Import duties exempted for rice and tobacco from Laos.

These goods must have a certificate of origin from Laos and an import license from the Ministry of Industry and Trade.

The Ministry of Industry and Trade has recently issued Circular No. 06/2014/TT-BCT regulating the import of goods originating from the Lao People's Democratic Republic (Lao PDR) under tariff quotas in 2014 with a 0% import tax rate, effective from February 11, 2014 to December 31, 2014.

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Specifically, the two groups of goods to which this regulation applies are: paddy and rice of all kinds; and tobacco leaves and stems.

According to the Circular's guidelines, in order to enjoy the 0% import duty rate within the tariff quota, the above-mentioned goods must have a Certificate of Origin (Form S) issued by the competent authority of the Lao People's Democratic Republic and be cleared through the 11 pairs of border gates specified in this Circular (import procedures are handled at the customs gate where the goods are imported according to the principle of automatic deduction).

Specifically for tobacco leaves and stems, Vietnamese traders must obtain an additional import license for raw tobacco under the tariff quota issued by the Ministry of Industry and Trade in order to be allowed to import them.

Previously, according to the Vietnam-Laos bilateral trade promotion agreement signed in 2012, goods exchanged between Vietnam and Laos were divided into three groups: the group of goods enjoying a preferential tax rate of 0%, such as tobacco leaves and stems, and rice; the group of goods enjoying a 50% tax reduction compared to the tax rate in the ASEAN Free Trade Area, such as automobiles with a transport weight not exceeding 5 tons (HS code 8704.12); and the group of goods not enjoying preferential tax rates, such as firecrackers and waste from the processing of medical pharmaceuticals…/.

According to VOV