VIETNAM LOWERS TARIFFS ON WIDE RANGE OF FOODS AND ANIMAL FEEDS

UNCLAS SECTION 01 OF 10 HANOI 001562 SIPDIS SIPDIS STATE PASS TO USTR (BISBEE,GLAUBER,BURST) USDA FOR DUS TERPSTRA USDA PASS TO FAS (OA,OCRA,ONA,OFSO) TREASURY FOR OASIA E.O. 12958: N/A TAGS: ETRD WTRO TBIO PINR SOCI VM USTR SUBJECT: Vietnam Lowers Tariffs on Wide Range of Foods and Animal Feeds HANOI 00001562 001.2 OF 010 ¶1. On August 3, 2007 the Government Office of Vietnam issued directive No.18/2007/CT-TTg entitled Urgent Measures to Restrain Market Prices. The directive made significant reductions for a number of foods and animal feeds, most of which have seen significant price increases recently on the world market as agricultural prices in general have spiked. The directive termed the cut temporary, although no date for reinstatement of the old tariffs was given. The directive is aimed at restraining inflation, which has seen a sharp increase over the past year and which in this low-income country is particularly sensitive to food prices. ¶2. The tariffs cuts are significant (from 30 to 60 percent) and across a wide range of products. Some reductions, including those for chicken meat, certain beef cuts, corn and meat and bone meal, go significantly beyond final bound rate commitments that Vietnam was to phase in over the next five years as part of their recent WTO accession agreement. Because of higher prices, the new tariffs will be to an extent revenue neutral. Still the cuts indicate that government officials understand the value of lower import tariffs in sustaining economic development. It also shows an encouraging capacity to resist protectionist pressures in order to carry out sound economic policy. The tariff reductions should be beneficial to U.S. exports particularly in some key areas (chicken meat, beef, dairy) that have grown rapidly recently even with the higher tariffs. ¶3. Vietnam has shown in the past a willingness to permanently lower agricultural tariffs to support rapidly expanding domestic industries like textiles, livestock, aquaculture and furniture. Vietnam should be encouraged in its own interest to continue this trend toward more open markets by making this more consumer-oriented list of temporary cuts permanent and pursuing even further cuts. ¶4. The following table shows the reductions: List of MFN Tariffs Reductions on Food and Feed Products (Decision No.69/2007/QD-BTC of August 3, 2007) HS CodeDescriptionNew MFN Tariff (%)Previous MFN Tariff (%)0201Meat of bovine animal, fresh or chilled0201100000- Carcasses and half carcasses12200201200000- Other cut with bone in12200201300000- Boneless12200202Meat of bovine animal, frozen0202100000- Carcasses and half nimal, frozen 0202 10 00 00 - Carcasses and half carcasses12200202200000- Other cut with bone in12200202300000- Boneless12200203Meat of swine, fresh, chilled or frozen- Fresh or chilled0203110000- - Carcasses and half carcasses20300203120000- - Hams, shoulders and cuts othereof, with bone in20300203190000- - Others2030- Frozen0203210000- - Carcasses and half carcasses20300203220000- - Hams, shoulders and cuts othereof, with bone in20300203290000- - Others20300206Editable offal of bonvine animals, swine, sheep, goats, horses, asses, mules or hinnies, fresh, chilled or frozen0206100000- Of bonvine animal, fresh or chilled1015- Of bonvine animal, frozen0206210000- - tounges10150206220000- - livers10150206290000- - others10150206300000- of swine, fresh or chilled1015- of swine, frozen0206410000- - Livers10150206490000- - Others10150206800000- Others, fresh or 6 30 00 00 - of swine, fresh or chilled 10 15 - of swine, frozen 0206 41 HANOI 00001562 002.2 OF 010 00 00 - - Livers 10 15 0206 49 00 00 - - Others 10 15 0206 80 00 00 - Others, fresh or chilled10100206900000- Others, frozen10100207Meat and editable offal of poultry of heading 01.05, fresh, chilled or frozen- Of fowls of the species Gallus Domesticus:0207110000- - Not cut in pieces, fresh or chilled12200207120000- - Not cut in pieces, frozen12200207130000- - Cut and offals, fresh or chilled1220020714- - Cut and offals, frozen0207141000- - - Wings12200207142000- - - Thighs12200207143000- - - Livers12200207149000- - - Others1220- of Turkeys0207240000- - not cut in pieces, fresh or chilled12200207250000- - not cut in pieces, frozen12200207260000- - Cut and offal, fresh or chilled1220020727- - Cut and offal, frozen0207271000- - - Livers12200207279000- - - Others1220- of