Scaring troublesome procedure, only 8% of domestic enterprises export and import under ASEAN favorable tax agreement (CEPT/ AFTA).

Ms Nguyen Thi Hong Thuy, deputy of ASEAN department, Cross-border Trade Policy Department, Ministry of Trade, says that most domestic  enterprises does not take advantage of CEPT favorable tax because they are afraid of applying for C/O form D for their goods. They mainly use most- favored nation status (MFN).

Meanwhile, CEPT tariff is much lower than MFN, such as skirt made from synthetic fiber has MFN tariff is 50% while CEPT is only 5%.

Statistics of Ministry of Trade showed that the number of goods which was issued C/O form D (ASEAN certificate of origin) in 2006 is more than 11,000 documents, half as many as in 2005. However, there has still a little number of goods use CEPT within the general exporting and importing turnover of the country in South East Asia area.

According to Ms Thuy, at present the regulations implementation of CEPT among countries in the area when customs controlled is different which makes companies facing difficulties even being dispirited.

Two years ago, Dien Quang Light Bulb Company complained to Ministry of Trade that Myanmar forbade imported fluorescent lamps from Vietnam. Minister of Trade had conversation with the same function department of Myanmar about the discrimination against Vietnamese products. Myanmar had to check the decision on prohibit Vietnamese fluorescent lamps and it turned out to be a speech order of a Myanmar official. As a result, the door is opened for Vietnam lamps again.

At this time, Vietnamese Float Glass Company also asked for the intervention of Ministry of Trade because Philippine Customs forced import enterprises to have confirmation of this country’s consulate into ASEAN certificate of origin. Meanwhile Philippine consular in Vietnam refused to confirm caused difficulties for this enterprise. The last regulation was eliminated by Philippine after receiving reaction from Vietnamese Ministry of Trade.

From experiences applying CEPT/ AFTA for this 3 years, specialists of Ministry of Trade suppose that enterprises should intensify import and export under favorable tax agreement. If they have any difficulties, they can ask Ministry of Trade so that they can solve problems with each other and make better condition for importing and exporting activities.