Vietnam, Laos Sign Agreement on Preferential Import Tariffs

The governments of Vietnam and Laos recently signed an agreement on bilateral trade promotion in 2012 in which preferential import tariffs are in the spotlight.

 

Under this agreement, goods traded between Vietnam and Laos are classified into three groups. The first group will be exempted from tax. The second group enjoys a 50 percent cut in duties in relation to ASEAN Free Trade Area rates. The final group is not given tariff preferences. The two sides also imposed quotas on certain Laotian exports to Vietnam. Specifically, the quota for tobacco products and tobacco stalks is 3,000 tonnes, while the quota for rice is 70,000 tonnes.

 

The two parties also agreed that goods transported by trucks with load capacity up to 5 tonnes departing from Vietnam to Laos will be granted a 50 percent discount from AFTA/ATIGA rates and no quotas are applicable.