The Ministry of Finance (MOF) recently unveiled a draft decree detailing a number of articles of the Law on Import Duty and Export Duty, additionally specifying a number of cases eligible for duty exemption or reduction.
|Customs officers inspect imported cargoes at Saigon port__Photo: Internet|
The draft provides duty exemption within the duty-free limits for luggage of persons on entry in or exit from Vietnam; donations or gifts; goods traded among border inhabitants or sold by foreign traders in border markets; goods imported or exported for processing; imported goods for export production; etc.
The MOF also proposes duty exemption for goods imported to create fixed assets of projects eligible for investment incentives; imported materials and parts of projects in fields in which investment is specially encouraged; localities with extremely difficult socio-economic conditions and materials imported for manufacturing or assembly of medical equipment, which cannot be produced at home.
In addition, materials and parts imported for export processing, and processed exports will not bear import and export duties. However, drafters propose processed exports having the value of natural resources, minerals and energy accounting for more than 51 percent of their prices to be dutied.
To conform with international practices as well as TPP commitments, the draft suggests import duty exemption for goods samples of small value; pictures, films or models for use as substitutes for samples, and advertising publications.
To be free from duties, a gift from a foreign organization to a Vietnamese individual or given by a Vietnamese to a foreigner must be valued at no more than VND one million (from current VND two million).
Similarly, goods delivered by express mail service with a value of under VND one million or with a payable duty of under VND 100,000 will be exempt from the duty.
The duty-free limit for advertising publications such as leaflets, commercial catalogs, yearbooks and tourism posters to be freely distribution for product advertising is one piece or one kilogram of issues of the same publication in each shipment.
Regarding duty reduction, the conditions, dossiers, order and procedures of, and competence to decide on goods under customs supervision to be entitled to, duty reduction are also provided in the draft.- (VLLF)