What are the rules for imposition of tariff schedules and duty rates for export and import duties in Vietnam?

What are bases for calculating export and import duties in Vietnam?

According to Article 5 of the 2016 Law on export and import duties, the basis for calculating export and import duties is stipulated as follows:

- The amount of import and export tax is determined based on the taxable value and the tax rate as a percentage (%) of each item at the tax calculation time.

- The export tax rate is specifically regulated for each item in the export tax schedule.

In cases where export goods are sent to a country, group of countries, or territory that has preferential export tax agreements in trade relations with Vietnam, such agreements will be applied.

- The import duty rates include preferential rates, special preferential rates, and ordinary rates and are applied as follows:

+ Preferential duty rates apply to imports originating from a country, group of countries, or territory that grants the most-favored-nation treatment in trade relations with Vietnam; goods from non-tariff zones imported into the domestic market meeting the origin conditions from a country, group of countries, or territory that grants the most-favored-nation treatment in trade relations with Vietnam;

+ Special preferential duty rates apply to imports originating from a country, group of countries, or territory that has special preferential agreements on import tax in trade relations with Vietnam; goods from non-tariff zones imported into the domestic market meeting the origin conditions from a country, group of countries, or territory that has special preferential agreements on import tax in trade relations with Vietnam;

+ Ordinary duty rates apply to imports not falling under the abovementioned cases. The ordinary tax rate is set at 150% of the preferential tax rate for each corresponding item. In cases where the preferential tax rate is 0%, the Prime Minister of Vietnam will base on the provisions of Article 10 of the 2016 Law on export and import duties to decide the application of ordinary duty rates.

What are the rules for imposition of tariff schedules and duty rates in Vietnam? (Image from the Internet)

What are the rules for imposition of tariff schedules and duty rates for export and import duties in Vietnam?

According to Article 10 of the 2016 Law on export and import duties, the issuance of tariff schedules and duty rates for export and import duties must ensure the following principles:

(1) Encourage the import of raw materials and materials, giving priority to types that the domestic supply cannot meet;

Focus on developing high technology, source technology, energy-saving, and environmental protection fields.

(2) Align with the state's socio-economic development orientation and the commitments on export and import dutieses in international treaties of which the Socialist Republic of Vietnam is a member.

(3) Contribute to stabilizing the market and the national budget revenue.

(4) Be simple, transparent, and facilitate taxpayers, along with implementing administrative reforms in tax procedures.

(5) Apply uniform duty rates to goods of the same nature, structure, usage, and similar technical features;

Import duty rates should decrease from finished products to raw materials;

Export duty rates should increase from finished products to raw materials.

Which authority has the power to issue tariff schedules and duty rates for export and import duties in Vietnam?

According to Article 11 of the 2016 Law on export and import duties, it is stipulated as follows:

Authority to Issue tariff schedules and duty rates

1. The Government of Vietnam, based on the provisions of Article 10 of this Law, the Export Tax Schedule according to the list of taxable items and the export tax rate framework for each taxable 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 treaties to which the Socialist Republic of Vietnam is a member, shall issue:

a) The Export Tax Schedule; the Preferential Export Tax Schedule;

b) The Preferential Import Tariff Schedule; the Special Preferential Import Tariff Schedule;

c) The list of goods and absolute duty rates, mixed duty rates, and out-of-quota import duty rates.

2. In necessary cases, the Government of Vietnam shall propose to the Standing Committee of the National Assembly to amend and supplement the Export Tax Schedule according to the list of taxable items and the export tax rate framework for each taxable group issued with this Law.

3. The authority to apply anti-dumping tax, countervailing duty, and safeguard duty is implemented according to the provisions of Chapter III of this Law.

Thus, according to regulations, the Government of Vietnam is the authority with the power to issue:

- The Export Tax Schedule; the Preferential Export Tax Schedule;

- The Preferential Import Tariff Schedule; the Special Preferential Import Tariff Schedule;

- The list of goods and absolute duty rates, mixed duty rates, and out-of-quota import duty rates.