duck, geese, or guinea fowls020732- - not cut in pieces, fresh or chilled0207321000- - - of ducks12200207322000- - - of s 12 20 - of duck, geese, or guinea fowls 0207 32 - - not cut in pieces, fresh or chilled 0207 32 10 00 - - - of ducks 12 20 0207 32 20 00 - - - of geese, guiea fowls1220020733- - not cut in pieces, frozen0207331000- - - of ducks12200207332000- - - of geese, guiea fowls12200207340000- - fatty livers, fresh or chilled10150207350000- - others, fresh or chilled1015020736- - others, frozen0207361000- - - fatty livers10150207362000- - - of ducks, cut in pieces10150207363000- - - of duck, geeses, guinea fowls, cut in pieces10150401Milk and cream, not concentrated nor containing added sugar or other sweetening matter0401100000- of fat content, by weight, not exceeding 1%10200401200000- of fat content, by weight, exceeding 1% but not exceeding 6%10200401300000- of fat content, by weight, exceeding 6%10200402Milk and cream, concentrated or containing added sugar or other sweeting matter040210- in powder, granules or other solid forms, of a fat content, by weight, not exceeding r sweeting matter 0402 10 - in powder, granules or other solid forms, of a fat content, by weight, not exceeding 1.5%- - fit for human consumption0402101100- - - Not containing added sugar or other sweetening matter, in powder HANOI 00001562 003.2 OF 010 form5100402101200- - - not containing added sugar or other sweetening matter, in other forms7150402101300- - - Others, in powder form15300402101900- - - Others, in other forms1530- - others0402102100- - - Not containing added sugar or other sweetening matter, in powder form5100402102200- - - not containing added sugar or other sweetening matter, in other forms7150402102300- - - Others, in powder form15300402102900- - - Others, in other forms1530- In powder, granules or other solid forms, of a fat content, by weight, not exceeding 1.5%040221- - Not containing added sugar or other sweetening matter0402211000- - - in powder form7150402219000- - - in other forms715040229- - Others0402291000- - - in powder form15300402299000- - 0 00 - - - in other forms 7 15 0402 29 - - Others 0402 29 10 00 - - - in powder form 15 30 0402 29 90 00 - - - in other forms1530- Others0402910000- - Not containing added sugar or other sweetening matter7150402990000- - Others15300403Butter milk, curdled milk and cream, yogurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavour or containing added fruit, nuts or cocoa040310- Yogurt- - Containing fruits,, nuts, cocoa or flavorin matter; liquid yogurt.0403101100- - - in liquid form, including condensed form15300403101900- - - others1530- - others0403109100- - - in condensed form15300403109900- - - others1530040390- Others0403901000- - Buttermilk15300403909000- - others15300404Whey, whether or not concentrated or containing added sugar or other sweetening matter, products consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter, roducts consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter, not elswhere specified or included040410- Whey and modified whey, whether or not concentrated or containing added sugar or other sweetening matter- Fit for human consumption0404101100- - - Whey10200404101900- - - Others1530- - fit for animal feeding0404109100- - - Whey10200404109900- - - others1530040490- Others0404901000- - concentrated, sweetened with added preservative or in hermetically sealed cans15300404909000- - others15300407Bird's eggs, in shell, fresh, preserved or cooked- Other than for hatching0407009100- - Hen's eggs20400407009200- - Duck's eggs20400407009900- - others20400408Bird's eggs, not in shell, and egg yolks, fresh, dried, cooked by steaming or by boiling in water, moulded, frozen or otherwise preserved, whether or not containing added sugar or other sweetening matter- Egg yolks0408110000- - dried12200408190000- - eserved, whether or not containing added sugar or other sweetening matter - Egg yolks 0408 11 00 00 - - dried HANOI 00001562 004.2 OF 010 12 20 0408 19 00 00 - - others1220- Others0408910000- - dried12200408990000- - others12201005Corn1005100000- seed00100590- others1005901000- - popcorn30301005909000- - others251104Cereal grain otherwise worked (for example, hulled, rolled, flaked, pearled, sliced or kibbled),except rice or heading 10.06; germ of cereals, whole, rolled, flaked or ground- Rolled or flaked grains1104120000- - of oats2020110419- - of other cereals1104191000- - - of