Thousands of goods items to enjoy zero percent tariff in 2018 (Illustrative image. Source VNA) Hanoi (VNA) – Thousands of goods items will enjoy a zero percent import tariff in 2018 in line with Vietnam’s commitments on special preferential import duty rates within the framework of 10 free trade agreements (FTA).
The free trade deals are ASEAN, ASEAN-China, ASEAN-Republic of Korea (RoK), ASEAN-Japan, ASEAN-India, ASEAN-Australia-New Zealand, Vietnam-Japan, Vietnam-RoK, Vietnam-Chile, and Vietnam-Eurasian Economic Union (EAEU).
Deputy head of the International Relations Department under the Ministry of Finance Pham Tuan Anh revealed the information at a press conference in Hanoi on January 5 to introduce ten decrees stipulating preferential import tariffs for the 2018-2023 period.
Under the Vietnam-EAEU FTA decree, 5,535 tariff lines have been reduced to zero percent as of 2018 while 3,720 others are following suit this year such as milk, dairy products, automobile and spare parts, iron and steel, and steel products.
For the ASEAN-China FTA, products to be subjected to the zero percent import tax rate in 2018 includes chicken, coffee, raw tea, processed food, apparel fabrics, clothes, electronic equipment and electrics.
The Vietnam-Japan FTA will see the zero percent rate applied to 456 tariff lines, mainly for the group of fat, sugar, machinery, equipment, and vehicle parts.
Seafood, wheat, confectionery, diesel fuel, machinery and electronic equipment are some of 704 tariff lines that will be cut to zero percent this year under the Vietnam-RoK FTA (KVFTA).
Regarding the ASEAN Trade in Goods Agreement (ATIGA) decree, Vietnam had basically completed the elimination of tariffs within ASEAN by 2015 with only seven percent of tariff lines being cut down to zero percent in 2018, including automobile, motorbike, vehicle components, vegetable oil, tropical fruits, home electronic appliances, milk and dairy products.
Meanwhile, the ATIGA allows keeping a tariff rate of five percent for some sensitive agricultural products such as poultry, chicken, citrus fruits, brown rice, processed meat and sugar.-VNA
VNA
