Circular 165/2014/TT-BTC issuing ASEAN special preferential import tariff in 2015-18

Circular 165/2014/TT-BTC issuing ASEAN special preferential import tariff in 2015-18 06/01/2015 01:53:00 1507

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ASEAN Trade in Goods Agreement (ATIGA) was signed by member states on 26 February 2009 in the 14th ASEAN Summit in Cha-Am, Thailand. Accordingly, Vietnam will have to basically complete ASEAN tariff elimination in 2015, with only 7% of tariff lines are allowed to be flexible to 2018.

Description: http://www.mof.gov.vn/portal/pls/portal/docs/1666423.JPG

Illustration photo: H.Thọ

ASEAN Trade in Goods Agreement (ATIGA) was signed by member states on 26 February 2009 in the 14th ASEAN Summit in Cha-Am, Thailand. Accordingly, Vietnam will have to basically complete ASEAN tariff elimination in 2015, with only 7% of tariff lines are allowed to be flexible to 2018.

To implement the commitments of Vietnam in ATIGA for the period 2015-18, the Ministry of Finance issued Circular 165/2014/TT-BTC dated 14 November 2014 prescribing ASEAN special preferential import tariff for the period 2015-18.

Up to 2015, Vietnam will cut further 1,715 tariff lines from the current tax rate of 5% to zero, in which about 90% of tariff lines with 0% tax rate (in AHTN2012), and 97% of tariff lines to 0% by 2018. In addition, about 3% of tariff lines in ATIGA are excluded from tariff elimination commitments, including sensitive agricultural commodities (to be allowed to maintain the rate at 5%: poultry, chicken, eggs, citrus fruits, rice, brown rice, processed meats, sugar).

1. Group of items in categories of flexible 7%

Total number of tariff lines to be added to the list of flexible items to 2018 is 669 lines, including sensitive items which require a longer route for protection such as steel, paper, cloth, apparel, automotive, automotive spare parts, machinery, construction materials, furniture ...

2. Commodity groups with particular route

Among the group of flexible 7% to 2018, in addition to the usual items with ATIGA tax rate greater than 0% in 2014 and down to 0% in 2018, there are two groups of particularly sensitive commodities in ASEAN that we have negotiated and are implementing particular roadmap of tax cuts, including automobiles - motorcycles and tobacco products.

+ Roadmap for automobiles - motorcycles

Roadmap for tax cuts for cars, motorbikes as follows:

Import tax

2014

2015

2016

2017

2018

ATIGA

50%

50%

40%

30%

0%

+ Roadmap for tobacco

Temporarily, tobacco items of Vietnam still remains in the list of exclusions, the MFN tariff is applicable for this item.