heading 53.09
textile bast fibers of heading 53.03. through 53.11,
53.11 5311.00 Woven fabrics of other vegetable provided that,
textile fibers; woven fabrics of paper where non-
yarn. originating
materials of
heading 53.06
through 53.08
are used, each
of the non-
originating
materials is
spun, or dyed
or printed
entirely in
727
either Party
or a non-Party
which is a
Member State
of the ASEAN;
or
No required
CTC, provided
that the good
is dyed or
printed
entirely and
that the non-
originating
material of
heading 53.09
through 53.11
is woven
entirely in
either Party
or a non-Party
which is a
Member State
of the ASEAN.
Chapter 54 Man-made filaments; strip and the like
of man-made textile materials
54.01 Sewing thread of man-made filaments, CC
whether or not put up for retail sale.
54.02 Synthetic filament yarn (other than CC
sewing thread), not put up for retail
sale, including synthetic monofilament
of less than 67 decitex.
54.03 Artificial filament yarn (other than CC
sewing thread), not put up for retail
sale, including artificial
monofilament of less than 67 decitex.
54.04 Synthetic monofilament of 67 decitex or CC
more and of which no cross-sectional
dimension exceeds 1 mm; strip and the
like (for example, artificial straw) of
synthetic textile materials of an
apparent width not exceeding 5 mm.
54.05 5405.00 Artificial monofilament of 67 decitex CC
or more and of which no cross-sectional
dimension exceeds 1 mm; strip and the
like (for example, artificial straw) of
artificial textile materials of an
apparent width not exceeding 5 mm.
54.06 5406.00 Man-made filament yarn (other than CC
sewing thread), put up for retail sale.
54.07 Woven fabrics of synthetic filament CTH outside
yarn, including woven fabrics obtained heading 54.07
from materials of heading 54.04. or 54.08,
728
54.08 Woven fabrics of artificial filament provided that,
yarn, including woven fabrics obtained where non-
from materials of heading 54.05. originating
materials of
heading 54.01
through 54.06
are used, each
of the non-
originating
materials is
spun, or dyed
or printed
entirely in
either Party
or a non-Party
which is a
Member State
of the ASEAN;
or
No required
CTC, provided
that the good
is dyed or
printed
entirely and
that the non-
originating
material of
heading 54.07
or 54.08 is
woven entirely
in either
Party or a
non-Party
which is a
Member State
of the ASEAN.
Chapter 55 Man-made staple fibers
55.01 Synthetic filament tow. CC except from
55.02 5502.00 Artificial filament tow. heading 54.01
55.03 Synthetic staple fibers, not carded, through 54.06.
combed or otherwise processed for
spinning.
55.04 Artificial staple fibers, not carded,
spinning.
55.05 Waste (including noils, yarn waste and
garneted stock) of man-made fibers.
55.06 Synthetic staple fibers, carded,
spinning.
55.07 5507.00 Artificial staple fibers, carded,
729
spinning.
55.08 Sewing thread of man-made staple CTH outside
fibers, whether or not put up for retail heading 55.08
sale. through 55.11,
55.09 Yarn (other than sewing thread) of provided that,
synthetic staple fibers, not put up for where non-
retail sale. originating
55.10 Yarn (other than sewing thread) of materials of
artificial staple fibers, not put up heading 55.06
for retail sale. or 55.07 are
55.11 Yarn (other than sewing thread) of used, each of
man-made staple fibers, put up for the non-
retail sale. originating
materials is
carded or
combed
entirely in
either Party
or a non-Party
which is a
Member State
of the ASEAN.
55.12 Woven fabrics of synthetic staple CTH outside
fibers, containing 85 % or more by heading 55.12
weight of synthetic staple fibers. through 55.16,
55.13 Woven fabrics of synthetic staple provided that,
fibers, containing less than 85 % by where non-
weight of such fibers, mixed mainly or originating
solely with cotton, of a weight not materials of
exceeding 170 g/m２. heading 55.08
55.14 Woven fabrics of synthetic staple through 55.11
fibers, containing less than 85 % by are used, each
weight of such fibers, mixed mainly or of the non-
solely with cotton, of a weight originating
exceeding 170 g/m２. materials is
55.15 Other woven fabrics of synthetic staple spun, or dyed
fibers. or printed
55.16 Woven fabrics of artificial staple entirely in
fibers. either Party
or a non-Party
which is a
Member State
of the ASEAN;
or
No required
CTC, provided
that the good
is dyed or
printed
entirely and
that the non-
originating
material of
730
heading 55.12
through 55.16
is woven
entirely in
either Party
or a non-Party
which is a
Member State
of the ASEAN.
Chapter 56 Wadding, felt and nonwovens; special
yarns; twine, cordage, ropes and cables
and articles thereof
56.01 Wadding of textile materials and CC except from
articles thereof; textile fibers, not heading 50.04
exceeding 5 mm in length (flock), through 50.07,
textile dust and mill neps. 51.06 through
56.02 Felt, whether or not impregnated, 51.13, 52.04
coated, covered or laminated. through 52.12,
56.03 Nonwovens, whether or not impregnated, 53.06 through
coated, covered or laminated. 53.11, 55.08
through 55.16
or Chapter 54.
56.04 Rubber thread and cord, textile CC, provided
covered; textile yarn, and strip and that, where
the like of heading 54.04 or 54.05, non-
impregnated, coated, covered or originating
sheathed with rubber or plastics. materials of
56.05 5605.00 Metalized yarn, whether or not gimped, heading 50.04
being textile yarn, or strip or the like through 50.06,
of heading 54.04 or 54.05, combined 51.06 through
with metal in the form of thread, strip 51.10, 52.04
or powder or covered with metal. through 52.07,
56.06 5606.00 Gimped yarn, and strip and the like of 53.06 through
heading 54.04 or 54.05, gimped (other 53.08, 54.01
than those of heading 56.05 and gimped through 54.06,
horsehair yarn); chenille yarn or 55.08
(including flock chenille yarn); loop through 55.11
wale-yarn. are used, each
56.07 Twine, cordage, ropes and cables, of the non-
whether or not plaited or braided and originating
whether or not impregnated, coated, materials is
covered or sheathed with rubber or spun entirely
plastics. in either
56.08 Knotted netting of twine, cordage or Party or a
rope; made up fishing nets and other non-Party
made up nets, of textile materials. which is a
56.09 5609.00 Articles of yarn, strip or the like of Member State
heading 54.04 or 54.05, twine, cordage, the ASEAN.
rope or cables, not elsewhere specified
or included.
Chapter 57 Carpets and other textile floor CC, except
coverings from heading
50.07, 51.11
731
through 51.13,
52.08 through
52.12, 53.09
through 53.11,
54.07, 54.08,
or 55.12
through 55.16,
provided that,
where non-
originating
materials of
heading 50.04
through 50.06,
51.06 through
51.10, 52.04
through 52.07,
53.06 through
53.08, 54.01
through 54.06,
or 55.08
through 55.11
are used, each
of the non-
originating
materials is
spun entirely
in either
Party or a
non-Party
which is a
Member State
of the ASEAN.
Chapter 58 Special woven fabrics; tufted textile CC, provided
fabrics; lace; tapestries; trimmings; that, where
embroidery non-
originating
materials of
heading 50.04
through 50.06,
51.06 through
51.10, 52.04
through 52.07,
53.06 through
53.08, 54.01
through 54.06,
or 55.08
through 55.11
are used, each
of the non-
originating
materials is
spun entirely
in either
732
Party or a
non-Party
which is a
Member State
of the ASEAN.
Chapter 59 Impregnated, coated, covered or
laminated textile fabrics; textile
articles of a kind suitable for
industrial use
59.01 Textile fabrics coated with gum or CC, except
amylaceous substances, of a kind used from heading
for the outer covers of books or the 50.07, 51.11
like; tracing cloth; prepared painting through 51.13,
canvas; buckram and similar stiffened 52.08 through
textile fabrics of a kind used for hat 52.12, 53.09
foundations. through 53.11,
54.07, 54.08,
or 55.12
through 55.16.
59.02 Tire cord fabric of high tenacity yarn CTH, except
of nylon or other polyamides, from heading
polyesters or viscose rayon. 50.07, 51.11
through 51.13,
52.08 through
52.12, 53.09
through 53.11,
54.07, 54.08,
or 55.12
through 55.16,
provided that,
where non-
originating
materials of
heading 50.04
through 50.06,
51.06 through
51.10, 52.04
through 52.07,
53.06 through
53.08, 54.01
through 54.06,
or 55.08
through 55.11
are used, each
of the non-
originating
materials is
spun entirely
in either
Party or a
non-Party
which is a
Member State
733
of the ASEAN.
59.03 Textile fabrics impregnated, coated, CC, except
covered or laminated with plastics, from heading
other than those of heading 59.02. 50.07, 51.11
59.04 Linoleum, whether or not cut to shape; through 51.13,
floor coverings consisting of a coating 52.08 through
or covering applied on a textile 52.12, 53.09
backing, whether or not cut to shape. through 53.11,
59.05 5905.00 Textile wall coverings. 54.07, 54.08,
59.06 Rubberized textile fabrics, other than or 55.12
those of heading 59.02. through 55.16,
59.07 5907.00 Textile fabrics otherwise impregnated, provided that,
coated or covered; painted canvas being where non-
theatrical scenery, studio back-cloths originating
or the like. materials of
59.08 5908.00 Textile wicks, woven, plaited or heading 50.04
knitted, for lamps, stoves, lighters, through 50.06,
candles or the like; incandescent gas 51.06 through
mantles and tubular knitted gas mantle 51.10, 52.04
fabric therefor, whether or not through 52.07,
impregnated. 53.06 through
59.09 5909.00 Textile hosepiping and similar textile 53.08, 54.01
tubing, with or without lining, armor through 54.06,
or accessories of other materials. or 55.08
through 55.11
are used, each
of the non-
originating
materials is
spun entirely
in either
Party or a
non-Party
which is a
Member State
of the ASEAN.
59.10 5910.00 Transmission or conveyor belts or CTH, except
belting, of textile material, whether from heading
or not impregnated, coated, covered or 50.07, 51.11
laminated with plastics, or reinforced through 51.13,
with metal or other material. 52.08 through
52.12, 53.09
through 53.11,
54.07, 54.08,
or 55.12
through 55.16,
provided that,
where non-
originating
materials of
heading 50.04
through 50.06,
51.06 through
734
51.10, 52.04
through 52.07,
53.06 through
53.08, 54.01
through 54.06,
or 55.08
through 55.11
are used, each
of the non-
originating
materials is
spun entirely
in either
Party or a
non-Party
which is a
Member State
of the ASEAN.
59.11 Textile products and articles, for CC, except
technical uses, specified in Note 7 to from heading
this Chapter. 50.07, 51.11
through 51.13,
52.08 through
52.12, 53.09
through 53.11,
54.07, 54.08,
or 55.12
through 55.16,
provided that,
where non-
originating
materials of
heading 50.04
through 50.06,
51.06 through
51.10, 52.04
through 52.07,
53.06 through
53.08, 54.01
through 54.06,
or 55.08
through 55.11
are used, each
of the non-
originating
materials is
spun entirely
in either
Party or a
non-Party
which is a
Member State
of the ASEAN.
735
Chapter 60 Knitted or crocheted fabrics CC, provided
that, where
non-
originating
materials of
heading 50.04
through 50.06,
51.06 through
51.10, 52.04
through 52.07,
53.06 through
53.08, 54.01
through 54.06,
or 55.08
through 55.11
are used, each
of the non-
originating
materials is
spun, or dyed
or printed
entirely in
either Party
or non-Party
which is a
Member State
of the ASEAN;
or
No required
CTC, provided
that the good
is dyed or
printed
entirely and
that the
non-originati
ng material of
Chapter 60 is
knitted or
crocheted
entirely in
either Party
or a non-Party
which is a
Member State
of the ASEAN.
Chapter 61 Articles of apparel and clothing CC, provided
accessories, knitted or crocheted that, where
non-
originating
materials of
heading 50.07,
51.11 through
736
51.13, 52.08
through 52.12,
53.09 through
53.11, 54.07,
54.08, 55.12
through 55.16
or Chapter 60
are used, each
of the non-
originating
materials is
knitted or
crocheted
entirely in
either Party
or a non-Party
which is a
Member State
of the ASEAN.
Chapter 62 Articles of apparel and clothing
accessories, not knitted or crocheted
62.01 Men’s or boys’ overcoats, car-coats, CC, provided
capes, cloaks, anoraks (including that, where
ski-jackets), wind-cheaters, non-
wind-jackets and similar articles, originating
other than those of heading 62.03. materials of
62.02 Women’s or girls’ overcoats, heading 50.07,
car-coats, capes, cloaks, anoraks 51.11 through
(including ski-jackets), 51.13, 52.08
wind-cheaters, wind-jackets and through 52.12,
similar articles, other than those of 53.09 through
heading 62.04. 53.11, 54.07,
62.03 Men’s or boys’ suits, ensembles, 54.08, 55.12
jackets, blazers, trousers, bib and through 55.16
brace overalls, breeches and shorts or Chapter 60
(other than swimwear). are used, each
62.04 Women’s or girls’ suits, ensembles, of the non-
jackets, blazers, dresses, skirts, originating
divided skirts, trousers, bib and brace materials is
overalls, breeches and shorts (other woven entirely
than swimwear). in either
62.05 Men’s or boys’ shirts. Party or a
non-Party
62.06 Women’s or girls’ blouses, shirts and which is a
shirt-blouses. Member State
62.07 Men’s or boys’ singlets and other of the ASEAN.
vests, underpants, briefs,
nightshirts, pyjamas, bathrobes,
dressing gowns and similar articles.
62.08 Women’s or girls’ singlets and other
vests, slips, petticoats, briefs,
panties, nightdresses, pyjamas,
négligés, bathrobes, dressing gowns
737
and similar articles.
62.09 Babies’ garments and clothing
accessories.
62.10 Garments, made up of fabrics of heading
56.02, 56.03, 59.03, 59.06 or 59.07.
62.11 Track suits, ski suits and swimwear;
other garments.
62.12 Brassières, girdles, corsets, braces, CC, provided
suspenders, garters and similar that, where
articles and parts thereof, whether or non-
not knitted or crocheted. originating
materials of
heading 50.07,
51.11 through
51.13, 52.08
through 52.12,
53.09 through
53.11, 54.07,
54.08, 55.12
through 55.16
or Chapter 60
are used, each
of the non-
originating
materials is
woven, or
knitted or
crocheted
entirely in
either Party
or a non-Party
which is a
Member State
of the ASEAN.
62.13 Handkerchiefs. CC, provided
that, where
non-
originating
materials of
heading 50.07,
51.11 through
51.13, 52.08
through 52.12,
53.09 through
53.11, 54.07,
54.08, 55.12
through 55.16
or chapter 60
are used, each
of the non-
originating
738
62.14 Shawls, scarves, mufflers, mantillas, materials is
veils and the like. woven entirely
62.15 Ties, bow ties and cravats. in either
Party or a
62.16 6216.00 Gloves, mittens and mitts. non-Party
62.17 Other made up clothing accessories; which is a
parts of garments or of clothing Member State
accessories, other than those of of the ASEAN.
heading 62.12.
Chapter 63 Other made up textile articles; sets;
worn clothing and worn textile
articles; rags
63.01 Blankets and traveling rugs. CC, provided
63.02 Bed linen, table linen, toilet linen that, where
and kitchen linen. non-
63.03 Curtains (including drapes) and originating
interior blinds; curtain or bed materials of
valances. heading 50.07,
63.04 Other furnishing articles, excluding 51.11 through
those of heading 94.04. 51.13, 52.08
63.05 Sacks and bags, of a kind used for the through 52.12,
packing of goods. 53.09 through
63.06 Tarpaulins, awnings and sunblinds; 53.11, 54.07,
tents; sails for boats, sailboards or 54.08, 55.12
landcraft; camping goods. through 55.16
63.07 Other made up articles, including dress or Chapter 60
patterns. are used, each
63.08 6308.00 Sets consisting of woven fabric and of the non-
yarn, whether or not with accessories, originating
for making up into rugs, tapestries, materials is
embroidered table cloths or woven, or
serviettes, or similar textile knitted or
articles, put up in packings for retail crocheted
sale. entirely in
either Party
or a non-Party
which is a
Member State
of the ASEAN.
63.09 6309.00 Worn clothing and other worn articles. WO
63.10 Used or new rags, scrap twine, cordage, WO
rope and cables and worn out articles
of twine, cordage, rope or cables, of
textile materials.
Section XII Footwear, headgear, umbrellas, sun umbrellas, walking-sticks,
seat-sticks, whips, riding-crops and parts thereof; prepared feathers and articles
made therewith; artificial flowers; articles of human hair (Chapter 64-67)
Chapter 64 Footwear, gaiters and the like; parts CC
of such articles
Chapter 65 Headgear and parts thereof
65.01 6501.00 Hat-forms, hat bodies and hoods of CC
felt, neither blocked to shape nor with
made brims; plateaux and manchons
739
(including slit manchons), of felt.
65.02 6502.00 Hat-shapes, plaited or made by CC
assembling strips of any material,
neither blocked to shape, nor with made
brims, nor lined, nor trimmed.
65.04 6504.00 Hats and other headgear, plaited or CTH
made by assembling strips of any
material, whether or not lined or
trimmed.
65.05 Hats and other headgear, knitted or CTH
crocheted, or made up from lace, felt
or other textile fabric, in the piece
(but not in strips), whether or not
lined or trimmed; hair-nets of any
material, whether or not lined or
trimmed.
Section XIII Articles of stone, plaster, cement, asbestos, mica or similar materials;
ceramic products; glass and glassware (Chapter 68-70)
Chapter 70 Glass and glassware
70.18 Glass beads, imitation pearls,
imitation precious or semi-precious
stones and similar glass smallwares,
and articles thereof other than
imitation jewelry; glass eyes other
than prosthetic articles; statuettes
and other ornaments of lamp-worked
glass, other than imitation jewelry;
glass microspheres not exceeding 1 mm
in diameter.
7018.10 - Glass beads, imitation pearls, CC
imitation precious or semi-precious
stones and similar glass smallwares
7018.90 - Other CC
Note: Other than glass beads, imitation
pearls, imitation precious or
semi-precious stones, similar
glass smallwares, and glass
microspheres not exceeding 1 mm in
diameter.
Section XIV Natural or cultured pearls, precious or semi-precious stones, precious
metals, metals clad with precious metal, and articles thereof; imitation jewelry;
coin (Chapter 71)
Chapter 71 Natural or cultured pearls, precious or
semi-precious stones, precious metals,
metals clad with precious metal, and
articles thereof; imitation jewelry;
coin
71.01 Pearls, natural or cultured, whether or CC
not worked or graded but not strung,
mounted or set; pearls, natural or
cultured, temporarily strung for
convenience of transport.
71.02 Diamonds, whether or not worked, but not
740
mounted or set.
7102.10 - Unsorted CC
- Industrial:
7102.21 -- Unworked or simply sawn, cleaved or CC
bruted
7102.29 -- Other CTH
- Non-industrial:
7102.31 -- Unworked or simply sawn, cleaved or CC
bruted
71.03 Precious stones (other than diamonds)
and semi-precious stones, whether or
not worked or graded but not strung,
mounted or set; ungraded precious
stones (other than diamonds) and
semi-precious stones, temporarily
strung for convenience of transport.
7103.10 - Unworked or simply sawn or roughly CC
shaped
- Otherwise worked:
7103.91 -- Rubies, sapphires and emeralds CTH
71.04 Synthetic or reconstructed precious or CTH
semi-precious stones, whether or not
worked or graded but not strung, mounted
or set; ungraded synthetic or
reconstructed precious or
semi-precious stones, temporarily
strung for convenience of transport.
71.05 Dust and powder of natural or synthetic CTH
precious or semi-precious stones.
71.12 Waste and scrap of precious metal or of WO
metal clad with precious metal; other
waste and scrap containing precious
metal or precious metal compounds, of
a kind used principally for the recovery
of precious metal.
71.13 Articles of jewelry and parts thereof, CTH except
of precious metal or of metal clad with from heading
precious metal. 71.14 through
71.18.
71.14 Articles of goldsmiths' or CTH except
silversmiths’ wares and parts thereof, from heading
of precious metal or of metal clad with 71.13 or 71.15
precious metal. through 71.18.
71.15 Other articles of precious metal or of CTH except
metal clad with precious metal. from heading
71.13, 71.14
or 71.16
through 71.18.
71.16 Articles of natural or cultured pearls, CTH except
precious or semi-precious stones from heading
741
(natural, synthetic or reconstructed). 71.13 through
71.15, 71.17,
71.18,
subheading
7101.22,
7102.39,
7103.91,
7103.99 or
7104.90.
71.17 Imitation jewelry. CTH except
from heading
71.13 through
71.16.
Section XV Base metals and articles of base metal (Chapter 72-83)
Chapter 72 Iron and steel
72.01 Pig iron and spiegeleisen in pigs, LVC 40% or CC
blocks or other primary forms.
72.03 Ferrous products obtained by direct LVC 40% or CC
reduction of iron ore and other spongy
ferrous products, in lumps, pellets or
similar forms; iron having a minimum
purity by weight of 99.94 %, in lumps,
pellets or similar forms.
72.04 Ferrous waste and scrap; remelting WO
scrap ingots of iron or steel.
72.06 Iron and non-alloy steel in ingots or LVC 40% or CTH
other primary forms (excluding iron of except from
heading 72.03). heading 72.01
or 72.03
through 72.29
72.07 Semi-finished products of iron or LVC 40% or CTH
non-alloy steel. except from
heading 72.01
or 72.03
through 72.29.
72.08 Flat-rolled products of iron or LVC 40% or CTH
non-alloy steel, of a width of 600 mm except from
or more, hot-rolled, not clad, plated heading 72.01
or coated. or 72.03
through 72.29.
non-alloy steel, of a width of 600 mm except from
or more, cold-rolled (cold-reduced), heading 72.08
not clad, plated or coated. or 72.11.
non-alloy steel, of a width of less than except from
600 mm, not clad, plated or coated. heading 72.01
or 72.03
through 72.29.
72.15 Other bars and rods of iron or non-alloy LVC 40% or CTH
steel. except from
heading 72.01
or 72.03
742
through 72.29.
72.16 Angles, shapes and sections of iron or LVC 40% or CTH
non-alloy steel. except from
heading 72.01
or 72.03
through 72.29.
72.17 Wire of iron or non-alloy steel. LVC 40% or CTH
except from
heading 72.13
through 72.15.
72.20 Flat-rolled products of stainless LVC 40% or CTH
steel, of a width of less than 600 mm. except from
subheading
7219.31
through
7219.90.
Chapter 73 Articles of iron or steel
73.01 Sheet piling of iron or steel, whether LVC 40% or CC
or not drilled, punched or made from except from
assembled elements; welded angles, heading 72.07
shapes and sections, of iron or steel. through 72.09
or 72.11.
73.02 Railway or tramway track construction LVC 40% or CC
material of iron or steel, the except from
following: rails, check-rails and heading 72.07
rack rails, switch blades, crossing through 72.09.
frogs, point rods and other crossing
pieces, sleepers (cross-ties),
fish-plates, chairs, chairs wedges,
sole plates (base plates), rail clips,
bedplates, ties and other material
specialized for jointing or fixing
rails.
73.03 7303.00 Tubes, pipes and hollow profiles, of LVC 40% or CC
cast iron.
73.04 Tubes, pipes and hollow profiles, LVC 40% or CC
seamless, of iron (other than cast iron) except from
or steel. heading 72.07
through 72.11.
73.05 Other tubes and pipes (for example, LVC 40% or CC
welded, riveted or similarly closed), except from
having circular cross-sections, the heading 72.08
external diameter of which exceeds through 72.11.
406.4 mm, of iron or steel.
73.06 Other tubes, pipes and hollow profiles
(for example, open seam or welded,
riveted or similarly closed), of iron
or steel.
- Line pipe of a kind used for oil or
gas pipelines:
7306.11 -- Welded, of stainless steel LVC 40% or CC
except from
heading 72.08,
743
72.09 or
72.11.
7306.19 -- Other LVC 40% or CC
except from
heading 72.08,
72.09 or
72.11.
- Casing and tubing of a kind used in
drilling for oil or gas:
7306.21 -- Welded, of stainless steel LVC 40% or CC
except from
heading 72.08,
72.09 or
72.11.
except from
heading 72.08,
72.09 or
72.11.
7306.30 - Other, welded, of circular LVC 40% or CC
cross-section, of iron or non-alloy except from
steel heading 72.08,
72.09 or
72.11.
cross-section, of stainless steel
cross-section, of other alloy steel except from
heading 72.08,
72.09 or
72.11.
- Other, welded, of non-circular
cross-section:
7306.61 -- Of square or rectangular LVC 40% or CC
cross-section except from
heading 72.08,
72.09 or
72.11.
7306.69 -- Of other non-circular cross-section LVC 40% or CC
except from
heading 72.08,
72.09 or
72.11.
7306.90 - Other LVC 40% or CC
except from
heading 72.08,
72.09 or
72.11.
73.07 Tube or pipe fittings (for example,
couplings, elbows, sleeves), of iron or
steel.
- Cast fittings:
744
7307.11 -- Of non-malleable cast iron LVC 40% or CC
- Other, of stainless steel:
7307.21 -- Flanges LVC 40% or CC
7307.22 -- Threaded elbows, bends and sleeves LVC 40% or CC
7307.23 -- Butt welding fittings LVC 40% or CC
- Other:
7307.91 -- Flanges LVC 40% or CC
7307.92 -- Threaded elbows, bends and sleeves LVC 40% or CTH
except from
heading 73.04
through 73.06.
7307.93 -- Butt welding fittings LVC 40% or CTH
except from
heading 73.04
through 73.06.
7307.99 -- Other LVC 40% or CTH
except from
heading 73.04
through 73.06.
73.08 Structures (excluding prefabricated LVC 40% or CTH
buildings of heading 94.06) and parts except from
of structures (for example, bridges and heading 72.08
bridge-sections, lock-gates, towers, through 72.12
lattice masts, roofs, roofing or 72.16.
frame-works, doors and windows and
their frames and thresholds for doors,
shutters, balustrades, pillars and
columns), of iron or steel; plates,
rods, angles, shapes, sections, tubes
and the like, prepared for use in
structures, of iron or steel.
73.09 7309.00 Reservoirs, tanks, vats and similar LVC 40% or CC
containers for any material (other than except from
compressed or liquefied gas), of iron heading 72.08
or steel, of a capacity exceeding 300 through 72.12,
l, whether or not lined or 72.25 or
heat-insulated, but not fitted with 72.26.
mechanical or thermal equipment.
73.10 Tanks, casks, drums, cans, boxes and
similar containers, for any material
(other than compressed or liquefied
gas), of iron or steel, of a capacity
not exceeding 300 l, whether or not
lined or heat-insulated, but not fitted
with mechanical or thermal equipment.
7310.10 - Of a capacity of 50 l or more LVC 40% or CC
except from
heading 72.08
through 72.12,
72.25 or
745
72.26.
- Of a capacity of less than 50 l:
7310.21 -- Cans which are to be closed by LVC 40% or CC
soldering or crimping except from
heading 72.08
through 72.12.
except from
heading 72.08
through 72.12.
73.11 7311.00 Containers for compressed or liquefied LVC 40% or CC
gas, of iron or steel.
73.12 Stranded wire, ropes, cables, plaited LVC 40% or CC
bands, slings and the like, of iron or except from
steel, not electrically insulated. heading 72.13
or 72.17.
73.13 7313.00 Barbed wire of iron or steel; twisted LVC 40% or CC
hoop or single flat wire, barbed or not, except from
and loosely twisted double wire, of a heading 72.13
kind used for fencing, of iron or steel. through 72.15
or 72.17.
73.14 Cloth (including endless bands), grill,
netting and fencing, of iron or steel
wire; expanded metal of iron or steel.
- Woven cloth:
7314.12 -- Endless bands for machinery, of LVC 40% or CC
stainless steel
7314.14 -- Other woven cloth, of stainless steel LVC 40% or CC
7314.20 - Grill, netting and fencing, welded at LVC 40% or CC
the intersection of wire with a maximum except from
cross-sectional dimension of 3 mm or heading 72.08
more and having a mesh size of 100 cm2 through 72.17.
or more
- Other grill, netting and fencing,
welded at the intersection:
7314.31 -- Plated or coated with zinc LVC 40% or CC
except from
heading 72.08
through 72.17.
except from
heading 72.08
through 72.17.
- Other cloth, grill, netting and
fencing:
7314.41 -- Plated or coated with zinc LVC 40% or CC
except from
heading 72.08
through 72.17.
7314.42 -- Coated with plastics LVC 40% or CC
except from
746
heading 72.08
through 72.17.
except from
heading 72.08
through 72.17.
7314.50 - Expanded metal LVC 40% or CC
except from
heading 72.08
through 72.17.
73.15 Chain and parts thereof, of iron or LVC 40% or CC
steel. except from
heading 72.13
through 72.17.
73.16 7316.00 Anchors, grapnels and parts thereof, of LVC 40% or CC
iron or steel.
73.17 7317.00 Nails, tacks, drawing pins, corrugated LVC 40% or CC
nails, staples (other than those of except from
heading 83.05) and similar articles, of heading 72.13
iron or steel, whether or not with heads through 72.17.
of other material, but excluding such
articles with heads of copper.
73.19 Sewing needles, knitting needles, LVC 40% or CC
bodkins, crochet hooks, embroidery except from
stilettos and similar articles, for use heading 72.13
in the hand, of iron or steel; safety through 72.17.
pins and other pins of iron or steel,
not elsewhere specified or included.
73.20 Springs and leaves for springs, of iron LVC 40% or CC
or steel. except from
heading 72.08
through 72.17.
73.23 Table, kitchen or other household LVC 40% or CC
articles and parts thereof, of iron or
steel; iron or steel wool; pot scourers
and scouring or polishing pads, gloves
and the like, of iron or steel.
73.24 Sanitary ware and parts thereof, of iron LVC 40% or CC
or steel.
73.25 Other cast articles of iron or steel. LVC 40% or CC
73.26 Other articles of iron or steel.
- Forged or stamped, but not further
worked:
7326.11 -- Grinding balls and similar articles LVC 40% or CC
for mills except from
heading 72.07.
except from
heading 72.07.
7326.20 - Articles of iron or steel wire LVC 40% or CC
except from
heading 72.13.
747
Chapter 74 Copper and articles thereof
74.04 7404.00 Copper waste and scrap. WO
Chapter 75 Nickel and articles thereof
75.03 7503.00 Nickel waste and scrap. WO
Chapter 76 Aluminum and articles thereof
76.01 Unwrought aluminum. LVC 40% or CC
76.02 7602.00 Aluminum waste and scrap. WO
Chapter 78 Lead and articles thereof
78.02 7802.00 Lead waste and scrap. WO
Chapter 79 Zinc and articles thereof
79.02 7902.00 Zinc waste and scrap. WO
Chapter 80 Tin and articles thereof
80.02 8002.00 Tin waste and scrap. WO
Chapter 81 Other base metals; cermets; articles
thereof
81.01 Tungsten (wolfram) and articles
thereof, including waste and scrap.
- Other:
Note: Other than powders.
8101.97 -- Waste and scrap WO
81.02 Molybdenum and articles thereof,
including waste and scrap.
- Other:
Note: Other than powders.
81.03 Tantalum and articles thereof,
8103.30 - Waste and scrap WO
81.04 Magnesium and articles thereof,
81.05 Cobalt mattes and other intermediate
products of cobalt metallurgy; cobalt
and articles thereof, including waste
and scrap.
81.07 Cadmium and articles thereof, including
waste and scrap.
8107.30 - waste and scrap WO
81.08 Titanium and articles thereof,
81.09 Zirconium and articles thereof,
81.10 Antimony and articles thereof,
81.12 Beryllium, chromium, germanium,
vanadium, gallium, hafnium, indium,
niobium (columbium), rhenium and
thallium, and articles of these metals,
748
-Beryllium:
- Chromium:
- Thallium:
Chapter 83 Miscellaneous articles of base metal
83.05 Fittings for loose-leaf binders or
files, letter clips, letter corners,
paper clips, indexing tags and similar
office articles, of base metal; staples
in strips (for example, for offices,
upholstery, packaging), of base metal.
8305.10 - Fittings for loose-leaf binders or LVC 40% or CTSH
files
8305.20 - Staples in strips LVC 40% or CTSH
83.06 Bells, gongs and the like,
non-electric, of base metal; statuettes
and other ornaments, of base metal;
photograph, picture or similar frames,
of base metal; mirrors of base metal.
- Statuettes and other ornaments:
8306.21 -- Plated with precious metal LVC 40% or CTSH
83.08 Clasps, frames with clasps, buckles,
buckle-clasps, hooks, eyes, eyelets and
the like, of base metal, of a kind used
for clothing, footwear, awnings,
handbags, travel goods or other made up
articles; tubular or bifurcated rivets,
of base metal; beads and spangles, of
base metal.
8308.10 - Hooks, eyes and eyelets LVC 40% or CTSH
8308.20 - Tubular or bifurcated rivets LVC 40% or CTSH
83.11 Wire, rods, tubes, plates, electrodes LVC 40% or CTSH
and similar products, of base metal or
of metal carbides, coated or cored with
flux material, of a kind used for
soldering, brazing, welding or
deposition of metal or of metal
carbides; wire and rods, of
agglomerated base metal powder, used
for metal spraying.
Section XVI Machinery and mechanical appliances; electrical equipment; parts
thereof; sound recorders and reproducers, television image and sound recorders and
reproducers, and parts and accessories of such articles (Chapter 84-85)
Chapter 84 Nuclear reactors, boilers, machinery
and mechanical appliances; parts
thereof
84.01 Nuclear reactors; fuel elements
(cartridges), non-irradiated, for
nuclear reactors; machinery and
749
apparatus for isotopic separation.
8401.10 - Nuclear reactors LVC 40% or CTSH
8401.20 - Machinery and apparatus for isotopic LVC 40% or CTSH
separation, and parts thereof
8401.30 - Fuel elements (cartridge), LVC 40% or CTSH
non-irradiated
84.02 Steam or other vapor generating boilers
(other than central heating hot water
boilers capable also of producing low
pressure steam); super-heated water
boilers.
- Steam or other vapor generating
boilers:
8402.11 -- Watertube boilers with a steam LVC 40% or CTSH
production exceeding 45 t per hour
8402.12 -- Watertube boilers with a steam LVC 40% or CTSH
production not exceeding 45 t per hour
8402.19 -- Other vapor generating boilers, LVC 40% or CTSH
including hybrid boilers
8402.20 - Super-heated water boilers LVC 40% or CTSH
84.04 Auxiliary plant for use with boilers of
heading 84.02 or 84.03 (for example,
economizers, super-heaters, soot
removers, gas recoverers); condensers
for steam or other vapor power units.
8404.10 - Auxiliary plant for use with boilers LVC 40% or CTSH
of heading 84.02 or 84.03
8404.20 - Condensers for steam or other vapor LVC 40% or CTSH
power units
84.10 Hydraulic turbines, water wheels, and
regulators therefor.
- Hydraulic turbines and water wheels:
8410.11 -- Of a power not exceeding 1,000 kW LVC 40% or CTSH
8410.12 -- Of a power exceeding 1,000 kW but not LVC 40% or CTSH
exceeding 10,000 kW
8410.13 -- Of a power exceeding 10,000 kW LVC 40% or CTSH
84.11 Turbo-jets, turbo-propellers and other
gas turbines.
- Turbo-jets:
8411.11 -- Of a thrust not exceeding 25 kN LVC 40% or CTSH
8411.12 -- Of a thrust exceeding 25 kN LVC 40% or CTSH
- Turbo-propellers:
- Other gas turbines:
84.12 Other engines and motors.
8412.10 - Reaction engines other than LVC 40% or CTSH
turbo-jets
- Hydraulic power engines and motors:
8412.21 -- Linear acting (cylinders) LVC 40% or CTSH
750
- Pneumatic power engines and motors:
8412.31 -- Linear acting (cylinders) LVC 40% or CTSH
84.13 Pumps for liquids, whether or not fitted
with a measuring device; liquid
elevators.
- Pumps fitted or designated to be
fitted with a measuring device:
8413.11 -- Pumps for dispensing fuel or LVC 40% or CTSH
lubricants, of the type used in
filling-stations or in garages
8413.20 - Hand pumps, other than those of LVC 40% or CTSH
subheading 8413.11 or 8413.19
8413.30 - Fuel, lubricating or cooling medium LVC 40% or CTSH
pumps for internal combustion piston
engines
8413.40 - Concrete pumps LVC 40% or CTSH
8413.50 - Other reciprocating positive LVC 40% or CTSH
displacement pumps
8413.60 - Other rotary positive displacement LVC 40% or CTSH
pumps
8413.70 - Other centrifugal pumps LVC 40% or CTSH
- Other pumps; liquid elevators：
8413.81 -- Pumps LVC 40% or CTSH
8413.82 -- Liquid elevators LVC 40% or CTSH
84.14 Air or vacuum pumps, air or other gas
compressors and fans; ventilating or
recycling hoods incorporating a fan,
whether or not fitted with filters.
8414.10 - Vacuum pumps LVC 40% or CTSH
8414.20 - Hand- or foot-operated air pumps LVC 40% or CTSH
8414.30 - Compressors of a kind used in LVC 40% or CTSH
refrigerating equipment
8414.40 - Air compressors mounted on a wheeled LVC 40% or CTSH
chassis for towing
- Fans:
8414.51 -- Table, floor, wall, window, ceiling LVC 40% or CTSH
or roof fans, with a self-contained
electric motor of an output not
exceeding 125 W
8414.60 - Hoods having a maximum horizontal side LVC 40% or CTSH
not exceeding 120 cm
84.15 Air conditioning machines, comprising
a motor-driven fan and elements for
changing the temperature and humidity,
including those machines in which the
humidity cannot be separately
751
regulated.
8415.10 - Window of wall types, self-contained LVC 40% or CTSH
or “split-system”
8415.20 - Of a kind used for persons, in motor LVC 40% or CTSH
vehicles
- Other:
8415.81 -- Incorporating a refrigerating unit LVC 40% or CTSH
and a valve for reversal of the
cooling/heat cycle (reversible heat
pumps)
8415.82 -- Other, incorporating a refrigerating LVC 40% or CTSH
unit
8415.83 -- Not incorporating a refrigerating LVC 40% or CTSH
unit
84.16 Furnace burners for liquid fuel, for
pulverized solid fuel or for gas;
mechanical stokers, including their
mechanical grates, mechanical ash
dischargers and similar appliances.
8416.10 - Furnace burners for liquid fuel LVC 40% or CTSH
8416.20 - Other furnace burners, including LVC 40% or CTSH
combination burners
8416.30 - Mechanical stokers, including their LVC 40% or CTSH
mechanical grates, mechanical ash
dischargers and similar appliances
84.17 Industrial or laboratory furnaces and
ovens, including incinerators,
non-electric.
8417.10 - Furnaces and ovens for the roasting, LVC 40% or CTSH
melting or other heat-treatment of
ores, pyrites or of metals
8417.20 - Bakery ovens, including biscuit ovens LVC 40% or CTSH
84.18 Refrigerators, freezers and other
refrigerating or freezing equipment,
electric or other; heat pumps other than
air conditioning machines of heading
84.15.
8418.10 - Combined refrigerator-freezers, LVC 40% or CTSH
fitted with separate external doors
- Refrigerators, household type:
8418.21 -- Compression-type LVC 40% or CTSH
8418.30 - Freezers of the chest type, not LVC 40% or CTSH
exceeding 800 l capacity
8418.40 - Freezers of the upright type, not LVC 40% or CTSH
exceeding 900 l capacity
8418.50 - Other furniture (chests, cabinets, LVC 40% or CTSH
display counters, show-cases and the
like) for storage and display,
incorporating refrigerating or
freezing equipment
752
- Other refrigerating or freezing
equipment; heat pumps:
8418.61 -- Heat pumps other than air LVC 40% or CTSH
conditioning machines of heading 84.15
84.19 Machinery, plant or laboratory
equipment, whether or not electrically
heated (excluding furnaces, ovens and
other equipment of heading 85.14), for
the treatment of materials by a process
involving a change of temperature such
as heating, cooking, roasting,
distilling, rectifying, sterilizing,
pasteurizing, steaming, drying,
evaporating, vaporizing, condensing or
cooling, other than machinery or plant
of a kind used for domestic purposes;
instantaneous or storage water heaters,
non-electric.
- Instantaneous or storage water
heaters, non-electric:
8419.11 -- Instantaneous gas water heaters LVC 40% or CTSH
8419.20 - Medical, surgical or laboratory LVC 40% or CTSH
sterilizers
- Dryers:
8419.31 -- For agricultural products LVC 40% or CTSH
8419.32 -- For wood, paper pulp, paper or LVC 40% or CTSH
paperboard
8419.40 - Distilling or rectifying plant LVC 40% or CTSH
8419.50 - Heat exchange units LVC 40% or CTSH
8419.60 - Machinery for liquefying air or other LVC 40% or CTSH
gases
- Other machinery, plant and equipment:
8419.81 -- For making hot drinks or for cooking LVC 40% or CTSH
or heating food
84.20 Calendering or other rolling machines,
other than for metals or glass, and
cylinders therefor.
8420.10 - Calendering or other rolling machines LVC 40% or CTSH
84.21 Centrifuges, including centrifugal
dryers; filtering or purifying
machinery and apparatus, for liquids or
gases.
- Centrifuges, including centrifugal
dryers:
8421.11 -- Cream separators LVC 40% or CTSH
8421.12 -- Clothes-dryers LVC 40% or CTSH
- Filtering or purifying machinery and
753
apparatus for liquids:
8421.21 -- For filtering or purifying water LVC 40% or CTSH
8421.22 -- For filtering or purifying beverages LVC 40% or CTSH
other than water
8421.23 -- Oil or petrol-filters for internal LVC 40% or CTSH
combustion engines
- Filtering or purifying machinery and
apparatus for gases:
8421.31 -- Intake air filters for internal LVC 40% or CTSH
combustion engines
84.22 Dish washing machines; machinery for
cleaning or drying bottles or other
containers; machinery for filling,
closing, sealing or labeling bottles,
cans, boxes, bags or other containers;
machinery for capsuling bottles, jars,
tubes and similar containers; other
packing or wrapping machinery
(including heat-shrink wrapping
machinery); machinery for aerating
beverages.
- Dish washing machines:
8422.11 -- Of the household type LVC 40% or CTSH
8422.20 - Machinery for cleaning or drying LVC 40% or CTSH
bottles or other containers
8422.30 - Machinery for filling, closing, LVC 40% or CTSH
sealing, or labeling bottles, cans,
boxes, bags or other containers;
machinery for capsuling bottles, jars,
tubes and similar containers; machinery
for aerating beverages
8422.40 - Other packing or wrapping machinery LVC 40% or CTSH
(including heat-shrink wrapping
machinery)
84.23 Weighing machinery (excluding balances
of a sensitivity of 5 cg or better),
including weight operated counting or
checking machines; weighing machine
weights of all kinds.
8423.10 - Personal weighing machines, including LVC 40% or CTSH
baby scales; household scales
8423.20 - Scales for continuous weighing of LVC 40% or CTSH
goods on conveyors
8423.30 - Constant weight scales and scales for LVC 40% or CTSH
discharging a predetermined weight of
material into a bag or container,
including hopper scales
- Other weighing machinery:
8423.81 -- Having a maximum weighing capacity LVC 40% or CTSH
754
not exceeding 30 kg
8423.82 -- Having a maximum weighing capacity LVC 40% or CTSH
not exceeding 30 kg but not exceeding
5,000 kg
84.24 Mechanical appliances (whether or not
hand-operated) for projecting,
dispersing or spraying liquids or
powders; fire extinguishers, whether or
not charged; spray guns and similar
appliances; steam or sand blasting
machines and similar jet projecting
machines.
8424.10 - Fire extinguishers, whether or not LVC 40% or CTSH
charged
8424.20 - Spray guns and similar appliances LVC 40% or CTSH
8424.30 - Steam or sand blasting machines and LVC 40% or CTSH
similar jet projecting machines
- Other appliances:
8424.81 -- Agricultural or horticultural LVC 40% or CTSH
84.32 Agricultural, horticultural or
forestry machinery for soil preparation
or cultivation; lawn or sports-ground
rollers.
8432.10 - Ploughs LVC 40% or CTSH
- Harrows, scarifiers, cultivators,
weeders and hoes:
8432.21 -- Disc harrows LVC 40% or CTSH
8432.30 - Seeders, planters and transplanters LVC 40% or CTSH
8432.40 - Manure spreaders and fertilizer and LVC 40% or CTSH
distributors
8432.80 - Other machinery LVC 40% or CTSH
84.33 Harvesting or threshing machinery,
including straw or fodder balers; grass
or hay mowers; machines for cleaning,
sorting or grading eggs, fruit or other
agricultural produce, other than
machinery of heading 84.37.
- Mowers for lawns, parks or
sports-grounds:
8433.11 -- Powered, with the cutting device LVC 40% or CTSH
rotating in a horizontal plane
8433.20 - Other mowers, including cutter bars LVC 40% or CTSH
for tractor mounting
8433.30 - Other haymaking machinery LVC 40% or CTSH
8433.40 - Straw or fodder balers, including LVC 40% or CTSH
pick-up balers
- Other harvesting machinery; threshing
machinery:
755
8433.51 -- Combine harvester-threshers LVC 40% or CTSH
8433.52 -- Other threshing machinery LVC 40% or CTSH
8433.53 -- Root or tuber harvesting machines LVC 40% or CTSH
8433.60 - Machines for cleaning, sorting or LVC 40% or CTSH
grading eggs, fruit or other
agricultural produce
84.34 Milking machines and dairy machinery.
8434.10 - Milking machines LVC 40% or CTSH
8434.20 - Dairy machinery LVC 40% or CTSH
84.35 Presses, crushers and similar machinery
used in the manufacture of wine, cider,
fruit juices or similar beverages.
8435.10 - Machinery LVC 40% or CTSH
84.36 Other agricultural, horticultural,
forestry, poultry-keeping or
bee-keeping machinery, including
germination plant fitted with
mechanical or thermal equipment;
poultry incubators and brooders.
8436.10 - Machinery for preparing animal LVC 40% or CTSH
feeding stuffs
- Poultry-keeping machinery; poultry
incubators and brooders:
8436.21 -- Poultry incubators and brooders LVC 40% or CTSH
84.37 Machines for cleaning, sorting or
grading seed, grain or dried leguminous
vegetables; machinery used in the
milling industry or for the working of
cereals or dried leguminous vegetables,
other than farm-type machinery.
8437.10 - Machines for cleaning, sorting or LVC 40% or CTSH
grading seed, grain or dried leguminous
vegetables
84.38 Machinery not specified or included
elsewhere in this Chapter, for the
industrial preparation or manufacture
of food or drink, other than machinery
for the extraction or preparation of
animal or fixed vegetable fats or oils.
8438.10 - Bakery machinery and machinery for the LVC 40% or CTSH
manufacture of macaroni, spaghetti or
similar products
8438.20 - Machinery for the manufacture of LVC 40% or CTSH
confectionary, cocoa or chocolate
8438.30 - Machinery for sugar manufacture LVC 40% or CTSH
8438.40 - Brewery machinery LVC 40% or CTSH
8438.50 - Machinery for the preparation of meat LVC 40% or CTSH
or poultry
756
8438.60 - Machinery for the preparation of LVC 40% or CTSH
fruits, nuts or vegetables
84.39 Machinery for making pulp of fibrous
cellulosic material or for making or
finishing paper or paperboard.
8439.10 - Machinery for making pulp of fibrous LVC 40% or CTSH
cellulosic material
8439.20 - Machinery for making paper or LVC 40% or CTSH
paperboard
8439.30 - Machinery for finishing paper or LVC 40% or CTSH
paperboard
84.40 Book-binding machinery, including
book-sewing machines.
84.41 Other machinery for making up paper
pulp, paper or paper board, including
cutting machines of all kinds.
8441.10 - Cutting machines LVC 40% or CTSH
8441.20 - Machines for making bags, sacks or LVC 40% or CTSH
envelopes
8441.30 - Machines for making cartons, boxes, LVC 40% or CTSH
cases, tubes, drums or similar
containers, other than by molding
8441.40 - Machines for molding articles in paper LVC 40% or CTSH
pulp, paper or paperboard
84.42 Machinery, apparatus and equipment
(other than the machine-tools of
headings 84.56 to 84.65) for preparing
or making plates, cylinders or other
printing components; plates, cylinders
