The above-mentioned trade agreements are good opportunities for tariff reduction, particularly Lao PDR is able to export sugar (HS Code 1701) to Vietnam. Sugar is a sensitive product for Vietnam and the tariff rate (MFN Rate) of sugar is 15% and tariff reduction of sugar is not in ACFTA, AIFTA, AJCEP, and AKFTA. For tariff reduction of sugar is in Trade Agreement as follows:
- For ATIGA, sugar is in the list of sensitive product and Vietnam provides some import quotas for importers with tariff reduction and sugar quotas for 94,000 tons in 2018. Importers are required to apply sugar import bidding and must be a Vietnamese company win an auction for the right to import tariff quotas for sugar with tariff reduction 5% by using Form D.
- For AANZFTA, The tariff rate of sugar will be decreased sharply 5% in 2018, 3% in 2019 and 0% in 2020.
- For LVPTA, export sugar with tariff rate 2.5%
Each Trade Agreement, Vietnam has introduced a tariff reduction of sugar for Rules of Origin as follow:
1. ATIGA (Form D)
- Wholly obtained Products
- Regional Value Content shall be over 40% or Change in Chapter, in case import of raw material
2. AANZ ( Form AANZ)
- Wholly obtained Products
- Regional Value Content shall be over 40% or Change in Chapter, in case import of raw material
3. AKFTA (Form AK)
- Wholly obtained Products
- Regional Value Content shall be over 40% or Change in Tariff Heading, in case import of raw material
4. LVPTA (Form S)
- Wholly obtained Products
- Regional Value Content shall be over 40% or Change in Tariff Heading, in case import of raw material
To obtain preferential for import tariff reduction of sugar, an exporter must strictly comply with the conditions: 1. the goods must be produced in accordance with Trade Agreement 2. Certificate of Origin (Only agreement that Vietnam has introduced a tariff reduction of sugar) 3.Transport from Lao PDR to Vietnam must be direct transportation. This condition aims to facilitate and alternate an exporter for its own production process to be consistent with the trade agreement.
More information: Certificate of Origin Division, Department of Import and Export, Ministry of Industry and Commerce.
Website: http://www.laotradeportal.gov.la
Email: [email protected]
Contact: 021 450255
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