DNVN - The export group to Korea with the best FTA preferential utilization rate includes seafood (96.32%). Agricultural products such as vegetables, coffee and pepper all have preferential C/O utilization rates of 91.18%, 94.54% and 100%, respectively. Wood and wood products (73.76%); footwear and textiles have rates of nearly 100%.
Recently, Korea has been one of the leading markets for importing goods from Vietnam with the highest rate of FTA preferential use. In 2023, the Korean market will have a preferential C/O usage rate of 52.1%, with the export turnover of goods with C/O to Korea reaching 12.2 billion USD.
Enterprises have a certain awareness of using preferential C/O as an effective tool in business planning when exporting goods to Vietnamese markets with commitments to enjoy preferential tariffs. With the legal corridor of Decree 31 and guiding Circular as well as the promotion and dissemination to enterprises in the period of 2014-2023, enterprises' awareness has changed significantly.
The export group to Korea with the best FTA preferential utilization rate includes seafood (96.32%). Agricultural products such as vegetables, coffee and pepper all have very high preferential C/O utilization rates, reaching 91.18%, 94.54% and 100% respectively. Wood and wood products (73.76%); footwear and textiles have a rate of nearly 100%.
Mr. Nguyen Anh Son - Director of the Import-Export Department (Ministry of Industry and Trade) delivered the opening speech at the conference "Conversion of specific commodity rules within the framework of the ASEAN - Korea Free Trade Agreement (AKFTA)".
In the ASEAN-Korea Trade in Goods Agreement (AKFTA), Vietnam committed to eliminating import taxes on about 86% of total tax lines in 2018, reducing the remaining 14% of total tax lines to 5% by the end of the roadmap (2021) and partially cutting tax rates in 2021 or maintaining the MFN tax rate.
In the context that Vietnamese goods have many opportunities to enjoy tariff preferences in FTA markets, the rules of origin are the tool to neutralize the advantages of FTAs if the goods do not meet the requirements and are the tool to distinguish the advantages of FTA countries from those of countries outside the FTA.
At the conference "Conversion of commodity-specific rules under the ASEAN-Korea Free Trade Agreement (AKFTA)" opened on March 25 in Quang Ninh, Mr. Nguyen Anh Son - Director of the Import-Export Department (Ministry of Industry and Trade) said that according to the regulations of the World Customs Organization, the HS code of the Harmonized Commodity Description and Coding System is updated regularly every 5 years to ensure compliance with international trade needs. This update also requires the conversion of commodity-specific rules (PSR) in the ASEAN-Korea Free Trade Agreement.
Timely PSR transition will ensure predictability and transparency for businesses. Any delay in PSR transition will lead to increased costs and loss of FTA benefits. That is also the reason why delegates attend this Conference.
During the 3-day conference (March 25-27), delegates will discuss and aim to convert nearly 7,000 tariff lines of the PSR list in AKFTA. Delegates will review each of the 7,000 tariff lines. This conversion work certainly requires high concentration and consensus from ASEAN countries and Korea.
Thu An
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