Many imported items from Cambodia to receive 0% tax

Brown rice is one of the items that applied 0% of tax. Source: Internet

Accordingly, the main items proposed by the Ministry of Finance to have preferential import tariff, such as live poultry; Meat and by-products after slaughtering of poultry; fruit that is the same line of citrus fruit, fresh or dried; rice; meat, by-product in kind of meat or blood offal, prepared or preserved; unprocessed tobacco; scraps of tobacco; two-wheeled bikes and other bikes (including cargo cyclo-tricycle), without engine, etc.

In particular, rice and dried tobacco leaves will only receive preferential tariff in duty quota which equivalent of 300,000 tons and 3,000 tons in 2017. The quota from 2018 onwards will be agreed to continue later.

Regarding the conditions to receive special offers of 0%, the draft Decree stated clearly that: Import goods which have origin from Cambodia and named in the list of goods attracting the special tax rate for preferential import tariff of 0% must have a certificate of origin form S (C/O form S) granted by the competent authorities of the Kingdom of Cambodia; and clearance through the indicated gates mentioned in the Agreement between the two Governments.

For rice, in the case of importing more than the prescribed quotas, the imported quantity exceeding the quota will attract a special tax rate for preferential import tariff ATIGA (Agreement on Trade in Goods of ASEAN) issued in Decree No. 129/2016/ND-CP of the Government or enjoy Most Favoured Nation (MFN) status in accordance with current regulations.

For dried tobacco products, in the case of importing more than prescribed quotas and the imported quantities are less than the total quota of the country and to ensure the conditions stipulated in the normative documents of Vietnam's law on tariff quotas, the imported quantities in excess of the quota will attract the preferential import tax rate (MFN).

Moreover, on October 26^th 2016, representatives of the two Governments signed an agreement to promote bilateral trade between the Government of the Socialist Republic of Vietnam and the Royal Government of Cambodia.

Under this Agreement, Vietnam shall enjoy the import tax rate of 0% which applies to 29 items being imported into the Cambodian market included milk and cream, tapioca, meat products and preparations from rice , candy, paint, plastics, paper, ceramics, steel and steel products.

In contrast, Vietnam will apply the preferential import tax rate of 0% for 39 items of Cambodian goods, mostly agricultural materials that facilitate Vietnamese export enterprises to carry out their export contracts to other countries.

The agreement to promote bilateral trade between Vietnam-Cambodia is expected to push the development of trade relations between the two countries, including trade in agricultural, fishery and industrial products with the aim of improving the lives of people, especially people living in border areas, and contributing to the sustainable economic development of each country, based on the principle of equality and mutual benefit.