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Laws & RegulationsWednesday, 06/21/2006, 07:46

Agreement Between The United States of America and The Socialist Republic of Vietnam on Trade Relations

AGREEMENT BETWEEN

 

Agreement Between The United States of America and The Socialist Republic of Vietnam on Trade Relations

The Government of the United States of America and the Government of the Socialist Republic of
Vietnam (hereinafter referred to collectively as "Parties" and individually as "Party"),
Desiring to establish and develop mutually beneficial and equitable economic and trade
relations on the basis of mutual respect for their respective independence and sovereignty;
Acknowledging that the adoption of and compliance with international trade norms and
standards by the Parties will aid the development of mutually beneficial trade relations, and should
be the underlying basis of those relations;
Noting that Vietnam is a developing country at a low level of development, is in the process
of economic transition and is taking steps to integrate into the regional and world economy by, inter
alia, joining the Association of Southeast Asian Nations (ASEAN), the ASEAN Free Trade Area
(AFTA), and the Asia Pacific Economic Cooperation forum (APEC), and working toward
membership in the World Trade Organization (WTO);
Having agreed that economic and trade ties and intellectual property rights protection are
an important and necessary element in the strengthening of their bilateral relations; and
Being convinced that an agreement on trade relations between the Parties will best serve
their mutual interests,
Have agreed as follows:
1 As used in this Agreement, the term �normal trade relations� shall have the same meaning
as the term �most favored nation� treatment.
-2-
CHAPTER I: TRADE IN GOODS
Article 1
Most Favored Nation (Normal Trade Relations)1
1. Each Party shall accord immediately and unconditionally to products originating in or
exported to the territory of the other Party treatment no less favorable than that accorded
to like products originating in or exported to the territory of any third country in all matters
relating to:
A. customs duties and charges of any kind imposed on or in connection with
importation or exportation, including the method of levying such duties and charges;
B. methods of payment for imports and exports, and the international transfer of such
payments;
C. rules and formalities in connection with importation and exportation, including those
relating to customs clearance, transit, warehouses and transshipment;
D. taxes and other internal charges of any kind applied directly or indirectly to imported
products;
E. laws, regulations and other requirements affecting the sale, offering for sale,
purchase, transportation, distribution, storage and use of products in the domestic
market; and
F. the application of quantitative restrictions and the granting of licenses.
2. The provisions of paragraph 1 of this Article shall not apply to action by a Party which is
consistent with such Party�s obligations under the World Trade Organization and the
agreements administered thereby. A Party shall nonetheless extend to the products
originating in the territory of the other Party most-favored nation treatment in respect of any
tariff reductions resulting from multilateral negotiations under the auspices of the World
Trade Organization provided such Party accords such benefits to all other WTO members.
3. The provisions of paragraph 1 of this Article shall not apply to:
-3-
A. advantages accorded by either Party by virtue of such Party's full membership in a
customs union or free trade area, and
B. advantages accorded to third countries for the facilitation of frontier traffic.
4. The provisions of sub-paragraph 1.F of this Article shall not apply to trade in textiles and
textile products.
Article 2
National Treatment
1. Each Party shall administer tariff and nontariff measures affecting trade in a manner which
affords meaningful competitive opportunities for products of the other Party with respect
to domestic competitors.
2. Accordingly, neither Party shall impose, directly or indirectly, on the products of the other
Party imported into its territory, internal taxes or charges of any kind in excess of those
applied, directly or indirectly, to like domestic products.
3. Each Party shall accord to products originating in the territory of the other Party treatment
no less favorable than that accorded to like domestic products in respect of all laws,
regulations and other requirements affecting their internal sale, offering for sale, purchase,
transportation, distribution, storage or use.
4. In addition to the obligations of paragraphs 2 and 3 of this Article, the charges and measures
described in paragraphs 2 and 3 of this Article shall not otherwise be applied to imported
or domestic products so as to afford protection to domestic production.
5. The obligations of paragraphs 2, 3 and 4 of this Article shall be subject to the exceptions set
forth in Article III of GATT 1994 and Annex A to this Agreement.
6. Consistent with the provisions of GATT 1994, the Parties shall ensure that technical
regulations and standards are not prepared, adopted or applied with a view to creating
obstacles to international trade or to protect domestic production. Furthermore, each Party
shall accord products imported from the territory of the other Party treatment no less
favorable than the better of the treatment accorded to like domestic products or like
products originating in any third country in relation to such technical regulations or
standards, including conformity testing and certification. Accordingly, the Parties shall:
A. ensure that any sanitary or phytosanitary measure which is not inconsistent with the
provisions of the GATT 1994, is applied only to the extent necessary to protect
human, animal or plant life or health, is based on scientific principles and is not
-4-
maintained without sufficient evidence (i.e., a risk assessment), taking into account
the availability of relevant scientific information and regional conditions, such as pest
free zones;
B. ensure that technical regulations are not prepared, adopted or applied with a view
to or with the effect of creating unnecessary obstacles to international trade. For
this purpose, technical regulations shall not be more trade-restrictive than necessary
to fulfil a legitimate objective, taking into account the risks non- fulfillment would
create. Such legitimate objectives include national security requirements; the
prevention of deceptive practices; protection of human health or safety, animal or
plant life or health, or the environment. In assessing such risks, relevant elements
of consideration include available scientific and technical information, related
processing technology or intended end- uses of products.
7. Upon the entry into force of this Agreement, each Party shall grant trading rights to the
nationals and companies of the other Party. With respect to Vietnam, such trading rights
shall be granted in accordance with the following schedule:
A. Upon entry into force of this Agreement, all domestic enterprises shall be allowed
to engage in trading activities in all products, subject to restrictions listed in Annexes
B and C.
B. Upon entry into force of this Agreement, enterprises with capital directly invested
by U.S. nationals and companies shall be allowed, subject to the restrictions in
Annexes B and C, to import goods and products to be used in, or in connection with
their production or export activities whether or not such imports are specifically
identified in their initial investment license.
C. Three years after entry into force of this Agreement, enterprises with capital directly
invested by U.S. nationals and companies, in production and manufacturing sectors,
shall be allowed to engage in trading activities, subject to the restrictions listed in
Annexes B, C and D, and provided such enterprises are (i) engaged in substantial
business activities in the production and manufacturing sectors; and (ii) are lawfully
operating in Vietnam.
D. Three years after entry into force of this Agreement, U.S. nationals and companies
shall be allowed to enter into joint ventures with Vietnamese counterparts to engage
in trading activities in all products, subject to restrictions listed in Annexes B, C and
D. Equity contributed by U.S. companies shall not exceed 49% of such joint
ventures� legal capital. Three years thereafter, this limitation on U.S. ownership
shall be 51%.
-5-
E. Seven years after entry into force of this Agreement, U.S. companies shall be
allowed to establish 100% U.S.- owned companies to engage in trading activities in
all products, subject to restrictions listed in Annexes B, C and D.
8. If a Party has not acceded to the International Convention on the Harmonized Commodity
Description and Coding System, it will undertake every reasonable effort to do so as soon
as possible, but no later than one year after the entry into force of this Agreement.
Article 3
General Obligations with Respect to Trade
1. The Parties shall seek to achieve a satisfactory balance of market access opportunities
through the satisfactory reciprocation of reductions in tariffs and nontariff barriers to trade
in goods resulting from multilateral negotiations.
2. The Parties shall except as specifically provided in Annexes B and C to this Agreement,
eliminate all import and export restrictions, quotas, licensing requirements, and controls for
all product and service categories, other than those that would be permitted by GATT 1994.
3. The Parties shall, within two years of the entry into force of this Agreement, limit all fees
and charges of whatever character (other than import and export duties and other taxes
within the purview of Article 2 of this Chapter) imposed on or in connection with
importation or exportation to an amount approximate to the cost of services rendered, and
ensure that such fees and charges do not represent an indirect protection to domestic
products or a taxation of imports or exports for fiscal purposes;
4. The Parties shall, within two years of the entry into force of this Agreement, adopt a system
of customs valuation based on the transaction value of the imported merchandise on which
duty is assessed, or of like merchandise, rather than on the value of merchandise of national
origin or on arbitrary or fictitious values, with the transaction value being the price actually
paid or payable for the goods when sold for export to the country of importation in
accordance with the standards established in the Agreement on Implementation of Article
VII of the GATT 1994; and
5. Within two years of entry into force of this Agreement, the Parties shall ensure that the fees
and charges referred to in paragraph 3 of this Article and the customs valuation system
referred to in paragraph 4 of this Article are imposed or implemented uniformly and
consistently throughout each Party�s customs territory.
6. In addition to the obligations set forth in Article 1, Vietnam shall provide tariff treatment
to products originating in the customs territory of the United States in accordance with the
provisions of Annex E.
-6-
7. Neither Party shall require its nationals or companies to engage in barter or countertrade
transactions with nationals or companies of the other Party. Nevertheless, where nationals
or companies decide to resort to barter or countertrade operations, the Parties may furnish
them information to facilitate the transaction and assist them as they would with respect to
other export and import operations.
8. The United States shall consider Vietnam�s eligibility for the Generalized System of
Preferences.
Article 4
Expansion and Promotion of Trade
Each Party shall encourage and facilitate the holding of trade promotional events such as trade fairs,
exhibitions, missions and seminars in its territory and in the territory of the other Party. Similarly,
each Party shall encourage and facilitate the participation of its respective nationals and companies
in such events. Subject to the laws in force within their respective territories, the Parties agree to
allow the import and re-export on a duty free basis of all articles for use in such events, provided
that such articles are not sold or otherwise transferred.
Article 5
Government Commercial Offices
1. Subject to its laws and regulations governing foreign missions, each Party shall allow
government commercial offices of the other Party to hire host-country nationals and, subject
to immigration laws and procedures, third-country nationals.
2. Each Party shall ensure unhindered access of host-country nationals to government
commercial offices of the other Party.
3. Each Party shall allow the participation of its nationals and companies in the commercial
activities of the other Party's government commercial offices.
4. Each Party shall allow access by government commercial office personnel of the other Party
to the relevant host-country officials, and to representatives of nationals and companies of
the host Party.
-7-
Article 6
Emergency Action on Imports
-8-
1. The Parties agree to consult promptly at the request of either Party whenever either actual
or prospective imports of products originating in the territory of the other Party cause or
threaten to cause or significantly contribute to market disruption. Market disruption exists
within a domestic industry whenever imports of an article, like or directly competitive with
an article produced by such domestic industry, are increasing rapidly, either absolutely or
relatively, so as to be a significant cause of material injury, or threat thereof, to such
domestic industry. The consultations provided in this paragraph shall have the objectives
of (a) presenting and examining the factors relating to such imports that may be causing or
threatening to cause or significantly contributing to market disruption, and (b) finding means
of preventing or remedying such market disruption. Such consultations shall be concluded
within sixty days from the date of the request for such consultations, unless the Parties agree
otherwise.
2. Unless a different solution is mutually agreed upon during the consultations, the importing
Party may (a) impose quantitative import limitations, tariff measures or any other restrictions
or measures it deems appropriate, and for such period of time it deems necessary, to prevent
or remedy threatened or actual market disruption, and (b) take appropriate measures to
ensure that imports from the territory of the other Party comply with such quantitative
limitations or other restrictions introduced in connection with market disruption. In this
event, the other Party shall be free to deviate from its obligations under this Agreement with
respect to substantially equivalent trade.
3. Where in the judgment of the importing Party, emergency action is necessary to prevent or
remedy such market disruption, the importing Party may take such action at any time
without prior notice or consultation, on the condition that consultations shall be effected
immediately after taking such action.
4. The Parties acknowledge that the elaboration of the market disruption safeguard provisions
in this Article is without prejudice to the right of either Party to apply its laws and
regulations applicable to trade in textiles and textile products, and its laws and regulations
applicable to unfair trade, including antidumping and countervailing duty laws.
Article 7
Commercial Disputes
For the purposes of Chapter I of this Agreement:
1. Nationals and companies of either Party shall be accorded national treatment with respect
to access to all competent courts and administrative bodies in the territory of the other
Party, as plaintiffs, defendants or otherwise. They shall not be entitled to claim or enjoy
immunity from suit or execution of judgment, proceedings for the recognition and
enforcement of arbitral awards, or other liability in the territory of the other Party with
-9-
respect to commercial transactions. They also shall not claim or enjoy immunities from
taxation with respect to commercial transactions, except as may be provided in other
bilateral agreements.
2. The Parties encourage the adoption of arbitration for the settlement of disputes arising out
of commercial transactions concluded between nationals or companies of the United States
of America and nationals or companies of the Socialist Republic of Vietnam. Such
arbitration may be provided for by agreements in contracts between such nationals and
companies, or in separate written agreements between them.
3. The parties to such transactions may provide for arbitration under any internationally
recognized arbitration rules, including the UNCITRAL Rules of December 15, 1976, and
any modifications thereto, in which case the parties should designate an Appointing
Authority under said rules in a country other than the United States of America or the
Socialist Republic of Vietnam.
4. The parties to the dispute, unless otherwise agreed between them, should specify as the
place of arbitration a country other than the United States of America or the Socialist
Republic of Vietnam, that is a party to the Convention on the Recognition and Enforcement
of Foreign Arbitral Awards, done at New York, June 10, 1958.
5. Nothing in this Article shall be construed to prevent, and the Parties shall not prohibit, the
parties from agreeing upon any other form of arbitration or on the law to be applied in such
arbitration, or other form of dispute settlement which they mutually prefer and agree best
suits their particular needs.
6. Each Party shall ensure that an effective means exists within its territory for the recognition
and enforcement of arbitral awards.
Article 8
State Trading
1. The parties may establish or maintain a state enterprise, or grant to any enterprise, formally
or in effect, exclusive or special privileges, to import and export the products listed in Annex
C, provided however, that any such enterprise shall, in its purchases or sales involving either
imports or exports, act in a manner consistent with the general principles of nondiscriminatory
treatment prescribed in this Agreement for governmental measures affecting
imports or exports by private traders.
2. The provisions of paragraph 1 of this Article shall be understood to require that such
enterprises shall, having due regard to the other provisions of this Agreement, make any
such purchases or sales solely in accordance with commercial considerations, including
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price, quality, availability, marketability, transportation and other conditions of purchase or
sale, and shall afford the enterprises of the other Party adequate opportunity, in accordance
with customary business practice, to compete for participation in such purchases or sales.
3. The provisions of paragraph 1 of this Article shall not apply to imports of products for
immediate or ultimate consumption in government use and not otherwise for resale or use
in the production of goods for sale. With respect to such imports, each Party shall accord
to the trade of the other Party fair and equitable treatment.
Article 9
Definitions
As used in this Chapter, the terms set forth below shall have the following meaning:
1. "company," means any entity constituted or organized under applicable law, whether or not
for profit, and whether privately or governmentally owned or controlled, and includes a
corporation, trust, partnership, sole proprietorship, branch, joint venture, association, or
other organization.
2. �enterprise,� means a company.
3. "national," means a natural person who is a national of a Party under its applicable law.
4. �commercial dispute,� means a dispute between parties to a commercial transaction which
arises out of that transaction.
5. �trading rights,� means the right to engage in import or export activities.
-A1-
ANNEX A
VIETNAM
Exceptions on National Treatment
The provisions of Chapter I, Article 2 are not applied to the following:
1. Special consumption tax on vehicles under 12 seats, inputs of production of cigarettes, and
cigars.
2. Supplemental tax on fuels, metals and fertilizers.
The aforementioned exceptions in this Annex (paragraphs 1 and 2) will be eliminated within 3 years
from the entry into force of this Agreement.
-B1-
ANNEX B
VIETNAM
*Note: Phase-out period in Annex B shall be calculated from date of entry into force of this
Agreement
Annex B1 - Import Quantitative Restrictions - Agricultural Products
HS Number Description Phase-Out
Period
(yrs.)*
0201 Meat of bovine animals, fresh/chilled 4
0207 Poultry meat & offals.- frsh/chilled/fz 5
0401 Milk - fresh milk... 4
0402 Condensed milk or cream 4
0403 Buttermilk, yogurt, kephir and other fermented or acidified
milk
4
0404 Whey, concentrated or containing added sugar... 4
0805 Citrus fruits: fresh or dried 4
1005.10.90 - Other (corn) 4
1005.90.00 - Other 4
1103.13.00 - Of corn 4
1104.19.10 - Corn 4
1104.23.00 - Of corn 4
1507 Soybean oil and its fractions, whether or not refined, but
not chemically modified
1507.90.10 - refined 4
1507.90.90 - other 4
-B2-
1508 Ground nut oil and its fractions, whether or not refined,
but not chemically modified
1508.90.10 - refined 4
1508.90.90 - other 4
1509 Olive oil and its fractions, whether or not refined, but not
chemically modified
1509.90.10 - refined 4
1509.90. 90 - other 4
1510.00 Other oils and their fractions, obtained solely from olives,
whether or not refined..
1510.00.91 - refined 4
1510.00.99 - other 4
1511 Palm oil and its fractions, whether or not refined, but not
chemically modified
1511.90.90 - other 4
1512 Sunflower, safflower or cotton seed oil and fractions
thereof, whether or not refined but not chemically modified
1512.19.10 - refined 4
1512.19.90 - other 4
1512.29.10 - refined 4
1512.29.90 - other 4
1513 Coconut (copra), palm kernel or babassu oil and fractions
thereof, whether or not refined but not chemically modified
1513.19.10 - refined 4
1513.19.90 - other 4
1513.29.10 - refined 4
1513.29.90 - other 4
1514 Rape, colza or mustard oil and ...
1514.90.10 - refined 4
1514.90.90 - other 4
-B3-
1515 Other fixed vegetable fats and oils...
1515.19.00 - other 4
1515.29.90 - other 4
1515.30.90 - other 4
1515.40.90 - other 4
1515.50.90 - other 4
1515.60.90 - other 4
1515.90.12 - other 4
1515.90.99 - other 4
1516 Animal or vegetable fats and oils and their fractions, partly
or wholly hydrogenated, inter-esterified...
1516.20.00 - vegetable fats and oils and fractions 4
1601 Sausages and similar products, of meat, meat offal or
blood...