or other printing components; plates,
cylinders and other printing
components; plates, cylinders and
lithographic stones, prepared for
printing purposes (for example, planed,
grained or polished).
8442.30 - Machinery, apparatus and equipment LVC 40% or CTSH
84.43 Printing machinery used for printing by
means of plates, cylinders and other
printing components of heading 84.42;
other printers, copying machines and
facsimile machines, whether or not
combined; parts and accessories
thereof.
- Printing machinery used for printing
by means of plates, cylinders and other
printing components of heading 84.42:
8443.11 -- Offset printing machinery, reel-fed LVC 40% or CTSH
8443.12 -- Offset printing machinery, LVC 40% or CTSH
sheet-fed, office type (using sheets
757
with one side not exceeding 22 cm and
the other side not exceeding 36 cm in
the unfolded state)
8443.13 -- Other offset printing machinery LVC 40% or CTSH
8443.14 -- Letterpress printing machinery, reel LVC 40% or CTSH
fed, excluding flexographic printing
8443.15 -- Letterpress printing machinery, LVC 40% or CTSH
other than reel fed, excluding
flexographic printing
8443.16 -- Flexographic printing machinery LVC 40% or CTSH
8443.17 -- Gravure printing machinery LVC 40% or CTSH
- Other printers, copying machines and
facsimile machines, whether or not
combined:
8443.31 -- Machines which perform two or more LVC 40% or CTSH
of the functions of printing, copying
or facsimile transmission, capable of
connecting to an automatic data
processing machine or to a network
8443.32 -- Other, capable of connecting to an LVC 40% or CTSH
automatic data processing machine or to
a network
84.48 Auxiliary machinery for use with
machines of heading 84.44, 84.45, 84.46
or 84.47 (for example, dobbies,
Jacquards, automatic stop motions,
shuttle changing mechanisms); parts and
accessories suitable for use solely or
principally with the machines of this
heading or of heading 84.44, 84.45,
84.46 or 84.47 (for example, spindles
and spindle flyers, card clothing,
combs, extruding nipples, shuttles,
healds and heald-frames, hosiery
needles).
- Auxiliary machinery for machines of
heading 84.44, 84.45, 84.46 or 84.47:
8448.11 -- Dobbies and Jacquards; card LVC 40% or CTSH
reducing, copying, punching or
assembling machines for use therewith
84.50 Household or laundry-type washing
machines, including machines which both
wash and dry.
- Machines, each of a dry linen capacity
not exceeding 10 kg:
8450.11 -- Fully-automatic machines LVC 40% or CTSH
8450.12 -- Other machines, with built-in LVC 40% or CTSH
centrifugal drier
758
8450.20 - Machines, each of a dry linen capacity LVC 40% or CTSH
exceeding 10 kg
84.51 Machinery (other than machines of
heading 84.50) for washing, cleaning,
wringing, drying, ironing, pressing
(including fusing presses), bleaching,
dyeing, dressing, finishing, coating or
impregnating textile yarns, fabrics or
made up textile articles and machines
for applying the paste to the base
fabric or other support used in the
manufacture of floor coverings such as
linoleum; machines for reeling,
unreeling, folding, cutting or pinking
textile fabrics.
8451.10 - Dry-cleaning machines LVC 40% or CTSH
- Drying machines:
8451.21 -- Each of a dry linen capacity not LVC 40% or CTSH
exceeding 10 kg
8451.30 - Ironing machines and presses LVC 40% or CTSH
(including fusing presses)
8451.40 - Washing, bleaching or dyeing machines LVC 40% or CTSH
8451.50 - Machines for reeling, unreeling, LVC 40% or CTSH
folding, cutting or pinking textile
fabrics
84.52 Sewing machines, other than book-sewing
machines of heading 84.40; furniture
bases and covers specially designed for
sewing machines; sewing machine
needles.
8452.10 - Sewing machines of the household type LVC 40% or CTSH
- Other sewing machines:
8452.21 -- Automatic units LVC 40% or CTSH
8452.30 - Sewing machine needles LVC 40% or CTSH
8452.40 - Furniture, bases and covers for sewing LVC 40% or CTSH
machines and parts thereof
84.53 Machinery for preparing, tanning or
working hides, skins or leather or for
making or repairing footwear or other
articles of hides, skins or leather,
other than sewing machines.
8453.10 - Machinery for preparing, tanning or LVC 40% or CTSH
working hides, skins or leather
8453.20 - Machinery for making or repairing LVC 40% or CTSH
footwear
84.54 Converters, ladles, ingot molds and
casting machines, of a kind used in
metallurgy or in metal foundries.
759
8454.10 - Converters LVC 40% or CTSH
8454.20 - Ingot molds and ladles LVC 40% or CTSH
8454.30 - Casting machines LVC 40% or CTSH
84.55 Metal-rolling mills and rolls therefor.
8455.10 - Tube mills LVC 40% or CTSH
- Other rolling mills:
8455.21 -- Hot or combination hot and cold LVC 40% or CTSH
8455.22 -- Cold LVC 40% or CTSH
8455.30 - Rolls for rolling mills LVC 40% or CTSH
84.67 Tools for working in the hand,
pneumatic, hydraulic or with
self-contained electric or
non-electric motor.
- Pneumatic:
8467.11 -- Rotary type (including combined LVC 40% or CTSH
rotary-percussion)
- With self-contained electric motor:
8467.21 -- Drills of all kinds LVC 40% or CTSH
8467.22 -- Saws LVC 40% or CTSH
- Other tools:
8467.81 -- Chain saws LVC 40% or CTSH
84.68 Machinery and apparatus for soldering,
brazing or welding, whether or not
capable of cutting, other than those of
heading 85.15; gas-operated surface
tempering machines and appliances.
8468.10 - Hand-held blow pipes LVC 40% or CTSH
8468.20 - Other gas-operated machinery and LVC 40% or CTSH
apparatus
8468.80 - Other machinery and apparatus LVC 40% or CTSH
84.73 Parts and accessories (other than
covers, carrying cases and the like)
suitable for use solely or principally
with machines of headings 84.69 to
84.72.
8473.30 - Parts and accessories of the machines LVC 40% or CTH
of heading 84.71 except from
heading 85.42.
84.74 Machinery for sorting, screening,
separating, washing, crushing,
grinding, mixing or kneading earth,
stone, ores or other mineral
substances, in solid (including powder
or paste) form; machinery for
agglomerating, shaping or molding solid
mineral fuels, ceramic paste,
unhardened cements, plastering
materials or other mineral products in
powder or paste form; machines for
760
forming foundry molds of sand.
8474.10 - Sorting, screening, separating or LVC 40% or CTSH
washing machines
8474.20 - Crushing or grinding machines LVC 40% or CTSH
- Mixing or kneading machines:
8474.31 -- Concrete or mortar mixers LVC 40% or CTSH
8474.32 -- Machines for mixing mineral LVC 40% or CTSH
substances with bitumen
84.75 Machines for assembling electric or
electronic lamps, tubes or valves or
flashbulbs, in glass envelopes;
machines for manufacturing or hot
working glass or glassware.
8475.10 - Machines for assembling electric or LVC 40% or CTSH
electronic lamps, tubes or valves or
flashbulbs, in glass envelopes
- Machines for manufacturing or hot
working glass or glassware:
8475.21 -- Machines for making optical fibers LVC 40% or CTSH
and performs thereof
84.76 Automatic goods-vending machines (for
example, postage stamp, cigarette, food
or beverage machines), including
money-changing machines.
- Automatic beverage-vending machines:
8476.21 -- Incorporating heating or LVC 40% or CTSH
refrigerating devices
- Other machines:
8476.81 -- Incorporating heating or LVC 40% or CTSH
refrigerating devices
84.77 Machinery for working rubber or
plastics or for the manufacture of
products from these materials, not
specified or included elsewhere in this
Chapter.
8477.10 - injection-molding machines LVC 40% or CTSH
8477.20 - Extruders LVC 40% or CTSH
8477.30 - Blow molding machines LVC 40% or CTSH
8477.40 - Vacuum molding machines and other LVC 40% or CTSH
thermoforming machines
- Other machinery for molding or
otherwise forming:
8477.51 -- For molding or retreading pneumatic LVC 40% or CTSH
tires or for molding or otherwise
forming inner tubes
761
84.78 Machinery for preparing or making up
tobacco, not specified or included
elsewhere in this Chapter.
84.79 Machines and mechanical appliances
having individual functions, not
Chapter.
8479.10 - Machinery for public works, building LVC 40% or CTSH
or the like
8479.20 - Machinery for the extraction or LVC 40% or CTSH
preparation of animal or fixed
vegetable fats or oils
8479.30 - Presses for the manufacture of LVC 40% or CTSH
particle board or fiber building board
of wood or other ligneous materials and
other machinery for treating wood or
cork
8479.40 - Rope or cable-making machines LVC 40% or CTSH
8479.50 - Industrial robots, not elsewhere LVC 40% or CTSH
specified or included
8479.60 - Evaporative air coolers LVC 40% or CTSH
- Other machines and mechanical
appliances:
8479.81 -- For treating metal, including LVC 40% or CTSH
electric wire coil-winders
8479.82 -- Mixing, kneading, crushing, LVC 40% or CTSH
grinding, screening, sifting,
homogenizing, emulsifying or stirring
machines
84.81 Taps, cocks, valves and similar
appliances for pipes, boiler shells,
tanks, vats or the like, including
pressure-reducing valves and
thermostatically controlled valves.
8481.10 - Pressure-reducing valves LVC 40% or CTSH
8481.20 - Valves for oleohydraulic or pneumatic LVC 40% or CTSH
transmissions
8481.30 - Check (nonreturn) valves LVC 40% or CTSH
8481.40 - Safety or relief valves LVC 40% or CTSH
8481.80 - Other appliances LVC 40% or CTSH
84.82 Ball or roller bearings.
8482.10 - Ball bearings LVC 40% or CTSH
8482.20 - Tapered roller bearings, including LVC 40% or CTSH
cone and tapered roller assemblies
8482.30 - Spherical roller bearings LVC 40% or CTSH
8482.40 - Needle roller bearings LVC 40% or CTSH
8482.50 - Other cylindrical roller bearings LVC 40% or CTSH
8482.80 - Other, including combined ball/roller LVC 40% or CTSH
bearings
84.83 Transmission shafts (including cam
762
shafts and crank shafts) and cranks;
bearing housings and plain shaft
bearings; gears and gearing; ball or
roller screws; gear boxes and other
speed changers, including torque
converters; flywheels and pulleys,
including pulley blocks; clutches and
shaft couplings (including universal
joints).
8483.10 - Transmission shafts (including cam LVC 40% or CTSH
shafts and crank shafts) and cranks
8483.20 - Bearing housings, incorporating ball LVC 40% or CTSH
or roller bearings
8483.30 - Bearing housings, not incorporating LVC 40% or CTSH
ball or roller bearings; plain shaft
bearings
8483.40 - Gears and gearing, other than toothed LVC 40% or CTSH
wheels, chain sprockets and other
transmission elements presented
separately; ball or roller screws; gear
boxes and other speed changers,
including torque converters
8483.50 - Flywheels and pulleys, including LVC 40% or CTSH
pulley blocks
8483.60 - Clutches and shaft couplings LVC 40% or CTSH
(including universal joints)
84.84 Gaskets and similar joints of metal LVC 40% or CC
sheeting combined with other material
or of two or more layers of metal; sets
or assortments of gaskets and similar
joints, dissimilar in composition, put
up in pouches, envelopes or similar
packings; mechanical seals.
84.86 Machines and apparatus of a kind used
solely or principally for the
manufacture of semiconductor boules or
wafers, semiconductor devices,
electronic integrated circuits or flat
panel displays; machines and apparatus
specified in Note 9 (C) to this Chapter;
parts and accessories.
8486.10 - Machines and apparatus for the LVC 40% or CTSH
manufacture of boules or wafers
manufacture of semiconductor devices or
of electronic integrated circuits
manufacture of flat panel displays
8486.40 - Machines and apparatus specified in LVC 40% or CTSH
Note 9 (C) to this Chapter
Chapter 85 Electrical machinery and equipment and
parts thereof; sound recorders and
763
reproducers, television image and sound
recorders and reproducers, and parts
and accessories of such articles
85.02 Electric generating sets and rotary
converters.
- Other generating sets:
8502.31 -- Wind-powered LVC 40% or CTSH
8502.40 - Electric rotary converters LVC 40% or CTSH
85.04 Electrical transformers, static
converters (for example, rectifiers)
and inductors.
8504.10 - Ballasts for discharge lamps or tubes LVC 40% or CTSH
- Liquid dielectric transformers:
8504.21 -- Having a power handling capacity not LVC 40% or CTSH
exceeding 650 kVA
8504.22 -- Having a power handling capacity LVC 40% or CTSH
exceeding 650 kVA but not exceeding
10,000 kVA
exceeding 10,000 kVA
- Other transformers:
8504.31 -- Having a power handling capacity not LVC 40% or CTSH
exceeding 1 kVA
exceeding 1 kVA but not exceeding 16 kVA
exceeding 16 kVA but not exceeding 500
kVA
exceeding 500 kVA
8504.40 - Static converters LVC 40% or CTSH
8504.50 - Other inductors LVC 40% or CTSH
85.05 Electro-magnets; permanent magnets and
articles intended to become permanent
magnets after magnetization;
electro-magnetic or permanent magnetic
chucks, clamps and similar holding
devices; electro-magnetic couplings,
clutches and brakes; electro-magnetic
lifting heads.
- Permanent magnets and articles
intended to become permanent magnets
after magnetization:
8505.11 -- Of metal LVC 40% or CTSH
8505.20 - Electro-magnetic couplings, clutches LVC 40% or CTSH
and brakes
85.06 Primary cells and primary batteries.
8506.10 - Manganese dioxide LVC 40% or CTSH
8506.30 - Mercuric oxide LVC 40% or CTSH
8506.40 - Silver oxide LVC 40% or CTSH
8506.50 - Lithium LVC 40% or CTSH
764
8506.60 - Air-zinc LVC 40% or CTSH
8506.80 - Other primary cells and primary LVC 40% or CTSH
batteries
85.07 Electric accumulators, including LVC 40% or CTSH
separators therefor, whether or not
rectangular (including square).
85.08 Vacuum cleaners.
- With self-contained electric motor:
8508.11 -- Of a power not exceeding 1,500 W and LVC 40% or CTSH
having a dust bag or other receptacle
capacity not exceeding 20 l
8508.60 - Other vacuum cleaners LVC 40% or CTSH
85.09 Electro-mechanical domestic
appliances, with self-contained
electric motor, other than vacuum
cleaners of heading 85.08.
8509.40 - Food grinders and mixers; fruit or LVC 40% or CTSH
vegetable juice extractors
8509.80 - Other appliances LVC 40% or CTSH
85.10 Shavers, hair clippers and
hair-removing appliances, with
self-contained electric motor.
8510.10 - Shavers LVC 40% or CTSH
8510.20 - Hair clippers LVC 40% or CTSH
8510.30 - Hair-removing appliances LVC 40% or CTSH
85.11 Electrical ignition or starting
equipment of a kind used for
spark-ignition or
compression-ignition internal
combustion engines (for example,
ignition magnetos, magneto-dynamos,
ignition coils, sparking plugs and glow
plugs, starter motors); generators (for
example, dynamos, alternators) and
cut-outs of a kind used in conjunction
with such engines.
8511.10 - Sparking plugs LVC 40% or CTSH
8511.20 - Ignition magnetos; magneto-dynamos; LVC 40% or CTSH
magnetic flywheels
8511.30 - Distributors; ignition coils LVC 40% or CTSH
8511.40 - Starter motors and dual purpose LVC 40% or CTSH
starter-generators
8511.50 - Other generators LVC 40% or CTSH
8511.80 - Other equipment LVC 40% or CTSH
85.12 Electrical lighting or signaling
equipment (excluding articles of
heading 85.39), windscreen wipers,
defrosters and demisters, of a kind used
for cycles or motor vehicles.
8512.10 - Lighting or visual signaling LVC 40% or CTSH
equipment of a kind used on bicycles
765
8512.20 - Other lighting or visual signaling LVC 40% or CTSH
equipment
8512.30 - Sound signaling equipment LVC 40% or CTSH
8512.40 - Windscreen wipers, defrosters and LVC 40% or CTSH
demisters
85.13 Portable electric lamps designed to
function by their own source of energy
(for example, dry batteries,
accumulators, magnetos), other than
lighting equipment of heading 85.12.
8513.10 - Lamps LVC 40% or CTSH
85.14 Industrial or laboratory electric
furnaces and ovens (including those
functioning by induction or dielectric
loss); other industrial or laboratory
equipment for the heat treatment of
materials by induction or dielectric
loss.
8514.10 - Resistance heated furnaces and ovens LVC 40% or CTSH
8514.20 - Furnaces and ovens functioning by LVC 40% or CTSH
induction or dielectric loss
8514.30 - Other furnaces and ovens LVC 40% or CTSH
8514.40 - Other equipment for the heat treatment LVC 40% or CTSH
of materials by induction or dielectric
loss
85.15 Electric (including electrically
heated gas), laser or other light or
photon beam, ultrasonic, electron beam,
magnetic pulse or plasma arc soldering,
brazing or welding machines and
apparatus, whether or not capable of
cutting; electric machines and
apparatus for hot spraying of metals or
cermets.
- Brazing or soldering machines and
apparatus:
8515.11 -- Soldering irons and guns LVC 40% or CTSH
- Machines and apparatus for resistance
welding of metals:
8515.21 -- Fully or partly automatic LVC 40% or CTSH
- Machines and apparatus for arc
(including plasma arc) welding of
metal:
8515.31 -- Fully or partly automatic LVC 40% or CTSH
8515.80 - Other machines and apparatus LVC 40% or CTSH
85.16 Electric instantaneous or storage water
heaters and immersion heaters; electric
space heating apparatus and soil
heating apparatus; electro-thermic
766
hair-dressing apparatus (for example,
hair dryers, hair curlers, curling tong
heaters) and hand dryers; electric
smoothing irons; other electro-thermic
appliances of a kind used for domestic
purpose; electric heating resistors,
8516.10 - Electric instantaneous or storage LVC 40% or CTSH
water heaters and immersion heaters
- Electric space heating apparatus and
electric soil heating apparatus:
8516.21 -- Storage heating radiators LVC 40% or CTSH
- Electric-thermic hair-dressing or
hand-drying apparatus:
8516.31 -- Hair dryers LVC 40% or CTSH
8516.32 -- Other hair-dressing apparatus LVC 40% or CTSH
8516.33 -- Hand-drying apparatus LVC 40% or CTSH
8516.40 - Electric smoothing irons LVC 40% or CTSH
8516.50 - Microwave ovens LVC 40% or CTSH
8516.60 - Other ovens; cookers, cooking plates, LVC 40% or CTSH
boiling rings, grillers and roasters
- Other electric-thermic appliances:
8516.71 -- Coffee or tea makers LVC 40% or CTSH
8516.72 -- Toasters LVC 40% or CTSH
8516.80 - Electric heating resistors LVC 40% or CTSH
85.17 Telephone sets, including telephones
for cellular networks or for other
wireless networks; other apparatus for
the transmission or reception of voice,
images or other data, including
apparatus for communication in a wired
or wireless network (such as a local or
wide area network), other than
transmission or reception apparatus of
heading 84.43, 85.25, 85.27 or 85.28.
- Telephone sets, including telephones
for cellular networks or for other
wireless networks:
8517.11 -- Line telephone sets with cordless LVC 40% or CTSH
handsets
8517.12 -- Telephones for cellular networks or LVC 40% or CTSH
for other wireless networks
- Other apparatus for transmission or
reception of voice, images or other
data, including apparatus for
communication in a wired or wireless
network (such as a local or wide area
network):
8517.61 -- Base stations LVC 40% or CTSH
767
8517.62 -- Machines for the reception, LVC 40% or CTSH
conversion and transmission or
regeneration of voice, images or other
data, including switching and routing
apparatus
85.18 Microphones and stands therefor,
loudspeakers, whether or not mounted in
their enclosures; headphones and
earphones, whether or not combined with
a microphone, and sets consisting of a
microphone and one or more
loudspeakers; audio-frequency
electric amplifiers; electric sound
amplifier sets.
8518.10 - Microphone and stands therefor LVC 40% or CTSH
- Loudspeakers, whether or not mounted
in their enclosures:
8518.21 -- Single loudspeakers, mounted in LVC 40% or CTSH
their enclosures
8518.22 -- Multiple loudspeakers, mounted in LVC 40% or CTSH
the same enclosure
8518.30 - Headphones and earphones, whether or LVC 40% or CTSH
not combined with a microphone, and sets
consisting of a microphone and one or
more loudspeakers
8518.40 - Audio-frequency electric amplifiers LVC 40% or CTSH
8518.50 - Electric sound amplifier sets LVC 40% or CTSH
85.23 Discs, tapes, solid-state non-volatile
storage devices, “smart cards” and
other media for the recording of sound
or of other phenomena, whether or not
recorded, including matrices and
masters for the production of discs, but
excluding products of Chapter 37.
- Semiconductor media:
8523.51 -- Solid-state non-volatile storage LVC 40% or CTH
devices except from
heading 85.42.
8523.52 -- “Smart cards” LVC 40% or CTH
except from
heading 85.42.
8523.59 -- Other LVC 40% or CTH
except from
heading 85.42.
85.30 Electric signaling, safety or traffic
control equipment for railways,
tramways, roads, inland waterways,
parking facilities, port installations
or airfields (other than those of
heading 86.08).
768
8530.10 - Equipment for railways or tramways LVC 40% or CTSH
8530.80 - Other equipment LVC 40% or CTSH
85.31 Electric sounds or visual signaling
apparatus (for example, bells, sirens,
indicator panels, burglar or fire
alarms), other than those of heading
85.12 or 85.30.
8531.10 - Burglar or fire alarms and similar LVC 40% or CTSH
apparatus
8531.20 - Indicator panels incorporating liquid LVC 40% or CTSH
crystal devices (LCD) or light emitting
diodes (LED)
8531.80 - Other apparatus LVC 40% or CTSH
85.32 Electrical capacitors, fixed, variable
or adjustable (pre-set).
8532.10 - Fixed capacitors designed for use in LVC 40% or CTSH
50/60 Hz circuits and having a reactive
power handling capacity of not less than
0.5 kvar (power capacitors)
- Other fixed capacitors:
8532.21 -- Tantalum LVC 40% or CTSH
8532.22 -- Aluminum electrolytic LVC 40% or CTSH
8532.23 -- Ceramic dielectric, single layer LVC 40% or CTSH
8532.24 -- Ceramic dielectric, multilayer LVC 40% or CTSH
8532.25 -- Dielectric of paper or plastics LVC 40% or CTSH
8532.30 - Variable or adjustable (pre-set) LVC 40% or CTSH
capacitors
85.33 Electrical resistors (including
rheostats and potentiometers), other
than heating resistors.
8533.10 - Fixed carbon resistors, composition LVC 40% or CTSH
or film types
- Other fixed resistors:
8533.21 -- For a power handling capacity not LVC 40% or CTSH
exceeding 20 W
- Wirewound variable resistors,
including rheostats and
potentiometers:
8533.31 -- For a power handling capacity not LVC 40% or CTSH
exceeding 20 W
8533.40 - Other variable resistors, including LVC 40% or CTSH
rheostats and potentiometers
85.36 Electrical apparatus for switching or LVC 40% or CTSH
protecting electrical circuits, or for
making connections to or in electrical
circuits (for example, switches,
relays, fuses, surge suppressors,
plugs, sockets, lamp-holders and other
connectors, junction boxes), for a
769
voltage not exceeding 1,000 volts;
connectors for optical fibers, optical
fiber bundles or cables.
85.39 Electric filament or discharge lamps,
including sealed beam lamp units and
ultra-violet or infra-red lamps;
arc-lamps.
8539.10 - Sealed beam lamp units LVC 40% or CTSH
- Other filament lamps, excluding
ultra-violet or infra-red lamps:
8539.21 -- Tungsten halogen LVC 40% or CTSH
8539.22 -- Other, of a power not exceeding LVC 40% or CTSH
200 W and for a voltage exceeding
100 V
- Discharge lamps, other than
ultra-violet lamps:
8539.31 -- Fluorescent, hot cathode LVC 40% or CTSH
8539.32 -- Mercury or sodium vapor lamps; metal LVC 40% or CTSH
halide lamps
- Ultra-violet or infra-red lamps;
arc-lamps:
8539.41 -- Arc-lamps LVC 40% or CTSH
85.40 Thermionic, cold cathode or
photo-cathode valves and tubes (for
example, vacuum or vapor or gas filled
valves and tubes, mercury arc
rectifying valves and tubes,
cathode-ray tubes, television camera
tubes).
- Cathode-ray television picture tubes,
including video monitor cathode-ray
tubes:
8540.11 -- Color LVC 40% or CTSH
8540.12 -- Black and white or other monochrome LVC 40% or CTSH
8540.20 - Television camera tubes; image LVC 40% or CTSH
converters and intensifiers; other
photo-cathode tubes
8540.40 - Data/graphic display tubes, color, LVC 40% or CTSH
with a phosphor dot screen pitch smaller
than 0.4 mm
8540.50 - Data/graphic display tubes, black and LVC 40% or CTSH
white or other monochrome
8540.60 - Other cathode-ray tubes LVC 40% or CTSH
- Microwave tubes (for example,
magnetrons, klystrons, traveling wave
tubes, carcinotrons), excluding
grid-controlled tubes:
8540.71 -- Magnetrons LVC 40% or CTSH
8540.72 -- Klystrons LVC 40% or CTSH
770
- Other valves and tubes:
8540.81 -- Receiver or amplifier valves and LVC 40% or CTSH
tubes
85.41 Diodes, transistors and similar
semiconductor devices; photosensitive
semiconductor devices, including
photovoltaic cells whether or not
assembled in modules or made up into
panels; light emitting diodes; mounted
piezo-electric crystals.
8541.10 - Diodes, other than photosensitive or LVC 40% or CTSH
light emitting diodes
- Transistors, other than
photosensitive transistors:
8541.21 -- With a dissipation rate of less than LVC 40% or CTSH
1 W
8541.30 - Thyristors, diacs and triacs, other LVC 40% or CTSH
than photosensitive devices
8541.40 - Photosensitive semiconductor LVC 40% or CTSH
devices, including photovoltaic cells
whether or not assembled in modules or
made up into panels; light emitting
diodes
8541.50 - Other semiconductor devices LVC 40% or CTSH
8541.60 - Mounted piezo-electric crystals LVC 40% or CTSH
85.42 Electronic integrated circuits.
- Electronic integrated circuits:
8542.31 -- Processors and controllers, whether LVC 40% or CTSH
or not combined with memories, except from
converters, logic circuits, subheading
amplifiers, clock and timing circuits, 8542.32
or other circuits through
8542.39.
8542.32 -- Memories LVC 40% or CTSH
except from
subheading
8542.31,
8542.33 or
8542.39.
8542.33 -- Amplifiers LVC 40% or CTSH
except from
subheading
8542.31,
8542.32 or
8542.39.
except from
subheading
8542.31
771
through
8542.33.
85.43 Electrical machines and apparatus,
having individual functions, not
Chapter.
8543.10 - Particle accelerators LVC 40% or CTSH
8543.20 - Signal generators LVC 40% or CTSH
8543.30 - Machines and apparatus for LVC 40% or CTSH
electroplating, electrolysis or
electrophoresis
8543.70 - Other machines and apparatus LVC 40% or CTSH
85.48 Waste and scrap of primary cells,
primary batteries and electric
accumulators; spent primary cells,
spent primary batteries and spent
electric accumulators; electrical
parts of machinery or apparatus, not
Chapter.
8548.10 - Waste and scrap of primary cells, WO
primary batteries and electric
accumulators; spent primary cells,
spent primary batteries and spent
electric accumulators
Section XVII Vehicles, aircraft, vessels and associated transport equipment (Chapter
86-89)
Chapter 87 Vehicles other than railway or tramway
rolling-stock, and parts and
accessories thereof
87.02 Motor vehicles for the transport of ten LVC 40%
or more persons, including the driver.
87.03 Motor cars and other motor vehicles LVC 40%
principally designed for the transport
of persons (other than those of heading
87.02), including station wagons and
racing cars.
87.04 Motor vehicles for the transport of LVC 40%
goods.
87.05 Special purpose motor vehicles, other LVC 40%
than those principally designed for the
transport of persons or goods (for
example, breakdown lorries, crane
lorries, fire fighting vehicles,
concrete-mixer lorries, road sweeper
lorries, spraying lorries, mobile
workshops, mobile radiological units).
87.06 8706.00 Chassis fitted with engines, for the LVC 40%
motor vehicles of headings 87.01 to
87.05.
87.07 Bodies (including cabs), for the motor LVC 40%
vehicles of headings 87.01 to 87.05.
772
87.09 Works trucks, self-propelled, not LVC 40%
fitted with lifting or handling
equipment, of the type used in
factories, warehouses, dock areas or
airports for short distance transport
of goods; tractors of the type used on
railway station platforms; parts of the
foregoing vehicles.
87.10 8710.00 Tanks and other armored fighting LVC 40%
vehicles, motorized, whether or not
fitted with weapons, and parts of such
vehicles.
87.16 Trailers and semi-trailers; other
vehicles, not mechanically propelled;
parts thereof.
8716.10 - Trailers and semi-trailers of the LVC 40% or CTSH
caravan type, for housing or camping
8716.20 - Self-loading or self-unloading LVC 40% or CTSH
trailers and semi-trailers for
agricultural purposes
- Other trailers and semi-trailers for
the transport of goods:
8716.31 -- Tanker trailers and tanker LVC 40% or CTSH
semi-trailers
8716.40 - Other trailers and semi-trailers LVC 40% or CTSH
8716.80 - Other vehicles LVC 40% or CTSH
Chapter 89 Ships, boats and floating structures LVC 40% or CC
Section XVIII Optical, photographic, cinematographic, measuring, checking,
precision, medical or surgical instruments and apparatus; clocks and watches; musical
instruments; parts and accessories thereof (Chapter 90-92)
Chapter 90 Optical, photographic,
cinematographic, measuring, checking,
precision, medical or surgical
instruments and apparatus; parts and
accessories thereof
90.01 Optical fibers and optical fiber LVC 40% or CC
bundles; optical cables other than
those of heading 85.44; sheets and
plates of polarizing material; lenses
(including contact lenses), prisms,
mirrors and other optical elements, of
any material, unmounted other than such
elements of glass not optically worked.
90.03 Frames and mountings for spectacles,
goggles or the like, and parts thereof.
- Frames and mountings:
9003.11 -- Of plastics LVC 40% or CTSH
9003.19 -- Of other materials LVC 40% or CTSH
90.05 Binoculars, monoculars, other optical
telescopes, and mountings therefor;
other astronomical instruments and
773
mountings therefor, but not including
instruments for radio-astronomy.
9005.10 - Binoculars LVC 40% or CTSH
9005.80 - Other instruments LVC 40% or CTSH
90.06 Photographic (other than
cinematographic) cameras;
photographic flashlight apparatus and
flashbulbs other than discharge lamps
of heading 85.39.
9006.10 - Cameras of a kind used for preparing LVC 40% or CTSH
printing plates or cylinders
9006.30 - Cameras specially designed for LVC 40% or CTSH
underwater use, for aerial survey or for
medical or surgical examination of
internal organs; comparison cameras for
forensic or criminological purposes
9006.40 - Instant print cameras LVC 40% or CTSH
- Other cameras:
9006.51 -- With a through-the-lens viewfinder LVC 40% or CTSH
(single lens reflex (SLR)), for roll
film of a width not exceeding 35 mm
9006.52 -- Other, for roll film of a width less LVC 40% or CTSH
than 35 mm
9006.53 -- Other, for roll film of a width of LVC 40% or CTSH
35 mm
- Photographic flashlight apparatus and
flashbulbs:
9006.61 -- Discharge lamp (“electronic”) LVC 40% or CTSH
flashlight apparatus
90.07 Cinematographic cameras and
projectors, whether or not
incorporating sound recording or
reproducing apparatus.
- Cameras:
9007.11 -- For films of less than 16 mm width LVC 40% or CTSH
or for double-8 mm film
9007.20 - Projectors LVC 40% or CTSH
90.08 Image projectors, other than
cinematographic; photographic (other
than cinematographic) enlargers and
reducers.
9008.10 - Slide projectors LVC 40% or CTSH
9008.20 - Microfilm, microfiche or other LVC 40% or CTSH
microform readers, whether or not
capable of producing copies
9008.30 - Other image projectors LVC 40% or CTSH
9008.40 - Photographic (other than LVC 40% or CTSH
cinematographic) enlargers and
reducers
774
90.10 Apparatus and equipment for
photographic (including
cinematographic) laboratories, not
Chapter; negatoscopes; projection
screens.
9010.10 - Apparatus and equipment for LVC 40% or CTSH
automatically developing photographic
(including cinematographic) film or
paper in rolls or for automatically
exposing developed film to rolls of
photographic paper
9010.50 - Other apparatus and equipment for LVC 40% or CTSH
photographic (including
cinematographic) laboratories;
negatoscopes
9010.60 - Projection screens LVC 40% or CTSH
90.11 Compound optical microscopes,
including those for photomicrography,
cinephotomicrography or
microprojection.
9011.10 - Stereoscopic microscopes LVC 40% or CTSH
9011.20 - Other microscopes, for LVC 40% or CTSH
photomicrography,
cinephotomicrography or
micropeojection
9011.80 - Other microscopes LVC 40% or CTSH
90.12 Microscopes other than optical
microscopes; diffraction apparatus.
9012.10 - Microscopes other than optical LVC 40% or CTSH
microscopes; diffraction apparatus
90.13 Liquid crystal devices not constituting
articles provided for more specifically
in other headings; lasers, other than
laser diodes; other optical appliances
and instruments, not specified or
included elsewhere in this Chapter.
9013.10 - Telescope sights for fitting to arms; LVC 40% or CTSH
periscopes; telescopes designed to form
parts of machines, appliances,
instruments or apparatus of this
Chapter or Section XVI
9013.20 - Lasers, other than laser diodes LVC 40% or CTSH
9013.80 - Other devices, appliances and LVC 40% or CTSH
instruments
90.14 Direction finding compasses; other
navigational instruments and
appliances.
9014.10 - Direction finding compasses LVC 40% or CTSH
9014.20 - Instruments and appliances for LVC 40% or CTSH
aeronautical or space navigation (other
than compasses)
775
9014.80 - Other instruments and appliances LVC 40% or CTSH
90.15 Surveying (including
photogrammetrical surveying),
hydrographic, oceanographic,
hydrological, meteorological or
geophysical instruments and
appliances, excluding compasses;
rangefinders.
9015.10 - Rangefinders LVC 40% or CTSH
9015.20 - Theodolites and tachymeters LVC 40% or CTSH
(tacheometers)
9015.30 - Levels LVC 40% or CTSH
9015.40 - Photogrammetrical surveying LVC 40% or CTSH
instruments and appliances
9015.80 - Other instruments and appliances LVC 40% or CTSH
90.17 Drawing, marking-out or mathematical
calculating instruments (for example,
drafting machines, pantographs,
protractors, drawing sets, slide rules,
disc calculators); instruments for
measuring length, for use in the hand
(for example, measuring rods and tapes,
micrometers, calipers), not specified
or included elsewhere in this Chapter.
9017.10 - Drafting tables and machines, whether LVC 40% or CTSH
or not automatic
9017.20 - Other drawing, marking-out or LVC 40% or CTSH
mathematical calculating instruments
9017.30 - Micrometers, calipers and gauges LVC 40% or CTSH
90.18 Instruments and appliances used in
medical, surgical, dental or veterinary
sciences, including scintigraphic
apparatus, other electro-medical
apparatus and sight-testing
instruments.
9018.20 - Ultra-violet or infra-red ray LVC 40% or CTSH
apparatus
- Syringes, needles, catheters,
cannulae and the like:
9018.31 -- Syringes, with or without needles LVC 40% or CTSH
9018.32 -- Tubular metal needles and needles for LVC 40% or CTSH
sutures
90.22 Apparatus based on the use of X-rays or
of alpha, beta or gamma radiations,
whether or not for medical, surgical,
dental or veterinary uses, including
radiography or radiotherapy apparatus,
X-ray tubes and other X-ray generators,
high tension generators, control panels
and desks, screens, examination or
776
treatment tables, chairs and the like.
- Apparatus based on the use of X-rays,
whether or not for medical, surgical,
dental or veterinary uses, including
radiography or radiotherapy apparatus:
9022.12 -- Computed tomography apparatus LVC 40% or CTSH
9022.13 -- Other, for dental uses LVC 40% or CTSH
9022.14 -- Other, for medical, surgical or LVC 40% or CTSH
veterinary uses
9022.19 -- For other uses LVC 40% or CTSH
- Apparatus based on the use of alpha,
beta or gamma radiations, whether or not
for medical, surgical, dental or
veterinary uses, including radiography
or radiotherapy apparatus:
9022.21 -- For medical, surgical, dental or LVC 40% or CTSH
veterinary uses
9022.29 -- For other uses LVC 40% or CTSH
9022.30 - X-ray tubes LVC 40% or CTSH
90.24 Machines and appliances for testing the
hardness, strength, compressibility,
elasticity or other mechanical
properties of materials (for example,
metals, wood, textiles, paper,
plastics).
9024.10 - Machines and appliances for testing LVC 40% or CTSH
metals
9024.80 - Other machines and appliances LVC 40% or CTSH
90.25 Hydrometers and similar floating
instruments, thermometers,
pyrometers, barometers, hygrometers
and psychrometers, recording or not,
and any combination of these
instruments.
- Thermometers and pyrometers, not
combined with other instruments:
9025.11 -- Liquid-filled, for direct reading LVC 40% or CTSH
90.26 Instruments and apparatus for measuring
or checking the flow, level, pressure
or other variables of liquids or gases
(for example, flow meters, level
gauges, manometers, heat meters),
excluding instruments and apparatus of
heading 90.14, 90.15, 90.28 or 90.32.
9026.10 - For measuring or checking the flow or LVC 40% or CTSH
level of liquids
9026.20 - For measuring or checking pressure LVC 40% or CTSH
9026.80 - Other instruments or apparatus LVC 40% or CTSH
90.27 Instruments and apparatus for physical
or chemical analysis (for example,
777
polarimeters, refractometers,
spectrometers, gas or smoke analysis
apparatus); instruments and apparatus
for measuring or checking viscosity,
porosity, expansion, surface tension or
the like; instruments and apparatus for
measuring or checking quantities of
heat, sound or light (including
exposure meters); microtomes.
9027.10 - Gas or smoke analysis apparatus LVC 40% or CTSH
9027.20 - Chromatographs and electrophoresis LVC 40% or CTSH
instruments
9027.30 - Spectrometers, spectrophotometers LVC 40% or CTSH
and spectrographs using optical
radiations (UV, visible, IR)
9027.50 - Other instruments and apparatus using LVC 40% or CTSH
optical radiations (UV, visible, IR)
9027.80 - Other instruments and apparatus LVC 40% or CTSH
90.28 Gas, liquid or electricity supply or
production meters, including
calibrating meters therefor.
9028.10 - Gas meters LVC 40% or CTSH
9028.20 - Liquid meters LVC 40% or CTSH
9028.30 - Electricity meters LVC 40% or CTSH
90.29 Revolution counters, production
counters, taximeters, mileometers,
pedometers and the like; speed
indicators and tachometers, other than
those of heading 90.14 or 90.15;
stroboscopes.
9029.10 - Revolution counters, production LVC 40% or CTSH
counters, taximeters, mileometers,
pedometers and the like
9029.20 - Speed indicators and tachometers; LVC 40% or CTSH
stroboscopes
90.30 Oscilloscopes, spectrum analyzers and
other instruments and apparatus for
measuring or checking electrical
quantities, excluding meters of heading
90.28; instruments and apparatus for
measuring or detecting alpha, beta,
gamma, X-ray, cosmic or other ionizing
radiations.
9030.10 - Instruments and apparatus for LVC 40% or CTSH
measuring or detecting ionizing
radiations
9030.20 - Oscilloscopes and oscillographs LVC 40% or CTSH
- Other instruments and apparatus, for
measuring or checking voltage, current,
resistance or power:
9030.31 -- Multimeters without a recording LVC 40% or CTSH
device
778
9030.32 -- Multimeters with a recording device LVC 40% or CTSH
9030.33 -- Other, without a recording device LVC 40% or CTSH
9030.39 -- Other, with a recording device LVC 40% or CTSH
9030.40 - Other instruments and apparatus, LVC 40% or CTSH
specially designed for
telecommunications (for example,
cross-talk meters, gain measuring
instruments, distortion factor meters,
psophometers)
- Other instruments and apparatus:
9030.82 -- For measuring or checking LVC 40% or CTSH
semiconductor wafers or devices
9030.84 -- Other, with a recording device LVC 40% or CTSH
90.31 Measuring or checking instruments,
appliances and machines, not specified
or included elsewhere in this Chapter;
profile projectors.
9031.10 - Machines for balancing mechanical LVC 40% or CTSH
parts
9031.20 - Test benches LVC 40% or CTSH
- Other optical instruments and
appliances:
9031.41 -- For inspecting semiconductor wafers LVC 40% or CTSH
or devices for inspecting photomasks or
reticles used in manufacturing
semiconductor devices
9031.80 - Other instruments, appliances and LVC 40% or CTSH
machines
90.32 Automatic regulating or controlling
instruments and apparatus.
9032.10 - Thermostats LVC 40% or CTSH
9032.20 - Manostats LVC 40% or CTSH
- Other instruments and apparatus:
9032.81 -- Hydraulic or pneumatic LVC 40% or CTSH
Chapter 91 Clocks and watches and parts thereof
91.11 Watch cases and parts thereof.
9111.10 - Cases of precious metal or of metal LVC 40% or CTSH
clad with precious metal
9111.20 - Cases of base metal, whether or not LVC 40% or CTSH
gold- or silver-plated
9111.80 - Other cases LVC 40% or CTSH
91.12 Clock cases and cases of a similar type
for other goods of this Chapter, and
parts thereof.
9112.20 - Cases LVC 40% or CTSH
91.13 Watch straps, watch bands and watch
bracelets, and parts thereof.
9113.90 - Other CC
Note: Other than watch straps, watch
779
bands and watch bracelets, and
parts, of precious metal or of
metal clad with precious metal,
and of base metal, whether or not
gold- or silver-plated.
Section XX Miscellaneous manufactured articles (Chapter 94-96)
Chapter 94 Furniture; bedding, mattresses,
mattress supports, cushions and similar
stuffed furnishings; lamps and lighting
fittings, not elsewhere specified or
included; illuminated signs,
illuminated name-plates and the like;
prefabricated buildings
94.01 Seats (other than those of heading
94.02), whether or not convertible into
beds, and parts thereof.
9401.10 - Seats of a kind used for aircraft LVC 40% or CTSH
9401.20 - Seats of a kind used for motor vehicles LVC 40% or CTSH
9401.30 - Swivel seats with variable height LVC 40% or CTSH
adjustment
9401.40 - Seats other than garden seats or LVC 40% or CTSH
camping equipment, convertible into
beds
- Seats of cane, osier, bamboo or
similar materials:
9401.51 -- Of bamboo or rattan LVC 40% or CTSH
- Other seats, with wooden frames:
9401.61 -- Upholstered LVC 40% or CTSH
- Other seats, with metal frames:
9401.71 -- Upholstered LVC 40% or CTSH
9401.80 - Other seats LVC 40% or CTSH
9401.90 - Parts CC
94.02 Medical, surgical, dental or veterinary LVC 40% or CC
furniture (for example, operating
tables, examination tables, hospital
beds with mechanical fittings,
dentists' chairs); barbers' chairs and
similar chairs, having rotating as well
as both reclining and elevating
movements; parts of the foregoing
articles.
94.03 Other furniture and parts thereof.
9403.10 - Metal furniture of a kind used in LVC 40% or CTSH
offices
9403.20 - Other metal furniture LVC 40% or CTSH
9403.30 - Wooden furniture of a kind used in LVC 40% or CTSH
offices
9403.40 - Wooden furniture of a kind used in the LVC 40% or CTSH
kitchen
780
9403.50 - Wooden furniture of a kind used in the LVC 40% or CTSH
bedroom
9403.60 - Other wooden furniture LVC 40% or CTSH
9403.70 - Furniture of plastics LVC 40% or CTSH
- Furniture of other materials,
including cane, osier, bamboo or
similar materials:
9403.81 -- Of bamboo or rattan LVC 40% or CTSH
94.04 Mattress supports; articles of bedding
and similar furnishing (for example,
mattresses, quilts, eiderdowns,
cushions, pouffes and pillows) fitted
with springs or stuffed or internally
fitted with any material or of cellular
rubber or plastics, whether or not
covered.
9404.10 - Mattress supports LVC 40% or CC
- Mattresses
9404.21 -- Of cellular rubber or plastics, CC
whether or not covered
9404.29 -- Of other materials CC
9404.30 - Sleeping bags LVC 40% or CC
9404.90 - Other CC, except
from heading
50.07, 51.11
through 51.13,
52.08 through
52.12, 53.09
through 53.11,
54.07, 54.08,
or 55.12
through 55.16
for quilts and
eiderdowns.
CTH for any
other good.
94.05 Lamps and lighting fittings including
searchlights and spotlights and parts
thereof, not elsewhere specified or
included; illuminated signs,
illuminated name-plates and the like,
having a permanently fixed light
source, and parts thereof not elsewhere
9405.10 - Chandeliers and other electric LVC 40% or CTSH
ceiling or wall lighting fittings,
excluding those of a kind used for
lighting public open spaces or
thoroughfares
9405.20 - Electric table, desk, bedside or LVC 40% or CTSH
floor-standing lamps
781
9405.30 - Lighting sets of a kind used for LVC 40% or CTSH
Christmas trees
9405.40 - Other electric lamps and lighting LVC 40% or CTSH
fittings
9405.50 - Non-electrical lamps and lighting LVC 40% or CTSH
fittings
9405.60 - Illuminated signs, illuminated LVC 40% or CTSH
name-plates and the like
94.06 9406.00 Prefabricated buildings. LVC 40% or CC
Chapter 96 Miscellaneous manufactured articles
96.01 Worked ivory, bone, tortoise-shell, CC
horn, antlers, coral, mother-of-pearl
and other animal carving material, and
articles of these materials (including
articles obtained by molding).
96.02 9602.00 Worked vegetable or mineral carving LVC 40% or CC
material and articles of these
materials; molded or carved articles of
wax, of stearin, of natural gums or
natural resins or of modeling pastes,
and other molded or carved articles, not
elsewhere specified or included;
worked, unhardened gelatin (except
gelatin of heading 35.03) and articles
of unhardened gelatin.
96.03 Brooms, brushes (including brushes LVC 40% or CC
constituting parts of machines,
appliances or vehicles), hand-operated
mechanical floor sweepers, not
motorized, mops and feather dusters;
prepared knots and tufts for broom or
brush making; paint pads and rollers;
squeegees (other than roller
squeegees).
96.04 9604.00 Hand sieves and hand riddles. LVC 40% or CC
96.05 9605.00 Travel sets for personal toilet, sewing CC
or shoe or clothes cleaning.
96.06 Buttons, press-fasteners, LVC 40% or CC
snap-fasteners and press-studs, button
molds and other parts of these articles;
button blanks.
96.07 Slide fasteners and parts thereof.
- Slide fasteners:
9607.11 -- Fitted with chain scoops of base LVC 40% or CTSH
metal
9607.20 - Parts LVC 40% or CC
96.08 Ball point pens; felt tipped and other LVC 40% or CTSH
porous-tipped pens and markers;
fountain pens, stylograph pens and
other pens; duplicating stylos;
propelling or sliding pencils;
782
pen-holders, pencil-holders and
similar holders; parts (including caps
and clips) of the foregoing articles,
96.09 Pencils (other than pencils of heading LVC 40% or CTSH
96.08), crayons, pencil leads, pastels,
drawing charcoals, writing or drawing
chalks and tailors’ chalks.
96.13 Cigarette lighters and other lighters,
whether or not mechanical or
electrical, and parts thereof other
than flints and wicks.
9613.10 - Pocket lighters, gas fuelled, LVC 40% or CTSH
non-refillable
9613.20 - Pocket lighters, gas fuelled, LVC 40% or CTSH
refillable
9613.80 - Other lighters LVC 40% or CTSH
Notes to Section XI (Chapter 50-63):
1. For the purposes of Chapter 50 through 55 and 60, dyeing or

