Preferential tariffs for Korean goods

14:27 | 22/12/2015 Economy

The Ministry of Finance has issued Circular 201/2015 / TT-BTC on preferential import tariffs, particularly of Vietnam to implement the Free Trade Agreement on Vietnam-Korea period of 2015-2018 (VKFTA).

Preferential tariffs for Korean goods

According to a spokesperson from the ministry’s Foreign Investment Agency, under the deal, tariff reductions would be reduced to zero on substantially all trade line items and phased in over the next few years at the beginning of each year. “So January 1, 2016 will mark the start of the ‘second year’ of rate cuts,” said the spokesperson.

He said besides textiles and car parts, the trade deal will open the Vietnam market up to a host of RoK consumer goods including electronics and even cosmetics, providing more export opportunities for small Korean businesses.

In particular, Vietnam is the first FTA partner that Korean market access, tariff elimination schedule for the very sensitive products in countries such as fresh fruits, processed (30% tax rate to 50%); some tropical vegetables and especially on items like garlic, ginger, honey, sweet potato, red bean ... (the tax rate is very high for these items from 241% to 420% especially sensitive because South Korea).

The textile products, footwear exports to Korea of ​​Vietnam was removed from 10-13% down to 0% in 2016. As for shrimp, Vietnam will enjoy 0% tax rate on with 10,000 tons / year and increase in 5 years reached 15,000 tons / year. Consumer goods (cosmetics), household electrical appliances (air conditioner, refrigerator, microwave, oven, etc.) will be tariff reduction roadmap from 7 to 10 years.

Vietnam has committed to open more to South Korea for 200 tariff lines the route for 15 years, accounting for 5.9% of total imports, contributing to increasing the number of tariff lines tariff reduction commitments with South Korea over 8520 tariff lines.

The signing of the Vietnam - South Korea FTA is considered as a concrete step to actively implement integration strategies, including international economic integration is the focus, supporting the restructuring process, performing industrialization and modernization of the country and also contribute actively developing strategic partnerships Vietnam - South Korea towards a stable, long term, contribute maintaining and strengthening peaceful environment, stability in the region./.