Proposal of Vietnam’s special preferential import tariff

This Decree prescribes special preferential import tax rates for the implementation of the ASEAN-India Trade in Goods Agreement under the ASEAN-India Framework Agreement on Comprehensive Economic Cooperation and the conditions for enjoying tax rates. special preferential import under the Agreement.

The Ministry of Finance shall develop a Decree on special preferential import tariffs for the implementation of the ASEAN – India Trade in Goods Agreement for the period 2022 – 2027.

The Ministry of Finance said that, due to the change from the ASEAN Harmonized Tariff Nomenclature 2017 version (AHTN 2017) to AHTN 2022, the tariff includes 50 product codes affected by the change in product codes, separation of lines. For these product lines, the Ministry of Finance has set tax rates on the principle of not eroding international commitments, while ensuring feasibility in implementation.

Some of the main groups of goods subject to tax rate changes when converting the AIFTA Tariff under AHTN 2022 are: molluscs (Class 0307), plants and parts of plants (Class 1211), drugs – pharmaceuticals (heading 3004). ), photographic plates and films (heading 3705), insecticides, herbicides and fungicides (heading 3808), polymers (heading 3903), monofilament plastics (heading 3916), inflatable rubber tires, not second-hand (heading 4011), paper and paperboard (heading 4811).

In which, 68% of the tax lines under AHTN 2017 are separated with 10-digit codes, however, the tax rates have been identical since 2022, so when switching to AHTN 2022, the 8-digit code and tax rates will be kept unchanged.

The remaining cases are all handled according to the plan of separating lines on 8 numbers or finding out the nature of correlation with the 10-digit code of AHTN 2017, which all retain Vietnam’s original commitments in the Agreements.

AIFTA tax rates are built on the principle of complying with Vietnam’s commitment to cut tariffs in the AIFTA Agreement.

In general, the AIFTA Tariff includes 11,156 tax lines (excluding 264 CKD tariff lines), of which 11,139 tax lines are at 8-digit level and 17 tax lines are detailed at 10-digit level.

Regarding the AIFTA tax reduction milestones for the period 2022 – 2027, from December 31, 2021, all tariff lines in Vietnam’s normal list (NT) will be reduced to 0%, items on the list Sensitive (ST) and highly sensitive (HSL) items are cut off by December 31, 2023.

Regarding the special preferential import tax rate: According to the ASEAN – India tariff reduction roadmap, which gradually decreases over the years, the average tax rate is expected to decrease for the period 2022 – 2027 based on the total tariff schedule of the Decree No. about 1.86% (in 2022), 1.81% (in 2023), 1.78% (in 2024) and 1.67% from December 31, 2024 – the last year of the Agreement’s reduction schedule. AIFTA regulations.

The Ministry of Finance also said that the Government’s Decree No. 159/2017/ND-CP dated December 27, 2017 promulgating the Special Preferential Import Tariff of Vietnam to implement the Agreement on Trade in Goods. ASEAN – India period 2018-2022.

Vietnam’s special preferential import tariff for the implementation of the ASEAN – India Trade in Goods Agreement for the period 2022 – 2027 takes effect from December 1, 2022.

Ta Nhi


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