Exemption from import tax on rice and tobacco from Laos

These items 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 just issued Circular No. 06/2014/TT-BCT regulating import under tariff quotas in 2014 with an import tax rate of 0% for goods originating from the Lao People's Democratic Republic (Lao PDR), effective from February 11, 2014 to December 31, 2014.

Illustration

Specifically, two groups of goods are subject to this regulation: Paddy and rice of all kinds; tobacco leaves and stems.

According to the Circular's instructions, to enjoy the import tax rate within the 0% tariff quota, the above goods must have a Certificate of Origin Form S issued by the competent authority of the Lao PDR and be cleared through 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).

Particularly for tobacco leaves and stems, Vietnamese traders must have an additional license to import raw tobacco according to the tariff quota issued by the Ministry of Industry and Trade to be eligible to import.

Previously, according to the bilateral trade promotion agreement between Vietnam and Laos signed in 2012, goods exchanged between Vietnam and Laos were divided into 3 groups: Group of goods enjoying preferential tax rate of 0% such as tobacco leaves and stems, rice; group of goods enjoying preferential tax reduction of 50% compared to tax rate in the ASEAN free trade area such as cars with transport weight not exceeding 5 tons (HS code 8704.12) and group of goods not enjoying preferential tax rate such as fireworks, waste from processing medical pharmaceuticals.../.

According to VOV