VIETNAM CUTS IM-EXPORT TARIFFS UNDER CPTPP PACT

Vietnam has removed tariffs on several products including fruit and frozen foods imported from six CPTPP signatories.

Prime Minister Nguyen Xuan Phuc has signed a decree enacting two Schedules on preferential export/import rates, which brings provisions of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) into force.

The preferential tariffs will apply retrospectively starting from Jan 14, 2019 to December 31, 2022. They will apply to goods to and from Mexico, Japan, Singapore, New Zealand, Canada and Australia, countries that have ratified the trade pact.

Accordingly, a number of import tariffs on raw poultry, fresh or chilled fish, lignite, cotton fibre and fruit from Mexico will return to zero per cent. For the other five countries, import tariffs on fruit will be reduced from 2020.

Import and export goods registered with Vietnam Customs starting from January 14 will be eligible to receive overpaid tax refunds in accordance with regulations, wherein goods meet required conditions for special preferential tariffs.

From now to 2022, import taxes on frozen beef and buffalo, unsweetened milk and cream, and lamb from these six countries will also be cut to zero per cent. Cars used to pull trailers, with engines of 1,100cc or less, will also be exempt from import duties beginning 2021.

Originally a 12-member agreement known as the Trans-Pacific Partnership (TPP), the pact was thrown into limbo when U.S. President Donald Trump withdrew his country from the deal in January 2017.

Following the U.S. withdrawal, the remaining 11 countries renegotiated parts of the TPP, removing some of Washington’s demands. In March 2018, they signed the revised CPTPP, also known as TPP-11.

The trade deal came into effect December 30 last year, and reduced tariffs in countries that together amount to more than 13 percent of the global economy - a total of $10 trillion in gross domestic product.

The members of CPTTP are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.

Source: Vnexpress