Strengthen publicity of provisions in Decree 57/2020/ND-CP to businesses

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Deputy Director General of Vietnam Customs Luu ManhTuong addresses the workshop. Photo: H.N

Decree 57,issued on May 25, 2020, aims to be consistent with Vietnam’s Export and Import Classification Nomenclature (amended in 2017) handling proposals and problems of ministries, sectors, localities, associations and businesses arising over the past time. At the same time, Decree 57 implements the Government's policy on promoting and developing the auto industry and other mechanical industries. Decree 57 aims to reform administrative procedures, simplify tariffs, and facilitate tax administration of customs authorities, import and export activities of businesses. In addition, Decree 57 also encourages the import of raw materials and materials prioritised for production and processing of industrial products to support development of the automobile manufacturing and assembly industry in 2020 - 2024.

At the workshop, Tuong said Decree 122/2016/ND-CP took effect in September 1, 2016 and Decree 125/2017/ND-CP amending and supplementing articles of Decree 122/2016/NĐ-CP took effect in January 1, 2018, provisions on preferential import tax rate for imported auto components in Article 7a took effect from November 16, 2017.

The decrees have contributed to unifying the declaration of the code of import and export goods (HS codes) and import and export duties. Along with that, the provisions have contributed to boosting growth of import and export turnover. Tax rates are stipulated based on the principle of encouraging the import of raw materials and materials for production, prioritiseddomestic materials that have not yet met the demands under the Law on Export-Import Tax, theprovisions in the decrees are simple and transparent, facilitating taxpayers and reforming tax administrative procedures,the reduction in import tax rates of finished product and raw material and the increase in export tax rates of finished product and raw material have facilitated import and export activities. The regulations have also contributed to promoting the development of the auto industry and other mechanical industries and increasing State budget revenue.

The online training workshop on Decree 57/2020 /ND-CP. Photo: H.N

Although some results have been achieved, the above provisions have had some problems such as there are no preferential provisions for eco-friendly car; policies to encourage the development of supporting industries under Political Bureau Resolution 23-NQ-TW of March 22, 2018; preferential policies for key mechanical product manufacturing projects; and there is no regulation on declaring according to goods description in Vietnam’s Export and Import Classification Nomenclature in case this nomenclature is changed.

The import and export tax rates of some commodities specified in the Import and Export Tariff issued with Decree No. 125/2017/ND-CP are no longer consistent and must be adjusted to avoid trade fraud, encourage domestic production and to be consistent with international integration and reality.

“Therefore, to encourage enterprises to import raw materials and materials for production and processing in the automobile manufacturing and assembly industry; focus on developing high technology, source technology, energy saving and environmental protection and to be in accordance with the orientation of development of the State and commitments on import and export duties in international treaties which Vietnam is a memberof,contributing to stabilising the market and State budget revenue, Decree 57 aims to encourage imports of raw materials and materials prioritised for production and processing of industrial products to support development of the automobile manufacturing and assembly industry in 2020 – 2024,”Tuong said.

Decree 57 will take effect from July 10, 2020, while particularly Article 7a took effect from January 1, 2020, for effective implementation.Deputy Director General Luu Manh Tuong requested local customs departments to review andif there are any problems, they should report to the GDVC to provide prompt handling for problems. Tuongalso requested departments organiseconferences to publiciseto customs officers and guide the business community for the implementation. In particular, the departments need to focus on researching and receiving new content to effectively publicise for the business community.