printing process shall be accompanied by two or more of the following
operations:
(1) antibacterial finish;

(2) antimelt finish;
(3) antimosquito finish;
(4) anti-pilling finish;
(5) antistatic finish;
(6) artificial creasing;
(7) bleaching;
(8) brushing;
(9) buff finish;
(10) burn-out finish;
(11) calendering;
(12) compressive shrinkage;
(13) crease resistant finish;
(14) decatizing;
(15) deodorant finish;
(16) easy-care finish;
(17) embossing;
(18) emerizing;
(19) flame resistant finish;
(20) flock finish;
(21) foam printing;
(22) liquid ammonia process;
(23) mercerization;
(24) microbial control finish;
(25) milling;
(26) moare finish;
(27) moisture permeable waterproofing;
(28) oil-repellent finish;
(29) organdie finish;
783
(30) peeling treatment;
(31) perfumed finish;
(32) relaxation;
(33) ripple finish;
(34) schreiner finish;
(35) shearing;
(36) shrink resistant finish;
(37) soil guard finish;
(38) soil release finish;
(39) stretch finish;
(40) tick-proofing;
(41) UV cut finish;
(42) wash and wear finish;
(43) water absorbent finish;
(44) waterproofing;
(45) water-repellent finish;
(46) wet decatizing;
(47) windbreak finish; or
(48) wire raising.
2. For the purposes of determining the origin of a good of Chapter

61 through 63, the rule applicable to that good shall only apply to
the component that determines the tariff classification of the good
and such component must satisfy the CTC-based rule set out in the rule
for that good.
784
SOUTH KOREA-VIETNAM
EAEU-VIETNAM
FREE TRADE AGREEMENT BETWEEN
THE SOCIALIST REPUBLIC OF VIET NAM, OF THE ONE PART, AND THE EURASIAN
ECONOMIC UNION AND ITS MEMBER STATES,
OF THE OTHER PART
PREAMBLE
The Socialist Republic of Viet Nam (hereinafter referred to as “Viet Nam”),

of the one part, and the Republic of Armenia, the Republic of Belarus, the
Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation
(hereinafter referred to as “the Member States of the Eurasian Economic
Union”), and the Eurasian Economic Union, of the other part:
RECOGNISING the importance of enhancing their longstanding and strong

friendship and the traditional multi-faceted cooperation between the Parties;
DESIRING to create favourable conditions for the development and

diversification of trade between them and for the promotion of commercial and
economic cooperation in areas of common interest on the basis of equality,
mutual benefit, non-discrimination and international law;
REAFFIRMING their respective rights and obligations under the Marrakesh

Agreement Establishing the World Trade Organization and other existing
international agreements to which the Parties are party;
RECOGNISING the need to uphold the principles and practices which promote
free and unhindered trade in a stable, transparent and non-discriminatory manner;
CONVINCED that this Agreement will enhance the competitiveness of the

economies of the Parties in global markets and create conditions encouraging
economic, trade and investment relations between them;
BEING CONSCIOUS of the importance of trade facilitation in promoting

efficient and transparent procedures to reduce costs and ensure predictability;
2
EMPHASISING the complementarities of the economies of the Parties and the

significant potential to advance economic relations by further developing the
framework for trade and investment;
ACKNOWLEDGING the important role and contribution of investments in

enhancing trade and cooperation between the Parties and the need to further
promote and facilitate cooperation and greater business opportunities provided by
this Agreement;
REAFFIRMING the importance of ongoing economic cooperation initiatives

between the Parties, and agreeing to further develop the existing economic
partnership in areas where the Parties have mutual interests;
DESIRING to eliminate barriers to trade and investment between the Parties,

lower business costs and enhance economic efficiency; and
CONVINCED that joint efforts between the Parties towards an advanced free
trade agreement will develop an enhanced framework for the promotion and
development of economic and trade relations between Viet Nam and the Member
States of the Eurasian Economic Union in their common interest and for their
mutual benefit;
HAVE AGREED as follows:

3
CHAPTER 1
GENERAL PROVISIONS
ARTICLE 1.1
General Provisions and Definitions
For the purposes of this Agreement, unless otherwise specified:
a) “central customs authority” means the highest authorised customs

authority of Viet Nam or each of the Member States of the Eurasian
Economic Union exercising, in accordance with the respective domestic
laws and regulations, the functions of implementing the relevant
government policies, regulations, control and supervision in the customs
sphere;
b) “customs authorities” means the customs authority or customs

authorities of Viet Nam or the Member States of the Eurasian Economic
Union;
c) “customs duty” means any duty or charge of any kind imposed on or in

connection with the importation of a good, but does not include any:
i. charge equivalent to an internal tax imposed consistently with

Article III.2 of GATT 1994;
ii. fee or other charge in connection with the importation

commensurate with the cost of services rendered; and
iii. duty imposed consistently with Chapter 3 (Trade Remedies) of

this Agreement;
d) “days” means calendar days including weekends and holidays;
e) “declarant” means a person who declares goods for customs purposes

or on whose behalf the goods are declared;
4
f) “Eurasian Economic Commission” means the permanent regulatory

body of the Eurasian Economic Union in accordance with the Treaty on
the Eurasian Economic Union of 29 May 2014 (hereinafter referred to as
“the Treaty on the EAEU”);
g) “GATS” means the General Agreement on Trade in Services, in Annex

1B to the WTO Agreement;
h) “GATT 1994” means the General Agreement on Tariffs and Trade 1994
and its interpretative notes, in Annex 1A to the WTO Agreement;
i) “good” means any merchandise, product, article or material;
j) “Harmonized System” or “HS” means the Harmonized Commodity

Description and Coding System established by the International
Convention on the Harmonized Commodity Description and Coding
System, done on 14 June 1983 as adopted and implemented by the
Parties in their respective laws and regulations;
k) “laws and regulations” includes any law or any other legal normative
act;
l) “measure” means any measure by a Party, whether in the form of a law,

regulation, rule, procedure, decision, administrative action, practice or
any other form;
m) “originating” means qualifying under the rules of origin set out in

Chapter 4 (Rules of Origin) of this Agreement;
n) “Parties” means Viet Nam, of the one part, and the Member States of
the Eurasian Economic Union and the Eurasian Economic Union acting
jointly or individually within their respective areas of competence as
derived from the Treaty on the EAEU, of the other part;
o) “person” means a natural person or a juridical person;

5
p) “SCM Agreement” means the Agreement on Subsidies and

Countervailing Measures, in Annex 1A to the WTO Agreement;
q) “SPS Agreement” means the Agreement on the Application of Sanitary

and Phytosanitary Measures, in Annex 1A to the WTO Agreement;
r) “TBT Agreement” means the Agreement on Technical Barriers to

Trade, in Annex 1A to the WTO Agreement;
s) “TRIPS Agreement” means the Agreement on Trade-Related Aspects

of Intellectual Property Rights, in Annex 1C to the WTO Agreement;
t) “WTO” means the World Trade Organization established in accordance

with the WTO Agreement; and
u) “WTO Agreement” means the Marrakesh Agreement Establishing the

World Trade Organization, done on 15 April 1994.
ARTICLE 1.2
Establishment of Free Trade Area
The Parties hereby establish a Free Trade Area consistent with Article XXIV of
GATT 1994 and Article V of GATS.
ARTICLE 1.3
Objectives
The objectives of this Agreement are:
a) to liberalise and facilitate trade in goods between the Parties through,

inter alia, reduction of tariff and non-tariff barriers and simplification of
customs formalities;
6
b) to liberalise and facilitate trade in services between the Parties;
c) to facilitate, promote and enhance investment opportunities between the

Parties through further development of favourable investment
environments;
d) to support economic and trade cooperation between the Parties;
e) to protect adequately and effectively intellectual property and promote

cooperation in the field thereof; and
f) to establish a framework to enhance closer cooperation in the fields

agreed in this Agreement and facilitate communications between the
Parties.
ARTICLE 1.4
Joint Committee
The Parties hereby establish a Joint Committee comprising representatives of

each Party, which shall be co-chaired by two representatives – one from Viet
Nam and the other from the Eurasian Economic Union or from a Member State
of the Eurasian Economic Union. The Parties shall be represented by senior
officials delegated by them for this purpose.
ARTICLE 1.5
Functions of the Joint Committee
1. The Joint Committee shall have the following functions:
a) considering any matter related to the implementation and operation of

this Agreement;
7
b) supervising the work of all committees and other bodies established

under this Agreement;
c) considering ways to further enhance trade relations between the Parties;
d) considering and recommending to the Parties any amendment to this

Agreement; and
e) taking other actions on any matter covered by this Agreement as the

Parties may agree.
2. In the fulfilment of its functions, the Joint Committee may establish subsidiary
bodies, including ad hoc bodies, and assign them with tasks on specific
matters. The Joint Committee may, if necessary, decide to seek advice of third
persons or groups.
3. Unless the Parties agree otherwise, the Joint Committee shall convene:
a) in regular session every year, with such sessions to be held alternately

in the territories of the Parties; and
b) in special session within 30 days of the request of a Party, with such

sessions to be held in the territory of the other Party or at such location
as the Parties may agree.
4. The Joint Committee shall meet within 30 days of a Party giving an advance
notice in accordance with Article 15.3 of this Agreement in order to discuss
the implications of that action for the Parties and for any arrangement made
5. All decisions of the Joint Committee, committees and other bodies established
under this Agreement shall be taken by consensus of the Parties.
ARTICLE 1.6
8
Priority Investment Projects
1. Priority investment projects shall be approved by the Government of Viet

Nam on the one side and the respective Governments of the Member States of
the Eurasian Economic Union on the other side.
2. Notwithstanding other provisions of this Agreement and as a result of

consultations of the Parties aimed at support of priority investment projects,
the Parties shall be entitled to provide additional preferences. Such decisions
shall be made by the relevant authorities of the respective Parties within their
competence.
ARTICLE 1.7
Contact Points
1. Each Party shall designate a contact point or contact points to facilitate

communications between the Parties on any matter covered by this Agreement
and shall notify the Joint Committee of its contact point or contact points.
2. Upon request of a Party, the other Party’s contact point or contact points shall
identify the office or official responsible for the matter and assist, as
necessary, in facilitating communications with the requesting Party.
ARTICLE 1.8
Confidential Information
1. Each Party shall, in accordance with its respective laws and regulations,
maintain the confidentiality of information provided in confidence by the
other Party pursuant to this Agreement.
2. Nothing in this Agreement shall require a Party to provide confidential

information, the disclosure of which would impede law enforcement, or
9
otherwise be contrary to the public interest, or which would prejudice

legitimate commercial interests of particular enterprises, public or private.
ARTICLE 1.9
General and Security Exceptions
1. Article XX of GATT 1994 and Article XIV of GATS are incorporated into
and form part of this Agreement, mutatis mutandis.
2. Article XXI of GATT 1994 and Article XIV bis of GATS are incorporated
into and form part of this Agreement, mutatis mutandis.
3. The Joint Committee shall be informed to the fullest extent possible of

measures taken under paragraph 2 of this Article and of their termination.
ARTICLE 1.10
Dual Use Goods and Services
The Parties recognise the sovereign right of Viet Nam and the Member States of
the Eurasian Economic Union to regulate trade in dual use goods and services
subject to their respective export control laws and regulations as well as
international obligations.
ARTICLE 1.11
Measures to Safeguard the Balance of Payments
Article XII of GATT 1994 and the Understanding on the Balance-of-Payments

Provisions of GATT 1994 are incorporated into and form part of this Agreement,
mutatis mutandis.
10
ARTICLE 1.12
Relation to Other International Agreements
1. This Agreement shall apply without prejudice to the rights and obligations of
the Parties arising from bilateral and multilateral agreements to which the
Parties are party, including the WTO Agreement and the Parties’ respective
WTO obligations and commitments.
2. Without prejudice to Article 4.7 of this Agreement, the provisions of this

Agreement shall neither apply between the Member States of the Eurasian
Economic Union or between the Member States of the Eurasian Economic
Union and the Eurasian Economic Union, nor shall they grant Viet Nam the
rights and privileges that the Member States of the Eurasian Economic Union
grant exclusively to each other.
ARTICLE 1.13
Transparency
1. Each Party shall ensure, in accordance with its respective laws and
regulations, that its laws and regulations of general application as well as its
respective international agreements, with respect to any matter covered by this
Agreement, are promptly published or otherwise made publicly available,
including wherever possible in electronic form.
2. To the extent possible, in accordance with its respective laws and regulations,
each Party shall:
a) publish in advance such laws and regulations referred to in paragraph 1

of this Article that it proposes to adopt; and
b) provide interested persons and the other Party with a reasonable

opportunity to comment on such laws and regulations referred to in
paragraph 1 of this Article that it proposes to adopt.
11
3. Upon request of a Party, the other Party shall promptly respond to specific
questions and provide information on the laws and regulations referred to in
paragraph 1 of this Article.
12
CHAPTER 2
TRADE IN GOODS
ARTICLE 2.1
Most-Favoured-Nation Treatment
1. With respect to customs duties and charges of any kind imposed on or in

connection with importation or exportation or imposed on the international
transfer of payments for imports or exports, and with respect to the method of
levying such duties and charges, and with respect to all rules and formalities
in connection with importation and exportation, and with respect to all matters
referred to in paragraphs 2 and 4 of Article III of GATT 1994, any advantage,
favour, privilege or immunity granted by a Party to any good originating in or
destined for the territory of any third country shall be accorded immediately
and unconditionally to the like good of the other Party or like good destined
for the territory of such Party.
2. Nothing in paragraph 1 of this Article obliges a Party to provide the other

Party with an advantage, favour, privilege or immunity on a most-favoured-
nation basis which the former Party provides to any other third country
fulfilling any of the following criteria:
a) to adjacent countries for the purposes of facilitating frontier traffic;
b) to the participants of a customs union, free trade area or regional

economic organisation, or any other regional trade agreements as
defined in Article XXIV of GATT 1994; or
c) to developing and least developed countries in accordance with GATT

1994, Generalized System of Preferences under United Nations
Conference on Trade and Development or the respective laws and
regulations of the Parties.
ARTICLE 2.2
13
National Treatment
Article III of GATT 1994 and the interpretative notes to this Article are
incorporated into and form part of this Agreement, mutatis mutandis.
ARTICLE 2.3
Reduction and/or Elimination of Customs Duties
1. Except as otherwise provided for in this Agreement, each Party shall

progressively reduce and/or eliminate customs duties on originating goods of
the other Party in accordance with its schedule of tariff commitments in
Annex 1 to this Agreement and shall not increase any customs duty or adopt
any new customs duty resulting in the customs duty rate for originating goods
of the other Party exceeding the level specified in its schedule of tariff
commitments in Annex 1 to this Agreement.
2. A Party may, at any time, unilaterally accelerate the reduction and/or

elimination of customs duties on originating goods of the other Party set out
in its schedule of tariff commitments in Annex 1 to this Agreement. This shall
not preclude either Party from raising a customs duty to the level established
in its schedule of tariff commitments in Annex 1 to this Agreement for the
respective year following a unilateral reduction. A Party considering such
raise, reduction and/or elimination of a customs duty shall inform the other
Party as early as practicable before the new rate of customs duty takes effect.
3. The Parties may consider accelerating the reduction and/or elimination of

customs duties set out in their schedules of tariff commitments in Annex 1 to
this Agreement by amending this Agreement in accordance with Article 15.5
of this Agreement.
4. If the rate of customs duty on an originating good of a Party applied in

accordance with Annex 1 to this Agreement is higher than the most-favoured-
nation applied rate of customs duty on the same good, such good shall be
eligible for the latter one.
14
ARTICLE 2.4
Changes to HS Code and Description
1. Each Party shall ensure that any change to its HS code and description shall be
carried out without impairing tariff concessions undertaken in accordance
with Annex 1 to this Agreement.
2. Such change to Viet Nam HS code and description and the Eurasian
Economic Union HS code and description shall be carried out by Viet Nam
and the Eurasian Economic Commission, respectively. The Parties shall make
any change to their HS code and description publicly available in a timely
manner and inform each other every three months.
ARTICLE 2.5
Fees, Charges and Formalities Connected with Importation and Exportation
1. Article VIII of GATT 1994 and the interpretative notes to this Article are
incorporated into and form part of this Agreement, mutatis mutandis.
2. Each Party shall ensure that its competent authorities make available through
their official websites information about fees and charges it imposes.
ARTICLE 2.6
Administration of Trade Regulations
Each Party shall administer in a uniform, impartial and reasonable manner all its
laws, regulations, judicial decisions and administrative rulings of general
application pertaining to trade in goods between the Parties in accordance with
Article X of GATT 1994.
15
ARTICLE 2.7
Subsidies
1. The rights and obligations of the Parties in respect of subsidies for goods not
covered by the Agreement on Agriculture, in Annex 1A to the WTO
Agreement, shall be governed by the provisions of Article XVI of GATT
1994, the SCM Agreement and their respective WTO obligations and
commitments.
2. The Parties share the objective of multilateral elimination of export subsidies

for agricultural goods.
3. The rights and obligations of the Parties in respect of export subsidies on any
agricultural good destined for the territory of the other Party shall be governed
by their respective WTO obligations and commitments.
4. Each Party shall ensure transparency in the area of subsidies covered by this
Article. Upon request of a Party, the other Party within a reasonable period of
time shall give notice on a specific subsidy, as defined in the SCM
Agreement, that it grants or maintains. Such notice shall contain the
information set out in Article 25.3 of the SCM Agreement.
ARTICLE 2.8
Import Licensing
1. Each Party shall ensure that its import licensing procedures, as defined in
Articles 1 through 3 of the Agreement on Import Licensing Procedures, in
Annex 1A to the WTO Agreement (hereinafter referred to as “the Agreement
on Import Licensing Procedures”), are implemented in a transparent and
predictable manner, and applied in accordance with the Agreement on Import
Licensing Procedures.
16
2. Each Party shall publish its rules and information concerning licensing
procedures in a manner consistent with Article 1.4 of the Agreement on
Import Licensing Procedures. A Party which introduces licensing procedures
or changes in these procedures shall notify the other Party of such licensing
procedures or changes in these procedures within 60 days of publication. Such
notification shall contain information set out in Articles 5.2 and 5.3 of the
Agreement on Import Licensing Procedures. The information shall be
provided through a contact point of each Party designated for this purpose.
ARTICLE 2.9
Quantitative Restrictions
1. Neither Party may adopt or maintain any quantitative restriction, including

prohibition or restriction on the importation of any good of the other Party or
on the exportation of any good destined for the territory of the other Party,
except in accordance with its WTO obligations and commitments, and to this
end Articles XI and XIII of GATT 1994 and the interpretative notes to these
Articles are incorporated into and form part of this Agreement, mutatis
mutandis.
2. Each Party shall ensure the transparency of any quantitative restriction

permitted in accordance with paragraph 1 of this Article and shall ensure that
any such measure is not prepared, adopted or applied with a view to, or with
the effect of, creating unnecessary obstacles to trade between the Parties.
ARTICLE 2.10
Trigger Safeguard Measures
1. The Eurasian Economic Union may apply a trigger safeguard measure to

originating goods of Viet Nam listed in Annex 2 to this Agreement and
imported into the territories of the Member States of the Eurasian Economic
Union if the volume of imports during any calendar year exceeds the relevant
trigger level for that year specified in Annex 2 to this Agreement.
17
2. A trigger safeguard measure shall be applied in the form of a customs duty

equal to the most-favoured-nation rate of customs duty applied with respect to
the goods concerned on the date when the trigger safeguard measure comes
into effect.
3. A trigger safeguard measure shall be applied for a period of time not exceeding
six months.
4. Notwithstanding paragraph 3 of this Article, if on the date of the application of

the trigger safeguard measure the volume of imports concerned exceeds 150
percent of the relevant trigger level, the period of application of such measure
may be extended by another three months.
5. The Eurasian Economic Commission shall publish the data on the volume of
imports concerned in a readily accessible manner for Viet Nam. Upon finding
that the conditions referred to in paragraph 1 of this Article are met, the
Eurasian Economic Commission shall immediately give notice thereof in
writing. The Eurasian Economic Commission shall also give notice in writing
at least 20 days before taking decision on the application of a trigger safeguard
measure, as well as three days after taking such decision, provided that such
decision comes into effect not earlier than 30 days from the date the decision is
taken, without prejudice to the right of the Eurasian Economic Union to apply
such measure. If the Eurasian Economic Union decides not to apply the trigger
safeguard measure it shall promptly notify Viet Nam of its decision in writing.
6. Upon request of a Party, the other Party shall promptly enter into consultations
and/or provide the requested information with the aim of clarifying the
conditions of imposition and application of a trigger safeguard measure under
paragraphs 1 through 4 of this Article.
7. Every three years from the date of entry into force of this Agreement, the
Parties shall review the operation of this Article and, if necessary, jointly
decide to amend this Article as well as Annex 2 to this Agreement in
accordance with Article 15.5 of this Agreement.
18
ARTICLE 2.11
State Trading Enterprises
Each Party shall ensure that its state trading enterprises operate in consistence
with Article XVII of GATT 1994 and its WTO obligations and commitments.
ARTICLE 2.12
Committee on Trade in Goods
1. The Parties hereby establish the Committee on Trade in Goods (hereinafter

referred to as “the Goods Committee”), comprising representatives of each
Party.
2. The Goods Committee shall meet upon request of either Party to consider any
matter arising under this Chapter and under Chapters 3 (Trade Remedies), 4
(Rules of Origin), 5 (Customs Administration and Trade Facilitation), 6
(Technical Barriers to Trade) and 7 (Sanitary and Phytosanitary Measures).
3. The Goods Committee shall have the following functions:
a) reviewing and monitoring the implementation and operation of the

Chapters referred to in paragraph 2 of this Article;
b) reviewing and making appropriate recommendations, as needed, to the

Joint Committee on any amendment to the provisions of this Chapter
and to the schedules of tariff commitments in Annex 1 to this
Agreement in order to promote and facilitate improved market access;
c) identifying and recommending measures to resolve any problem that

may arise;
d) reporting the findings on any other issue arising from the

implementation of this Chapter to the Joint Committee.
19
CHAPTER 3
TRADE REMEDIES
ARTICLE 3.1
Countervailing Measures
1. The Parties shall apply countervailing measures in accordance with the

provisions of Articles VI and XVI of GATT 1994 and the SCM Agreement.
2. For the purposes of conducting countervailing investigations and applying

countervailing measures by Viet Nam, the Member States of the Eurasian
Economic Union shall be considered individually and not as the Eurasian
Economic Union as a whole, unless there are subsidies within the meaning of
Article XVI of GATT 1994 and the SCM Agreement available at the level of
the Eurasian Economic Union for all Member States of the Eurasian
Economic Union.
ARTICLE 3.2
Anti-Dumping Measures
1. The Parties shall apply anti-dumping measures in accordance with the

provisions of Article VI of GATT 1994 and the Agreement on
Implementation of Article VI of the General Agreement on Tariffs and Trade
1994, in Annex 1A to the WTO Agreement.
2. For the purposes of conducting anti-dumping investigations and applying

anti-dumping measures by Viet Nam, the Member States of the Eurasian
Economic Union shall be considered individually and not as the Eurasian
Economic Union as a whole, unless both Parties agree otherwise.
20
ARTICLE 3.3
Global Safeguard Measures
The Parties shall apply global safeguard measures in accordance with the
provisions of Article XIX of GATT 1994 and the Agreement on Safeguards, in
Annex 1A to the WTO Agreement.
ARTICLE 3.4
1. Where, as a result of the reduction or elimination of a customs duty under this

Agreement, any originating good of a Party is being imported into the territory
of the other Party in such increased quantities, in absolute terms or relative to
domestic production, and under such conditions as to constitute a substantial
cause of serious injury or threat thereof to the domestic industry producing
like or directly competitive goods in the territory of the importing Party, the
importing Party may apply a bilateral safeguard measure during the transition
period for that good to the extent necessary to remedy or prevent the serious
injury or threat thereof, subject to the provisions of this Article.
2. A bilateral safeguard measure shall only be applied upon demonstrating clear

evidence that increased imports constitute a substantial cause of or are
threatening to cause serious injury.
3. The Party intending to apply a bilateral safeguard measure under this Article
shall promptly, and in any case before applying a measure, notify the other
Party and the Joint Committee. The notification shall contain all pertinent
information, which shall include evidence of serious injury or threat thereof
caused by increased imports, a precise description of the good concerned and
the proposed measure, as well as the proposed date of introduction, expected
duration and timetable for the progressive removal of the measure if relevant.
4. The Party that may be affected by the measure shall be offered compensation
in the form of substantially equivalent trade liberalisation in relation to the
21
imports from such Party. The Party shall, within 30 days from the date of
notification referred to in paragraph 3 of this Article, examine the information
provided in order to facilitate a mutually acceptable resolution of the matter.
In the absence of such resolution, the importing Party may apply a bilateral
safeguard measure to resolve the problem, and, in the absence of mutually
agreed compensation, the Party against whose good the bilateral safeguard
measure is applied may take compensatory action. The bilateral safeguard
measure and the compensatory action shall be promptly notified to the other
Party. The compensatory action shall normally consist of suspension of
concessions having substantially equivalent trade effects and/or concessions
substantially equivalent to the value of the additional duties expected to result
from the bilateral safeguard measure. Compensatory action shall be taken only
for the minimum period necessary to achieve the substantially equivalent trade
effects and in any event, only while the bilateral safeguard measure under
paragraph 5 of this Article is being applied.
5. If the conditions set out in paragraph 1 of this Article are met, the importing
Party may apply a bilateral safeguard measure in the form of:
a) suspension of further reduction of any applicable rate of customs duty

provided for in this Agreement for the good concerned; or
b) increase of the applicable rate of customs duty for the good concerned
to a necessary level not exceeding the base rate indicated in Annex 1 to
this Agreement.
6. The Parties may apply a bilateral safeguard measure for the following periods
of time:
a) in the case of a good for which the customs duty reaches the final
reduction rate within three years from the date of entry into force of this
Agreement, a Party may apply a bilateral safeguard measure for a
period of time not exceeding two years. A Party shall not apply a
bilateral safeguard measure again on the same good during the one-year
period after the expiration of the previous bilateral safeguard measure.
Any bilateral safeguard measure shall not be applied more than twice to
the same good.
22
b) in the case of a good for which the customs duty reaches the final
reduction rate after three years from the date of entry into force of this
Agreement, a Party may apply a bilateral safeguard measure for a
period of time not exceeding two years. The period of application of a
bilateral safeguard measure may be extended by up to one year if there
is evidence that it is necessary to remedy or prevent serious injury or
threat thereof and that the industry is adjusting. A Party shall not apply
a bilateral safeguard measure again on the same good for the period of
time equal to that during which such measure had been previously
applied. Any bilateral safeguard measure shall not be applied more than
twice to the same good.
7. Upon the termination of the bilateral safeguard measure, the rate of customs
duty shall be the rate, which would have been in effect on the date of
termination of the measure.
8. Neither Party may apply, with respect to the same good, at the same time:
a) a bilateral safeguard measure; and
b) a measure under Article XIX of GATT 1994 and the Agreement on

Safeguards, in Annex 1A to the WTO Agreement.
9. Domestic industry referred to in paragraph 1 of this Article means the

producers as a whole of the like or directly competitive goods operating
within the territory of a Party or those producers whose collective production
of the like or directly competitive goods constitutes a major proportion but not
less than 25 percent of the total domestic production of such good.
10. Transition period referred to in paragraph 1 of this Article in relation to

particular goods subject to a bilateral safeguard measure, means:
a) the period of time from the date of entry into force of this Agreement
until seven years from the date of completion of the customs duty
elimination or reduction in the case of a good for which the customs
23
duty reaches the final reduction rate within three years from the date of
entry into force of this Agreement;
b) the period of time from the date of entry into force of this Agreement
until five years from the date of completion of the customs duty
duty reaches the final reduction rate after three years, but only up to five
years from the date of entry into force of this Agreement; and
c) the period of time from the date of entry into force of this Agreement
until three years from the date of completion of the customs duty
duty reaches the final reduction rate after five years from the date of
entry into force of this Agreement.
ARTICLE 3.5
Notifications
1. All official communications and documentation exchanged between the

Parties with respect to matters covered by this Chapter shall take place
between the relevant authorities having the legal power to initiate and conduct
investigations under this Chapter (hereinafter referred to as “the investigating
authorities”). In case Viet Nam intends to apply a measure under this Chapter,
the other Party may designate a different responsible authority and shall notify
Viet Nam of its designation.
2. The Parties shall exchange information on the names and contacts of the
investigating authorities within 30 days from the date of entry into force of
this Agreement. The Parties shall promptly notify each other of any change to
the investigating authorities.
3. The Party intending to apply a global safeguard measure shall immediately

provide to the other Party a written notification of all pertinent information on
24
the initiation of an investigation, the provisional findings and the final

findings of the investigation.
25
CHAPTER 4
RULES OF ORIGIN
SECTION I. GENERAL PROVISIONS
ARTICLE 4.1
Scope
The rules of origin provided for in this Chapter shall be applied only for the
purposes of granting preferential tariff treatment in accordance with this
Agreement.
ARTICLE 4.2
Definitions
For the purposes of this Chapter:
a) “aquaculture” means farming of aquatic organisms including fish,

molluscs, crustaceans, other aquatic invertebrates and aquatic plants,
from feedstock such as eggs, fry, fingerlings and larvae, by intervention
in the rearing or growth processes to enhance production such as regular
stocking, feeding, or protection from predators;
b) “authorised body” means the competent authority designated by a Party

to issue a Certificate of Origin under this Agreement;
c) “CIF value” means the value of the goods imported and includes the
cost of freight and insurance up to the port or place of entry into the
country of importation;
d) “consignment” means goods that are sent simultaneously covered by

one or more transport documents to the consignee from the exporter, as
26
well as goods that are sent over a single post-invoice or transferred as a

luggage of the person crossing the border;
e) “exporter” means a person registered in the territory of a Party where

the goods are exported from by such person;
f) “FOB value” means the free-on-board value of the goods, inclusive of

the cost of transport to the port or site of final shipment abroad;
g) “importer” means a person registered in the territory of a Party where

the goods are imported into by such person;
h) “material” means any matter or substance including ingredient, raw

material, component or part used or consumed in the production of
goods or physically incorporated into goods or subjected to a process in
the production of other goods;
i) “non-originating goods” or “non-originating materials” means goods

or materials that do not fulfil the origin criteria of this Chapter;
j) “originating goods” or “originating materials” means goods or

materials that fulfil the origin criteria of this Chapter;
k) “producer” means a person who carries out production in the territory

of a Party;
l) “production” means methods of obtaining goods including growing,

mining, harvesting, raising, breeding, extracting, gathering, capturing,
fishing, hunting, manufacturing, processing or assembling such goods;
and
m) “verification authority” means the competent governmental authority

designated by a Party to conduct verification procedures.
ARTICLE 4.3
27
Origin Criteria
For the purposes of this Chapter, goods shall be considered as originating in a

Party if they are:
a) wholly obtained or produced in such Party as provided for in Article

4.4 of this Agreement; or
b) produced entirely in one or both Parties, exclusively from originating

materials from one or both Parties; or
c) produced in a Party using non-originating materials and satisfy the

requirements of product specific rules specified in Annex 3 to this
Agreement.
ARTICLE 4.4
Wholly Obtained or Produced Goods
For the purposes of Article 4.3 of this Agreement, the following goods shall be
considered as wholly obtained or produced in a Party:
a) plants and plant goods, including fruit, berries, flowers, vegetables,

trees, seaweed, fungi and live plants, grown, harvested, or gathered in
the territory of a Party;
b) live animals born and raised in the territory of a Party;
c) goods obtained from live animals in the territory of a Party;
d) goods obtained from gathering, hunting, capturing, fishing, growing,

raising and aquaculture in the territory of a Party;
e) minerals and other naturally occurring substances extracted or taken

from the air, soil, waters or seabed and subsoil in the territory of a
Party;
28
f) goods of sea fishing and other marine goods taken from the high seas,
in accordance with international law, by a vessel registered or
recorded in a Party and flying its flag;
g) goods manufactured exclusively from goods referred to in

subparagraph f) of this Article, on board a factory ship registered or
recorded in a Party and flying its flag;
h) waste and scrap resulting from production and consumption

conducted in the territory of a Party provided that such goods are fit
only for the recovery of raw materials;
i) used goods collected in the territory of a Party provided that such

goods are fit only for the recovery of raw materials;
j) goods produced in outer space on board a spacecraft provided that the

same spacecraft is registered in a Party; and
k) goods produced or obtained in the territory of a Party solely from

goods referred to in subparagraphs a) through j) of this Article.
ARTICLE 4.5
Value Added Content
For the purposes of this Chapter and product specific rules specified in Annex 3
to this Agreement, the formula for calculating value added content (hereinafter
referred to as “VAC”) shall be:
FOB value – Value of Non-Originating Materials

x 100%
FOB value
where the value of non-originating materials shall be:

29
a) CIF value of the materials at the time of importation to a Party; or
b) the earliest ascertained price paid or payable for non-originating

materials in the territory of the Party where the working or processing
takes place.
When, in the territory of a Party, the producer of the goods acquires non-
originating materials within such Party, the value of such materials shall not
include freight, insurance, packing costs and any other costs incidental to the
transport of those materials from the location of the supplier to the location of
production.
ARTICLE 4.6
Insufficient Working or Processing
1. The following operations undertaken exclusively by themselves or in

combination with each other are considered to be insufficient to meet the
requirements of Article 4.3 of this Agreement:
a) preserving operations to ensure that a product retains its condition

during transportation and storage;
b) freezing or thawing;
c) packaging and re-packaging;
d) washing, cleaning, removing dust, oxide, oil, paint or other coverings;
e) ironing or pressing of textiles;
f) colouring, polishing, varnishing, oiling;
g) husking, partial or total bleaching, polishing and glazing of cereals and

rice;
30
h) operations to colour sugar or form sugar lumps;
i) peeling and removal of stones and shells from fruits, nuts and
vegetables;
j) simple sharpening, grinding;
k) cutting;
l) sifting, screening, sorting, classifying;
m) placing in bottles, cans, flasks, bags, cases, boxes, fixing on surface and
all other simple packaging operations;
n) affixing or printing marks, labels, logos and other like distinguishing

signs on products or their packaging;
o) simple mixing of products (components) which does not lead to a

sufficient difference of product from the original components;
p) simple assembly of a product or disassembly of products into parts; and
q) slaughter of animals, sorting of meat.
2. For the purposes of paragraph 1 of this Article, “simple” describes activities

which do not require special skills or machines, apparatus or equipment
especially designed for carrying out such activities.
ARTICLE 4.7
Accumulation of Origin
Without prejudice to Article 4.3 of this Agreement, the goods or materials

originating in a Party, which are used as material in the manufacture of a product
in the other Party, shall be considered as originating in such Party where the last
operations other than those referred to in paragraph 1 of Article 4.6 of this
31
Agreement have been carried out. The origin of such material shall be confirmed
by a Certificate of Origin (Form EAV) issued by an authorised body.
ARTICLE 4.8
De Minimis
1. Goods that do not undergo a change in tariff classification pursuant to Annex

3 to this Agreement are nonetheless considered originating if:
a) the value of all non-originating materials that are used in the production
of the goods and do not undergo the required change in tariff
classification, does not exceed 10 percent of the FOB value of such
goods; and
b) the goods meet all other applicable requirements of this Chapter.
2. The value of materials referred to in subparagraph a) of paragraph 1 of this

Article shall be included in the value of non-originating materials for any
applicable VAC requirement.
ARTICLE 4.9
Direct Consignment
1. Preferential tariff treatment in accordance with this Chapter shall be granted

to originating goods provided that such goods are transported directly from
the territory of the exporting Party to the territory of the importing Party.
2. Notwithstanding paragraph 1 of this Article, originating goods may be

transported through the territory of one or more third countries, provided that:
a) transit through the territory of a third country is justified for

geographical reasons or related exclusively to transport requirements;
b) the goods have not entered into trade or consumption there; and
32
c) the goods have not undergone any operation there other than unloading,
reloading, storing or any necessary operation designed to preserve their
condition.
3. A declarant shall submit appropriate documentary evidence to the customs

authorities of the importing Party confirming that the conditions set out in
paragraph 2 of this Article have been fulfilled. Such evidence shall be
provided to the customs authorities of the importing Party by submission of:
a) the transport documents covering the passage from the territory of a

Party to the territory of the other Party containing:
i. an exact description of the goods;
ii. the dates of unloading and reloading of the goods (if the transport
documents do not contain the dates of unloading and reloading of
the goods, other supporting document containing such
information shall be submitted in addition to transport
documents); and
iii. where applicable:
- the names of the ships or other means of transport used;
- the containers’ numbers;
- the conditions under which the goods remained in the country of

transit in proper condition;
- the marks of the customs authorities of the country of transit; and
b) the commercial invoice in respect of the goods.
4. A declarant may submit other supporting documents to prove that the

requirements of paragraph 2 of this Article are fulfilled.
33
5. If the transport documents cannot be provided, a document issued by the

customs authorities of the country of transit containing all the information
referred to in subparagraph a) of paragraph 3 of this Article shall be
submitted.
6. If a declarant fails to provide the customs authorities of the importing Party

with documentary evidence of direct consignment, preferential tariff treatment
shall not be granted.
ARTICLE 4.10
Direct Purchase
1. The importing Party shall grant preferential tariff treatment for originating
goods in cases where the invoice is issued by a person registered in a third
country, provided that such goods meet the requirements of this Chapter.
2. Notwithstanding paragraph 1 of this Article the importing Party shall not grant
preferential tariff treatment in cases where the invoice is issued by a person
registered in a third country included in the list of offshore countries to be
established in a joint protocol. The respective competent authorities of the
Parties shall be entitled to adopt such protocol by mutual consent and shall
make it publicly available.
3. Without prejudice to paragraph 2 of this Article before the joint protocol

referred to in paragraph 2 of this Article is adopted, the list of offshore
countries or territories specified in Annex 4 to this Agreement shall apply.
ARTICLE 4.11
Packaging Materials for Retail Sale
1. Packaging materials and containers in which goods are packaged for retail
sale, if classified with the goods, shall be disregarded in determining whether
all the non-originating materials used in the production of those goods have
34
undergone the applicable change in tariff classification set out in Annex 3 to

this Agreement.
2. Notwithstanding paragraph 1 of this Article in determining whether the goods

fulfil the VAC requirement, the value of the packaging used for retail sale will
be counted as originating or non-originating materials, as the case may be, in
calculating the VAC of the goods.
ARTICLE 4.12
Packing Materials for Shipment
Packing materials and containers in which goods are packed exclusively for
transport shall not be taken into account for the purposes of establishing whether
the goods are originating.
ARTICLE 4.13
Accessories, Spare Parts, Tools and Instructional or Other Information

Materials
1. In determining whether the goods fulfil the change in tariff classification

requirements specified in Annex 3 to this Agreement, accessories, spare parts,
tools and instructional or other information materials, which are part of the
normal equipment and included in its FOB price, or which are not separately
invoiced, shall be considered as part of the goods in question and shall not be
taken into account in determining whether the goods qualify as originating.
2. Notwithstanding paragraph 1 of this Article in determining whether the goods

fulfil the VAC requirement, the value of accessories, spare parts, tools and
instructional or other information materials shall be taken into account as
originating materials or non-originating materials, as the case may be, in
calculating VAC of the goods.
3. This Article shall apply only where:

35
a) accessories, spare parts, tools and instructional or other information

materials presented with the goods are not invoiced separately from
such goods; and
b) the quantities and value of accessories, spare parts, tools and

instructional or other information materials presented with the goods
are customary for such goods.
ARTICLE 4.14
Sets
Sets, as defined in Rule 3 of the General Rules of the interpretation of the

Harmonized System, shall be regarded as originating when all component
products are originating. Nevertheless, when a set is composed of originating and
non-originating products, the set as a whole shall be regarded as originating,
provided that the value of the non-originating products does not exceed 15
percent of the FOB value of the set.
ARTICLE 4.15
Indirect Materials
In order to determine the origin of goods, the origin of the following indirect
materials which might be used in the production of such goods and not be
incorporated into such goods shall not be taken into account:
a) fuel and energy;
b) tools, dies and moulds;
c) spare parts and materials used in the maintenance of equipment and

buildings;
36
d) lubricants, greases, compounding materials and other materials used in

the production or used to operate equipment and buildings;
e) gloves, glasses, footwear, clothing, safety equipment;
f) equipment, devices used for testing or inspecting the goods;
g) catalyst and solvent; and
h) any other goods that are not incorporated into such goods but the use of
which in the production of such goods can be demonstrated to be a part
of that production.
SECTION II. DOCUMENTARY PROOF OF ORIGIN
ARTICLE 4.16
Claim for Preferential Tariff Treatment
1. For the purposes of obtaining preferential tariff treatment, the declarant shall
submit a Certificate of Origin to the customs authorities of the importing Party
in accordance with the requirements of this Section.
2. The Certificate of Origin submitted to the customs authorities of the importing

Party shall be an original, valid and in conformity with the format as set out in
Annex 5 to this Agreement and shall be duly completed in accordance with
the requirements set out in Annex 5 to this Agreement.
3. The authorised body of the exporting Party shall ensure that Certificates of
Origin are duly completed in accordance with the requirements set out in
Annex 5 to this Agreement.
4. The Certificate of Origin shall be valid for a period of 12 months from the
date of issuance and must be submitted to the customs authorities of the
importing Party within that period but not later than the moment of the
37
submission of the import customs declaration, except in circumstances

stipulated in paragraph 2 of Article 4.20 of this Agreement.
5. Where the central customs authorities and the authorised bodies of the Parties
have developed and implemented the Electronic Origin Certification and
Verification System (hereinafter referred to as “EOCVS”) referred to in
Article 4.29 of this Agreement, the customs authorities of the importing Party
in accordance with its respective domestic laws and regulations may not
require the submission of the original Certificate of Origin if the customs
declaration is submitted by electronic means. In this case, the date and number
of such Certificate of Origin shall be specified in the customs declaration.
Where the customs authorities of the importing Party have a reasonable doubt
as to the origin of the goods for which preferential tariff treatment is claimed
and/or there is a discrepancy with the information containing in the EOCVS,
the customs authorities of the importing Party may require the submission of
the original Certificate of Origin.
ARTICLE 4.17
Circumstances When Certificate of Origin Is Not Required
A Certificate of Origin is not required in order to obtain preferential tariff

treatment for commercial or non-commercial importation of originating goods
where the customs value does not exceed the amount of 200 US dollars or the
equivalent amount in the importing Party’s currency or such higher amount as
such importing Party may establish, provided that the importation does not form
part of one or more consignments that may reasonably be considered to have
been undertaken or arranged for the purposes of avoiding the submission of the
Certificate of Origin.
ARTICLE 4.18
Issuance of Certificate of Origin

38
1. The producer or exporter of the goods or its authorised representative shall

apply to an authorised body of the exporting Party for a Certificate of Origin
in writing or by electronic means if applicable.
2. The Certificate of Origin shall be issued by the authorised body of the

exporting Party to the producer or exporter of the goods or its authorised
representative prior to or at the time of exportation whenever the goods to be
exported can be considered originating in a Party within the meaning of this
Chapter.
3. The Certificate of Origin shall cover the goods under one consignment.
4. Each Certificate of Origin shall bear a unique reference number separately

given by the authorised body.
5. If all goods covered by the Certificate of Origin cannot be listed on one page,
additional sheets, as set out in Annex 5 to this Agreement, shall be used.
6. The Certificate of Origin shall be done in hard copy and shall comprise one
original and two copies.
7. One copy shall be retained by the authorised body of the exporting Party. The
other copy shall be retained by the exporter.
8. Without prejudice to paragraph 4 of Article 4.16 of this Agreement, in

exceptional cases, where a Certificate of Origin has not been issued prior to or
at the time of exportation it may be issued retroactively and shall be marked
“ISSUED RETROACTIVELY”.
9. The submitted original Certificate of Origin shall be retained by the customs

authorities of the importing Party except in circumstances stipulated in its
respective domestic laws and regulations.
39
ARTICLE 4.19
Minor Discrepancies
1. Where the origin of the goods is not in doubt, the discovery of minor
discrepancies between the information in the Certificate of Origin and in the
documents submitted to the customs authorities of the importing Party shall
not, of themselves, invalidate the Certificate of Origin, if such information in
fact corresponds to the goods submitted.
2. For multiple goods declared under the same Certificate of Origin, a problem
encountered with one of the goods listed shall not affect or delay the granting
of preferential tariff treatment for the remaining goods covered by the
Certificate of Origin.
ARTICLE 4.20
Specific Cases of Issuance of Certificate of Origin
1. In the event of theft, loss or destruction of a Certificate of Origin, the producer

or exporter of the goods or its authorised representative may apply to the
authorised body of the exporting Party for a certified duplicate of the original
Certificate of Origin, specifying the reasons for such application. The
duplicate shall be made on the basis of the previously issued Certificate of
Origin and supporting documents. A certified duplicate shall bear the words
“DUPLICATE OF THE CERTIFICATE OF ORIGIN NUMBER_DATE_”.
The certified duplicate of a Certificate of Origin shall be valid no longer than
12 months from the date of issuance of the original Certificate of Origin.
2. Due to accidental errors or omissions made in the original Certificate of

Origin, the authorised body shall issue the Certificate of Origin in substitution
for the original Certificate of Origin. In this instance, the Certificate of Origin
shall bear the words: “ISSUED IN SUBSTITUTION FOR THE
CERTIFICATE OF ORIGIN NUMBER___DATE___”. Such Certificate of
Origin shall be valid no longer than 12 months from the date of issuance of the
original Certificate of Origin.
40
ARTICLE 4.21
Alterations in Certificate of Origin
Neither erasures nor superimpositions shall be allowed on the Certificate of

Origin. Any alteration shall be made by striking out the erroneous data and
printing any additional information required. Such alteration shall be approved by
a person authorised to sign the Certificate of Origin and certified by an official
seal of the appropriate authorised body.
ARTICLE 4.22
Record-Keeping Requirements
1. The producer and/or exporter of the goods shall keep all records and copies of
the documents submitted for the issuance of a Certificate of Origin for the
period of no less than three years from the date of issuance of the Certificate
of Origin.
2. An importer who has been granted preferential tariff treatment must keep the
copy of the Certificate of Origin, based on the date when the preferential tariff
treatment was granted, for the period of no less than three years.
3. The application for a Certificate of Origin and all documents related to such
application shall be retained by the authorised body for the period of no less
than three years from the date of issuance of the Certificate of Origin.
SECTION III. PREFERENTIAL TARIFF TREATMENT
ARTICLE 4.23
Granting Preferential Tariff Treatment

41
1. Preferential tariff treatment under this Agreement shall be applied to

originating goods that satisfy the requirements of this Chapter.
2. Customs authorities of the importing Party shall grant preferential tariff

treatment to originating goods of the exporting Party provided that:
a) the goods satisfy the origin criteria referred to in Article 4.3 of this
Agreement;
b) the declarant demonstrates compliance with the requirements of this

Chapter;
c) a valid and duly completed original Certificate of Origin has been

submitted in accordance with the requirements of Section II
(Documentary Proof of Origin) of this Chapter to the customs
authorities of the importing Party. An original Certificate of Origin may
not be required to be submitted if the Parties have implemented the
EOCVS as stipulated in paragraph 5 of Article 4.16 of this Agreement.
3. Notwithstanding paragraph 2 of this Article, where the customs authorities of

the importing Party have a reasonable doubt as to the origin of the goods for
which preferential tariff treatment is claimed and/or to the authenticity of the
submitted Certificate of Origin, such customs authorities may suspend or deny
the application of preferential tariff treatment to such goods. However, the
goods can be released in accordance with the requirements of such Party’s
ARTICLE 4.24
Denial of Preferential Tariff Treatment
1. Where the goods do not meet the requirements of this Chapter or where the
importer or exporter of the goods fails to comply with the requirements of this
Chapter, the customs authorities of the importing Party may deny preferential
tariff treatment and recover unpaid customs duties in accordance with the
42
2. The customs authorities of the importing Party may deny preferential tariff
treatment if:
a) the goods do not meet the requirements of this Chapter to be considered

as originating in the exporting Party; and/or
b) other requirements of this Chapter are not met, including:
i. the requirements of Article 4.9 of this Agreement;
ii. the requirements of Article 4.10 of this Agreement;
iii. the submitted Certificate of Origin has not been duly completed
as specified in Annex 5 to this Agreement;
c) the verification procedures undertaken under Articles 4.30 and 4.31 of

this Agreement are unable to establish the origin of the goods or
indicate the inconsistency of the origin criteria;
d) the verification authority of the exporting Party has confirmed that the
Certificate of Origin had not been issued (i.e. forged) or had been
annulled (withdrawn);
e) the customs authorities of the importing Party receive no reply within a

maximum of six months after the date of a verification request made to
the verification authority of the exporting Party, or if the response to the
request does not contain sufficient information to conclude whether the
goods originate in a Party; or
f) the customs authorities of the importing Party within 60 days from the
date of dispatch of the notification, stipulated in paragraph 2 of Article
4.31 of this Agreement, do not receive a written consent from the
verification authority, pursuant to paragraph 5 of Article 4.31 of this
Agreement, for conducting a verification visit or receive a refusal to
conduct such verification visit.
43
3. Where the importing Party determines through verification procedures that an

exporter or producer of the goods has engaged in providing false and/or
incomplete information for the purposes of obtaining Certificates of Origin,
customs authorities of the importing Party may deny preferential tariff
treatment to identical goods covered by the Certificates of Origin issued to
that exporter or producer in accordance with its respective domestic laws and
regulations.
4. In cases as set out in subparagraph b) of paragraph 2 of this Article and

paragraph 1 of Article 4.25 of this Agreement customs authorities of the
importing Party are not required to make a verification request, as provided
for in Article 4.30 of this Agreement, to the authorised body for the purposes
of making decisions on denial of preferential tariff treatment.
ARTICLE 4.25
Temporary Suspension of Preferential Tariff Treatment
1. Where a Party has found:
a) systematic fraud regarding claims of preferential tariff treatment under

this Agreement in respect of the goods exported or produced by a
person of the other Party; or
b) that the other Party systematically and unjustifiably refuses to fulfil

obligations under Articles 4.30 and/or 4.31 of this Agreement,
such Party may in exceptional circumstances temporarily suspend preferential

tariff treatment under this Agreement.
2. Temporary suspension of preferential tariff treatment referred to in paragraph

