Vietnam urged not to exempt cross-border e-com goods from import tax
The Vietnam Chamber of Commerce and Industry (VCCI) recently requested the Ministry of Finance for clearer regulations on import tax for e-commerce goods.
The request followed the release of the draft government decree related to customs management of e-commerce imports and exports.
Evaluating the regulation on import tax exemption for orders with a value of 1 million VND (~$40) or less, VCCI said that this mechanism was not suitable as it would create inequality with indigenously-produced goods.
The Vietnam Chamber of Commerce and Industry (VCCI) has urged the Finance Ministry for clearer rules on import tax for e-commerce goods. The request followed the release of the draft government decree related to customs management of e-commerce imports and exports. VCCI believes a comprehensive import tax policy should be drafted, without exemptions or reductions for imported e-commerce goods.
As the value of each e-commerce order is often low, mostly not exceeding 1 million VND, the regulation on the tax exemption threshold of 1 million VND means most imported e-commerce goods will not be subject to import tax.
Second, domestic manufacturing enterprises must pay import tax on input materials, while imported e-commerce goods are completely exempted. This creates inequality in tax policy, giving foreign goods a competitive advantage, a domestic media outlet reported citing the VCCI letter to the ministry.
VCCI believes a comprehensive import tax policy should be drafted, without exemptions or reductions for imported e-commerce goods.
However, the development of import tax policies for e-commerce goods will face many challenges, including the difficulty in applying HS code regulations as for traditionally imported goods for e-commerce goods.
The diversity of goods via e-commerce can lead to large-scale difficulties in accurately determining HS codes, delaying customs clearance and delivery, and even leading to order cancellations, causing damage to both sellers and e-commerce platforms.
Fibre2Fashion News Desk (DS)
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