To implement the framework of free trade areas between ASEAN – China (ACFTA) and ASEAN South Korea (AKFTA) in which Viet Nam is a member, in early 2007, the Ministry of Finance will promulgate the list of products and its preferential tariff rates. The businesses can benefit from preferential tariff rates when they import goods from these markets. The Ministry of Finance will also issue guiding documents on the procedures and conditions to apply the preferential tariff rates.

For tariff rate under ASEAN-China (ACFTA tariff rate) in 2007: The highest reduction will apply for products of current MFN rate of above 60% which will be cut down to 45%, including: beer, wine, used clothes, high capacity motorbikes, dumpers for a gross vehicle weight under 10 tons. The second high reduction will apply for products of MFN rate of 50% which will be reduced to 35%, including: tea products, coffee, gas mineral water.... Approximately, there have been 300 products under ACFTA which have tariff rates are 10% lower than MFN rates, including: rice, grain products, plastic products used for construction and offices, leather products, appliance electronic goods, some kinds of trucks, van, pickup and their accessories, scooter motorbike...

For tariff rate under ASEAN – South Korea (AKFTA tariff rate) in 2007: the product list will cover nearly 9000 tariff lines. For the year 2007, the tariff reduction is not much (mainly focus on products such as: floor tile, cooking oil, confectionary, spices, souses, pressure-cooker), however, the AKFTA tax rate will be sharply reduced in the following years. Under AKFTA, South Korea will also impose tax free (0%) for 70% of products that imported to South Korea from the beginning of 2007 and eliminate tariff rate for 100% of products by 2010. In 2007, in order to help Vietnamese enterprises with more information when accessing to the South Korea market, the Ministry of Finance and National Committee for International Economic Cooperation Office will publicize the Korea’s product list of products and its preferential tariff rates under AKFTA.

In order to ease businesses’s understanding and making full use of the preferential tariff rates when products are imported from these markets, in the year 2007, the Ministry of Finance plans to organize training courses, seminars and to publicize the product list and its preferential tariff rates, guidance for application of concession. Individuals, enterprises and organizations could contact the ASEAN Division – International Cooperation Department, Ministry of Finance (Tel: 220.2828 ext.7031 or 7029) for further information./.

Source: MOF