Nearly 5,000 tariff lines on imports from EAEU was 0%

Nearly 5,000 tariff lines on imports from EAEU was 0%

Nearly 5,000 tariff lines on imports from EAEU was 0%

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According to Decree No. 137/2016 / ND-CP issued preferential import tariff of Vietnam in particular to implement the Free Trade Agreement (FTA) between Vietnam and the Asian Economic Union – Europe (EAEU) and the member states the period from 2016 to 2018: 4959 tariff lines imported from EAEU was about 0%

Textile raw materials is one of the row lines from the 2016.

Import tariff is built on the basis of the list of goods exports and imports of Vietnam, including 9471 tariff lines under HS 8-digit level (excluding CKD 87 tariff lines) at preferential import tax rates especially tax incentives provided for in the roadmap to cut import tariffs of Vietnam attach the signed agreements.

Accordingly, in 2016, import tariffs of 4959 tariff lines (representing 52.4% of total participants) was cut to 0% since 5-10-2016.

The reduction of tariff lines to focus on the commodity groups are inputs for production (raw materials textile-leather, plastic materials …) and the group is the strength of Vietnam exports (shoes Shoes, clothing, seafood, components and electronic products, tea, coffee, vegetables, …); rubber products, milk, some types of steel and steel products, chemicals, machinery and equipment, …

2017, the number of tariff lines with 0% tax rate has not changed compared to 2016. By 2018, an additional 144 tariff lines are reduced import duty rate of 0%, an increase of tariff lines with tariffs 0% import tax on line 5103, accounting for about 54% of the Schedule.

Roadmap to cut import tariffs in Vietnam-EAEU Tariff FTA applies to 3 phase: From 5-10-2016 to end on 31-12-2016; from 1-1-2017 to 31-12-2017 and from all the end 31-12-2018 1-1-2018.

To enjoy the special offers in the framework of this Agreement, imports must meet the conditions of the origin of goods is defined in Circular No. 21/2016 / TT-BTC of the Ministry of Finance on the implementation of the rules of origin of goods in the free trade agreement between Vietnam and EAEU.
Allocate quotas for poultry and raw tobacco

On the list of goods subject to the tax preferential import tax rates especially in Vietnam quota period 2016 – 2018, Vietnam has committed to apply tariff quotas for 2 of the 4 items applicable term commitment WTO tariff quotas, including poultry and raw tobacco (equivalent to 17 tariff lines).

Tariff quotas for these countries in 2016 was 8,000 EAEU dozen poultry eggs and 500 tons of raw tobacco were MOIT specified in Circular No. 16/2016 / TT-BCT on the application of term import tariff quota tobacco and poultry, raw materials originating from the member countries of EAEU 2016.

Tax special preferential import quota for Union Eurasian Economic will be reduced to 0% in 2018 and cut with a roadmap similar to Vietnam’s commitments in trade agreements free ASEAN – Australia – New Zealand (AANZFTA) for raw tobacco items.

After the quotas for EAEU been used up, the importer may import poultry products and raw tobacco under the normal, ie applied MFN tariff rates in the WTO quotas and taxes imports outside the quota interest as stipulated in Decree 122 / ND-CP of the Government on the export tariff, preferential import tariff, the list of goods and absolute rates, mixes tax, import tax export outside the TRQ.
Details of the import tax rates within and outside the quota applicable to imported goods originating in the Union and the Eurasian Economic Member States.

Besides, in the area of investment, the Protocol on production support vehicles with the engine on the territory of Vietnam between the Government of Vietnam and the Government of the Russian Federation and the Government of the Republic of Belarus (by negotiations on the basis of applying the terms of priority investment projects of the Vietnam-EAEU Agreement) was also effective from the date of 5-10-2016.

The companies of these two countries are gearing up to establish joint ventures in Vietnam and soon complete the procedures to record after the establishment of the joint venture will be entitled to duty-free import quota in accordance provisions of the Protocol.

From there, contributing to the development, improve the competitiveness of domestic enterprises through technology transfer and exchange of knowledge in the field of science – engineering. Simultaneously, through the agreement, Vietnam has the opportunity to expand and promote investment into the Union’s member states Eurasian Economic.

Thus, the implementation of the commitment of Vietnam-EAEU Agreement will bring positive effects for the economy – Vietnam society. Agreement is implemented will help to expand and develop economic relations, particularly trade and contribute to deepen the strategic partnership between Vietnam and comprehensive Russian Federation in the near future.