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Taxes removed on Japanese electronics and machinery

Released at: 10:51, 20/09/2016

Taxes removed on Japanese electronics and machinery

Photo: vneconomy

Zero per cent import taxes on certain products to apply from September 1 to March 31, 2019.

by Hai Van

A number of Japanese electronics products and machinery are subject to a tax rate of zero per cent when being imported into Vietnam from September 1 to March 31, 2019.

The government has released Decree No. 125 on the import tax rates, based on the Economic Partnership Agreement between Vietnam and Japan from 2016 to 2019.

Electronic products subject to a zero per cent tax rate include printers, copiers, fax machines, calculators, recorders, seal machines, ticket machines, cash registers, mobile phones, image-sound transmission and reception equipment, speakers, and telephone answering machines.

Machinery bearing the tax exemption includes automatic data processing machines, magnetic readers, data transmission machines, and automatic vending machines.

The tax rate applies to electronics products that are transported directly from Japan to Vietnam and have original certification that meets the Ministry of Industry and Trade’s regulations.

The Vietnam - Japan Economic Partnership Agreement (VJEPA) was signed on December 25, 2008 and came into being on October 1, 2009.

Trade relations between the two countries are on the increase and a great deal of potential lies ahead given the number of trade agreements Vietnam and Japan have signed. Vietnam has committed to eliminating 82 per cent of tariffs on Japanese imports within 16 years, while Japan will eliminate 94 per cent of tariffs on Vietnamese exports within ten years. Japan has also pledged to cut average tariffs on agricultural products from 8.1 per cent in 2008 to 4.74 per cent in 2019 and from 6.51 per cent to 0.4 per cent on industrial products. Shrimp, crab, and certain fish, together with textile products, enjoyed zero tax rates as soon as the agreement took effect in 2009. 

According to Vietnam Customs, trade between Vietnam and Japan has increased significantly over the last decade, growing an average of 13.9 per cent each year.

Exports from Vietnam to Japan in the first seven months of this year reached $8 billion, with the main sectors being silk and textiles, machinery and equipment, and means of transport. Imports from Japan in the first half of 2016 stood at $8.2 billion, primarily machinery and equipment and electronics.

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