New tariff for VJEPA available

Wednesday, Sep 21, 2016 18:38

Import goods are loaded onto trucks at a port. The Government has issued several new import tariffs for free trade agreements this month. — Photo

HA NOI (Biz Hub) — Viet Nam's new import tariff, part of the Viet Nam-Japan Economic Partnership Agreement (VJEPA) for 2016-19, has come into force.

Accordingly, the duty for lip and eye make-up products of Japanese exporters will fall from 11 per cent to 4 per cent by the end of March 2019.

The duty will decline from 4-7 per cent to 1-3 per cent for shampoo and from 8-15 per cent to 3-11 per cent for toothpaste.

Tax rates for clothes and accessories for children will be cut from 5.5 per cent to 2 per cent and the rates for blanket, bedspreads and table covers will decline to 1 per cent from 3 per cent.

Several goods such as vitamin, weed killers and emergency aid toolkits will continue to enjoy a zero per cent import tax rate.

Decree No 125/2016/ND-CP, which was issued on September 1 and came into effect the same day, states that the tariff is to be applied for goods directly transported from Japan into Viet Nam.

Special treatment is also given to Viet Nam, in case goods listed under the tariff are imported from non-tariff zones into the domestic market.

Goods must also meet origin regulations, as stated in the agreement, and exporters are to have certificates of origin, in a form stipulated by the Ministry of Industry and Trade.

VJEPA was the first bilateral free trade agreement that Viet Nam 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 business environment.

When VJEPA came into effect in October 2009, Viet Nam committed to eliminate some 90.6 per cent of tariff lines for Japan within 16 years, while Japan pledged to eliminate some 94 per cent of tariff lines for Viet Nam within 10 years.

Kyohei Takahashi, president of the Japan-Viet Nam Economic Committee, said while its working group met Viet Nam's senior leaders in Ha Noi late last month that trade between the two countries had quadrupled since the agreement came into effect.

Among ASEAN member countries, Japan had poured the largest amount of investment into Viet Nam, he added.

Earlier this year, a survey conducted by the Japan Business Federation, or Keidanren, showed that Viet Nam topped the list of countries where Japanese firms intend to invest in the next five to 10 years.

Decrees carrying new tariffs for several other trade deals, including the ASEAN Trade in Goods Agreement and an agreement between Viet Nam and Laos, have also came into force this month.

New tariffs for ASEAN-India, ASEAN-Australia-New Zealand, ASEAN-China and ASEAN-South Korea trade deals are also available. — VNS

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