1 of this Article may be applied to the goods concerned:
a) of a person where the importing Party has concluded that such person of
the exporting Party has committed systematic fraud regarding claims of
preferential tariff treatment under this Agreement;
44
b) of the person who is subject to verification request or verification visit

request referred to in subparagraph b) of paragraph 1 of this Article.
3. Where the importing Party has concluded that the already suspended
preferential tariff treatment in accordance with subparagraph a) of paragraph 2
of this Article had not resulted in cessation of systematic fraud regarding
claims of preferential tariff treatment under this Agreement, it may
temporarily suspend preferential tariff treatment with regard to identical goods
classified in the same tariff lines at 8-10 digit level of the respective domestic
nomenclatures of the Parties.
4. For the purposes of this Article:
a) a finding of systematic fraud can be made where a Party has concluded

that a person of the other Party has systematically provided false or
incorrect information in order to obtain preferential tariff treatment
under this Agreement as a result of an investigation based on objective,
compelling and verifiable information;
b) systematic and unjustifiable refusal to fulfil obligations under Articles

4.30 and/or 4.31 of this Agreement means a systematic refusal to verify
the originating status of the goods concerned and/or to carry out
verification visits as requested by a Party or absence of response to
verification and verification visit requests;
c) identical goods means the goods which are the same in all respects
including physical characteristics, quality and reputation.
5. A Party that has made a finding pursuant to paragraph 1 or 3 of this Article,

shall:
a) notify the other Party and provide the information and evidence upon
which the finding was based;
b) engage in consultations with the other Party with a view to achieving a

mutually acceptable solution.
45
6. If the Parties have not achieved a mutually acceptable solution within 30 days
of the engagement into consultations pursuant to subparagraph b) of paragraph
5 of this Article, the Party that has made the finding shall refer the issue to the
Joint Committee.
7. If the Joint Committee has not resolved the issue within 60 days of the referral
of such issue to the Joint Committee, the Party which has made the finding
may temporarily suspend preferential tariff treatment under this Agreement
pursuant to paragraphs 2 and 3 of this Article. The Party that has made a
decision on temporary suspension shall immediately notify the other Party and
the Joint Committee. Temporary suspension shall not apply to the goods
which have already been exported on the day that the temporary suspension
comes into effect. The day of such exportation shall be the date of a transport
document issued by a carrier.
8. Temporary suspension of preferential tariff treatment under this Article may

be applied until the exporting Party provides convincing evidence of the
ability to comply with the requirements of this Chapter and ensure the
fulfilment of all the requirements of this Chapter by producers or exporters of
the goods but shall not exceed a period of four months, which may be
renewed for no longer than three months.
9. Any suspension under this Article and any renewed suspension shall be
subject to periodic consultations of the Parties with a view to resolving the
issue.
SECTION IV. ADMINISTRATIVE COOPERATION
ARTICLE 4.26
Administrative Cooperation Language
Any notification or communication under this Section shall be conducted

between the Parties through the relevant authorities in the English language.
46
ARTICLE 4.27
Authorised Body and Verification Authority
Each Government of the Parties shall designate or maintain an authorised body

and a verification authority.
ARTICLE 4.28
Notifications
1. Prior to the issuance of any Certificate of Origin under this Agreement by the
authorised body, each Party shall provide the other Party, through the Ministry
of Industry and Trade of Viet Nam and the Eurasian Economic Commission,
respectively, with the names and addresses of each authorised body and
verification authority, together with the original and legible specimen
impressions of their stamps, sample of the Certificate of Origin to be used and
data on the security features of the Certificate of Origin.
2. Viet Nam shall provide the Eurasian Economic Commission with the original
information referred to in paragraph 1 of this Article in sextuplicate. The
Eurasian Economic Commission may request Viet Nam to provide additional
sets of such information.
3. Viet Nam and the Eurasian Economic Commission shall publish on the
internet the information on the names and addresses of the authorised body
and verification authority of each Party.
4. Any change to the information stipulated in this Article shall be notified by

the Ministry of Industry and Trade of Viet Nam and the Eurasian Economic
Commission in advance and in the same manner.
47
ARTICLE 4.29
Development and Implementation of Electronic Origin Certification

and Verification System
1. The Parties shall endeavour to implement an EOCVS no later than two years
from the date of entry into force of this Agreement.
2. The purpose of the EOCVS is the creation of a web-database that records the
details of all Certificates of Origin issued by an authorised body and that is
accessible to the customs authorities of the other Party to check the validity
and content of any issued Certificate of Origin.
3. The Parties shall establish a working group that shall endeavour to develop
and implement an EOCVS.
ARTICLE 4.30
Verification of Origin
1. Where the customs authorities of the importing Party have a reasonable doubt
about the authenticity of a Certificate of Origin and/or the compliance of the
goods, covered by the Certificate of Origin, with the origin criteria, pursuant
to Article 4.3 of this Agreement, and in the case of a random check, they may
send a request to the verification authority or authorised body of the exporting
Party to confirm the authenticity of the Certificate of Origin and/or the
compliance of the goods with the origin criteria and/or to provide, if
requested, documentary evidence from the producer and/or exporter of the
goods.
2. All verification requests shall be accompanied by sufficient information to

identify the concerned goods. A request to the verification authority of the
exporting Party shall be accompanied by a copy of the Certificate of Origin
and shall specify the circumstances and reasons for the request.
48
3. The recipient of a request under paragraph 1 of this Article shall respond to

the requesting customs authorities of the importing Party within six months
after the date of such verification request.
4. In response to a request under paragraph 1 of this Article verification authority

of the exporting Party shall clearly indicate whether the Certificate of Origin
is authentic and/or whether the goods can be considered as originating in such
Party including by providing requested documentary evidence received from
the producer and/or exporter of the goods. Before the response to the
verification request, paragraph 3 of Article 4.23 of this Agreement may be
applied. The customs duties paid shall be refunded if the received results of
the verification process confirm and clearly indicate that the goods qualify as
originating and all other requirements of this Chapter are met.
ARTICLE 4.31
Verification Visit
1. If the customs authorities of the importing Party are not satisfied with the
outcome of the verification referred to in Article 4.30 of this Agreement, they
may, under exceptional circumstances, request verification visits to the
exporting Party to review the records referred to in Article 4.22 of this
Agreement and/or observe the facilities used in the production of the goods.
2. Prior to conducting a verification visit pursuant to paragraph 1 of this Article

the customs authorities of the importing Party shall deliver a written
notification of their intention to conduct the verification visit to the
verification authority of the Party in the territory of which the verification visit
is to occur.
3. The written notification referred to in paragraph 2 of this Article shall be as

comprehensive as possible and shall include, inter alia:
a) the name of the customs authorities of the Party issuing the notification;
49
b) the names of the producer and/or exporter of the goods whose premises
are to be visited;
c) the proposed date of the verification visit;
d) the coverage of the proposed verification visit, including reference to

the goods subject to the verification and to the doubts regarding their
origin; and
e) the names and designation of the officials performing the verification

visit.
4. Verification authority shall send the verification request to the producer and/or
exporter of the goods whose premises are to be visited and transfer its written
consent to the requesting Party within 60 days from the date of dispatch of the
notification pursuant to paragraph 2 of this Article.
5. Where a written consent from the verification authority is not obtained within
60 days from the date of dispatch of the notification pursuant to paragraph 2
of this Article or the notifying Party receives a refusal to conduct such a
verification visit, the notifying Party shall deny preferential tariff treatment to
the goods referred to in the Certificate(s) of Origin that would have been
subject to the verification visit.
6. Any verification visit shall be launched within 60 days from the date of the
receipt of written consent and finished within a reasonable period of time.
7. The authority conducting the verification visit shall, within a maximum period
of 90 days from the first day the verification visit was conducted, provide the
producer and/or exporter of the goods, whose goods and premises are subject
to such verification, and the verification authority of the exporting Party with
a written determination of the outcomes of the verification visit.
8. The verification visit including the actual visit and determination of whether
the concerned goods are originating or not shall be carried out and its results
sent to the authorised body within a maximum of 210 days. Before the results
50
of the verification visit are available paragraph 3 of Article 4.23 of this

Agreement may be applied.
9. Any suspended or denied preferential tariff treatment shall be reinstated upon

the written determination that the goods qualify as originating and the certain
origin criteria under this Agreement are fulfilled.
10. Verification team must be formed by the central customs authority of the
importing Party in accordance with the respective domestic laws and
regulations.
11. The verification authority or the authorised body of the exporting Party shall
assist in the verification visit conducted by the customs authorities of the
importing Party.
12. The producer and/or exporter of the goods who has given consent for
verification visit, shall assist in its implementation, provide access to the
premises, financial (accounting) and production documents related to the
subject of the verification visit and shall provide any additional information
and/or documents, if so requested.
13. If there are obstacles by the authorities or entities of the inspected Party
during the verification visit, which result in the absence of possibility to
conduct the verification visit, the importing Party has the right to deny
preferential tariff treatment to the concerned goods.
14. All costs relating to the conducting of the verification visit shall be borne by
the importing Party.
ARTICLE 4.32
Confidentiality
All information provided pursuant to this Chapter shall be treated by the Parties
as confidential in accordance with their respective domestic laws and regulations.
51
It shall not be disclosed without the permission of the person or authority of the
Party providing it.
ARTICLE 4.33
Penalties or Other Measures against Fraudulent Acts
Each Party shall provide for criminal or administrative penalties for violations of
its respective laws and regulations related to this Chapter.
ARTICLE 4.34
Sub-Committee on Rules of Origin
1. For the purposes of effective implementation and operation of this Chapter,

the Parties hereby establish a Sub-Committee on Rules of Origin (hereinafter
referred to as “the ROO Sub-Committee”).
2. The ROO Sub-Committee shall have the following functions:
a) reviewing and making appropriate recommendations to the Joint

Committee and the Goods Committee on:
i. transposition of Annex 3 to this Agreement that is in the

nomenclature of the revised HS following periodic amendments
of the HS. Such transposition shall be carried out without
impairing the existing commitments and shall be completed in a
timely manner;
ii. implementation and operation of this Chapter, including

proposals for establishing implementing arrangements;
iii. failure to fulfil the obligations by the Parties, as determined in

this Section;
52
iv. technical amendments to this Chapter;
v. amendments to Annex 3 to this Agreement;
vi. disputes arising between the Parties during the implementation of

this Chapter; and
vii. any amendment to the provisions of this Chapter and to Annexes

3, 4 and 5 to this Agreement;
b) considering any other matter proposed by a Party relating to this

Chapter;
c) reporting the findings of the ROO Sub-Committee to the Goods

Committee; and
d) performing other functions as may be delegated by the Joint Committee

pursuant to Article 1.5 of this Agreement.
3. The ROO Sub-Committee shall be composed of the representatives of the

Parties and may invite representatives of other entities of the Parties with
necessary expertise relevant to the issues to be discussed upon mutual
agreement of the Parties.
4. The ROO Sub-Committee shall meet at such time and venue as may be agreed
by the Parties but not less than once a year.
5. A provisional agenda for each meeting shall be forwarded to the Parties, as a

general rule, no later than one month before the meeting.
53
SECTION V. TRANSITIONAL PROVISIONS
ARTICLE 4.35
Goods in Transportation or Storage
Originating goods which have been in transportation from the exporting Party to
the importing Party, or which have been in temporary storage in a bonded area in
the importing Party for a period not exceeding one year before the entry into
force of this Agreement, shall be granted preferential tariff treatment if they are
imported into the importing Party on or after the date of entry into force of this
Agreement, subject to the submission of a Certificate of Origin issued
retroactively to the customs authorities of the importing Party and subject to the
respective domestic laws and regulations or administrative practices of the
importing Party.
54
CHAPTER 5
CUSTOMS ADMINISTRATION AND TRADE FACILITATION
ARTICLE 5.1
Scope
This Chapter shall apply to customs administration measures and performance of

customs operations required for the release of goods traded between the Parties,
in order to promote:
a) transparency of customs procedures and customs formalities;
b) trade facilitation and harmonisation of customs operations; and
c) customs cooperation including exchange of information between the

central customs authorities of the Parties.
ARTICLE 5.2
Definitions
a) “customs administration” means organisational and management

activities of the customs authorities of a Party as well as activities carried
out within the regulatory framework while implementing the objectives
in the customs area;
b) “customs laws and regulations” means any norm and regulation

enforced by the customs authorities of a Party including laws, rulings,
decrees, writs, rules and others;
c) “express consignments” means goods delivered through high-speed

transportation systems by any type of transport, using an electronic
55
information management system and tracking the movement in order to

deliver the goods to the recipient in accordance with an individual
invoice for the minimum possible or a fixed period of time, except for
goods sent by international post;
d) “inward processing” means the customs procedure under which foreign

goods can be brought into the customs territory of a Party conditionally
relieved from payment of customs duties and taxes on the basis that such
goods are intended for processing or repair and subsequent exportation
from the customs territory of such Party within a specified period of
time;
e) “outward processing” means the customs procedure under which

goods, which are in free circulation in the customs territory of a Party,
may be temporarily exported for processing abroad and then re-imported
with total exemption from customs duties and taxes; and
f) “temporary admission” means the customs procedure under which

foreign goods can be brought into the customs territory of a Party
conditionally relieved totally or partially from payment of customs duties
and taxes on the basis that such goods shall be re-exported within a
specified period of time in accordance with the customs laws and
regulations of such Party.
ARTICLE 5.3
Facilitation of Customs Administration Measures
1. Each Party shall ensure that the customs administration measures applied by
its customs authorities are predictable, consistent and transparent.
2. Customs administration measures of each Party shall, where possible and to

the extent permitted by its customs laws and regulations, be based on the
standards and recommended practices of the World Customs Organization.
56
3. The central customs authorities of each Party shall endeavour to review their
customs administration measures with a view to simplifying such measures in
order to facilitate trade.
ARTICLE 5.4
Release of Goods
1. Each Party shall adopt or maintain the performance of customs procedures

and operations for the efficient release of goods in order to facilitate trade
between the Parties. This shall not require a Party to release goods where its
requirements for the release of such goods have not been met.
2. Pursuant to paragraph 1 of this Article, each Party shall:
a) provide for the release of goods within a period of time no longer than
48 hours from the registration of a customs declaration except in the
circumstances stipulated in the customs laws and regulations of the
Parties; and
b) endeavour to adopt or maintain electronic submission and processing of

customs information in advance of arrival of the goods to expedite the
release of goods upon arrival.
ARTICLE 5.5
Risk Management
Customs authorities of the Parties shall apply a risk management system by

means of a systematic assessment of risks to focus inspections on high-risk goods
and simplify the application of customs operations on low-risk goods.
57
ARTICLE 5.6
Customs Cooperation
1. With a view to facilitating the effective operation of this Agreement, central

customs authorities of the Parties shall encourage cooperation with each other
on key customs issues that affect goods traded between the Parties.
2. Where a central customs authority of a Party in accordance with such Party’s

respective laws and regulations has a reasonable suspicion of an unlawful
activity, such central customs authority may request the central customs
authority of the other Party to provide specific confidential information
normally collected in connection with the exportation and/or importation of
goods.
3. A Party’s request under paragraph 2 of this Article shall be in writing,

specifying the purpose for which the information is sought and shall be
accompanied by sufficient information to identify the concerned goods.
4. The requested Party under paragraph 2 of this Article shall provide a written
response containing the requested information.
5. The central customs authority of the requested Party shall endeavour to

provide any other information to the central customs authority of the
requesting Party that would assist such central customs authority in
determining whether imports from or exports to the requesting Party are in
compliance with such Party’s respective laws and regulations.
6. The central customs authorities of the Parties shall endeavour to establish and
maintain channels of communication for customs cooperation, including
establishing contact points that will facilitate the rapid and secure exchange of
information, and improve coordination on customs issues.
58
ARTICLE 5.7
Information Exchange
1. In order to facilitate the performance of customs operations, to expedite the

release of goods and to prevent violations of customs laws and regulations, the
central customs authorities of the Parties shall create and implement electronic
information exchange on a regular basis between them (hereinafter referred to
as “electronic information exchange”) within five years from the date of entry
into force of this Agreement.
2. On behalf of the Eurasian Economic Union, the Eurasian Economic

Commission shall coordinate the creation and facilitate the operation of the
electronic information exchange.
3. For the purposes of this Article, “information” means relevant and authentic
data from customs declarations and transport documents.
4. Within one year from the date of entry into force of this Agreement, the
central customs authorities of the Member States of the Eurasian Economic
Union with the assistance of the Eurasian Economic Commission and the
central customs authority of Viet Nam shall enter into consultations in order to
develop electronic information exchange in accordance with paragraph 6 of
this Article.
5. All requirements and specifications for the operation of electronic information

exchange as well as specific contents of information to be exchanged shall be
set out in separate protocols between the central customs authorities of the
Parties. Such information shall be sufficient for identification of transported
goods and performance of efficient customs control.
6. The implementation of electronic information exchange shall be divided into

the following stages:
a) not later than two years from the date of entry into force of this
Agreement the authorities involved shall establish trial electronic
information exchange between individual customs authorities of the
59
Parties which are responsible for the customs clearance of particular

goods traded between the Parties. Such individual customs authorities
and such particular goods shall be determined by the central customs
authorities of the Parties in a protocol stipulated in paragraph 5 of this
Article;
b) not later than three years from the date of entry into force of this
Agreement electronic information exchange shall cover goods for
which the trade flow between the Parties will have increased more than
20 percent from the date of entry into force of this Agreement; and
c) not later than five years from the date of entry into force of this
Agreement central customs authorities of the Parties shall provide the
application of electronic information exchange, covering all goods
traded between the Parties, for all customs authorities concerned.
7. Any information exchanged in accordance with the provisions of this Article

shall be treated as confidential and shall be used for customs purposes only.
8. The operation of electronic information exchange shall not hinder the

application or establishment of any information exchange based on
international obligations of the Parties.
ARTICLE 5.8
Publication
1. The competent authorities of each Party shall publish, on the internet or

through any other appropriate media, the customs laws and regulations of such
Party.
2. The competent authorities of each Party shall designate or maintain one or

more enquiry points to process enquiries from interested persons concerning
customs issues, and shall publish on the internet information concerning such
enquiry points.
60
3. The competent authorities of a Party shall inform the competent authorities of

the other Party of the contact information of the designated enquiry points.
4. To the extent possible, each Party shall publish in advance its laws and
regulations of general application governing customs issues that it proposes to
adopt and shall provide interested persons with an opportunity to comment
before adopting such laws and regulations.
ARTICLE 5.9
Advance Rulings
1. Customs authorities of the Parties shall provide any applicant registered in the
importing Party in writing with advance rulings in respect of tariff
classification, origin of goods and any additional matter which a Party
considers appropriate. The Parties shall endeavour to adopt or maintain the
issuance of advance rulings in respect of the application of the method to be
used for determining the customs value.
2. Each Party shall adopt or maintain procedures for advance rulings, which
shall:
a) provide that the applicant may apply for an advance ruling before the
importation of goods;
b) require that the applicant for an advance ruling provide a detailed

description of the goods and all relevant information needed to process
an advance ruling;
c) provide that its customs authority may, within 30 days from the date of
application, request that the applicant provide additional information
within a specified period of time;
d) provide that any advance ruling be based on the facts and circumstances
presented by the applicant and any other relevant information available
to its customs authority; and
61
e) provide that an advance ruling be issued to the applicant expeditiously,

or in any case within 90 days from the date of the application or 60 days
from the date of receipt of all necessary additional information.
3. A customs authority of a Party may reject requests for an advance ruling

where the additional information requested by it in accordance with
subparagraph c) of paragraph 2 of this Article is not provided within the
specified period of time.
4. An advance ruling is valid for at least three years from the date of issuance, or
such other period of time exceeding the specified period as required by the
customs laws and regulations of the Parties.
5. A customs authority of a Party may modify or revoke an advance ruling:
a) upon a determination that the advance ruling was based on false or

inaccurate information;
b) if there is a change in the customs laws and regulations consistent with

this Agreement; or
c) if there is a change in material facts or circumstances on which the

advance ruling is based.
6. Subject to confidentiality requirements, the customs authorities of the Parties

shall publish advance rulings.
ARTICLE 5.10
Customs Valuation
The customs value of goods traded between the Parties shall be determined in
accordance with the customs laws and regulations of the importing Party based
on the provisions of Article VII of GATT 1994 and the Agreement on
Implementation of Article VII of the General Agreement on Tariffs and Trade
1994, in Annex 1A to the WTO Agreement.
62
ARTICLE 5.11
Tariff Classification
The Parties shall apply nomenclatures of goods based on the current edition of
the Harmonized System to goods traded between them.
ARTICLE 5.12
Transit of Goods
The Parties may mutually recognise identification tools and documents applied
by the Parties required for the control of goods and vessels as well as other means
of transport in transit.
ARTICLE 5.13
Express Consignments
1. Customs authorities of the Parties shall provide expedited customs clearance

for express consignments while maintaining appropriate customs control.
2. Express consignments shall be placed under the customs procedure in an

expedited manner in accordance with the customs laws and regulations of the
respective Party.
ARTICLE 5.14
Temporary Admission of Goods
In accordance with international standards, customs authorities of the Parties

shall endeavour to facilitate the performance of customs operations for the
customs procedure of temporary admission of goods.
63
ARTICLE 5.15
Inward Processing and Outward Processing
In accordance with international standards, customs authorities of the Parties

shall endeavour to facilitate the performance of customs operations for temporary
importation and exportation of goods for inward processing or outward
processing.
ARTICLE 5.16
Confidentiality
All information provided in accordance with this Chapter, excluding statistics,

shall be treated by the Parties as confidential in accordance with the respective
laws and regulations of the Parties. It shall not be disclosed by the authorities of
the Parties without the permission of the person or authority of the Party
providing such information.
ARTICLE 5.17
Customs Agents (Representatives)
The customs laws and regulations of each Party shall enable declarants to submit
their customs declarations without requiring mandatory recourse to the services
of customs agents (representatives).
ARTICLE 5.18
Automation
1. The customs authorities of the Parties shall ensure that customs operations
may be performed with the use of information systems and information
technologies, including those based on electronic means of communication.
64
2. The central customs authorities of the Parties shall provide declarants with an
opportunity to declare goods in electronic form.
ARTICLE 5.19
Review and Appeal
Each Party shall ensure the possibility of administrative review of customs

decisions affecting rights of interested persons and judicial appeal against such
decisions in accordance with the laws and regulations of the respective Party.
ARTICLE 5.20
Penalties
Each Party shall adopt or maintain measures that allow for the imposition of
administrative penalties for violations of its customs laws and regulations during
importation and exportation, including provisions on tariff classification, customs
valuation, determination of country of origin and obtaining preferential tariff
treatment under this Agreement.
65
CHAPTER 6
TECHNICAL BARRIERS TO TRADE
ARTICLE 6.1
Objectives
The objectives of this Chapter are to facilitate trade in goods between the Parties
by:
a) promoting cooperation on the preparation, adoption and application of

standards, technical regulations and conformity assessment procedures in
order to eliminate unnecessary technical barriers to trade, reduce, where
possible, unnecessary costs to exporters;
b) promoting mutual understanding of each Party’s standards, technical

regulations and conformity assessment procedures;
c) strengthening information exchange between the Parties in relation to the

preparation, adoption and application of standards, technical regulations
and conformity assessment procedures;
d) strengthening cooperation between the Parties in the work of

international bodies related to standardisation and conformity
assessment;
e) providing a framework to realise these objectives; and
f) promoting cooperation on issues relating to technical barriers to trade.
ARTICLE 6.2
Scope
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1. This Chapter shall apply to all standards, technical regulations and conformity
assessment procedures of the Parties that may directly or indirectly affect the
trade in goods between the Parties except:
a) purchasing specifications prepared by governmental bodies for

production or consumption requirements of governmental bodies; and
b) sanitary or phytosanitary measures as defined in Chapter 7 (Sanitary

and Phytosanitary Measures) of this Agreement.
2. In accordance with this Chapter and the TBT Agreement each Party has the
right to prepare, adopt and apply standards, technical regulations and
conformity assessment procedures.
ARTICLE 6.3
Definitions
For the purposes of this Chapter, the definitions set out in Annex 1 to the TBT
Agreement shall apply, mutatis mutandis.
ARTICLE 6.4
Incorporation of the TBT Agreement
Except as otherwise provided for in this Chapter, the TBT Agreement shall apply
between the Parties and is incorporated into and form part of this Agreement,
mutatis mutandis.
ARTICLE 6.5
Transparency
1. The Parties acknowledge the importance of transparency with regard to the

67
preparation, adoption and application of standards, technical regulations and

conformity assessment procedures.
2. Each Party should provide the period for comments of at least 60 days
following the publication of a notice of the kind envisaged in Articles 2.9
and/or 5.6 of the TBT Agreement, except for situations where urgent
problems of safety, health, environmental protection or national security arise
or threaten to arise for the Parties.
3. Each Party should allow at least 180 days from the adoption of a technical
regulation and/or conformity assessment procedure and their/its entry into
force, except for situations where urgent problems of safety, health,
environmental protection or national security arise or threaten to arise for the
Parties.
4. The Parties shall, to the fullest extent possible, endeavour to exchange

information in the English language.
ARTICLE 6.6
Marking and Labelling
The Parties note that in accordance with paragraph 1 of Annex 1 to the TBT
Agreement, a technical regulation may include or deal exclusively with marking
or labelling requirements, and agree that where such technical regulation contains
mandatory marking or labelling requirements, they will act in accordance with
the principles of Article 2.2 of the TBT Agreement that technical regulations
should not be prepared, adopted and applied with a view to, or with the effect of,
creating unnecessary obstacles to international trade, and should not be more
trade restrictive than necessary to fulfil a legitimate objective.
ARTICLE 6.7
Consultations
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1. Where the day to day application of standards, technical regulations and

conformity assessment procedures is affecting trade between the Parties, a
Party may request consultations aimed at resolving the matter. A request for
consultations shall be directed to the other Party’s contact point established in
accordance with Article 6.9 of this Agreement.
2. Each Party shall make every effort to give prompt and positive consideration
to any request from the other Party for consultations on issues relating to the
implementation of this Chapter.
3. Where a matter covered under this Chapter cannot be clarified or resolved as a

result of consultations, the Parties may establish an ad hoc working group
with a view to identifying a workable and practical solution that would
facilitate trade. The working group shall comprise representatives of the
Parties.
4. Where a Party declines a request from the other Party to establish a working
group, it shall, upon request, explain the reasons for its decision.
ARTICLE 6.8
Cooperation
1. For the purposes of ensuring that standards, technical regulations and

conformity assessment procedures do not create unnecessary obstacles to
trade in goods between the Parties, the Parties shall, where possible, cooperate
in the field of standards, technical regulations and conformity assessment
procedures.
2. The cooperation pursuant to paragraph 1 of this Article may include the

following:
a) holding joint seminars in order to enhance mutual understanding of

standards, technical regulations and conformity assessment procedures
in each Party;
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b) exchanging officials of the Parties for training purposes;
c) exchanging information on standards, technical regulations and

conformity assessment procedures;
d) strengthening cooperation in international fora, including international

bodies related to standardisation and conformity assessment and the
WTO Committee on Technical Barriers to Trade, in areas of mutual
interest;
e) encouraging the bodies responsible for standards, technical regulations

and conformity assessment procedures in each Party to cooperate on
matters of mutual interest;
f) providing scientific and technical cooperation in order to improve the

quality of technical regulations; and
g) making efficient use of regulatory resources.
3. The implementation of paragraph 2 of this Article shall be subject to the

availability of appropriated funds and the respective laws and regulations of
each Party.
4. Cooperation on issues relating to technical barriers to trade may be

undertaken, inter alia, through dialogue in appropriate channels, joint projects
and technical assistance.
5. The Parties may conduct joint projects, technical assistance and cooperation
on standards, technical regulations and conformity assessment procedures in
selected areas, as mutually agreed.
6. The Parties undertake to exchange views on matters of market surveillance

and enforcement activities in the field thereof relating to technical barriers to
trade.
7. Upon request, a Party shall give appropriate consideration to proposals that

the other Party makes for cooperation under this Chapter.
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8. In order to promote cooperation in the framework of this Chapter, the Parties

may conclude ad hoc arrangements on the matters covered therein.
ARTICLE 6.9
Competent Authorities and Contact Points
1. The Parties shall designate competent authorities and contact points and
exchange information containing the names of the designated competent
authorities and contact points, contact details of relevant officials in such
competent authorities and contact points, including telephone and facsimile
numbers, email addresses and other relevant details.
2. The Parties shall promptly notify each other of any change to their competent
authorities and contact points or amendment to the information of the relevant
officials.
3. The contact points’ functions shall include the following:
a) facilitating the exchange of information between the Parties on

standards, technical regulations and conformity assessment procedures
in response to all reasonable requests for such information from a Party;
and
b) referring the enquiries from a Party to the appropriate regulatory

authorities.
4. The competent authorities’ functions shall include:
a) monitoring the implementation of this Chapter;
b) facilitating cooperation activities, as appropriate, in accordance with

Article 6.8 of this Agreement;
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c) promptly addressing any issue that a Party raises related to the

preparation, adoption, application or enforcement of standards,
technical regulations and conformity assessment procedures;
d) facilitating consultations on any matter arising under this Chapter upon

request of a Party;
e) taking any other action that the Parties consider will assist them in
implementing this Chapter; and
f) carrying out other functions as may be delegated by the Joint

Committee.
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CHAPTER 7
SANITARY AND PHYTOSANITARY MEASURES
ARTICLE 7.1
Objectives
The objectives of this Chapter are to facilitate trade in goods between the Parties
by:
a) seeking to resolve issues relating to sanitary and phytosanitary

measures while protecting human, animal or plant life or health in the
territories of the Parties;
b) strengthening cooperation between the Parties and among their

competent authorities including in the development and application of
sanitary and phytosanitary measures as defined in the SPS Agreement;
and
c) facilitating information exchange in the field of sanitary and

phytosanitary measures and enhancing the knowledge and
understanding of each Party’s regulatory system.
ARTICLE 7.2
Scope
This Chapter shall apply to sanitary and phytosanitary measures of the Parties
that may, directly or indirectly, affect trade between the Parties.
ARTICLE 7.3
Definitions
73
a) the definitions set out in Annex A to the SPS Agreement shall apply,
mutatis mutandis; and
b) the relevant definitions developed by the international organisations: the

Codex Alimentarius Commission, the World Organization for Animal
Health (hereinafter referred to as “OIE”) and international and regional
organisations operating within the framework of the International Plant
Protection Convention (hereinafter referred to as “IPPC”) shall apply in
the implementation of this Chapter, mutatis mutandis.
ARTICLE 7.4
Incorporation of the SPS Agreement
Except as otherwise provided for in this Chapter, the SPS Agreement shall apply
between the Parties and is incorporated into and form part of this Agreement,
mutatis mutandis.
ARTICLE 7.5
Equivalence
1. The Parties recognise that equivalence is an important means to facilitate

trade.
2. The Parties may recognise equivalence of a measure, a group of measures or a

system to the extent feasible and appropriate.
ARTICLE 7.6
Adaptation to Regional Conditions

74
1. The Parties recognise the concept of adaptation to regional conditions,

including pest- or disease-free areas and areas of low pest or disease
prevalence, as an important means to facilitate trade.
2. When determining such areas, the Parties shall consider factors such as
information of the Parties confirming the status of pest- or disease-free areas
and areas of low pest or disease prevalence, the results of an audit, inspection
monitoring, information provided by OIE and IPPC and other factors.
ARTICLE 7.7
Audit and Inspections
1. Each Party may carry out an audit and/or inspection in order to ensure the
safety of the products (goods).
2. The Parties agree to enhance further their cooperation in the field of audits
and inspections.
3. In undertaking audits and/or inspections, each Party shall take into account
relevant international standards, guidelines and recommendations.
4. The auditing or inspecting Party shall provide the audited or inspected Party
the opportunities to comment on the findings of the audits and/or inspections.
5. Costs incurred by the auditing or inspecting Party shall be borne by the

auditing or inspecting Party, unless both Parties agree otherwise.
ARTICLE 7.8
Documents Confirming Safety
1. Where a document is required to confirm safety of the products (goods) traded

between the Parties, the exporting Party shall ensure compliance with the
requirements of the importing Party. The importing Party shall ensure the
75
requirements of the documents for confirming safety of the products (goods)

traded between the Parties are applied only to the extent necessary to protect
human, animal or plant life or health.
2. The Parties shall take into account relevant international standards, guidelines
and recommendations, when developing the documents for confirming safety
of the products (goods), as appropriate.
3. The Parties may agree to develop bilateral documents for confirming safety of
specific product (good) or groups of products (goods) traded between the
Parties.
4. The Parties shall promote the use of electronic technologies in the documents
for confirming safety of the products (goods) in order to facilitate trade.
ARTICLE 7.9
Emergency Measures
1. Where a Party adopts emergency measures necessary to protect human,

animal or plant life or health, such Party shall as soon as possible notify such
measures to the other Party. The Party that adopted the emergency measures
shall take into consideration relevant information provided by the other Party.
2. Upon request of either Party, consultations of the relevant competent

authorities regarding the emergency measures shall be held as soon as
possible unless otherwise agreed by the Parties.
ARTICLE 7.10
Contact Points and Information Exchange
1. The Parties shall notify each other of the contact points for the provision of
information in accordance with this Chapter and of their designated competent
authorities responsible for matters covered by this Chapter and the areas of
76
responsibility of such competent authorities.
2. The Parties shall inform each other of any change to their contact points or
any significant change in the structure or competence of their competent
authorities.
3. The Parties, through their contact points, shall provide each other in a timely
manner with a written notification of:
a) any significant food safety issue or change in animal or plant health,

disease or pest status in their territories; and
b) any change to the legal frameworks or other sanitary or phytosanitary

measures.
4. The Parties, through their contact points, shall inform each other of systematic
or significant cases of non-compliance of sanitary and phytosanitary measures
and exchange relevant documents which confirm this non-compliance.
ARTICLE 7.11
Cooperation
1. The Parties agree to cooperate in order to facilitate the implementation of this

Chapter.
2. The Parties shall explore opportunities for further cooperation, collaboration

and information exchange on sanitary and phytosanitary matters of mutual
interest consistent with the provisions of this Chapter. Such opportunities may
include trade facilitation initiatives and technical assistance.
3. The Parties shall aim to work together in international fora, including

international organisations, and in areas of mutual interest.
77
4. In order to promote cooperation within the framework of this Chapter, the

Parties may conclude ad hoc arrangements on sanitary and phytosanitary
measures.
ARTICLE 7.12
Consultations
1. Where a Party considers that a sanitary or phytosanitary measure is affecting

its trade with the other Party, it may, through the relevant contact points,
request consultations with the aim of resolving the matter.
2. A Party shall consider to hold consultations under the context of this Chapter,
upon request of the other Party, with the aim of resolving matters arising
under this Chapter.
3. In case either Party considers that the matter cannot be resolved through
consultations in accordance with this Article, such Party shall have the right
to seek resolution through the dispute settlement mechanism provided for in
Chapter 14 (Dispute Settlement) of this Agreement.
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CHAPTER 8
TRADE IN SERVICES, INVESTMENT AND MOVEMENT OF
NATURAL PERSONS
SECTION I. HORIZONTAL PROVISIONS
ARTICLE 8.1
Objectives
The objectives of this Chapter are to encourage efficiency, competition and

economic growth of the Parties to this Chapter by facilitating the expansion of
trade in services, establishment, investment and movement of natural persons of
the Parties to this Chapter on the basis of a transparent and stable legal
framework, while recognising the right of the Parties to this Chapter to regulate
in order to meet national policy objectives.
ARTICLE 8.2
Scope
1. This Chapter shall apply only between Viet Nam and the Russian Federation,
hereinafter referred to in this Chapter as the “Parties to this Chapter”.
2. This Chapter shall apply to measures by the Parties to this Chapter affecting
trade in services, establishment, investments and movement of natural
persons.
3. In respect of air transport services, this Chapter shall not apply to measures
affecting air traffic rights, however granted, or measures affecting services
directly related to the exercise of air traffic rights, except the measures
affecting aircraft repair and maintenance services, the selling and marketing
of air transport services, computer reservation system services as provided for
in paragraph 6 of the Annex on Air Transport Services of GATS. The
79
definitions of paragraph 6 of the Annex on Air Transport Services of GATS

are incorporated into and form part of this Chapter.
4. This Chapter shall not apply to:
a) government procurement, which is subject to Chapter 10 of this

Agreement;
b) measures affecting natural persons seeking access to the employment

market of a Party to this Chapter; or
c) measures regarding citizenship, residence or employment on a

permanent basis.
5. This Chapter shall not prevent a Party to this Chapter from applying measures
to regulate the entry of natural persons of the other Party to this Chapter into
or their temporary stay in its territory, including those necessary to protect the
integrity of, and to ensure the orderly movement of natural persons across its
borders, provided that such measures are not applied in such a manner as to
nullify or impair the benefits accruing to the other Party to this Chapter under
the terms of a specific commitment. The sole fact of requiring a visa for
natural persons of a Party to this Chapter and not for those of any other third
country shall not be regarded as nullifying or impairing benefits under the
commitments made in this Chapter.
ARTICLE 8.3
Definitions
a) “trade in services” means the supply of a service:
i. from the territory of a Party to this Chapter into the territory of

the other Party to this Chapter;
80
ii. in the territory of a Party to this Chapter to the service consumer

of the other Party to this Chapter;
b) “supply of a service” includes production, distribution, marketing, sale

and delivery of a service;
c) “services” includes any service in any sector except services supplied

neither on a commercial basis nor in competition with one or more
service suppliers;
d) “service supplier” means any person that supplies a service;
e) “service consumer” means any person that receives or uses a service;
f) “person” means either a natural person or a juridical person;
g) “natural person of a Party to this Chapter” means a natural person

who, under the applicable laws and regulations of that Party to this
Chapter, is a national of such Party to this Chapter;
h) “juridical person” means any legal entity duly constituted or otherwise

organised under applicable laws and regulations;
A juridical person is:
“owned” by persons of a Party to this Chapter if more than 50

percent of the equity interest in it is beneficially owned by persons of
such Party to this Chapter;
“controlled” by persons of a Party to this Chapter if such persons

have the power to name a majority of its directors or otherwise to
legally direct its actions.
i) “juridical person of a Party to this Chapter” means a juridical

person which is constituted or otherwise organised under the laws and
regulations of such Party;
81
j) “economic integration agreements” means international agreements

complying with the requirements of Articles V and/or Vbis of GATS;
k) “measure” means any measure by a Party to this Chapter, whether in

form of a law, regulation, rule, procedure, decision, administrative
action or any other form;
l) “measure by a Party to this Chapter” means measures taken by:
i. central, regional or local governments and authorities of that

Party to this Chapter; and
ii. non-governmental bodies in the exercise of powers delegated by

central, regional or local governments or authorities of that Party
to this Chapter.
m) “measures by Parties to this Chapter affecting trade in services”

include measures in respect of:
i. the purchase, payment or use of a service;
ii. the access to and use of, in connection with the supply of a
service, services which are required by the Parties to this Chapter
to be offered to the public generally.
n) “measures by Parties to this Chapter affecting establishment,

commercial presence and activities” include measures in respect of
establishment, commercial presence of juridical persons of a Party to
this Chapter in the territory of the other Party to this Chapter or
activities thereof;
o) “establishment” means:
i. the establishment (or constitution) and/or acquisition of a

juridical person (participation in the capital of an existing
juridical person) of any legal form and ownership provided for in
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laws and regulations of a Party to this Chapter within the territory

of which this person is being established, constituted or acquired;
ii. the acquisition of control over a juridical person of a Party to this

Chapter by legally determining, directly or indirectly, the
decisions taken by such juridical person, including through
voting shares (stocks), participation in managing bodies of such
juridical person (including in board of directors, supervisory
board, et cetera);
iii. the creation of a branch; or
iv. the creation of a representative office,
for the purposes of supplying a service and/or performing an economic

activity in sectors other than services.
p) “commercial presence” means juridical persons established,

constituted, acquired or controlled and/or branches or a representative
office created for the purpose of supplying a service and/or performing
an economic activity in sectors other than services. For the purposes of
this Section commercial presence established, constituted, acquired,
controlled or created is hereinafter referred to as “commercial presence
set up”;
q) “activities” means activities of industrial, commercial or professional

character of the juridical persons, branches, representative offices,
referred to in subparagraph o) of this Article, except for those carried
out neither on a commercial basis nor in competition with one or more
persons engaged in the same type of activities.
ARTICLE 8.4
Other International Agreements

83
In case an international agreement to which both Parties to this Chapter are party,
including the WTO Agreement, provides for more favourable treatment in respect
of matters covered by this Chapter for their persons (service suppliers) and/or
their commercial presences, services or investments, such more favourable
treatment shall not be affected by this Agreement.
ARTICLE 8.5
Domestic Regulation
1. Article VI of GATS shall apply between the Parties to this Chapter, mutatis
mutandis.
2. Without prejudice to the right of a Party to this Chapter to establish and apply
licensing procedures and requirements, regarding the services sectors in
respect of which such Party has undertaken specific commitments in
accordance with Section II (Trade in Services) of this Chapter, as well as
regarding the establishment and activities covered by Section III
(Establishment, Commercial Presence and Activities) of this Chapter such
Party shall ensure that:
a) its licensing procedures are not in themselves a restriction on the

establishment, activities or supply of a service, and that its licensing
requirements directly related to eligibility to supply a service were not
in themselves an unjustified barrier to the supply of the service;
b) its competent authorities make a decision on granting/denial of a licence

without undue delay and no later than the period specified in relevant
laws and regulations of such Party;
c) any fees charged in connection with the filing and review of an

application for a licence would not in themselves be a restriction on the
supply of the service, establishment or activities;
d) once any period for review of an application for a licence established in

the laws and regulations of such Party lapsed, and upon the request of
84
an applicant, such Party’s competent authority informs the applicant of

the status of its application and whether it was considered complete. If
the authority requires additional information from the applicant, it shall
notify the applicant without undue delay and specify the additional
information required to complete the application. Applicants shall have
the opportunity to provide the additional information requested and to
make technical corrections in the application. An application shall not
be considered complete until all information and documents specified in
the respective laws and regulations of that Party are received;
e) upon the written request of an unsuccessful applicant, the competent

authority that has denied an application will inform the applicant in
writing of the reasons for the denial of the application. However, this
provision shall not be construed to require a regulatory authority to
disclose information, where that disclosure would impede law
enforcement or otherwise be contrary to the public interest or essential
security interests;
f) where an application is denied, an applicant shall have the right to

submit a new application that attempts to address any prior problems
for licensing.
ARTICLE 8.6
Contact Points
The Parties to this Chapter shall designate their contact points to facilitate
communications between the Parties to this Chapter on the issues covered by this
Chapter and shall exchange information on the details of such contact points. The
Parties to this Chapter shall notify each other promptly of any amendments to the
details of their contact points.
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ARTICLE 8.7
Denial of Benefits
A Party to this Chapter may deny benefits of this Section to a person of the other
Party to this Chapter, if the former Party establishes that this person is a juridical
person that has no substantive business operations in the territory of the other
Party to this Chapter and is owned or controlled by persons of either:
a) any third country; or
b) the former Party.
ARTICLE 8.8
Restrictions to Safeguard the Balance of Payments
1. Notwithstanding the provisions of Articles 8.18 and 8.37 of this Agreement

each Party to this Chapter may adopt and maintain restrictions on trade in
services, establishment and investments in respect of which commitments
were undertaken by such Party in accordance with this Chapter, including on
payments or transfers for transactions related to such commitments referred to
in Articles 8.18 and 8.37 of this Agreement in the event of serious balance of
payments and external financial difficulties and threat thereof and subject to
the condition that such restrictions:
a) shall be applied on a most-favoured-nation basis;
b) shall be consistent with the Articles of Agreement of the International

Monetary Fund;
c) shall avoid unnecessary damage to the commercial, economic and

financial interests of the other Party to this Chapter;
d) shall not exceed those necessary to deal with circumstances described in

this paragraph;
86
e) shall be temporary and be phased out progressively as the situation

specified in this paragraph improve.
2. The Party to this Chapter introducing a restriction under paragraph 1 of this

Article shall promptly notify the other Party to this Chapter of such measure.
3. In determining the incidence of such restrictions, the Parties to this Chapter

may give priority to the supply of services which are more essential to their
economic or development programmes. However, such restrictions shall not
be adopted or maintained for the purpose of protecting a particular service
sector.
4. Nothing in this Agreement shall affect the rights and obligations of a Party to
this Chapter which is a member of the International Monetary Fund under the
Articles of Agreement of the International Monetary Fund, including the use
of exchange actions which are in conformity with the Articles of Agreement
of the International Monetary Fund, provided that such Party to this Chapter
shall not impose restrictions inconsistently with the conditions provided for in
paragraph 1 of this Article.
5. This Article shall not be subject to the dispute settlement procedures

stipulated by the Article 8.38 of this Agreement.
ARTICLE 8.9
Accession
1. Notwithstanding Article 15.2 of the Agreement, any Member State of the

Eurasian Economic Union may accede to this Chapter on terms and
conditions as agreed between Viet Nam and such Member State of the
Eurasian Economic Union in respect of Schedules of Specific Commitments
and Lists of reservations.
2. In case of accession of a Member State of the Eurasian Economic Union to

this Chapter the provisions of this Chapter shall neither apply between the
Parties to this Chapter that are Member States of the Eurasian Economic
87
Union nor shall they grant to Viet Nam any rights and privileges that Member
States of the Eurasian Economic Union grant exclusively to each other.
ARTICLE 8.10
Amendments
1. Notwithstanding Article 15.5 of the Agreement, this Chapter may be amended

by mutual written consent of the Parties to this Chapter.
2. The amendments to this Chapter resulting from accession of a Member State

of the Eurasian Economic Union shall be introduced by mutual written
consent of the Parties to this Chapter and the Member State of the Eurasian
Economic Union acceding to this Chapter.
ARTICLE 8.11
Consultations
1. The Parties to this Chapter shall consult at the request of either of them, on
the matter concerning the interpretation or application of this Chapter.
2. The consultations referred to in paragraph 1 of this Article may be conducted

by the Joint Committee established in accordance with Article 1.4 of this
Agreement.
3. For the purposes of this Chapter the Joint Committee shall be co-chaired by
the representatives of the Parties to this Chapter and any of the decisions of
Joint Committee on the matters covered by this Chapter shall be taken by
consensus only by the Parties to this Chapter.
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ARTICLE 8.12
Settlement of Disputes between the Parties to this Chapter
1. The provisions of Chapter 14 (Dispute Settlement) of this Agreement shall

apply with respect to the settlement of disputes between the Parties to this
Chapter regarding the interpretation or application of this Chapter with the
modifications set out in paragraph 2 of this Article.
2. For the purposes of this Chapter:
a) the term “a disputing Party” referred to in Chapter 14 of this Agreement

means “a Party to this Chapter”;
b) the request for consultations referred to in paragraph 2 of Article 14.6

of this Agreement shall be submitted in writing to the responding Party
through its contact points designated in accordance with Article 8.6 of
this Agreement;
c) the request for the establishment of an Arbitral Panel referred to in

paragraph 3 of Article 14.7 of this Agreement shall be submitted in
writing to the responding Party through its contact points designated in
accordance with Article 8.6 of this Agreement; and
d) the suspension of benefits referred to in Article 14.15 of this Agreement

may be performed only in respect of the benefits provided for in this
Chapter.
ARTICLE 8.13
Lists of Commitments
The “Schedule of Specific Commitments under Section II (Trade in Services)”,

