Understanding Vietnam’s Import and Export Regulations
Written by GBS | gbs.com.vn
Tuesday, 10 November 2015 16:49 -
GBS - Once an investor has set up their trading company within Vietnam, it is important that
their workers gain a strong understanding of the country’s import and export regulations and
procedures. Below we lay out the key takeaways that companies must be aware of before
starting their trading activities in Vietnam.
Import and Export Licensing Procedures
Vietnam does not require a company to have an import/export license in order to set up a
trading company. However, in order to be able to conduct import/export business, a foreign
investor must register with the Department of Planning and Investment (DPI). Additionally,
foreign investors who wish to engage in import/export activities in Vietnam are required to
obtain an Investment Certificate. Companies that wish to expand their current business
operations in order to engage in import/export activities must follow the procedures for adjusting
their Investment Certificates.
According to Circular 34/2013/TT-BCT, there are certain goods that foreign invested enterprises
may not export from, or import into, Vietnam. Goods banned for export include petroleum oil.
Goods banned from import into the country include cigars, tobacco, petroleum oils, newspapers
and journals, and aircraft.
Certain goods require the trading company to obtain import and export permits from the
government, these include:
- Goods subject to export control in accordance with international treaties to which Vietnam
is a contracting party
- Goods exported within quotas set by foreign countries
- Goods subject to import control in accordance with international treaties to which Vietnam
is a contracting party
- Explosive pre-substances and industrial explosives
All imports and exports must comply with the relevant government regulations on quarantine,
food safety, and quality standards, and must be inspected by the relevant government agencies
before clearing customs.
Import/Export Duties
Most goods imported/exported across the borders of Vietnam, or which pass between the
domestic market and a non-tariff zone, are subject to import/export duties. Exceptions to this
include goods in transit, goods exported abroad from a non-tariff zone, and goods passing from
one non-tariff zone to another.
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Understanding Vietnam’s Import and Export Regulations
Written by GBS | gbs.com.vn
Tuesday, 10 November 2015 16:49 -
Most goods and services being exported are exempt from tax. Export duties (ranging from zero
percent to 45 percent and computed on free-on-board (FOB) price) are only charged on a few
items, mainly natural resources such as minerals, forest products, and scrap metal.
Consumer goods, especially luxury goods, are subject to high import duties, while machinery,
equipment, materials and supplies needed for production, especially those items which are not
produced domestically, enjoy lower rates of import duties, or even a zero percent tax rate. Duty
rates for imported goods include preferential rates, special preferential rates, and standard rates
depending on the origin of the goods.
Import/export duties declaration are required upon registration of customs declarations with the
customs offices. Export duties must be paid within 30 days of registration of customs
declarations. For imported goods, import duties must be paid before receipt of consumer goods.
Depending on the trade conditions, Vietnam imposes a number of different types of duties on
the import and export of goods. Companies wishing to find in-depth information on a range of
goods would be well advised to visit the website of Vietnam Customs.
Imports
Vietnam imposes a tax on almost every type of product that is imported into the country. The
import tax rates range depending on the type of product, for example, consumer products and
luxury goods are highly taxed while machinery, equipment, and raw materials, tend to receive
lower taxes and even tax exemptions. Imports are subject to import tax, Value-added tax (VAT)
and, for certain goods, Special Consumption Tax (SCT).
Tax rates applicable to imported goods include preferential tax rates, special preferential tax
rates, and ordinary tax rates:
- Preferential tax rates apply to goods originating from countries, groups of countries, or
territories, which apply the most favored nation treatment in their trade relations with Vietnam
- Special preferential tax rates apply to goods originating from countries, groups of
countries, or territories, which apply special preferences on import tax to Vietnam
- Ordinary tax rates apply to goods originating from countries, groups of countries, or
territories, which do not apply the most favored nation treatment of special preferences on
import tax to Vietnam. Ordinary tax rates will be no more than 70 percent higher than the
preferential tax rates specified by th