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Toàn quốc Are Tariffs good for the economy?

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17/8/20
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#1
What is the Special Preferential Import Tariff?
The special Preferential Import Tariff is the tax rate applicable to imported goods originating from a country, group of countries or territories that have special agreements on import tax in trade relations with Vietnam.
Are Tariffs good for the economy?
Historical evidence shows that tariffs raise prices and reduce available quantities of goods and services for U.S. businesses and consumers, which results in lower income, reduced employment, and lower economic output. Tariffs could reduce U.S. output through a few channels.
The Preferential export tariffs specified
Preferential export tariffs specified in Appendix I attached to the Decree include goods codes, description of goods, and preferential export tax rates for different stages to export countries prescribed in the trade deal, including the EU member States and the United Kingdom of Great Britain and Northern Ireland, for each goods code.
Goods eligible for Preferential Export Tariff rates shall have to satisfy the following conditions:
Goods prescribed under the EVFTA
Goods with a transport document (copy) showing the export destination are the EU member countries or the United Kingdom of Great Britain and Northern Ireland.
Being issued with customs declaration of export consignment originated from Viet Nam (copy and English or Vietnamese translation in case the declaration is not in English).
To be eligible for special preferential import tariff rates under the EVFTA, imports shall have to meet the following conditions:
Specified in the Appendix II attached to this Decree
Imported into VietNam from territories of the EU member States as prescribed in Appendix III attached to this Decree, the United Kingdom of Great Britain and Northern Ireland, the Principal of Andorra, the Republic of San Mario.
Meeting all regulations on the origin of goods and having certificates of origin as prescribed under the EVFTA
Earlier in August, Prime Minister Nguyen Xuan Phuc approved a plan to implement the trade pact which took effect on August 1.
The official signing of the trade pact in Ha Noi on June 30, 2019 marked the new turning point in the Viet Nam-EU relations as it is expected to broaden opportunities for the two sides’ businesses, particularly it offers chances for economic recovery in the post-COVID-19 period.
Under the agreement, Viet Nam will cut 65% of import tax on EU commodities right after the deal takes effect, while the rest will be eliminated in a 10-year period.
Meanwhile, the EU will cut more than 70% of tariff on Viet Nam’s commodities right after the deal comes into effect and the rest will be removed in the seven subsequent years.
According to the General Department of Customs, in August this year, VietNam gained US$3.78 billion from exporting to the EU.
Visit atslegal.vn to get more about Preferential Import Tariff
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