Vietnam Adjusted Import Duties on Mechanical Products

The Ministry of Finance of Vietnam recently issued an Announcement on stipulations concerning taxation preferences for import and export.

According to the Announcement, as from March 2, 2009 till December 31, 2015, tax cuts shall apply to materials and parts & accessories needed for the production or construction of part of mechanical equipments, including gantries over 50 tons, bridge piers over 30 tons, cranes over 10 tons, crane chains over 50 tons, wheel cranes over 50 tons, sea cranes over 20 tons, tower cranes over 5 tons, diesel locomotives over 800 horsepower, billet casters over 1.5 tons, high alloy casting, shipbuilding steel/iron, and all types of agricultural machines (farming, harvesting, storing, and processing of agricultural and fishery industry)

Importing enterprises or import agents of lifting appliances and parts & accessories shall confirm their import qualification by the steering committee of major mechanical products.

The importing enterprises or import agents shall promise to use the imported products for the production of lifting appliances.

In the case of failing to meet the above conditions or using the imported products for other purposes, the preferential import tariffs at the time of the registration of the customs declaration forms shall apply to such imported products.