3
1602 Other prepared and preserved meat... 3
1701.11.00 - cane-sugar 10
1701.12.00 - beet sugar 10
1701.91.00 - containing added flavoring or coloring matter 10
1701.99.10 - white sugar 10
1701.99.90 - other 10
2006 Vegetables, fruit, nuts, fruit and other parts of plants, pr/pr
by sugar
5
2007 Jams, fruit jellies, marmalades, fruit or nut puree... 3
2009 Fruit juices (including grape must) and vegetable juices...
- orange juices
2009.11.00 - frozen 5
2009.19.00 - other 5
2009.20.00 - grapefruit juice 3
2009.30.00 - juice of any other single citrus fruit 5
-B4-
2009.40.00 - pineapple juice 5
2009.50.00 - tomatoes juice 5
2009.60.00 - grape juice (including grape must) 3
2009.70.00 - apple juice 3
2009.80.00 - juice of any other single fruit/vegetable 5
2009.90.00 - mixtures of juices 5
2101 Extracts, essences and concentrates, of coffee, tea...
2101.11.10 - Instant coffee 4
2101.11.90 - Other 4
2101.12.00 - Preparations with a basic of extracts, essences or
concentrates or with a basic of coffee
4
2204 Wine or fresh grapes, including fortified wines; grape must
other than that of heading No. 2009
5
2205 Vermouth and other wine of fresh grapes flavored with
plants or aromatics substances
5
2206 Other fermented beverages 5
2207 Undenatured ethyl alcohol > 80% 5
2208 Undenatured ethyl alcohol < 80% 5
2309 Preparations of a kind used in animal feeding
2309.90.10 - Shrimp food 4
2309.90.90 - Other 4
Annex B1 - Import Quantitative Restrictions - Industrial Products
-B5-
HS Number Description Phase-Out
Period (yrs) *
25231000 --Cement clinkers 6
25232100 --White portland cement whthr or nt art colored 6
25232910 --Portland cement except white portland cement 6
25232920 --Portland cement except white portland cement 6
27072000 --Toluene 7
27101100 --Aviation spirit 7
27101200 �White spirit (for producing paints) 7
27101900 �Other petroleum oils and oil preparations 7
27102000 �Diesel 7
27103000 �Mazout 7
27104000 --Other light oils & preparation 7
27105000 --Other medium oils & preparations 7
27106000 �Other medium oils &preparations 7
27107000 --Other medium oils & preparations 7
27109000 --Petroleum oils and oil preparations, other 7
27111100 --Natural gas, liquified 7
27111200 --Propane, liquefied 7
27111300 --Butanes, liquefied 7
27111400 --Ethylene, propylene, butylene and butadiene liquified 7
27111900 --Petroleum gases etc., liquified, nesoi 7
28061000 --Hydrogen chloride (hydrochloric acid) 3
28070000 --Sulfuric acid; oleum 3
28092010 --Phosphoric acid and polyphosphoric acids 3
28141000 --Anhydrous ammonia 3
28142000 --Ammonia in aqueous solution 3
28151100 --Sodium hydroxide (caustic soda), solid 3
28151200 --Sodium hydroxide in aqueous solution 3
31051000 --Fertilizers... in packages of a gross weight =<10kg 5
31052000 --Mineral or chemical fertilizers with nitrogen, phosphorus and potassium 5
31053000 --Diammonium hydrogenorthophosphate (diammonium phosphate) 5
31054000 --Ammonium dihydrogenorthophosphate (monoammonium phosphate) 5
31055100 --Mineral or chemical fertilizers containing nitrates and phosphates 5
31055900 --Mineral or chemical fertilizers with nitrogen and phosphorus, nes 5
31056000 --Mineral or chemical fertilizers with phosphorus and potassium, nes 5
-B6-
31059000 --Other fertilizers, nes 5
32081020 � Other varnishes 3
32081040 � Base paints 3
32081050 -- Other, including enamels 3
32081090 � Other 3
32082020 -- Other varnishes 3
32082040 -- Base paint 3
32082050 -- Other, including enamels 3
32082090 � Other 3
32089020 � Other varnishes 3
32089040 � Base paints 3
32089050 -- Other, including enamels 3
32089090 � Other 3
32091020 � Other varnishes 3
32091040 � Base paints 3
32091050 -- Other, including enamels 3
32091090 � Other 3
32099020 � Other varnishes 3
32099040 � Base paints 3
32099050 -- Other, including enamels 3
32099090 � Other 3
32100020 � Other varnishes 3
32100040 � Base paints 3
32100050 -- Other, including enamels 3
32100060 � Other 3
38122000 --Compound plasticizers for rubber or plastics 3
38123010 --Antioxidizing prep & oth compnd,for rubber/plastic 3
40111000 --New pneumatic tires of rubber, for motor cars 4
40112010 --New pneumatic tires of rubber, for buses or trucks 4
40112090 --New pneumatic tires of rubber, for buses or trucks 4
40114000 --New pneumatic tires, of rubber, used on motorcycle 7
40115000 --New pneumatic tires, of rubber, used on bicycles 7
40119110 --Tires with a width of 450 mm 7
40119190 � Other 7
40119910 --Tires with a width of 450 mm 7
40119990 � Other 7
40131010 --Inner tubes of rubber for mot cars, buses & trucks 7
-B7-
40131090 --Inner tubes of rubber for mot cars, buses & trucks 7
40132000 --Inner tubes, of rubber, of a kind used on bicycles 7
40139010 --Inner tubes, of rubber, of a kind used on aircraft 7
40139020 --Inner tubes, of rubber, of a kind used on motorcycles 7
40139091 --Inner tubes, of rubber, for tires with a width of 450 mm 7
40139099 --Inner tubes, of rubber, for tires with a width over 450 mm 7
48010000 --Newsprint, in rolls or sheets 5
48021000 --Handmade paper and paperboard 5
48025110 --Paper, nov 10% fiber by mech pr, un40g/m2 uc 5
48025190 --Paper nesoi, nov 10% fiber by mech pr, un40g/m2 uc 5
48025210 --Paper, nov 10% fib mech pr, 40g/m2nov150g/m2 5
48025290 --Paper nesoi, nov 10% fib mech pr, 40g/m2nov150g/m2 5
48025300 --Paper nesoi, nov 10% fiber by mech pr, ov150g/m2 u 5
48026010 --Paper, over 10% (wt) fiber by mechan proc uc 5
48026090 � Other 5
48041100 --Kraftliner, uncoated unbleached in rolls or sheets 4
48041900 � Other 4
48044190 --Kraft paper nesoi, ov 150 g/m2 un 225 g/m2 uc unbl 4
48044200 --Kraft paper nesoi, ov150g/m2und225g/m2, bl, 95% wf uc 4
48044900 --Kraft paper/pprbrd unctd blchd nesoi 151-224g/m2 4
48045190 � Other 4
48045200 --Kraft pr nesoi, not un 225g/m2, bl, 95% w fib chem 4
48045900 � Other 4
48079000 � Other 4
48101110 --Paper, writ etc, nov 10% mech pr fib nov150g/m2 ct 5
48101210 --Paper/pbrd writing etc nesoi clay ctd ov 150g/m2 etc 5
48102110 --Paper, light-wgh coated writing etc over 10% mech 5
48102910 --Paper/pbrd ex lit-wgh writing etc clay ctd ov 10% mec 5
48202000 --Exercise books, of paper or paperboard 5
48235110 �-Paper/pbrd for graphics nesoi prnt/embssd etc cut sz 5
48235910 --Paper & paperbd cut to size etc, for photocopy 5
50071000 --Woven fabrics of noil silk 5
50072000 --Wov fab ov 85% silk or silk waste except noil silk 5
50079000 --Woven fabrics of silk or silk waste, nesoi 5
68101910 --Tiles, flagstones etc, cement etc or artif stone 3
69049000 � Other 3
69059000 � Other 3
-B8-
69071000 --Unglzd ceramic tiles, cubes etc, sides ls thn 7 cm 3
69079000 � Other 3
69081000 --Glazed ceramic tiles cubes etc fttng in sq un 7cm 3
69089000 � Other 3
69101000 --Ceramic sanitary fixtures of porcelain or china 3
69109000 --Ceramic sanitary fixtures oth thn of porcln/china 3
70031290 --Nonwrd shts cast/rld glass, colrd,opac,flshd,layrd 6
70031990 --Cast or rolled glass in nonwired sheets, nesoi 6
70042090 --Drawn/blown glass sheets colored opac flash spec layer 6
70049090 --Drawn/blown glass shts w/wo absorb/rfct lyr n oth wrkd 6
70052190 --Nonwrd glass clrd opc flshd or srfc grnd n ab/rf ly 6
70052990 --Nonwired glass nesoi in sheets 6
70169000 --Gls cons art nesoi;ld wndws;mltclr/fmd gls artcls 6
72091500 --Flt-cold-rol irn,noaly,coil,600mm wide,3mm > thick 6
72091600 --Fl-cld-rl irn, nesoi, st,coil,600mm wide,>1mm but <3mm 6
72091700 --Fl-cld-rl irn,st,coil,600mm wd,0.5mmbut n/o 1mm tk 6
72091800 --Flat-cold-rld ir,stl,coils,600mm wide,<0.5mm thick 6
72092500 --Flt-cld-rld ir,st,not coil,600mm wide,3mm or > thk 6
72092600 --Flt-cld-rld ir,st,not coil,600mm wd, >1mm <3mm thk 6
72092700 --Flt-cld-rld,not coil 600mm w,>0.5mmbut n/o 1mm thk 6
72092800 --Flt-cld-rld ir,nonal,notcoil,600mm wide,>0.5mm thk 6
72099000 --Other 6
72103010 --Flat-rld iron,nonal stl,600mm wide,elec platd zinc 6
72103090 --Other 6
7210 4110 - Of a thickness not more than 1.2 mm 6
72104190 --Other 6
72104910 --Fr ir/nas ctd/pltd w zinc nt elec nt corr 600mm om 6
72104990 � Other 6
72105000 --Fr ios na 600mm ao w ctd/pltd w cro or cr and cro 6
72106110 --Fr iron/nonalloy steel 600mm ao,pltd/ctd alum-znc 6
72106190 --Other 6
72106910 --Fr iron/nonalloy steel,600mm ao,pltd/ctd othr alum 6
72106990 --Other 6
72107000 --Fr ir/nas 600mm w om, painted, varnished, plastic 6
72109000 --Other 6
72111300 --Fr hs ios na un600mm w hr pl unvrsl mllplte 6
72111400 --Fr hs ios na un600mm w hr pl 4.75mm ao thck 6
-B9-
72111900 --Oth fr hi-str st un 600mm w npld un4.75mm thck 6
72112300 --Flat-hot-rolled iron,nonalystl, <600mm wide, nesoi 6
72112900 --Other 6
72119000 --Other 6
72131010 --Bars and rods irregular coils concrete reinforcing 6
72131020 --Bars and rods irregular coils concrete reinforcing 6
72132000 --Brs rods hot-rlld irreg coils free-cuttng steel 6
72139100 --Bars,rodshot-roll,irnnoal st coil circ,<14mm nesoi 6
72139900 --Other 6
72141010 --Other bars and rods iron or nonalloy steel, forged 6
72141020 --Other 6
72142010 --Oth brs rds ios na hot-wrkd, conc reinfrcng 6
72142020 --Other 6
72143010 --Other bars and rods free-cutting steel, hot-worked 6
72143020 --Other 6
72149100 --Bars,rods,hot-rolled,-drawn,-ext,rectangular,nesoi 6
72149900 --Other 6
72151010 --Oth brs and rds free-cttng stl cold-fmd or fnshd 6
72151090 --Other 6
72155010 --Bars,rods,irn,noal,cold-formed,cold-finished,nesoi 6
72155090 --Other 6
72159010 --Bars and rods iron or nonalloy steel, nesoi 6
72159090 --Other 6
72161000 --U-i-h-sections ir/nas hot/wrkd ls thn 80mm high 6
72162100 --L sec ios na hot-wkd lss th 80mm high 6
72162200 --T sec ios na hot-wkd lss th 80mm high 6
72163110 --U sec ios na hot-wkd 80mm or more high 6
72163190 --Other 6
72163210 --I sec ios na hot-wkd 80mm ao high (standard beams) 6
72163290 --Other 6
72163310 --H sections irn/nas, hot-wrkd, 80mm hi or more 6
72163390 --Other 6
72164010 --L or t sections ir/nas hot-wrkd, 80mm hi or more 6
72164090 --Other 6
72165010 --Oth angls shps sec ios na hot-wkd 6
72165090 --Other 6
72166100 --Angls shps sec ir/nas nt frthr cld-wrkd frm fr pro 6
-B10-
72166900 --Other 6
72169100 --Angls shps sec irn/nas oth cld-wrkd fr fr products 6
72169900 --Other 6
72171000 --Other 6
72172000 -Other 6
72173000 -Other 6
72179000 -Other 6
73030000 --Tubes, pipes and hollow profiles of cast iron 6
73043191 --Oth ios na ps tb hlw pfl smls cir cs cold-wrkd 6
73043991 --Oth ios na ps tb hlw pfl smls cir cs nt cld-wrkd 6
73049091 --Tubes, pipes etc, seamless nesoi, ir nesoi & steel 6
73049099 --Tubes, pipes etc, seamless nesoi, ir nesoi & steel 6
73053920 �Other pipe, ov16in iron or steel, welded nesoi 6
73063091 --Pipe etc nesoi, weld cir cr sect, iron or nonal st 6
73069091 --Pipes etc nesoi, riveted etc, of iron or steel 6
73130000 --Barbed wire and twisted wire for fencing, iron/stl 6
73141900 --Woven products iron or steel, nesoi 6
73142000 --Grill netting fencing wld ir/st wr 3mmcs 100cm2msh 6
73143100 --Oth grll nttng a fncng wldd at intrsct galvnzed st 2
73143900 --Other 2
73144100 --Oth grill, nettg fncg ios ctd/pl w zn nesoi nt wld 2
73144200 --Grill netting fencing, plastic coated ios wr nesoi 2
73144900 --Other 2
73145000 --Expanded metal, iron or steel 2
ex8407 --Engines with a capacity not exceeding 30 cv 7
ex8407 --Engines with a capacity exceeding 30 cv but not exceeding 100 cv 6
ex8408 --Engines with a capacity not exceeding 30 cv 7
ex8408 --Engines with a capacity exceeding 30 cv but not exceeding 100 cv 6
84145100 --Table, floor etc fans electric not exceed 125 w 3
84145900 --Other 3
87021000 --Mv trnsp >ten prsns com-igntn intr comb pist(disl) 5
87029000 --Other 5
87031010 --Pass veh for snow; golf carts & similar vehicles 5
87031020 --Pass veh for snow; golf carts & similar vehicles 5
87032110 --Pass mtr veh, spark ign eng, not ov 1,000 cc 5
87032120 --Pass mtr veh, spark ign eng, not ov 1,000 cc 5
87032210 --Pass mtr veh,spark ign eng, >1000cc but =<1500cc 5
-B11-
87032220 --Pass mtr veh,spark ign eng, >1000cc but =<1500cc 5
87032310 --Pass veh spk-ig int com rcpr p eng >1500 nov 3m cc 5
87032320 --Pass veh spk-ig int com rcpr p eng >1500 nov 3m cc 5
87032410 --Pass veh spk-ig int com rcpr p eng > 3000 cc 5
87032420 --Pass veh spk-ig int com rcpr p eng > 3000 cc 5
87033110 --Pass mtr veh, diesel eng, not ov 1500 cc 5
87033120 --Pass mtr veh, diesel eng, not ov 1500 cc 5
87033210 --Pass veh com-ig int com eng > 1500 nov 2500 cc 5
87033220 --Pass veh com-ig int com eng > 1500 nov 2500 cc 5
87033310 --Pass veh com-ig int com eng > 2500 cc 5
87033320 --Pass veh com-ig int com eng > 2500 cc 5
87039010 --Passenger motor vehicles, nesoi 5
87039020 --Passenger motor vehicles, nesoi 5
87042100 --Trucks, nesoi, diesel eng, gvw 5 metric tons & und 5
87043100 --Mtr veh trans gds spk ig in c p eng, gvw nov 5 mtn 5
87049010 --Mtr veh of gross weight not > 5 tons 5
ex8711 --Motorcycles with an engine capacity of less than 175cv 5
87120010 --Bicycles & oth cycles (inc del tricycle) no motor 5
87120020 --Bicycles & oth cycles (inc del tricycle) no motor 5
87120090 --Bicycles & oth cycles (inc del tricycle) no motor 5
87149100 --Frames and forks, and prts for bicycles etc. 3
87149200 --Wheel rims and spokes for bicycles etc. 3
87149300 --Hubs,other than coster brakn hubs,hb brks,spk,whls 3
87149400 --Brakes, incl coaster brkng hubs,hub brks,prts,nes 3
87149500 --Saddles for bicycles etc. 3
87149600 --Pedals and crank-gear, parts of bicycles etc. 3
87149900 --Other 3
89011090 -- other (cruise ships, etc, less than 5,000 dwt) 5
89012090 -- other (tankers, less than 5,000 dwt) 5
89013090 -- other (refrig vessels, less than 5,000 dwt) 5
89019090 --other (less than 5,000dwt) 5
89020010 --Fishing vessels;factory ships & shps,ves, nesoi 5
89020090 --Other 5
Annex B2: Export Quantitative Restrictions
-B12-
HS Number Description Phase-Out
Period *
10063000 Semi- milled or wholly milled rice Unbound
10064000 Broken rice Unbound
Annex B3 - Prohibited Imports
1. Cigarettes (except for those as personal effects in prescribed quantity).
2. Used consumer goods (except for transferred assets including goods to service the
personal requirements of individuals with diplomatic status of foreign countries,
international organizations and personal effects in prescribed quantity).
1. Cars with right hand drive (including those in unassembled form and those with steering
wheel modified prior to importation into Vietnam). As far as self-propelled specialpurpose
vehicles with right hand drive operating in narrow fields, such as cranes, trench
and canal digging machines, garbage trucks, road sweepers, road construction trucks,
airport passenger buses, and forklifts are concerned, importation is permitted and the
Minister of Trade shall approve when there is demand.
2. Used spare parts of automobiles of all kinds, motorbikes and motor tricycles - including
chassis mounted with used automobile engines of all kinds.
3. Used internal combustion engines with capacity of less than 30CV.
4. Motorcycles, scooters and motor tricycles with cylinder of 175 cc and higher. In case of
importation for defense, security and professional sports, to be subject to Prime
Minister�s approval.
5. Other goods that may be within the scope of an exception set forth in Chapter I or
Chapter VII of this Agreement.
Annex B4 - Export Prohibitions
1. Logs, sawn and peeled timber; firewood, charcoal from wood or firewood; wood and
forest products and semi-products which are subject to export prohibitions provided for
in Decision 65/1998/QD-TTg dated 24 March 1998 by Prime Minister of Vietnam.
-B13-
2. Other goods that may be within the scope of an exception set forth in Chapter I or
Chapter VII of this Agreement.
-C1-
ANNEX C
VIETNAM
Note:
U = Unbound
* Phase-out period in Annex C shall be calculated from the date of entry into force of this
Agreement
Annex C1- Imports Subject to State Trading and Phase-Out Schedule
HS Number Description Phase Out
Period
(yrs.)*
27101100 Aviation spirit U
27101200 White spirit (for producing paints) U
27101900 Other petroleum oils and oil preparations U
27102000 Diesel U
27103000 Mazut U
27104000 Light oils U
27105000 Medium oils U
27106000 Naptha U
27107000 Condensate U
27109000 Petroleum oils, other U
3102 Mineral or chemical fertilizers, nitrogenous 5
3103 Mineral or chemical fertilizers, phosphatic 5
3104 Mineral or chemical fertilizers, potassic 5
3105 Mineral or chemical fertilizers, other 5
3601 Propellant powders U
3602 Prepared explosives other than propellent powders U
3603 Safety fuses; detonating fuse; percussion caps etc U
3706 Motion-picture film, exposed and developed U
4901 Books, brochures & similar printed matter U
-C2-
4902 Newspapers, journals & periodicals U
4903 Children's picture, drawing or coloring books U
4907 Unused postage, check forms, banknotes, stock, etc U
4909 Printed or illust post cards, greeting cards, etc. U
4910 Calendars, calendar blocks of any kind, printed U
4911 Printed matter nesoi, incl print pictures & photos U
8442 Mach etc nesoi for typeset, making pr plates etc U
8443 Print mach incl ink-jet mach ancil t prnt pt nesoi U
8524 Records, tapes & other recorded sound media etc U
8525 Trans appar for radiotele etc; tv camera & rec U
8526 Radar apparatus, radio navig aid & remote cont app U
ex85291000 Only satellite aerials for broadcasting U
ex85299000 Only aerials for equipment in 8525 adn 8526 U
9704 Postage or revenue stamps, firstday covers U
Annex C2- Exports Subject to State Trading and Phase-Out Schedule
HS
Number
Description Phase-Out
Period *
10063000 Semi-milled or wholly-milled rice U
10064000 Broken rice U
27090010 Petroleum oils, crude U
27090090 Petroleum oils, other U
27112100 Natural gas U
27112900 Petroleum gases, other U
7102 Diamonds U
7103 Precious stones U
7104 Synthetic precious stones U
7105 Dust or powder of precious stones U
7106 Silver U
7108 Gold U
-C3-
-D1-
ANNEX D
VIETNAM
Annex D1- Phase-out Periods for Restrictions on Import
Trading Rights and Distribution Rights -
Agricultural Products
NOTE:
0* = No phase-out period
U = Unbound
* - For purposes of Annex D1, phase-out periods for Import Trading Rights shall begin on the
date on which joint ventures are first permitted under Article 2.7.D of Chapter I of this
Agreement.
** - For purposes of Annex D1, phase-out periods for Distribution Rights shall begin on the
date on which joint ventures are first permitted under Annex G, section IV (Distribution
Services) of this Agreement.
HS
Number
Description Import
Trading
Rights -
Phase-out
Period*
(yrs.)
Distribution
Rights -
Phase-out
Period**
(yrs.)
0102 Live bovine animals U U
0103 Live swine U U
0105 Live Poultry (not more than 185g) U U
0106 Other live animals U U
0201 Meat of bovine animals, fresh/chilled 5 5
0202 Meat of bovine animals, frozen 3 5
0203 Meat of Swine - frsh/chilled/frzn 3 5
0206 Edible offals bovines -frsh/chilled/fz 3 5
0207 Poultry meat & offals.- frsh/chilled/fz 5 5
0209 Unrendered pig fat, free of lean meat and poultry
meat...
3 5
0210 Meat and edible meat offal salted.... 3 5
-D2-
0401 Milk - fresh milk... 3 5
0402 Condensed Milk or Cream 5 5
0403 Buttermilk, yogurt, keohir and other fermented or
acidified milk
5 5
0404 Whey, concentrated or containing added sugar... 3 5
0805 Citrus Fruits: fresh or dried 5 5
1005 Corn 3 5
1006 Rice U U
1101 Wheat or meslin flour 5 U
1507 Soybean oil and its fractions.... 3 5
1508 Ground nut oil and its fractions.... 5 5
1511 Palm oil and its fractions.... 3 5
1513 Coconut (copra), palm kernel or babassu oil and
fractions .....
5 5
1601 Sausages and similar products, of meat, meat
offal or blood...
3 5
1602 Other prepared and preserved meat... 3 5
1701 Cane or beet sugar and chemically pure sucrose,
in solid form
6 U
2006 Vegetables, fruit, nuts, fruit and other parts of 5 5
-D3-
plants, pr/pr by sugar
2007 Jams, fruit jellies, marmalades, fruit or nut
puree...
3 5
2009 Fruit juices (including grape must) and vegetable
juices...
5 5
2101 Extracts, essences and concentrates, of coffee,
tea...
3 5
2203 Beer made from malt 5 U
2204 Wine or fresh grapes, including fortified wines;
grape must other than that of heading No. 2009
5 U
2205 Vermouth and other wine of fresh grapes
flavored with plants ......
5 U
2206 Other fermented beverages 5 U
2207 Undenatured ethyl alcohol > 80% 5 U
2208 Undenatured ethyl alcohol < 80% 5 U
2302 Brans, and other residues whether in the form of
pellets....
0* 5
2303 Residues of starch manufacture and similar
residues...
0* 3
2309 Preparations of a kind used in animal feeding 4 5
2401 Unmanufactured tobacco; tobacco refuse U U
2402 Cigars, cheroots, cigarillos and cigarettes U U
2403 Other manufactured tobacco and manufactured
tobacco substitutes
U U
-D4-
Annex D1- Phase-out Periods for Restrictions on
Import Trading Rights and Distribution Rights -
Industrial Products
Notes:
0= No phase-out period
U= Unbound
C= Subject to state trading, Annex C
G= Subject to services commitment in Annex G on audio-visual services
* - For purposes of Annex D1, phase-out periods for Import Trading Rights shall begin on the
date on which joint ventures are first permitted under Article 2.7.D of Chapter I of this
Agreement.
** - For purposes of Annex D1, phase-out periods for Distribution Rights shall begin on the
date on which joint ventures are first permitted under Annex G, section IV (Distribution
Services) of this Agreement.
HS
Number
Description Import
Trading
rights -
Phase-out
Period*
(yrs.)
Distribution
rights -
Phase-out
Period**
(yrs.)
