Government clarifies preferential tax lists for goods imported from the RoK

08:34 | 05/01/2018 Trade

The Government has issued two decrees on Vietnam’s special preferential import tax lists as part of the efforts to implement the free trade agreement between Vietnam and the Republic of Korea (VKFTA), as well as another deal between ASEAN and the RoK (AKFTA).

Illustrative image - Source: Internet

Decree No. 149/2017/ND-CP details the preferential taxes of Vietnam to implement the VKFTA in 2018-2022 and stipulates the conditions for beneficiaries to enjoy the tax.

It specifies that only goods included in the list of goods applying special preferential taxes, which are imported and directly transported from the Republic of Korea (RoK) to Vietnam, can enjoy the incentives. The goods must satisfy the origin regulations stated in the agreement and have certificates of origin.

Meanwhile, Decree No. 157/2017/ND-CP defines the preferential taxes to conduct the ASEAN-RoK Trade in Goods Agreement as part of the AKFTA in 2018-2022 and the conditions for applying the preferential import taxes.

Under the document, eligible goods must be named in the special preferential import list. They must be imported to Vietnam from ASEAN-RoK Trade in Goods Agreement signatories, including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, the Republic of Korea and the non-tariff zones of Vietnam.

They must be directly transported from these countries to Vietnam under the regulations of the Ministry of Industry and Trade, while meeting requirements for origin.

The two decrees became effective on January 1, 2018.