The government recently issued Decree No.39/2020/ND-CP which sets out a list of the country’s special preferential import tariffs to implement the Vietnam – Cuba Free Trade Agreement until 2023. The decree is poised to come into force on May 25.
As a result, a total of 563 tariff lines are subject to a four-stage tariff reduction roadmap between April 1 and December 31, from January 1, 2021, to December 31, 2021, from January 1, 2022, to December 31, 2022, and from January 1, 2023, to December 31, 2023.
The decree states that 514 tariff lines, including some types of shrimp, fish, honey, fruit, cement, chrome ore, protective clothing, and wireless network equipment, will be reduced to 0% as of April 1.
The remaining 49 tariff lines will be subject to a reduction in line with the roadmap, including goods such as sugar, unprocessed tobacco, cigarettes, wine, and alcoholic beverages.
In order to enjoy the freshly-implemented preferential tax rates, imported goods must come up to standard and meet several requirements in terms of the rules of origin with regard to certificates of origin and regulations relating to direct transport to Vietnam from Cuba that follow the terms of the trade deal.
Signed on November 9, 2018, after two years of negotiations, the Vietnam – Cuba Free Trade Agreement is expected to bring tremendous benefits to the business community of both sides, facilitating the import and export of goods, promoting two-way trade turnover, and contributing to taking mutual economic and trading ties to new heights.
In recent years, economic and trade co-operation between the two sides has achieved a number of remarkable results, with two-way trade turnover standing at over US$200 million. Indeed, Cuba retains its place as one of Vietnam’s key markets in Latin America.