The Ministry of Finance announced the draft report on the draft Decree of Export Tariff schedule and Preferential Import Tariff schedule, a list of commodities, specific duties, combined tariff, and out-of-quota import duties rates to submit to the Government.

It is necessary to issue a new Decree to replace four Decrees

According to the Ministry of Finance, the implementation of the Decrees on the promulgation of the Export Tariff schedule and Preferential Import Tariff schedule in recent years has basically achieved the goals and requirements set forth upon promulgation; contributing to stabilizing the macro-economy, increasing exports, limiting the import of goods which are already produced domestically; ensuring the uniformity of the legal system and creating favorable conditions for customs authorities and enterprises in the implementation process.

Accordingly, the Export Tariff rate and Import Tariff rate specified in the Decrees must be consistent with the commitments on tariff reduction by the WTO and international commitments on export tariff and import tariff in the Free Trade Agreements to which Vietnam is a member.

Besides that, the implementation of the Decrees on the Tariff has contributed to stabilizing the macro-economy; promoting exports; restricting the import of goods that are already produced domestically. At the same time, it ensured the uniformity of the legal system, creating favorable conditions for customs authorities and enterprises in the implementation process. Thereby, promoting domestic production to develop, supporting enterprises to expand production and business, and enhancing competitiveness in domestic and international markets.

However, in order to meet new requirements stemming from the country's development practice as well as to continue implementing international commitments, the Ministry of Finance considered it necessary to review to issue a new Decree to replace four Decrees: Decree No. 122/2016/ND-CP; Decree No. 125/2017/ND-CP, Decree No. 57/2020/ND-CP and Decree No. 101/2021/ND-CP.

To fulfill this, the Ministry of Finance recently published a draft of the Government Report on the draft Decree on Export Tariff schedule and Preferential Import Tariff schedule, a list of commodities, specific duties, combined tariff and out-of-quota import duties rates.

According to the Ministry of Finance, the promulgation of this Decree must ensure compliance with the 2022 ASEAN Harmonized Tariff List approved by ASEAN countries. At the same time, it contributes to promoting administrative procedure reform, simplifying the Tariff, and creating favorable conditions for people, businesses and customs authorities.

The Ministry of Finance also said that since the issuance of Decree No. 122/2016/ND-CP, the Ministry of Finance has periodically reviewed and coordinated with ministries and sectors to promptly submit to the Government for adjusting MFN import tax rates, export tax rates of a number of items to suit the actual situation and socio-economic development requirements set out in each period.

However, the Ministry of Finance continues to receive a number of proposals from ministries, sectors, associations and international organizations requesting to adjust the export tax rate and import tax rate of some items. Accordingly, it is necessary to review amend and supplement appropriately, especially in the context that the prices of some commodities which are input materials for production tend to increase.

Consistent with the commitment to cut tariffs by the WTO

In the draft report, the Ministry of Finance affirmed the promulgation of the Decree on Export Tariff schedule and Preferential Import Tariff schedule, a list of commodities, specific duties, combined tariff and out-of-quota import duties rates aiming to contribute to macroeconomic stability; promptly remove difficulties for domestic production and business enterprises; encourage enterprises to continue to invest, innovate technology, and reduce product prices to increase competition with imported products.

At the same time, contributing to the implementation of the policy of protecting, exploiting and effectively using natural resources in the country; restricting the export of products that use a lot of raw materials and fuels which are non-renewable mineral resources; and encouraging the export of products with high added value.

This Decree will also ensure simplicity, making it easy to understand, easy to implement, facilitation, and reduction of compliance costs for taxpayers and customs authorities in the implementation process.

The principles for the formulation of the Decree will also be consistent with the commitments on tariff reduction in the WTO; comply with the principles on promulgating tax schedules and tax rates specified in the Law on Import and Export Taxes; in accordance with the HS 2022 List and the AHTN 2022 List (ASEAN Harmonized List of Descriptions and Codes of Import and Export Goods); ensure to leave enough room for the negotiation of new FTAs ​​in the future.

At the same time, the new Decree will also ensure the principle of fairness; harmonize benefits for the production, business, and domestic consumption activities and trade relations with major partner countries.

Source: Customs News