The Ministry of Finance issued Circular 166/2014/TT-BTC dated 14 November 2014 of the Minister of Finance issuing special preferential import tariff to implement the ASEAN – China Trade in Goods Agreement (ACFTA) in 2015-18, with effect from 01 January 2015, replacing Circular 162/2011/TT-BTC dated 17 November 2011 of the Minister of Finance.
The issued ASEAN - China tariff covers all items that Vietnam committed to cut taxes according to the Agreement, including 9,454 lines of 8-digit tax lines and 37 detailed national 10-digit tax lines.
ASEAN – China tax rate is built based on the principles of compliance with commitments made in the ASEAN – China, Vietnam - China Agreements and MoU.
The average tax rate of ASEAN – China tariff in 2015-17 is 2.26%/year and in 2018 is 1.67%/year. Average tariff in 2015-17 reduced 2.15% compared to 2014 because 2015 is the time all the items on the normal list (except for flexible list agreed in advance) to cut to zero and items in the sensitive list to cut down to 20% as committed by Vietnam in the Agreement. In 2018, Vietnam have to cut the rate of all the items on the normal list to zero and highly sensitive list to 50%.
By 2015, there are 3,691 more tariff lines in ASEAN – China Tariff to be cut to zero compared to 2014, focusing on a number of item groups: oil and grease, plastics & plastic materials, furniture and wood products, machinery, parts and components, computer products and electronic components, fabrics, textile materials, leather, textiles, and one of iron and steel products. The tax rate in 2016, 2017 remains unchanged compared with 2015. In 2018, 588 more tariff lines are to be cut to zero compared to 2015-17, which belong to the pre-agreed flexible list in the Agreement (the ratio of tax lines to be cut to zero will be brought up to 90.3%).
Imported goods to enjoy special preferential tax rate under the ACFTA must meet the requirements of origin in accordance with the regulations of the Ministry of Industry and Trade and belong to the list of countries defined in the Circular.