HCM CITY: The Law on Import-Export Duties, which took effect in 2006, has had a positive impact but it needs to be revised to reflect the country’s continuing economic international integration, Vu Ngoc Anh, deputy general director of the General Department of Viet Nam Customs, has said.
Anh spoke at a workshop held in HCM City last Friday on a draft law on import and export duties. The draft aims to reform administrative procedures, improve the business environment and enhance national competitiveness.
Anh said the revised law would ensure compliance with international commitments and align the country’s regulations with Free Trade Agreements with its partner countries, as well as create favourable conditions for enterprises. New provisions in the law deal with the fight against smuggling and trade fraud while facilitating exports, especially goods with high added value, and protecting domestic products.
Representatives of business associations attending the workshop said they appreciated the added regulations on anti-dumping, anti-subsidy and safeguard duties to protect domestic production.
They were also pleased with the new provision on tariff exemptions on materials and components imported to process exports, saying that this would help local firms save costs and time.
Truong Dinh Hoe, general secretary of the Viet Nam Association of Seafood Exporters and Producers, said under current law, enterprises enjoyed a 275-day grace period on tax payments for imported raw materials for production, but to receive this benefit, they must complete many procedures.
For enterprises not subject to a preferential tariff, they must pay import tax on imported materials to process for export. They then must apply to receive a tax refund after they export the finished products. This adds time and costs. Local seafood exporters have to import many materials from other countries for production.
Although exporters and the association were pleased with the new provision, Hoe said the tax exemption should be used at time of custom clearance to ease the burden on businesses and customs staff.
Similarly, businesses involved in the cashew processing industry also appreciated the new provision as they import a high volume of raw cashew nuts from other countries to meet processing demand for export, according to Dang Hoang Giang, deputy chairman of the Viet Nam Cashew Association.
The exemption of tariffs on imported materials to process exports would help local firms save a great deal of time and lower costs, he said. The draft law is scheduled to be submitted to the National Assembly for approval in October, and take effect on July 1, 2016.
