Thousands of Japanese goods to enjoy zero percent tariff in 2018
Hanoi (VNA) - Thousands of Japanese goods imported into Vietnam will enjoy a zero percent tariff, in line with the Southeast Asian country’s commitments to lower tariffs as outlined in the Vietnam - Japan Economic Partnership Agreement (VJEPA) and the ASEAN - Japan Comprehensive Economic Partnership Agreement (AJCEP) for 2016-19.
Under Vietnam’s new import
tariffs, 5,545 products imported from Japan in 2018 will have lower tax rates
than last year.
Of these products, a zero percent rate will be applied to 456 tariff lines, for
items such as fats, sugar, construction stones, organic chemicals, wood, pulp,
fabrics, pearls, iron, aluminum, tin, hand tools, machinery and equipment,
vehicle parts and musical instruments.
More than two thousand tariffs on Japanese goods will enjoy rate cuts of 50-67
percent this year, while another 2000 tariff categories will see a tax
reduction of 4-45 percent.
The tax rates will be applied to commodities directly transported from Japan to
Vietnam. The items must also meet origin regulations, as stated in the
agreement, and exporters are to have certificates of origin in a form
stipulated by the Vietnamese Ministry of Industry and Trade.
VJEPA was the first bilateral free trade agreement that Vietnam entered into
after the country joined the World Trade Organisation in January 2007. The
agreement covers comprehensive contents, including trade in goods and services,
investment and improvement of the Japan – Vietnam business environment.
When VJEPA came into effect in October 2009, Vietnam committed to eliminating
some 90.6 percent of tariffs for Japanese products within 16 years, while Japan
pledged to eliminate some 94 percent of tariffs for Vietnamese products within
10 years.
Meanwhile, under the AJCEP, the number of tariff lines enjoying import tax
reductions and exemptions this year is 6,201, of which 3,426 lines will have
tax rates of zero percent beginning April 1 this year. They include machinery,
equipment, tools and spare parts, iron, steel, copper, metals and articles of
iron, steel, base metals, fabrics, apparel and other articles.
Vietnam’s key imports from Japan include machinery, equipment, computers,
electronic products, iron and steel. Among other imports from Japan are cloth
materials, petroleum and pharmaceutical products, paper and rubber.-VNA