corn10201104199000- - - others2020- other worked grains (for example, hulled, pearled, sliced or kibbled)1104220000- - of oats20201104230000- - of maize510110429- - of other cereals1104291000- - - Bulgar20201104299000- - - others20201104300000- Germ of cereals, whole, rolled, flaked or ground20201507Soybean oil and its fractions, whether or not refined, but not chemically modified1507100000- 0 00 - Germ of cereals, whole, rolled, flaked or ground 20 20 1507 Soybean oil and its fractions, whether or not refined, but not chemically modified 1507 10 00 00 - Crude oils, whether or not degummed25150790- others1507901000- - refined oils20301507902000- - Fractions of unrefined soybean oils251507909000- - others20301508Ground nut oils and its fractions, whether or not refined, but not chemically modified1508100000- Crude oils, whether or not degummed25150890- others1508901000- - refined oils20301508902000- - Fractions of unrefined ground-nut oils251508909000- - others20301509Olive oil and its fractions, whether or not refined by chemically not modified150910- Virgin:1509101000- - in packing of net weight not exceeding 30 kg251509109000- - others25150990- others- - refined oils1509901100- - in packing of net weight not exceeding 30 kg20301509901900- - - others2030- - Fraction of un-refined oils1509902100- - in packing of net weight not exceeding 30 kg251509902900- - - others25- 00 - - - others 20 30 - - Fraction of un-refined oils 1509 90 21 00 - - in packing of net weight not exceeding 30 kg 2 5 1509 90 29 00 - - - others 2 5 - - others1509909100- - in packing of net weight not exceeding HANOI 00001562 005.2 OF 010 30 kg20301509909900- - - others20301510Other oils and their fractions, obtained solely from olives, whether or not refined, but not chemically modified, including blends of these oils or fractions with oils or fractions of heading 15.091510001000- crude oils25-- others1510009100- - refined oils20301510009200- - Fraction of un-refined oils221510009900- - others20301511Palm oil and its fractions, whether or not refined but not chemically refined15111000- crude oils1511100010- - fractions of un-refined oils251511100090- - others25151190- others1511901000- - concentrated Palm stearin 20301511909000- - others20301512Sunflower-seed, safflower or cotton seed oil and fractions thereof, whether or not refined, but not chemically modified1512110000- - Crude oil25151219- - others1512191000- - - Refined ons thereof, whether or not refined, but not chemically modified 1512 11 00 00 - - Crude oil 2 5 1512 19 - - others 1512 19 10 00 - - - Refined oil20301512192000- - - Fractions of unrefined sunflower-seed or safflower oil251512199000- - - others2030- Cotton seed oil and its fractions1512210000- - Crude oil, whether or not gossypol has been removed25151229- - others1512291000- - - Refined oil20301512292000- - - Fractions of unrefined cotton-see oil251512299000- - - Others20301513Coconut (copra),palm kernel or babassu oil and fractions thereof, whether or not refined, but not chemically modified- Coconut (copra) oil and its fractions1513110000- - Crude oil25151319- - Others1513191000- - - Refined oil20301513192000- - - Fractions of unrefined coconut oil251513199000- - - others2030- Palm kernel or babassu oil and its fractions1513210000- - Crude oil25151329- - others1513291000- - - Refined oil20301513292000- - - Fractions of unrefined palm kernel oil and babassu oil oil 2 5 1513 29 - - others 1513 29 10 00 - - - Refined oil 20 30 1513 29 20 00 - - - Fractions of unrefined palm kernel oil and babassu oil 251513299000- - - others20301514Rape, colza or mustard oil and fractions thereof, whether or not refined, but not chemically modified- Low erucic acid rape or colza and its fractions1514110000- - Crude oil25151419- - Others1514191000- - - Refined oil551514192000- - - Fractions of un-refined oil251514199000- - - others55- others151491- - Crude oil1514911000- - - Rape or colza oil and its fractions251514919000- - - HANOI 00001562 006.2 OF 010 others25151499- - others1514991000- - - Refined oil20301514992000- - - Fractions of unrefined oil25- - - others1514999100- - - - Rape or colza oil and its fractions20301514999900- - - - Others20301515Other fixed vegetable fats and oils (including jojoba oil) and their fractions, whether or not refined, but not chemically modified- Linseed oil and its fractions1515110000- - Crude oil251515190000- - ) and their fractions, whether or not refined, but not