“List of Reservations under Section III (Establishment, Commercial Presence and
Activities)”, the “Schedule of Specific Commitments under Section IV
(Movement of Natural Persons)” and the “List of MFN Exemptions in
accordance with Articles 8.15 and 8.22 of the Agreement” shall be signed in the
89
form of Protocol No. 1 between the Socialist Republic of Viet Nam and the
Russian Federation to the Free Trade Agreement between the Socialist Republic
of Viet Nam, of the one part, and the Eurasian Economic Union and its Member
States, of the other part (hereinafter referred to in this Chapter as “Protocol No.
1”) on the date of signature of this Agreement. The Protocol No. 1 shall
constitute an integral part of this Agreement and shall be binding only in respect
of Viet Nam and the Russian Federation.
SECTION II. TRADE IN SERVICES
ARTICLE 8.14
Scope
1. This Section shall apply to any measure of the Parties to this Chapter
affecting trade in services.
2. This Section shall not apply to provision of subsidies or other forms of State
or municipal support to service suppliers or their services.
ARTICLE 8.15
1. With respect to any measure covered by this Section, each Party to this
Chapter shall accord immediately and unconditionally to services and service
suppliers of the other Party to this Chapter treatment no less favourable than
that it accords to like services and service suppliers of any third country.
2. A Party to this Chapter may maintain a measure inconsistent with paragraph 1

of this Article provided that such a measure is set out in its individual national
List in Annex 1 to Protocol No.1.
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3. The provisions of this Section shall not be construed to prevent a Party to this
Chapter from conferring or according advantages to adjacent countries in
order to facilitate trade in services limited to contiguous frontier zones of
services that are both locally produced and consumed.
4. Nothing in this Agreement shall be construed to oblige a Party to this Chapter

to provide to services or service suppliers of the other Party to this Chapter
benefits or privileges that the former Party is providing or will provide in
future:
a) in accordance with the economic integration agreements of the former

Party; or
b) on the basis of the agreements on avoidance of double taxation or other

arrangements on taxation issues.
ARTICLE 8.16
Market Access
1. With respect to market access through the modes of supply defined in Article
8.3 of this Agreement, each Party to this Chapter shall accord to services and
service suppliers of the other Party to this Chapter treatment no less
favourable than that provided for under the terms, limitations and conditions
agreed and specified in its Schedule in Annex 2 to Protocol No. 1.1
2. In sectors where market access commitments are undertaken, the measures

which a Party to this Chapter shall not maintain or adopt either on the basis of
a regional subdivision or on the basis of its entire territory, unless otherwise
specified in its Schedule in Annex 2 to Protocol No. 1, are defined as:
1
If a Party to this Chapter undertakes a market-access commitment in relation to the supply of a service from the
territory of a Party to this Chapter into the territory of the other Party to this Chapter and if the cross-border
movement of capital is an essential part of the service itself, that Party is thereby committed to allow such
movement of capital.
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a) limitations on the number of service suppliers whether in the form of

numerical quotas, monopolies, exclusive service suppliers or the
requirements of an economic needs test;
b) limitations on the total value of service transactions or assets in the

form of numerical quotas or the requirement of an economic needs test;
or
c) limitations on the total number of service operations or on the total

quantity of service output expressed in terms of designated numerical
units in the form of quotas or the requirement of an economic needs
test.
ARTICLE 8.17
National Treatment
1. In the sectors inscribed in its Schedule in Annex 2 to Protocol No. 1, and

subject to any condition and qualification set out therein, each Party to this
Chapter shall accord to services and service suppliers of the other Party to this
Chapter, in respect of all measures affecting supply of services, treatment no
less favourable than that it accords to its own like services and service
suppliers.2
2. A Party to this Chapter may meet the requirement of paragraph 1 of this

Article by according to services and service suppliers of the other Party to this
Chapter, either formally identical treatment or formally different treatment to
that it accords to its own like services and service suppliers.
3. Formally identical or formally different treatment shall be considered to be

less favourable if it modifies the conditions of competition in favour of
services or service suppliers of a Party to this Chapter compared to like
services or service suppliers of the other Party to this Chapter.
2
Specific commitments assumed under this Article shall not be construed to require any Party to this Chapter to
compensate for any inherent competitive disadvantages which result from the foreign character of the relevant
services or service suppliers.
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ARTICLE 8.18
Payments and Transfers
1. Except under the circumstances envisaged in Article 8.8 of this Agreement a

Party to this Chapter shall not apply restrictions on international transfers and
payments for current transactions relating to its specific commitments under
this Section.
2. Nothing in this Chapter shall affect the rights and obligations of the Parties to
this Chapter as members of the International Monetary Fund under the
Articles of Agreement of the International Monetary Fund, including the use
of exchange actions which are in conformity with the Articles of Agreement
of the International Monetary Fund, provided that a Party to this Chapter shall
not impose restrictions on any capital transactions inconsistently with its
specific commitments under this Section regarding such transactions, except
under Article 8.8 of this Agreement or at the request of the International
Monetary Fund.
ARTICLE 8.19
Recognition
Article VII of GATS shall apply between the Parties to this Chapter, mutatis
mutandis.
SECTION III. ESTABLISHMENT, COMMERCIAL PRESENCE AND

ACTIVITIES
ARTICLE 8.20
Scope
93
1. This Section shall apply to any measure by the Parties to this Chapter
affecting establishment, commercial presence and activities.
2. This Section shall apply to commercial presence set up by a person of a Party

to this Chapter within the territory of the other Party to this Chapter at the
date or after the date of entry into force of this Agreement.
or municipal support to persons and their commercial presence in connection
with establishment and/or activities.
ARTICLE 8.21
National Treatment
1. With respect to establishment and subject to the reservations set out in its
individual national List provided for in Annex 3 to Protocol No. 1, each Party
to this Chapter shall grant, within its territory, to the persons of the other Party
to this Chapter treatment no less favourable than that it accords in like
circumstances to its own persons.
2. With respect to activities and subject to the reservations set out in its
to this Chapter shall grant to the commercial presence set up by a person of
other Party to this Chapter within the territory of the former Party treatment
not less favourable than the treatment granted in like circumstances to the
commercial presences of its own persons set up within its territory.
ARTICLE 8.22
1. With respect to establishment and subject to the reservations set out in its
to this Chapter shall grant to the persons of the other Party to this Chapter
94
treatment no less favourable than that it accords in like circumstances to

persons of any third country.
2. With respect to activities and subject to the reservations set out in its
to this Chapter shall grant to the commercial presence set up by a person of
the other Party to this Chapter within the territory of the former Party
treatment not less favourable than the treatment granted in like circumstances
to the commercial presences of persons of any third country.
3. For greater certainty, this Article shall not apply to international dispute
settlement procedures or mechanisms such as those set out in Article 8.38 of
this Agreement.
4. Nothing in this Agreement shall be construed to oblige a Party to this Chapter

to provide to the persons of the other Party to this Chapter or their commercial
presences benefits or privileges that the former Party is providing or will
provide in future:
a) in accordance with economic integration agreements of the former

Party; or

ARTICLE 8.23
Market Access
With respect to establishment and/or activities neither Party to this Chapter shall
maintain or apply to persons of the other Party to this Chapter and/or to
commercial presences of such persons set up within the territory of the former
Party, respectively, limitations in respect of:
a) form of the commercial presence, including legal form of the entity;

95
b) total number of commercial presences set up;
c) maximum percentage limit on shareholding by the persons of the other

Party to this Chapter in the capital of a juridical person of the former
Party or on degree of control over such juridical person; or
d) transactions/operations performed by the commercial presence set up

by the person of the other Party to this Chapter in the course of their
activities in the form of quota or the requirement of economic needs test
except for the limitations provided for in the individual national List of the
former Party set out in Annex 3 to Protocol No. 1.
ARTICLE 8.24
Performance Requirements
1. Subject to the reservations set out in its individual national List provided for
in Annex 3 to Protocol No. 1 neither Party to this Chapter shall in connection
with establishment and/or activities impose or enforce in respect of
commercial presences of persons of the other Party to this Chapter set up
within the territory of the former Party, respectively, any requirement:
a) to export a given level or percentage of goods or services;
b) to purchase, use or accord a preference to goods produced in its

territory;
c) to relate in any way the volume or value of imports to the volume or

value of exports or to the amount of foreign exchange inflows
associated with such establishment and/or activities;
d) to restrict sales of goods or services in its territory that such commercial

presences produces or supplies by relating such sales in any way to the
volume or value of its exports or foreign exchange earnings;
96
e) to transfer a particular technology, a production process, or other

proprietary information to persons in the territory of the former Party;
or
f) to supply exclusively from the territory of the former Party the goods
that it produces or the services that it supplies to a specific regional
market or to the world market.
2. Neither Party to this Chapter shall condition the receipt or continued receipt
of an advantage in connection with establishment and/or activities of
commercial presences of persons of the other Party to this Chapter set up
within the territory of the former Party on compliance with any of the
following requirements:
a) to purchase, use or accord a preference to goods produced in the

territory of the former Party;
b) to relate in any way the volume or value of imports to the volume or

value of exports or to the amount of foreign exchange inflows
associated with such establishment and/or activities; or
c) to restrict sales of goods or services in its territory that such commercial

presences produces or supplies by relating such sales in any way to the
volume or value of its exports or foreign exchange earnings.
3. Nothing in paragraph 2 of this Article shall be construed to prevent a Party to

this Chapter from conditioning the receipt or continued receipt of an
advantage, in connection with establishment and/or activities of the persons of
the other Party to this Chapter and/or to commercial presences of that persons
set up within the territory of the former Party on compliance with a
requirement to locate production, supply a service, train or employ workers,
construct or expand particular facilities or carry out research and
development, in the territory of the former Party.
4. For greater certainty, nothing in paragraph 1 of this Article shall be construed

to prevent a Party to this Chapter from imposing or enforcing any
requirement, in connection with commercial presences of persons of the other
97
Party to this Chapter, to employ or train workers in its territory provided that
such employment or training does not require the transfer of a particular
technology, production process, or other proprietary knowledge to a person in
its territory.
5. Subparagraph e) of paragraph 1 of this Article shall not apply:
a) when a Party to this Chapter authorizes use of an intellectual property

right in accordance with Article 31 of the TRIPS Agreement, or to
measures requiring the disclosure of proprietary information that fall
within the scope of, and are consistent with, Article 39 of the TRIPS
Agreement; or
b) when the requirement is imposed or enforced by a court or relevant

authority in accordance with the competition laws and regulations of the
Party to this Chapter imposing or enforcing the requirement.
6. Subparagraphs a) and b) of paragraph 1 of this Article, and subparagraph a) of

paragraph 2 of this Article shall not apply to qualification requirements for
goods or services with respect to export promotion and foreign aid
programmes.
7. This Article is without prejudice to the rules of origin applied by the Parties to
this Chapter that are subject to Chapter 4 (Rules of Origin) of this Agreement.
ARTICLE 8.25
Senior Management Boards of Director
With respect to establishment and/or activities and subject to limitations provided

for in its individual national List set out in Annex 3 to Protocol No. 1 and subject
to conditions and limitations set out in the Section IV (Movement of Natural
Persons) of this Chapter, a Party to this Chapter shall not require that a juridical
person of that Party appoint to senior management positions natural persons of
any particular nationality.
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SECTION IV. MOVEMENT OF NATURAL PERSONS
ARTICLE 8.26
Scope
1. This Section shall apply to measures affecting temporary entry and stay of
natural persons of a Party to this Chapter into the territory of the other Party
to this Chapter with respect to the categories of such natural persons that are
set out in that other Party’s Schedule in Annex 4 to Protocol No. 1. Such
categories of natural persons may include:
a) business visitors;
b) intra-corporate transferees;
c) installers or servicers;
d) investors; or
e) contractual services supplier.
This Section shall not apply to provision of subsidies or other forms of State
or municipal support to service suppliers or their services covered by this
Section.
2. This Section shall not apply to measures affecting natural persons of a Party
to this Chapter seeking access to the employment market of the other Party to
this Chapter, nor shall it apply to measures regarding citizenship, nationality,
residence or employment on a permanent basis.
3. For greater certainty, nothing in this Agreement shall be construed as a

commitment of a Party to this Chapter in respect of any requirement or
procedure related to granting visas to the natural persons of the other Party to
this Chapter.
99
4. For the purposes of this Section, “temporary entry or stay” means entry or
stay by a natural person of a Party to this Chapter, without the intent to reside
permanently within the territory of the other Party to this Chapter.
5. Neither Party to this Chapter may impose or maintain any numerical

restriction or requirement of economic needs test relating to temporary entry
or stay of natural persons referred to in paragraph 1 of this Article except as
provided for in its Schedule in Annex 4 to Protocol No. 1.
ARTICLE 8.27
Recognition
Article VII of GATS shall apply between the Parties to this Chapter, mutatis
mutandis.
SECTION V. INVESTMENT
ARTICLE 8.28
Definitions
For the purposes of this Section:
a) “investment” means any type of asset invested by the investor of a

Party to this Chapter in the territory of the other Party to this Chapter in
accordance with the latter Party's laws and regulations, that has the
characteristics of an investment, including such characteristics as the
commitment to capital or other resources, the expectation of profit and
assumption of risk, in particular, though not exclusively:
i. movable and immovable property as well as any property rights

such as mortgages or pledges;
100
ii. shares, stocks and any other form of participation in capital of a

juridical person;
iii. bonds and debentures;
iv. claims to money or claims under contracts having an economic

value3, relating to investments;
v. intellectual property rights;
vi. goodwill;
vii. rights conferred by law or under contract to conduct business

activity and having financial value, including, but not limited to
construction, production, revenue-sharing contracts and
concessions related in particular to exploration, development,
extraction and exploitation of natural resources.
Any change of the form in which assets are invested or reinvested shall
not affect their character as investments. Such change shall be made in
accordance with laws and regulations of the Party to this Chapter in
which territory the investments were made.
b) “investor of a Party to this Chapter” means any natural or juridical

person of a Party to this Chapter in accordance with its laws and
regulations that has made investments in the territory of the other Party
to this Chapter;
c) “returns” means the amounts derived from an investment including but

not limited to profit, dividends, interest, capital gains, royalties and
other fees; and
3
For greater certainty, investment does not mean claims to money that arise solely from:
a) commercial contracts for sale of goods or services; or
b) the extension of credit in connection with such commercial contracts.
101
d) “freely usable currency” means a freely usable currency as

determined by the International Monetary Fund in accordance with
Articles of Agreement of the International Monetary Fund.
ARTICLE 8.29
Scope
1. This Section shall apply to all investments made by investors of a Party to this
Chapter in the territory of the other Party to this Chapter after 19 June 1981,
in existence as of the date of entry into force of this Agreement, but it shall
not apply to any act or fact that took place or any situation or dispute that
arose or ceased to exist before entry into force of this Agreement.
2. Investments of investors of a Party to this Chapter made in the territory of the

other Party to this Chapter in the form of establishment and commercial
presence, as defined and governed by Section III (Establishment, Commercial
Presence and Activities) of this Chapter shall not be covered by Articles 8.30,
8.31, 8.32 and 8.33 of this Agreement.
or municipal support to investors and its investments, except for those
subsidies and other forms of State or municipal support to investors and its
investments under Article 8.34 of this Agreement.
ARTICLE 8.30
Promotion and Admission of Investments
Each Party to this Chapter shall encourage and create favourable conditions to
investors of the other Party to make investments in its territory and admit the
investments of investors of the other Party to this Chapter in accordance with the
laws and regulations of the former Party.
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ARTICLE 8.31
Fair and Equitable Treatment and Full Protection and Security
1. Each Party to this Chapter shall accord to investments of investors of the

other Party to this Chapter fair and equitable treatment and full protection and
security.
2. “Fair and equitable treatment” referred to in paragraph 1 of this Article

requires, in particular, each Party to this Chapter not to deny justice in any
judicial or administrative proceedings.
3. “Full protection and security” referred to in paragraph 1 of this Article

requires each Party to this Chapter to take such measures as may be
reasonably necessary to ensure the protection and security of investments of
an investor of the other Party to this Chapter.
4. With respect to investments of an investor of the other Party to this Chapter in

the territory of the former Party, “fair and equitable treatment” and “full
protection and security” referred to in paragraph 1 of this Article do not
require treatment more favourable than that accorded to the former Party’s
own investors and/or investors of any third country in accordance with its
laws and regulations.
5. A determination that there has been a breach of another provision of this

Agreement or of a separate international agreement does not establish that
there has been a breach of this Article.
ARTICLE 8.32
National Treatment
1. Each Party to this Chapter shall accord to investors of the other Party to this
Chapter and investments of an investor of the other Party to this Chapter
treatment no less favourable than that it accords, in like circumstances, to its
own investors and their investments in its territory.
103
2. Each Party to this Chapter shall reserve the right in accordance with its laws
and regulations to apply and introduce exemptions from national treatment,
referred to in paragraph 1 of this Article, to foreign investors and their
investments including reinvestements.
ARTICLE 8.33
1. Each Party to this Chapter shall accord to investors of the other Party to this
Chapter and investments of an investor of the other Party to this Chapter
treatment no less favourable than that it accords, in like circumstances, to
investors of any third country and their investments in its territory.
2. For greater certainty, this Article shall not apply to international dispute
settlement procedures or mechanisms such as those set out in Article 8.38 of
this Agreement.
3. Nothing in this Section shall be construed as to oblige a Party to this Chapter

to provide to investors of the other Party to this Chapter or their investments
benefits or privileges that the former Party is providing or will provide in
future:
a) in accordance with the economic integration agreements of the former

Party; or

ARTICLE 8.34
Compensation for Losses

104
Each Party to this Chapter shall accord to investors of the other Party to this
Chapter and to investments of investors of the other Party to this Chapter with
respect to measures it adopts or maintains relating to losses suffered by
investments of such investors in its territory owing to war or other armed conflict,
revolt, insurrection, revolution, riot, civil strife or civil disturbance, treatment no
less favourable than that it accords, in like circumstances, to:
a) its own investors and their investments; or
b) investors of any third country and their investments.
ARTICLE 8.35
Expropriation and Compensation
1. Neither Party to this Chapter shall nationalise, expropriate or subject to

measures equivalent in effect to nationalisation or expropriation an
investment of the investor of the other Party to this Chapter (hereinafter
referred to as “expropriation”), except:
a) for a public purpose;
b) in accordance with the procedure established by the laws and

regulations of the former Party;
c) in a non-discriminatory manner; and
d) on payment of prompt, adequate and effective compensation in

accordance with paragraph 3 of this Article.
2. The determination of whether a measure or series of such measures of either

Party to this Chapter have an effect equivalent to nationalisation or
expropriation shall require a case-by-case, fact-based inquiry to consider,
inter alia:
105
a) the economic impact of the measure or series of measures, although the

sole fact that a measure or series of measures of either Party to this
Chapter has an adverse effect on the economic value of investments
does not establish that an expropriation has occurred;
b) the character of the measure or series of measures of either Party to this

Chapter.
3. The compensation referred to in subparagraph d) of paragraph 1 of this

Article shall:
a) be paid without undue delay;
b) be equivalent to the fair market value of the expropriated investment

calculated on date when the actual or impending expropriation has
become publicly announced whichever is earlier; and
c) be paid in a freely usable currency or, if agreed by the investor, in the

currency of the expropriating Party to this Chapter and be freely
transferable subject to the provisions of Article 8.37 of this Agreement.
From the date of expropriation until the date of payment the amount of
compensation shall be subject to accrued interest at a commercial rate
established on a market basis.
4. This Article shall not apply to the issuance of compulsory licences granted in
relation to intellectual property rights in accordance with the TRIPS
Agreement.
5. Notwithstanding paragraphs 1 through 4 of this Article, expropriation relating

to land within the territory of either Party to this Chapter shall be carried out
in accordance with the laws and regulations of that Party for a purpose
established in accordance with such laws and regulations, and upon payment
of compensation, which shall be assessed with due consideration to market
value and paid without undue delay, in accordance with the laws and
regulations of that Party.
106
ARTICLE 8.36
Subrogation
1. If a Party to this Chapter or its designated agency made a payment to an

investor of that Party under a guarantee, a contract of insurance or other form
of indemnity against non-commercial risks it has granted in respect of an
investment, the other Party to this Chapter shall recognise the subrogation or
transfer of any right or claim of the investor in respect of such investment to
the former Party or its designated agency. The subrogated or transferred right
or claim shall not be greater than the original right or claim of the investor.
For greater certainty, such right or claim shall be exercised in accordance with
the laws and regulations of the latter Party, but without prejudice to Articles
8.21, 8.22, 8.23, 8.24 and 8.25 of this Agreement.
2. Where a Party to this Chapter or its designated agency has made a payment to
an investor of that Party and has taken over rights and claims of the investor,
that investor shall not, unless authorised to act on behalf of that Party or its
designated agency making the payment, pursue those rights and claims
against the other Party to this Chapter.
ARTICLE 8.37
Transfer of Payments
1. Except under the circumstances envisaged in Article 8.8 of this Agreement

each Party to this Chapter shall guarantee to investors of the other Party to
this Chapter, upon fulfilment by them of all tax and other obligations in
accordance with the laws and regulations of the former Party, a free transfer
abroad of payments related to their investments, and in particular:
a) returns;
b) funds in repayment of loans and credits recognised by each Party to this

Chapter as investments, as well as accrued interest;
107
c) proceeds from sale or full or partial liquidation of investments;
d) compensation, stipulated in the Articles 8.34 and 8.35 of this

Agreement;
e) wages and other remunerations received by investors and natural

persons of the other Party to this Chapter authorised to work in
connection with investments in the territory of the former Party.
2. Transfer of payments shall be made without undue delay in a freely usable

currency at the rate of exchange applicable on the date of the transfer pursuant
to the exchange laws and regulations of the Party to this Chapter in which
territory the investments were made.
ARTICLE 8.38
Settlement of Disputes between a Party to this Chapter and Investor of the

Other Party to this Chapter
1. Disputes between a Party to this Chapter and an investor of the other Party to
this Chapter arising from an alleged breach of an obligation of the former
Party under this Chapter in connection with an investment made by the
investor in the territory of the former Party shall be settled to the extent
possible amicably by means of negotiations. Such negotiations may include
the use of non-binding, third-party procedures, such as good offices,
conciliation and mediation.
2. The written request submitted by the investor for negotiations referred to in

paragraph 1 of this Article shall include:
a) the name and address of the investor who is a party to a dispute;
b) for each claim the specific provisions under this Chapter alleged to have
been breached;
c) the legal and factual basis for each claim;

108
d) the relief sought and approximate amount of damages claimed.
3. If a dispute cannot be settled amicably by means of negotiations during a

period of six months starting from the date of receipt by the Party who is a
party to the dispute of the written request of the investor of the other Party to
this Chapter, it shall be submitted at the choice of the investor for
consideration to:
a) a competent court of the Party to this Chapter in which territory the

investments were made, or
b) an ad hoc arbitration court in accordance with the Arbitration Rules of

the United Nations Commission on International Trade Law; or
c) arbitration by the International Centre for Settlement of Investment

Disputes (hereinafter referred to as “ICSID”), created pursuant to the
Convention on the Settlement of Investment Disputes between States
and Nationals of Other States, opened for signature at Washington on
18 March 1965 (ICSID Convention), provided that both the Party who
is a party to the dispute and the Party of the investor are party to the
ICSID Convention; or
d) arbitration under the ICSID Additional Facility Rules, provided that

either the Party who is a party to the dispute or the Party of the investor
is a party to the ICSID Convention; or
e) if the parties to a dispute so agree, to any other arbitration institution or

under any other arbitration rules.
4. The choice of the institution referred to in paragraph 3 of this Article shall be

final.
5. An arbitration award shall be final and binding upon both parties to the
dispute. Each Party to this Chapter undertakes to enforce this award in
accordance with its laws and regulations.
109
6. No claim can be submitted to arbitration under this Section if more than three
years have elapsed from the date on which the investor who is a party to a
dispute first acquired or reasonably should have first acquired, knowledge of
the breach alleged under paragraph 1 of this Article.
7. A natural person possessing the nationality of a Party to this Chapter on the

date the investments were made may not pursue a claim against that Party
under this Article.
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CHAPTER 8 bis
STATE OWNED, STATE CONTROLLED ENTERPRISES AND
ENTERPRISES WITH SPECIAL OR EXCLUSIVE PRIVILEGES
ARTICLE 8 bis.1
Scope
This Chapter shall apply only between Viet Nam and the Russian Federation.
ARTICLE 8 bis.2
State-Owned, State-Controlled Enterprises and Enterprises with Special or

Exclusive Privileges
Viet Nam and the Russian Federation shall ensure that their state-owned or state-
controlled enterprises and enterprises with special or exclusive privileges shall
operate in a manner consistent with their respective WTO commitments in the
Protocols on accession to the WTO of Viet Nam and the Russian Federation,
respectively.
111
CHAPTER 9
INTELLECTUAL PROPERTY
ARTICLE 9.1
Objectives
The Parties confirm their commitment to reducing impediments to trade and

investment by promoting deeper economic integration through the creation of
intellectual property and effective and adequate utilisation, protection and
enforcement of intellectual property rights, taking into account the differences in
their respective laws and regulations and in levels of economic development and
capacity and the need to maintain an appropriate balance between the rights of
intellectual property owners and the legitimate interests of users in subject matter
protected by intellectual property rights.
ARTICLE 9.2
Definitions
a) “intellectual property” means copyright and related rights, trademarks,

geographical indications (including appellations of origin of goods),
inventions (including utility solutions), utility models, industrial designs,
layout designs (topographies) of integrated circuits, plant varieties and
undisclosed information;
b) “geographical indication” means an indication which identifies a good

as originating in the territory of a Party or a region or locality in that
territory, where a given quality, reputation or other characteristic of the
good is essentially attributable to its geographical origin, as defined in
Article 22 of the TRIPS Agreement;
112
c) “appellation of origin of goods” means a geographical denomination

that constitutes or contains contemporary or historical, official or
unofficial, full or abbreviated name of a country, region or locality or
other geographical area, which became known through its use in the
country of origin in relation to the goods, the quality and characteristics
of which are exclusively or essentially determined by the geographical
environment, including natural and human factors;
d) “counterfeit trademark goods” means goods, including packaging,

bearing without authorisation a trademark which is identical to the
trademark validly registered in respect of such goods, or which cannot be
distinguished in its essential aspects from such a trademark, and which
thereby infringes the rights of the owner of the trademark in question
under the laws and regulations of the country of importation. The
definition of counterfeit trademark goods above shall apply, mutatis
mutandis, to counterfeit geographical indication and appellation of origin
goods; and
e) “pirated copyright goods” means goods which are copies made without
the consent of the right holder or person duly authorised by the right
holder in the country of production and which are made directly or
indirectly from an article where the making of that copy would have
constituted an infringement of a copyright or a related right under the
laws and regulations of the country of importation.
ARTICLE 9.3
International Agreements
1. The Parties which are party to the TRIPS Agreement reaffirm their
obligations set out therein. The Parties which are not party to the TRIPS
Agreement shall follow the principles of the TRIPS Agreement. The Parties
reaffirm their obligations set out in the international agreements on
intellectual property to which they are party, in particular:
113
a) the Paris Convention for the Protection of Industrial Property of 20

March 1883 (hereinafter referred to as “the Paris Convention”);
b) the Berne Convention for the Protection of Literary and Artistic Works
of 9 September 1886;
c) the International Convention for the Protection of Performers, Producers

of Phonograms and Broadcasting Organisations of 26 October 1961 (the
Rome Convention);
d) the Convention for the Protection of Producers of Phonograms Against

Unauthorized Duplication of Their Phonograms of 29 October 1971;
e) the Madrid Agreement Concerning the International Registration of

Marks of 14 April 1891 and the Protocol Relating to the Madrid
Agreement Concerning the International Registration of Marks of 27
June 1989; and
f) the Patent Cooperation Treaty of 19 June 1970.
2. The Parties which are not party to one or more of the international agreements
listed below shall endeavour to join:
a) the WIPO Performances and Phonograms Treaty of 20 December 1996;
b) the WIPO Copyright Treaty of 20 December 1996;
c) the Act of International Convention for the Protection of New Varieties

of Plants of 19 March 1991; and
d) the Singapore Treaty on the Law of Trademarks of 27 March 2006.
3. The Parties shall endeavour to apply the provisions of the following

international agreements:
a) the Strasbourg Agreement Concerning the International Patent

Classification of 24 March 1971;
114
b) the Nice Agreement Concerning the International Classification of

Goods and Services for the Purposes of the Registration of Marks of 15
June 1957; and
c) the Locarno Agreement Establishing an International Classification for

Industrial Designs of 8 October 1968.
ARTICLE 9.4
National Treatment
Each Party shall accord to the nationals of the other Party treatment no less
favourable than that it accords to its own nationals with regard to the protection
of intellectual property set out in Articles 3 and 5 of the TRIPS Agreement.
ARTICLE 9.5
Each Party shall accord to the nationals of the other Party treatment no less
favourable than that it accords to the nationals of any other country with regard to
the protection of intellectual property set out in Articles 4 and 5 of the TRIPS
Agreement.
ARTICLE 9.6
Copyright and Related Rights
1. Without prejudice to the obligations set out in international agreements to

which the Parties are party, each Party shall, in accordance with its respective
laws and regulations, guarantee and provide effective protection of the
interests of authors, performers, producers of phonograms and broadcasting
115
organisations for their works, performances, phonograms and broadcasts,

respectively.
2. Each Party shall aim to ensure that its respective laws and regulations
guarantee the effective protection and provide enforcement of copyright and
related rights in the digital environment.
ARTICLE 9.7
Trademarks
Each Party shall provide adequate and effective protection of trademarks for
goods and services in accordance with its respective laws and regulations, the
international agreements to which it is party and the TRIPS Agreement, in
particular Articles 15 through 21.
ARTICLE 9.8
Geographical Indications/Appellations of Origin of Goods
1. Each Party shall ensure in its territory adequate and effective legal protection
of geographical indications and/or appellations of origin of goods in
accordance with its respective laws and regulations, the international
agreements to which it is a party and the TRIPS Agreement, in particular
Articles 22 through 24.
2. The provisions of appellations of origin of goods in this Chapter shall apply to

a denomination which allows to identify a good as originating in the territory
of a particular geographical area and although it does not contain the name of
the area, which became known as a result of using this denomination in
respect of the goods, the quality and characteristics of which meet the
requirements provided for in subparagraph c) of Article 9.2 of this
Agreement.
116
3. The Parties recognise that each Party may protect geographical indications via
a sui generis system of protection of appellations of origin of goods in
accordance with its respective laws and regulations. A Party that provides
such system of protection shall not be obliged to provide a separate system of
protection for geographical indications. The Parties shall provide other legal
means in their respective laws and regulations to protect geographical
indications other than appellations of origin of goods, such as those of
collective marks and/or certification marks. The definition of appellation of
origin of goods in subparagraph c) of Article 9.2 of this Agreement and
paragraph 2 of this Article shall only apply to a Party which provides a sui
generis system of protection of appellations of origin of goods at the time of
entry into force of this Agreement.
4. In respect of geographical indications and/or appellations of origin of goods,

the Parties shall provide the legal means for an interested person of the other
Party to prevent:
a) the use of any means in the designation or presentation of a good that

indicates or suggests that the good in question originates in a
geographical area other than the true place of origin in a manner which
misleads the public as to the geographical origin;
b) any use which constitutes an act of unfair competition within the

meaning of Article 10bis of the Paris Convention.
5. Nothing in this Chapter shall require a Party to apply its provisions in respect
of geographical indications and/or appellations of origin of goods of the other
Party to goods or services for which the relevant indication is identical with
the term customary in common language as the common name for such goods
or services in the territory of such Party.
6. In order to protect the interests of their producers, the Parties shall exchange
lists of geographical indications and/or appellations of origin of goods
registered by them in respect of goods produced in their territories. The
Parties may also agree to exchange the lists of geographical indications
protected by other legal means. The relevant procedures for such exchange
shall be determined by the competent authorities of the Parties by means
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provided for in Article 9.17 of this Agreement. The Parties may agree to enter
into negotiations on mutual protection of geographical indications and/or
appellations of origin of goods subject to their respective laws and regulations
and policy, availability of resources and willingness of each Party.
7. Each Party shall, ex officio if its laws and regulations so permit or at the
request of an interested person of the other Party, refuse or invalidate the
registration of a trademark which contains or consists of a geographical
indication and/or appellation of origin of goods with respect to goods not
originating in the territory indicated, if use of the indication in the trademark
for such goods in the former Party is of such a nature as to mislead the public
as to the true place of origin.
ARTICLE 9.9
Inventions and Utility Models
1. Each Party shall provide adequate and effective protection of inventions in

accordance with its respective laws and regulations, the international
agreements to which it is party and the TRIPS Agreement, in particular
Articles 27 through 34.
2. Utility models shall be protected in accordance with the respective laws and
regulations of the Parties and the Paris Convention.
ARTICLE 9.10
Industrial Designs
Each Party shall provide adequate and effective protection of industrial designs in
accordance with its respective laws and regulations, the international agreements
to which it is party and the TRIPS Agreement, in particular Articles 25 and 26.
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ARTICLE 9.11
Layout Designs (Topographies) of Integrated Circuits
Each Party shall provide adequate and effective protection of layout designs
(topographies) of integrated circuits in accordance with its respective laws and
regulations, the international agreements to which it is party and the TRIPS
Agreement, in particular Articles 35 through 38.
ARTICLE 9.12
New Varieties of Plants
Each Party recognises the importance of providing in its respective laws and
regulations a system of protection of new varieties of plants and shall endeavour
to provide for the protection of all plant genera and species in accordance with
the Act of International Convention for the Protection of New Varieties of Plants
of 19 March 1991 and the TRIPS Agreement.
ARTICLE 9.13
Undisclosed Information
Each Party shall ensure adequate and effective protection of undisclosed

information in its respective laws and regulations in accordance with the TRIPS
Agreement, in particular Article 39.
ARTICLE 9.14
Protection against Unfair Competition
Each Party shall ensure effective protection against unfair competition in

accordance with its respective laws and regulations and Article 10bis of the Paris
Convention.
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ARTICLE 9.15
Enforcement of Intellectual Property Rights
The Parties shall ensure in their respective laws and regulations provisions for
enforcement of intellectual property rights at the same level as provided for in the
TRIPS Agreement, in particular Articles 41 through 50.
ARTICLE 9.16
Border Measures
1. Each Party shall ensure effective enforcement of border measures in

accordance with Articles 51 through 57, 59 and 60 of the TRIPS Agreement
and that the complementary measures, procedures and remedies, covered by
its respective laws and regulations related to customs procedures, are
available to permit effective action against counterfeit trademark goods,
counterfeit geographical indication and appellation of origin goods, pirated
copyright goods.
2. Each Party shall, unless otherwise provided for in this Agreement, adopt
procedures to enable a right holder, who has valid grounds for suspecting that
importation or exportation is carried out with counterfeit trademark goods,
counterfeit geographical indication and appellation of origin goods, pirated
copyright goods, to lodge an application to customs authorities claiming to
apply measures of intellectual property rights protection provided that
importation or exportation in question infringes an intellectual property right
under the laws and regulations of the country where the goods are found.
3. Without prejudice to the protection of confidential information, customs

authorities shall have the authority to provide the right holder with sufficient
opportunity to have any good detained by the customs authorities inspected in
order to substantiate the right holder’s claims. The customs authorities shall
also have the authority to give the importer an equivalent opportunity to have
any such good inspected. Customs authorities shall provide the right holder
with the information on the names and addresses of the consignor, the
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importer and the consignee and of the quantity of the goods in question.
Customs authorities shall provide at least the owner of the detained goods
with the information on the name and address of the right holder.
4. The Parties are encouraged to exclude from the application of the above
provisions small quantities of goods of a non-commercial nature contained in
travellers’ personal luggage.
ARTICLE 9.17
Competent Authorities, Contact Points and Information Exchange
1. The Parties shall notify each other of the competent authorities responsible for
carrying out the procedures provided for in this Chapter, and the contact
points designated by each Party to facilitate communications between the
Parties on any matter relating to this Chapter.
2. The Parties shall promptly inform each other of any change in the contact
points or any significant change in the structure or competence of their
competent authorities.
3. The Parties through their contact points shall provide each other with a timely
written notification of any significant issue or any change in the legal
framework of intellectual property and, if necessary, request consultations to
resolve any concern about the issue.
4. With a view to strengthening their cooperation links, the Parties agree to

communicate in writing and/or promptly hold expert meetings, upon request
of either Party and taking into account the financial capacity of the Parties, on
matters related to the international agreements referred to in this Chapter or to
future international agreements in the field of intellectual property, to
membership in international organisations, such as the World Trade
Organization and the World Intellectual Property Organization, as well as to
relations of the Parties with third countries on matters concerning intellectual
property and to other issues relating to the implementation of this Chapter.
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CHAPTER 10
GOVERNMENT PROCUREMENT
ARTICLE 10.1
Cooperation
1. The Parties recognise the importance of cooperation in the field of

government procurement in accordance with their respective laws and
regulations and given the available resources.
2. The Parties shall cooperate for the purposes of improving transparency,

promoting fair competition and the use of electronic technologies in the field
of government procurement.
3. The Parties shall inform each other as soon as possible of any significant
modification of their respective laws and regulations and/or government
procurement procedures.
4. The cooperation activities shall include the exchange of, where appropriate,
non-confidential information, consultations, as provided for in Article 10.3 of
this Agreement, and technical assistance.
5. The Parties shall endeavour to cooperate in the following:
a) facilitating participation of suppliers in government procurement, in

particular, with respect to small and medium enterprises;
b) exchanging experience and information, such as regulatory frameworks,

best practices and statistics;
c) developing and expanding the use of electronic means in government

procurement systems;
d) capacity building for government officials in best government

procurement practices;
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e) institutional strengthening for the fulfilment of the provisions of this

Chapter; and
f) enhancing the ability to provide multilingual access to procurement

opportunities.
6. The Parties shall develop further cooperation based on mutual experience in

the field of government procurement, including electronic forms of
procurement.
ARTICLE 10.2
Information on the Procurement System
1. For the purposes of transparency, the Parties shall make publicly available
their respective laws and regulations relating to government procurement.
2. The Parties shall exchange the lists of media resources in which the Parties
publish relevant information on government procurement.
3. The Parties shall endeavour to establish and maintain electronic means for
publishing their respective laws and regulations and information on
government procurement, given the available resources.
4. Each Party may expand the content of the government procurement

information and the scope of the services provided through electronic means.
ARTICLE 10.3
Consultations
1. In the event of any disagreement relating to the application of the provisions

of this Chapter, the Parties shall make every effort to reach a mutually
satisfactory resolution through consultations.
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2. Each Party shall accord sympathetic consideration to and shall afford

adequate opportunity for consultations regarding the implementation of this
Chapter.
3. A request for such consultations shall be submitted to the other Party’s

contact point established under Article 10.5 of this Agreement. Unless the
Parties agree otherwise, they shall hold consultations within 60 days from the
date of receipt of the request.
4. Consultations may be conducted in person or via email, teleconference,

videoconference, or any other means, as agreed by the Parties.
ARTICLE 10.4
Non-Application of Chapter 14 (Dispute Settlement)
Any matter arising under this Chapter shall not be subject to the dispute
settlement mechanism provided for in Chapter 14 (Dispute Settlement) of this
Agreement.
ARTICLE 10.5
Contact Points
1. Each Party shall designate a contact point to monitor the implementation of

this Chapter. The contact points shall work collaboratively to facilitate the
implementation of this Chapter.
2. The Parties shall provide each other with the names and contact details of
their contact points.
3. The Parties shall promptly notify each other of any change to their contact
points.
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ARTICLE 10.6
Further Negotiations
The Parties may enter into negotiations with a view to liberalising their respective
government procurement markets and discussing potential market access issues,
if necessary.
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CHAPTER 11
COMPETITION
ARTICLE 11.1
Basic Principles
1. The Parties recognise the importance of free and undistorted competition in

their trade relations and respect the differences in their capacity in the area of
competition policy.
2. Each Party shall, in accordance with its respective laws and regulations, take
measures which it considers appropriate by proscribing anti-competitive
business conduct, in order to promote the efficient functioning of its
respective market and consumer welfare.
3. The measures each Party adopts or maintains to proscribe anti-competitive

business conduct shall be taken in conformity with the principles of
transparency, non-discrimination and fairness.
ARTICLE 11.2
Anti-Competitive Practices
1. The Parties shall take all necessary measures in accordance with their
respective laws and regulations in order to prevent and restrict anti-
competitive practices that affect trade between the Parties. Particular attention
shall be given to the following practices which are incompatible with the
proper operation of this Agreement:
a) all agreements between enterprises, decisions by associations of

enterprises and concerted practices between enterprises which have as
their object or effect the prevention, restriction or distortion of
competition;
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b) abuse by one or more enterprises of a dominant position; and
c) unfair competition.
2. The issues concerning state monopolies and enterprises entrusted with special
or exclusive rights shall not be subject of this Chapter.
ARTICLE 11.3
Cooperation
1. The Parties recognise the importance of cooperation activities relating to

competition law enforcement and competition policy. Cooperation shall be
conducted in accordance with the respective laws and regulations and based
on the availability of the necessary resources. Cooperation shall include
exchange of non-confidential information, consultations, cooperation in
enforcement activities, as provided for in paragraph 2 of this Article, and
technical assistance, including:
a) exchange of experience regarding the promotion and enforcement of

competition law and policy;
b) joint seminars on competition law and law enforcement activities of the

Parties; and
c) any other form of cooperation as agreed by the Parties.
2. Cooperation in law enforcement is carried out as follows:
a) if a Party considers that its interests are affected in the territory of the
other Party in the sense of Article 11.2 of this Agreement, it may request
that the other Party initiates appropriate enforcement activities. Such
request shall take place if possible at an early stage of the anti-
competitive practice under Article 11.2 of this Agreement and should be
of sufficient detail;
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b) the requested Party shall carefully consider the possibility for initiating
enforcement activities or expanding ongoing enforcement activities in
accordance with the requirements of its respective laws and regulations
and inform the requesting Party of the results of such consideration as
soon as practically possible;
c) if enforcement activities are initiated or expanded, the requested Party

shall inform the requesting Party of their outcome and, to the extent
possible, of significant interim developments; and
d) nothing in this Chapter shall limit the discretion of the requested Party to
decide whether to undertake enforcement activities with respect to the
anti-competitive practices identified in the request, or precludes the
requesting Party from withdrawing its request.
ARTICLE 11.4
Consultations
1. To foster understanding between the Parties, or to address specific matters

that arise under this Chapter, each Party shall, upon request of the other Party,
enter into consultations. Such consultations shall be without prejudice to the
rights of each Party to enforce their respective laws and regulations. In the
request for consultations, the requesting Party shall indicate how the matter
affects trade between the Parties. The Party receiving such request shall
promptly hold consultations in order to achieve mutually satisfactory results
in consistence with the provisions of this Chapter.
2. During the consultations in accordance with this Article, the requested Party
shall provide full and sympathetic consideration to the matter that is the
subject of consultations within a reasonable period of time. Both Parties shall
aspire to reach consensus on the issue of concern through constructive
dialogues.
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3. If a Party considers that its interests are still affected after consultations in
accordance with this Article, it may request consultations in the Joint
Committee.
ARTICLE 11.5
Use of Information
1. Where a Party provides information to the other Party for the purposes of
implementing this Chapter, such information shall be used by the latter Party
only for such purposes and shall not be disclosed or transferred to any other
organisation and/or individual without the consent of the Party providing the
information.
2. Notwithstanding any other provision of this Chapter, neither Party is required

to communicate information to the other Party if such communication is
prohibited by their respective laws and regulations.
ARTICLE 11.6
Agreement.
ARTICLE 11.7
Contact Points
1. Each Party shall designate a contact point to monitor the implementation of

this Chapter. The contact points shall work collaboratively to facilitate the
implementation of the provisions of this Chapter.
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2. The Parties shall exchange information containing the names of the designated
competent authorities that shall act as their contact points and the contact
details of relevant officials in such organisations, including telephone and
facsimile numbers, email addresses and other relevant details.
3. The Parties shall promptly notify each other of any change to their contact
points or relevant contact details.
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CHAPTER 12
SUSTAINABLE DEVELOPMENT
ARTICLE 12.1
Objectives
1. The Parties agree to implement this Chapter in a manner consistent with

labour and environmental protection, and sustainable use of their resources. In
this regard the Parties shall:
a) strengthen cooperation on environmental and labour issues; and
b) promote sustainable development.
2. The Parties recognise that economic development, social development and

environmental protection are interdependent and mutually supportive
components of sustainable development.
3. The Parties shall endeavour to promote their trade relations for the purposes
of sustainable development to the extent possible.
ARTICLE 12.2
Scope
This Chapter shall apply to measures adopted or maintained by the Parties

affecting trade-related aspects of environmental and labour issues.
ARTICLE 12.3
General Principles
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1. The Parties recognise the importance of and the need to enhance the capacity
to address trade-related aspects of environmental and labour issues, taking
into consideration the levels of development of the Parties.
2. The Parties recognise the need to strengthen cooperation with the aim of
resolving environmental and labour issues of bilateral, regional and global
concerns.
3. The Parties recognise the sovereign right of each Party to establish its own
levels of national environmental and labour protection and environmental and
labour development policies and priorities, and to adopt or modify
accordingly its relevant environmental and labour laws and regulations and
policies.
4. The Parties may recognise the significance of taking into account scientific,
technical and other information as well as relevant and commonly recognised
international standards when preparing and implementing measures aimed at
protecting the environment and labour that affect trade between the Parties.
5. The provisions of this Chapter shall be without prejudice to the Parties’

obligations in accordance with other Chapters of this Agreement, including
Chapter 8 (Trade in Services, Investment and Movement of Natural Persons).
ARTICLE 12.4
Upholding Levels of Protection
1. The Parties recognise the importance of mutually supportive trade,

environment and labour policies and practices as well as the efforts to
improve environmental and labour protection and enhance trade between the
Parties.
2. Each Party shall endeavour to ensure that its environmental and labour laws
and regulations, policies and practices are not used for the purposes of trade
protectionism.
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3. Neither Party shall seek to encourage or gain trade or investment advantage

by weakening or failing through a sustained or recurring course of action or
inaction to enforce or administer its environmental and labour laws and
regulations, policies and practices in a manner affecting trade between the
Parties.
ARTICLE 12.5
Environmental and Labour Cooperation
1. The Parties recognise the importance of strengthening their capacity to protect

the environment and labour conditions and promoting sustainable
development in their trade and investment relations in accordance with their
respective laws and regulations.
2. The Parties shall endeavour to expand their cooperation in bilateral, regional,

and multilateral fora on environmental and labour issues, recognising that
such cooperation will help them achieve their shared environmental and
labour goals and objectives, including the development and improvement of
environmental and labour protection, practices, and technologies.
3. Cooperation activities under this Chapter may take the following forms:
a) exchange of knowledge and experiences;
b) exchange of experts and researchers;
c) organisation of joint workshops;
d) promotion of cooperative activities between relevant ministries,

research institutes and private enterprises; and
e) development and implementation of joint research, projects and other

relevant activities in areas of mutual interest.
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4. The Parties recognise the following fields of cooperation as particularly

significant:
a) resolving trade-related environmental problems;
b) environmental policy development and institutional building;
c) training and education on environment and climate change issues and

environmental protection;
d) exchange of experience and information in the development and

enforcement of labour and employment-related laws and regulations
and policies;
e) technical assistance and joint/cooperation projects on human resources

development and social security policy aimed at creating decent work
conditions or on the protection of the environment;
f) other mutually agreed areas in accordance with relevant laws and

regulations of the Parties;
g) exchange of information, technology and experience in areas of

environmental standards and models, training and education;
h) environmental education and training aimed at raising public

awareness; and
i) technical assistance and joint regional research programmes.
ARTICLE 12.6
Environmental and Labour Consultations
1. Either Party may request consultations regarding any matter arising under this
Chapter through a written request submitted to the contact point designated by
the other Party in accordance with Article 1.7 of this Agreement. The request
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shall contain information that is specific and sufficient to enable the Party
receiving such request to respond. Unless the Parties agree otherwise,
consultations shall commence within the period of 30 days after a Party
receives the request for consultations.
2. The purpose of the consultations is to seek a mutually agreed solution to the

matter. The Parties shall make every effort to arrive at a mutually satisfactory
outcome, including by considering appropriate cooperation activities to
resolve the matter. The Parties may agree to seek advice or assistance from
domestic experts they deem appropriate.
3. If a Party considers that the matter needs further discussion such Party may
bring the matter to the Joint Committee in order to reach an appropriate
resolution of the matter.
ARTICLE 12.7
International Labour Standards and Agreements
1. The Parties recall the obligations deriving from membership of the

