What are the cases of exemption of import duty on plant protection chemicals in Vietnam?

What are the cases of exemption of import duty on plant protection chemicals in Vietnam?

According to Article 16 of the Law on Export and Import Duties 2016, it is stipulated:

Tax Exemption

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12. Plant varieties; animal breeds, fertilizers, plant protection chemicals that cannot be domestically produced as prescribed by competent authority.

13. Raw materials and components which cannot be domestically manufactured and are imported serving the manufacturing of investment projects eligible for investment incentives or in an extremely disadvantaged area prescribed by regulations of law on investment, high technology enterprises, science and technology enterprises, science and technology organizations are exempt from import duties for 05 years from the commencement of manufacture.

The exemption of import duties specified in this Clause does not apply to mineral extraction projects; projects for manufacture of products where total value of natural resources or minerals plus energy costs makes up at least 51% of the product price; projects for manufacture or sale of goods/services subject to special excise tax.

14. Raw materials and components which cannot be domestically manufactured of investment projects for manufacture or assembly of medical equipment given priority shall be exempt from import duties for 05 years from the commencement of manufacture.

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Import duty on plant protection chemicals that cannot be domestically produced and are necessary for import as regulated by the competent authority will be exempted.

What are the cases of exemption of import duty on plant protection chemicals in Vietnam? (Image from the Internet)

Which authority do taxpayers notify to get the exemption of import duty on plant protection chemicals in Vietnam?

According to Article 17 of the Law on Export and Import Duties 2016:

Procedures for tax exemption

1. In the cases specified in Clause 11, 12, 13, 14, 15, 16 and 18 of Article 16, the taxpayer shall notify the customs authority of goods eligible for tax exemption to be imported.

2. The procedures for tax exemption shall comply with regulations of law on tax administration.

Thus, if plant protection chemicals are eligible for import duty exemption, taxpayers shall notify the customs authority of goods eligible for tax exemption to be imported.

What is the determination of plant protection chemicals that have to be imported into Vietnam?

According to Article 40 of Decree 134/2016/ND-CP:

Responsibility for implementation

1. The Ministry of Planning and Investment shall publish a list of goods that can be manufactured domestically mentioned in Article , 15, 16, 17, 18, 19, 20, 21, 23, 24, 25 and 28 of this Decree.

2. The Ministry of Science and Technology shall publish a list or establish criteria for identification of:

a) Specialized vehicles used for petroleum activities;

b) Specialized vehicles used in technological line directly serving manufacturing activities of investment projects;

c) Vehicles in the technological line directly serving shipbuilding activities;

d) Scientific documents serving scientific research, technological development, development of technology incubation, science and technology enterprise incubation and technological innovation;

dd) Specialized machinery, equipment, parts and supplies serving scientific research, technological development, development of technology incubation, science and technology enterprise incubation and technological innovation that can be domestically manufactured.

3. The Board of Directors shall publish a list or establish criteria for identification of goods exclusively serving education.

4. The Ministry of Agriculture and Rural Development shall publish a list or establish criteria for determination of plant varieties, animal breeds, fertilizers and plant protection chemicals that have to be imported.

5. The Ministry of Information and Communications shall publish a list or establish criteria for identification of imported raw materials, supplies and components for manufacture or information technology products, digital contents or software.

6. The Ministry of Natural Resources and Environment shall publish a list or establish criteria for identification of imported machinery, equipment, vehicles, tools and supplies exclusively serving environmental protection and derived from the process of waste recycling and treatment.

7. The Ministry of Public Security and the Ministry of National Defense shall inform the General Department of Customs of annual plans for importing goods exclusively serving national defense and security purposes approved by the Prime Minister or by the Minister of Public Security or by the Minister of National Defense who is authorized by the Prime Minister as well and any change to the plan.

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Thus, to determine plant protection chemicals that have to be imported into Vietnam, taxpayers must follow the list or criteria for determination of plant varieties, animal breeds, fertilizers, and plant protection chemicals that have to be imported issued by the Ministry of Agriculture and Rural Development.