2523 Portland cement, aluminous cement, slag cement etc 5 7
2709 Crude oil from petroleum and bituminous minerals 5 U
2710 Oil (not crude) from petrol & bitum mineral etc. 7 U
2711 Petroleum gases & other gaseous hydrocarbons 6 U
2802 Sulfur, sublimed or precipitated; collodial sulfur 3 5
2804 Hydrogen, rare gases and other nonmetals 2 5
2805 Alkali metals etc; rare-earth metals etc; mercury 2 5
2806 Hydrogen chloride; chlorosulfuric acid 5 5
2807 Sulfuric acid; oleum 5 5
2808 Nitric acid, sulfonitric acids 5 5
2809 Diphosphorus pentaoxide; phosphoric acid etc 3 5
2810 Oxides of boron; boric acids 3 5
2813 Sulfides of nonmetals; commercial phosp trisulfide 3 5
2814 Ammonia, anhydrous or in aqueous solution 3 5
-D5-
2815 Sodium hydrox; potass hydrox; sod or potass perox 3 5
2817 Zinc oxide and zinc peroxide 3 5
2818 Artfl corundum w/nt chem defnd alum oxid/hydroxide 3 5
2819 Chromium oxides and hydroxides 3 5
2820 Manganese oxides 3 5
2821 Iron oxides & hydroxides; earth colors nun 70% ir 3 5
2823 Titanium oxides 3 5
2824 Lead oxides; red lead and orange lead 3 0
2829 Chlorates etc; bromates etc; iodates etc. 3 0
2830 Sulfides; polysulfides 3 5
2833 Sulfates; alums; peroxosulfates (persulfates) 3 5
2834 Nitrites; nitrates 3 5
2835 Phosphinates, phosphonates, phosphates & polyphosp 3 5
2836 Carbonates; peroxocarbonates; comm amm carbonate 3 5
2840 Borates; peroxoborates 3 5
2843 Colloidal prec metal; prec metal comp & amalgrams 3 5
2847 Hydrogen peroxide, whether/not solidified w/ urea 3 5
2907 Phenols; phenol-alcohols 3 5
2909 Ethers, ether-alcohols, alcohol peroxides etc. 5 5
2910 Epoxides with a 3-memb ring & halog, sulfon etc 5 5
2912 Aldehydes, its cyclic polymers; paraformaldehyde 5 5
2914 Ketones & quinones & halogenatd, sulfonatd der etc 3 5
2915 Sat acyclic nonocarbox acid & anhyd, halogon etc 3 5
2916 Unsat acyclic & cyclic monocarbox acid & anhyd etc 3 5
2917 Polycarboxylic acids & anhyd etc, halog, sulf etc 3 5
2918 Carboxylic acid, added oxygen & anhy etc, hal etc 3 5
2935 Sulfonamides 3 5
2936 Provitamins and vitamins & derivatives & intermixs 3 U
2937 Hormones; derivatives & steriods used as hormones 3 U
2938 Glycosides, natural or synth & salts, ethers etc. 3 U
2939 Veg alkaloids, nat or synth & salts, ethers etc. 3 U
2940 Sugars, chem pure (exc sucrose, lactose, etc) 3 U
2941 Antibiotics 3 U
2942 Organic compounds nesoi 3 U
3003 Medicaments nesoi of mixtures, not dosage etc form 6 U
3004 Medicaments nesoi, mixed or not, in dosage etc fm 6 U
3006 Pharmaceutical goods in note 4 to chapter 30 6 U
-D6-
3102 Mineral or chemical fertilizers, nitrogenous 5 U
3103 Mineral or chemical fertilizers, phosphatic 5 U
3104 Mineral or chemical fertilizers, potassic 5 U
3105 Mineral or chemical fertilizers, other 5 U
3208 Paint & varnish from synth etc polymers nonaq, etc 3 3
3209 Paint & varnish from synth etc polymers aqueous md 3 3
3210 Paints & varnishes nesoi; watr pigmts for leather 3 3
3403 Lubricating preps, antirust & treating textiles etc 3 5
3601 Propellant powders C U
3602 Prepared explosives other than propellent powders C U
3603 Safety fuses; detonating fuse; percussion caps etc C U
3604 Fireworks, signalling flares, rain rockets etc. 0 U
3706 Motion-picture film, exposed and developed C G
3808 Insecticides, rodenticides; fungicides etc, retail 5 U
3812 Prepared rubber accelerators; com plasticizers etc 5 5
3819 Hydraulic brake fluids/liq for hydraulic trans etc 3 5
3901 Polymers of ethylene, in primary forms 0 4
3902 Polymers of propylene or other olefins, prim forms 0 4
3903 Polymers of styrene, in primary forms 0 4
3904 Polymers of vinyl chloride etc., in primary forms 0 4
3905 Polymers of vinyl acetate & oth vinyl polym, pr fm 0 4
3906 Acrylic polymers in primary forms 0 4
3907 Polyethers, expoxides & polyesters, primary forms 0 4
3908 Polyamides in primary forms 0 4
3909 Amino-resins, phenolics & polyurethanes, prim form 0 4
3910 Silicones, in primary forms 0 4
3911 Petro resins, polysulfides etc nesoi, primary form 0 4
3912 Cellulose and chemical deriv nesoi, primary forms 0 4
3913 Natural polymers and modified natural polymers 0 4
40111000 Tires of a kind used on motor cars 5 5
40112010 Tires with a width of 450 mm 5 5
40114000 Tires of a kind used on motorcycles 5 5
40131010 Inner tubes for tires of a width of 450 mm 2 3
40139020 Inner tubes of a kind used on motorcycles 2 3
4801 Newsprint, in rolls or sheets 5 7
4802 Paper, uncoat, for writing etc, rolls; hndmd paper 5 7
4804 Kraft paper & paperboard, uncoat nesoi, rolls etc 5 7
-D7-
4807 Composite paper & paperboard, no surf coat, rl etc 5 7
4810 Paper & paperboard, coated with kaolin etc, rl etc 5 7
4820 Registers, notebooks, binders, bus forms etc, papr 0 7
4823 Paper, paperboard, cellul wad to size & arts nesoi 5 7
4901 Books, brochures & similar printed matter C U
4902 Newspapers, journals & periodicals C U
4903 Children's picture, drawing or coloring books C U
4907 Unused postage, check forms, banknotes, stock, etc C U
4909 Printed or illust post cards, greeting cards, etc. C U
4910 Calendars, calendar blocks of any kind, printed C U
4911 Printed matter nesoi, incl print pictures & photos C U
5007 Woven fabrics of silk or silk waste 5 5
5111 Woven fabrics of carded wool or fine animal hair 5 5
5112 Woven fabrics of combed wool or fine animal hair 5 5
5208 Woven cotton fabrics, nu 85% cot, wt nov 200 g/m2 5 5
5209 Woven cotton fabrics, nu 85% cot, wt ov 200 g/m2 5 5
5210 Woven cotton fabrics, un85%cot, mmfmix, nov200g/m2 5 5
5211 Woven cotton fabrics, un85%cot, mmfmix, ov200g/m2 5 5
5212 Woven cotton fabrics nesoi 5 5
6001 Pile fabrics, knitted or crocheted 5 5
6002 Knitted or crocheted fabrics, nesoi 5 5
6810 Articles of cement, concrete or artificial stone 5 5
6908 Glazed ceramic flags & paving, hearth tiles, etc 5 5
6910 Ceramic sinks, washbasins, water closet bowls etc 5 5
7004 Drawn & blown glass, in sheets etc 5 7
7005 Float glass & surf ground or polished sheets etc 5 7
7016 Glass paving blocks etc; gl cubes, lead window etc 5 7
7208 Fl-rl iron & na steel nun600mm wd hot-rl, not clad 5 5
7209 Fl-rl iron & na steel nun600mm wd cold-rl, no clad 5 5
7210 Fl-rl iron & na steel nun600mm wd, clad etc 5 5
7211 Fl-rl iron & na steel un 600mm wd, not clad etc 5 5
7212 Fl-rl iron & na steel un 600mm wd, clad etc 5 5
7213 Bars & rods, iron & na steel, h-r irreg coils 5 5
7214 Bars & rods, iron & na steel nesoi, h-r etc 5 5
7215 Bars & rods, iron & na steel nesoi 5 5
7216 Angles, shapes & sections of iron & nonalloy steel 5 5
7217 Wire of iron & nonalloy steel 5 5
-D8-
7303 Tubes, pipes and hollow profiles of cast iron 5 5
7304 Tubes, pipes etc, seamless, iron nesoi & steel 5 5
7305 Tubes & pipes nesoi, ext dia ov406-4mm, ir & steel 5 5
7306 Tubes, pipes & hollow profiles nesoi, iron & steel 5 5
7604 Aluminum bars, rods and profiles 3 4
7614 Stranded wire, cables etc, aluminum, no elec insul 3 4
8407 Spark-ignition recip or rotary int comb piston eng 4 5
8408 Compression-ignition internal comb piston engines 4 5
8409 Parts for engines of heading 8407 or 8408 3 5
8414 Air or vac pumps, compr & fans; hoods & fans; pts 3 5
8415 Air conditioning machines (temp & hum change), pts 3 5
8418 Refrigerators, freezers etc; heat pumps nesoi, pts 3 5
8420 Calendering machines etc nesoi & cylinders, parts 4 5
8421 Centrifuges; filter etc mach for liq or gases; pts 0 2
84248100 Mech appl to disperse liq etc; sand etc blast mach 0 2
8426 Ship's derricks; cranes; mobile lifting frames etc 0 5
8427 Fork-lift trucks; oth works trucks with lifts etc. 0 5
8428 Lifting, handling, loading & unload machines nesoi 0 5
8429 Self-propelled bulldozers, graders, scrapers etc 4 5
8430 Mach nesoi, moving, grad etc; pile-dr; snoplow etc 5 5
8431 Parts for machinery of headings 8425 to 8430 5 5
8432 Agricult etc mach for soil etc; lawn rollers; pts 5 7
8433 Harvest etc machines, cleaning eggs etc nesoi, pts 5 7
8435 Presses etc for wine, cider, fruit juice etc, pts 4 7
8436 Agri etc & poultry etc equip, inc incubators, pts 5 7
8437 Mach for cleaning seed etc & work cereal etc, pts 5 7
8438 Mach nesoi, ind prep of food or drink etc, parts 5 7
8442 Mach etc nesoi for typeset, making pr plates etc C U
8443 Print mach incl ink-jet mach ancil t prnt pt nesoi C U
8444 Machines extruding, drawing etc manmade textiles 3 5
8445 Machines for preparing textile fibers & yarns 3 5
8446 Weaving machines (looms) 3 5
8447 Machines, knitting, stitch-bond, lace, net etc. 3 5
8448 Auxiliary machinery for use with textile machines 3 5
8451 Machinery (not laundry) for cleaning, drying etc 3 5
8452 Sewing machines (not book-sew), cover etc; needles 3 5
8453 Machinery for work leather etc & footwear etc, pts 3 5
-D9-
8455 Metal-rolling mills and rolls therefor; parts 5 5
8458 Lathes for removing metal, incl turning centers 5 5
8459 Machine tools for drilling, boring, milling etc 5 5
8460 Machine tools for honing or finishing metal etc 5 5
8461 Machine tools for shaping, slotting, gear cut etc 5 5
8462 Machine tools for forging, bending, stamping etc 5 5
8466 Parts etc for machine tools of head 8456 to 8465 5 5
8468 Machines, solder etc; gas surf temper machines, pt 5 5
8469 Typewriters & word processing machines 5 7
8470 Calculating & account machines, cash registers etc 5 7
8471 Automatic data process machines; magn reader etc 3 7
8472 Office machines nesoi (hectograph, addressing etc) 5 5
8473 Parts etc for typewriters & other office machines 3 7
8476 Automatic goods-vending machines, parts 5 5
8477 Machinery for working rubber & plast etc nesoi, pt 4 5
8501 Electric motors and generators (no sets) 5 5
8502 Electric generating sets and rotary converters 5 5
8504 Elec trans, static conv & induct, adp pwr supp, pt 5 7
8506 Primary cells & batteries, parts 4 7
8507 Electric storage batteries, incl separators, parts 5 7
8516 Elec water, space & soil heaters; hair etc dry, pt 5 5
8517 Electric apparatus for line telephony etc, parts 0 5
8519 Turntables, record & cassette players etc. 5 7
8520 Magnetic tape & other sound recorders 5 7
8521 Video recrdng/reproduc appar wheth/nt video tuner 5 7
8524 Records, tapes & other recorded sound media etc C U
8525 Trans appar for radiotele etc; tv camera & rec C U
8526 Radar apparatus, radio navig aid & remote cont app C U
8527 Reception apparatus for radiotelephony etc 0 7
8528 Tv recvrs, incl video monitors & projectors 5 7
8529 Parts for television, radio and radar apparatus U U
8535 Electrical apparatus for switching etc, ov 1000 v 5 5
8536 Electrical apparatus for switching etc, nov 1000 v 3 5
8537 Boards, panels etc elec switch and n/c appar etc. 5 5
8540 Thermionic, cold cathode or photocathode tubes, pt 3 3
8542 Electronic integrated circuits & microassembl, pts 0 5
8544 Insulated wire, cable etc; opt sheath fib cables 5 5
-D10-
8701 Tractors (other than works trucks of heading 8709) 6 7
8702 Motor vehicle f trnspt >ten persons includ driver 6 7
8703 Motor cars & vehicles for transporting persons 6 7
8704 Motor vehicles for transport of goods 6 7
8705 Special purpose motor vehicles nesoi 6 7
8706 Chas w eng f trac, mtr veh f pass/gd & special pur 6 7
8707 Bodies (including cabs), for specif motor vehicles 3 7
8708 Parts & access for motor vehicles (head 8701-8705) 5 7
8709 Works trucks, self-prop, no lift; stat tractrs; pt 5 7
8711 Motorcycles (incl mopeds) & cycles with aux motor 5 7
8714 Parts & access for cycles & invalid carriages 5 7
8716 Trailers etc; other vehicles, not mech propeld, pt 5 5
9001 Opt fibers & bund etc; pol sheets; unmoun opt elem 5 5
9704 Postage or revenue stamps, firstday covers C U
Annex D2- Phase-Out Periods for Restrictions on Export Trading Rights
Notes:
U=Unbound
*For purposes of Annex D2, phase-out periods for Export Trading Rights shall begin on the
date upon which joint ventures are first permitted under Chapter I, Article 2, paragraph 7(D) of
this Agreement
HS Heading Description Phase-Out
Period
(yrs.)*
0901 Coffee; coffee husks etc; substitutes with coffee 7
1006 Rice U
2502 Unroasted iron pyrites 5
2509 Chalk 5
2511 Natural barium sulfate; nat barium carbonate nesoi 5
2519 Magnesite; fused magnesia; d-b magn; m oxide nesoi 5
2524 Asbestos 5
2525 Mica, including splittings; mica waste 5
2526 Natural steatite, roughly trimmed etc; talc 5
2527 Natural cryolite; natural chiolite 5
2528 Natural borates & conc; natural boric acid nov 85% 5
2529 Feldspar; leucite; nepheline, n syenite; fluorspar 5
2530 Mineral substances nesoi 5
-D11-
2601 Iron ores & concentrates, including roast pyrites 5
2602 Manganese ores a concntrts inc ferr mangn iron ore 5
2603 Copper ores and concentrates 5
2604 Nickel ores and concentrates 5
2605 Cobalt ores and concentrates 5
2606 Aluminum ores and concentrates 5
2607 Lead ores and concentrates 5
2608 Zinc ores and concentrates 5
2609 Tin ores and concentrates. 5
2610 Chromium ores and concentrates. 5
2611 Tungsten ores and concentrates. 5
2612 Uranium or thorium ores and concentrates. 5
2613 Molybdenium ores and concentrates. 5
2614 Titanium ores and concentrates. 5
2615 Niobium, tantalum, vanadium or zirconium ores and
concentrates.
5
2616 Precius metal ores and concentrates. 7
2617 Other ores and concentrates. 5
2618 Granulated slag (slag sand) from the manufacture of iron or
steel.
3
2701 Coal, briquettes, ovoids and similar solid fuels manufactured
from coal.
3
2707 Oils and other products of the distillation of high temperature
coal tars; similar products in which the weight of the aromatic
constituents exceeds that of the non-aromatic constituents.
5
2708 Pitch and pitch coke, obtained from coal or from other mineral
tars.
5
2709 Petroleum oils and oils obtained from bituminous minerals
crude.
U
2711 Petroleum gases and other gaseous hydrocarbons. U
-D12-
2712 Petroleum jelly, paraffin wax, micro-crystalline petroleum wax,
slack wax, ozokerite, lignite wax, peat wax, other mineral
waxes and similar products obtained by synthesis or by other
processes.
3
2713 Petroleum coke, petroleum bitumen and other residues of
petroleum oils or of oils obtained from bituminous minerals.
5
2714 Bitumen and asphalt, natural; bituminous or oil slade and tar
sands; asphaltites and asphaltic rocks.
5
2715 Bituminous mixtures based on natural asphalt, on natural
bitumen, on petroleum bitumen, on mineral tar or mineral tar
pitch (for example, bituminous mastics, cut-backs).
5
2716 Electrical energy 7
4001 Natural rubber 7
4002 Synthetic rubber and factive derived from oils 7
7102 Diamonds, whether or not worked, but not mounted or set. U
7103 Precious stones (other than diamonds) and semi-precious
stone, 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.
U
7104 Synthetic and reconstructed precious or semi-precious stones,
whether or not worked or graded but not strung, mounted or
set; ungraded synthetic or reconstructed precious or semiprecious
stones, temporarily strung for convenience of
transport.
U
7105 Dust and powder of natural or synthetic precious or semiprecious
stones.
U
7106 Silver (including silver plated with gold or platinum),
unwrought or in semi-manufactured forms.
U
7108 Gold (including gold plated with platinum) unwrought or in
semi-manufactured forms, or in powder form.
U
-E1-
ANNEX E - TARIFFS
VIETNAM
Tariffs on Agricultural Products
Notes:
* - Tariffs marked with an (*) are to be implemented 6 years from the date of entry into force
of this Agreement.