International Labour Organization (ILO) and the ILO Declaration on
Fundamental Principles and Rights at Work and its Follow-up adopted by the
International Labour Conference at its 86th Session in 1998.
2. The Parties reaffirm their commitment under the Ministerial Declaration of

the UN Economic and Social Council on Full Employment and Decent Work
of 2006 to recognise full and productive employment and decent work for all
as a key element of sustainable development for all countries and as a priority
objective of international cooperation and to promote the development of
international trade in a way that is conducive to full and productive
employment and decent work for all.
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ARTICLE 12.8
Review of Sustainability Impacts
The Parties shall periodically review at the meetings of the Joint Committee the
progress achieved in pursuing the objectives set out in this Chapter and may
consider relevant international developments, as appropriate, to identify areas
where further action could promote these objectives.
ARTICLE 12.9
Agreement.
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CHAPTER 13
ELECTRONIC TECHNOLOGIES IN TRADE
ARTICLE 13.1
Scope and Coverage
1. The Parties recognise that electronic commerce may increase trade

opportunities and contribute to economic growth, and underscore the
importance of promoting the use of electronic technologies in trade in order to
minimise the costs and facilitate trade, as well as the importance of
cooperation between the Parties on the issues of electronic commerce under
this Chapter.
2. This Chapter shall apply to measures taken by a Party relating to:
a) the use of electronic documents in trade between the Parties by means of

digital signatures and a trusted third party; and
b) electronic commerce as defined in paragraph b) of Article 13.2 of this

Agreement.
3. For the purposes of paragraph 2 of this Article such measures shall include the
measures taken by:
a) central, regional or local governments and authorities; and
b) non-governmental bodies in the exercise of powers delegated by central,

regional or local governments or authorities.
4. In fulfilling its obligations and commitments under this Chapter, each Party
shall take such reasonable measures as may be available to it to ensure the
observance of such obligations and commitments by regional and local
governments and authorities and non-governmental bodies within its territory.
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ARTICLE 13.2
Definitions
a) “digital certificate” means an electronic document issued by an

authorised organisation, containing information confirming that the
particular digital signature belongs to a certain person;
b) “electronic commerce” means trade with the use of electronic

technologies;
c) “electronic document” means a document where information is

presented in an electronic form which can be certified by means of a
digital signature;
d) “digital signature” means information in electronic form obtained by

using public-key cryptography, which is the transformation of
information by using a private signature key that is verified by a public
signature key, and attached or connected to the other information in
electronic form (information being signed), confirming its integrity and
authenticity and assuring inability to deny authorship;
e) “electronic technologies” means a combination of software and

hardware that provides interaction between the persons of the Parties
using an electronic document;
f) “electronic authentication” means the process of establishing

confidence in user identities electronically presented to an information
system; and
g) “trusted third party” means an organisation vested with the rights in

accordance with the domestic laws and regulations of each Party to
verify a digital signature in a digitally signed electronic document at a
fixed time with regard to author and/or recipient of electronic document.
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ARTICLE 13.3
Electronic Authentication
The Parties shall endeavour to work towards mutual recognition of digital

signatures in the exchange of electronic documents by means of a trusted third
party service.
ARTICLE 13.4
Use of Electronic Documents
1. The Parties shall endeavour:
a) not to adopt or maintain domestic laws and regulations containing the

requirement to confirm the authenticity of the transactions made in
electronic form by presenting documents in paper form; and
b) to ensure that the documents related to trade transactions are presented

to the competent authorities of the Parties in the form of an electronic
document that is digitally signed.
2. The Parties shall endeavour to ensure that in cases where any document is
required for the importation of a product, a participant of trade transaction
could receive such document confirming that the product is imported in
accordance with the requirements of the importing country in electronic form.
ARTICLE 13.5
Private Data Protection
The Parties shall endeavour to adopt and maintain in force measures aimed at the
protection of private data of electronic commerce users.
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ARTICLE 13.6
Cooperation on Electronic Technologies in Trade
1. The Parties shall exchange information and experience with regard to laws
and regulations and programmes in the field of electronic technologies in
trade, in particular with regard to private data protection and improvement of
consumer confidence.
2. The Parties recognise the necessity of participation in bilateral, regional and

multilateral fora on establishing legal frameworks regulating electronic
commerce.
ARTICLE 13.7
Electronic Commerce Development
Recognising the global nature of electronic commerce and the importance of

facilitating the use and development of electronic commerce, the Parties shall:
a) endeavour to develop the legal frameworks for electronic commerce

using relevant international standards on data collection and in
conformity with international practices including, where possible,
decisions on electronic commerce taken within the framework of the
WTO;
b) encourage the private sector to adopt self-regulation, including through

codes of conduct, model contracts, guidelines and enforcement
mechanisms that foster electronic commerce;
c) promote the adoption of transparent and appropriate measures to protect

consumers from fraudulent and deceptive commercial practices when
they engage in electronic commerce; and
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d) promote the cooperation between their respective national consumer

protection agencies on issues related to cross-border electronic
commerce in order to enhance consumer welfare.
ARTICLE 13.8
Implementing Arrangements
1. Competent authorities of the Parties may conclude implementing

arrangements on any matter within the scope of this Chapter. In particular, the
implementing arrangements shall set out understandings reached in
accordance with Articles 13.3, 13.4 and 13.5 of this Agreement.
2. The Parties through the relevant competent authorities shall take all necessary
actions to apply the implementing arrangements within a jointly determined
reasonable period of time.
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CHAPTER 14
DISPUTE SETTLEMENT
ARTICLE 14.1
Objectives
The objective of this Chapter is to provide an effective and transparent process

for the settlement of disputes arising under this Agreement.
ARTICLE 14.2
Definitions
a) “Arbitral Panel” means an Arbitral Panel established pursuant to

Article 14.7 of this Agreement; and
b) “disputing Parties” means the complaining Party and the responding

Party. The Member States of the Eurasian Economic Union and the
Eurasian Economic Union may act jointly or individually as a disputing
Party. In the latter case if a measure is taken by a Member State of the
Eurasian Economic Union, such Member State of the Eurasian
Economic Union shall be a disputing Party, and if a measure is taken by
the Eurasian Economic Union, it shall be a disputing Party.
ARTICLE 14.3
Scope and Coverage
1. Except as otherwise provided for in this Agreement, this Chapter shall apply
with respect to the settlement of disputes between the Parties regarding the
interpretation and/or application of this Agreement wherever a Party considers
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that the other Party has failed to carry out its obligations under this
Agreement.
2. Disputes regarding the same matter between the same disputing Parties arising
under both this Agreement and the WTO Agreement may be settled in either
forum at the discretion of the complaining Party. The forum thus selected
shall be used to the exclusion of the other.
3. For the purposes of this Agreement, the procedural provisions of the relevant
incorporated articles of the WTO Agreement relating to dispute settlement in
case of non-compliance or possible violation shall not be applied to any
Member State of the Eurasian Economic Union which is not a Member of the
WTO.
4. For the purposes of paragraph 2 of this Article, dispute settlement procedures

under the WTO Agreement are deemed to be initiated by a disputing Party’s
request for the establishment of a panel under Article 6 of the WTO
Understanding on Rules and Procedures Governing the Settlement of
Disputes, whereas dispute settlement procedures under this Agreement are
deemed to be initiated upon a request for arbitration pursuant to paragraph 1
of Article 14.7 of this Agreement.
ARTICLE 14.4
Information Exchange and Amicus Curiae
1. The distribution among the Member States of the Eurasian Economic Union
and the Eurasian Economic Union of any procedural document relating to any
dispute arising under this Agreement shall not be viewed as a violation of the
provisions on confidentiality under this Agreement and/or WTO Agreement.
2. Any Member State of the Eurasian Economic Union and the Eurasian
Economic Union having substantial interest in a matter in dispute may have an
opportunity to be heard and to make written submissions to the Arbitral Panel
as amicus curiae.
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ARTICLE 14.5
Good Offices, Conciliation or Mediation
1. The disputing Parties may at any time agree to good offices, conciliation or
mediation. Procedures for good offices, conciliation or mediation may begin
at any time and be terminated at any time upon the request by either disputing
Party.
2. If the disputing Parties so agree, good offices, conciliation or mediation may

continue while the proceedings of the Arbitral Panel provided for in this
Chapter are in progress.
3. Proceedings involving good offices, conciliation and mediation, and in

particular positions taken by the disputing Parties during those proceedings,
shall be confidential and without prejudice to the rights of either disputing
Party in any further proceeding.
ARTICLE 14.6
Consultations
1. The Parties shall make every attempt through consultations to reach a

mutually satisfactory solution of any matter raised in accordance with this
Chapter.
2. A request for consultations shall be submitted in writing to the responding

Party through its contact point or contact points designated in accordance with
Article 1.7 of this Agreement as well as to the Joint Committee and shall give
the reasons for the request, including identification of any measure or other
matter at issue and an indication of the legal basis for the complaint.
3. When the complaining Party submits a request for consultations pursuant to

paragraph 2 of this Article, the responding Party shall:
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a) reply to the request in writing within 10 days from the date of its receipt;
and
b) enter into consultations in good faith within 30 days, or 10 days in cases of

urgency, including those concerning perishable goods, from the date of the
receipt of the request with a view to reaching a prompt and mutually
satisfactory resolution of the matter.
4. Periods of time specified in paragraph 3 of this Article may be changed by

agreement of the disputing Parties.
5. The consultations shall be confidential, and without prejudice to the rights of

either disputing Party in any further proceeding.
6. A disputing Party may request the other disputing Party to make available for
the consultations experts from its governmental agencies or other regulatory
bodies who have expertise in the matter under consultations.
ARTICLE 14.7
Establishment of Arbitral Panel
1. The complaining Party that made a request for consultations under Article
14.6 of this Agreement may request in writing the establishment of an Arbitral
Panel:
a) if the responding Party does not comply with the periods of time in
accordance with paragraph 3 or 4 of Article 14.6 of this Agreement;
b) if the disputing Parties fail to resolve the dispute through such

consultations within 60 days, or within 20 days in cases of urgency,
including those concerning perishable goods, from the date of receipt of
the request for such consultations; or
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c) if the disputing Parties jointly consider that consultations have failed to

settle the dispute during the period of time specified in subparagraph b)
of this paragraph.
2. In cases of urgency, including those concerning perishable goods, the

disputing Parties shall make every effort to accelerate the proceedings to the
greatest extent possible.
3. The request for the establishment of an Arbitral Panel shall be made in writing
to the responding Party through its contact points designated in accordance
with Article 1.7 of this Agreement as well as to the Joint Committee. It shall
indicate whether consultations were held, identify the specific measures at
issue and provide a brief summary of the legal basis of the complaint
sufficient to present the problem clearly.
4. The requirements and procedures specified in this Article may be changed by

mutual agreement of the disputing Parties.
ARTICLE 14.8
Appointment of Arbitrators
1. The Arbitral Panel shall consist of three members.
2. Within 30 days of receipt of the request to establish an Arbitral Panel by the

responding Party, each disputing Party shall appoint an arbitrator. Within 15
days of the appointment of the second arbitrator, the appointed arbitrators
shall choose by mutual agreement the chair of the Arbitral Panel who shall not
fall under any of the following disqualifying criteria:
a) being a national of Viet Nam or a Member State of the Eurasian

Economic Union; or
b) having usual place of residence in the territory of Viet Nam or a

Member State of the Eurasian Economic Union.
146
3. If the necessary appointments have not been made within the periods of time
specified in paragraph 2 of this Article, either disputing Party may, unless
otherwise agreed by the disputing Parties, invite the Secretary-General of the
Permanent Court of Arbitration (hereinafter referred to as “PCA”) to be the
appointing authority. In case the Secretary-General of the PCA is a national of
Viet Nam or a Member State of the Eurasian Economic Union or is incapable
to realise this appointing function, the Deputy Secretary-General of the PCA
or the officer next in seniority who is not a national Viet Nam or a Member
State of the Eurasian Economic Union and who is capable to realise this
appointing function shall be requested to make the necessary appointments.
4. All arbitrators shall:
a) have expertise and/or experience in law, international trade, other

matters covered by this Agreement, or the resolution of disputes arising
under international trade agreements;
b) be chosen strictly on the basis of objectivity, impartiality, reliability and

sound judgment;
c) be independent of, and not be affiliated with or take instructions from a

Party; and
d) disclose to the disputing Parties any direct or indirect conflicts of

interest in respect of the matter at hand.
5. Individuals may not serve as arbitrators for a dispute if they have dealt with
the dispute previously in any capacity, including in accordance with Article
14.5 of this Agreement.
6. If an arbitrator appointed under this Article resigns or becomes unable to act, a

successor arbitrator shall be appointed within 15 days in accordance with the
procedure as prescribed for the appointment of the original arbitrator and the
successor shall have all the powers and duties of the original arbitrator. Any
period of time applicable to the proceeding shall be suspended beginning on
the date the arbitrator resigns or becomes unable to act and ending on the date
a replacement is selected.
147
7. The date of establishment of the Arbitral Panel shall be the date on which the
chair of the Arbitral Panel is appointed.
8. The requirements and procedures specified in this Article may be changed by

mutual agreement of the disputing Parties.
ARTICLE 14.9
Functions of Arbitral Panel
1. The functions of an Arbitral Panel are to make an objective assessment of the

dispute before it, including an objective assessment of the facts of the case and
the applicability of and conformity with this Agreement, and to make such
findings and rulings necessary for the resolution of the dispute referred to it as
it deems appropriate as well as to determine at the request of a disputing Party
the conformity of any implementing measures and/or relevant suspension of
benefits with its final report.
2. The findings and rulings of an Arbitral Panel cannot add to or diminish the
rights and obligations of the Parties provided for in this Agreement.
ARTICLE 14.10
Proceedings of Arbitral Panel
1. The Arbitral Panel proceedings shall be conducted in accordance with the

provisions of this Chapter.
2. Subject to paragraph 1 of this Article, the Arbitral Panel shall regulate its own
procedures in relation to the rights of the disputing Parties to be heard and its
deliberations in consultation with the disputing Parties. The disputing Parties
in consultation with the Arbitral Panel may agree to adopt additional rules and
procedures not inconsistent with the provisions of this Article.
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3. After consulting the disputing Parties, the Arbitral Panel shall as soon as
practicable and whenever possible within 10 days after its establishment, fix
the timetable for the Arbitral Panel process. The timetable shall include
precise deadlines for written submissions by the disputing Parties.
Modifications to such timetable may be made by mutual agreement of the
disputing Parties in consultation with the Arbitral Panel.
4. Upon request of a disputing Party or on its own initiative, the Arbitral Panel
may, at its discretion, seek information and/or technical advice from any
individual or body which it deems appropriate. However, before the Arbitral
Panel seeks such information and/or advice, it shall inform the disputing
Parties. Any information and/or technical advice so obtained shall be
submitted to the disputing Parties for comment. Where the Arbitral Panel
takes the information and/or technical advice into account in the preparation
of its report, it shall also take into account any comment by the disputing
Parties on the information and/or technical advice.
5. The Arbitral Panel shall make its procedural decisions, findings and rulings by
consensus, provided that where the Arbitral Panel is unable to reach consensus
such procedural decisions, findings and rulings may be made by majority
vote. The Arbitral Panel shall not disclose which arbitrators are associated
with majority or minority opinions.
6. The Arbitral Panel shall meet in closed session. The disputing Parties shall be
present at the meetings only when invited by the Arbitral Panel to appear
before it.
7. The hearings of the Arbitral Panel shall be closed to the public, unless the
disputing Parties agree otherwise.
8. The disputing Parties shall be given the opportunity to attend any of the
presentations, statements or rebuttals in the proceedings. Any information
provided or written submission made by a disputing Party to the Arbitral
Panel, including any comment on the descriptive part of the initial report and
response to the questions put by the Arbitral Panel, shall be made available to
the other disputing Party.
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9. The deliberations of the Arbitral Panel and the documents submitted to it shall
be kept confidential.
10. Nothing in this Chapter shall preclude a disputing Party from disclosing
statements of its own positions to the public. A disputing Party shall treat as
confidential information submitted by the other disputing Party to the Arbitral
Panel which that other disputing Party has designated as confidential. A
disputing Party shall also, upon request of a Party, provide a non-confidential
summary of the information contained in its written submissions that could be
disclosed to the public.
11. The venue for hearings shall be decided by mutual agreement of the disputing
Parties. If there is no agreement, the venue shall alternate between the capitals
of the disputing Parties with the first hearing to be held in the capital of the
responding Party.
ARTICLE 14.11
Terms of Reference of Arbitral Panel
Unless the disputing Parties agree otherwise within 20 days from the date of
receipt of the request for the establishment of the Arbitral Panel, the terms of
reference shall be:
“To examine, in the light of the relevant provisions of this Agreement, the matter
referred to in the request for the establishment of an Arbitral Panel pursuant to
Article 14.7 of this Agreement and to make findings and rulings of law and fact
together with the reasons therefore for the resolution of the dispute.”.
ARTICLE 14.12
Termination or Suspension of Proceedings

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1. The Arbitral Panel shall be terminated upon the joint request of the disputing
Parties. In such event, the disputing Parties shall jointly notify the chair of the
Arbitral Panel and the Joint Committee.
2. The Arbitral Panel shall, upon the joint request of the disputing Parties,
suspend its work at any time for a period not exceeding 12 consecutive
months from the date of receipt of such joint request. In such event, the
disputing Parties shall jointly notify the chair of the Arbitral Panel. Within this
period, either disputing Party may authorise the Arbitral Panel to resume its
work by notifying the chair of the Arbitral Panel and the other disputing Party.
In that event, all relevant periods of time set out in this Chapter shall be
extended by the amount of time that the work was suspended for. If the work
of the Arbitral Panel has been suspended for more than 12 consecutive
months, the Arbitral Panel shall be terminated. The authority for establishment
of a new Arbitral Panel by the original disputing Parties on the same matter
referred to in the request for the establishment of the original Arbitral Panel
shall lapse unless the disputing Parties agree otherwise.
ARTICLE 14.13
Reports of Arbitral Panel
1. The reports of the Arbitral Panel shall be drafted without the presence of the
disputing Parties and shall be based on the relevant provisions of this
Agreement, the submissions and arguments of the disputing Parties and any
information and/or technical advice provided to it in accordance with
paragraph 4 of Article 14.10 of this Agreement.
2. The Arbitral Panel shall issue its initial report within 90 days, or 60 days in
cases of urgency, including those concerning perishable goods, from the date
of establishment of the Arbitral Panel. The initial report shall contain, inter
alia, both the descriptive sections and the Arbitral Panel’s findings and
conclusions.
3. In exceptional circumstances, if the Arbitral Panel considers it cannot issue its

initial report within the periods of time specified in paragraph 2 of this Article,
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it shall inform the disputing Parties in writing of the reasons for the delay
together with an estimate of the period within which it will issue its initial
report. Any delay shall not exceed a further period of 30 days unless the
4. A disputing Party may submit written comments on the initial report to the
Arbitral Panel within 15 days of receiving the initial report unless the
5. After considering any written comment by the disputing Parties and making
any further examination it considers necessary, the Arbitral Panel shall present
to the disputing Parties its final report within 30 days of issuance of the initial
report, unless the disputing Parties agree otherwise.
6. If in its final report, the Arbitral Panel finds that a disputing Party’s measure
does not conform with this Agreement, it shall include in its findings and
rulings a requirement to remove the non-conformity.
7. The disputing Parties shall release the final report of the Arbitral Panel as a
public document within 15 days from the date of its issuance, subject to the
protection of confidential information, unless any disputing Party objects. In
this case the final report shall still be released for all Parties to the Agreement.
8. The final report of the Arbitral Panel shall be final and binding for the
disputing Parties with regard to a particular dispute.
ARTICLE 14.14
Implementation
1. The disputing Parties shall immediately comply with the rulings of the
Arbitral Panel. Where it is not practicable to comply immediately, the
disputing Parties shall comply with the rulings within a reasonable period of
time. The reasonable period of time shall be mutually determined by the
disputing Parties. Where the disputing Parties fail to agree on the reasonable
period of time within 45 days of the issuance of the Arbitral Panel’s final
152
report, either disputing Party may refer the matter to the original Arbitral
Panel, which shall determine the reasonable period of time after consulting
with the disputing Parties.
2. Where there is disagreement between the disputing Parties as to whether a

disputing Party has eliminated the non-conformity as determined in the report
of the Arbitral Panel within the reasonable period of time as determined
pursuant to this Article, the other disputing Party may refer the matter to the
original Arbitral Panel.
3. The Arbitral Panel shall issue its report within 60 days from the date on which
the matter referred to in paragraph 1 or 2 of this Article was submitted for its
consideration. The report shall contain the determination of the Arbitral Panel
and the reasons for its determination. When the Arbitral Panel considers that it
cannot issue its report within this period of time, it shall inform the disputing
Parties in writing of the reasons for the delay together with an estimate of the
period within which it will issue its report. Any delay shall not exceed a
further period of 30 days unless the disputing Parties agree otherwise.
4. The disputing Parties may at all times continue to seek mutually satisfactory
resolution on the implementation of the final report of the Arbitral Panel.
ARTICLE 14.15
Compensation and Suspension of Benefits
1. If a disputing Party does not comply with the rulings of the Arbitral Panel
within the reasonable period of time determined in accordance with Article
14.14 of this Agreement, or notifies the other disputing Party that it does not
intend to do so, and/or if the original Arbitral Panel determines that a
disputing Party did not comply with the rulings of the Arbitral Panel in
accordance with Article 14.14 of this Agreement, such disputing Party shall, if
so requested by the other disputing Party, enter into consultations with a view
to agreeing on a mutually acceptable compensation. If no such agreement has
been reached within 20 days from the receipt of the request, the other
disputing Party shall be entitled to suspend the application of benefits granted
153
under this Agreement in respect of the responding Party but only equivalent to
those affected by the measure that the Arbitral Panel has found not to be in
conformity with this Agreement.
2. In considering what benefits to suspend, a disputing Party should first seek to

suspend benefits in the same sector or sectors as that affected by the measure
that the Arbitral Panel has found not to be in conformity with this Agreement.
If such disputing Party considers that it is not practicable or effective to
suspend benefits in the same sector or sectors it may suspend benefits in other
sectors.
3. A disputing Party shall notify the other disputing Party of the benefits which it
intends to suspend, the grounds for such suspension and when suspension will
commence at least 30 days before the date on which the suspension is due to
take effect. Within 15 days from the receipt of such notification, the other
disputing Party may request the original Arbitral Panel to rule on whether the
benefits which a disputing Party intends to suspend are equivalent to those
affected by the measure found not to be in conformity with this Agreement,
and whether the proposed suspension is in accordance with paragraphs 1 and 2
of this Article. The rulings of the Arbitral Panel shall be given within 45 days
from the receipt of such request and shall be final and binding to the disputing
Parties. Benefits shall not be suspended until the Arbitral Panel has issued its
rulings.
4. Compensation and/or suspension of benefits shall be temporary and shall not

be preferred to full elimination of the non-conformity as determined in the
final report of the Arbitral Panel. Compensation and/or suspension shall only
be applied by a disputing Party until the measure found not to be in
conformity with this Agreement has been withdrawn or amended so as to
bring it into conformity with this Agreement, or until the disputing Parties
have resolved the dispute otherwise.
5. Upon request of a disputing Party, the original Arbitral Panel shall rule on the
conformity with the final report of any implementing measure adopted after
the suspension of benefits and, in light of such rulings, whether the suspension
of benefits should be terminated or modified. The rulings of the Arbitral Panel
shall be made within 30 days from the date of the receipt of such request.
154
ARTICLE 14.16
Expenses
1. Unless the disputing Parties agree otherwise:
a) each disputing Party shall bear the costs of its appointed arbitrator, its
own expenses and legal costs; and
b) the costs of the chair of the Arbitral Panel and other expenses associated
with the conduct of its proceedings shall be borne in equal parts by the
disputing Parties.
2. Upon request of a disputing Party, the Arbitral Panel may decide on the
expenses referred to in subparagraph b) of paragraph 1 of this Article taking
into account the particular circumstances of the case.
ARTICLE 14.17
Language
1. All proceedings and documents pursuant to this Chapter shall be conducted in

the English language.
2. Any document submitted for use in the proceedings pursuant to this Chapter
shall be in the English language. If any original document is not in the English
language, the disputing Party submitting it shall provide an English language
translation of such document.
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CHAPTER 15
FINAL PROVISIONS
ARTICLE 15.1
Annexes
The Annexes to this Agreement constitute an integral part of this Agreement.
ARTICLE 15.2
Accession
1. A new Member State of the Eurasian Economic Union shall accede to this
Agreement if the Parties mutually agree on such accession. Such accession
shall be done through an additional protocol to this Agreement.
2. The Eurasian Economic Commission shall promptly notify Viet Nam of any
third country receiving the status of the candidate for membership in the
Eurasian Economic Union and of any accession to the Eurasian Economic
Union.
3. Without prejudice to the accession of the candidate Member State to the

Eurasian Economic Union, the provisions included in Chapter 8 (Trade in
Services, Investment and Movement of Natural Persons) of this Agreement
may be negotiated by Viet Nam on the one side and the candidate Member
State of the Eurasian Economic Union on the other side.
4. Viet Nam and the candidate Member State of the Eurasian Economic Union
shall endeavour to complete the negotiations envisaged in paragraph 3 of this
Article prior to the candidate Member State becoming a Member State of the
Eurasian Economic Union.
156
ARTICLE 15.3
Withdrawal and Termination
1. Each Party may withdraw from this Agreement by giving a six-month

advance notice in writing to the other Party.
2. This Agreement shall terminate for any Member State of the Eurasian
Economic Union which withdraws from the Treaty on the EAEU on the same
date as the withdrawal takes effect. Viet Nam shall be notified in writing by
the Eurasian Economic Union of such withdrawal six months in advance.
ARTICLE 15.4
Evolutionary Clause
1. The Parties undertake to review this Agreement in the light of further

developments in international economic relations, inter alia, within the
framework of the WTO, and to examine in this context and in the light of any
relevant factor the possibility of further developing and deepening their
cooperation under this Agreement and to extend it to areas not covered
therein. The Joint Committee may, where appropriate, make recommendations
to the Parties, particularly with a view to opening up negotiations.
2. The Parties shall undertake a general review of this Agreement with a view to
furthering its objectives in three years after the date this Agreement enters into
force, and every five years thereafter, unless the Parties agree otherwise.
ARTICLE 15.5
Amendments
1. This Agreement may be amended by the Parties by mutual written consent.
2. Amendments shall enter into force according to the provisions of Article 15.6
157
of this Agreement. All amendments shall constitute an integral part of this

Agreement.
ARTICLE 15.6
Entry into Force
1. This Agreement shall enter into force 60 days from the date of receipt of the
last written notification certifying that Viet Nam and the Member States of the
Eurasian Economic Union have completed their respective internal legal
procedures subject to paragraph 2 of this Article. Exchange of such
notifications shall be made between Viet Nam and the Eurasian Economic
Commission.
2. Lack of written notification certifying that the Kyrgyz Republic has completed
its respective internal legal procedures referred to in paragraph 1 of this
Article shall not prevent this Agreement from entry into force between Viet
Nam, of the one part, and the Eurasian Economic Union, the Republic of
Armenia, the Republic of Belarus, the Republic of Kazakhstan and the
Russian Federation, of the other part. This Agreement shall enter into force for
the Kyrgyz Republic after 60 days from the date of receipt by Viet Nam of the
written notification that the Kyrgyz Republic has completed internal legal
procedures necessary for entry into force of this Agreement and not earlier
than the entry into force of the Treaty on the Accession of the Kyrgyz
Republic to the Treaty on the EAEU of 23 December 2014.
158
IN WITNESS WHEREOF, the undersigned, being duly authorised thereto, have

signed this Agreement.
Done at Burabay, this 29th day of May 2015, in two originals in the English
language, both texts being equally authentic.
For the Socialist Republic of Viet Nam For the Republic of Armenia
For the Republic of Belarus
For the Republic of Kazakhstan
For the Kyrgyz Republic
For the Russian Federation
For the Eurasian Economic Union

CHILE-VIETNAMFTA
FREE TRADE AGREEMENT
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF
CHILE
AND
THE GOVERNMENT OF THE SOCIALIST
REPUBLIC OF VIET NAM
1
TABLE OF CONTENTS
Preamble
Chapter 1: Initial Provisions
Chapter 2: General Definitions
Chapter 3: Trade in Goods
Chapter 4: Rules of Origin
Chapter 5: Customs Administration
Chapter 6: Sanitary and Phytosanitary Measures
Chapter 7: Technical regulations, Standards and Conformity assessment
procedures
Chapter 8: Trade Defense
Chapter 9: Cooperation
Chapter 10: Transparency
Chapter 11: Administration
Chapter 12: Dispute Settlement
Chapter 13: Exceptions
Chapter 14: Final Provisions
2
PREAMBLE
The Government of the Republic of Chile and the Government of the Socialist Republic
of Viet Nam, hereinafter referred to as “the Parties”:
Inspired by their longstanding friendship and cooperation and growing trade

relationship;
Desiring to enlarge the framework of relations between them through further

liberalising trade;
Recognising that the strengthening of their economic partnership will bring economic
and social benefits, create new opportunities for employment and improve the living
standards of their people;
Recognising the different levels of economic development between them and the need
to facilitate the expansion of their exports, including, inter alia, through strengthening of
their domestic capacity, efficiency and competitiveness;
Building on their respective rights and obligations under the World Trade Organization
(WTO);
Recalling the Asia-Pacific Economic Cooperation (APEC) goals;
Confirming their shared commitment to trade-facilitation through trade between them;
Desiring to strengthen the cooperative framework for the conduct of economic relations
to ensure it is dynamic and encourages broader and deeper economic cooperation;
Recognising the need to preserve their flexibility to safeguard the public welfares;
Aware that economic development, social development and environmental protection

are components of sustainable development and that free trade agreements can play an
important role in promoting sustainable development; and
Resolved to promote bilateral trade through the establishment of clear and mutually
advantageous trade rules and the avoidance of trade barriers,
Have agreed as follows:
2
CHAPTER 1
INITIAL PROVISIONS
Article 1.1: Establishment of a Free Trade Area
The Parties, consistent with Article XXIV of GATT 1994 hereby establish a free
trade area.
Article 1.2: Relation to Other Agreements
The Parties affirm their existing rights and obligations with respect to each other
under the WTO Agreement and other agreements to which both Parties are party.
3
CHAPTER 2
GENERAL DEFINITIONS
Article 2.1: Definitions of General Application
For the purposes of this Agreement, unless otherwise specified:
Agreement on Customs Valuation means the Agreement on Implementation of Article

VII of the General Agreement on Tariff and Trade 1994, contained in Annex 1A to the
WTO Agreement;
Commission means the Free Trade Commission established pursuant to Article 11.1
(Free Trade Commission);
Customs Authority means the authority that, according to the legislation of each Party,
is responsible for the administration and enforcement of its customs laws:
(a) in the case of Chile, the Chile Customs Service, and
(b) in the case of Viet Nam, the General Department of Viet Nam Customs;
customs duties means duties imposed in connection with the importation of a good
provided that such customs duties shall not include:
(a) charges equivalent to internal taxes, including excise duties, sales tax,
and goods and services taxes imposed in accordance with a Party’s commitments under
paragraph 2 of Article III of the GATT 1994;
(b) anti-dumping or countervailing duty or safeguards duty applied in

accordance with Chapter 8 (Trade Remedies); or
(c) fees or other charges that are limited in amount to the approximate cost
of services rendered, and do not represent a direct or indirect protection for domestic
goods or a taxation of imports for fiscal purposes;
days means calendar days, including weekends and holidays;
GATT 1994 means the General Agreement on Tariffs and Trade 1994, contained in
Annex 1A of the WTO Agreement;
Harmonized System (HS) means the Harmonized Commodity Description and Coding
System governed by The International Convention on the Harmonized Commodity
4
Description and Coding System, including its General Rules of Interpretation, Section
Notes, and Chapter Notes, and their amendments, as adopted and implemented by the
Parties in their respective tariff laws;
heading means the first four digits in the tariff classification number under the
Harmonised System (HS);
measure means any measure by a Party, whether in the form of a law, regulation, rule,
procedure, practice, decision, administrative action or any other form;
originating goods means the goods that qualify as originating goods in accordance with
Chapter 4 (Rules of Origin);
person means both natural and legal persons;
publish includes publication in written form or on the internet;
SPS Agreement means the WTO Agreement on the Application of Sanitary and
Phytosanitary Measures;
subheading means the first six digits in the tariff classification number under the
Harmonised System (HS);
territory means:
(a) with respect to Chile, the land, maritime, and air space under its
sovereignty, and the exclusive economic zone and the continental shelf within which it
exercises sovereign rights and jurisdiction in accordance with international law and its
domestic law; and
(b) with respect to Viet Nam, the land territory, islands, internal waters,
territorial sea, and airspace above them, the maritime areas beyond territorial sea
including seabed and subsoil thereof over which the Socialist Republic of Viet Nam
exercises sovereign rights and jurisdiction in accordance with national legislation and
international law.
WTO means the World Trade Organization; and
WTO Agreement means the Marrakesh Agreement Establishing the World Trade
Organization, done on April 15, 1994.
5
CHAPTER 3
TRADE IN GOODS
Article 3.1: Definitions
Agreement on Agriculture means the WTO Agreement on Agriculture contained in

Annex 1A of the WTO Agreement;
agricultural goods means those goods referred to in Article 2 of the Agreement on

Agriculture;
agricultural export subsidies shall have the meaning assigned to that term in Article
1(e) of the Agriculture Agreement, including any amendment of that Article;
consular transactions means requirements that goods of a Party intended for export to
the territory of the other Party must first be submitted to the supervision of the Consul
of the importing Party in the territory of the exporting Party for the purpose of obtaining
consular invoices or consular visas for commercial invoices, certificates of origin,
manifests, shippers’ export declarations, or any other customs documentation required
on or in connection with importation;
import licensing means an administrative procedure requiring the submission of an

application or other documentation (other than that generally required for customs
clearance purposes) to the relevant administrative body as a prior condition for
importation into the territory of the importing Party;
performance requirement means a requirement that:
(a) a given level or percentage of goods be exported;
(b) goods of the Party granting an import license be substituted for imported
goods;
(c) a person benefiting from an import license purchase other goods or

services in the territory of the Party granting the import licence, or accord a preference
to domestically produced goods;
(d) a person benefiting from an import licence produce goods or supply

services, in the territory of the Party granting the import licence, with a given level or
percentage of domestic content; or
6
(e) relates in any way the volume or value of imports to the volume or value
of exports or to the amount of foreign exchange inflows;
recognition means the acknowledgement by a Party of a particular geographical

indication of the other Party. Protection of such geographical indication in the territory
of each Party is established according to the respective domestic laws and regulations of
each Party; and
TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual

Property Rights, contained in Annex 1C of the WTO Agreement.
Article 3.2: Scope and Coverage
Except as otherwise provided, this Chapter applies to trade in goods of a Party.
Article 3.3: National Treatment
1. Each Party shall accord national treatment to the goods of the other Party in
accordance with Article III of GATT 1994, including its interpretative notes, and to this
end, Article III of GATT 1994 and its interpretative notes, are incorporated into and
made part of this Agreement, mutatis mutandis.
2. The provisions of paragraph 1 regarding national treatment shall also apply to all
laws, regulations and other measures, including those of local government at the sub-
national level.
Article 3.4: Reduction and/or Elimination of Customs Duties
1. Except as otherwise provided in this Agreement, neither Party may increase any
existing customs duty, or adopt any new customs duty, on an originating good.
2. Except as otherwise provided in this Agreement, each Party shall progressively

reduce and/or eliminate its customs duties on originating goods in accordance with its
Schedule in Annex 3-B.
3. If a Party reduces its applied MFN import duty rates after the entry into force of
this Agreement, on the request of the other Party, Parties shall consult to consider the
modification of the tariff commitments in the Committee on Trade in Goods pursuant to
Article 3.12(4).
4. On the request of either Party, the Parties shall consult to consider accelerating
the reduction and/or elimination of customs duties set out in their Schedules in Annex 3-
B. An agreement between the Parties to accelerate the reduction and/or elimination of a
7
customs duty on a good shall supersede any duty rate or staging category determined
pursuant to their Schedules in Annex 3-B for such good.
5. Any modification of tariff commitments, referred to in paragraphs 3 and 4, shall

come into effect after being adopted by the Commission and after each Party completes
its domestic legal procedures.
6. A Party may at any time accelerate unilaterally the reduction and/or elimination
of customs duties on originating goods of the other Party set out in its Schedule in
Annex 3-B. A Party considering this shall inform the other Party as early as practicable
before the new rate of customs duty takes effect.
Article 3.5: Customs Valuation
The Parties shall apply the provisions of Article VII of GATT 1994 and the
WTO Agreement on the Implementation of Article VII of GATT 1994 for the purposes
of determining the customs value of goods traded between the Parties.
Article 3.6: Import and Export Restrictions
1. Except as otherwise provided in this Agreement, neither Party may adopt or

maintain any non-tariff measure, including prohibition or restriction on the importation
of any good of another Party or on the exportation of any good destined for the territory
of the other Party, except in accordance with its WTO rights and obligations or in
accordance with other provisions of this Agreement.
2. The Parties understand that the rights and obligations in paragraph 1 prohibit, in
any circumstances in which any other form of restriction is prohibited, a Party from
adopting or maintaining:
(a) import licensing conditioned on the fulfillment of a performance

requirement; or
(b) voluntary export restraints.
3. Paragraphs 1 and 2 shall not apply to the measures set out in Annex 3-A.
4. Each Party shall ensure the transparency of any non-tariff measures permitted in
paragraph 1 and shall ensure that any such measures are not prepared, adopted or
applied with a view to, or with the effect of, creating unnecessary obstacles to trade
between the Parties.
8
Article 3.7: Administrative Fees and Formalities
1. The Parties agree that fees, charges, formalities and requirements imposed in
connection with the importation and exportation of goods shall be consistent with their
obligations under GATT 1994.
2. A Party may not require consular transactions, including related fees and
charges, in connection with any good imported from the other Party.
3. Each Party shall make available through the internet a current list of the fees and
charges it imposes in connection with importation or exportation.
Article 3.8: Price Band System
1. Chile may maintain its Price Band System as established under its Law 18.525
and its subsequent legal modifications or succeeding system for the goods covered by
that law1, provided that it is applied consistently with Chile’s rights and obligations
under the WTO Agreement.
2. With respect to the goods covered by the Price Band System, Chile shall give
Viet Nam treatment no less favorable than the preferential tariff treatment given to any
third country including countries with which Chile has concluded or will conclude in
the future an agreement notified under Article XXIV of GATT 1994.
Article 3.9: Agricultural Export Subsidies
1. The Parties share the objective of the multilateral elimination of export subsidies
for agricultural goods and shall work together towards an agreement in the WTO to
eliminate those subsidies and prevent their reintroduction in any form.
2. In accordance with their WTO obligations, neither Party shall introduce or

maintain any export subsidies on any agricultural goods destined for the territory of the
other Party.
Article 3.10: Geographical Indications
1. Each Party shall provide procedures for registration of geographical indications

for persons of the other Party. A Party shall accept applications for registration of
1
For greater certainty the only goods covered by the Price Band System are HS 1001.9000, 1101.0000,
1701.1100, 1701.1200, 1701. 9100, 1701.9910, 1701.9920 and 1701. 9990.
9
geographical indications without the requirement for intercession by the other Party on
behalf of its persons.
2. Viet Nam recognizes Pisco, accompanied by an indication of Chile such as

Chilean, Chile, etc.; as a Chilean geographical indication for spirits, within the meaning
of paragraph 1 of Article 22 of the TRIPS Agreement. This shall not prejudice the rights
that Viet Nam has recognized, in addition to Chile, to Peru with respect to Pisco.
3. In accordance with Chapter 9 (Cooperation), Chile will provide capacity

building to Viet Nam regarding the knowledge of production, elaboration and
commercialization of Pisco.
4. For transparency purposes, Chilean geographical indications for wines and

spirits are established by Decree 464 of the Ministry of Agriculture of December 14,
1994, and its amendments, and by the Law 18.455.
Article 3.11: Administration of Trade Regulations
In accordance with Article X of GATT 1994, each Party shall administer in a uniform,
impartial and reasonable manner all its laws, regulations, judicial decisions and
administrative rulings pertaining to:
(a) the classification or the valuation of goods for customs purposes;
(b) rates of duty, taxes or other charges;
(c) requirements, restrictions or prohibitions on imports or exports;
(d) the transfer of payments; and
(e) issues affecting sale, distribution, transportation, insurance, warehousing,

inspection, exhibition, processing, mixing or other use of goods for customs purposes.
Article 3.12: Committee on Trade in Goods
1. The Parties hereby establish a Committee on Trade in Goods, comprising

representatives of each Party.
2. The Committee shall meet on the request of either Party or the Commission to
consider any matter arising under this Chapter, Chapter 4 (Rules of Origin) or Chapter 5
(Customs Administration).
10
3. The Committee shall meet at such venues and times as may be agreed by the
Parties. Meetings may be held by any means as mutually determined by the Parties.
4. The Committee’s functions shall include:
(a) reviewing and monitoring the implementation and operation of the

Chapters referred to in paragraph 2;
(b) identifying and recommending measures to resolve any difference that

may arise, and to promote and facilitate improved market access, including any
acceleration of tariff commitments under Article 3.4;
(c) recommending the Commission to establish any working groups, as it

deems necessary; and
(d) undertaking any additional work that the Commission may assign.
11
ANNEX 3-A
EXCEPTIONS TO ELIMINATION OF IMPORT
AND EXPORT RESTRICTIONS
Article 3.6(1) and (2) shall not apply to:
(a) with respect to Chile, measures concerning the importation of used

vehicles as provided in Law No 18.483 or its successor, provided that such
measures comply with the WTO Agreement; and
(b) with respect to Viet Nam, measures listed by Viet Nam in its Protocol of
Accession to the WTO.
12
ANNEX 3-B
REDUCTION AND/OR ELIMINATION OF CUSTOMS DUTIES
Section A
General Notes
1. The tariff schedule in this Annex contains the following four columns:
(a) Code: the code used in the nomenclature of the Harmonized System
(HS) 2007;
(b) Description: description of the product falling under the heading;
(c) Base Rate: the basic customs duty from which the tariff reduction and/or
elimination program starts; and
(d) Category: the category under which the product concerned falls for the
purposes of tariff reduction and/or elimination.
2. For the purposes of implementing annual installments, the following shall apply:
(a) The first reduction shall take place on the date this Agreement enters into
force; and
(b) The subsequent reductions shall take place on January 1 of each

following year.
Section B
Notes for Schedule of Chile
1. The categories which are applicable to originating goods imported into Chile
from Viet Nam are the following:
(a) “EIF”: Customs duties shall be eliminated entirely and such goods shall
be duty-free on the date this Agreement enters into force;
(b) “Year 5”: Customs duties shall be removed in six (6) equal annual
installments from the base rate beginning on the date this Agreement enters into force,
and such goods shall be duty-free, as from the first day of the 6th year;
13
(c) “Year 10”: Customs duties shall be removed in eleven (11) equal annual
and such goods shall be duty-free, as from the first day of the 11th year; and
(d) “X”: These goods shall be excluded from any tariff commitment referred
to in subparagraphs (a) to (c).
2. For the purposes of the elimination or reduction of customs duties in accordance

with Sections B and C:
(a) any fraction less than 0.1 of a percentage point shall be rounded to the
nearest one decimal place (in the case of 0.05 percent, the fraction is rounded to 0.1
percent); and
(b) in the absence of fraction less than 0.1 of a percentage point in the
number produced pursuant to subparagraph (a) or otherwise existing, any fraction less
than a percentage point, shall be rounded to the nearest whole number.
14
Section C
Schedule of Chile
15
Section D
Notes for Schedule of Viet Nam
1. The categories which are applicable to originating goods imported into Viet
Nam from Chile are the following:
(a) “EIF”: Customs duties shall be eliminated entirely and such goods shall
be duty-free on the date this Agreement enters into force;
(b) “B5”: Customs duties shall be removed in six (6) equal annual
(c) “B5*”: Shall be applied the base rate as from the date of entry into
force, and such goods shall be duty-free, as from the first day of the 6th year;
(d) “B7”: Customs duties shall be removed in eight (8) equal annual
(e) “B7*”: Shall be applied the base rate as from the date of entry into
(f) “B10”: Customs duties shall be removed in eleven (11) equal annual
(g) “B10*”: Shall be applied the base rate as from the date of entry into
(h) “B13”: Customs duties shall be removed in fourteen (14) equal annual
(i) “B15”: Customs duties shall be removed in sixteen (16) equal annual
(j) “P1”: Shall be applied the base rate as from the day this Agreement
enters into force, and be reduced by 20% of the base rate from the first day of the 11th
year;
16
(k) “P2”: Shall be applied the base rate as from the day this Agreement
enters into force, and be reduced by 50% of the base rate from the first day of the 11th
year;
(l) “P3”: Shall be applied the base rate as from the day this Agreement
enters into force, and be reduced to 5% from the first day of the 11th year;
(m) “P4”: Shall be applied the base rate as from the day this Agreement
(n) “P5”: Shall be applied the base rate as from the day this Agreement
(o) “P6”: Customs duties shall be reduced in eleven (11) equal annual
and such goods shall have a tariff of 5% from the first day of the 11th year;
(p) “P7”: Customs duties shall be reduced in eleven (11) equal annual
installments from the base rate beginning on the date this Agreement enters into force to
15% from the first day of the 11th year;
(q) “P8”: Customs duties shall be reduced in eleven (11) equal annual
(r) “P9”: Customs duties shall be reduced in eleven (11) equal annual
(s) “P10”: Shall be applied at the base rate as from the day this Agreement
enters into force, be reduced to 25% from the first day of the 6th year, and be reduced to
(t) “S”: Standstill the base rate as from the date of entry into force; and
(u) “X”: These goods shall be excluded from any tariff commitment referred
to in subparagraphs (a) to (t).
2. For the purposes of the elimination or reduction of customs duties in accordance

with Sections D and E:
17
(a) any fraction less than 0.1 of a percentage point shall be rounded to the
nearest one decimal place (in the case of 0.05 percent, the fraction is rounded to 0.1
percent); and
(b) in the absence of fraction less than 0.1 of a percentage point in the
number produced pursuant to subparagraph (a) or otherwise existing, any fraction less
than a percentage point, shall be rounded to the nearest whole number.
18
Section E
Schedule of Viet Nam
19
CHAPTER 4
RULES OF ORIGIN
Article 4.1:Definitions
aquaculture means the farming of aquatic organisms including fish, molluscs,

crustaceans, other aquatic invertebrates and aquatic plants, from feedstock such as eggs,
fry, fingerlings and larvae, by intervention in the rearing or growth processes to enhance
production such as regular stocking, feeding, or protection from predators;
CIF means the value of the goods imported, and includes the costs of freight and
insurance up to the port or place of entry into the country of importation;
FOB means the free-on-board value of the goods, inclusive of the costs of transport to
the port or site of final shipment abroad;
generally accepted accounting principles (GAAP) means the recognised consensus or

substantial authoritative support in the territory of a Party, with respect to the recording
of revenues, expenses, costs, assets and liabilities; the disclosure of information; and the
preparation of financial statements. These standards may encompass broad guidelines of
general application as well as detailed standards, practices and procedures;
goods shall include materials or products, which can be wholly obtained or produced,
even if they are intended for later use as materials in another production process;
identical and interchangeable goods or materials means goods or materials being of

the same kind and commercial quality, possessing the same technical and physical
characteristics, and which after being incorporated into the finished product cannot be
distinguished from one another for origin purposes by virtue of any markings or mere
visual examination;
issuing authority means the government authority responsible for the certification of
origin:
(a) in the case of Chile, the General Directorate of International Economic

