Thousands of goods imported from Japan will enjoy a zero tariff in Vietnam starting April 1 in the next implementation stage of a bilateral trade agreement between the two countries.
Vietnam will reduce the tariffs for 3,234 classes of imports to 0 percent under the Japan-Vietnam Economic Partnership Agreement for the 2015-2019 period, according to the Ministry of Finance.
The beneficiaries of the zero tariff are material, machinery, equipment, spare parts, computers, electronics products and raw materials for footwear, textile and garment production.
The products must be imported directly from Japan to Vietnam and meet the rules of origin as stated in the Japan-Vietnam Economic Partnership Agreement.
Vietnam and Japan closed the economic partnership agreement in December 2008, according to the Vietnamese finance ministry. The trade pact was approved by the Vietnamese government in April 2009.
The agreement is intended to liberalize and facilitate trade in goods and services between Vietnam and Japan and improve the business environment in each of the countries, according to a copy of the trade pact obtained by Tuoi Tre News.
A product only qualifies as originating from Japan if it is wholly obtained or produced entirely in the East Asian country, according to the agreement’s rules of origin.
When the goods use materials not originating from Japan, it must have a local value content of not less than 40 percent, and the final process of production must be performed in the East Asian country.