VCN- At the talk show entitled “Tax policies and Customs procedures when implementing CPTPP” held by the Customs Newspaper in Ho Chi Minh City on May 28, Director of International Cooperation Department under the Ministry of Finance Vu Nhu Thang talked about information related to the promulgation of Decree on Vietnam’s Preferential Export Tariffs and Special Preferential Import Tariffs for the implementation of the CPTPP agreement.
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|Vu Nhu Thang (middle) shared information at the talk show.|
Thang a decree has been submitted to the Government and is expected to be promulgated at the end of May or early June. At that time, enterprises that imported and exported goods to CPTPP member countries will enjoy special incentive tax rates from January 14, 2019.
The tariff will have a four-year roadmap, from 2019-2022, which is a relatively reasonable period for enterprises to plan production and business.
Thang also also pointed out four conditions that businesses need to meet to enjoy incentives in the CPTPP agreement.
Firstly, businesses should note whether or not the country which they export or import goods has implemented the CPTPP. So far, in addition to Vietnam, there are only six countries that have approved and implemented this agreement.
Therefore, businesses are only entitled to incentives when exporting and importing goods to these six countries. In the future, if more countries approve and implement the CPTPP, the Ministry of Finance will announce the roadmap for these countries..
Secondly, in the four-year roadmap, businesses should check tariff lines for their products and the roadmap of reduction of that tariff lines. For example, cars imported from Japan, the tax rate in 2019 will fall to 64% and the following years will decrease by about 6% per year.
Thirdly, to enjoy incentives, businesses must have import dossiers in the importing country and transport documents. Accordingly, goods exported from Vietnam must be transported to the destination place in the importing country to avoid abuse to export to a third country.
If goods are not directly transported from the exporting country to the importing country but transit in member countries, they are considered direct transport. In addition, goods can be transshipped or transited in countries that are not CPTPP members. However, during transshipment and transit, the goods production stages are not be arisen and the nature and origin of goods is not changed, goods shall enjoy tax incentives.
Fourthly, the goods must have a certificate of origin from CPTPP member countries.
Thang said that the preferential export tariffs and preferential import tariffs are applied for two country groups that have implemented the CPTPP since the end of 2018 (including Canada, Australia, New Zealand and Singapore) and the country group implemented since 2019. Accordingly, when businesses import goods, they should study the tariffs to understand the road map for tax reduction. For example, the road map for the tax reduction for goods imported from Australia is the second year, and from Mexico is the first year.
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Regarding export taxes, because the preferential export tariffs are not yet issued, when exporting goods to CPTPP member countries, businesses still must pay taxes and the transport documents and customs dossier are required. Within a year after the goods arrived to the destination place, businesses shall submit the customs dossiers to Customs for tax refund.
Thang also recommended that the import tax reduction is only one incentive for Vietnam’s goods to enter markets. Whether the goods can enter the markets or not depends on the quality of the product and the technical standards of the importing country as well as the requirements of goods origin.
By Nguyen Hien/Ngoc Loan