Affairs who may delegate into other bodies or entities the issuance of Certificate of
Origin (Form VC); and
(b) in the case of Viet Nam, the Ministry of Industry and Trade;
20
materials means a good or any matter or substance used or consumed in the production
of goods or physically incorporated into another good or are subject to a process in the
production of another good;
originating goods means goods that qualifies as originating in accordance with the
provisions of this Chapter;
packing materials and containers for transportation means the goods used to protect
a good during its transportation, different from those containers or packaging materials
used for its retail sale;
production means methods of obtaining goods, including growing, mining, harvesting,

raising, breeding, extracting, gathering, collecting, capturing, fishing, trapping, hunting,
manufacturing, processing or assembling goods; and
product specific rules means rules that specify that the materials have undergone a
change in tariff classification, or satisfy a Regional Value Content criterion or a
combination of any of these criteria.
Article 4.2: Origin Criteria
For the purposes of this Chapter, a good shall be considered as originating in a

Party when:
(a) a good is wholly obtained or produced in the Party as set out and defined
in Article 4.3; or
(b) a good is not wholly obtained or produced in the Party, provided that the
said good are eligible under Article 4.4 or Article 4.6.
Article 4.3: Wholly Obtained or Produced Goods
Within the meaning of Article 4.2(a), the following shall be considered as

wholly obtained or produced in the Party:
(a) Plant and plant products, including fruit, flowers, vegetables, trees,
seaweed, fungi and live plants, grown and harvested, picked or gathered in the Party;
(b) Live animals, including mammals, birds, fish, crustaceans, molluscs,

reptiles, bacteria and viruses, born and raised in the Party;
(c) Goods obtained from live animals referred to in paragraph (b) in the
Party;
21
(d) Goods obtained from hunting, trapping, fishing, farming, aquaculture,
gathering or capturing conducted in the Party;
(e) Minerals and other naturally occurring substances, not included in

paragraphs (a) to (d), extracted or taken from its soil, waters, seabed or beneath its
seabed;
(f) Goods taken from the waters, seabed or beneath the seabed outside the
territorial waters of that Party, provided that the Party has the rights to exploit such
waters, seabed and beneath the seabed in accordance with international law;
(g) Goods of sea-fishing and other marine products taken from the high seas
by vessels registered with a Party and entitled to fly the flag of that Party;
(h) Goods processed and/or made on board factory ships registered with a
Party and entitled to fly the flag of that Party, exclusively from products referred to in
paragraph (f) and (g);
(i) Articles collected in the Party which can no longer perform their original
purpose nor are capable of being restored or repaired and are fit only for disposal or
recovery of parts of raw materials, or for recycling purposes;
(j) Waste and scrap derived from:
(i) production in the Party; or
(ii) used goods collected in the exporting Party, provided that such goods
are fit only for the recovery of raw materials; and
(k) Goods obtained or produced in the exporting Party from products

referred to in paragraphs (a) to (j).
Article 4.4: Not Wholly Obtained or Produced Goods
1. For the purposes of Article 4.2(b), goods shall be deemed to be originating in the
Party where working or processing of the goods has taken place:
(a) if the goods have a regional value content (RVC) of not less than forty
percent (40%) calculated using the formula set out in Article 4.5; or
(b) if all non-originating materials used in the production of the goods have
undergone a change in tariff classification (hereinafter referred to as “CTC”) at four-
digit level (i.e. a change in tariff heading) of the Harmonized System.
22
2. Each Party shall permit the exporter of the goods to decide whether to use
paragraphs 1(a) or 1(b) when determining whether the goods qualify as originating
goods of the Party.
3. Notwithstanding paragraph 1, goods shall qualify as originating goods if the

goods satisfy the product specific rules as specified in Annex 4-B.
4. Where a product specific rule provides a choice of rules from a RVC-based rule
of origin, a CTC-based rule of origin, or a combination of any of these, each Party shall
permit the exporter of the goods to decide which rule to use in determining whether the
goods qualify as originating goods of the Party.
5. Where product specific rules requiring that the materials used have undergone
CTC, the rules shall apply only to non-originating materials.
Article 4.5: Calculation of Regional Value Content
1. For the purposes of Article 4.4, the formula for calculating Viet Nam – Chile
Value Content or RVC is as follows:
Value of Non-
Originating
FOB Price -
Materials or Goods
RVC = x 100 %
FOB Price
2. For the purposes of calculating the RVC provided in paragraph 1:
(a) Value of Non-Originating Materials or Goods shall be:
(i) The CIF value at the time of importation of the goods or

Importation can be proven; or
(ii) The earliest ascertained price paid for the goods of undetermined
origin in the territory of the Party where the working or
processing takes place.
(b) FOB price is the FOB value of the goods. FOB price shall be determined
by adding the value of materials, production cost, profit and other costs.
23
Article 4.6: Accumulation
Unless otherwise provided in this Chapter, goods originating in a Party, which

are used in another Party as materials for finished goods eligible for preferential tariff
treatment, shall be considered to be originating in the latter Party where working or
processing of the finished goods has taken place.
Article 4.7: Minimal Operations or Processes
The following minimal operations or processes, undertaken exclusively by

themselves or in combination, do not confer origin:
(a) operations to ensure the preservation of products in good condition

during transport and storage such as drying, freezing, ventilation, chilling and like
operations;
(b) sifting classifying, washing, cutting, slitting, bending, coiling, or

uncoiling, sharpening, simple grinding, slicing;
(c) cleaning, including removal of oxide, oil, paint or other coverings;
(d) painting and polishing operations;
(e) testing or calibration;
(f) placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or
boards and all other simple packaging operations;
(g) simple mixing2 of goods, whether or not of different kinds;
(h) simple assembly3 of parts of products to constitute a complete good;
(i) changes of packing, unpacking or repacking operations, and breaking up

and assembly of consignments;
2
“Simple mixing” generally describes an activity which does not need special skills, machine, apparatus
or equipment especially produced or installed for carrying out the activity. However, simple mixing does
not include chemical reaction. Chemical reaction means a process (including a bio chemical process)
which results in a molecule with a new structure by breaking intra molecular bonds and by forming new
intra molecular bonds, or by altering the spatial arrangement of atoms in a molecule.
3
“Simple assembly” generally describes an activity which does not need special skills, machines,
apparatus or equipment especially produced or installed for carrying out the activity.
24
(j) affixing or printing marks, labels, logos and other like distinguishing
signs on goods or their packaging;
(k) mere dilution with water or another substance that does not materially
alter the characteristics of the goods; and
(l) husking, partial or total bleaching, polishing and glazing of cereals and
rice.
Article 4.8: Direct Consignment
1. An originating good shall be deemed as directly consigned from the exporting

Party to the importing Party:
(a) if the goods are transported without passing through the territory of any
non-Party; or
(b) if the goods are transported for the purpose of transit through non-Party
with or without transshipment or temporary storage in such non-Party, provided that:
(i) the transit is justified for geographical reasons or transport

requirements;
(ii) the goods have not entered into trade or consumption in the
territory of the non-Party; and
(iii) the goods have not undergone any operation in the territory of the
non-Party other than unloading, reloading and splitting-up/bulk breaking
or any operation required to keep the goods in good condition.
2. In the case where an originating good of the exporting Party is imported through
one or more non-Parties or after an exhibition in a non-Party, the Customs Authority of
the importing Party may require importers, who claim the preferential tariff treatment
for the good, to submit supporting documentation such as transport, customs documents
or other documents.
Article 4.9: De Minimis
A good that does not undergo a change in tariff classification shall be considered
as originating if the value of all non-originating materials used in its production that do
not undergo the required change in tariff classification does not exceed ten percent
(10%) of the FOB value of the good and the good meets all other applicable criteria set
forth in this Chapter for qualifying as an originating good.
25
Article 4.10: Treatment of Packages, Packing Materials and Containers
1. If a good is subject to the RVC provided in Article 4.4, the value of the packages
and packing materials for retail sale, shall be taken into account in determining the
origin of that good as originating or non-originating, as the case may be, provided that
the packages and packing materials are considered to be forming a whole with the good.
2. If a good is subject to the change in tariff classification criterion provided in

Article 4.4, packages and packing materials classified together with the packaged good,
shall not be taken into account in determining origin.
3. Packing materials and containers used exclusively for the transportation of a

good shall not be taken into account in determining the origin of such goods.
Article 4.11: Accessories, Spare Parts and Tools
1. If a good is subject to the requirements of CTC, the origin of accessories, spare

parts, tools and instructional or other information materials presented with the good
shall not be taken into account in determining whether the good qualifies as an
originating good, provided that:
(a) the accessories, spare parts, tools and instructional or other information
materials are not invoiced separately from the good; and
(b) the quantities and value of the accessories, spare parts, tools and
instructional or other information materials are customary for the good.
2. If a good is subject to the RVC-based rule of origin, the value of the accessories,
spare parts, tools and instructional or other information materials shall be taken into
account as the value of the originating or non-originating materials, as the case may be,
in calculating the RVC of the originating good.
Article 4.12: Indirect Materials
1. Indirect materials shall be treated as originating materials regardless of where

they are produced.
2. For the purposes of this Article, indirect materials means a good used in the
production, testing or inspection of another good but not physically incorporated into
the good, or a good used in the maintenance of buildings or the operation of equipment
associated with the production of a good, including:
(a) fuel and energy;
26
(b) tools, dies and moulds;
(c) spare parts and materials used in the maintenance of equipment and
buildings;
(d) lubricants, greases, compounding materials and other materials used in

production or used to operate equipment and buildings;
(e) gloves, glasses, footwear, clothing, safety equipment and supplies;
(f) equipment, devices and supplies used for testing or inspecting the good;
(g) catalyst and solvent; and
(h) any other goods that are not incorporated into the good but of which use
in the production of the good can reasonably be demonstrated to be a part of that
production.
Article 4.13: Identical and Interchangeable Materials
1. The determination of whether identical and interchangeable materials are

originating materials shall be made either by physical segregation of each of the
materials or by the use of GAAP of stock control applicable, or inventory management
practice, in the exporting Party.
2. Once a decision has been taken on the inventory management method, that
method shall be used throughout the fiscal year.
Article 4.14: Certificate of Origin
A claim that a good shall be accepted as eligible for preferential tariff treatment
shall be supported by a Certificate of Origin (Form VC), as set out in Annex 4-C issued
by the issuing authority and notified to the other Party in accordance with the
Operational Certification Procedures, as set out in Annex 4-A.
27
ANNEX 4-A
OPERATIONAL CERTIFICATION PROCEDURES (OCP)
Rule 1: Definitions
For the purposes of this Annex:
exporter means a natural or juridical person located in the territory of a Party where a
good is exported from by such a person;
importer means a natural or juridical person located in the territory of a Party where a
good is imported into by such a person;
preferential tariff treatment means the rate of customs duties of the importing Party
applicable to originating goods of the exporting Party; and
producer means a natural or juridical person who carries out production in the territory
of a Party.
Rule 2: Authorities
Each Party shall provide the other Party with the names and addresses of its
respective issuing authority to issue the Certificate of Origin and shall provide the
official seals used by the said authorities in hard copy and soft copy format to the other
Party. Any change in the said list shall be promptly provided in the same manner.
Rule 3: Supporting Documents
For the purposes of determining originating status, the issuing authority shall
have the right to request supporting documentary evidence or to carry out any check it
considers appropriate in accordance with the respective laws and regulations of a Party.
Rule 4: Certificate of Origin (Form VC)
1. A claim that goods eligible for preferential tariff treatment under this Agreement
shall be supported by a Certificate of Origin as prescribed in Annex 4-C.
2. The Certificate of Origin (Form VC) shall be issued by the issuing authority of
the exporting Party.
3. The Certificate of Origin (Form VC) must be on ISO A4 size white paper in
conformity with the specimen shown in Annex 4-C. It shall be made in English.
28
4. The Certificate of Origin (Form VC) shall comprise the original in the case of
Chile, and the original and two (2) copies in the case of Viet Nam.
5. Each Certificate of Origin (Form VC) shall bear a reference number separately
given by each place or office of issuance.
6. Signatures on the Certificate of Origin (Form VC) of the authorised signatory

shall be autographed.
7. Official seals or impressions of stamps on the Certificate of Origin (Form VC)

of the issuing authority of the exporting Party may be manually put or electronically
printed.
8. For the purpose of checking the Certificate of Origin (Form VC), both Parties
shall provide websites with some key information of the Certificate of Origin issued by
the exporting Party such as Reference Number, HS code, description of goods, date of
issuance, quantity and name of the exporter.
9. The original of a Certificate of Origin (Form VC) is to be forwarded by the

exporter to the importer for submission to the Customs Authority of the importing
Party. In the case of Viet Nam the copies of the Certificate of Origin (Form VC) are to
be retained by both the exporter and the issuing authority of the exporting Party,
respectively.
10. The Parties should implement an electronic system of certification of origin no

later than two (2) years after the entry into force of this Agreement. The Parties also
recognize as valid electronic signatures.
Rule 5: Treatment of Erroneous Declaration in the Certificate of Origin
1. The Customs Authority of the importing Party will disregard minor errors, such
as slight discrepancies or omissions, typographical errors, and information which falls
outside the designated box, provided that these minor errors do not affect the
authenticity of the Certificate of Origin (Form VC) or the accuracy of the information
included in the Certificate of Origin (Form VC).
2. Neither erasures nor superimpositions are allowed on a Certificate of Origin

(Form VC). Any alteration is to be made by striking out the erroneous parts and making
any additions which may be required. Such alterations are to be approved by an
authorized signatory of the Certificate of Origin (Form VC) and certified by the issuing
authority of the exporting Party. Unused spaces are to be crossed out to prevent any
subsequent addition.
29
Rule 6: Issuance of the Certificate of Origin
1. The Certificate of Origin (Form VC) shall be issued prior to or at the time of
shipment.
2. Notwithstanding paragraph 1, the Certificate of Origin (Form VC) may be issued

retroactively but no longer than one (1) year after the date of shipment and shall be duly
and prominently marked “Issued Retroactively”.
Rule 7: Certified True Copy
In the event of theft, loss or destruction of a Certificate of Origin (Form VC), the
exporter may apply in writing to the issuing authorities for a certified true copy of the
original to be made out on the basis of the export documents in their possession bearing
the endorsement of the words “CERTIFIED TRUE COPY” in Box 5. This certified
copy shall bear the date of the original Certificate of Origin (Form VC).
Rule 8: Claim for Preferential Tariff Treatment
1. For the purposes of claiming preferential tariff treatment, the importer shall
submit upon request to the Customs Authority of the importing Party a Certificate of
Origin (Form VC) and other documents as required in accordance with the laws and
regulations of the importing Party.
2. In cases when a Certificate of Origin (Form VC) is rejected by the Customs

Authority of the importing Party, the subject Certificate of Origin (Form VC) shall be
marked accordingly in Box 4, duly notified of the grounds for the denial of preferential
tariff treatment and returned to the issuing authority of the exporting Party. The issuing
authority may consider the clarification and send it to the Customs Authority of the
importing Party.
Rule 9: Validity of the Certificate of Origin
The Certificate of Origin shall remain valid for a period of twelve (12) months
from the date of issuance.
Rule 10: Waiver of Certificate of Origin
1. In the case of consignments of goods originating in the exporting Party and not
exceeding US$ 200.00 FOB, the issuance of Certificate of Origin (Form VC) shall be
waived.
30
2. The Customs Authority of the importing Party shall waive the requirement for a
Certificate of Origin (Form VC) in accordance with paragraph 1, provided that the
importation does not form part of one or more importations that may reasonably be
considered to have been undertaken or arranged for the purpose of avoiding the
certification requirements of this Annex.
Rule 11: Record Keeping Requirement
1. For the purposes of the verification process pursuant to Rules 12 and 13, the
producer or exporter applying for the issuance of a Certificate of Origin (Form VC)
shall, subject to the laws and regulations of the exporting Party, keep its supporting
records for application for five (5) years from the date of issuance of the Certificate of
Origin (Form VC).
2. The application for Certificates of Origin (Form VC) and all documents related
to such application shall be kept by the issuing authorities for five (5) years from the
date of issuance.
3. An importer claiming preferential tariff treatment for goods imported into a

Party’s territory shall maintain, for five (5) years from the date of importation of the
goods, a Certificate of Origin or other information demonstrating that the goods qualify
as originating, and all other documents that the Party may require relating to the
importation of the goods, in accordance with its domestic laws and regulations.
Rule 12: Request for Information Concerning the Certificate of Origin
1. Information relating to the authenticity of the Certificate of Origin (Form VC)

shall be furnished upon request of the Customs Authority of the importing Party.
2. For the purposes of determining whether a good imported from the exporting
Party under preferential tariff treatment qualifies as an originating good of the exporting
Party, the Customs Authority of the importing Party may request information relating to
the origin of the good. The request shall be on the basis of the Certificate of Origin
(Form VC) concerned, specifying the reasons and any additional information suggesting
that the particulars given on the said Certificate of Origin (Form VC) may be inaccurate.
3. For the purposes of paragraph 2, the issuing authority of the exporting Party
shall provide the information requested within a period of ninety (90) days from the date
of receipt of the request.
4. For the purposes of paragraph 2, the issuing authority of the exporting Party may
request the exporter to whom the Certificate of Origin (Form VC) has been issued, or
31
the producer of the good in the exporting Party referred to in Rule 12 to provide the
former with the information requested.
5. The request of information in accordance with paragraph 1 shall not preclude the
use of the verification visit provided for in Rule 13.
6. During the procedures provided for in this Rule and Rule 13, the Customs
Authority of the exporting Party may suspend the preferential tariff treatment while
awaiting the result of the verification, and shall not wait for the procedures to be
completed before it releases the good to the importer, unless subject to appropriate
administrative measures.
Rule 13: Verification Visit
1. The Customs Authority of the importing Party may request the issuing authority
of the exporting Party to conduct a verification visit.
2. Prior to conducting a verification visit, the Customs Authority of the importing

Party shall deliver a written communication with such request to the issuing authority of
the exporting Party at least forty (40) days in advance of the proposed date of the visit,
the receipt of which is to be confirmed by the issuing authority of the exporting Party.
The issuing authority of the exporting Party shall request the written consent of the
exporter or the producer of the good in the exporting Party whose premises are to be
visited.
3. For the compliance of paragraph 1, the issuing authority of the exporting Party
shall collect and provide information relating to the origin of a good as provided for in
Rule 21, and check, for that purpose, the facilities used in the production of the good,
through a visit with the Customs Authority of the importing Party to the premises of the
exporter to whom the Certificate of Origin has been issued, and shall provide
information relating to the origin of the good in the possession of the issuing authority
of the exporting Party during the visit pursuant to paragraph 1.
4. The communication referred to in paragraph 2 shall include:
(a) the identity of the Customs Authority issuing the communication;
(b) the name of the exporter or producer of the good in the exporting Party
whose premises are requested to be visited;
(c) the proposed date and place of the visit;
32
(d) the objective and scope of the proposed visit, including specific reference to
the good subject of the verification referred to in the Certificate of Origin (Form VC);
and
(e) the names and titles of the officials of the Customs Authority of the
importing Party to be present during the visit.
5. The issuing authority of the exporting Party shall respond in writing to the
Customs Authority of the importing Party, within thirty (30) days of the receipt of the
communication referred to in paragraph 2, if it accepts or refuses to conduct the visit
requested pursuant to paragraph 1.
6. The issuing authority of the exporting Party receiving the notification may
postpone the visit and notify the Customs Authority of the importing Party of such
intention. Notwithstanding any postponement, any verification visit shall be carried out
within sixty (60) days from the date of such receipt, or for a longer period as the Parties
may agree.
7. The issuing authority of the exporting Party shall, in accordance with the laws
and regulations of the exporting Party, provide information to the Customs Authority of
the importing Party pursuant to paragraph 3, within forty five (45) days from the last
day of the visit or any other mutually agreed period.
8. The verification visit process, including the actual visit and determination of
whether the subject goods are originating or not, shall be carried out and its results
communicated to the issuing authority within a maximum of one hundred and eighty
(180) days.
Rule 14: Determination of Origin and Preferential Tariff Treatment
1. The Customs Authority of the importing Party may deny preferential tariff
treatment to a good for which an importer claims preferential tariff treatment, where the
good does not qualify as an originating good in accordance with this Chapter and/or
where the importer fails to comply with any of the relevant requirements of this Annex.
2. The Customs Authority of the importing Party may determine that a good does
not qualify as an originating good of the exporting Party and may deny preferential
tariff treatment, and a written determination thereof shall be sent to the issuing authority
of the exporting Party:
(a) where the issuing authority of the exporting Party fails to respond to the
request within the period referred to in Rule 12(2) or Rule 13(2);
33
(b) where the issuing authority of the exporting Party refuses to conduct a
visit, or fails to respond to the communication referred to in Rule 12(1) within the
period referred to in Rule 13(2); or
(c) where the information provided to the Customs Authority of the

importing Party pursuant to Rule 12 or Rule 13 is not sufficient to prove that the good
qualifies as an originating good of the exporting Party.
3. After carrying out the procedures outlined in Rule 12 or Rule 13 as the case may
be, the Customs Authority of the importing Party shall provide the issuing authority of
the exporting Party with a written determination of whether or not the good qualifies as
an originating good of the exporting Party, including findings of fact and the legal basis
for the determination, within forty five (45) days from the date of receipt of the
information provided by the issuing authority of the exporting Party pursuant to Rule 12
or Rule 13. The issuing authority of the exporting Party shall inform such determination
by the Customs Authority of the importing Party to the exporter of the good in the
exporting Party, whose premises were subject to the visit referred to in Rule 13.
4. The issuing authority of the exporting Party shall, when it cancels the decision to
issue the Certificate of Origin (Form VC), promptly notify the cancellation to the
exporter to whom the Certificate of Origin (Form VC) has been issued, and to the
Customs Authority of the importing Party except where the Certificate of Origin (Form
VC) has been returned to the issuing authority of the exporting Party. The Customs
Authority of the importing Party may deny preferential tariff treatment when it receives
the notification of cancellation.
Rule 15: Confidentiality
1. The Parties shall maintain, in accordance with their respective laws and
regulations, the confidentiality of information submitted under the provisions of this
Chapter and shall protect that information from disclosure that could prejudice the
competitive position of the person who provided the information. The information may
only be disclosed to those authorities responsible for the administration and
enforcement of origin determination.
2. Any information communicated between the Parties shall be treated as

confidential and shall only be used for the validation of Certificates of Origin (Form
VC).
34
Rule 16: Documentation for Direct Consignment
For the purposes of Article 4.8(1)(b) of this Chapter, where transportation is effected
through the territory of one or more non-Parties, the following documents, upon request
by the Customs Authority of the importing Party, shall be submitted:
(a) a thorough Bill of Lading issued in the exporting Party;
(b) a Certificate of Origin (Form VC) issued by the issuing authority of the
exporting Party; and
(c) supporting documents in evidence that the requirements of Article

4.8(1)(b) (ii) and (iii) of this Chapter are being complied with.
Rule 17: Non-Party Invoicing
1. The Customs Authority of the importing Party shall accept a Certificate of

Origin (Form VC) in cases where the invoice is issued by a company located in a non-
Party provided that the goods meet the requirements of this Chapter.
2. The exporter shall indicate “non-Party invoicing” and information such as name
and country of the company issuing the invoice in the Certificate of Origin (Form VC).
Rule 18: Sanctions Against False Declaration
1. Each Party shall establish or maintain appropriate sanctions against its exporters
to whom a Certificate of Origin (Form VC) has been issued, for providing false
declaration or documents to the issuing authority of the exporting Party, prior to the
issuance of a Certificate of Origin (Form VC).
2. Each Party shall, in accordance with its laws and regulations, take measures
which it considers appropriate against its exporters to whom a Certificate of Origin
(Form VC) has been issued if they fail to notify in writing to the Competent Authority
of the exporting Party without delay after having known, following the issuance of the
Certificate of Origin, that such good does not qualify as an originating good of the
exporting Party.
Rule 19: Obligations of the Exporter
The exporter to whom a Certificate of Origin (Form VC) has been issued in the
exporting Party referred to in Rule 4, shall notify, without delay, in writing to the
issuing authority of the exporting Party, when such exporter knows that such good does
not qualify as an originating good of the exporting Party.
35
Rule 20: Obligations of the Importer
Except as otherwise provided for in this Annex, the Customs Authority of the
importing Party shall require an importer who claims preferential tariff treatment for
goods imported from the other Party to:
(a) make a customs declaration, based on a valid Certificate of Origin (Form

VC), that the goods qualifies as an originating good of the exporting Party;
(b) have the Certificate of Origin (Form VC) in its possession at the time the
declaration is made;
(c) provide the Certificate of Origin (Form VC) on the request of the
Customs Authority of the importing Party; and
(d) promptly notify the Customs Authority and pay any duties owing where
the importer has reason to believe that the Certificate of Origin (Form VC) on which a
declaration was based contains information that is not correct.
Rule 21: Obligations of the Issuing Authority
The issuing authority shall carry out proper examination upon each application
for the Certificate of Origin (Form VC) to ensure that:
(a) the application and the Certificate of Origin (Form VC) are duly
completed and signed by the exporter;
(b) the origin of the good is in conformity with the provisions of this
Agreement;
(c) other statements on the Certificate of Origin (Form VC) correspond to

supporting documentary evidence submitted;
(d) the Certificate of Origin (Form VC) is signed by the issuing authority;
(e) the description, quantity and weight of goods, marks and number of
packages, number and kinds of packages, as specified, conform to the products to be
exported; and
(f) multiple items declared on the same Certificate of Origin (Form VC)
shall be allowed, provided that each item qualifies separately in its own right.
36
Rule 22: Customs Duty Refund
1. Where an originating good was imported into the territory of Chile but no claim
for preferential tariff treatment was made at the time of importation, the importer of the
good may, no later than one (1) year after the date on which the good was imported,
apply for a refund of any excess duties paid to the Customs Authority as the result of the
good not having been accorded preferential tariff treatment, on presentation of:
(a) a written declaration that the good qualified as originating at the time of
importation;
(b) a Certificate of Origin (Form VC); and
(c) such other documentation relating to the importation of the good as the
importing Party may require.
2. Where an originating good was imported into the territory of Viet Nam but no
claim for preferential tariff treatment was made at the time of importation, the
preferential tariff treatment should be accorded in accordance with its domestic laws
and regulations.
Rule 23: Transitional Provision for Goods in Transit or Storage
An importer may not claim preferential tariff treatment for a good which, on the
date of entry into force of this Agreement, is in transport from the exporting Party to the
importing Party or in temporary storage in warehouses, except that:
(a) the good otherwise satisfies all applicable requirements of this Chapter;
and
(b) the importer provides, in accordance with the laws and regulations of the
importing Party, the Customs Authority of the importing Party with the Certificate of
Origin (Form VC) issued retroactively and, if required, such other documentation
relating to the importation of the good, within a period not exceeding four (4) months
after the entry into force of this Agreement.
37
ANNEX 4-B
PRODUCT SPECIFIC RULES4
Section A
General Notes
1. For the purposes of the product specific rules set out in this Annex:
(a) the specific rule, or specific set of rules, that applies to a particular
chapter, heading or subheading is set out immediately to the chapter, heading or
subheading;
(b) a rule applicable to a heading shall take precedence over a rule applicable
to the chapter which is parent to that tariff item;
(c) a rule applicable to a subheading shall take precedence over a rule

applicable to the heading or chapter which is parent to that tariff item;
(d) a requirement of a change in tariff classification applies only to non-

originating materials;
(e) the following definitions shall apply:
(i) chapter means the first two digits in the tariff classification number
under the Harmonized System (HS);
(ii) heading means the first four digits in the tariff classification number
under the Harmonized System (HS); and
(iii) subheading means the first six digits in the tariff classification
number under the Harmonized System (HS).
2. For the purposes of column 3 of this Annex:
(a) RVC 40% means that the good must have a regional value content of
not less than 40% as calculated under Article 4.5;
(b) RVC 50% means that the good must have a regional value content of
not less than 50% as calculated under Article 4.5;
4
This Annex is based on the Harmonized System 2007.
38
(c) CC means that all non-originating materials used in the production of the
good have undergone a change in tariff classification at the 2-digit level;
(d) CTH means that all non-originating materials used in the production of
the good have undergone a change in tariff classification at the 4-digit level; and
(e) CTSH means that all non-originating materials used in the production of
the good have undergone a change in tariff classification at the 6-digit level.
39
Section B
Product Specific Rules
40
ANNEX 4-C
CERTIFICATE OF ORIGIN (FORM VC)
CERTIFICATE OF ORIGIN Page : ______/______

1. Exporter's business name, address, country
4. Reference No. : _____________
VIET NAM - CHILE

Free Trade Agreement
FORM VC
Issued in ____________________
(Country)
2. Consignee's name, address, country
(See Overleaf Notes)

For Official Use
Preferential Tariff Treatment Given under FTA
Preferential Tariff Treatment Not Given under FTA

(please state reason(s))
…………………………………………
Signature of Authorized Signatory of the Importing Country
3. Means of transport and route (as far as known) 5.
Issued Retroactively
Departure date:
Non-Party Invoicing
Certified True Copy

Vessel's name/Aircraft etc:
Port of Discharge:
6. Item 7. Marks and 8. Number and type of packages, description of goods 9. Origin 10. Gross 11. Number
number numbers of (including HS code) criterion weight or and date of
packages quantity invoices
41
12.Declaration by the exporter: 13. Certification
The undersigned, hereby declares that the above details and It is hereby certified, on the basis of control carried out, that the
statement are correct; that all the goods were produced in declaration by the exporter is correct.
.......................................................
(country)
and that they comply with the origin requirements specified for
these goods in the VCFTA Agreement
................................................................................
Place and date, signature and stamp of
............................................................. Issuing Authority
Place and date, name, signature and company authorized

signatory
OVERLEAF NOTES
For the purpose of claiming preferential tariff treatment, the document should be completed legibly and filled by the
exporter. All items of the form should be completed in the English Language.
If the space of this document is insufficient to specify the necessary particulars for identifying the goods and other
related information, the exporter may provide the information using additional Certificate of Origin.
Box 1: State the full name, address and country of the exporter.
Box 2: State the full name, address and country of the consignment.
Box 3: Provide the departure date, the name of vessel/aircraft and the name of the port of discharge, as far as known.
Box 4: State the country where the Certificate of Origin is issued.
Box 5:
- If the Certificate of Origin is issued Retroactively, the “Issued Retroactively” box should be ticked (√)
- In case where invoices are issued by a non-Party, the “Non-Party invoicing” box should be ticked (√)
- In case the Certificate of Origin is a duplicate of the original, in accordance with Rule 8, the “Certified True
Copy” box should be ticked (√).
Box 6: Provide the item number.
Box 7: Provide the marks and number of packages.
Box 8: Provide the number and type of packages, HS code and description of each good consigned. The HS code
should be indicated at the six-digit level.
The description of the good on a Certificate of Origin should be substantially identical to the description on
the invoice and, if possible to the description under HS code for the good.
Box 9: For the goods that meet the origin criterion, the exporter must indicate the origin criterion met, in the manner
shown in the following table:
Description of Criterion Criterion (Insert in Box 9)
a) A good is wholly obtained or produced in the territory of a Party as WO
defined in Article 4.3 of the VCFTA Agreement.
b) Local Value Content (put the real percentage) RVC 40%
c) Change in Tariff Classification The actual CTC rule, for example: CC or

CTH or CTSH
Also, exporters should indicate the following where applicable:
(d) Goods which comply with Article 4.6 of the VCFTA Agreement ACU
(e) Goods which comply with Article 4.9 of the VCFTA Agreement DMI
Box 10: For each good indicate the quantity or gross weight
Box 11: Indicate the invoice number(s) and date(s) for each good. The invoice should be the one issued for the
importation of the good into the importing Party.
42
Where invoices are issued by a third country, in accordance with Rule 17 of the Operational
Certification Procedures, the “Non-Party Invoicing” box in box 5 should be ticked (√). The number of
invoices issued for the importation of goods into the importing Party should be indicated in box 11,
and the full legal name and address of the company or person that issued the invoices shall be
indicated in box 8.
In a case where the invoice number issued in a non-Party at the time of issuance of the Certificate of
Origin is not known, Box 11 should be left blank.]
Box 12: This Box should be completed, signed and dated by the exporter. The “Date” should be the date when
the Certificate of Origin is applied for.
Box 13: This Box should be completed, dated, signed and stamped by the Issuing Authority of the exporting
Party. The “Date” should be the date when the Certificate of Origin is issued.
43
CHAPTER 5
CUSTOMS ADMINISTRATION
customs law means such laws and regulations administered and enforced by the
Customs Authority of each Party concerning the importation, exportation, and
transit/transshipment of goods, as they relate to customs duties, charges, and other taxes,
or to prohibitions, restrictions, and other similar controls with respect to the movement
of controlled items across the boundary of the customs territory of each Party;
customs procedures means the treatment applied by the Customs Authority of each
Party to goods which are subject to customs control;
requesting authority means the Customs Authority which requests assistance; and
requested authority means the Customs Authority from which assistance is

requested.
Article 5.2: Objectives
The objectives of this Chapter are to:
(a) simplify and harmonize customs procedures of the Parties;
(b) ensure consistency, predictability and transparency in the application of

customs laws and regulations of the Parties;
(c) ensure efficient and expeditious release of goods;
(d) facilitate trade in goods between the Parties by the use of information
and communications technology, taking into account international standards; and
(e) promote cooperation between the Customs Authorities with relevant

international standards and recommended practices such as those made under the
auspices of the Customs Co-operation Council of the World Customs Organization.
44
1. This Chapter shall apply to customs procedures for goods traded between the
Parties.
2. This Chapter shall be implemented in accordance with the laws and regulations
of each Party and within the competence and available resources of their respective
Customs Authorities.
Article 5.4: Review and Appeal
1. Each Party shall ensure that with respect to its determinations on customs matters,
in accordance with the Party’s domestic laws and regulations, importers in its territory
have access to:
(a) administrative review independent of the official that issued the

determination; and
(b) judicial review of the determination or decision taken at the final level of
administrative review.
2. Notice of the decision on appeal shall be given to the appellant and the reasons
for such decision shall be provided in writing.
Article 5.5: Release of Goods/Customs Control
1. Each Party shall endeavor to apply customs procedures in a predictable,

consistent and transparent manner for the efficient release of goods in order to facilitate
trade between the Parties.
2. For prompt release of goods traded between the Parties, each Party shall to the
extent possible:
(a) provide for the release of goods within a period no longer than that
required to ensure compliance with its customs laws and regulations; and to the extent
possible, within forty eight (48) hours of all relevant customs imports;
(b) make use of information and communications technology;
(c) adopt or maintain procedures allowing, to the extent possible, goods to

be released at the point of arrival, without temporary transfer to warehouses or other
locations;
45
(d) harmonize its customs procedures, as far as possible, with relevant
international standards and best practices, such as those recommended by the World
Customs Organization; and
(e) adopt or maintain procedures allowing the release of goods prior to, and
without prejudice to, the final determination by its Customs Authority of the applicable
customs duties, taxes and fees, subject to domestic procedures.
Article 5.6: Risk Management
1. In order to facilitate release of goods traded between the Parties, and within
available resource and competence of each Party, the Customs Authority shall use risk
management methodology.
2. The Customs Authority of each Party shall exchange information, including best
practices on risk management techniques and other enforcement techniques.
3. Each Party shall endeavor to adopt or maintain risk management systems that
enable its Customs Authority to concentrate inspection activities on high risk goods and
that simplify the clearance and movement of low risk goods.
Article 5.7: Cooperation and Capacity Building
1. Each Party shall cooperate on capacity building for trade facilitation, such as
training, technical assistance, exchange of experts and any other forms of cooperation,
as may be mutually agreed upon by the Parties.
2. To the extent permitted by their domestic laws and regulations, the Customs
Authority of each party shall assist each other in relation to:
(a) achieving compliance with their laws and regulations pertaining to the
implementation and operation of the provisions of this Agreement; and such other
customs matters as the Parties may agree;
(b) the implementation and operation of the WTO Customs Valuation

Agreement;
(c) the enforcement of prohibitions and restrictions on exports to and

imports from their respective territories;
(d) joint efforts to combat customs fraud; and
(e) cooperation in any other areas as may be mutually agreed by the Parties.
46
Article 5.8: Mutual Assistance
1. The Customs Authority of each Party shall, to the extent possible, provide the
Customs Authority of the other Party, upon request or on its own initiative, with
information which helps to ensure proper application of customs laws and regulations,
and the prevention of violation or attempted violation of customs laws and regulations.
2. To the extent permitted by their customs laws and regulations, the Customs
Authorities may provide each other with mutual assistance in order to prevent or
investigate violations of customs laws and regulations.
3. The request pursuant to paragraph 1 shall, wherever appropriate, specify:
(a) the verification procedures that the requesting authority has undertaken
or attempted to undertake; and
(b) the specific information that the requesting authority requires, which may
include:
(i) subject and reason for the request;
(ii) a brief description of the matter and the action requested; and
(iii) the names and addresses of the parties concerned with the
proceedings, if known.
Article 5.9: Enforcement Against Illicit Trafficking
The Customs Authority of each Party shall, to the extent permitted by their laws
and regulations, wherever possible, cooperate and exchange information in their
enforcement against the trafficking of illicit drugs and other prohibited goods in their
respective territories.
Article 5.10: Information and Communications Technology
For the purpose of improving customs procedures, the Customs Authorities of

the Parties shall make cooperative efforts to promote the use of information and
communications technology in their customs procedures, including sharing best
practices.
47
Article 5.11: Confidentiality
1. Each Party’s Customs Authority undertakes not to use any information received
in accordance with this Chapter or Chapter 4 (Rules of Origin) other than for the
purpose for which the information was given, or to disclose any such information,
except in cases where:
(a) the Customs Authority that furnished the information has expressly
approved its use or disclosure for other purposes related to this Chapter or Chapter 4
(Rules of Origin); or
(b) the domestic laws and regulations of the receiving Customs Authority
require disclosure, in which case the receiving Customs Authority shall
notify the Customs Authority that furnished the information of the relevant laws and
regulations.
2. Any information received in accordance with this Chapter or Chapter 4 (Rules of

Origin) shall be treated as confidential and will be subject to the same protection and
confidentiality as the same kind of information under the domestic laws and regulations
of the Customs Authority where it is received.
3. Nothing in this Chapter or Chapter 4 (Rules of Origin) shall be construed to

require a Party to furnish or allow access to information the disclosure of which would:
(a) be contrary to the public interest as determined by its laws, rules or

regulations;
(b) be contrary to any of its laws, rules and regulations, including but not
limited to those protecting personal privacy or the financial affairs and accounts of
individuals; or
(c) impede law enforcement.
Article 5.12: Paperless Trading
1. The Customs Authority of each Party, in implementing initiatives which provide

for the use of paperless trading, shall take into account the methods agreed by the World
Customs Organization, including the adoption of the World Customs Organization data
model for the simplification and harmonization of data.
2. The Customs Authority of each Party shall work towards having electronic
means for all its customs reporting requirements, as soon as practicable.
48
3. The introduction and enhancement of information technology shall, to the
greatest extent possible, be carried out in consultation with all relevant parties including
businesses directly affected.
Article 5.13: Provision of Information
The Customs Authorities may provide each other with information on any
related regulations of general application governing customs matters that they propose
to adopt and shall publish any regulation of general applications governing customs
matters as soon as it comes into force.
Article 5.14: Publication and Enquiry Points
For the purposes of this Chapter, each Party shall:
(a) publish on the internet or in print form all statutory and regulatory
provisions and procedures applicable or enforced by its Customs Authority; and
(b) designate one or more enquiry points to address enquiries from the other
Party concerning customs matters, and shall make available on the internet, or in print
form, information concerning procedures for making such enquiries.
49
CHAPTER 6
SANITARY AND PHYTOSANITARY MEASURES
1. The definitions in Annex A of the SPS Agreement are incorporated into this
Chapter and shall form part of this Chapter, mutatis mutandis.
2. The relevant definitions developed by the international standard setting bodies

recognized by the SPS Agreement, the Codex Alimentarius Commission (Codex), the
World Organisation for Animal Health (OIE) and the International Plant Protection
Convention (IPPC) shall be referenced in the implementation of this Chapter.
The objectives of this Chapter are to:
(a) facilitate the implementation of the SPS Agreement and applicable

international standards, guidelines and recommendations developed by relevant
international standard setting bodies;
(b) facilitate bilateral trade in food, plants and animals, and products thereof,
while protecting human, animal or plant life or health in the territory of each Party;
(c) increase mutual understanding of each Party’s regulations and

procedures relating to the implementation of sanitary and phytosanitary measures;
(d) improve the communication and cooperation on sanitary and

phytosanitary issues; and
(e) provide the means to resolve sanitary and phytosanitary issues arising
from the implementation of this Agreement.
This Chapter applies to all sanitary and phytosanitary measures of a Party that
may, directly or indirectly, affect trade between the Parties.
50
Article 6.4: General Provisions
1. The Parties affirm their rights and obligations with respect to each other under
the SPS Agreement.
2. The Parties shall cooperate in relevant international standards setting bodies

recognized by the SPS Agreement.
Article 6.5: Consultations on Sanitary and Phytosanitary Measures
1. Upon the request of a Party for consultations on a matter arising under this
Chapter, the Parties shall agree to enter into consultation process through the contact
point established in Article 6.7.
2. Consultations will be carried out within 60 days after the receipt of the request,
unless mutually agreed by the Parties. Such consultations may be conducted via
teleconferencing, videoconferencing, or any other means mutually agreed by the Parties.
3. Through consultations and cooperation, both Parties shall make an effort to find
a mutually satisfactory solution. If the Parties fail to resolve sanitary and phytosanitary
issues arising from the implementation of this Agreement through the consultations
pursuant to this Article, such consultations will replace those provided for in Article
12.3 (Consultations).
Article 6.6: Committee on Sanitary and Phytosanitary Measures
1. The Parties hereby agree that the Committee on Sanitary and Phytosanitary
Measures hereafter referred as Committee, shall be established in a period not later than
one year after the date of entry into force of this Agreement through an exchange of
letters, with the objective of ensuring the implementation of this Chapter.
2. The Committee shall be comprised of representatives of each Party who have

responsibility for sanitary and phytosanitary measures.
3. The Committee shall seek to enhance cooperation between the Parties’ agencies
with responsibility for sanitary and phytosanitary measures.
4. The Committee shall provide a forum for:
51
(a) enhancing mutual understanding of each Party’s sanitary and
phytosanitary measures and the regulatory processes that relate to those measures;
(b) discussing and addressing matters related to the development, application

or implementation of sanitary and phytosanitary measures that affect, or may affect,
trade between the Parties;
(c) reviewing progress and try to find a solution for issues on sanitary and
phytosanitary measures affecting trade between both Parties;
(d) consulting on issues, relating to the meetings of the WTO SPS

Committee, Codex Alimentarius Commission (Codex), the World Organisation for
Animal Health (OIE) and the International Plant Protection Convention (IPPC);
(e) coordinating technical cooperation programs on sanitary and

phytosanitary measures; and
(f) improving bilateral understanding related to specific implementation

issues concerning the SPS Agreement.
5. The Committee shall meet annually unless the Parties otherwise agree.
6. The Committee shall establish its own rules of procedures during its first
meeting to guide its operations which may be revised or further developed.
7. Each Party shall ensure that appropriate representatives with responsibility for
the development, implementation, and enforcement of sanitary and phytosanitary
measures participate in meetings of the Committee. Each Party shall inform each other
of the agencies and ministries responsible for all sanitary and phytosanitary measures.
8. The Committee may agree to establish ad hoc technical working groups in

accordance with the Committee’s rules of procedures.
Article 6.7: Competent Authorities and Contact Points
1. The competent authorities responsible for the implementation of the measures

referred to in this Chapter are listed in Annex 6-A.
2. The contact points that have the responsibility relating to communication

between the Parties are set out in Annex 6-B.
52
3. The Parties shall inform each other of any significant changes in the structure,
organization and division of the competency of its competent authorities or contact
points.
53
ANNEX 6-A
COMPETENT AUTHORITIES
Chile:
1. SPS Issues Subdepartment, Market Access Department, General Directorate of

International Economic Affairs (DIRECON), Ministry of Foreign Affairs;
2. International Affairs Division, Agriculture and Livestock Service, Ministry of

Agriculture;
3. Agriculture Protection Division, Agriculture and Livestock Service, Ministry of

Agriculture;
4. Livestock Protection Division, Agriculture and Livestock Service, Ministry of

Agriculture;
5. Nutrition and Food Department, Ministry of Health;
6. Fisheries Health Department, National Fisheries Service, Ministry of Economy;

and
7. Aquaculture Unit, National Fisheries Service, Ministry of Economy.
Viet Nam:
1. Viet Nam SPS Office, International Cooperation Department, Ministry of

Agriculture and Rural Development;
2. Plant Protection Department (PPD), Ministry of Agriculture and Rural

Development;
3. Department of Animal Health (DAH), Ministry of Agriculture and Rural

Development;
4. National Agro-Forestry-Fisheries Quality Assurance Department (NAFIQAD),

