The Ministry of Finance has proposed to reduce import duty to zero percent for various automobile parts and spare parts by 2016.
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| Import duty on automobile parts and spare parts will be slashed to zero percent by 2016__Photo: VNA |
According to the proposal, the new import duty rates will be applied to engines and other parts of automobiles with a cylinder capacity of under 2,000 cc, such as gearboxes, wheel blocks and electric lighters.
Auto engines imported from the Republic of Korea (RoK) will be subject to a much lower import duty rate (3 percent instead of current 20 percent) in 2016, equal to the rate committed in the Vietnam-Japan Free Trade Agreement.
In the meantime, other auto parts including gearboxes and wheel blocks will enjoy a duty rate of 5 percent instead of current 12-20 percent as planned. Particularly, electric lighters will enjoy a zero-percent import duty.
The ministry also proposed to apply zero-percent import duty on diesel engines, gearboxes, interior furniture and accessories of trucks from the RoK and Japan in 2016 instead of 2018-19 as planned.
The same duty rate will also be imposed on 12 tractor engine and gearbox categories imported from the RoK and Japan.- (VLLF)
