The ASEAN Trade in Goods Agreement (ATIGA)
ATIGA was signed on 26/2/2009 in the 14th ASEAN Summit in Thailand and effective from 17/5/2010. The roadmaps committed by countries are as follows:
- ASEAN 6 (including Brunei, Indonesia, Malaysia, Philippines, Singapore, and Thailand) basically completed the elimination of import tax in 2010
- Countries (Cambodia, Laos, Myanmar and Vietnam) eliminated about 90% of tariff lines in 2015 and 97% in 2018. Furthermore, some sensitive agricultural commodities such as raw sugar, white sugar, rice, chicken meat, pork and supplementary food, canned meat, egg, some fruits…are allowed to remain tariff rate of 5% after 2018
To implement Viet Nam’s commitment in ATIGA, MoF issued Circular 165/2014/TT-BTC dated 14/11/2014 by Minister of Finance on the list of special preferential tariffs for the period of 2015-2018. This circular took effect from 1/1/2015 replacing Circular 161/2011/TT-BTC dated 17/11/2011 by Minister of Finance.
- In the commitment to ATIGA, Viet Nam cut 6897 tariff lines (making up 72% of total import-export tariff lines) to 0% in 2014
- From 1/1/2015, an addition of 1709 tariff lines has been cut to 0%. The rest of 669 tariff lines (7% of total) mainly for sensitive commodities in trading between Viet Nam and ASEAN will be cut to 0% by 2018. They are groups of commodities such as automobiles, auto cycles, spare parts of automobiles and auto cycles, vegetable oil, tropical fruits, home electronics such as fridge, air-conditioner, dairy and dairy products….
- Good remain in the list of exclusion (MFN tariff is applicable) include tobacco, items of national security an defense such as explosive, ammunition, firework, medical garbage, secondhand tire….
- Therefore, the cut of 1706 tariff lines to 0% in 2015 will affect the increase in import turnover and tendency of import movement in ASEAN countries compared to other partners. Meanwhile, the export turnover does not have many chances to gain sudden increase under the impact of tariff liberalization because ASEAN 6 countries cut completely tariff for Vietnam to 0% since 2010.