Question:
Purchases of Finished Goods/Semi Finished from China, what is the import duty or VAT etc ? We are under ATIGA right ? Can check and advise ?
Answer:
While Vietnam and China are both members of the ASEAN-China Free Trade Area (ACFTA), ATIGA specifically relates to ASEAN member countries. Therefore, ATIGA does not apply to China.
Import tax on goods from China for HS codes 7318, 7415, 761610, 7907, 8483, 8532, 8533, 8534, 981813, 983412 is 0% (tax rate applied according to ACFTA).
Except for certain industry codes: The import tax is 5% for the following HS codes: Screws, bolts, nuts, square head screws, hanger bolts, rivets, locking pins, locating pins, washers (including spring washers) and similar products, made of iron or steel with: external diameter of the shaft not exceeding 16 mm (73181510), External diameter of the shaft not exceeding 16 mm.
Transmission shafts (including camshafts and crankshafts) and connecting rods; bearing housings and plain shaft bearings; gears and gear assemblies; ball or roller screws; gearboxes and other speed control mechanisms, including torque converters; flywheels and pulleys, including pulley blocks: Used for machines under groups 84.29 or 84.30 (84831010); Used for vehicles under group 87.11 (84831024); For vehicles with cylinder capacity not exceeding 2,000 cc (84831025); For vehicles with cylinder capacity over 2,000 cc to 3,000 cc (84831026); For vehicles with cylinder capacity over 3,000 cc (84831027); Other types (84831090); Used for engines of vehicles under Chapter 87 (84834040).
Regarding VAT on imports, finished goods/semi finished goods are subject to VAT. The VAT rate imposed on these goods will be 10%. However, currently VAT will be 8% until June 30, 2025 (as shown above).
To benefit from preferential import duty rates under ACFTA, you will need to provide a Certificate of Origin (C/O) Form E.
