“In the regular meeting of the Government in November 2020, the Government agreed on the request of the Ministry of Finance on tax exemption for goods imported for production and export as prescribed in Clause 7, Article 16 of the Law on Export Tax. , Import Tax.
The Government unanimously agreed on the request of the Ministry of Finance that the goods are imported for export production but the enterprise gives a part of the imported raw materials, supplies and components to hire another enterprise to process or hire another enterprise for processing. The completion of one or several stages of the product and has received the semi-finished product back for further export production or the receipt of the finished product for full export abroad, shall be exempt from import tax as prescribed in Clause 7. Article 16 of the Law on Import Tax and Export Tax No. 107/2016 / QH13.
The Government assigns the Ministry of Finance to direct the customs office to refund the tax amount paid by the enterprise according to regulations, not to retrospectively collect tax in cases where the assessed tax has not been paid; have strict management measures, preventing the situation of taking advantage of, taking advantage of the policy. ” - According to Vietnam Financial Times
Based on the writer's personal point of view, so enterprises that import raw cashew nuts from abroad can hire factories to process part or whole of the production and receive back the semi-kernel to continue to process or finished kernel for exportation will be tax free!
This policy creates favorable conditions for the cashew industry to develop faster and stronger, contributing to consolidating Vietnam's No. 1 position increasingly firmly on the world cashew industry. Because not all small factories can import raw materials and export by themselves, while this force accounts for over 50% of manufacturing enterprises. Meanwhile, not all import-export enterprises can have enough experience and technology to process by themselves.
The combination of import-export business with strong financial capacity, global trading network system and domestic factories with existing factory machinery system, holding experience and technology Advanced production will help to specialize and improve the industry's production capacity, thereby increasing the gap with India (the second largest cashew producer in the world).
Vietnam is the world's largest cashew-producing country with an annual export turnover of over US $ 3 billion. The annual growth rate of export volume is 10 - 15%, one of the key agricultural sectors of Vietnam.
Steve - Asiafri commodity news
