Another improvement in special preferential import tariff ?
On 1st September 2016, Decree No:127/2016/ND-CP on establishment of ASEAN – Australia –New Zealand free trade area in 2016 – 2018 came into force, replacing Circular No.168/2014/TT-BTC dated November 14th 2016 on promulgating Vietnam’s special preferential import tariff to implement the ASEAN - Australia - New Zealand agreement on trade in goods during 2015-2018.
The aforementioned Decree stipulates Vietnam’s special preferential import tariff applicable to AANZFTA (ASEAN-Australia-New Zealand Free Trade Agreement) in period 2016 – 2018 and conditions for grant of such special preferential import tariff under this Agreement.
The document ‘Vietnam’s special preferential import tariff for implementation of AANZFTA during the period 2016 – 2018’, issued together with Decree No:127/2016/ND-CP, contains a tariff table with 3 tax rate columns, applicable to 3 years of 2016, 2017, 2018. For 2016, the tariff is applied only from September 1st, 2016.
Regarding the tax rates, they are mostly 7% in 2016, 5% in 2017 and 0% in 2018.
In order to be granted AANZFTA tariff rates, every import shall meet these conditions:
-it must be included in the document ‘Vietnam’s special preferential import tariff for implementation of AANZFTA during the period 2016 – 2018’ issued together with this Decree;
-it must be imported from one of the country signatories to AANZFTA ( ASEAN, Australia and New Zealand);
-it must be directly transported from exporting countries as stipulated in clause 2 of this Article by the Ministry of Industry and Trade;
-it must have the certificate of origin available that is made using form AANZ issued by the Ministry of Industry and Trade.
Compared to the previous and now unavailable Circular No. 168/2014/TT-BTC, Decree No:127/2016/ND-CP is certainly an improvement with regard to Vietnam’s special preferential import tariff applicable to AANZFTA in period 2016 – 2018.
In fact, the tariff table issued together with Decree No:127/2016/ND-CP represents a general positive amendment. For instance, now ‘Chapter 1-Live animals’ has a AANZFTA tax rate equal to 0% for all the codes in that part in all 3 years, which is an improvement compared to the previous tax rate.
For the previous reason, Decree No:127/2016/ND-CP has to be considered as another step forward in the implementation of the AANZFTA.
Entered into force on January 1st 2010, the aforementioned agreement is surely relevant because it involves one of the most dynamic economic regions in the world.
In fact, this Agreement creates new opportunities for the 658.2 million (2015) peoples of ASEAN, Australia and New Zealand, which has a combined economic output of $3.9 trillion (2015) via a platform of a more liberal, facilitative and transparent market access and investment regimes among the signatories to the Agreement.
Moreover, ASEAN (Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Viet Nam) represents one of the fastest-growing market in the world, with significant business and potential investment. 
Related: Market Research
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