Conditions for enterprises to select whether applying FTA or tax exemption
Producting import - export products at Matrix Vinh Company (Nghe An province). Photo: H.Nụ |
Regarding this problem for enterprises, General Department of Vietnam Customs said that, according to Clause 6 of Article 16 of the Import and Export Tax Law, "raw materials and components imported for processing of export products; finished products imported for attaching to processed products; processed products for export production” are exempted from import-export tax.
In cases where enterprises registered their declarations in the form of importing raw materials for processing for foreign traders, they shall enjoy tax exemption and have to carry out customs procedures and apply tax policies on import – export goods for processing for foreign traders in accordance with regulations.
In cases where enterprises registered their declarations in the form of importing for business operation, if the imported goods satisfy all the conditions as prescribed in the Decrees promulgating the special preferential import tariff, the enterprises will be applied the rate of special preferential import tariff.
At the same time, in the Article 6 and Article 8 of the Import – Export Tax Law stipulated preferential tax rate shall be based on the actual import and export goods at the time of tax calculation. If the enterprise meets both the conditions as stipulated in the FTA and the tax exemption as specified in the Import – Export Tax Law, enterprises shall be entitled to choose for applying the FTA or tax exemption in accordance with the Import – Export Tax Law.
In cases where enterprises choose preferential policies, they shall have to carry out the customs procedures corresponding to their choice in accordance with the provisions of law.
For example, in order to apply the tariff rate under the ASEAN Trade in Goods Agreement (ATIGA), the Decree 156/2017/ND-CP of the Government dated 27/12/2017 stipulates that imported goods must meet the conditions stipulated in the Article 4 of the Decree.
Related News
Bac Ninh Customs committees to listen and share difficulties with enterprises
20:34 | 01/04/2023 Customs
Vinh Xuong International Border Gate Customs: Resources and solutions are ready to facilitate trade
10:37 | 16/03/2023 Customs
Customs answer enterprises' questions to make use of the advantages of FTAs
10:09 | 13/03/2023 Customs
Lang Son Customs: Thoroughly applying solutions to increase state revenue
09:57 | 15/03/2023 Customs
Latest News
Customs creates maximum facilitation for agricultural exports
15:56 | 07/06/2023 Customs
Goods imported from export processing enterprises must pay tax
14:50 | 10/04/2023 Customs
GDVC perform tasks in second quarter of 2023
09:47 | 06/04/2023 Customs
Facilitates import and export enterprises amid difficult context
09:46 | 06/04/2023 Customs
More News
Da Nang International Terminal a certified 4-star terminal
10:24 | 05/04/2023 Customs
Dong Nai Customs: understand the business situation to develop effective support solutions
13:27 | 04/04/2023 Customs
Lang Son: Import-export turnover grow 71%
09:53 | 03/04/2023 Customs
HCM City Customs Department facilitates and resolves difficulties for enterprises
09:51 | 03/04/2023 Customs
Lang Son: Goods rushing to border gate increases sharply, potential risk of congestion
10:33 | 02/04/2023 Customs
Ho Chi Minh City Customs removes obstacles for logistics businesses
20:33 | 01/04/2023 Customs
Bac Ninh Customs considers satisfaction of businesses to assess efficiency of customs reform
11:36 | 01/04/2023 Customs
HCM City Customs make efforts in budget collection
13:43 | 31/03/2023 Customs
Noi Bai Customs reorganizes the implementation of National Single Window
13:39 | 31/03/2023 Customs
Your care
The system has not recorded your reading habits.
Please Login/Register so that the system can provide articles according to your reading needs.
Customs creates maximum facilitation for agricultural exports
15:56 | 07/06/2023 Customs
Goods imported from export processing enterprises must pay tax
14:50 | 10/04/2023 Customs
GDVC perform tasks in second quarter of 2023
09:47 | 06/04/2023 Customs
Facilitates import and export enterprises amid difficult context
09:46 | 06/04/2023 Customs
Da Nang International Terminal a certified 4-star terminal
10:24 | 05/04/2023 Customs