14:58 | 01/08/2016 Finance - Banking
(VEN) - The amended law on export and import duties officially takes effect on September 1, 2016 with detailed regulations on trade protection tax, being seen as an active step forward in tax reforms to adapt to international economic integration.
Vietnam’s trade protection tax including anti-dumping, anti-subsidy and protectionist duties was mainly applied following the World Trade Organization regulations. At that time of developing and issuing the 2005 Law on Export Duty and Import Duty, law makers did not have experience in terms of appeal and lawsuits. Therefore, regulations related to trade protection tax remained unclear, while there was no completed legal framework for the application of tax protection measures. In addition to the 2005 Law on Export Duty and Import Duty, trade protection measures were stipulated in the anti-dumping, anti-subsidy and protectionist ordinances, causing difficulties for the implementation process.
Vietnam’s international economic integration process has been strongly implemented. To meet requirements prescribed in the Trans-Pacific Partnership, EU-Vietnam Free Trade Agreement and Eurasian Economic Union-Vietnam Free Trade Agreement and the ASEAN Economic Community, the National Assembly approved detailed regulations in the amended law on export and import duties, while abrogating trade protection measures stipulated in the anti-dumping, anti-subsidy and protectionist ordinances. The amended law is sorted clearly in line with the trend of the international integration and the commitments relating to export and import duties in free trade agreements of which Vietnam is a member.
Concepts of anti-dumping, anti-subsidy and protectionist duties are more specified in the amended law. Anti-dumping duty is an import surtax to be imposed on imports dumped into Vietnam causing or threatening to cause a material damage to the domestic production sector or preventing the formation of the domestic production sector, while anti-subsidy duty is an import surtax to be imposed on subsidized goods imported into Vietnam causing or threatening to cause a material damage to the domestic production sector or prevent the formation of the domestic production sector. In addition, protectionist duty is an import surtax to be imposed on goods excessively imported into Vietnam causing a serious damage or threatening to cause a serious damage to the domestic production sector.
The amended law also specifies the conditions and principles for application as well as responsibility of agencies. The Ministry of Industry and Trade will decide the application of anti-dumping, anti-subsidy and protectionist duties, while the Ministry of Finance will handle the declaration, collection and refund of these duties.
The amended law on export and import duties will contribute to improving the competitiveness of Vietnamese goods. It is seen as an active step forward to adapt to the integration process.