4,959 tariff lines on imports from EAEU are 0%
Raw materials for textile are reduced taxes from 2016. Photo Nguyen Hue. |
Taxes on production materials reduced
Vietnam’s import tariff nomenclature is constructed on the basis of the list of exports and imports of Vietnam, including 9,471 tariff lines with HS 8-digit level (excluding 87 CKD tariff lines) with preferential import tariff provided in the agreements on cutting import tariff of Vietnam.
Accordingly, in 2016, import tariffs of 4,959 tariff lines (accounting for 52.4%) have been reduced to 0% from October 5, 2016.
The tariff lines reduced to 0% are mainly inputs for production (raw materials for textile-leather production, and plastic materials, etc) and commodity groups that Vietnam has advantages in export (such as footwear, clothing, seafood, components and electronic products, tea, coffee, and vegetables); rubber products, milk, some types of steel and steel products, chemicals, machinery and equipment, etc.
By 2017, the number of tariff lines with 0% tax rate will not change from 2016. By 2018, there will be an addition of 144 tariff lines reduced to 0%, an increase in the number of tariff lines with 0% to 5,103 tariff lines, accounting for 54% in the nomenclature.
The roadmap for reducing import tariffs in the Vietnam-EAEU FTA Nomenclature is applied in 3 periods: From October 5, 2016 to the end of December 31, 2016; from January 1, 2017 to December 31, 2017 and from January 1, 2018 to the end of December 31, 2018.
In order to enjoy the preferential import tariffs in the framework of this Agreement, imports must meet the conditions of the origin of goods which is defined in Circular No. 21/2016 / TT-BTC of the Ministry of Finance on the implementation of the rules of origin of goods on the basis of the free trade agreement between Vietnam and EAEU.
Defining quotas for eggs and raw tobacco
On the list of goods subject to the preferential import tax rates of Vietnam quotas for 2016 - 2018, Vietnam has committed to apply tariff quotas for 2 of the 4 items of WTO tariff quotas, including eggs and raw tobacco (17 tariff lines).
The quotas for countries in EAEU in 2016 include 8,000 tons of eggs and 500 tons of raw tobacco which are specified by the Ministry of Industry and Trade in Circular No. 16/2016 / TT-BCT on the application of quotas on raw tobacco and eggs originating from the member countries of EAEU in 2016.
The preferential import tax rates for raw tobacco for EAEU will be reduced to 0% in 2018 with a roadmap similar to the ASEAN - Australia - New Zealand free trade agreements (AANZFTA).
In the case where the quotas for EAEU are used up, enterprises shall import eggs and raw tobacco under normal practice including the application of MFN tariff in WTO quotas and the import tariff stipulated in Government Decree 122 / ND-CP on the export tariff, preferential import tariff, the list of goods and absolute tax, mixed taxes, and import tax for goods not on the list of tariff quotas.
Besides, in the field of investment, the Protocols on production of vehicles in Vietnam between the Government of Vietnam and the Government of the Russian Federation and the Government of the Republic of Belarus (on the basis of the terms of the Vietnam-EAEU Agreement) took effect from October 5, 2016.
The companies of these two countries are speeding up to establish joint ventures in Vietnam which will be entitled to enjoy tax exemption for goods on the list of import quotas in accordance with provisions of the Protocol.
Thereby, contributing to the development and improving the competitiveness of domestic enterprises through technology transfer and exchange of knowledge in the field of science and engineering. Moreover, through the agreement, Vietnam has the opportunity to expand and promote investment in member countries of EAEU.
Vietnam tariffs for ASEAN imports go into effect Vietnam’s new import tariff, part of the ASEAN Trade in Goods Agreement (ATIGA) for 2016-18, has come ... |
Thus, the implementation of the commitment of the Vietnam-EAEU Agreement will bring positive effects for Vietnamese economy-society. The agreement will help to expand and strengthen economic relations and trade, and contribute to deepen the strategic partnership between Vietnam and the Russian Federation in the near future.
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