Immediately cut production tax
The import tariff is built on the basis of Vietnam's List of Import and Export Goods, including 9471 tax lines according to 8-digit HS codes (not including 87 CKD tariff lines) with a favorable import tax rate. Special treatment is the tax rate specified in the schedule of Vietnam's import tax reduction schedule attached to the signed Agreement.
Accordingly, in 2016, the import tax rate of 4,959 tax lines (accounting for 52.4% of the total) was cut to 0% right from October 5, 2016.
The tariff lines are reduced to focus on the groups of goods as input materials for production (raw materials for textile and garment-footwear, plastic materials ...) and commodity groups that are export strengths of Vietnam. (shoes, clothes, seafood, electronic components and products, tea, coffee, vegetables, ...); rubber products, milk, some kinds of steel and iron and steel products, chemicals, machinery, ...
In 2017, the number of tariff lines with 0% tax rate is unchanged compared to 2016. By 2018, there are 144 additional tariff lines to reduce import tax rates to 0%, increasing the total number of tariff lines with tax rates 0% import tax to 5,103 lines, accounting for about 54% of the total.
The roadmap for tariff reduction in the Vietnam Tariff Schedule - EAEU FTA is applied for 3 periods: From 5-10-2016 to the end of December 31, 2016; from 1-1-2017 to the end of 31-12-2017 and from 1-1-2018 to the end of 31-12-2018.
In order to enjoy a special preferential level under this Agreement, imported goods must meet the conditions of origin of goods as stipulated in Circular No. 21/2016 / TT-BTC of the Ministry of Finance intend to implement rules of origin of goods in the Free Trade Agreement between Vietnam and EAEU.
Grant quotas for poultry eggs and tobacco raw materials
Regarding Vietnam's List of goods subject to special preferential import duty rates in the 2016-2018 period, Vietnam committed to apply tariff quotas for 2 out of 4 items committed to apply the term WTO tariffs, including poultry eggs and tobacco raw materials (equivalent to 17 tariff lines).
The amount of tariff quotas for EAEU countries in 2016 is 8,000 dozen poultry eggs and 500 tons of raw tobacco materials specified by the Ministry of Industry and Trade in Circular No. 16/2016 / TT-BCT on the application of term tariff of imported raw tobacco and poultry eggs originating from member countries of EAEU in 2016.
Protocol on supporting production of transport vehicles
In addition, in the field of investment, the Protocol to support production of motor vehicles on the Vietnamese territory between the Government of Vietnam and the Government of the Russian Federation and the Government of the Republic of Belarus (to be negotiating on the basis of applying the terms of the priority investment project of the Vietnam-EAEU Agreement has also been effective from October 5, 2016.
Companies of these two countries are rushing to establish joint ventures in Vietnam and soon complete the application procedures for joint ventures after being established will be entitled to import tax exemption in the quota Protocol of the Protocol.
Since then, contributing to developing and improving the competitiveness of domestic enterprises thanks to technology transfer, knowledge exchange in the fields of science and technology. At the same time, through the Agreement, Vietnam also has the opportunity to promote and expand investment into member countries of the Eurasian Economic Union.
Thus, the implementation of the commitments of the Vietnam-EAEU Agreement will bring positive effects to Vietnam's economy and society. The implemented agreement will help expand and develop economic and trade relations and especially contribute to deepening the comprehensive strategic partnership between Vietnam and the Russian Federation in the future.
Follow: Mai Ly / HQ Online