HS
Number
Description Current
Tariffs
Tariffs to be
Implemented
by three
years after
the date of
entry into
force of this
Agreement
0204 Meat of sheeps or goats, chilled or
frozen
0204.10.00 - Carcasses and half-carcasses of lamb,
fresh or chilled
20% 10%
- Other meat of sheep, fresh or chilled
0204.21.00 - Carcasses and half carcasses 20% 10%
0204.22.00 - Other cuts with bone in 20% 10%
0204.23.00 - Boneless 20% 10%
0204.30.00 - Carcasses and half carcasses of lamb,
frozen
20% 10%
- Other meat of sheep, frozen:
0204.41.00 - Carcasses and half carcasses 20% 10%
0204.42.00 - Other cuts with bone in 20% 10%
0204.43.00 - Boneless 20% 10%
0204.50.00 - Meat of goats 20% 10%
0206 Edible offal of bovine animals, swine,
sheep, goats, horses, asses, mules or
hinnies, fresh, chilled or frozen
0206.10.00 - Of bovine animals, fresh or chilled 20% 15%
- Of bovine animals, frozen
0206.21.00 - Tongues 20% 15%
-E2-
0206.22.00 - Livers 20% 15%
0206.29.00 - Other 20% 15%
0206.30.00 - Of swine, fresh or chilled 20% 15%
- Of swine, frozen:
0206.41.00 - Livers 20% 15%
0206.49.00 - Other 20% 15%
0206.80.00 - Other, fresh or chilled 20% 10%
0206.90.00 - Other, frozen 20% 10%
0207 Meat and edible offal, of the poultry
of heading No. 01.05, fresh, chilled
or frozen
- Of duck, geese or guinea fowls:
0207.34.00 - Fatty livers, fresh or chilled 20% 15%
0207.35.00 - Other, fresh or chilled 20% 15%
0207.36.00 - Other , frozen 20% 15%
0208 Other meat and edible meat offal,
fresh, chilled or frozen
0208.10.00 - Of rabbits or hares 20% 10%
0208.20.00 - Frog� legs 20% 10%
0208.90.00 - Other 20% 10%
0406 Cheese and curd
0406.10 - Fresh cheese (including whey cheese),
not fermented, and curd
0406.10.10 - Fresh cheese (including whey cheese),
not fermented
30% 10%
0406.10.20 - Curd 15% 10%
0406.20.00 - Grated or powdered cheese, of all
kinds
30% 10%
0406.30.00 - Processed cheese, not grated or
powdered
30% 10%
0406.40.00 - Blue-veined cheese 30% 10%
0406.90.00 - Other 30% 10%
0409.00.00 Natural Honey 20% 10%
0410.00 Edible products of animal origin, not
elsewhere specified or included
-E3-
0410.00.10 - Swallow�s net 20% 5%
0410.00.90 - Other 20% 5%
0701 Potatoes, fresh or chilled
0701.90.00 - Other 30% 20%
0702.00.00 Tomatoes, fresh or chilled 30% 20%
0703 Onions, shallots, garlic, leeks, and
alliaceous vegetables, fresh or chilled
0703.10.00 - Onions and shallots 30% 20%
0703.20.00 - Garlic 30% 20%
0703.90.00 - Leeks and other alliaceous vegetables 30% 20%
0704 Cabbages, cauliflowers, kohlrabi,
kale and similar edible brassicas,
fresh or chilled
0704.10.00 - Cauliflowers and headed broccoli 30% 20%
0704.20.00 - Brussels sprouts 30% 20%
0704.90.00 - Other 30% 20%
0705 Lettuce (lactuca sativa) and chicory
(cichorium spp.), fresh or chilled
- Lettuce:
0705.11.00 - Cabbage lettuce (headed lettuce) 30% 20%
0705.19.00 - Other 30% 20%
- Chicory
0705.21.00 - Witloof chicory (cichorium intybus
var. foliosum)
30% 20%
0705.29.00 - Other 30% 20%
0706 Carrots, turnip, salad beetroot,
salsify, celeriac, radishes and similar
edible roots, fresh or chilled
0706.10.00 - Carrots and turnips 30% 20%
0706.90.00 - Other 30% 20%
0707.00.00 Cucumbers and gherkins, fresh or 30% 20%
-E4-
chilled
0709 Other vegetables, fresh or chilled
0709.10.00 - Globe artichokes 30% 15%
0709.20.00 - Asparagus 30% 15%
0709.30.00 - Aubergines (egg plants) 30% 20%
0709.40.00 - Celery other than celeriac 30% 15%
- Mushrooms and truffles
0709.51.00 - Mushrooms 30% 20%
0709.52.00 - Truffles 30% 20%
0709.60 - Fruit of the genus Capsicum or of the
genus Pimenta
0709.60.10 - Chilies 30% 20%
0709.60.90 - Other 30% 20%
0709.70.00 - Spinach, New Zealand spinach and
orache spinach (garden spinach)
30% 20%
0709.90.00 - Other 30% 20%
0710 Vegetables (uncooked or cooked by
steaming or boiling in water), frozen
0710.10.00 - Potatoes 30% 20%
0710.30.00 - Spinach, New Zealand spinach and
orange spinach (garden spinach)
30% 15%
0711 Vegetables provisionally prepared (
for example, by sulphur dioxide gas,
in brine, in sulphur water or in other
preservative solutions), but
unsuitable in that state for immediate
consumption
0711.20.00 - Olives 30% 15%
0711.30.00 - Capers 30% 15%
0806 Grapes: fresh or dried
0806.10.00 - Fresh 40% 25%
0806.20.00 - Dried 40% 25%
0808 Apples, pears and quinces: fresh
0808.10.00 - Apples 40% 25%
0808.20.00 - Pears and quinces 40% 25%
-E5-
0810 Other fruit, fresh
0810.10.00 - Strawberries 40% 15%
0810.20.00 - Raspberries, blackberries, mulberries
and loganberries
40% 15%
0810.30.00 - Black, white or red currants and
gooseberries
40% 15%
0810.40.00 - Cranberries, bilberries and other fruits
of the genus Vaccinium
40% 15%
0810.50.00 - Kiwifruit 40% 15%
1002.00.00 Rye 3% 3%
1003.00.00 Barley 3% 3%
1004.00.00 Oats 3% 3%
1007.00.00 Grain sorghum 10% 5%
1008 Buckwheat, millet and canary seed;
other cereals
1008.10.00 - Buckwheat 10% 5%
1008.20.00 - Millet 10% 5%
1008.90.00 - Other cereals 10% 5%
1101 Wheat or meslin flour
1101.00.10 - Wheat flour 20% 20%
1102 Cereal flours other than of wheat or
meslin
1102.10.00 - Rye flour 20% 15%
1102.20.00 - Maize (corn) flour 20% 15%
1102.90.00 - Other 20% 15%
1103 Cereal groats, meal and pellets
- Groats and meal:
1103.13.00 � Of maize (corn) 10% 10%
1104 Cereal grains otherwise worked(for
-E6-
example, hulled, rolled, flaked,
pearled, sliced or kibbed), except rice
of heading No. 10.06; germ of
cereals, whole, rolled, flaked or
ground
1104.23 - Cereal grains otherwise worked (for
example, hulled, rolled, flaked, pearled,
sliced or kibbed)
1104.23.00 � Of maize (corn) 10% 10%
1201.00.00 Soya beans, whether or not broken 10% 5%
1202 Ground nuts, not roasted or
otherwise cooked, whether or not
shelled or broken
1202.10.00 - In shell 10% 10%
1202.20.00 - Shelled, whether or not broken 10% 10%
1203.00.00 Copra (coconut) 10% 10%
1206.00.00 Sunflower seeds, whether or not
broken
30% 10%
1207 Other oil seeds and oleaginous fruits,
whether or not broken
1207.20.00 - Cotton seeds 10% 5%
1507 Soya-bean oil and its fractions,
whether or not refined, but not
chemically modified
1507.90 - Other:
1507.90.10 - Refined 40% 30%
1508 Ground-nut oil and its fractions,
whether or not refined, but not
chemically modified
1508.90 - Other:
1508.90.10 - Refined 40% 30%
-E7-
1509 Olive oil and its fractions, whether or
not refined, but not chemically
modified
1509.10.00 - Virgin 5% 5%
1509.90 - Other:
1509.90.10 - Refined 40% 30%
1510 Other oils and their fractions,
obtained solely from olives, whether
or not refined, but not chemically
modified, including blends of these
oils or fractions with oils or fractions
of heading No. 1519
1510.00.10 - Crude oils 5% 5%
- Other:
1510.00.91 - Refined 40% 30%
1511 Palm oil and its fractions, whether or
not refined, but not chemically
modified
1511.10 - Crude oil
1511.10.10 - Palm oil 5% 5%
1511.10.90 - Other 5% 5%
1511.90 - Other:
1511.90.90 - Other 40% 30%
1512 Sunflower-seed, safflower or cottonseed
oil and fractions thereof,
whether or not refined but not
chemically modified
- Sunflower-seed or safflower oil and
fractions thereof:
1512.11.00 - Crude oil 5% 5%
1512.19 - Other
1512.19.10 -Refined: 40% 30%
-E8-
1513 Coconut (copra), palm kernel or
babassu oil and fractions thereof,
whether or not refined but not
chemically modified
- Coconut (copra) oil and its fractions:
1513.19 � Other:
1513.19.10 - Refined 40% 30%
1514 Rape, colza or mustard oil and
fractions thereof, whether or not
refined, but not chemically modified
1514.10.00 - Crude oil 5% 5%
1514.90 - Other:
1514.90.10 - Refined 40% 30%
1515 Other fixed vegetable fats and oils
(including jojoba oil) and their
fractions, whether or not refined, but
not chemically modified
1515.90 - Other:
1515.90.99 - Other 40% 30%
1516 Animal or vegetable fats and oils and
their fractions, partly or wholly
hydrogenated, inter-esterified, reesterified
or elaidinised, whether or
not refined, but not further prepared
1516.10.00 - Animal fats and oils and their fractions 40% 30%
1516.20.00 - Vegetable fats and oils and their
fractions
40% 30%
1517 Margarine; edible mistures or
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
1517.10.00 - Margarine, excluding liquid margarine 40% 30%
-E9-
1601 Sausages and similar products, of
meat, meat offal or blood; food
preparations based on these products
50% 40%*
1602 Other prepared and preserved meat,
meat offal or blood
1602.10.00 - Homogenized preparations 50% 40%*
1602.20.00 - Of liver of any animal 50% 40%*
- Of poultry of heading No. 0105:
1602-31.00 - Of turkeys 50% 40%*
1602.32.00 - Of fowls of the species Gallus
domesticus
50% 40%*
1602.39.00 - Other 50% 40%*
- Of swine:
1602.41.00 - Hams and cuts thereof 50% 40%*
1602.42.00 - Shoulders and cuts thereof 50% 40%*
1602.49.00 - Other, including mixtures 50% 40%*
1602.50.00 - Of bovine animals 50% 40%*
1602.90.00 - Other , including preparations of blood
of any animal
50% 40%*
1603.00.00 Extracts and juices of meat, fish or
crustaceans, molluscs or other
aquatic invertebrates
50% 30%
1604 Prepared or preserved fish; caviar
and caviar substitutes prepared from
fish eggs
- Fish, whole or in pieces, but not
minced:
1604.11.00 - Salmon 50% 40%
1604.12.00 - Herrings 50% 40%
1604.13.00 - Sardines, sardinella and brisling or
sprats
50% 40%
-E10-
1604.14.00 - Tunas, skipjack and bonito (Sarda
spp.)
50% 40%
1604.15.00 - Mackerel 50% 40%
1604.16.00 - Anchovies 50% 40%
1604.19.00 - Other 50% 40%
1604.20.00 - Other prepared or preserved fish 50% 40%
1604.30.00 - Caviar and caviar substitutes 50% 40%
1605 Crustaceans, molluscs and other
aquatic invertebrates, prepared or
preserved
1605.10.00 - Crab 50% 40%
1605.20.00 - Shrimps and prawns 50% 40%
1605.30.00 - Lobster 50% 40%
1605.40.00 - Other crustaceans 50% 40%
1605.90.00 - Other 50% 40%
1806 Chocolate and other food
preparations containing cocoa
1806.10.00 - Cocoa powder, containing added
sugar or other sweetening matter
30% 20%
1806.20.00 - Other preparations in blocks or slabs
weighing more than 2 kg or in liquid,
paste, powder, granular or other bulk
form in containers or immediate
packing, of a content exceeding 2 kg
30% 20%
- Other, in blocks, slabs or bars
1902 Pasta, whether or not cooked or
stuffed (with meat or other
substances or otherwise prepared,
such as spaghetti, macaroni, noodles,
lasagne, gnocchi, ravioli, cannelloni;
couscous, whether or not prepared
- Uncooked pasta, not stuffed or
otherwise prepared:
1902.11.00 - Containing eggs 50% 40%
-E11-
1902.19.00 - Other 50% 40%
1902.20.00 - Stuffed pasta, whether or not cooked
or otherwise prepared
50% 40%
1902.30.00 - Other pasta 50% 40%
1902.40.00 - Couscous 50% 40%
1903.00.00 Tapioca and substitutes therefor
prepared from starch, in the form of
flakes, grains, pearls, siftings or in
similar form
50% 40%
2001 Vegetables, fruit, nuts and other
edible parts of plants, prepared or
preserved by vinegar or acetic acid
2001.10.00 - Cucumbers and gherkins 50% 40%
2001.20.00 - Onions 50% 40%
2001.90.00 - Other 50% 40%
2002 Tomatoes prepared or preserved
otherwise than by vinegar or acetic
acid
2002.10.00 - Tomatoes, whole or in pieces 50% 40%
2002.90 - Other:
2002.90.10 - Tomato paste 50% 40%
2002.90.90 - Other 50% 40%
2003 Mushroom and truffles, prepared or
preserved otherwise than by vinegar
or acetic acid
2003.10.00 - Mushrooms 50% 40%
2003.20.00 - Truffles 50% 40%
2004 Other vegetables, prepared or
preserved otherwise than by vinegar
or acetic acid, frozen other than
-E12-
products of heading No. 2006
2004.10.00 - Potatoes 50% 40%
2004.90.00 - Other vegetables and mixtures of
vegetables
50% 40%
2005 Other vegetables prepared or
preserved otherwise than by vinegar
or acetic acid, not frozen, other than
products of heading No. 20.06
2005.10.00 - Homogenized vegetables 50% 40%
2006 Vegetables, fruit, nuts, fruit-peel and
other parts of plants, preserved by
sugar (drained, glace or crystallised)
2006.00.10 - Fruits or nuts 50% 40%
2006.00.90 - Other 50% 40%
2007 Jams, fruit jellies, marmalades, fruit
or nut puree and fruit or nut pastes,
being cooked preparations, whether
or not containing added sugar or
other sweetening matter
2007.10.00 - Homogenized preparation 50% 40%
- Other:
2007.91.00 - Citrus fruit 50% 40%
2007.99.00 - Other 50% 40%
2008 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 nut:
2008.11.10 - Oil-roasted and the like 50% 40%
-E13-
2008.11.20 - Coated with sugar 50% 40%
2008.11.90 - Other 50% 40%
2008.19 - Other, including mixtures
2008.19.10 - Prepared cashew 50% 40%
2008.19.90 - Other 50% 40%
2008.20.00 - Pineapples 50% 40%
2008.30.00 - Citrus fruit 50% 40%
2008.40.00 - Pears 50% 40%
2008.50.00 - Apricots 50% 40%
2008.60.00 - Cherries 50% 40%
2008.70.00 - Raspberries 50% 40%
2008.80.00 - Strawberries 50% 40%
- Other, including mixtures other than
those of subheading No. 2008.19:
2008.91.00 - Palm hearts 50% 40%
2008.92.00 - Mixtures 50% 40%
2008.99.00 - Other 50% 40%
2009 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:
2009.11.00 - Frozen 50% 40%
2009.19.00 - Other 50% 40%
2009.20.00 - Grapefruit juice 50% 40%
2009.30.00 - Juice of any other single citrus fruit 50% 40%
2009.40.00 - Pineapple juice 50% 40%
2009.50.00 - Tomatoes juice 50% 40%
2009.60.00 - Grape juice (including grape must) 50% 40%
2009.70.00 - Apple juice 50% 40%
2009.80.00 - Juice of any other fruit or vegetable 50% 40%
-E14-
2009.90.00 - Mixtures of juices 50% 40%
2201 Waters, including natural or artificial
mineral waters and aerated waters,
not containing added sugar or other
sweetening matter nor flavoured; ice
and snow
2201.90.00 - Other 50% 40%
2202 Waters, including mineral waters
and aerated water containing added
sugar or other sweetening matter or
flavoured, and other non-alcoholic
beverages, not including fruit or
vegetable juices of heading No. 2009
2202.10 - Waters, including mineral waters and
aerates waters, containing added sugar
or other sweetening matter or
flavoured:
2202.10.10 - Beverages, flavoved with fruit juices
or essences (orangeade, lemonade,
strawberrade...)
50% 40%
2202.10.20 - Cola waters and the like 50% 40%
2202.10.90 - Other 50% 40%
2202.90.00 - Other 50% 40%
2203.00.00 Beer made from malt 100% 80%
2207 Undenatured ethyl alcohol of an
alcoholic strength by volume of 80%
vol or higher; ethyl alcohol or other
spirits, denatured, of any strength
2207.10.00 - Undenatured ethyl alcohol of an
alcoholic strength by volume of 80%
vol or higher
50% 40%
2207.20 - Ethyl alcohol or other spirits,
denatured, of any strength:
-E15-
2207.20.90 - Other 50% 40%
2209.00.00 Vinegar and substitutes for vinegar
obtained from acetic acid
50% 20%
2304.00.00 Oil-cake and other solid residues,
whether or not ground or in the form
of pellets, resulting from the
extraction of soya-bean oil.
10% 10%
2309 Preparations of a kind used in animal
feeding
2309.10.00 - Dog or cat food, put up for retail sale 10% 10%
2309.90 - Other:
2309.90.10 - Shrimp food 10% 10%
Tariffs on Industrial Products - Vietnam
HS Number Product Description Current
Tariffs
(ad valorem)
Tariffs to be
Implemented
three years
after the
date of entry
into force of
this
Agreement
(ad valorem)
33030000 Perfumes and toilet waters 50 30
3304 Beauty or make-up preparations and
preparations for care of the skin (other than
medicaments), including sunscreen or suntan
preparations; manicure or pedicure
preparations
33043000 - Manicure or pedicure preparations 50 30
- Other:
33049900 - Other 50 30
-E16-
3305 Preparations for use on the hair
33051000 - Shampoos 50 40
33053000 - Hair lacquers 50 30
330590 - Other:
33059010 - Hair dyes 50 30
33059090 - Other 50 30
3401 Soap; organic surface-active products and
preparations for use as soap, in the form of
bars, cakes, molded pieces or shapes, whether
or not containing soap; paper, wadding, felt,
and nonwovens, impregnated, coated or
covered with soap or detergent
34012000 -Soap in other form (soap noodles only) 50 30
3402 Organic surface-active agents (other than
soap); surface-active preparations, washing
preparations (including auxiliary washing
preparations) and cleaning preparations,
whether or not containing soap, other than
those of heading No. 34.01
340290 - Other:
34029090 - Other (surfactant for hair care only) 20 10
3701 Photographic plates and film in the flat,
sensitized, unexposed, of any materials other
than paper, paperboard or textiles; instant
print film in the flat, sensitized, unexposed,
whether or not in packs
37013000 -Other plated and film, with any side exceeding
255 mm
15 10
3702 Photographic film in rolls, sensitized,
unexposed; of any materials other than paper,
paperboard or textiles, instant print film
inrolls, sensitized, unexposed
37023100 - for colour photography (polychrome) 30 20
- Other film, for color photography (polychrome)
37025400 - Of a width exceeding 16 mm but not exceeding
35 mm and of a length not exceeding 30 m, excl.
30 20
-E17-
for slides
37025500 - Of a width exceeding 16 mm but not exceeding
35 mm and of a length exceeding 30 m
30 20
37025600 - Of a width exceeding 35mm 30 20
3703 Photographic paper, paperboard and textiles,
sensitized, unexposed
37032000 -Other, for colour photography (polychrome) 30 20
4804 Uncoated kraft paper and paperboard, in rolls
or sheets, other than that of heading No. 48.02
or 48.03
- Kraftliner:
48041100 � Unbleached 30 20
6406 Parts of footwear; removable in-soles, heel
cushions and similar articles; gaiters, leggings
and similar articles, and parts therof
64069900 � Of other materials 20 10
7323 Table, kitchen or other household 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
73239900 --Other 30 20
8408 Compression-ignition internal combustion
piston engines (diesel, semi-diesel)
840820 - Engines of a kind used for propulsion of vehicles
of Chapter 87
� For other vehicles of Chapter 87
84082021 � For motor vehicles of sub-heading No. 8711,
8703
40 30
8415 Air conditioning machines, comprising a
motor-driven fan and elements for changing
the temperature and humidity, including those
machines in which the humidity can not be
separately regulated
841583 - Not incorporating a refrigerating unit
84158310 - Of a capacity not excceding 90,000BTU/h 50 30
84158320 -Of a capacity exceeding 90,000BTU/h but not
exceeding 180,000 BTU/h
40 30
-E18-
84158390 -Other 30 20
841590 -Parts:
84159019 - Other 30 20
8418 Refrigerators, freezers and other refrigerating
of freezing equipment, electric or other; heat
pumps other than air conditioning machines
of heading No. 84.15
841830 -Freezers if the chest type, not exceeding 800 l
capacity :
84183010 - With capacity not exceeding 200 1 50 30
84183090 - With capacity exceeding 200 1 but not
exceeding 800 1
30 20
841840 -Freezers of the upright type, not exceeding 900 l
capacity:
84184010 - With capacity not exceeding 200 1 50 40
84184090 - With capacity exceeding 200 1 but not
exceeding 900 1
30 20
841850 -Other refrigerating or freezing chests, cabinets,
display counters, show cases and similar
refrigerating or freezing furniture:
84185010 - With capacity not exceeding 200 1 50 40
84185090 - With capacity exceeding 200 1 30 20
8419 Machinery, plant or laboratory equipment,
whether or not electrically heated, 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, vaporising, condensing or
cooling, other than machinery or plant of a
kind used for domestic purposes; instanteous
or storage water heaters, non-electric
- Other machinery, plant and equipment:
84198100 -For making hot drinks or for cooking or heating
food
30 20
8421 Centrifuges, including centrifugal dryers;
filtering or purifying machinery and
apparatus for liquids or gases.
842121 -For filtering or purifying water
-E19-
84212110 -Electrical operated with filtering capacity not
exceeding 500 1/h
20 15
8450 Household or laundry-type washing machines,
including machines which both wash and dry
- Machines, each of a dry linen capacity not
exceeding 10 kg:
84501100 -Fully-automatic machines 50 40
84501200 -Other machines, with built-in centrifugal drier 50 40
84501900 -Other 50 40
84502000 -Machines, each of a dry linen capacity exceeding
10 kg:
50 40
84509000 -Parts 50 40
8481 Taps, cocks, valves and similar appliances for
pipes, boiler shells, tanks, vats or the like,
including pressure-reducing valves and
thermostatically controlled valves
848180 -Other appliances:
84818060 -Valves for water pipe 20 15
8508 Electro-mechanical tools for working in the
hand, with self-contained electric motor.
85081000 -Drills of all kinds 10 5
8516 Electric instantaneous or storage water heaters
and immersion heaters; electric space heating
apparatus and soil heating apparatus; electrothermic
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 purposes; electric heating
resistors, other than those of heading No.
8545
851660 -Other ovens; cookers, cooking plates, boiling
rings, grillers and roasters
85166020 -Boilers including boiling rings 40 30
85166030 -Ovens cooker 40 30
85166090 -Other 40 30
8523 Prepared unrecorded media for sound
recording or similar recording of other
-E20-
phenomena, other than products of Chapter
37
852313 -Of a width exceeding 6.5 mm:
85231320 -Computer magnetic tapes 20 15
8525 Transmission apparatus for radio-telephony,
radio-telegraphy, radio-broadcasting or
television, whether or not incorporating
reception apparatus or sound recording or
reproducing.
852520 -Transmission apparatus incorporating reception
apparatus:
85252010 -Cordless telephones (mobile phones) 20 10
85254000 -Still image video cameras and other video
camera recorders
30 20
8527 Reception apparatus for radio-telephony,
radio-telegraphy or radio broadcasting,
whether or not combined, in the same housing,
with sound recording or reproducing
apparatus or a clock
852790 -Other
85279010 -Pager 15 10
8529 Parts suitable for use soley or principally with
the apparatus of headings Nos. 85.25 tp 85.28
85291000 30 20
9006 Photographic (other than cinematographic)
cameras; photographic flashlight apparatus
and flashbulbs other than discharge lamps of
heading No. 8539
90065300 -Other, for roll film of a width of 35 mm 30 20
9504 Articles for funfair, table or parlour games,
including pintables, billards, special tables for
casino games and automatic bowling alley
equipment
95041000 -Video games of a kind used with a television
receiver
50 30
95049000 -Other 50 30
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CHAPTER II
INTELLECTUAL PROPERTY RIGHTS
Article 1
Objectives, Principles and Scope of Obligations
1. Each Party shall provide in its territory to the nationals of the other Party adequate and
effective protection and enforcement of intellectual property rights.
2. The Parties recognize the underlying public policy objectives of national systems for the
protection of intellectual property, including developmental and technological objectives,
and ensure that measures to protect and enforce intellectual property rights do not
themselves become barriers to legitimate trade.
