ASEAN – India Free Trade Agreement (AIFTA)
AIFTA was signed on 13 August 2009 in Thailand.
(i) Viet Nam’s commitment to tariff cut
Viet Nam commits to eliminate 80% of tariff lines by the last year of roadmap in 2021 (71% of tariff lines by 2018 and 9% of tariff lines by 2021), 10% of the remaining tariff lines are to be cut by the end of road map (in 2024), the list of exclusion contains 468 tariff lines of 6 digits (making up about 10% of tariff lines).
MOF issued the list of special preferential import tax for ASEAN-India for the period of 2015-2018 enclosed with Circular No.169/2014/TT-BTC dated 14/11/2014 being effective from 01/01/2015.
For the period of 2015-2018, 1.170 of tariff lines have tax rate of 0%, accounting for 12.3% of total tariff lines, including 8 of preferential tariff lines compared to current MFN tariff rate.
Viet Nam will finish the roadmap of commitment to tariff cut/elimination in 2024, with elimination rate of 80% of tariff lines, focusing on item groups: tea, coffee, rubber, vegetable, shoes, home appliances, maritime products, chemicals, metal, iron and steel, minerals, machines, equipment, construction materials.
Items with no commitment (20% of tariff lines) include: eggs, sugar, salt, petrol, oil, fertilizer, plastic, rubber, precious metal, iron, steel, machines, electric equipment, car, motorbike, square parts, and items of national security and defense (firework, gun, opium,...).
(ii) India’s commitment for Viet Nam
India commits to eliminate 80% of tariff lines by 2016 (71% of tariff lines in 2013 and additional 9% of tariff lines by 2016), 10% of tariff lines will finish the partial cut of tax rate by 2019, the list of exclusion accounts for about 10% of tariff lines. Items in India’s commitment to tariff cut include live animals, meat, fish, dairy, vegetable, oil, confectionery, fuit juice, chemical, cosmetics, garment textile accessories, garment textile products, metal items, iron and steel, machine, electric equipment, clocks,.../.