This update highlights the key customs and global trade on January 2024.
This update highlights the following matters:
- Decree on Value-Added Tax (VAT) reduction applicable for the first 6 months of 2024
- Switzerland officially abolishes import duty on industrial products
- The Ministry of Industry and Trade (MoIT) issued a List of potentially unsafe products and goods
- Official Letters (OLs) provide guidance on:
- Guidance on the application of VAT reduction at importation stage
- The issuance of electronic Certificates of Origin (e-C/O)
- C/O Form D verification website
- The State inspection for Food Safety and Hygiene (FSH) of imported goods
- Additional declaration of VAT paid at the importation stage
- Document replacing sales invoices when Export Processing Enterprises (EPEs) sell goods in the domestic market
- Business location of EPEs
- Procedure of transporting goods to construction projects of EPEs
Decree on VAT reduction applicable for the first 6 months of 2024
On 28 December 2023, the Government issued Decree No. 94/2023/ND-CP (Decree 94) providing guidance on the reduction of VAT following Resolution No. 110/2023/QH15 dated 29 November 2023 of the National Assembly.
Decree 94 outlines the following notable points:
- It continues the implementation of a 2%-point VAT rate reduction for group of commodities and services which are normally subject to a VAT rate of 10%, except for the following groups detailed in Appendices attached to Decree 94, including:
- Appendix 1: Tele-communications, financial activities, banking activities, securities, insurance, real estate business, metals and products of prefabricated metal production, products of mining activities (exclusive of coal mining activities), coke, refined petroleum, chemical products
- Appendix 2: Goods and services subject to the Special Consumption Tax
- Appendix 3: Information technology in accordance with regulations on information technology
- The VAT reduction is applied consistently at all stages including importation, production, processing, and commercial trading.
- Decree 94 also provides guidance on the preparation, issuance, and declaration of VAT invoices applicable for business establishments adopting the VAT credit method and others (including business and individual business households) adopting VAT direct method.
Decree 94 enters into force from 1 January 2024 to 30 June 2024. Please refer to Decree 94 for further details.
Switzerland officially abolishes import duty on industrial products
According to information shared by Vietnam Trade Office in Switzerland[1], the Swiss Federal Council has agreed on an effective date for the abolishment of import duties for industrial products imported into Switzerland.
Thus, customs duties on industrial goods classified under HS codes from Chapter 25 to Chapter 97 of the HS Nomenclature (except for certain agricultural products classified under Chapter 35 and 38) are abolished upon importation into Switzerland from 1 January 2024.
- The abolishment of industrial tariff applies for goods originating from all countries.
- he abolishment of the industrial tariff does not change the customs clearance procedures. The importer of record is still required to make customs declaration and payment for all applicable fees, charges incurred upon importation, including import VAT.
The MoIT issued a list of potentially unsafe products and goods
On 28 December 2023, The MoIT issued Circular 41/2023/TT-BCT (Circular 41) promulgating a list of potentially unsafe products and goods under its management (goods in group 2).
Goods in group 2 includes those categorized in group of explosive precursors and industrial explosive materials. The list of goods in group 2 is detailed in Appendix of Circular 41 with corresponding HS codes, technical standards, and relevant notes.
The quality management of products and goods is implemented in accordance with Circular 36/2019/TT-BCT dated 29 November 2019 of the MoIT.
The Circular enters into force on 15 February 2024. Please see further details in Circular 41.
Some guidance provided in the form of OLs:
[1] Switzerland officially abolishes industrial import tariff (moit.gov.vn)