Are ships for export subject to export-import duty in Vietnam?

Are ships for export subject to export-import duty in Vietnam?

Based on Article 16 of the Law on Export and import duties 2016 which stipulates the exemption from export-import duties as follows:

Tax Exemption

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16. Projects and shipbuilding facilities on the list of industries and trades eligible for incentives under investment laws are exempt from tax for:

a) Imported goods to create fixed assets of the shipbuilding facility, including: machinery, equipment; components, parts, detachable parts, spare parts for synchronized assembly or for use in synchronization with machinery and equipment; materials and supplies used to manufacture machinery and equipment or to manufacture components, parts, detachable parts, spare parts of machinery and equipment; transport means in the technological process serving directly for shipbuilding activities; domestic construction materials that cannot be produced domestically;

b) Imported goods which are machinery, equipment, raw materials, supplies, components, semi-finished products that cannot be produced domestically for shipbuilding;

c) Exported ships.

17. Machinery, equipment, raw materials, supplies, components, parts, spare parts imported for the printing and minting of money.

18. Imported goods which are raw materials, supplies, and components that cannot be produced domestically for direct use in the production of information technology products, digital content, and software.

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Thus, according to the above regulation, exported ships are exempt from export-import duty; however, these exported ships must belong to projects or shipbuilding facilities on the list of industries and trades eligible for incentives under investment laws to be exempt from tax.

Are ships for export subject to export-import duty in Vietnam? (Image from the Internet)

Does the promulgation of export-import duty schedules follow the principle of market stabilization in Vietnam?

Based on Article 10 of the Law on Export and import duties 2016 which stipulates the principles for promulgating tax rates and schedules as follows:

Principle 1. Encourage the import of raw materials and materials, prioritizing those not meeting demand domestically; focus on developing high-tech, source technology, energy-saving, and environmental protection sectors.

Principle 2. Align with the State's socio-economic development orientation and tax commitments in international agreements to which the Socialist Republic of Vietnam is a member.

Principle 3. Contribute to market stabilization and state budget revenue.

Principle 4. Simple, transparent, facilitate taxpayers, and implement administrative reform regarding tax.

Principle 5. Uniform application of tax rates for goods with similar natures, structures, utilities, with similar technical features; import duty rates decrease from finished products to raw materials; export duty rates increase from finished products to raw materials.

Thus, the issuance of the export-import duty schedule must follow the principle of market stabilization, which is the fifth principle in issuing tax schedules and rates.

Which authority has the jurisdiction to promulgate tax schedules and tax rates in Vietnam?

Based on Article 11 of the Law on Export and import duties 2016 which stipulates the authority to promulgate tax schedules and tax rates as follows:

- The Government of Vietnam, based on the provisions of Article 10 of the Law on Export and import duties 2016, the Export Tariff according to the list of dutiable goods and the export duty rate bracket for each dutiable goods group issued with this Law, the preferential tariff schedule committed in the Protocol of accession to the World Trade Organization (WTO) approved by the National Assembly, and other international agreements to which the Socialist Republic of Vietnam is a member to promulgate:

+ Export Tariff; Preferential Export Tariff;

+ Preferential Import Tariff; Special Preferential Import Tariff;

+ List of goods and absolute tax rates, mixed duties, import duties beyond quota.

- In necessary cases, the Government of Vietnam submits to the Standing Committee of the National Assembly for amendment and supplement to the Export Tariff according to the list of dutiable goods and the export duty rate bracket for each dutiable goods group issued with the Law on Export and import duties 2016.

- The authority to apply anti-dumping tax, countervailing duties, safeguards is implemented according to the provisions of Chapter III of the Law on Export and import duties 2016.

Thus, the Government of Vietnam is the authority with jurisdiction to promulgate tax schedules and tax rates.

In necessary cases, the Government of Vietnam submits to the Standing Committee of the National Assembly for amendment and supplements to the Export Tariff according to the list of dutiable goods and the export duty rate bracket for each group of dutiable goods.