3. To provide adequate and effective protection and enforcement of intellectual property
rights, each Party shall, at a minimum, give effect to this Chapter and the substantive
economic provisions of:
A. the Geneva Convention for the Protection of Producers of Phonograms Against
Unauthorized Duplication of their Phonograms, 1971 (Geneva Convention);
B. the Berne Convention for the Protection of Literary and Artistic Works, 1971
(Berne Convention);
C. the Paris Convention for the Protection of Industrial Property, 1967 (Paris
Convention);
D. the International Convention for the Protection of New Varieties of Plants, 1978
(UPOV Convention (1978)), or the International Convention for the Protection of
New Varieties of Plants, 1991 (UPOV Convention (1991)); and
E. the Convention Relating to the Distribution of Programme-Carrying Signals
Transmitted by Satellite (1974).
If a Party has not acceded to the specified text of any such Conventions on or before the
date of entry into force of this Agreement, it shall promptly make every effort to accede.
4. A Party may implement in its domestic law more extensive protection and enforcement of
intellectual property rights than is required under this Chapter, provided that such protection
and enforcement are not inconsistent with this Chapter.
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Article 2
Definitions
For purposes of this Chapter:
1. �confidential information� includes trade secrets, privileged information, and other
undisclosed information that has not become subject to an unrestricted public disclosure
under the Party's domestic law.
2. �encrypted program-carrying satellite signal� means a program-carrying satellite signal that
is transmitted in a form whereby the aural or visual characteristics, or both, are modified or
altered for the purpose of preventing the unauthorized reception of a program carried in that
signal by persons without the authorized equipment that is designed to eliminate the effects
of such modification or alteration.
3. �intellectual property rights� refers to copyrights and related rights, trademarks, patents,
layout designs (topographies) of integrated circuits, encrypted program-carrying satellite
signals, confidential information (trade secrets), industrial designs and rights in plant
varieties.
4. �lawful distributor of an encrypted satellite signal� in a Party means the person who
originally transmitted the signal.
5. �national� of a Party shall, in respect of the relevant intellectual property rights, be
understood as those natural or legal persons that would meet the criteria for eligibility for
protection provided for in the Paris Convention, the Berne Convention, the Geneva
Convention, the Convention Relating to the Distribution of Programme-Carrying Signals
Transmitted by Satellite, the International Convention for the Protection of Performers,
Producers of Phonograms and Broadcasting Organizations, the UPOV Convention (1978),
the UPOV Convention (1991) or the Treaty on Intellectual Property in Respect of
Integrated Circuits adopted at Washington in 1989, as if each Party were a Party to those
Conventions, and with respect to intellectual property rights that are not the subject of these
Conventions, "national of a Party" shall be understood at least to include any person that
is a citizen or permanent resident of that Party.
6. �public� includes, with respect to rights of communication and performance of works
provided for under Articles 11, 11bis(1) and 14(1)(ii) of the Berne Convention, with respect
to dramatic, dramatico-musical, musical and cinematographic works, at least, any
aggregation of individuals intended to be the object of, and capable of perceiving,
communications or performances of works, regardless of whether they can do so at the
same or different times or in the same or different places, provided that such an aggregation
is larger than a family and its immediate circle of acquaintances or is not a group comprising
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a limited number of individuals having similarly close ties that has not been formed for the
principal purpose of receiving such performances and communications of works.
7. �right holder� includes the right holder personally, any other natural or legal person
authorized by the right holder who is an exclusive licensee of the right, or other authorized
persons, including federations and associations, having legal standing under domestic law
to assert such rights.
Article 3
National Treatment
1. Each Party shall accord to nationals of the other Party treatment no less favorable than it
accords to its own nationals with regard to the acquisition, protection, enjoyment and
enforcement of all intellectual property rights and any benefits derived therefrom.
2. A Party shall not, as a condition of according national treatment under this Article, require
right holders to comply with any formalities or conditions (including fixation, publication
or exploitation in the territory of a Party) in order to acquire, enjoy, enforce and exercise
rights or benefits in respect of copyright and related rights.
3. A Party may derogate from paragraph 1 in relation to its judicial and administrative
procedures for the protection or enforcement of intellectual property rights, including any
procedure requiring a national of the other Party to designate for service of process an
address in the Party�s territory or to appoint an agent in the Party's territory, if the
derogation is consistent with the relevant Convention listed in Article 1.3 above, provided
that such derogation:
A. is necessary to secure compliance with measures that are not inconsistent with this
Agreement; and
B. is not applied in a manner that would constitute a restriction on trade.
4. No Party shall have any obligation under this Article with respect to procedures provided
in multilateral agreements concluded under the auspices of the World Intellectual Property
Organization relating to the acquisition or maintenance of intellectual property rights.
Article 4
Copyright and Related Rights
1. Each Party shall protect all works that embody original expression within the meaning of
the Berne Convention. In particular:
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A. all types of computer programs are literary works within the meaning of the Berne
Convention and each Party shall protect them as such; and
B. compilations of data or other material, whether in machine readable or other form,
which by reason of the selection or arrangement of their contents constitute
intellectual creations, shall be protected as works.
The protection a Party provides under subparagraph (B) shall not extend to the data or
material itself, or prejudice any copyright subsisting in that data or material.
2. Each Party shall provide to authors and their successors in interest those rights enumerated
in the Berne Convention in respect of works covered by paragraph 1, and shall provide the
right to authorize or prohibit:
A. the importation into the Party's territory of copies of the work;
B. the first public distribution of the original and each copy of the work by sale, rental
or otherwise;
C. the communication of a work to the public; and
D. the rental of the original or a copy of a computer program for the purposes of
commercial advantage.
Subparagraph (D) shall not apply where the copy of the computer program is not itself an
essential object of the rental. Each Party shall provide that putting the original or a copy
of a computer program on the market with the right holder's consent shall not exhaust the
rental right.
3. Each Party shall provide that for copyright and related rights:
A. any person acquiring or holding any economic rights may freely and separately
transfer such rights by contract; and
B. any person acquiring or holding any such economic rights by virtue of a contract,
including contracts of employment underlying the creation of works and sound
recordings, shall be able to exercise those rights in its own name and enjoy fully the
benefits derived from those rights.
4. Each Party shall provide that, where the term of protection of a work is to be calculated on
a basis other than the life of a natural person, the term shall be not less than 75 years from
the end of the calendar year of the first authorized publication of the work or, failing such
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authorized publication within 25 years from the creation of the work, not less than 100 years
from the end of the calendar year of the creation of the work.
5. Neither Party may grant translation or reproduction licenses permitted under the Appendix
to the Berne Convention where legitimate needs in that Party's territory for copies or
translations of the work could be met by the right holder's voluntary actions but for
obstacles created by the Party's measures.
6. Each Party shall provide to the right holder in a sound recording the right to authorize or
prohibit:
A. the direct or indirect reproduction, in whole or in part, of the sound recording;
B. the importation into the Party's territory of copies of the sound recording;
C. the first public distribution of the original and each copy of the sound recording by
sale, rental or otherwise; and
D. the rental, lease or lending of the original or a copy of the sound recording for the
purposes of commercial advantage.
Each Party shall provide that putting the original or a copy of a sound recording on the
market with the right holder's consent shall not exhaust the rental right.
7. Each Party shall provide to performers the right to authorize or prohibit:
A. the fixation of their live musical performances in a sound recording;
B. the reproduction of unauthorized fixations of their live musical performances in a
sound recording;
C. the transmission or other communication to the public of sounds in a live musical
performance; and
D. the distribution, sale, rental, disposal or transfer of the unauthorized fixations of
their live performances in a sound recording, regardless of where the fixations were
made.
8. Each Party shall, through operation of this Agreement, apply the provisions of Article 18
of the Berne Convention to works and, with such modifications as may be necessary, to
existing sound recordings.
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9. Each Party shall confine limitations or exceptions to the rights provided for in this Article
to certain special cases that do not conflict with a normal exploitation of the work, and do
not unreasonably prejudice the legitimate interests of the right holder.
Article 5
Protection of Encrypted Program-Carrying Satellite Signals
1. For serious violations involving the protection of encrypted program-carrying satellite
signals, each Party shall make available appropriate remedies, including civil and criminal
remedies.
2. Serious violations involving the protection of encrypted program-carrying satellite signals
shall include the following:
A. The manufacture, assembly, modification, or distribution (including import, export,
sale or lease) of a device or system, by any person knowing or having reason to
know that the device or system is primarily of assistance in the unauthorized
decoding of an encrypted program-carrying satellite signal; and
B. The willful receipt or further distribution of an encrypted program-carrying satellite
signal that has been decoded without the authorization of the lawful distributor of
the signal (regardless of the location of such person) or of any other person or
persons designated by the original transmitter as authorized distributors of such
signal in such Party.
3. Each Party shall provide that civil remedies provided for pursuant to paragraph 1 of this
Article shall be available to any person that holds an interest in the encrypted programcarrying
satellite signal or the content thereof.
Article 6
Trademarks
1. For the purposes of this Agreement, a trademark consists of any sign, or any combination
of signs, capable of distinguishing the goods or services of one person from those of
another, including words, personal names, designs, letters, numerals, combinations of
colors, figurative elements or the shape of goods or of their packaging. Trademarks shall
include service marks, collective marks and certification marks.
2. Each Party shall provide to the owner of a registered trademark the right to prevent all
persons not having the owner's consent from using in commerce identical or similar signs
for goods or services that are identical, or similar to those goods or services in respect of
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which the owner's trademark is registered, where such use would result in a likelihood of
confusion. In the case of the use of an identical sign for identical goods or services, a
likelihood of confusion shall be presumed. The rights described above shall not prejudice
any prior rights, nor shall they affect the possibility of making rights available on the basis
of use.
3. A Party may make registrability depend on use. However, actual use of a trademark shall
not be a condition for filing an application for registration. Neither Party may refuse an
application solely on the ground that intended use has not taken place before the expiry of
a period of three years from the date of application for registration.
4. Each Party shall provide a system for the registration of trademarks, which shall include:
A. examination of applications;
B. notice to be given to an applicant of the reasons for the refusal to register a
trademark;
C. a reasonable opportunity for the applicant to respond to the notice;
D. publication of each trademark either before or promptly after it is registered; and
E. a reasonable opportunity for interested persons to petition to cancel the registration
of a trademark.
5. The nature of the goods or services to which a trademark is to be applied shall in no case
form an obstacle to the registration of a trademark.
6. Article 6bis of the Paris Convention shall apply, with such modifications as may be
necessary, to services. In determining whether a trademark is well-known, account shall be
taken of the knowledge of the trademark in the relevant sector of the public, including
knowledge in the Party's territory obtained as a result of the promotion of the trademark.
Neither Party may require that the reputation of the trademark extend beyond the sector of
the public that normally deals with the relevant goods or services or that the trademark be
registered.
7. Each Party shall use the International Classification of Goods and Services for registration.
Neither Party shall use such classification as the only basis for determining the likelihood
of confusion.
8. Each Party shall provide that the initial registration of a trademark be for a term of at least
10 years, and that the registration be indefinitely renewable for terms of not less than 10
years when conditions for renewal have been met.
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9. Each Party shall require the use of a trademark to maintain a registration. The registration
may be canceled for the reason of non-use only after an uninterrupted period of at least
three years of non-use, unless valid reasons based on the existence of obstacles to such
use are shown by the trademark owner. The law shall recognize, as valid reasons for nonuse,
circumstances arising independently of the will of the trademark owner that constitute
an obstacle to the use of the trademark, such as import restrictions on, or other government
requirements for, goods or services identified by the trademark.
10. Each Party shall recognize the use of a trademark by a person other than the trademark
owner, where such use is subject to the owner's control, as use of the trademark for
purposes of maintaining the registration.
11. Neither Party may encumber the use of a trademark in commerce by special requirements,
such as a use that reduces the trademark's function as an indication of source or a use with
another trademark.
12. A Party may determine conditions on the licensing and assignment of trademarks, it being
understood that the compulsory licensing of trademarks shall not be permitted. The owner
of a registered trademark shall have the right to assign its trademark with or without the
transfer of the business to which the trademark belongs. However, a Party may require a
transfer of goodwill in a mark as part of a valid transfer of the mark.
13. A Party may provide limited exceptions to the rights conferred by a trademark, such as fair
use of descriptive terms, provided that such exceptions take into account the legitimate
interests of the trademark owner and of other persons.
14. A Party may refuse to register trademarks that consist of or comprise immoral, deceptive
or scandalous matter, or matter that may disparage or falsely suggest a connection with
persons, living or dead, institutions, beliefs or a Party's national symbols, or bring them into
contempt or disrepute. Each Party shall prohibit the registration as a trademark of words
that generically designate goods or services or types of goods or services to which the
trademark applies.
Article 7
Patents
1. Subject to the provision of paragraph 2 of this Article, each Party shall make patents
available for any invention, whether a product or process, in all fields of technology,
provided that such invention is new, resulted from an inventive step and is capable of
industrial application. For purposes of this Article, a Party may deem the terms "inventive
step" and "capable of industrial application" to be synonymous with the terms "nonobvious"
and "useful", respectively.
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2. Parties may exclude from patentability:
A. inventions, the prevention within their territory of the commercial exploitation of
which is necessary to protect public order or morality, including to protect human,
animal or plant life or health or to avoid serious prejudice to the environment,
provided that such exclusion is not made merely because the exploitation is
prohibited by their law;
B. diagnostic, therapeutic and surgical methods for the treatment of humans or animals;
C. essentially biological processes for the production of plants or animals other than
non-biological and microbiological processes; animal varieties; plant varieties. The
exclusion for plant varieties is limited to those plant varieties that satisfy the
definition provided in Article 1(vi) of the UPOV Convention (1991); such definition
shall apply mutatis mutandis to animal varieties. The exclusions for plant and
animal varieties shall not apply to plant or animal inventions that could encompass
more than one variety. Moreover, the Parties shall provide for the protection of
plant varieties by an effective sui generis system in accordance with subparagraph
3.D of Article 1 of this Chapter.
3. Each Party shall provide that:
A. where the subject matter of a patent is a product, the patent shall confer on the
patent owner the right to prevent other persons from making, using, selling, offering
for sale or importing for these purposes the subject matter of the patent, without the
patent owner's consent; and
B. where the subject matter of a patent is a process, the patent shall confer on the
patent owner the right to prevent other persons from using that process and from
using, selling, offering for sale or importing for these purposes at least the product
obtained directly by that process, without the patent owner's consent.
4. A Party may provide limited exceptions to the exclusive rights conferred by a patent,
provided that such exceptions do not conflict with a normal exploitation of the patent and
do not unreasonably prejudice the legitimate interests of the patent owner.
5. Patents shall be available and patent rights enjoyable without discrimination as to the field
of technology or whether products are imported or locally produced.
6. A Party may revoke a patent only when grounds exist that would have justified a refusal to
grant the patent.
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7. Each Party shall permit patent owners to assign and transfer by succession their patents, and
to conclude licensing contracts.
8. A Party may decline to allow use without the authorization of the right holder of a patent.
However, where the law of a Party allows for use of the subject matter of a patent, other
than use allowed under paragraph 4, without the authorization of the right holder, including
use by the government or other persons authorized by the government, the Party shall
respect the following provisions:
A. authorization of such use shall be considered on its individual merits;
B. such use may be permitted only if, prior to such use, the proposed user has made
efforts to obtain authorization from the right holder on reasonable commercial terms
and conditions and such efforts have not been successful within a reasonable period
of time. The requirement to make such efforts may be waived by a Party in the case
of a national emergency or other circumstances of extreme urgency or in cases of
public non-commercial use. In situations of national emergency or other
circumstances of extreme urgency, the right holder shall, nevertheless, be notified
as soon as reasonably practicable. In the case of public non-commercial use, where
the government or contractor, without making a patent search, knows or has
demonstrable grounds to know that a valid patent is or will be used by or for the
government, the right holder shall be informed promptly;
C. the scope and duration of such use shall be limited to the purpose for which it was
authorized, and in the case of semiconductor technology shall only be for public
non-commercial use or to remedy a practice determined after judicial or
administrative process to be anti-competitive;
D. such use shall be non-exclusive;
E. such use shall be non-assignable, except with that part of the enterprise or goodwill
that enjoys such use;
F. any such use shall be authorized predominantly for the supply of the Party's
domestic market;
G. authorization for such use shall be liable, subject to adequate protection of the
legitimate interests of the persons so authorized, to be terminated if and when the
circumstances that led to it cease to exist and are unlikely to recur. The competent
authority shall have the authority to review, on petition of an interested party, the
continued existence of these circumstances;
-20-
H. the right holder shall be paid adequate remuneration in the circumstances of each
case, taking into account the economic value of the authorization;
I. the legal validity of any decision relating to the authorization shall be subject to
judicial or other independent review by a distinct higher authority;
J. any decision relating to the remuneration provided in respect of such use shall be
subject to judicial or other independent review by a distinct higher authority;
K. the Party shall not be obliged to apply the conditions set out in subparagraphs B and
F of this Article where such use is permitted to remedy a practice determined after
judicial or administrative process to be anticompetitive. The need to correct anticompetitive
practices may be taken into account in determining the amount of
remuneration in such cases. Competent authorities shall have the authority to refuse
termination of authorization if and when the conditions that led to such
authorization are likely to recur; and
L. the Party shall not authorize the use of the subject matter of a patent to permit the
exploitation of another patent except as a remedy for an adjudicated violation of
domestic laws regarding anticompetitive practices.
9. Where the subject matter of a patent is a process for obtaining a product, each Party shall,
in any infringement proceeding, place on the defendant the burden of establishing that the
allegedly infringing product was made by a process other than the patented process in one
or more of the following situations:
A. the product obtained by the patented process is new; or
B. a substantial likelihood exists that the allegedly infringing product was made by the
process and the patent owner has been unable through reasonable efforts to
determine the process actually used.
In the gathering and evaluation of evidence, the legitimate interests of the defendant in
protecting its trade secrets shall be taken into account.
10. Each Party shall provide a term of protection for patents that shall not end before the
expiration of a period of twenty years counted from the date of filing. A Party may extend
the term of patent protection, in appropriate cases, to compensate for delays caused by
regulatory approval processes.
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Article 8
Layout Designs (Topographies) of Integrated Circuits
1. Each Party shall protect layout designs (topographies) of integrated circuits ("layout
designs") in accordance with Articles 2 through 7, 12 and 16(3), other than Article 6(3), of
the Treaty on Intellectual Property in Respect of Integrated Circuits as opened for signature
on May 26, 1989, and, in addition, shall comply with the provisions of paragraphs 2 through
8 of this Article.
2. Subject to paragraph 3, each Party shall make it unlawful for any person without the right
holder's authorization to reproduce, import or distribute a protected layout design, an
integrated circuit in which a protected layout design is incorporated, or an article
incorporating such an integrated circuit only insofar as it continues to contain an unlawfully
reproduced layout design.
3. Neither Party may make unlawful any of the acts referred to in paragraph 2 performed in
respect of an integrated circuit that incorporates an unlawfully reproduced layout design,
or any article that incorporates such an integrated circuit, where the person performing
those acts or ordering those acts to be done did not know and had no reasonable ground to
know, when it acquired the integrated circuit or article incorporating such an integrated
circuit, that it incorporated an unlawfully reproduced layout design.
4. Each Party shall provide that, after the person referred to in paragraph 3 has received
sufficient notice that the layout design was unlawfully reproduced, such person may perform
any of the acts with respect to the stock on hand or ordered before such notice, but shall be
liable to pay the right holder for doing so an amount equivalent to a reasonable royalty such
as would be payable under a freely negotiated license in respect of such a layout design.
5. Neither Party may permit the compulsory licensing of layout designs of integrated circuits.
6. Any Party that requires registration as a condition for protection of a layout design shall
provide that the term of protection shall not end before the expiration of a period of 10
years counted from the date of filing an application for registration or from the date on
which the layout design is first commercially exploited in the world, whichever occurs first.
7. Where a Party does not require registration as a condition for protection of a layout design,
the Party shall provide a term of protection of not less than 10 years from the date of the
first commercial exploitation of the layout design, wherever in the world it occurs.
8. Notwithstanding paragraphs 6 and 7, a Party may provide that the protection shall lapse 15
years after the creation of the layout design.
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Article 9
Confidential Information (Trade Secrets)
1. In the course of ensuring effective protection against unfair competition as provided in
Article 10bis of the Paris Convention (1967), each Party shall protect confidential
information in accordance with paragraph 2 below and data submitted to government or
governmental agencies in accordance with paragraphs 5 and 6 below.
2. Each Party shall provide the legal means for any person to prevent confidential information
from being disclosed to, acquired by, or used by others without the consent of the person
lawfully in control of the information in a manner contrary to honest commercial practices,
in so far as, and for so long as:
A. the information is not generally known or readily ascertainable;
B. the information has commercial value because it is secret; and
C. the person lawfully in control of the information has taken reasonable steps under
the circumstances to keep it secret.
3. For the purposes of this Agreement, "in a manner contrary to honest commercial practices"
shall mean at least practices such as breach of contract, breach of confidence and
inducement to breach, and includes the acquisition of undisclosed information by third
parties who knew, or were negligent in failing to know, that such practices were involved
in the acquisition.
4. Neither Party may discourage or impede the voluntary licensing of confidential information
by imposing excessive or discriminatory conditions on such licenses or conditions that dilute
the value of the confidential information.
5. If a Party requires, as a condition for approving the marketing of pharmaceutical or
agrochemical products, the submission of undisclosed test or other data, the origination of
which involves a considerable effort, the Party shall protect such data against unfair
commercial use. In addition, each Party shall protect such data against disclosure, except
where necessary to protect the public.
6. Each Party shall provide that for data of a type referenced in paragraph 5 that are submitted
to the Party after the date of entry into force of this Agreement, no other applicant for
product approval may, without permission of the person that submitted them, rely on that
data in support of an application for product approval during a reasonable period of time
after their submission. For this purpose, a reasonable period shall normally mean not less
than five years from the date on which the Party granted approval to the person that
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produced the data for approval to market its product, taking into account the nature of the
data and the person's efforts and expenditures in producing them.
