Many made-in-Cambodia goods to enjoy zero tax rate in Vietnam

Illustrative image (Source:VNA)

Hanoi (VNA) – Many goods made in Cambodia willenjoy zero percent tax in the Vietnamese market under the newly-issued Decree24/2017/ND-CP on special preferential import tax to realise theVietnam-Cambodia trade promotion agreement signed in 2016.

According to the decree, zero percent tax will be applied tocertain live poultry; fresh or frozen poultry meat; fresh and dried citrus fruits;rice; bread, pastry, biscuit and some kinds of cakes and crackers; consecratedcake and soft gel shells.

To be eligible for the zero percent tariff, products musthave certificates of origin in form S issued by Cambodia’s authorized agency, andbe transported through one of the 24 border gate pairs as listed in the agreement.

The decree also makes clear that rice and dried tobaccoleaves will enjoy zero percent tax if they satisfy the above mentionedconditions and the Ministry of Industry and Trade’s regulations on quota for 2016and 2017.

Normal tax rate will be applied to unprocessed farm produce,including rice and dried tobacco leaves, produced in Cambodia with investmentof Vietnamese enterprises.

Meanwhile, agricultural products, including rice and driedtobacco leaves, imported by Vietnamese firms to re-export to other markets,will be regulated by the temporary import-re-export policies of the VietnameseGovernment and regional and international agreements to which both countriesare members.-VNA

VNA