CPTPP tariff cuts to benefit 300 export goods

08:34 | 04/07/2019 Finance - Banking

(VEN) - The Ministry of Finance has submitted to the government a draft decree on preferential export tariffs and special preferential import tariffs under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) for the 2019-2022 period.

cptpp tariff cuts to benefit 300 export goods

Since the treaty entered into force, local firms have paid great attention to tax and customs issues, seeking to know the tariff reduction roadmap to come up with suitable business strategies.

Vu Nhu Thang, head of the Department of International Cooperation under the Ministry of Finance, told participants at a seminar on tax policy and customs procedures in the implementation of the CPTPP, that a draft decree on preferential export tariffs and special preferential import tariffs under the CPTPP during the 2019-2022 period is expected to be issued in June.

The Ministry of Finance and the General Department of Vietnam Customs will put forth tax rates under the CPTPP in comparison with other free trade agreements (FTAs), allowing firms to select appropriate tariffs for the import and export of their goods. CPTPP tariffs are set to be divided into two groups. The first is for the countries that have put the trade pact into effect since late 2018, including Canada, Australia, New Zealand, and Singapore, while the other is for those having implemented the CPTPP from 2019.

Hoang Thi Thuy from the Department of Management and Supervision under the General Department of Vietnam Customs said the decree would improve preferential tariffs for some 300 goods. However, a 12-month certificate of origin (C/O) under the CPTPP is a must and can be granted to different batches of goods and various importers.

Tariff cuts will provide opportunities for export businesses. For example, Canada has cut tariffs on its agricultural imports, benefiting many of Vietnam’s key farm and seafood products, such as fresh, frozen and processed Tra fish; fresh, frozen and processed salmon; tuna, crab, and cuttlefish, rice, coffee, fruit and vegetables. Garment and textile, and leather and footwear exports are among the categories enjoying the most benefits from Canada’s tariff reduction.

According to the Ministry of Industry and Trade’s Agency of Foreign Trade, local garment and textile, leather and footwear firms have made the most of opportunities to promote exports to the Canadian market thanks to strict compliance with C/O regulations.

According to the Ministry of Industry and Trade, tariff cuts are among the key incentives set by CPTPP member

countries for Vietnamese goods. Domestic goods must satisfy the requirements of importers on quality, technical

standards, and origin in order to be exported.

Thuy Duong