Vietnam to cut tariffs on Lao imports hinh anh 1Customers visit Thien Nien Ky supermarket at Lao Bao special trading region in Quang Tri Province. (Source: VNA)

Hanoi (VNA) - Many goods imported from Laos will enjoy a reduction of 50 percent of tariffs between February 14, 2016, and October 3, 2020, according to the Ministry of Finance.

The information was released in Circular 216/2015/TT-BTC by the Ministry of Finance about import and tax rates for implementation of bilateral trade agreements between Vietnam and Laos.

The Circular 216 stipulates a list of goods originating from Laos imported into Vietnam that will enjoy a tax reduction of 50 percent under ATIGA (ASEAN Trade in Goods Agreement).

The circular also stipulates that in case export tariffs in the ATIGA are higher than the tariff regulations in the Most Favoured Nation (MNF) Rules, imported goods will be subject to a 50 percent tax reduction under the MNF.

Goods subject to tax reductions will include preserved or cooked poultry and birds' eggs, rice, sugarcane or refined sucrose.

The provisions on non-tariff incentives, the Circular 216 also issues instructions on guidelines and conditions applied for a tariff rate regime at zero percent for tobacco and rice annually.

Specifically, imported items eligible for 50 percent tax incentives, must fulfil the following conditions: It will consist of customs declaration of imported goods from October 3, 2015. Goods must be imported and transported directly from Laos into Vietnam. Imported items must have certificate of origin form S issued by Laos authorities.

If the volume of imported unmanufactured tobacco and tobacco refuse exceeds the quantity of quota regulated by Vietnam's Ministry of Industry and Trade, it will be subject to a tax rate under the Circular No.80/2014/TT-BTC.

This circular dated June 23, 2014. The Ministry of Finance amends and supplements its Circular No. 111/2012/TT-BTC of July 4, 2012, promulgating the list of commodities and their import duty rates for application of tariff quotas.

This circular is to add the over-quota import duty rates of unmanufactured tobacco and tobacco refuse under sub-heading 2401.10.40.

Three kinds of imported rice from Laos will also enjoy tax incentives at 0 percent. Of the rice volume, quota for rice imports is 70,000 tonnes and quota for tobacco imports is 3,000 tonnes, according to Circular 2160.-VNA