Electronics Traders Ask for Reduced Tariff on Components

Electronics Traders Ask for Reduced Tariff on Components

Electronics goods traders in southern Vietnam have recently sent a document to relevant ministries to ask for a reduction in import tax levied on air-conditioner, refrigerator and washing machine components.

The document was sent to the Ministry of Finance, the Ministry of Planning & Investment, the Ministry of Industry, the Ministry of Post & Telecoms and the Vietnam Association of Electronics Enterprises.

Accordingly, the CEPT (Common Effective Preferential Tariff) tariff on air-conditioner components would be cut from 20 per cent to 5 per cent and on refrigerator and washing machine components from 20 per cent to 10 per cent within 2005. The tariff is proposed at 5 per cent for all these components from 2006.

The MFN (Most Favored Nation) tariff on air-conditioner and refrigerator components would also be cut to between 15 per cent and 30 per cent and on washing machines to 50 per cent.

Local electronics companies argue that the current tariff on electronics components is higher than the tariff on completely built electronics products, discouraging them to raise the content of locally made components.

Vietnam spent US$358 million on importing electronics and computer components in the first quarter of this year, up 39.5 per cent against the year-earlier period.

Vnexpress