It is obvious to see the big potentials which CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) bring to Vietnam, especially import-export section. On 26 June 2019, Prime Minister of Vietnam Nguyen Xuan Phuc has signed the Decree No. 57/2019 / ND-CP promulgating the preferential export tariff and special preferential import tariff. Thanks to this Decree, people will have more chances to approach to foreign goods with more reasonable price, import- export enterprises will also take advantages from the import-export tax reduce products
Eligible goods for tax reduction
The preferential export tariff includes 519 tariff lines. For goods are not involved in this preferential export tariff, a tax rate of 0% will apply when enterprises export to countries that have ratified the CPTPP.
Special preferential import tax includes 10,647 tariff lines under following CPTPP. For import, at first, the commodities from 6 countries: Australia, Singapore, Nhật Bản, New Zealand, Canada and Mexico import to Vietnam will be eligible for preferential tariff. Especially, in the category of import goods eligible 0% tax rate, there are agricultural, forestry and aquatic products, fruits and fresh fruits that Vietnamese people really like such as strawberries, kiwi, blueberries, raspberries ...and the items related to construction materials. Therefore, it is easy to see Vietnamese market will become vibrant in the near future thanks to commodity diversification, competitive price and improved quality of the products.
Beside the items entitled to import and export tax reduction after this decree, there are others have tax reduce following schedule. According to decree 57/2019/ND-CP, there are 4 stages of tax reduction: From 14/1/2019 to 31/12/2019, 2020, 2021 and 2022.
Time for Decree 57/2019/ND-CP taking effect
Following CPTPP rule, the countries approving the agreement before will notify the countries approving the agreement later for tax reduction schedule.
5 countries: Singapore, Japan, New Zealand, Australia and Canada notified Vietnam already about second time tax reduction from 14 January 2019 and Vietnam also applied the same tax reduction for those 5 countries on the same date. For Mexico, 14 January 2019 was also the date for Vietnam and Mexico giving notice of first time tax reduction.
The CPTPP Agreement took its effect to Vietnam from January 14, 2019, but until June 26, 2019, the Prime Minister signed Decree 57/2019 / ND-CP on preferential import and export tariffs under the CPTPP. Therefore, for companies who had customs declaration from January 14, 2019 to before June 26, 2019, if all conditions are met, they will still be eligible for preferential tax rates. However, if they already paid tax following the previous rate, the enterprises would be refunded the overpaid tax amount as prescribed by law.
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