According to the recent preferential import tariffs issued by the Ministry of Finance, to adhere to the ASEAN-Japan Comprehensive Economic Partnership (AJCEP) in the 2012-2015 period, the import tax reduction on most Japanese products imported into Vietnam will start from next Sunday.
Specifically, food products such as meat, fish fillets, butter, milk and rice will have an average cut of two to three percentage points compared to the previous tax rate which is currently applicable until March 31, 2012.
Products Vietnam imported much from Japan such as chemicals, plastics, garments, steel and iron will also enjoy an average reduction of around two percentage points.
The import tax on Japan's auto spare parts and components will also drop by one to three percentage points while that imposed on telecom devices will decline to zero.
Home appliances like hair dryer or electric cooker will have the import tax lowered from 30% to 28%.
Besides, the strong tax reduction will be applied for some vehicles, with a reduction from 10% to 0% on tractors, 80% to 20% on under-five-ton transport vehicles, 60% to 20% on under-ten-ton vehicles.
Under the AJCEP, normal commodities which account for 88.6% of tariff lines with have a tax rate of 0% in 2025. Meanwhile, 62.2% of tariff lines will be lowered 0% in 2018.
Besides, the Ministry of Finance has also issued other circulars on preferential import taxes in accordance with the Vietnam-Japan Economic Partnership Agreement (VJEPA) for the 2012-2015 period which will take effect from April 1, the ASEAN-Australia-New Zealand Free Trade Agreement (AAN-ZFTA) for the 2012-2014 period and ASEAN-India Free Trade Agreement (AIFTA) for the 2012-2014 period effective from April 30.
According to statistics of the General Department of Customs, the value of commodities imported from Japan was US$1.6 billion in the first two months, with machines, devices, equipment and components accounting for over US$421 million. Vietnam’s import value from Japan reached over US$10.4 billion last year.
Meanwhile, Vietnam's export value to Japan was over US$10.7 billion last year.
Source: The Saigon Times Daily