Ministry of Agriculture and Rural Development; and
5. Viet Nam Food Administration (VFA), Ministry of Health.
54
ANNEX 6-B
CONTACT POINTS
Chile:
Sanitary and Phytosanitary Sub-department of the Market Access Department of
the General Directorate of International Economic Affairs (DIRECON) of the Ministry
of Foreign Affairs.
Viet Nam:
Viet Nam SPS Office, Ministry of Agriculture and Rural Development.
55
CHAPTER 7
TECHNICAL REGULATIONS, STANDARDS AND CONFORMITY
ASSESSMENT PROCEDURES
TBT Agreement means the WTO Agreement on Technical Barriers to Trade, contained
in Annex 1A of the WTO Agreement; and
technical regulation, standard and conformity assessment procedures shall have the
meanings assigned to those terms in Annex 1 of the TBT Agreement.
The objectives of this Chapter are to increase and facilitate trade through the
improvement of the implementation of the TBT Agreement, the elimination of
unnecessary technical barriers to trade and the enhancement of bilateral cooperation.
1. Except as provided in paragraphs 2 and 3, this Chapter applies to all standards,

technical regulations, and conformity assessment procedures, as defined in the TBT
Agreement that may, directly or indirectly, affect trade in goods between the Parties.
2. Technical specifications prepared by governmental bodies for production or

consumption requirements of such bodies are not subject to the provisions of this
Chapter.
3. This Chapter does not apply to sanitary and phytosanitary measures as defined in
Annex A, paragraph 1 of the SPS Agreement, which are covered in Chapter 6 (Sanitary
and Phytosanitary Measures).
4. Nothing in this Chapter shall limit the right of a Party to prepare, adopt and
apply technical regulations and standards, to the extent necessary, in accordance with its
rights and obligations under the TBT Agreement, necessary to fulfill a legitimate
objective taking into account the risks non-fulfillment would create.
56
Article 7.4: Reaffirmation of TBT Agreement
The Parties reaffirm their rights and obligations under the TBT Agreement.
Article 7.5: International Standards
1. Each Party shall use relevant international standards, to the extent provided in
Article 2.4 of the TBT Agreement, as a basis for its technical regulations.
2. In this respect, the Parties shall apply the principles set out in the “Decisions and
Recommendations adopted by the Committee since 1 January 1995, G/TBT/1/Rev.9, 8 th
September 2008”, Annex B Part 1(“Decision of the Committee on Principles for the
Development of International Standards, Guides and Recommendations with relation to
Articles 2, 5 and Annex 3 of the Agreement”), issued by the WTO Committee on
Technical Barriers to Trade.
Article 7.6: Trade Facilitation
The Parties should work cooperatively in the fields of standards, technical

regulations and conformity assessment procedures with a view to facilitating trade
between the Parties, in particular, to identify bilateral initiatives regarding standards,
technical regulations and conformity assessment procedures that are appropriate for
particular issues or sectors. Such initiatives may include:
(a) cooperation on regulatory issues, such as convergence or equivalence of

technical regulations and standards;
(b) alignment with international standards;
(c) reliance on a supplier’s declaration of conformity; and
(d) use of accreditation to qualify conformity assessment bodies, as well as

cooperation through recognition of conformity assessment procedures.
Article 7.7: Technical Regulations
1. Each Party shall give positive consideration to accepting as equivalent, technical

regulations of the other Party, even if these regulations differ from its own, provided it
is satisfied that these regulations adequately fulfill the objectives of its regulations.
2. Where a Party does not accept a technical regulation of the other Party as
equivalent to its own, it may, upon the request of the other Party, explain its reasons, as
far as possible.
57
Article 7.8: Conformity Assessment Procedures
1. The Parties recognize that a broad range of mechanisms exist to facilitate the
acceptance in a Party’s territory of the results of conformity assessment procedures
conducted in the other Party’s territory. For example:
(a) conformity assessment bodies located in each Party’s territory may enter
into voluntary arrangements to accept the results of each other’s conformity assessment
procedures;
(b) a Party may agree with the other Party to accept the results of conformity
assessment procedures conducted by bodies located in the other Party’s territory with
respect to specific technical regulations;
(c) a Party may adopt accreditation procedures for qualifying conformity

assessment bodies located in the territory of the other Party; and
(d) a Party may designate conformity assessment bodies located in the

territory of the other Party to carry out conformity assessment activities.
The Parties shall exchange information on these and other similar mechanisms
with a view to facilitating acceptance of conformity assessment results.
2. Where a Party does not accept the results of a conformity assessment procedure
conducted in the territory of the other Party, it may, upon request of that other Party,
explain the reasons for its decision, as far as possible.
3. Each Party shall accredit, approve or otherwise recognize conformity assessment

bodies in the territory of the other Party on terms no less favorable than those it accords
to conformity assessment bodies in its territory. Where a Party accredits, approves or
otherwise recognizes a body assessing conformity with a specific technical regulation or
standard in its territory and refuses to accredit, approve or otherwise recognize a body
assessing conformity with that technical regulation or standard in the territory of the
other Party, it shall, upon request of the other Party, explain the reasons for its decision.
4. Where a Party declines a request from the other Party to engage in negotiations
or conclude an agreement on facilitating recognition in its territory of the results of
conformity assessment procedures conducted by bodies in the other Party’s territory, it
shall, upon request of that other Party, explain the reasons for its decision.
58
Article 7.9: Technical Cooperation
With a view to fulfilling the objectives of this Chapter, a Party shall, upon the
request of the other Party and where possible, cooperate towards:
(a) exchanging legislation, regulations, rules and other information and

periodicals published by the national bodies responsible for technical regulations,
standards, conformity assessment procedures, including accreditation;
(b) exchanging general information and publications on conformity

assessment activities, including certification, designation and accreditation of
conformity assessment bodies;
(c) providing technical advice, information and assistance on mutually

agreed terms and conditions and exchanging experience, joint studies to enhance the
other Party’s system for standards, technical regulations and conformity assessment
procedures, and related activities;
(d) giving favorable consideration, upon request of the other Party, to any
sector specific proposal for further cooperation;
(e) promoting and encouraging bilateral cooperation between respective

organizations of the Parties responsible of activities covered by this Chapter;
(f) increasing their bilateral cooperation in the relevant regional and

international organizations and fora dealing with the issues covered by this Chapter; and
(g) informing the other Party, as far as possible, about the agreements or
programs subscribed at international level in relation to technical barriers to trade
issues.
Article 7.10: Transparency
1. The Parties acknowledge the importance of transparency in decision-making,

including providing a meaningful opportunity for persons to provide comments on
proposed technical regulations and conformity assessment procedures. Where a Party
publishes a notice or notification under Article 2.9 or 5.6 of the TBT Agreement, it:
(a) may include in the notice the objectives and rationale of the proposed
technical regulation or conformity assessment procedure; drafting bodies and
development period thereof; and
59
(b) shall transmit the notification with the proposal electronically to the other
Party through the enquiry point the Party has established under Article 10 of the TBT
Agreement, at the same time as it notifies WTO Members of the proposal. Each Party
should allow at least sixty (60) days for the other Party to make comments in writing on
the proposals.
2. When a Party submits a notification under Article 2.10 or 5.7 of the TBT
Agreement, it shall at the same time, transmit the notification to the other Party
electronically through the enquiry point referenced in paragraph 1(b).
3. Where possible, the Parties are encouraged to publish, or otherwise make

available to the public, in print or electronically, its responses to significant comments it
receives under paragraph 1(b) no later than the date it publishes the final technical
regulation or conformity assessment procedure.
4. Upon request of the other Party, a Party shall provide the other Party with
information regarding the objective of, and rationale for, a standard, technical regulation
or conformity assessment procedure that the Party has adopted or is proposing to adopt.
Article 7.11: Enquiry Points
1. Each Party shall designate an enquiry point which shall have the responsibility
to coordinate the implementation of this Chapter; and provide the other Party with the
name of its designated enquiry point and the contact details of relevant officials in that
organization, including information on telephone, facsimile, e-mail and other relevant
details.
2. Each Party shall notify the other Party promptly of any change of its enquiry
point or any amendments to the information of the relevant officials.
Article 7.12: Information Exchange
Any information or explanation that is provided upon request of a Party pursuant

to the provisions of this Chapter shall be provided in print or electronically within a
reasonable period of time.
Article 7.13: Committee on Technical Barriers to Trade
1. In order to facilitate the implementation of this Chapter and the cooperation

between the Parties, the Parties hereby establish a Committee on Technical Barriers to
Trade (hereinafter referred to as “the Committee”), comprising representatives of each
Party.
60
2. For the purposes of this Article, the Committee shall be coordinated by:
(a) in the case of Chile, the General Directorate of International Economic

Affairs, Ministry of Foreign Affairs, or its successor; and
(b) in the case of Viet Nam, the Directorate for Standards, Metrology and
Quality, Ministry of Science and Technology.
(a) monitoring the implementation and administration of this Chapter;
(b) coordinating cooperation pursuant to Article 7.9;
(c) exchanging views on any issue, as far as possible, that a Party raises
related to the development, adoption, application, or enforcement of standards, technical
regulations or conformity assessment procedures;
(d) enhancing cooperation in the development and improvement of

standards, technical regulations and conformity assessment procedures;
(e) facilitating technical consultations;
(f) where appropriate, identifying mutually agreed priority sectors for

enhanced cooperation to facilitate trade;
(g) facilitating sectoral cooperation among governmental and non-governmental

conformity assessment bodies in the Parties’ territories;
(h) exchanging information, as far as possible, on developments in non-

governmental, regional, and multilateral fora, engaged in activities related to
standardisation, technical regulations and conformity assessment procedures;
(i) taking any other steps the Parties consider will assist them in implementing
the TBT Agreement and in facilitating trade in goods between them on the basis of the
Parties’ conditions and capacity;
(j) upon a Party’s request, discussing any matters arising under this Chapter;
(k) reviewing this Chapter in light of any developments under the TBT
Agreement and reporting to the Commission on the implementation of this Chapter,
where appropriate; and
61
(l) carrying out other functions as may be delegated by the Commission.
4. The Committee shall meet at least once a year, unless otherwise agreed by the
Parties. Meetings may be held by any means as agreed by the Parties. By agreement of
the Parties, ad hoc working groups may be established, if necessary.
62
CHAPTER 8
TRADE DEFENSE
Section A
Global safeguards, Antidumping and Countervailing Measures
Article 8.1: Global safeguards
1. Each Party retains its rights and obligations under Article XIX of GATT 1994
and the WTO Safeguards Agreement, as it may be amended.
2. This Agreement does not confer any additional rights or obligations on the
Parties with regard to actions taken pursuant to Article XIX of GATT 1994 and the
WTO Safeguards Agreement, as it may be amended.
Article 8.2: Antidumping and Countervailing Measures
1. The rights and obligations of the Parties related to antidumping and

countervailing measures shall be governed by Article VI of GATT 1994, the WTO
Agreement on Implementation of Article VI of the GATT 1994 and the WTO
Agreement on Subsidies and Countervailing Measures, as it may be amended.
2. This Agreement does not confer any additional rights or obligations on the
Parties with regard to the application of antidumping and countervailing measures,
referred to in paragraph 1.
Section B
For purposes of this Section:
competent authority means:
(a) in the case of Chile, the National Commission in Charge of the

Investigation of the Existence of Price Distortions in Imported Products (Comisión
Nacional Encargada de Investigar la Existencia de Distorsiones en el Precio de las
Mercaderías Importadas), or its successor; and
(b) in the case of Viet Nam, the Ministry of Industry and Trade, or its
successor;
63
domestic industry means, with respect to an imported good, the producers as a
whole of the like or directly competitive good or those producers whose collective
production of the like or directly competitive good constitutes a major proportion of the
total domestic production of such good;
serious injury means a significant overall impairment in the position of a

domestic industry;
substantial cause means a cause which is important and not less than any other
cause;
threat of serious injury means serious injury that, on the basis of facts and not
merely on allegation, conjecture, or remote possibility, is clearly imminent; and
transition period means the five-year period beginning on the date of entry into
force of this Agreement, except where the tariff elimination for the good against which
the action is taken occurs over a longer period of time, in which case the transition
period shall be the period of the staged tariff elimination for that good.
Article 8.4: Imposition of a Bilateral Safeguard Measure
1. A Party may impose a bilateral safeguard measure described in paragraph 2,

during the transition period only, if as a result of the reduction or elimination of a duty
pursuant to this Agreement, a good originating in the territory of the other Party is being
imported into the Party’s territory in such increased quantities, in absolute terms or
relative to domestic production, and under such conditions as to constitute a substantial
cause of serious injury, or threat thereof, to a domestic industry producing a like or
directly competitive good.
2. If the conditions in paragraph 1 are met, and to the extent as may be necessary,
to prevent or remedy serious injury, or threat thereof, and facilitate adjustment, a Party
may:
(a) suspend the further reduction of any rate of duty provided for under this
Agreement on the good; or
(b) increase the rate of duty on the good to a level not to exceed the lesser of:
(i) the most-favoured-nation (MFN) applied rate of duty in effect at the

time the action is taken; or
64
(ii) the MFN applied rate of duty in effect on the day immediately
preceding the date of entry into force of this Agreement.
Article 8.5: Standards for a Bilateral Safeguard Measure
1. A Party may apply a bilateral safeguard measure, including any extension

thereof, for no longer than three years including a one-year extension. Regardless of its
duration, such measure shall terminate at the end of the transition period.
2. In order to facilitate adjustment in a situation where the expected duration of a

bilateral safeguard measure is over one year, the Party applying the measure shall
progressively liberalize it at regular intervals during the period of application.
3. Neither Party may impose a bilateral safeguard measure more than once on the
same good.
4. Neither Party may impose a bilateral safeguard measure on a good that is subject
to a measure that the Party has imposed pursuant to Article XIX of GATT 1994 and the
WTO Safeguards Agreement, and neither Party may continue maintaining a bilateral
safeguard measure on a good that becomes subject to a measure that the Party imposes
pursuant to Article XIX of GATT 1994 and the WTO Safeguards Agreement.
5. Upon the termination of a bilateral safeguard measure, the rate of the customs
duty shall be the rate which would have been in effect if the bilateral safeguard measure
had not been applied.
Article 8.6: Investigation Procedures and Transparency Requirements
1. A Party shall impose a bilateral safeguard measure only following an

investigation by the Party’s competent authorities in accordance with Articles 3 and
4.2(c) of the WTO Safeguards Agreement; and to this end, Articles 3 and 4.2(c) of the
WTO Safeguards Agreement are incorporated into and made a part of this Agreement,
mutatis mutandis.
2. In the investigation described in paragraph 1, a Party shall comply with the

requirements of Article 4.2(a) of the WTO Safeguards Agreement; and to this end,
Article 4.2(a) of the WTO Safeguards Agreement is incorporated into and made a part
of this Agreement, mutatis mutandis.
Article 8.7: Provisional Safeguard Measures
In critical circumstances where delay would cause damage which it would be

difficult to repair, a Party may take a provisional safeguard measure pursuant to a
65
preliminary determination that there is clear evidence that increased imports have
caused or are threatening to cause serious injury. The duration of the provisional
safeguard measure shall not exceed two hundred days. Such a measure should take the
form of tariff increase to be promptly refunded if the subsequent investigation does not
determine that increased imports have caused or threatened to cause serious injury to a
domestic industry. The duration of any such provisional safeguard measure shall be
counted as a part of the initial period and any extension of a definitive safeguard
measure.
Article 8.8: Notification and Consultation
1. A Party shall promptly notify the other Party, in writing, on:
(a) initiating an investigation under Article 8.6;
(b) taking a decision to impose or extend a bilateral safeguard measure; and
(c) taking a decision to modify a bilateral safeguard measure previously

undertaken.
2. A Party shall provide to the other Party a copy of the public version of the report
of its competent authorities required under Article 8.6(1).
3. Before applying any bilateral safeguard measure a Party should provide the
other Party the opportunity for consultation on issues related to the investigation and
application of bilateral safeguard measures. Provisional safeguard measures cannot be
applied before two months after the initiation of the investigation.
Article 8.9: Compensation
1. The Party taking a bilateral safeguard measure shall, in consultation with the
other Party, provide to the other Party mutually agreed trade liberalizing compensation
in the form of concessions having substantially equivalent trade effects or equivalent to
the value of the additional duties expected to result from the measure. Such
consultations shall begin within thirty days of the imposition of the measure. When the
Parties reach agreement on such compensation the Party taking the measure shall apply
the compensation immediately.
2. If the Parties are unable to reach agreement on compensation as provided in

paragraph 1, within 30 days after the consultations commence, the exporting Party shall
be free to suspend the application of substantially equivalent concessions to the trade of
the Party applying the bilateral safeguard measure. That Party may suspend the
concessions only for the minimum period necessary to achieve the substantially
66
equivalent effects and only while the bilateral safeguard measure is maintained. The
right of suspension referred to in this paragraph shall not be exercised for the first year
that a bilateral safeguard measure is in effect, provided that the bilateral safeguard
measure has been taken as a result of an absolute increase in imports and that such a
measure conforms to the provisions of this Chapter.
3. A Party shall notify the other Party in writing at least thirty days before
suspending concessions under paragraph 2.
4. The obligation to provide compensation under paragraph 1 and the right to

suspend substantially equivalent concessions under paragraph 2 shall terminate on the
date of the termination of the bilateral safeguard measure.
67
CHAPTER 9
COOPERATION
1. The Parties agree to establish a framework for collaborative activities between

them as a means to expand and enhance the benefits of this Agreement for building an
economic partnership between them.
2. The Parties will establish close cooperation aimed, inter alia, at:
(a) strengthening and building on existing cooperative relationships between

the Parties;
(b) creating new opportunities for trade and investment, promoting

competitiveness and innovation including the involvement of government and business
sectors and the academia;
(c) supporting the important role of the business sector and the academia in
promoting and encouraging mutual economic growth and development;
(d) encouraging the presence of the Parties and their goods and services in
the respective markets of Asia Pacific and Latin America;
(e) reinforcing and expanding cooperation, collaboration and mutual

exchange in the cultural and educational areas; and
(f) increasing the level of and deepening cooperation activities between the
Parties in areas of mutual interest.
Article 9.2: Scope
1. The Parties affirm the importance of all forms of cooperation, including, but not
limited to, the areas enlisted in Article 9.3.
2. Areas of cooperation will be developed and agreed upon by the Parties in formal
documents.
3. Cooperation between the Parties should contribute to achieving the objectives of

this Agreement through the identification and development of innovative cooperation
programs capable of providing added value to their relationships.
68
4. Cooperative activities will be agreed upon between the Parties and may include,
but not limited to, those enlisted in Article 9.4.
5. Cooperation between the Parties under this Chapter will complement the
cooperation and cooperative activities between the Parties set out in other Chapters of
this Agreement.
Article 9.3: Fields of cooperation
Fields of cooperation and capacity building under this Chapter shall include,
inter alia:
(a) economic development;
(b) innovation, research and development;
(c) agriculture, food industry and forestry;
(d) mining and industry;
(e) energy;
(f) small and medium-sized enterprises;
(g) tourism;
(h) education and human capital development;
(i) culture;
(j) gender issues;
(k) climate change;
(l) health care, and
(m) development aspects.
Article 9.4: Activities of Cooperation
In pursuit of the objectives set out in Article 9.1, the Parties will encourage and
facilitate, as appropriate, the following activities, including, but not limited to:
69
(a) building upon existing agreements or arrangements for cooperation;
(b) facilitating the exchange of experts, information, documentation,

experiences;
(c) promoting cooperation in regional and multilateral fora;
(d) guiding cooperative activities;
(e) providing technical assistance; and
(f) organizing dialogues, conferences, seminars and training programs.
Article 9.5: Committee on Cooperation
1. The Parties hereby establish a Committee on Cooperation (hereinafter referred to

as “the Committee”), comprising of representatives of each Party.
2. For purposes of this Article, the Committee shall be coordinated by:
(a) in the case of Chile, the Ministry of Foreign Affairs through the General
Directorate for International Economic Affairs, or its successor; and
(b) in the case of Viet Nam, the Americas Market Department designated by
the Ministry of Industry and Trade, or its successor.
3. In order to facilitate the communication and ensure the proper functioning of the
Committee, the Parties will designate a contact point no later than six (6) months
following the date of entry into force of this Agreement.
4. The Committee shall meet when necessary, as agreed by the Parties. At the first
meeting, the Committee shall agree on its terms of reference.
(a) to specify the fields of cooperation and the cooperative activities;
(b) to oversee the implementation of the collaboration agreed by the Parties;
(c) to encourage the Parties to undertake cooperation activities under this

Chapter;
70
(d) to define any other activity of cooperation deemed necessary by the
Parties; and
(e) to maintain updated information, as appropriate regarding any

cooperation agreements or arrangements between the Parties.
6. The Committee may agree to establish ad hoc working groups.
7. The Committee may interact, where appropriate, with relevant agencies to

address specific matters.
8. The Committee shall report periodically to the Commission the results of its
meetings. The Commission may recommend actions regarding cooperation activities
under this Chapter, in accordance with the strategic priorities of the Parties.
Article 9.6: Cooperation with Non- Parties
The Parties recognize the value of international cooperation for the promotion of
sustainable development and agree to develop, where appropriate, projects of mutual
interest with non-Parties with the consent of the Parties.
Article 9.7: Non-Application of Dispute Settlement
The dispute settlement mechanism provided for in Chapter 12 (Dispute

Settlement) shall not apply to this Chapter.
Article 9.8: Resources
The Parties shall provide, within the limits of their own capacities and through
their own channels, adequate resources for the fulfillment of the objectives of this
Chapter.
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CHAPTER 10
TRANSPARENCY
For the purposes of this Chapter, administrative ruling of general application

means an administrative ruling or interpretation that applies to all persons and fact
situations that fall generally within its ambit and that establishes a norm of conduct but
does not include:
(a) a determination or ruling made in an administrative procedure that

applies to a particular person, good or service of the other Party in a specific case; or
(b) a ruling that adjudicates with respect to a particular act or practice.
Article 10.2: Contact Points
1. The contact points referred to in Annex 10-A shall facilitate communications

between the Parties on any matter covered by this Agreement.
2. Upon request of the other Party, the contact points shall identify the office or
official responsible for the matter and assist, as necessary, in facilitating communication
with the requesting Party.
Article 10.3: Publication
1. Each Party shall ensure, in accordance with its domestic legislation, that its laws,
regulations, procedures and administrative rulings of general application, with respect to
any matter covered by this Agreement, are promptly published or otherwise made
publicly available, including wherever possible in electronic form.
2. When introducing or changing its laws or regulations that significantly affect the
implementation and operation of this Agreement, each Party should, to the extent
possible, in accordance with its laws and regulations, endeavor to provide, except in
emergency situations, a reasonable period between the time when such laws or
regulations, as introduced or changed, are published or made publicly available, and the
time when they enter into force.
3. To the extent possible, in accordance with its domestic laws, each Party shall:
(a) publish in advance any such measure referred to in paragraph 1 that it

proposes to adopt; and
72
(b) provide interested persons and the other Party for a reasonable
opportunity to comment on such proposed measures.
Article 10.4: Notification and Provision of Information
1. To the maximum extent possible, each Party shall notify the other Party of any
proposed or actual measure that the Party considers might materially affect the
operation of this Agreement or otherwise substantially affect the other Party’s interests
2. Upon request of the other Party, a Party shall promptly provide information and
respond to questions pertaining to any actual or proposed measure that the requesting
Party considers might materially affect the operation of this Agreement or otherwise
substantially affect its interests under this Agreement, regardless of whether the
requesting Party has been previously notified of that measure.
3. Any notification, request or information under this Article shall be provided to

the other Party through the relevant contact points.
4. Any notification or information provided under this Article shall be without

prejudice as to whether the measure is consistent with this Agreement.
Article 10.5: Administrative Procedures
With a view to administering in a consistent, impartial and reasonable manner its

measures referred to in Article 10.3, each Party shall ensure that in its administrative
procedures in which these measures are applied to particular persons, goods or services
of the other Party in specific cases, that it:
(a) provides wherever possible, persons of the other Party that are directly
affected by a proceeding, reasonable notice, in accordance with its domestic procedures,
when a proceeding is initiated, including a description of the nature of the proceeding, a
statement of the legal authority under which the proceeding is initiated, and a general
description of any issues in question;
(b) affords such persons a reasonable opportunity to present facts and

arguments in support of their positions prior to any final administrative action, when
time, the nature of the proceeding and the public interest permit; and
(c) follows its procedures in accordance with its domestic law.
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Article 10.6: Review and Appeal
1. Each Party shall establish or maintain, in accordance with its laws and
regulations, judicial or administrative tribunals or procedures for the purpose of prompt
review and, where warranted, correction of final administrative actions regarding
matters covered by this Agreement. Such tribunals shall be impartial, and independent
of the office or authority entrusted with administrative enforcement.
2. Each Party shall ensure that, in any such tribunals or procedures, the parties to
the proceeding are provided with the right to:
(a) a reasonable opportunity to support or defend their respective positions;

and
(b) a decision based on the evidence and submissions of record or, where
required by domestic law, the record compiled by the administrative authority.
3. Each Party shall ensure, subject to appeal or further review as provided in its
domestic law, that such decisions shall be implemented by, and shall govern the practice
of the office or authority with respect to the administrative action that is the subject of
the decision.
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ANNEX 10
CONTACT POINTS
For purposes of Article 10.2(1), the contact points shall be:
(a) in the case of Chile, the Asia Pacific Department of the General
Directorate of International Economic Affairs, Ministry of Foreign Affairs, or its
successor;
(b) in the case of Viet Nam, Ministry of Industry and Trade, or its successor.
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CHAPTER 11
ADMINISTRATION
Article 11.1: Free Trade Commission
1. The Parties hereby establish the Free Trade Commission.
2. The Commission shall be composed of relevant government officials of each

Party and shall be co-chaired by senior officials of the Parties.
3. The Commission shall:
(a) review and monitor the implementation and operation of this Agreement;
(b) consider and, as appropriate, decide on specific matters relating to the

implementation and operation of this Agreement, including matters reported by relevant
Committees or working groups established under this Agreement;
(c) supervise and coordinate the work of the Committees and the working
groups established under this Agreement;
(d) seek to resolve disputes that may arise regarding the interpretation,
implementation or application of this Agreement;
(e) adopt the Rules of Procedures pursuant to Article 12.14; and
(f) carry out any other function as the Parties may agree.
4. The Commission may:
(a) establish and delegate responsibilities to any Committee or working

group;
(b) consider and adopt any modifications of: 5
(i) the Schedules attached to Annex 3-B (Reduction and/or Elimination

of Customs Duties), by accelerating tariff elimination, and
5
The acceptance of any modification by a Party is subject to the completion of any necessary domestic
legal procedures of that Party. Chile shall implement the actions of the Commission through Acuerdos de
Ejecución, in accordance with article 50, numeral 1, second paragraph, of the Constitución Política de la
República de Chile.
76
(ii) the rules of origin established in Annex 4-B (Product Specific
Rules); and
(c) issue interpretations of the Agreement.
Article 11.2: Procedures of the Commission
1. The Commission shall convene annually in regular sessions, unless the Parties
otherwise agree.
2. The Commission shall meet alternately in the territory of each Party, unless the
Parties otherwise agree.
3. The Commission shall also meet in special sessions within thirty (30) days of the
request of a Party, with such session to be held in the territory of the other Party or at
such location as may be agreed by the Parties.
4. Meetings of the Commission may be held in person or, if agreed by the Parties,
by any technological means available to them.
5. All decisions of the Commission shall be taken by mutual agreement.
6. The Commission shall establish its rules and procedures at its first meeting.
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CHAPTER 12
DISPUTE SETTLEMENT
Article 12.1: Scope of Application
Except as otherwise provided in this Agreement, this Chapter shall apply with
respect to the avoidance or settlement of disputes between the Parties regarding the
implementation, interpretation or application of this Agreement wherever a Party
considers that:
(a) a measure of the other Party is inconsistent with the obligations of this
Agreement; or
(b) the other Party has failed to carry out its obligations under this
Agreement.
Article 12.2: Choice of Forum
1. Where a dispute regarding any matter arises under this Agreement and under
another trade agreement to which both Parties are party or the WTO Agreement, the
complaining Party may select the dispute settlement procedure to resolve the dispute.
2. Once the complaining Party has requested an arbitral tribunal under an

agreement referred to in paragraph 1, the dispute settlement procedure selected shall be
used to the exclusion of the others.
Article 12.3: Consultations
1. Either Party may request in writing consultations to the other Party concerning
any matter on the implementation, interpretation or application of this Agreement.
2. The request for consultations shall set out the reasons for the request, including
identification of the specific measures at issue and an indication of the legal basis for
the complaint, and providing sufficient information to enable an examination of the
matter.
3. When a Party requests for consultations pursuant to paragraph 1, the other Party
shall reply to the request and enter into consultations in good faith within thirty (30)
days after the date of receipt of the request, with a view to reaching a prompt and
mutually satisfactory resolution of the matter. In case of consultations regarding
perishable goods, the other Party shall enter into consultations within fifteen (15) days
after the date of receipt of the request.
78
4. The Parties shall make every effort to arrive to a mutually satisfactory resolution
of the matter through consultations under this Article.
5. In consultations under this Article, a Party may request the other Party to make
available personnel of its government agencies or other regulatory bodies who have
expertise in the matter subject to consultations.
6. The consultations under this Article shall be confidential and without prejudice
to the rights of either Party in any further proceedings.
Article 12.4: Referral of Matters to the Commission
1. If the consultations fail to resolve the dispute within forty (40) days after the
date of receipt of the request for consultations under Article 12.3(2), or twenty (20) days
after the date of receipt of the request for consultations under Article 12.3(2) in cases of
urgency, including those which concern perishable goods, the complaining Party may
refer the matter to the Commission by delivering written notification to the other Party.
The Commission shall endeavour to resolve the matter.
2. The Commission may:
(a) call on such technical advisers or create such working groups or expert
groups as it deems necessary;
(b) have recourse to good offices, conciliation, mediation or such other

dispute resolution procedures, which proceedings and in particular the positions taken
by the disputing Parties during them, shall be confidential and without prejudice to the
rights of any Party in any further proceedings under these procedures; or
(c) make recommendations;
as may assist the Parties to reach a mutually satisfactory resolution of the

dispute.
Article 12.5: Establishment of Arbitral Tribunals
1. The complaining Party that made a request for consultations under Article 12.3
may request in writing the establishment of an arbitral tribunal if the Parties fail to
resolve the matter within:
(a) forty five (45) days after the date of the receipt of the request for
consultations under Article 12.3(2) if there is no referral to the Commission under
Article 12.4;
79
(b) thirty (30) days after the Commission convened pursuant to Article 12.4,
or fifteen (15) days in cases of urgency including those which concern perishable goods;
or
(c) sixty (60) days after a Party has received the request for consultations
under Article 12.3, or thirty (30) days in cases of urgency including those which
concern perishable goods, if the Commission has not convened after a referral under
Article 12.4.
2. Any request to establish an arbitral tribunal pursuant to this Article shall

identify:
(a) the specific measure at issue;
(b) the legal basis of the complaint, including any provision of this
Agreement alleged to have been breached; and
(c) the factual basis for the complaint.
3. The arbitral tribunal shall be established and perform its functions in a manner
consistent with the provisions of this Chapter.
4. The date of the establishment of an arbitral tribunal shall be the date on which
the chair is appointed.
Article 12.6: Terms of Reference of Arbitral Tribunals
Unless the Parties otherwise agree within twenty (20) days after the date of
receipt of the request for the establishment of the arbitral tribunal, the terms of reference
of the arbitral tribunal shall be:
“To examine, in the light of the relevant provisions of this Agreement, the
matter referred to in the request for the establishment of an arbitral tribunal pursuant to
Article 12.5, to make findings of law and fact and determinations on whether the
measure is not in conformity with the Agreement together with the reasons therefore
and to issue a written report for the resolution of the dispute. If the Parties agree, the
arbitral tribunal may make recommendations for resolution of the dispute.”
Article 12.7: Composition of Arbitral Tribunals
1. An arbitral tribunal shall comprise three (3) arbitrators.
80
2. Each Party shall, within thirty (30) days after the date of receipt of the request
for the establishment of an arbitral tribunal, appoint one arbitrator, who may be its
national and propose up to three (3) candidates to serve as the third arbitrator, who shall
be the chair of the arbitral tribunal. The third arbitrator shall not be a national of either
Party, nor have his or her usual place of residence in either Party, nor be employed by
either Party, nor have dealt with the dispute in any capacity.
3. The Parties shall agree on and appoint the third arbitrator within forty five (45)
days after the date of receipt of the request for the establishment of an arbitral tribunal,
taking into account the candidates proposed pursuant to paragraph 2.
4. If any arbitrator has not been designated or appointed within forty five (45) days
after the date of receipt of the request for establishment of an arbitral tribunal, upon the
request of any Party, the necessary designations shall be made by the Director General
of the WTO within a further fifteen (15) days.
5. If the Director General of the WTO has not made the necessary designations
pursuant to paragraph 4, the arbitrator or arbitrators not yet appointed shall be chosen
within seven (7) days by lot from the candidates proposed pursuant to paragraph 2.
6. All arbitrators shall:
(a) have expertise or experience in law, international trade or other matters

covered by this Agreement;
(b) be chosen strictly on the basis of objectivity, reliability and sound

judgment;
(c) be independent of, and not be affiliated with or receive instructions from,
the government of either Party; and
(d) comply with a code of conduct, to be provided in the Rules of Procedure

referred to in Article 12.14.
7. If an arbitrator appointed under this Article dies, becomes unable to act or

resigns, a successor shall be appointed within fifteen (15) days in accordance with the
appointment procedure provided for in paragraphs 2, 3 and 4, which shall be applied,
respectively, mutatis mutandis. The successor shall have all the powers and duties of
the original arbitrator. The work of the arbitral tribunal shall be suspended for a period
beginning on the date the original arbitrator dies, becomes unable to act or resigns. The
work of the arbitral tribunal shall resume on the date the successor is appointed.
81
Article 12.8: Proceedings of Arbitral Tribunals
1. The arbitral tribunal shall meet in closed session except when meeting with the
Parties. The Parties to the dispute shall be present at the meetings only when invited by
the arbitral tribunal to appear before it.
2. The Parties shall be given the opportunity to provide at least one (1) written
submission and to attend any of the presentations, statements or rebuttals in the
proceedings. All information or written submissions submitted by a Party to the arbitral
tribunal, including any comments on the draft report and responses to questions raised
by the arbitral tribunal, shall be made available to the other Party.
3. The arbitral tribunal should consult with the Parties as appropriate and provide
adequate opportunities for the development of a mutually satisfactory resolution.
4. The arbitral tribunal shall aim to make its decisions, including its report, by
consensus but may also make its decisions, including its report, by majority vote.
5. After notifying the Parties, and subject to such terms and conditions as the
Parties may agree if any within ten (10) days, the arbitral tribunal may seek information
from any relevant source and may consult experts to obtain their opinion or advice on
certain aspects of the matter. The arbitral tribunal shall provide the Parties with a copy
of any advice or opinion obtained and an opportunity to provide comments.
6. The deliberations of the arbitral tribunal and the documents submitted to it shall
be kept confidential.
7. Notwithstanding paragraph 6, either Party may make public statements as to its

views regarding the dispute, but shall treat as confidential, information and written
submissions submitted by the other Party to the arbitral tribunal which that other Party
has designated as confidential. Where a Party has provided information or written
submissions designated to be confidential, that Party shall, within thirty (30) days of a
request of the other Party, provide a non-confidential summary of the information or
written submissions which may be disclosed publicly.
8. Each Party shall bear the cost of its appointed arbitrator and its own expenses.
The cost of the chair of an arbitral tribunal and other expenses associated with the
conduct of the proceedings shall be borne by the Parties in equal shares.
Article 12.9: Suspension or Termination of Proceedings
1. The Parties may agree that the arbitral tribunal suspends its work at any time for
a period not exceeding twelve (12) months from the date of such agreement. In the
event of such a suspension, the time-frames set out in Article 12.11(2) (5) and (7) and
82
Article 12.14(7) shall be extended by the amount of time that the work was suspended.
If the work of the arbitral tribunal has been suspended for more than twelve (12)
months, the authority for establishment of the arbitral tribunal shall lapse, unless the
Parties agree otherwise.
2. The Parties may agree to terminate the proceedings of the arbitral tribunal by
jointly notifying the chair of the arbitral tribunal at any time before the issuance of the
report to the Parties.
Article 12.10: Report
1. The report of the arbitral tribunal shall be drafted without the presence of the
Parties. The arbitral tribunal shall base its report on the relevant provisions of this
Agreement and the submissions and arguments of the Parties, and may take into account
any other relevant information provided to the arbitral tribunal.
2. The arbitral tribunal shall, within one hundred and eighty (180) days or within
sixty (60) days in cases of urgency, including those which concern perishable goods,
after the date of its establishment, submit to the Parties its draft report.
3. The draft report shall contain both the descriptive part summarizing the
submissions and arguments of the Parties and the findings and determinations of the
arbitral tribunal. If the Parties agree, the arbitral tribunal may make recommendations
for resolution of the dispute in its report. The findings and determinations of the arbitral
tribunal and, if applicable, any recommendations cannot add to or diminish the rights
and obligations of the Parties provided in this Agreement.
4. When the arbitral tribunal considers that it cannot submit its draft report within
the aforementioned one hundred and eighty (180) or sixty (60) day period referred to in
paragraph 2, it shall inform the Parties in writing of the reasons for the delay together
with an estimate of the period within which it will submit its report. Any delay shall not
exceed a further period of thirty (30) days, unless the Parties otherwise agree.
5. A Party may provide written comments to the arbitral tribunal on its draft report
within fifteen (15) days after the date of submission of the draft report.
6. After considering any written comments on the draft report, the arbitral tribunal
may reconsider its draft report and make any further examination it considers
appropriate.
7. The arbitral tribunal shall issue its report, within thirty (30) days after the date of
submission of the draft report. The report shall include any separate opinions on matters
not unanimously agreed and shall not disclose which arbitrators are associated with
majority or minority opinions.
83
8. The report of the arbitral tribunal shall be available to the public within fifteen
(15) days after the date of issuance, subject to the requirement to protect confidential
information.
9. The report of the arbitral tribunal shall be final and binding on the Parties.
Article 12.11: Information and Technical Advice
1. Upon request of a Party or on its own initiative, unless the Parties disapprove,
the arbitral tribunal may seek information and technical advice from any person or body
that it deems appropriate. Any information and technical advice so obtained shall be
made available to the Parties.
2. With respect to factual issues concerning other technical matter raised by a

Party, the arbitral tribunal may request advisory reports in writing from an expert or
experts. The arbitral tribunal, upon the request of a Party or on its own initiative, after a
consultation with the Parties, may select scientific or technical experts who shall assist
the arbitral tribunal throughout its proceedings but shall not have the right to vote in
respect of any decision to be made by the arbitral tribunal.
Article 12.12: Implementation of the Report
1. Unless the Parties otherwise agree, the Party complained against shall
immediately eliminate the non-conformity as determined in the report of the arbitral
tribunal, or if this is not practicable, within a reasonable period of time.
2. The Parties shall continue to consult at all times on the possible development of
a mutually satisfactory resolution.
3. The reasonable period of time referred to in paragraph 1 shall be mutually

determined by the Parties. Where the Parties fail to agree on the reasonable period of
time within forty five (45) days after the date of issuance of the report of the arbitral
tribunal referred to in Article 12.10, either Party may refer the matter to an arbitral
tribunal as provided for in Article 12.13(7), which shall determine the reasonable period
of time.
4. Where there is disagreement between the Parties as to whether the Party

complained against eliminated the non-conformity as determined in the report of the
arbitral tribunal within the reasonable period of time as determined pursuant to
paragraph 3, either Party may refer the matter to an arbitral tribunal as provided for in
Article 12.13(7).
84
Article 12.13: Non-Implementation - Compensation and Suspension of Concessions
or other Obligations
1. If the Party complained against notifies the complaining Party that it is

impracticable, or the arbitral tribunal to which the matter is referred pursuant to Article
12.12(4) confirms that the Party complained against has failed to eliminate the non-
conformity as determined in the report of the arbitral tribunal within the reasonable
period of time as determined pursuant to Article 12.12(3), the Party complained against
shall, if so requested, enter into negotiations with the complaining Party with a view to
reaching a mutually satisfactory compensation.
2. If there is no agreement on a mutually satisfactory compensation within twenty

(20) days after the date of receipt of the request mentioned in paragraph 1, the
complaining Party may suspend the application to the Party complained against of
concessions or other obligations under this Agreement, after giving notification of such
suspension with thirty (30) days in advance. Such notification may only be given
twenty (20) days after the date of receipt of the request mentioned in paragraph 1.
3. The compensation referred to in paragraph 1 and the suspension referred to in

paragraph 2 shall be temporary measures. Neither compensation nor suspension is
preferred to full elimination of the non-conformity as determined in the report of the
arbitral tribunal. The suspension shall only be applied until such time as the non-
conformity is fully eliminated, or a mutually satisfactory resolution is reached.
4. In considering what concessions or other obligations to suspend pursuant to

paragraph 2:
(a) the complaining Party should first seek to suspend concessions or other
obligations with respect to the same sector(s) as that in which the report of the arbitral
tribunal referred to in Article 12.10(7) has found a failure to comply with the
obligations under this Agreement; and
(b) if the complaining Party considers that it is not practicable or effective to

suspend concessions or other obligations with respect to the same sector(s), it may
suspend concessions or other obligations with respect to other sectors. The notification
of such suspension pursuant to paragraph 2 shall indicate the reasons on which it is
based.
5. The level of suspension referred to in paragraph 2 shall be equivalent to the level

of the nullification or impairment.
85
6. If the Party complained against considers that the requirements for the
suspension of concessions or other obligations by the complaining Party set out in
paragraphs 2, 3, 4 or 5 have not been met, it may refer the matter to an arbitral tribunal.
7. The arbitral tribunal that is established for the purposes of this Article or Article
12.12 shall have, wherever possible, as its arbitrators, the arbitrators of the original
arbitral tribunal. If this is not possible, then the arbitrators to the arbitral tribunal that is
established for the purposes of this Article or Article 12.12 shall be appointed pursuant
to Article 12.7. The arbitral tribunal established under this Article or Article 12.12 shall
issue its report within sixty (60) days after the date when the matter is referred to it.
When the arbitral tribunal considers that it cannot issue its report within the
aforementioned sixty (60) day period, it may extend that period for a maximum of thirty
(30) days with the consent of the Parties. The report shall be available to the public
within fifteen (15) days after the date of issuance, subject to the requirement to protect
confidential information. The report shall be final and binding on the Parties.
Article 12.14: Rules of Procedures
The Commission shall adopt the Rules of Procedures which provide for the
details of the rules and procedures of arbitral tribunals established under this Chapter, at
its first meeting. Unless the Parties otherwise agree, the arbitral tribunal shall follow the
rules of procedure adopted by the Commission and may, after consulting the Parties,
adopt additional rules of procedure consistent with the rules adopted by the
Commission.
Article 12.15: Modification of Rules and Procedures
1. Any time period or other rules and procedures for arbitral tribunals, provided for
in this Chapter, including the Rules of Procedures referred to in Article 12.14, may be
modified by mutual consent of the Parties.
2. The Parties may also agree, at any time, not to apply any provision of this
Chapter.
86
CHAPTER 13
EXCEPTIONS
Article 13.1: General Exceptions
1. For the purposes of Chapters 3 to 7 (Trade in Goods, Rules of Origin, Customs

Administration, Sanitary and Phytosanitary Measures, and Technical Regulations,
Standards and Conformity Assessment Procedures), Article XX of GATT 1994 and its
notes and supplementary provisions are incorporated into and made part of this
2. Nothing in this Agreement shall be construed to prevent a Party from taking

action authorized by the WTO Dispute Settlement Body. A Party taking such action
shall inform the Commission to the fullest extent possible of measures taken and of their
termination.
Article 13.2: Security Exceptions
1. Nothing in this Agreement shall be construed:
(a) to require a Party to furnish any information the disclosure of which it

considers contrary to its essential security interests;
(b) to prevent a Party from taking any action which it considers necessary
for the protection of its essential security interests:
(i) relating to fissionable and fusionable materials or the materials

from which they are derived;
(ii) relating to the traffic in arms, ammunition and implements of war

and to such traffic in other goods and materials, or relating to the supply
of services, as carried on directly or indirectly for the purpose of
supplying or provisioning a military establishment; or
(iii) taken in time of war or other emergency in international relations;

or
(c) to prevent a Party from taking any action in pursuance of its obligations
under the United Nations Charter for the maintenance of international peace and
security.
87
2. A Party taking action under paragraphs 1(b) and (c) shall inform the
Commission to the fullest extent possible of measures taken and of their termination.
Article 13.3: Taxation
1. For the purposes of this Article, tax convention means a convention for the
avoidance of double taxation or other international taxation agreement or arrangement
in force between the Parties; and taxation measures do not include a “customs duty” as
defined in Article 2.1.
2. Unless otherwise provided for in this Article, the provisions of this Agreement
shall not apply to any taxation measures.
3. This Agreement shall only grant rights or impose obligations with respect to
taxation measures where corresponding rights or obligations are also granted or
imposed under Article III of GATT 1994.
4. Nothing in this Agreement shall affect the rights and obligations of either Party
under any tax convention. In the event of any inconsistency between this Agreement
and any such convention, that convention shall prevail to the extent of the
inconsistency.
5. In the case of a tax convention between the Parties, the competent authorities
under that convention shall have sole responsibility for determining whether any
inconsistency exists between this Agreement and that convention.
Article 13.4: Balance-of-Payments Measures on Trade in Goods
1. The Parties shall endeavour to avoid the imposition of restrictive measures for
balance-of-payments purposes.
2. Any measure taken for balance-of-payments purposes shall be in accordance

with that Party’s rights and obligations under GATT 1994, including the Understanding
on the Balance-of-Payments Provisions of GATT 1994. When adopting such measures,
the Party shall immediately consult with the other Party.
3. Nothing in this Chapter shall be regarded as altering the rights enjoyed and
obligations undertaken by a Party as a party to the Articles of the Agreement of the
International Monetary Fund, as may be amended.
88
Article 13.5: Disclosure of Information
1. Each Party shall, in accordance with its domestic laws and regulations, maintain
the confidentiality of information provided in confidence by the other Party pursuant to
this Agreement.
2. Nothing in this Agreement shall be construed as requiring a Party to furnish or

allow access to confidential information the disclosure of which would impede law
enforcement or otherwise be contrary to the public interest or which would prejudice the
legitimate commercial interests of particular enterprises, public or private.
89
CHAPTER 14
FINAL PROVISIONS
Article 14.1: Annexes and Footnotes
The Annexes and footnotes to this Agreement constitute an integral part of this
Agreement.
Article 14.2: Amendments
1. The Parties may agree, in writing, on any modification of or addition to this

Agreement.
2. When so agreed, and approved in accordance with the necessary domestic legal
procedures of each Party, a modification or addition shall constitute an integral part of
this Agreement. Such amendment shall enter into force sixty (60) days after the date on
which the Parties exchange written notification that such procedures have been
completed, or after such other period as the Parties may agree.
Article 14.3: Amendment of the WTO Agreement
If any provision of the WTO Agreement that the Parties have incorporated into
this Agreement is amended, the Parties shall consult on whether to amend this
Agreement.
Article 14.4: Entry into Force and Termination
1. The entry into force of this Agreement is subject to the completion of necessary
domestic legal procedures by each Party.
2. This Agreement shall enter into force on the first day of the second month
following the month in which the Parties exchange written notification that such
procedures have been completed, or after such other period as the Parties may agree.
3. Either Party may terminate this Agreement by written notification to the other
Party. This Agreement shall expire one hundred and eighty (180) days after the date of
such notification.
90
Article 14.5: Future Negotiations on Trade in Services, Financial Services and
Investment
1. Unless otherwise agreed, no later than three (3) years after the entry into force of
this Agreement, the Parties shall consider the possibility to commence negotiations with
a view to including a Chapter on Trade in Services, a Chapter on Financial Services and
a Chapter on Investment to this Agreement, on a mutually advantageous basis.
2. The provision of paragraph 1 will not apply if the Parties, during the time period
mentioned in paragraph 1, conclude another international agreement on Trade in
Services, Financial Services and Investment.
Article 14.6: Authentic Texts
The English, Spanish and Vietnamese texts of this Agreement are equally
authentic. In the event of divergence, the English text shall prevail.
IN WITNESS WHEREOF, the undersigned, being duly authorized by their

respective governments, have signed this Agreement.
DONE at Honolulu, Hawaii, the United States of America, in duplicate, this 11th
of November, 2011.
FOR THE GOVERNMENT OF THE FOR THE GOVERNMENT OF THE

REPUBLIC OF CHILE SOCIALIST REPUBLIC OF VIET
NAM
Alfredo Moreno Charme Vu Huy Hoang

Minister of Foreign Affairs Minister of Industry and Trade
91
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EUROPE-VIETNAM

Impact assessment of the EU-

Summary: Intervention and Options RPC Opinion: Green

Cost of Preferred (or more likely) Option

£5,100 m N/A N/A No Not a regulatory provision

What are the policy objectives and the intended effects?

Signed by the responsible SELECT SIGNATORY: Date: 27th March 2019

COSTS (£m) Total Transition Average Annual Total Cost

Other key non-monetised costs by ‘main affected groups’

BENEFITS (£m) Total Transition Average Annual Total Benefit

Other key non-monetised benefits by ‘main affected groups’

Key assumptions/sensitivities/risks Discount rate (%) 3.5%

BUSINESS ASSESSMENT (Option 1)

The structure of this Impact Assessment is as follows:

The world in which the UK trades

1.8 An open and rules-based international trading environment enables economic

Growth, prosperity and jobs

1.9 Empirical studies generally suggest a positive relationship between trade

Choice, value and quality for consumers

Graph 1: Total trade as a percentage of GDP

3500 Services exports

Source: Office for National Statistics, Pink Book 2017

Table 1: Top 10 UK goods exports and imports on average 2015 to 2017

Top 10 goods imports from Vietnam

Table 2: Revealed comparative advantage of UK and Vietnam goods exports

Table 3: Revealed comparative advantage of UK and Vietnam service

Vehicles, aircraft and vessels

0% 10% 20% 30% 40% 50%

Source: International Trade Centre (ITC) market access maps. http://www.macmap.org/CountryAnalysis/.

1.32 Additionally, non-tariff measures such as regulatory and standards requirements

Technical Barriers to Trade Sanitary and Phytosanitary

Source: WTO integrated analysis and retrieval of notified non-tariff measures

Graph 5: OECD trade facilitation index

External border 1.0

Internal border 0.0

Procedures Fees & charges

Source: OECD (http://www.oecd.org/trade/facilitation/indicators.html)

Graph 6: UK businesses exporting to and importing from Vietnam in 2016

Mining, Petroleum products and Waste

Agriculture and Food

Machinery and equipment

Electronic and Electrical equipment

0 500 1,000 1,500 2,000

 Trade in Goods, including cars and pharmaceutical products

3 Problem under consideration

3.1 The European Commission has presented a proposal on signature and

4.2 UK Government support for the signature of EVFTA would be a demonstration

 Provide a practical demonstration to the EU of the UK’s commitment to

6 Description of options considered

Option 1: UK supports signature and conclusion of the EVFTA

Option 2: UK does not support signature and conclusion of EVFTA

Economic appraisal the EU-Vietnam Free Trade Agreement on the UK

 For modelling purposes, the EU and UK continue to trade on current terms

 The impact of the trade agreement is modelled over a 10 year period up to

 Agreements not yet in force (EU-Singapore) have been included in the

a) Direct benefits to UK businesses from a reduction in tariffs and regulatory

(i) Monetised impacts

Tariff and non-tariff barrier reductions in the trade of goods

7.17 Alcoholic beverages – Vietnam imposes relatively high tariffs on alcoholic

Non-tariff barrier reductions in the trade of services

7.22 Financial services - Vietnam commits to cross-border services for financial

7.23 Business services - The agreement provides better access in a number of

(ii) Non-monetised impacts