VCN – In the context that China has move towards reducing duties, Vietnam’s enterprises should research and study carefully Chinese related policies to find opportunities to enter the market.
|Textile is one of the commodities that can take advantage of taxes reducion to boost exports to China. Photo: Nguyễn Thanh|
According to the Asia-Africa Market Department (Ministry of Industry and Trade), on April 8, China issued an announcement about adjusting tax of imported goods (often called Postal Tax). This is an import tax on import goods into China in a hand-carried goods or checked bag form, including tariffs, Value Added Tax (VAT) at the import stage and consumption tax.
This is the second time in six months China has reduced this tax. The official application of this new tax rate started on April 9.
According to the contents of this new notice, the postage tax of Group 1 products from the previous level of 15% decreased to 13% and Group 2 from 25% reduced to 20%; with the tax rate kept at 50% for Group 3.
Details of specific product groups are as follows:
Group 1 are products includeing books, publications, and video materials used in education; information technology products such as computers, professional camcorders, digital cameras; food, drinks; gold and silver; Household appliances; toys, electronic games or other entertainment items; medicine. In particular, specific pharmaceuticals (including cancer drugs and treatment for rare diseases) are applied VAT at the import stage of 3%.
Group 2 are sports items (excluding golf balls and golf equipment); fishing tools; textile products and finished garment products; cameras and other electrical equipment; bicycles and products that not include in Group 1 and Group 3.
Group 3 (items retaining the 50% tax rate) include cigarettes, wine, gem jewelry, golf balls and golf tools, high-end wrist watches, and high-end cosmetics.
The announcement of the Chinese side stated: This adjustment combined with VAT adjustment measures to help expand imports, promote consumption, to meet the increasing living needs of people's lives.
Although postal taxes are naught but a small tax group, focusing on daily consumer goods (food, textiles and clothing), the beneficiaries (apart from Chinese tourists travelling abroad) are international commercial enterprises, e-commerce and logistics businesses.
The Asian Market - Africa Department recommends that, in the context of China has some movements of adjusting to reduce duties, Vietnamese enterprises (especially enterprises in the field of processed food and beverages and textiles) can learn and study more carefully about the relevant policies of China to seek opportunities to penetrate the market through the form of e-commerce which is currently very developed in China.
By Thanh Nguyễn/Thanh Thuy