chemically modified - Linseed oil and its fractions 1515 11 00 00 - - Crude oil 2 5 1515 19 00 00 - - Others1010- Corn oil and its fractions1515210000- - Crude oil25151529- - Others1515291000- - - Fractions of un-refined corn oil251515299000- - - Others2040151530- Castor oil and its fractions1515301000- - Crude oil251515309000- - others1010151540- Tung oil and its fractions1515401000- - Crude oil251515402000- - Fractions of unrefined tung oil251515409000- - others1010151550- Sesame oil and its fractions1515501000- - Crude oil251515502000- - Fractions of unrefined sesame oil251515509000- - Others2050151590- Others- - Tengkawang oil1515901100- - - Crude oil251515901200- - - Fractions of unrefined oil251515901900- - - Others2040- - Others1515909100- - - Crude oil251515909200- - - Fractions of unrefined oil251515909900- - - Others20301516Animal or vegetable fats and oils and their fractions, partly or wholly - Crude oil 2 5 1515 90 92 00 - - - Fractions of unrefined oil 2 5 1515 90 99 00 - - - Others 20 30 1516 Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated interesterified, but not further prepared151610- Animal fats and oils and their fractions1516101000- - in packing of 10 kg net weight or more20301516109000- - Others2030151620- Animal fats and oils and their fractions- - re-esterified fats and oils and their fractions1516201100- - - of soybean20301516201200- - - of palm oil, crude2030- - - of palm oil, except crude1516202100- - - - in packing of a net weight not exceeding 20 kg20301516202900- - - - Others20301516203000- - - of coconut oil2030- - - of palm oil1516204100- - - - Crude oil20301516204200- - - - Refined, bleached and deodorised (RBD)2030- - - Of palm kernel olein1516205100- - - - Crude oil20301516205200- HANOI 00001562 007.2 OF 010 - - - Refined, bleached and deodorised (RBD)20301516206100- - - of illipenut oil 20301516206900- - - Others2030- - Others1516207100- - - Hydrogenated fats in flakes, in 6 20 61 00 - - - of illipenut oil 20 30 1516 20 69 00 - - - Others 20 30 - - Others 1516 20 71 00 - - - Hydrogenated fats in flakes, in packages of a net of weight of less than 10 kg20301516207200- - - Hydrogenated fats in flakes, in packages of a net of weight of 10 kg or more20301516207300- - - Hydrogenated castor oil (opal wax)20301516208100- - - Of kernel stearin, crude oil 20301516208200- - - of palm kernel stearin , refined, bleached and deodorised20301516208300- - - Other hydrogenaged refined, bleached and deodorised palm kernel Olein and stearin2030- - - Of palm kernel stearin of iodine value not exceeding 48:1516208400- - - - Crude oil20301516208500- - - - Refined, bleached and deodorised (RBD)20301516208600- - - - Others20301516209900- - - others20301517Margarin, edible mixture or preparations of animal or vegetable fat or oils or fractions of different fats or oil of this chapter, other than edible fats or oils, or their fractions of heading 15.161517100000- Margarin, excluding fats or oils, or their fractions of heading 15.16 1517 10 00 00 - Margarin, excluding liquid margarin1525151790- Others1517901000- - Imitation ghee20401517902000- - Liquid margarin20401517903000- - Mould release preparation2040- - Imitation lard; shortening:1517904100- - - Imitation lard of animal origin20401517904200- - - Imitation lard of vegetable origin20401517904300- - - Shortening2040- - Mixtures or preparations of vegetable fats or oils or of their fractions1517905100- - - Mixtures or preparation in solid form2040- - - Mixtures or preparation in liquid form1517906100- - - - in which groundnut oil predominates2040- - - - in whch palm kernel oild predominates1517907100- - - - - crude oil20401517907200- - - - - other, in packing of net weight not exceeding 20 kg20401517907900- - - - - Others20401517908100- - - - in which palm kernel oil predominates20401517908200- - - - In which refined, bleached 20 40 1517 90 81 00 - - - - in which palm kernel oil predominates 20 40 1517 90 HANOI 00001562 008.2 OF 010 82 00 - - - - In which refined, bleached and deodorised palm kernel oil predominates20401517908300- - - - in which crude palm kernel tlein predominates20401517908400- - - - in which refined, bleached and deodorised palm kernel olein predominates20401517908500- - - - in which soybean oil or coconut oil prodominate20401517908600- - - - in which illipenut oil predominates 20401517908900- - - - Others20401517909000- - others20401901Malt extract; food preparations of