Article 10
Industrial Designs
1. Each Party shall provide for the protection of independently created industrial designs that
are new or original. A Party may provide that:
A. designs are not new or original if they do not significantly differ from known designs
or combinations of known design features; and
B. such protection shall not extend to designs dictated essentially by technical or
functional considerations.
2. Each Party shall ensure that the requirements for securing protection for textile designs, in
particular in regard to any cost, examination or publication, do not unreasonably impair a
person's opportunity to seek and obtain such protection. A Party may comply with this
obligation through industrial design law or copyright law.
3. Each Party shall provide the owner of a protected industrial design the right to prevent other
persons not having the owner's consent from making, selling, importing or otherwise
distributing articles bearing or embodying a design that is a copy, or substantially a copy,
of the protected design, when such acts are undertaken for commercial purposes.
4. A Party may provide limited exceptions to the protection of industrial designs, provided that
such exceptions do not conflict with the normal exploitation of protected industrial designs
and do not unreasonably prejudice the legitimate interests of the owner of the protected
design.
5. Each Party shall provide a term of protection for industrial designs available for the amount
of at least 10 years.
Article 11
Enforcement of Intellectual Property Rights
1. As specified in this Article and Articles 12 through 15 hereof, each Party shall provide
procedures in its domestic law that permit effective action against infringement of the
intellectual property rights covered by this Chapter. These procedures shall include
expeditious remedies to prevent infringement and remedies substantial enough to deter
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future infringement. Each Party shall apply enforcement procedures in a manner that does
not create barriers to legitimate trade and contains effective safeguards against abuse.
2. Each Party shall ensure that its enforcement procedures are fair and equitable, are not
unnecessarily complicated or costly, and do not entail unreasonable time limits or
unwarranted delays.
3. Each Party shall ensure that decisions on the merits of a case in judicial and administrative
enforcement proceedings are:
A. in writing and state the reasons on which the decisions are based;
B. made available without undue delay at least to the parties in a proceeding; and
C. based only on evidence in respect of which such parties were offered the
opportunity to be heard.
4. Each Party shall ensure that parties in a proceeding have an opportunity to have final
administrative decisions reviewed by a judicial authority of that Party and, subject to
jurisdictional provisions in its domestic laws concerning the importance of a case, to have
reviewed at least the legal aspects of initial judicial decisions on the merits of a case.
Notwithstanding the above, neither Party shall be required to provide for judicial review of
acquittals in criminal cases.
Article 12
Specific Procedural and Remedial Aspects of Civil
and Administrative Procedures
1. Each Party shall make available to right holders civil judicial procedures for the enforcement
of any intellectual property right covered by this Agreement. Each Party shall provide that:
A. defendants have the right to written notice that is timely and contains sufficient
detail, including the basis of the claims;
B. parties in a proceeding are allowed to be represented by independent legal counsel;
C. enforcement procedures do not include imposition of overly burdensome
requirements concerning mandatory personal appearances;
D. all parties in a proceeding are duly entitled to substantiate their claims and to present
relevant evidence; and
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E. the procedures include a means to identify and protect confidential information.
2. Each Party shall authorize its judicial authorities:
A. where a party in a proceeding has presented reasonably available evidence sufficient
to support its claims and has specified evidence relevant to the substantiation of its
claims that is within the control of the opposing party, to order the opposing party
to produce such evidence, subject in appropriate cases to conditions that ensure the
protection of confidential information;
B. where a party in a proceeding voluntarily and without good reason refuses access
to, or otherwise does not provide relevant evidence under that party's control within
a reasonable period, or significantly impedes a proceeding relating to an
enforcement action, to make preliminary and final determinations, affirmative or
negative, on the basis of the evidence presented, including the complaint or the
allegation presented by the party adversely affected by the denial of access to
evidence, subject to providing the parties an opportunity to be heard on the
allegations or evidence;
C. to order a party in a proceeding to desist from an infringement, including measures
to prevent the entry into the channels of commerce of imported goods that involve
the infringement of an intellectual property right, immediately after customs
clearance of such goods.
D. to order the infringer of an intellectual property right to pay the right holder
damages adequate to compensate for the injury the right holder has suffered because
of the infringement and the profits of the infringer that are attributable to the
infringement and are not taken into account in computing the actual damages;
E. to order an infringer of an intellectual property right to pay the right holder's
expenses, which may include appropriate attorney's fees; and
F. to order a party in a proceeding at whose request measures were taken and who has
abused enforcement procedures to provide adequate compensation to any party
wrongfully enjoined or restrained in the proceeding for the injury suffered because
of such abuse and to pay that party's expenses, which may include appropriate
attorney's fees.
3. With respect to the authority referred to in subparagraph 2.D, a Party shall, at least with
respect to works protected by copyright or neighboring rights, provide judicial authorities
with the authority to order the payment of pre-established damages. Judicial authorities
shall exercise such authority at their discretion.
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4. Each Party shall, in order to create an effective deterrent to infringement and counterfeiting,
authorize its judicial authorities to order that:
A. goods that they have found to be infringing be, without compensation of any sort,
disposed of outside the channels of commerce in such a manner as to avoid any
injury caused to the right holder or, unless this would be contrary to existing
constitutional requirements, destroyed; and
B. materials and implements the predominant use of which has been in the creation of
the infringing goods be, without compensation of any sort, disposed of outside the
channels of commerce in such a manner as to minimize the risks of further
infringements.
In considering whether to issue such an order, judicial authorities shall take into account
the need for proportionality between the seriousness of the infringement and the remedies
ordered, as well as the interests of other persons. In regard to counterfeit trademark goods,
the simple removal of the trademark unlawfully affixed shall not be sufficient, other than
in exceptional cases, to permit release of the goods into the channels of commerce.
5. In respect of the administration of any law pertaining to the protection or enforcement of
intellectual property rights, each Party may exempt public authorities and officials from
liability, unless their actions were not taken or intended in good faith in the course of the
administration of such laws.
6. Notwithstanding the other provisions of Articles 11 through 15 of this Chapter, in any case
of infringement of an intellectual property right brought against a Party to this Agreement,
remedies available against that Party may be limited to the payment to the right holder of
adequate remuneration in the circumstances of each case, taking into account the economic
value of the use.
7. Each Party shall provide that, where a civil remedy can be ordered as a result of
administrative procedures on the merits of a case, such procedures shall conform to
principles equivalent in substance to those set out in this Article.
Article 13
Provisional Measures
1. Each Party shall authorize its judicial authorities to order prompt and effective provisional
measures:
A. to prevent an infringement of any intellectual property right, and in particular to
prevent the entry into the channels of commerce in their jurisdiction of allegedly
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infringing goods, including imported goods immediately after customs clearance;
and
B. to preserve relevant evidence in regard to the alleged infringement.
2. Each Party shall authorize its judicial authorities to require any applicant for provisional
measures to provide to the judicial authorities any evidence reasonably available to that
applicant that the judicial authorities consider necessary to enable them to determine with
a sufficient degree of certainty whether:
A. the applicant is the right holder;
B. the applicant's right is being infringed or such infringement is imminent; and
C. any delay in the issuance of such measures is likely to cause irreparable harm to the
right holder, or there is a demonstrable risk of evidence being destroyed.
Each Party shall authorize its judicial authorities to require the applicant to provide a
security or equivalent assurance sufficient to protect the interests of the defendant and to
prevent abuse.
3. Each Party shall authorize its judicial authorities to require an applicant for provisional
measures to provide other information necessary for the identification of the relevant goods
by the authority that will execute the provisional measures.
4. Each Party shall authorize its judicial authorities to order provisional measures on an ex
parte basis, in particular where any delay is likely to cause irreparable harm to the right
holder, or where there is a demonstrable risk of evidence being destroyed.
5. Each Party shall authorize that where provisional measures are adopted by that Party's
judicial authorities on an ex parte basis:
A. a person affected shall be given notice of those measures without delay but in any
event no later than immediately after the execution of the measures;
B. a defendant shall, on request, have those measures reviewed by that Party's judicial
authorities for the purpose of deciding, within a reasonable period after notice of
those measures is given, whether the measures shall be modified, revoked or
confirmed, and shall be given an opportunity to be heard in the review proceedings.
6. Without prejudice to paragraph 5, each Party shall provide that, on the request of the
defendant, the Party's judicial authorities shall revoke or otherwise cease to apply the
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provisional measures taken on the basis of paragraphs 1 and 4 if proceedings leading to a
decision on the merits are not initiated:
A. within a reasonable period as determined by the judicial authority ordering the
measures where the Party's domestic law so permits; or
B. in the absence of such a determination, within a period of no more than 20 working
days or 31 calendar days, whichever is longer.
7. Each Party shall authorize its judicial authorities to order, on request of the defendant, that
the applicant provide compensation for injury caused by provisional measures:
A. if the provisional measures are revoked or lapse because of any act or omission of
the applicant, or
B. if the judicial authorities subsequently find there has been no infringement or threat
of infringement of any intellectual property right.
8. Each Party shall provide that, where a provisional measure can be ordered as a result of
administrative procedures, such procedures shall conform to principles equivalent in
substance to those set out in this Article.
Article 14
Criminal Procedures and Penalties
1. Each Party shall provide criminal procedures and penalties to be applied at least in cases of
willful trademark counterfeiting or infringement of copyrights or neighboring rights on a
commercial scale. Each Party shall provide that penalties available include imprisonment
or monetary fines, or both, sufficient to provide a deterrent, consistent with the level of
penalties applied for crimes of a corresponding gravity.
2. Each Party shall provide that, in appropriate cases, its judicial authorities may order the
seizure, forfeiture and destruction of infringing goods and of any materials and implements
the predominant use of which has been in the commission of the offense.
3. Each Party may provide that, in appropriate cases, its judicial authorities may impose
criminal penalties for the infringement of intellectual property rights other than those in
paragraph 1 of this Article, where they are committed wilfully and on a commercial scale.
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Article 15
Enforcement of Intellectual Property Rights at the Border
1. Each Party shall adopt procedures to enable a right holder, who has valid grounds for
suspecting that the importation of counterfeit trademark goods or unauthorized copies of
works protected by copyrights or neighboring rights may take place, to lodge an application
in writing with its competent authorities, whether administrative or judicial, for the
suspension by the customs administration of the release of such goods into free circulation.
No Party shall be obligated to apply such procedures to goods in transit. A Party may
permit such an application to be made in respect of goods that involve other infringements
of intellectual property rights, provided that the requirements of this Article are met. A
Party may also provide for corresponding procedures concerning the suspension by the
customs administration of the release of infringing goods destined for exportation from its
territory.
2. Each Party shall require any applicant who initiates procedures under paragraph 1 to
provide adequate evidence:
A. to satisfy that Party's competent authorities that, under its domestic laws, there is
prima facie an infringement of its intellectual property right; and
B. to supply a sufficiently detailed description of the goods to make them readily
recognizable by the customs administration.
The competent authorities shall inform the applicant within a reasonable period whether
they have accepted the application and, if so, the period for which the customs
administration will take action.
3. Each Party shall authorize its competent authorities to require an applicant under paragraph
1 to provide a security or equivalent assurance sufficient to protect the defendant and the
competent authorities and to prevent abuse. Such security or equivalent assurance shall not
unreasonably deter recourse to these procedures.
4. A Party's customs administration, upon receiving an application pursuant to procedures
adopted in accordance with this Article, may suspend the release of goods involving
industrial designs, patents, integrated circuits or trade secrets into free circulation on the
basis of a decision other than by a judicial or other independent authority; provided,
however, if the period set forth in paragraphs 6 through 8 has expired without the granting
of provisional relief by the duly empowered authority, and provided that all other conditions
for importation have been complied with, such Party shall permit the owner, importer or
consignee of such goods to receive such goods for entry into commerce on the posting of
a security in an amount sufficient to protect the right holder against any infringement.
Payment of such security shall not prejudice any other remedy available to the right holder,
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it being understood that the security shall be released if the right holder fails to pursue its
right of action within a reasonable period of time.
5. Each Party shall ensure that its customs administration will promptly notify the importer and
the applicant when the customs administration suspends the release of goods pursuant to
paragraph 1.
6. Each Party shall ensure that its customs administration will release goods from suspension
if within a period not exceeding 10 working days after the applicant under paragraph 1 has
been served notice of the suspension the customs administration has not been informed that:
A. a party other than the defendant has initiated proceedings leading to a decision on
the merits of the case, or
B. a competent authority has taken provisional measures prolonging the suspension,
provided that all other conditions for importation or exportation have been met.
Each Party shall provide that, in appropriate cases, the customs administration may
extend the suspension by another 10 working days.
7. Each Party shall ensure that if proceedings leading to a decision on the merits of the case
have been initiated, a review, including a right to be heard, shall take place on request of the
defendant with a view to deciding, within a reasonable period, whether the measures shall
be modified, revoked or confirmed.
8. Notwithstanding paragraphs 6 and 7, where the suspension of the release of goods is carried
out or continued in accordance with a provisional judicial measure, Article 13.6 of this
Chapter shall apply.
9. Each Party shall ensure that its competent authorities have the authority to order the
applicant under paragraph 1 to pay the importer, the consignee and the owner of the goods
appropriate compensation for any injury caused to them through the wrongful detention of
goods or through the detention of goods released pursuant to paragraph 6.
10. Without prejudice to the protection of confidential information, each Party shall ensure that
its competent authorities have the authority to give the right holder sufficient opportunity
to have any goods detained by the customs administration inspected in order to substantiate
its claims. Each Party shall also ensure that its competent authorities have the authority to
give the importer an equivalent opportunity to have any such goods inspected. Where the
competent authorities have made a positive determination on the merits of a case, a Party
may provide the competent authorities the authority to inform the right holder of the names
and addresses of the consignor, the importer and the consignee, and of the quantity of the
goods in question.
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11. Where a Party requires its competent authorities to act on their own initiative and to
suspend the release of goods in respect of which they have acquired prima facie evidence
that an intellectual property right is being infringed:
A. The competent authorities may at any time seek from the right holder any
information that might assist them to exercise these powers;
B. the importer and the right holder shall be promptly notified of the suspension by the
Party�s competent authorities, and where the importer lodges an appeal against the
suspension with competent authorities, the suspension shall be subject to the
conditions, with such modifications as may be necessary, set out in paragraphs 6
through 8; and
C. the Party may exempt public authorities and officials from liability, except when the
offending actions were not taken or intended in good faith.
12. Without prejudice to other rights of action open to the right holder and subject to the
defendant's right to seek judicial review, each Party shall provide that its competent
authorities shall have the authority to order the destruction or disposal of infringing goods
in accordance with the principles set out in Article 12.4 of this Chapter. In regard to
counterfeit trademark goods, the authorities shall not allow the re-exportation of the
infringing goods in an unaltered state or subject them to a different customs procedure,
other than in exceptional circumstances.
13. A Party may exclude from the application of paragraphs 1 through 12 small quantities of
goods of a non-commercial nature contained in travelers� personal luggage or sent in small
consignments that are not repetitive.
Article 16
Existing Subject Matter
To the extent this Agreement requires a Party to increase its level of protection and enforcement
of intellectual property rights, it gives rise to obligations in respect of all subject matter existing at
the date of application of this Agreement for the Party in question, and which is protected in that
Party on the date the Agreement enters into force, or which meets or comes subsequently to meet
the criteria for protection under the terms of this Agreement. In respect of this Article, copyright
obligations with respect to existing works shall be solely determined under Article 18 of the Berne
Convention (1971), and obligations with respect to the rights of producers of phonograms and
performers in existing phonograms shall be determined solely under Article 18 of the Berne
Convention (1971), which is applied with such modifications as may be necessary.
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Article 17
Technical Cooperation
1. The Parties agree to enhance mutually beneficial cooperation in the field of intellectual
property rights. To this end, the United States agrees to provide Vietnam with technical
assistance to strengthen its regime for the protection and enforcement of intellectual
property rights. Such technical assistance shall be provided on mutually agreed terms and
is subject to the availability of appropriated funds. This assistance may be provided
through, or in conjunction with, private industry or international organizations.
2. Cooperative activities under this Article may be undertaken in the fields of intellectual
property described in Article 2.3 of this Chapter as well as the enforcement of intellectual
property rights. Cooperative activities under this Article may include, but are not limited
to, such activities as the exchange of experience and training of staff, and have the aim of
strengthening the legislative and regulatory framework in the field of intellectual property
law, strengthening the administration of intellectual property protection, and strengthening
the implementation and effective enforcement of intellectual property laws in Vietnam.
3. To assist in further strengthening its regime for the protection and enforcement of
intellectual property rights, Vietnam agrees to seek appropriate technical assistance from
relevant international organizations or other interested countries, organizations or agencies.
Article 18
Transitional Provisions
1. Vietnam agrees to implement fully the obligations of this Chapter within the following time
periods:
A. With respect to all obligations in Articles 6 and 7, twelve months from the date of
entry into force of this Agreement.
B. With respect to all obligations in Article 4 except the obligation in Article 4.4, and
with respect to all obligations in Article 9, eighteen months from the date of entry
into force of this Agreement.
C. With respect to the obligations in Articles 1.3.A, 1.3.E, 4.4 and 5, thirty months
from the date of entry into force of this Agreement.
D. With respect to all obligations not referenced in sub-paragraphs 1.A, 1.B or 1.C of
this Article, twenty-four months from the date of entry into force of this Agreement.
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2. The United States agrees to implement fully the obligations of this Chapter upon entry into
force of this Agreement, with the exception of the obligations in Article 8 and Article 3.1
as regards the protection of layout designs (topographies) of integrated circuits, which shall
be implemented twenty-four months from the date of entry into force of this Agreement.
3. Vietnam shall comply fully with the obligations of this Chapter which coincide with those
of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (1994)
upon its accession to the WTO, if such accession occurs before the expiration of the time
periods provided in paragraph 1 of this Article.
4. Each Party shall immediately comply with the obligations of this Chapter to the extent
possible under its existing laws, and shall not take any measures during the time periods
provided in paragraphs 1 and 2 that would result in a lesser degree of consistency with this
Chapter.
5. In case of any conflict between the provisions of this Agreement and The Agreement
between the Government of the United States of America and the Government of the
Socialist Republic of Vietnam on the Establishment of Copyright Relations, signed in Hanoi
on June 27, 1997, the provisions of this Agreement shall prevail to the extent of the conflict.
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CHAPTER III
TRADE IN SERVICES
Article 1
Scope and Definition
1. This Chapter applies to measures by the Parties affecting trade in services.
2. For the purposes of this Chapter, trade in services is defined as the supply of a service:
A. from the territory of one Party into the territory of the other Party;
B. in the territory of one Party to the service consumer of the other Party;
C. by a service supplier of one Party, through commercial presence in the territory of
the other Party;
D. by a service supplier of one Party, through presence of natural persons of a Party
in the territory of the other Party.
3. For the purposes of this Chapter:
A. "measures by a Party" means measures taken by:
(i) central, regional or local governments and authorities; and
(ii) non-governmental bodies in the exercise of powers delegated by central,
regional or local governments or authorities;
In fulfilling its obligations and commitments under this Chapter, each Party shall
take such reasonable measures as may be available to it to ensure their observance
by regional and local governments and authorities and non-governmental bodies
within its territory;
B. "services" includes any service in any sector except services supplied in the exercise
of governmental authority;
C. "a 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.
2 This condition is understood in terms of number of sectors, volume of trade affected and
modes of supply. In order to meet this condition, agreements should not provide for the a priori
exclusion of any mode of supply.
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Article 2
Most-Favored-Nation Treatment
1. With respect to any measure covered by this Chapter, each Party shall accord immediately
and unconditionally 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 other country.
2. A Party may maintain a measure inconsistent with paragraph 1 provided that such a measure
is listed in Listing of Article 2 Exemptions in Annex G.
3. The provisions of this Chapter shall not be so construed as to prevent either Party from
conferring or according advantages to adjacent countries in order to facilitate exchanges
limited to contiguous frontier zones of services that are both locally produced and
consumed.
Article 3
Economic Integration
1. This Chapter shall not apply to advantages accorded by either Party by virtue of such
Party�s membership in, or having entered into, an agreement liberalizing trade in services
between or among the parties to such an agreement, provided that such an agreement:
A. has substantial sectoral coverage,2 and
B. provides for the absence or elimination of substantially all discrimination, in the
sense of Article 7, between or among the parties, in the sectors covered under
subparagraph (A), through:
i) elimination of existing discriminatory measures, and/or
ii) prohibition of new or more discriminatory measures,
either at the entry into force of that agreement or on the basis of a reasonable timeframe,
except for measures permitted under Articles 1, 2, and 3 of Chapter VII.
2. A service supplier of any Party that is a juridical person constituted under the laws of a party
to an agreement referred to in paragraph 1 shall be entitled to treatment granted under such
agreement, provided that it engages in substantive business operations in the territory of the
parties to such agreement.
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Article 4
Domestic Regulation
1. In sectors where specific commitments are undertaken, each Party shall ensure that all
measures of general application affecting trade in services are administered in a reasonable,
objective and impartial manner.
2. A. Each Party shall maintain or institute as soon as practicable judicial, arbitral or
administrative tribunals or procedures which provide, at the request of an affected
service supplier, for the prompt review of, and where justified, appropriate remedies
for, administrative decisions affecting trade in services. Where such procedures are
not independent of the agency entrusted with the administrative decision concerned,
the Party shall ensure that the procedures in fact provide for an objective and
impartial review.
B. The provisions of subparagraph A shall not be construed to require a Party to
institute such tribunals or procedures where this would be inconsistent with its
constitutional structure or the nature of its legal system.
3. Where authorization is required for the supply of a service on which a specific commitment
has been made, the competent authorities of a Party shall, within a reasonable period of time
after the submission of an application considered complete under domestic laws and
regulations, inform the applicant of the decision concerning the application. At the request
of the applicant, the competent authorities of the Party shall provide, without undue delay,
information concerning the status of the application.
