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Trade Agreement: Mastering Information for integration - FTA was signed: Phase deep tax cuts

15/12/2014 01:05 PM
Implementation of Trade Agreements (FTA) signed Vietnam, from 2020, the import duty will step into the line stage deep cuts and elimination of tariffs.

Commit liberalize nearly 100%

After 10 years of integration, can be seen, the agreement that Vietnam participants were selected on the basis of a suitable partner for strategic international economic integration by 2020. Specifically, in addition to joining the team world Trade Organization (WTO), Vietnam joined the free trade area consisting of ASEAN (AFTA), ASEAN - China (ACFTA), ASEAN - South Korea (AKFTA), ASEAN - Japan (AJCEP) , Vietnam - Japan (VJEPA), ASEAN - Australia - New Zealand (AANZFTA), ASEAN - India (AIFTA) and Vietnam - Chile (VCFTA). One of the important issues in most of the Agreement signed by Vietnam's commitment to open markets through implementation of the roadmap to cut import duty.

According to the Ministry of Finance, in most of the FTA was signed, the level of liberalization on average about 90% of tariff lines, except Agreement intra-ASEAN Agreement with the liberalization commitments of nearly 100%. The degree of liberalization in the final FTA is expected to reach 90-97% of tariff lines at the rate of 0% on last time in 2020.

The process of implementation of Vietnam's commitments starting from the reduction in ASEAN since 1999. During the years from 1999 to 2005, Vietnam focus on the reduction in the level of ASEAN to eliminate taxes low, reaching 48 % of tariff lines. From 2005 to 2014, the level of liberalization in ASEAN increasing, and implementation of tariff reduction commitments in the agreement between ASEAN and partners outside the two bilateral agreements.

As of 2014, the level of liberalization in ASEAN reached the highest rate, 75% of tariff lines have been cut down to 0%. The remaining FTA liberalization rate averages about 30-40% of tariff lines, while the degree of liberalization of tariffs under the WTO General at 32%.

Representative items that Vietnam did not commit eliminate tax in most of the FTA for about 5-7% of tariff lines, the group focused on sensitive products such as cigarettes, alcohol, gasoline, automotive some components and automotive parts, some steel products, sales quota tariff (sugar, eggs, tobacco) and the national security items (weapons, explosives ...).

Particularly in ASEAN, due to the high level of commitment, only two product groups are excluded to remove tax obligations are sensitive agricultural products (poultry, chicken, eggs, citrus, rice , brown rice, meat, sugar) is to maintain the rate of 5% and the national security items (weapons and ammunition) or affect health (marijuana, opium) ... hand tobacco and gasoline have a longer route, after 2018.

Implement commitments under the FTA above, the Ministry of Finance issued Circular issued preferential import tariff special Roadmap implementation of tariff reduction in the FTA for each stage, starting from 1999 to the end of 2014. Accordingly, the annual Vietnam has taken seriously the obligation and full tariff cuts in the FTA in accordance with Schedule, facilitation of ASEAN goods and the Author FTA + enjoy preferential tax rate of free trade area.

Impact of two-dimensional

In the period 2015-2018, the majority of the said Trade Agreement will enter into Phase deep cuts and elimination of tariffs, especially ATIGA, ASEAN - China and ASEAN - South Korea step at a time eventually eliminate tariffs in 2018. along with the promotion of positive macro-economic development, according to the Ministry of Finance, the implementation phase commit recently showed mutual impact of the FTA through reduction of import duty.

Commercial activities with a number of partners increases, mostly to cater for the production and export simultaneously meet the needs of domestic consumption. Therefore, the reduction of tax incentives are not really deep, the demand for power equipment and materials for export high, the deficit from a large number of partners has increased.

In addition, benefits from a number of agricultural imports as inputs to production, costs of goods for export can not be negative increasing reliance on this data source, thereby reducing investment self-sufficiency in producing countries. The risk of dependence is likely to continue to increase the level of tax incentives rising from the main market.

Looking at agriculture, animal husbandry sector will be assessed a major impact due to reduction of the Agreement as AKFTA, AANZFTA, AIFTA ... with a lower tax rate than the preferential import duty. Items chicken, buffalo / cow NK huge turnover from the TPP countries; milk from Australia, New Zealand can be accelerated due to the difference in tax rates for tariff reduction commitments to 0%.

In terms of freight, ASEAN also discussed the removal of tariff quotas, whereby quotas sugar imports from Vietnam are expected to be lifted since 2018. Although tariff quotas are lifted but the import duty was maintained at 5% even after 2018. Therefore, the domestic sugar industry would be difficult because the maximum protection during the time since the integration.

About the Industry, the Ministry of Finance said that the automotive industry will be affected most by the tariff reduction to 0% by 2018. The paper industry affected by competition from import tariffs as China, South China, ASEAN ... fell sharply in the period 2015-2018; machinery will be affected when the tax reduction from the market such as China, Japan, South Korea and the iron and steel industry will be affected by structural changes to the production of steel requires high technology that in time we have not previously produced and reduction commitments.

Finance Ministry optimistic that, with the introduction of longer tax cut and a new generation FTA with high levels of commitment as TPP, the EU Customs Union, the proportion between the partners are expected to share What is balance. The tighter regulations on rules of origin of the FTA future generations can be a tool for investment and domestic production is enhanced in some sectors.

Besides, with the FTA signed and under negotiation, some sectors are believed to have the advantage of Vietnam will also promote further export strength as fisheries, textiles, footwear and some commodities other agricultural products. These items may take advantage of the open door policy from the market due to FTA brings scalability and increased investment in production after a long time implementing policies for export success. At issue is the initiative of the industry continues to search for diverse markets in the future, take advantage of the benefits of the FTA to expand export markets.

ASEAN Agreement (ATIGA):

2015, removed approximately 90% of tariff lines NK; 7% of tariff lines to be flexible NK 2018. For approximately 3% of tariff lines remaining to put the final tax rate of 0%.

ASEAN Agreement - Korea (AKFTA):

Since 2015, elimination of tariffs for 90% of the items on the list of normal, 10% will be flexible cut to 0% in 2016 and 2018. All tariffs are usually on the list of sensitive Vietnam's rate reductions of 20% in 2017. Thus, at the end of the route (2021), the number of tariff lines were eliminated tariffs accounted for 85.6% of this Agreement in full expression of all tariff lines commitment.

Agreement on ASEAN - China (ACFTA):

Since 2015, the entire tariff reductions on the list of items typically about 0%. Since 2018, the 20% tax reduction for goods on the list of sensitive.

Agreement on ASEAN - Australia - New Zealand (AANZFTA):

By 2018, eliminating 85% of tariff lines. By 2020, the rate of elimination of tariffs of Vietnam is 91.2%.

Agreement on ASEAN - Japan (AJFTA):

By 2018, 61.2% elimination of tariffs and the proportion was 67% in 2020.

Agreement Vietnam - Japan (VJEPA):

By 2018, 72.3% elimination of all tariff lines. By 2020, eliminating 80%.

Agreement on ASEAN - India (AIFTA):

2018, 60.71% reduction of tariffs to 0% (the average tax rate represents 8.05%). 22.74% in 2021 to cut the number of lines remaining to 0% (the average tax rate represents 7.08%).

Agreement Vietnam - Chile (VCFTA):

By 2020, approximately 33% elimination of all tariff lines.

(Nguồn: Bộ Tài chính

Theo Báo Hải quan

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