flour, groats, meal, starch or malt extract, not containing cocoa or containing less than 40% by weight of cocoa calculated on a totally defatted basis, not elswhere specified or included; food preparations of goods of heading 04.01 to 04.04, not containing cocoa or containing less than 5% by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included190110-Preparations for infant use, put up for retail sale1901101000-- of malt extracts1530-- good t up for retail sale 1901 10 10 00 -- of malt extracts 15 30 -- good of headings 04.01 to 04.041901102100--- Medical nutritional products7151901102900---Others15301901103000- - made from soybean flour3040--others1901109100--- used for lactase deficiency infants15301901109200--- other medical nutritional products7151901109300--- others containing cocoa25351901109900---others2540190120- Mixed and doughs for the preparation of bakers wares of heading 19.051901201000-- of flour, groats, meal, starch or malt extract, not containing cocoa25351901202000-- of flour, groat, meal, starch or malt extract, containing cocoa25351901203000-- others, not containing cocoa25351901204000-- others, containing cocoa2535190190- others-- Infant food, not put up for retail sale1901901100--- goods of headings 04.01 to 04.0415301901901200--- for lactase deficiency infants15301901901300---Other Medical products7151901901900--- others25401901902000-- Malt -- for lactase deficiency infants 15 30 1901 90 13 00 ---Other Medical products 7 15 1901 90 19 00 --- others 25 40 1901 90 20 00 -- Malt extracts1530-- others, of good of headings 04.01 to 04.04:1901903100--filled milk15301901903200--- medical food 7151901903300--- others, not containing cocoa15251901903400--- Others, containing cocoa 1525--Other soya base Preparations1901904100--- in powder form 30401901904900--- in other form3040-- others1901905100--- medical food7151901905200--- HANOI 00001562 009.2 OF 010 others, not containing cocoa 25401901905300--- others, containing cocoa25402202Water, including mineral waters and aerated waters, containing added sugar or other sweetenining matter of flavoured, and other non-alcoholic beverages, not including fruit or vegetable juice of heading 20.09220210Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter of flavoured2202101000-- Sparkling mineral waters and aerated waters, flavoured 40402202109000-- Others 4040220290- 202 10 10 00 -- Sparkling mineral waters and aerated waters, flavoured 40 40 2202 10 90 00 -- Others 40 40 2202 90 - others 2202901000-- Flavoured UHT milk drink 20402202902000-- soya milk drink40402202903000-- Non- aerated beverages ready for immediate consumption without dilution40402202909000-- others40402301Flours, meals and pellets, of meat or meat offal, of fish or of crustaceans, mollucs or other aquatic invertabrates, unfit for human consumption; greaves2301100000- Flours, meals and pellets, of meat or meat offal; greaves.382301200000- Flours, meals and pellets, of fish or of crustaceans, mollucs or other aquatic invertabrates382302Bran, sharp and other residues, whether or not in the form of pellets, derived from the sifting, milling or other working of cereals or of leguminoius plan2302100000- of maize5102302200000- of paddy, rice5102302300000- of wheat252302400000- of other grain5102302500000- of leguminous plants5102303Residues of starch manufacture and - of other grain 5 10 2302 50 00 00 - of leguminous plants 5 10 2303 Residues of starch manufacture and similar residues, beet-pulp, bagasse and other waste of sugar manufacture, brewing or distilling dregs and waste, whether or not in the form of pellets230310- Residues of starch manufacture and similar residues2303101000-- of manioc (cassava) or sago5102303109000-- others252303200000- Beet pupl, bagassae and other waste of sugar manufacture5102303300000- Brewing of distilling dregs and waste252307000000Wine lees; argol5102309Prepared animal fodders230910- Dog or cat food, put up for retail2309101000- - Containing meat5102309109000- - Others510230990- Others- - Complete feed2309901100- - - for poultry5102309901200- - - for pigs5102309901300- - - Praw feed5102309901900- - - Others5102309902000- - Premixes, feed supplements and feed additives252309903000- - Others, containing meat5102309909000- - Others.25 MICHALAK 00 HANOI 00001562 010.2 OF 010 - - Premixes, feed supplements and feed additives 2 5 2309 90 30 00 - - Others, containing meat 5 10 2309 90 90 00 - - Others. 2 5 MICHALAK