Vietnam Customs Tariff
Vietnam‘s law on export and import tariffs was first adopted in 1991 and after several adjustments, in 1993 and in 1998, the amended law in 1998 officially came into effect and was valid until the birth of the 2005 law. The 1998 amended law consists of 97 chapters and 6247 tariff lines, in accordance with the Harmonized Tariff System (1996 version).
The tariff schedule had 19 different tariff rates ranging from 0 -100%; 13 out of these are basic ones while the remaining tariff rates are special ones. Such goods as alcohol, petroleum products, automobiles, motorbikes, cosmetics, glass are subject to the highest tariff rates while material inputs for production such as machinery, equipment, materials were subject to lowest tariff rates.
The 2005 law was in effect since January 2006, marking important changes in Vietnam‘s import and export tariffs. Some featured factors of the law as follows:
The law marked the redefinition of the governing scope. To illustrate, import and export duties are imposed on goods imported and exported through border gates and boundaries of Vietnam and goods traded between the domestic market and non tariff areas. Goods that are not liable to tariffs include goods in transit, goods as humanitarian aid, non-refundable aid, goods traded between non-tariff zones and foreign countries and state-owned exported oil.
If an international treaty to which Vietnam is a party contains provisions on customs tariffs different from that of the 2005 law, the provision of the treaty shall apply. The new governing scope is more detailed and clearer than the old one.
When it comes to prices used for calculation of duties, there are differences between export and import products. To illustrate, for export goods, tax calculation prices are the contractual sale prices at the exporting border gates; for import goods, prices are the actually paid prices at the first importing border gate under contracts, in accordance with international commitments.
Regarding tariff schedule, it consists of three tariff rate groups, namely ordinary, preferential and especially preferential rates. Preferential tariff tax rates are applicable for goods imported from countries, group of countries or territories, which had bilateral trade agreement with Vietnam or actually has granted MFN (Most Favored Nation) treatment to Vietnamese exports.
Special preferential tax rates are applicable to goods stemming from countries, group of countries or territories, which apply special preferences on import tax to Vietnam. Ordinary tax rates are used in other circumstances shall not be 70% higher than MFN ones (usually 50% higher than MFN ones). Turning to duties declaration and payment, taxpayers shall to pay customs tariffs fully, accurately and timely. The time for calculation of duties will be counted from the time when taxpayers submit the customs declaration to customs offices. Time for duties payment and exemption and reduction of duties are illustrated clearly in the 2005 law as attached below.
Related Readings:
Vietnam’s Tariff schedule
Vietnam and APEC
Vietnam Car Sale Tax
Vietnam and WTO