4. A. The Party shall not apply licensing and qualification requirements and technical
standards that nullify or impair such specific commitments in a manner which:
(i) does not comply with the following criteria:
(a) such requirements or standards shall be based on objective and
transparent criteria, such as competence and the ability to supply the
service;
(b) such requirements or standards shall not be more burdensome than
necessary to ensure the quality of the service;
(c) in the case of licensing procedures, they shall not in themselves be
a restriction on the supply of the service.
3 The term "relevant international organizations" refers to international bodies whose
membership is open to the relevant bodies of at least all Members of the WTO.
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(ii) could not reasonably have been expected of that Party at the time the
specific commitments in those sectors were made.
B. In determining whether a Party is in conformity with the obligation under subparagraph
4.A, account shall be taken of international standards of relevant
international organizations3 applied by that Party.
5. In sectors where specific commitments regarding professional services are undertaken, each
Party shall provide for adequate procedures to verify the competence of professionals of the
other Party.
Article 5
Monopolies and Exclusive Service Suppliers
1. Each Party shall ensure that any monopoly supplier of a service in its territory does not, in
the supply of the monopoly service in the relevant market, act in a manner inconsistent with
that Party�s obligations under Article 2 and specific commitments.
2. Where a Party's monopoly supplier competes, either directly or through an affiliated
company, 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 its territory in a manner inconsistent with such
commitments.
3. 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 territory.
4 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 2(A) of Article 1 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 2(C) of Article 1, it is thereby committed
to allow related transfers of capital into its territory.
5 Subparagraph 2(C) does not cover measures of a Party which limit inputs for the supply of
services.
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Article 6
Market Access
1. With respect to market access through the modes of supply identified in Article 1, 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 in Annex G.4
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 territory, unless otherwise specified in its Schedule, 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;5
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
6 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 supplier.
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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 7
National Treatment
1. In the sectors inscribed in its Schedule in Annex G, 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.6
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.
Article 8
Additional Commitments
The Parties may negotiate commitments with respect to measures affecting trade in services not
subject to scheduling under Articles 6 or 7, including those regarding qualifications, standards or
licensing matters. Such commitments shall be inscribed in a Party�s Schedule.
Article 9
Schedules of Specific Commitments
1. Each Party shall set out in Annex G the specific commitments it undertakes under Articles
6 and 7 of this Chapter. With respect to sectors where such commitments are undertaken,
such Annex shall specify:
A. terms, limitations and conditions on market access;
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B. conditions and qualifications on national treatment;
C. undertakings relating to additional commitments;
D. where appropriate the time-frame for implementation of such commitments; and
E. the date of entry into force of such commitments.
2. Measures inconsistent with both Articles 6 and 7 shall be inscribed in the column relating
to Article 6. In this case the inscription will be considered to provide a condition or
qualification to Article 7 as well.
3. Schedules of specific commitments shall be annexed to this Chapter and shall form an
integral part thereof.
Article 10
Denial of Benefits
A Party may deny the benefits of this Chapter:
1. to the supply of a service, if it establishes that the service is supplied from or in the territory
of a non-Party;
2. in the case of the supply of a maritime transport service, if applicable, if it establishes that
the service is supplied:
A. by a vessel registered under the laws of a non-Party, and
B. by a person which operates and/or uses the vessel in whole or in part but which is
of a non-Party;
3. to a service supplier that is a juridical person, if it establishes that it is not a service supplier
of the other Party.
Article 11
Definitions
For the purpose of this Chapter and Annex G:
1. "measure" means any measure by a Party, whether in the form of a law, regulation, rule,
procedure, decision, administrative action, or any other form;
7 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
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2. "supply of a service" includes the production, distribution, marketing, sale and delivery of
a service;
3. "measures by a Party affecting trade in services" include measures in respect of
A. the purchase, payment or use of a service;
B. the access to and use of, in connection with the supply of a service, services which
are required by a Party to be offered to the public generally;
C. the presence, including commercial presence, of persons of a Party for the supply
of a service in the territory of another Party;
4. "commercial presence" means any type of business or professional establishment, including
through
A. the constitution, acquisition or maintenance of a juridical person, or
B. the creation or maintenance of a branch or a representative office,
within the territory of a Party for the purpose of supplying a service;
5. �sector" of a service means,
A. with reference to a specific commitment, one or more, or all, subsectors of that
service, as specified in a Party's Schedule,
B. otherwise, the whole of that service sector, including all of its subsectors;
6. "service of the other Party" means a service which is supplied,
A. from or in the territory of that other Party, or in the case of maritime transport, by
a vessel registered under the laws of that other Party, or by a person of that other
Party which supplies the service through the operation of a vessel and/or its use in
whole or in part; or
B. in the case of the supply of a service through commercial presence or through the
presence of natural persons, by a service supplier of that other Party;
7. "service supplier" means any person that supplies a service;7
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 territory where the
service is supplied.
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8. "monopoly supplier of a service" means any person, public or private, which in the relevant
market of the territory of a Party is authorized or established formally or in effect by that
Party as the sole supplier of that service;
9. "service consumer" means any person that receives or uses a service;
10. "person" means either a natural person or a juridical person;
11. "natural person of the other Party" means a natural person who resides in the territory of
that other Party, and who under the law of that other Party:
A. is a national of that other Party; or
B. has the right of permanent residence in that other Party, in the case of a Party which:
i) does not have nationals; or
ii) accords substantially the same treatment to its permanent residents as it does
to its nationals in respect of measures affecting trade in services;
12. "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;
13. "juridical person of the other Party" means a juridical person which is either:
A. constituted or otherwise organized under the law of the other Party, and is engaged
in substantive business operations in the territory of that Party; or
B. in the case of the supply of a service through commercial presence, owned or
controlled by:
i) natural persons of that Party; or
ii) juridical persons of that other Party identified under subparagraph (i);
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14. a juridical person is:
A. "owned" by persons of a Party if more than 50 per cent of the equity interest in it
is beneficially owned by persons of that Party;
B. "controlled" by persons of a Party if such persons have the power to name a
majority of its directors or otherwise to legally direct its actions;
C. "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;
15. �company" means any entity constituted or organized under applicable law, whether or not
for profit, and whether privately or governmentally owned or controlled, and includes a
corporation, trust, partnership, sole proprietorship, branch, joint venture, association, or
other organization;
16. �enterprise� means a company.
-F1-
ANNEX F
ANNEX ON FINANCIAL SERVICES, ANNEX ON MOVEMENT
OF NATURAL PERSONS, ANNEX ON TELECOMMUNICATIONS,
AND TELECOMMUNICATIONS REFERENCE PAPER
Annex on Financial Services
The Parties agree that the Annex on Financial Services to the WTO Agreement on Trade in Services
(GATS) is hereby incorporated into this Agreement by reference, mutatis mutandis, as if its
provisions were fully set forth herein, with the exceptions of Paragraph 3 and Paragraph 4 of such
Annex which shall not be so incorporated.
For greater clarity, the Parties understand that:
1. References in the Annex on Financial Services to the GATS to �Member� and �Members�
shall mean �Party� and �Parties,� respectively, in this Agreement; and
2. References in the Annex on Financial Services to the GATS to Article 1 of the GATS shall
mean Article 1 of Chapter III of this Agreement.
Annex on Movement of Natural Persons
The Parties agree that the Annex on the Movement of Natural Persons to the WTO Agreement on
Trade in Services (GATS) is hereby incorporated into this Agreement by reference, mutatis
mutandis, as if its provisions were fully set forth herein.
For greater clarity, the Parties understand that:
1. References in the Annex on the Movement of Natural Persons to the GATS to �Member�
and �Members� shall mean �Party� and �Parties,� respectively, in this Agreement;
2. References in the Annex on the Movement of Natural Persons to the GATS to the
�Agreement� shall mean Chapter III of this Agreement; and
3. References in the Annex on the Movement of Natural Persons to the GATS to �Parts III
and IV of the Agreement� shall mean Articles 5, 6, 7 and 8 of Chapter III of this
Agreement.
Annex on Telecommunications
The Parties agree that the Annex on Telecommunications to the WTO Agreement on Trade in
Services (GATS) is hereby incorporated into this Agreement by reference, mutatis mutandis, as if
its provisions were fully set forth herein, with the exceptions of Paragraph 6 and Paragraph 7 of
such Annex which shall not be so incorporated.
-F2-
For greater clarity, the Parties understand that references in the Annex on Telecommunications to
the GATS to �Member� and �Members� shall mean �Party� and �Parties,� respectively, in this
Agreement.
Telecommunications Reference Paper
The Parties agree that the Telecommunications Reference Paper (�Reference Paper�) to the WTO
Agreement on Trade in Services (GATS), as contained in the attachment to WTO document
GATS/SC/90/Suppl.2, is hereby incorporated into this Agreement by reference, mutatis mutandis,
as if its provisions were fully set forth herein.
For greater clarity, the Parties understand that references in such Reference Paper to �Member� and
�Members� shall mean �Party� and �Parties,� respectively, in this Agreement.
-G1-
ANNEX G
UNITED STATES
Listing of Article 2 Exemptions
The United States� Listing of Article 2 Exemptions is the authentic List of Article II
(MFN) Exemptions of the United States of America to the WTO General Agreement on
Trade in Services (�GATS�), as amended from time to time.
Schedule of Specific Commitments of Trade in Services
1. Except as provided in paragraph 2, the Schedule of the United States is the authentic
Schedule of Specific Commitments of the United States of America to the WTO General
Agreement on Trade in Services (�GATS�), as amended from time to time.
2. With respect to the financial services described in subparagraphs (x) and (xi) of
paragraph 5(a) of the GATS Annex on Financial Services, as incorporated into this
Agreement by reference, the Schedule of the United States is the authentic Schedule of
Specific Commitments of the United States of America to the WTO GATS, as amended
from time to time, with the following modifications:
A. with respect to mode 1) (cross-border trade), the United States shall be unbound
for the market access column;
B. with respect to mode 3) (commercial presence), only the establishment of
representative offices shall be permitted.
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CHAPTER IV
DEVELOPMENT OF INVESTMENT RELATIONS
Article 1
Definitions
For the purpose of this Chapter, Annex H, the exchanged letters on Investment Licensing Regime,
and, with respect to a covered investment, Articles 1 and 4 of Chapter VII:
1. "investment" means every kind of investment in the territory of a Party owned or controlled
directly or indirectly by nationals or companies of the other Party, and includes investment
consisting or taking the form of:
A. a company or enterprise;
B. shares, stock, and other forms of equity participation, and bonds, debentures, and
other forms of debt interests, in a company;
C. contractual rights, such as under turnkey, construction or management contracts,
production or revenue sharing contracts, concessions, or other similar contracts;
D. tangible property, including real property, and intangible property, including rights,
such as leases, mortgages, liens and pledges;
E. intellectual property, including copyrights and related rights, trademarks, patents,
layout designs (topographies) of integrated circuits, encrypted program-carrying
satellite signals, confidential information (trade secrets), industrial designs and rights
in plant varieties; and
F. rights conferred pursuant to law, such as licenses and permits;
2. "company" means any entity constituted or organized under applicable law, whether or not
for profit, and whether privately or governmentally owned or controlled, and includes a
corporation, trust, partnership, sole proprietorship, branch, joint venture, association, or
other organization;
3. "company of a Party" means a company constituted or organized under the laws of that
Party;
4. "covered investment" means an investment of a national or company of a Party in the
territory of the other Party;
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5. "state enterprise" means a company owned, or controlled through ownership interests, by
a Party;
6. "investment authorization" means an authorization granted by the foreign investment
authority of a Party to a covered investment or a national or company of the other Party;
7. "investment agreement" means a written agreement between the national authorities of a
Party and a covered investment or a national or company of the other Party that (i) grants
rights with respect to natural resources or other assets controlled by the national authorities
and (ii) the investment, national or company relies upon in establishing or acquiring a
covered investment;
8. "UNCITRAL Arbitration Rules" means the arbitration rules of the United Nations
Commission on International Trade Law;
9. "national" of a Party means a natural person who is a national of a Party under its applicable
law;
10. an "investment dispute" is a dispute between a Party and a national or company of the
other Party arising out of or relating to an investment authorization, an investment
agreement or an alleged breach of any right conferred, created or recognized by this
Chapter, Annex H, the exchanged letters on Investment Licensing Regime, and Articles 1
and 4 of Chapter VII with respect to a covered investment;
11. �non-discriminatory� treatment means treatment that is at least as favorable as the better of
national treatment or most favored nation treatment;
12. �ICSID Convention� means the Convention on the Settlement of Investment Disputes
between States and Nationals of Other States, done at Washington, March 18, 1965; and
13. �Centre� means the International Centre for Settlement of Investment Disputes Established
by the ICSID Convention.
Article 2
National Treatment and Most-Favored Nation Treatment
1. With respect to the establishment, acquisition, expansion, management, conduct, operation
and sale or other disposition of covered investments, each Party shall accord treatment no
less favorable than that it accords, in like situations, to investments in its territory of its own
nationals or companies (hereinafter "national treatment") or to investments in its territory
of nationals or companies of a third country (hereinafter "most favored nation treatment"),
whichever is most favorable (hereinafter "national and most favored nation treatment").
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Each Party shall ensure that its state enterprises, in the provision of their goods or services,
accord national and most favored nation treatment to covered investments, subject to the
provisions of paragraph 4.3 of Annex H.
2. A. A Party may adopt or maintain exceptions to the obligations of paragraph 1 in the
sectors or with respect to the matters specified in Annex H to this Agreement. In
adopting such an exception, a Party may not require the divestment, in whole or in
part, of covered investments existing at the time the exception becomes effective.
B. The obligations of paragraph 1 do not apply to procedures provided in multilateral
agreements concluded under the auspices of the World Intellectual Property
Organization relating to the acquisition or maintenance of intellectual property
rights.
Article 3
General Standard of Treatment
1. Each Party shall at all times accord to covered investments fair and equitable treatment and
full protection and security, and shall in no case accord treatment less favorable than that
required by applicable rules of customary international law.
2. Each Party shall in no way impair by unreasonable and discriminatory measures the
management, conduct, operation and sale or other disposition of covered investments.
Article 4
Dispute Settlement
1. Each Party shall provide companies and nationals of the other Party with an effective means
of asserting claims and enforcing rights with respect to covered investments.
2. In the event of an investment dispute, the parties to the dispute should attempt to resolve
the dispute through consultation and negotiation, which may include the use of non-binding
third-party procedures. Subject to paragraph 3 of this Article, if the dispute has not been
resolved through consultation and negotiations, a national or company of one Party that is
a party to an investment dispute may submit the dispute for resolution under one of the
following alternatives:
A. to the competent courts or administrative tribunals of the Party in the territory of
which the covered investment has been made; or
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B. in accordance with any applicable, previously agreed dispute-settlement procedures;
or
C. in accordance with the terms of paragraph 3.
3. A. Provided that the national or company concerned has not submitted the dispute for
resolution under sub-paragraph 2.A or B, and that ninety days have elapsed from the
date on which the dispute arose, the national or company concerned may submit the
dispute for settlement by binding arbitration:
(i) to the Centre, if both Parties are members of the ICSID Convention and the
Centre is available; or
(ii) to the Additional Facility of the Centre, if the Additional Facility is available;
or
(iii) in accordance with the UNCITRAL Arbitration Rules; or
(iv) if agreed by both parties to the dispute, to any other arbitration institution
or in accordance with any other arbitration rules.
B. A national or company, notwithstanding that it may have submitted a dispute to
binding arbitration under sub-paragraph 3.A, may seek interim injunctive relief, not
involving the payment of damages, before the judicial or administrative tribunals of
a Party, prior to the institution of the arbitral proceeding or during the proceeding,
for the preservation of rights and interests.
4. Each Party hereby consents to the submission of any investment dispute for settlement by
binding arbitration in accordance with the choice of the national or company under subparagraph
3.A(i), (ii), (iii) or the mutual agreement of both parties to the dispute under subparagraph
3.A(iv). This consent and the submission of the dispute by a national or company
under sub-paragraph 3.A shall satisfy the requirement of:
A. Article II of the United Nations Convention on the Recognition and Enforcement
of Foreign Arbitral Awards, done at New York, June 10, 1958, for an "agreement
in writing;" and
B. Chapter II of the ICSID Convention (Jurisdiction of the Centre) and the Additional
Facility Rules for written consent of the parties to the dispute.
5. Any arbitration under sub-paragraph 3.A(ii), (iii) and (iv) shall be held in a state that is a
party to the United Nations Convention on the Recognition and Enforcement of Foreign
Arbitral Awards, done at New York, June 10, 1958.
6. Any arbitral award rendered pursuant to this Chapter shall be final and binding on the
parties to the dispute. Each Party shall carry out without delay the provisions of any
such award and provide in its territory for the enforcement of such award. Each Party�s
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enforcement of an arbitral award issued in its territory shall be governed by its national
law.
7. In any proceeding involving an investment dispute, a Party shall not assert, as a defense,
counterclaim, right of set-off, or for any other reason, that indemnification or other
compensation for all or part of the alleged damages has been received or will be received
pursuant to an insurance or guarantee contract.
8. For the purposes of this Article and of Article 25(2)(b) of the ICSID Convention with
respect to a covered investment, a company of a Party that, immediately before the
occurrence of the event or events giving rise to an investment dispute, was a covered
investment, shall be treated as a company of the other Party.
Article 5
Transparency
Each Party shall ensure that its laws, regulations and administrative procedures of general
application that pertain to or affect investments, investment agreements, and investment
authorizations are promptly published or otherwise made publicly available.
Article 6
Special Formalities
This Chapter shall not preclude a Party from prescribing special formalities in connection with
covered investments, such as a requirement that such investments be legally constituted under the
laws and regulations of that Party, or a requirement that transfers of currency or other monetary
instruments be reported, provided that such formalities shall not impair the substance of any of the
rights set forth in this Chapter, Annex H, the exchanged letters on Investment Licensing Regime,
and, with respect to a covered investment, Articles 1 and 4 of Chapter VII.
Article 7
Technology Transfer
Neither Party shall mandate or enforce, as a condition for the establishment, acquisition,
expansion, management, conduct or operation of a covered investment, any requirement
(including any commitment or undertaking in connection with the receipt of a government
permission or authorization) to transfer technology, a production process or other proprietary
knowledge except:
1. when applying generally applicable environmental laws that are consistent with the
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provisions of this Agreement; or
2. pursuant to an order, commitment or undertaking that is enforced by a court,
administrative tribunal or competition authority to remedy an alleged or adjudicated
violation of competition laws.
Article 8
Entry, Sojourn and Employment of Aliens
1. Each Party shall permit nationals and companies of the other Party to transfer employees
of any nationality, subject to the Party's laws relating to the entry and sojourn of aliens,
to their operations in the territory of the Party in the event that those employees are
executives or managers or possess specialized knowledge relating to those operations.
2. Each Party shall permit nationals and companies of the other Party to engage, within the
territory of that Party, top managerial personnel of their choice, regardless of nationality,
subject to the Party�s laws relating to the entry and sojourn of aliens.
3. The foregoing paragraphs shall not preclude a Party from applying its labor laws, so long
as they do not impair the substance of the rights granted under this Article.
Article 9
Preservation of Rights
This Chapter, Annex H, the exchanged letters on Investment Licensing Regime, and, with respect
to a covered investment, Articles 1 and 4 of Chapter VII, shall not derogate from any of the
following that entitle covered investments in like situations to treatment more favorable than that
accorded herein:
1. laws, regulations and administrative procedures, or administrative or adjudicatory decisions
of a Party;
2. international legal obligations; or,
3. obligations assumed by a Party, including those contained in an investment agreement or
investment authorization.
Article 10
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Expropriations and Compensation for War Damages
1. Neither Party shall expropriate or nationalize investments either directly or indirectly
through measures tantamount to expropriation or nationalization ("expropriation�) except
for a public purpose; in a non-discriminatory manner; upon payment of prompt, adequate
and effective compensation; and in accordance with due process of law and the general
principles of treatment provided for in Article 3. Compensation shall be equivalent to the
fair market value of the expropriated investment immediately before the expropriatory
action was taken; be paid without delay; include interest at a commercially reasonable rate
from the date of expropriation; be fully realizable; and be freely transferable at the prevailing
market rate of exchange on the date of expropriation. The fair market value shall not
reflect any change in value occurring because the expropriatory action had become known
before the date of expropriation.
2. Each Party shall accord national and most favored nation treatment to covered investments
as regards any measure relating to losses that investments suffer in its territory owing to war
or other armed conflict, revolution, state of national emergency, insurrection, civil
disturbance, or similar events.
3. Each Party shall accord restitution, or pay compensation in accordance with paragraph 1,
in the event that covered investments suffer from losses in its territory, owing to war or
other armed conflict, revolution, state of national emergency, insurrection, civil disturbance,
or similar events, that result from:
A. requisitioning of all or part of such investments by the Party's forces or authorities,
or
B. destruction of all or part of such investments by the Party's forces or authorities that
was not required by the necessity of the situation.
Article 11
Trade -Related Investment Measures
1. Subject to the provisions of paragraph 2, neither Party shall apply any trade-related
investment measures (TRIMs) which are inconsistent with the Agreement on Trade-
Related Investment Measures of the WTO. The illustrative list of TRIMs set forth in the
WTO Agreement on TRIMs (�the List�) is contained in Annex I of this Agreement.
TRIMs contained on the List will be considered inconsistent with this Article regardless
of whether they are imposed in laws, regulations, or as conditions for individual
investment contracts or licenses.
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2. The Parties agree to eliminate all TRIMs (including those contained in laws, regulations,
contracts or licenses) which fall under sub-paragraphs 2(A) (trade balancing
requirements) and 2(B) (foreign exchange controls on imports) of the List by the time
this Agreement enters into force. Vietnam shall eliminate all other TRIMs no later than
five years after the date of entry into force of the Agreement, or the date required under
the terms and conditions of Vietnam's accession to the WTO, whichever occurs first.
