The Ministry of Finance issued Circular No. 169/2014/TT-BTC dated 14 November 2014 prescribing special preferential import tariff to implement ASEAN - India Trade in Goods Agreement (AITIGA) for the period 2015-18 with effect from 01 January 2015 (preferential tax rates under the Agreement referred to as AIFTA Tariff)
The Ministry of Finance issued Circular No. 169/2014/TT-BTC dated 14 November 2014 prescribing special preferential import tariff to implement ASEAN - India Trade in Goods Agreement (AITIGA) for the period 2015-18 with effect from 01 January 2015 (preferential tax rates under the Agreement referred to as AIFTA Tariff).
Under the Agreement commitments, Vietnam must reduce and eliminate tariffs on 6,772 lines in total 9,558 lines of the current preferential import tariff.
The average tax rate of AITIGA Tariff for 2015-18 period is 7.38%/year, 2.15% lower than in 2014, especially in 2018 the tariff for part of the normal list is eliminated in accordance with Vietnam’s commitments in the Agreement. These items include groups of candy, cotton, tea, coffee, rubber, fertilizer, fisheries, animal feed, vegetable, paper, wood, parts and components, the transportation, plastics, chemicals, petroleum, iron and steel, machinery and equipment ...
AIFTA average rate over the years of 2015-18 is respectively as follows: 10.22%; 8:36%; 7.44%; 6.94%; lower than the average MFN tariff in 2014 of 10.42%.
In the case an MFN tariff for an item specified in the Preferential Import Tariff is lower than AIFTA tax rate, the applicable tax rate for this item will be the MFN rate (in this case the business does not need to use AI form and meet the other conditions of this Circular).
From 01 January 2015 import goods to enjoy preferential tax rates under AIFTA need to meet the requirements of origin in accordance with the regulations of the Ministry of Industry and Trade.
Loading...
