What types of rates apply to imported goods in Vietnam?

What types of rates apply to imported goods in Vietnam?

Based on Clause 3, Article 5 of the Law on Export and Import Taxes 2016, it is stipulated as follows:

Basis for calculating export and import taxes on goods using percentage-based tax calculation methods

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3. Rates on imported goods include preferential rates, special preferential rates, and ordinary rates, and are applied as follows:

a) Preferential rates apply to imports originating from countries, groups of countries, or territories that accord Vietnam most-favored-nation treatment in trade; goods from non-tariff zones imported into the domestic market meeting origin conditions from countries, groups of countries, or territories that accord Vietnam most-favored-nation treatment in trade;

b) Special preferential rates apply to imports originating from countries, groups of countries, or territories with special preferential tax agreements in trade relations with Vietnam; goods from non-tariff zones imported into the domestic market meeting origin conditions from countries, groups of countries, or territories with special preferential tax agreements in trade relations with Vietnam;

c) Ordinary rates apply to imports not covered under points a and b of this clause. The ordinary tariff rate is set at 150% of the preferential tariff rate for each corresponding item. In cases where the preferential tariff rate is 0%, the Prime Minister of the Government of Vietnam bases on the provisions of Article 10 of this Law to decide on the application of the ordinary tariff rate.

Thus, according to regulations, rates on imported goods include:

- Preferential rates;

- Special preferential rates;

- Ordinary rates.

What types of rates apply to imported goods in Vietnam? (Image from the Internet)

What are principles for promulgating tariff schedules, import and export tax rates in Vietnam?

According to Article 10 of the Law on Export and Import Taxes 2016, the principles for promulgating tariff schedules and tax rates are as follows:

(1) Encourage the importation of raw materials and materials, prioritizing types not yet meeting domestic demand;

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

(2) Align with the socio-economic development orientation of the State and tax commitments in international treaties that the Socialist Republic of Vietnam is a member.

(3) Contribute to market stabilization and state budget revenue.

(4) Simplify, transparent, create convenience for taxpayers and implement administrative procedure reforms in taxation.

(5) Apply uniform tax rates to goods with similar nature, structure, utility, and technical features;

Import tax rates decrease from finished products to raw materials;

Export tax rates increase from finished products to raw materials.

Which authority has the power to promulgate tariff schedules, import and export rates in Vietnam?

Based on Article 11 of the Law on Export and Import Taxes 2016, the authority to promulgate tariff schedules and tax rates is as follows:

Authority to promulgate tariff schedules and tax rates

1. The Government of Vietnam, based on the provisions of Article 10 of this Law, the Export Tariff based on the List of taxable goods groups and the tax rate framework for each taxable 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 treaties of which the Socialist Republic of Vietnam is a member, to issue:

a) Export tariff schedules; Preferential export tariff schedules;

b) Preferential import tariff schedules; Special preferential import tariff schedules;

c) Lists of goods and fixed tariff rates, compound tariff rates, and out-of-quota import rates.

2. If necessary, the Government of Vietnam shall submit to the Standing Committee of the National Assembly for amendment or supplementation of the Export Tariff based on the List of taxable goods groups and the tax rate framework for each taxable goods group issued with this Law.

3. Authority to apply anti-dumping tax, countervailing tax, and safeguard tax shall be implemented as stipulated in Chapter III of this Law.

Therefore, as stipulated, the Government of Vietnam has the authority to issue:

- Export tariff schedules; Preferential export tariff schedules;

- Preferential import tariff schedules; Special preferential import tariff schedules;

- Lists of goods and fixed tariff rates, compound tariff rates, and out-of-quota import rates.