ASEAN - Australia - NewZealand Free Trade Agreement ̣̣̣̣̣
ASEAN - Australia - NewZealand Free Trade Agreement ̣̣̣̣̣̣̣̣̣̣̣̣̣̣̣̣̣̣̣̣̣/ AAZNFTA
AANZFTA was signed in the 14th ASEAN Summit on 27/2/2009 in Hua Hin, Thailand. This Agreement took effect for Vietnam since 01/01/2010.
(i) Vietnam’s commitment to tariff reduction and elimination
The schedule of Vietnam’s commitment to tariff elimination under AANZFTA is up to 2020, and the ratio of tariff elimination is 92% of tariff lines, 8% of the remaining tariff lines will be reduced in seperated schedule or unchanged.
For this commitment, MOF issued Circular No.168/2014/TT-BTC dated 14/11/2014 by Minister of Finance on the list of special preferential import tariff of Vietnam to implement AANZFTA for the period of 2015-2018. This Circular took effect from 01/01/2015.
In 2015, tariff rate of 2,666 tariff lines has been eliminated (making up 28.1% of the list), for items including: cereal, wook, vegetable, fruits, maritime products, cotton of various types, material plastic, ceramic, pottery, pharmacy material, weaving material, garment, leather, shoes, stone coal, chemical…
By 2018, tariff rate of 8,127 tariff lines will be eliminated (accounting for 86% of the list), for items including: confectionery, pharmacy, paper, garment, garment accessories, chemical, machine, equipment, tool and accessories, computers, electronic products and accessories, corn, pharmacy materials…
The roadmap to tariff reduction and elimination under AANZFTA is up to 2022 for 8.669 of tariff lines to be tariff elimination (accounting for 92% of the list), including groups of items to be tariff elimination from 2018 above mentioned and other groups: husbandry, pharmacy, sugar, rice, wood, paper, chemical, cosmetics, home electrics, vegetable and fruit, iron, steel, and dairy. Besides, 513 tariff lines will be reduced to 5% for items including: material plastic, pharmacy, paper and various types; liquid gas, accessories, car’s spare parts, machines, equipment, tools and parts; imported car of various types, steel foil; rubber; other petrol products, iron, steel.
Other items such as fruits (orange, mandarin), beverages, cigars, petrol, tobacco leave, some iron products, steel, automatic vehicles for goods transportation… will not be of tariff elimination but have roadmap for reduction by the finishing year of 2020/2022.
(ii) Australia and New Zealand’s tariff commitment given to Viet Nam
- In 2015, Australia eliminates tariff of about 97% tariff lines (including 0.4% of tariff lines are reduced to 0% compared to 2014, mainly for garment-textile products). The remaining tariff lines which have not been eliminated by Australia, are now at low rate (under 10%), mainly for items such as: young bamboo, surgery thread, wood, wooden products, MDF, carpet, jacket, blanket, plastic products, steel product, fabrics…
- In 2015, New Zealand commits to eliminate about 91% of tariff lines, currently remains low tariff rates (under 10%) for groups of products: confectionery, cereal products, chemicals, accessories and spare parts of car, machine, equipment, tools and accessories, computers, electronic products and accessories, chemical, rubber…
- By the end of schedule in 2020, Australia and New Zealand will entirely eliminate tariff for goods imported from ASEAN.