Article 12
Application to State Enterprises
A Party's obligations shall apply to a state enterprise in the exercise of any regulatory,
administrative or other governmental authority delegated to it by that Party.
Article 13
Future Negotiation of Bilateral Investment Treaty
The Parties will endeavor to negotiate a bilateral investment treaty in good faith within a reasonable
period of time.
Article 14
Application to Covered Investments
The provisions of this Chapter, Annex H, the exchanged letters on Investment Licensing Regime,
and Articles 1 and 4 of Chapter VII shall apply to covered investments existing at the time of entry
into force as well as to those established or acquired thereafter.
Article 15
Denial of Benefits
Each Party reserves the right to deny to a company of the other Party the benefits of this
Chapter and Chapter V of this Agreement if nationals of a third country own or control the
company and
1. the denying Party does not maintain normal economic relations with the third country; or
2. the company has no substantial business activities in the territory of the Party under
whose laws it is constituted or organized.
-H1-
ANNEX H
VIETNAM
In accordance with the provisions in Article 2 of Chapter IV, the Government of the Socialist
Republic of Vietnam reserves the right to adopt or maintain exceptions to national treatment in the
following sectors and matters:
1. Vietnam may adopt or maintain exceptions to the obligation to accord national treatment
to covered investments in the sectors or with respect to the matters specified below:
Broadcasting, television; production, publication and distribution of cultural
products; investment in insurance; banking; brokerage, dealership in securities and
currency values, and other related services; mineral exploration and exploitation;
construction, installation, operation and maintenance of telecommunication facility;
construction and operation of inland water, sea and air ports; cargo and passenger
transportation by railway, airway, road, sea and inland water-way transportation;
fishing and fish catching; real estate business.
2. Sectors in which Vietnam may require that an investment project be in conjunction with the
development of local raw material sources:
Processing of paper, vegetable oil, milk, cane sugar, wood processing (except for
projects using imported wood).
Such requirements for the development of local raw material sources in the above
sectors may be maintained for up to 5 years from the entry into force of this Agreement.
3. Sectors in which Vietnam may require that an investment project export at least 80% of
products:
Cement production; paints and construction paints; toiletry tiles and ceramics;
PVC and other plastics; footwear; clothing; construction steel; detergent
powder; tires and inner tubes for automobile and motor bikes; NPK fertilizer;
alcoholic products; tobacco; papers (including printing, and writing paper,
photocopy).
Such requirements for exporting at least 80% of products in the above sectors
may be maintained for up to 7 years from the entry into force of this Agreement.
4. Except as otherwise provided in this Paragraph (including sub-paragraphs 4.1-4.6), the
following exceptions to national treatment shall be applied to a covered investment of a
national or company of the United States in all sectors, including but not limited to those
sectors listed in paragraphs 1, 2 and 3 of this Annex:
-H2-
4.1 Requirements on investment capital:
(a) After the entry into force of this Agreement, nationals or companies of the
United States shall be allowed to contribute, increase and reinvest capital in any
currency, including Vietnamese currency originating from any lawful activity in
Vietnam.
(b) The following requirements may be maintained for up to 3 years from the entry
into force of this Agreement:
(i) Nationals or companies of the United States must contribute at least 30%
of the legal capital of a joint venture unless a lower contribution is
approved by the investment licensing agencies;
(ii) The legal capital of a U.S.-owned enterprise shall not be less than 30% of
investment capital unless a lower proportion is approved by the
investment licensing agencies;
(iii) A national or company of the United States that is a party to a joint
venture with a Vietnamese national or company shall give a right of first
refusal to the Vietnamese party with respect to the transfer of an interest
in the joint venture. An enterprise in Vietnam that is 100% owned by
U.S. nationals or companies shall give a right of first refusal to
Vietnamese nationals or companies with respect to the transfer of any
interest in the enterprise. In any such case, the right of first refusal may
be exercised only if the offer of the Vietnamese national or company is
the same in all material terms with an offer received from any third party,
including with respect to purchase price, timing and method of payment.
Any such transfer shall require the approval of the investment licensing
agencies; and
(iv) Nationals or companies of the United States are not yet allowed to establish
a joint stock company. An enterprise in Vietnam that is invested or owned
by U.S. nationals or companies may not issue bonds or shares to the public
in Vietnam.
(c) Nationals and companies of the United States shall not be permitted to acquire more
than 30% of the shares of an equitized State enterprise.
4.2 Organization and management of joint ventures:
Vietnam may maintain the following requirements for up to 3 years from the entry into force
of this Agreement:
-H3-
(a) The General Director or First Deputy General Director must be Vietnamese
citizens; and
(b) A limited number of the most important matters which relate to the organization and
operation of the enterprise, comprising the appointment or dismissal of General
Director, First Deputy General Director, Chief Accountant; amendments of and
additions to the charter of the enterprise; approval of final annual financial
statements and financial statement of capital construction; and loan for investment
shall be decided on the basis of consensus.
4.3 Prices and fees of some goods and services under the State�s control:
Vietnam is in the process of reforming its pricing system in order to develop a
uniform set of fees and prices. With a view to creating a more attractive, nondiscriminatory
business environment, Vietnam shall:
(a) upon the entry into force of this Agreement, (i) refrain from imposing new or more
onerous discriminatory prices and fees; and (ii) eliminate, discriminatory prices and
fees for the installation of telephones, telecommunications services (other than the
subscription charge for local telephone service), water, and tourist services;
(b) within two (2) years of the entry into force of this Agreement, eliminate,
progressively, discriminatory prices and fees for registration of motor vehicles,
international port charges, and for the subscription charge for local telephone
service; and
(c) within four (4) years of the entry into force of this Agreement, eliminate,
progressively, discriminatory prices and fees for all other goods and services
including, without limitation, electricity and air transport.
4.4 Government subsidies and supports:
Government subsidies and supports granted to domestic enterprises, which include land
allocation for investment projects, preferential credits, research and development and
education assistance programs and other forms of Government supports, may not be
made available to nationals or companies of the United States.
4.5 Ownership, use of land and residences:
(a) Nationals and companies of the United States are not allowed to own land and
residences. U.S. investors are allowed only to lease land for investment purposes.
-H4-
(b) U.S. enterprises are not yet allowed either to mortgage land use rights at foreign
credit institutions operating in Vietnam or to transfer land use rights except for the
case of transfers of invested assets associated with the land within the land lease
period.
4.6 Notwithstanding the above reservations to national treatment for the ownership and use of
land and residences, Vietnam shall create favorable conditions in exercising the mortgage
and transfer of land use rights relating to covered investments including the elimination,
within 3 years from the entry into force of this Agreement, of the restrictions on mortgage
and transfer of land use rights mentioned in sub-paragraph 4.5(b).
8With respect to the treatment accorded by a State, Territory or Possession of the
United States, national treatment means treatment no less favorable than the treatment accorded
thereby, in like situations, to investments of nationals of the United States resident in, and
companies legally constituted under the laws and regulations of other States, Territories or
Possessions of the United States.
-H5-
ANNEX H
UNITED STATES
1. The Government of the United States of America may adopt or maintain exceptions to the
obligation to accord national treatment8 to covered investments in the sectors or with
respect to the matters specified below:
atomic energy; customhouse brokers; licenses for broadcast, common carrier, or
aeronautical radio stations; COMSAT; subsidies or grants, including
government-supported loans, guarantees and insurance; landing of
submarine cables; and state and local measures as to which the United States may
adopt or maintain exceptions to national treatment under any of its bilateral
investment treaties signed between 1 January 1995, and the date of entry into force
of this Agreement.
Most favored nation treatment shall be accorded in the sectors and matters indicated
above.
2. The Government of the United States of America may adopt or maintain exceptions to
the obligation to accord national and most favored nation treatment to covered
investments in the sectors or with respect to the matters specified below:
fisheries; air and maritime transport, and related activities; banking, insurance,
securities, and other financial services; leasing of minerals and pipeline rightsof-
way on government lands; and one-way satellite transmissions of direct-tohome
(DTH) and direct broadcast satellite (DBS) television services and of
digital audio services.
-I1-
ANNEX I
TRIMs -- Illustrative List
1. TRIMs that are inconsistent with the obligation of national treatment provided for in
paragraph 4 of Article III of GATT 1994 include those which are mandatory or enforceable
under domestic law or under administrative rulings, or compliance with which is necessary
to obtain an advantage, and which require:
A. the purchase or use by an enterprise of products of domestic origin or from any
domestic source, whether specified in terms of particular products, in terms of
volume or value of local products, or in terms of a proportion of volume or value
of its local production; or
B. that an enterprise�s purchases or use of imported products be limited to an amount
related to the volume or value of local products that it exports.
2. TRIMs that are inconsistent with the obligation of general elimination of quantitative
restrictions provided for in paragraph 1 of Article XI of GATT 1994 include those which
are mandatory or enforceable under domestic law or under administrative rulings, or
compliance with which is necessary to obtain an advantage, and which restrict:
A. the importation by an enterprise of products used in or related to its local
production, generally or to an amount related to the volume or value of local
production that it exports;
B. the importation by an enterprise of products used in or related to its local
production by restricting its access to foreign exchange to an amount related to the
foreign exchange inflows attributable to the enterprise; or
C. the exportation or sale for export by an enterprise of products, whether specified in
terms of particular products, in terms of volume or value of products, or in terms
of a proportion of volume or value of its local production.
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CHAPTER V
BUSINESS FACILITATION
Article 1
1. To facilitate business activity, and subject to the provisions of Chapters I (including
Annexes A, B, C, D and E), III (including Annexes F and G) and IV (including Annexes
H and I) of this Agreement, each Party shall:
A. permit nationals and companies of the other Party to import and use, in
accordance with normal commercial practices, office and other equipment, such
as typewriters, photocopiers, computers and facsimile machines in connection
with the conduct of their activities in the territory of such Party;
B. subject to its laws and procedures governing immigration and foreign missions,
permit, on a nondiscriminatory basis and at market prices, nationals and
companies of the other Party access to and use of office space and living
accommodations;
C. subject to its laws, regulations and procedures governing immigration and
foreign missions, permit nationals and companies of the other Party to engage
agents, consultants and distributors of either Party, on prices and terms mutually
agreed between the parties, for their production and covered investments;
D. permit nationals and companies of the other Party to advertise their products and
services (i) through direct agreement with the advertising media, including
television, radio, print and billboard, and (ii) by direct mail, including the use of
enclosed envelopes and cards pre-addressed to that national or company;
E. encourage direct contact, and permit direct sales, between nationals and
companies of the other Party and end-users and other customers of their goods
and services, and encourage direct contacts with agencies and organizations
whose decisions will affect potential sales;
F. permit nationals and companies of the other Party to conduct market studies,
either directly or by contract, within its territory;
G. permit nationals and companies of the other Party to stock an adequate supply of
samples and replacement parts for after-sales service for covered investment
products; and
H. provide non-discriminatory access to governmentally-provided products and
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services, including public utilities, to nationals and companies of the other Party
at fair and equitable prices (and in no event at prices greater than those charged
to any nationals or companies of third countries where such prices are set or
controlled by the government in connection with the operation of their
commercial representations).
Article 2
For purposes of this Chapter, the term �nondiscriminatory� means treatment that is at
least as favorable as the better of national treatment or most favored nation treatment.
Article 3
In case of conflict between any provision of this Chapter and any provision of Chapters I
(including Annexes A, B, C, D and E), III (including Annexes F and G) and IV
(including Annexes H and I), the provision of the Chapters I, III and IV shall control to
the extent of the conflict.
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CHAPTER VI
TRANSPARENCY-RELATED PROVISIONS AND RIGHT TO APPEAL
Article 1
Each Party shall publish on a regular and prompt basis all laws, regulations and
administrative procedures of general application pertaining to any matter covered by this
Agreement. Publication of such information and measures will be in a manner which
enables governmental agencies, enterprises and persons engaged in commercial activity to
become acquainted with them before they come into effect and to apply them in accordance
with their terms. Each such publication shall include the effective date of the measure, the
products (by tariff line) or services affected by the measure, and all authorities that must
approve or be consulted in the implementation of the measure, and provide a contact point
within each authority from which relevant information can be obtained.
Article 2
Each Party shall provide nationals and companies of the other Party with access to data on
the national economy and individual sectors, including information on foreign trade. The
provisions of this paragraph and the preceding paragraph do not require disclosure of
confidential information which would impede law enforcement or otherwise be contrary to
the public interest, or would prejudice the legitimate commercial interests of particular
enterprises, public or private. For the purposes of this Agreement, confidential information
that would prejudice the legitimate commercial interests of particular enterprises means
specific information concerning the importation of a product that would have a significant
adverse effect on the price or quantity available of such product, but shall not include
information required to be disclosed under the agreements administered by the WTO.
Article 3
Each Party shall allow, to the extent possible, the other Party and its nationals the
opportunity to comment on the formulation of laws, regulations and administrative
procedures of general application that may affect the conduct of business activities
covered by this Agreement.
Article 4
All laws, regulations and administrative procedures of general application referred to in
paragraph 1 of this Article that are not published and readily available to other governments
and persons engaged in commercial activities as of the date of signature of this Agreement
will be made public and readily and quickly available. Only laws, regulations and
administrative procedures of general application that are published and readily available to
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other governments and persons engaged in commercial activity will be enforced and
enforceable.
Article 5
The Parties shall have or designate an official journal or journals and all measures of general
application shall be published in such journals. The Parties will publish such journals on a
regular basis and make copies of them readily available to the public.
Article 6
The Parties shall administer, in a uniform, impartial and reasonable manner all their
respective laws, regulations and administrative procedures of general application of all the
types described in paragraph 1 of this Article.
Article 7
The Parties will maintain administrative and judicial tribunals and procedures for the
purpose, inter alia, of the prompt review and correction (upon the request of an affected
person) of administrative action relating to matters covered by this Agreement. These
procedures shall include the opportunity for appeal, without penalty, by persons affected by
the relevant decision. If the initial right of appeal is to an administrative body, there shall
also be the opportunity for appeal of the decision to a judicial body. Notice of the decision
on appeal shall be given to the appellant and the reasons for such decision shall be provided
in writing. The appellant shall also be informed of the right to any further appeal.
Article 8
The Parties shall ensure that all import licensing procedures, both automatic and
non-automatic, are implemented in a transparent and predictable manner, and in
accordance with the standards of the WTO Agreement on Import Licensing
Procedures.
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CHAPTER VII
GENERAL ARTICLES
Article 1
Cross-Border Transactions and Transfers
1. Unless otherwise agreed between the parties to such transactions, all cross-border
commercial transactions, and all transfers of currencies relating to a covered investment,
shall be made in United States dollars or any other currency that may be designated from
time to time by the International Monetary Fund as being a freely usable currency.
2. In connection with trade in products and services, each Party shall grant to nationals and
companies of the other Party the better of most-favored-nation or national treatment with
respect to:
A. opening and maintaining accounts, in both local and foreign currency, and having
access to funds deposited in financial institutions located in the territory of the Party;
B. payments, remittances and transfers of currencies convertible into freely usable
currency at a market rate of exchange or financial instruments representative
thereof, between the territories of the two Parties, as well as between the territory
of that Party and that of any third country;
C. rates of exchange and related matters, including access to freely usable currencies.
3. Each Party shall grant to covered investments of the other Party the better of national or
most favored nation treatment with respect to all transfers into and out of each Party's
territory. Such transfers include:
A. contributions to capital;
B. profits, dividends, capital gains, and proceeds from the sale of all or any part of the
investment or from the partial or complete liquidation of the investment;
C. interest, royalty payments, management fees, and technical assistance and other fees;
D. payments made under contract, including a loan agreement;
E. compensation pursuant to Article 10 of Chapter IV and payments arising out of an
investment dispute.
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4. In all cases, treatment of cross-border transactions and transfers will be consistent with each
Party�s obligations to the International Monetary Fund.
5. Each Party shall permit returns in kind to be made as authorized or specified in an
investment authorization, investment agreement, or other written agreement between the
Party and a covered investment or a national or company of the other Party.
6. Notwithstanding paragraphs 1 through 5, a Party may prevent a transfer through the
equitable, non-discriminatory and good faith applications (including the seeking of
preliminary relief, such as judicial injunctions and temporary restraining orders) of its law
relating to:
A. bankruptcy, insolvency or the protection of the rights of creditors;
B. issuing, trading or dealing in securities, futures, options, or derivatives;
C. reports or records of transfers;
D. criminal or penal offenses; or
E. ensuring compliance with orders or judgments in judicial or administrative
proceedings.
7. The provisions of this Article relating to financial transfers shall not preclude:
A a requirement that a national or company (or its covered investment) comply with
customary banking procedures and regulations, provided that they do not impair the
substance of the rights granted under this Article;
B. prudential measures in order to protect the interests of creditors and to ensure the
stability and integrity of the national financial system.
Article 2
National Security
This Agreement shall not preclude a Party from applying measures that it considers to be necessary
for the protection of its own essential security interests. Nothing in this Agreement shall be
construed to require either Party to furnish any information, the disclosure of which it considers
contrary to its essential security interests.
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Article 3
General Exceptions
1. Subject to the requirement that such measures are not applied in a manner which would
constitute a means of arbitrary or unjustifiable discrimination between countries where like
conditions prevail, or a disguised restriction on international trade, nothing in this
Agreement shall be construed to prohibit the adoption or enforcement by either Party of
measures:
A. with respect to Chapter I, Trade in Goods, necessary to secure compliance with
laws or regulations not inconsistent with the provisions of this Agreement, including
measures related to the protection of intellectual property rights and the prevention
of deceptive practices;
B. with respect to Chapter I, Trade in Goods, referred to in Article XX of the GATT
1994; or
C. with respect to Chapter III, Trade in Services, referred to in Article XIV of the
GATS.
2. Nothing in this Agreement shall preclude a Party from applying its laws in respect of foreign
missions as set forth in applicable legislation.
3. Nothing in this Agreement limits the application of any existing or future agreements
between the Parties on trade in textiles and textile products.
Article 4
Taxation
1. No provision of this Agreement shall impose obligations with respect to tax matters, except
that:
A. Chapter I, other than Article 2.1 of such Chapter, shall apply only to taxes other
than direct taxes as defined in paragraph 3 of this Article.
B. Within Chapter IV,
i) Articles 4 and 10.1 will apply with respect to expropriation; and
ii) Article 4 will apply with respect to an investment agreement or an
investment authorization.
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2. With respect to the application of Chapter IV, Article 10.1, an investor that asserts that a
tax measure involves an expropriation may submit that dispute to arbitration pursuant to
Chapter IV, Article 4.3, provided that the investor concerned has first referred to the
competent tax authorities of both Parties the issue of whether that tax measure involves an
expropriation. However, the investor cannot submit the dispute to arbitration if, within nine
months after the date of referral, the competent tax authorities of both Parties determine
that the tax measure does not involve an expropriation.
3. �Direct taxes� comprise all taxes on total income, on total capital or on elements of income
or of capital, including taxes on gains from the alienation of property, taxes on estates,
inheritances and gifts, and taxes on the total amounts of wages or salaries paid by
enterprises, as well as taxes on capital appreciation.
Article 5
Consultations
1. The Parties agree to consult periodically to review the operation of this Agreement.
2. The Parties agree to consult promptly as arranged through appropriate channels at the
request of either Party to discuss any matter concerning the interpretation or implementation
of this Agreement and other relevant aspects of the relations between the Parties.
3. The Parties agree to establish a Joint Committee (�Committee�) on Development of
Economic and Trade Relations between Vietnam and the United States of America. The
Committee�s responsibilities shall include the following:
A. monitoring and securing the implementation of this Agreement and making
recommendations to achieve the objectives of this Agreement;
B. ensuring that a satisfactory balance of concessions is maintained during the life of
this Agreement;
C. serving as the appropriate channel through which the Parties shall consult at the
request of either Party to discuss and resolve matters arising from interpretation or
implementation of this Agreement; and
D. seeking and making proposals on the enhancement and diversification of economic
and trade relations between the two countries.
4. The Committee shall be co-chaired by representatives of the Parties at the ministerial level,
and have members who are representatives from the relevant agencies concerned with the
implementation of this Agreement. The Committee shall meet annually or at the request of
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either Party. The location of the meetings shall alternate between Hanoi and Washington
D.C., unless the Parties agree otherwise. The organization and the terms of reference of the
Committee shall be adopted by the Committee at its first session.
Article 6
Relationship between Chapter IV, Annex H, Exchanged Letters, and Annex G
As to any matter concerning investment in services not specified in Annex G, the provisions of
Annex H shall apply. However, in the event of a conflict between a provision set forth in Chapter
IV, Annex H, or exchanged letters on Investment Licensing Regime, and a provision set forth in
Annex G, the provision set forth in Annex G shall prevail to the extent of the conflict. Annex H and
exchanged letters on Investment Licensing Regime shall not be construed or applied in a manner
that would deprive a Party of rights provided under Annex G.
Article 7
Annexes, Schedules and Exchanged Letters
The Annexes, Schedules, and the exchanged letters on Investment Licensing Regime to this
Agreement constitute an integral part of this Agreement.
Article 8
Final Provisions, Entry into Force, Duration, Suspension and Termination
1. This Agreement shall enter into force on the day on which the Parties have exchanged
notifications that each has completed the legal procedures necessary for this purpose, and
shall remain in force for three years.
2. This Agreement shall be extended for successive terms of three years if neither Party notifies
the other Party of its intent to terminate this Agreement at least 30 days before the end of
a term.
3. If either Party does not have domestic legal authority to carry out its obligations under this
Agreement, either Party may suspend application of this Agreement, or, with agreement of
the other Party, any part of this Agreement, including MFN treatment. In that event, the
Parties will seek, to the fullest extent practicable under domestic law, to minimize
unfavorable effects on existing trade relations between the Parties.
IN WITNESS THEREOF, the undersigned, being duly authorized by their respective
Governments, have signed this Agreement.
 
 
 


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