Name of recommendations: A recommendation on considering the application of 0% import tax on imported sturgeon eggs for breeding.

Status: Has not been responded

Recommended by units: The Phi Huynh Ltd Company

Official letter: No 0228/PTM -VP, dated: 2018-02-09

Recommended contents:

To implement the policy of the Ministry of Agriculture and Rural Development as well as the Lam Dong People's Committee, our company is one of the leading enterprises in exploiting barrennesses, remote areas for development of cold-water fish, mainly are sturgeons (a type of fish with high economic value, imported into Vietnam in recent years and be suitable for raising in some areas of low temperature). However, the technology of producing this species in Vietnam is at the experimental stage. The production seed is almost completely dependent on the import of breeding eggs from abroad to breed for commercial purposes.  In order to have breed, our company also have to contact to import eggs from abroad.

In the process of importing eggs, our company certifies that this is the product for propagation in accordance with Clause 2, Article 4 of Circular No. 219/2013 / TT-BTC dated December 31, 2013 of the Ministry of Finance The main provisions are as follows: "Products are livestock breeds, plant seeds, including breeding eggs, breeding stocks, seedlings, seeds, breading branches, breading tubers, breading semen, embryos and genetic materials in the stitches of aquaculture, import and trading. Products of livestock breeds and plant varieties that be not subject to VAT are products imported or commercially registered by the establishments which have registered the domestic production of livestock breeds or plant varieties by the State management agencies. For products are  animal breeds and plant varieties of the State which promulgated standards and quality, they must satisfy the conditions prescribed by the State… They are all objects that be not subject to VAT”. It means that products are not subject to import duties.

Therefore, when declaring import application, our company declares the branch code 05119990 .Products in this branch code, we do not have to pay import tax. However, in the Document No. 7675 / TCHQ-TXNK dated November 22, 2017 of General Customs supposed that  the product of breeding sturgeon eggs under the code 05119100 is subject to import tax of 5%. (Code no. 05119100 including fish and crustaceans, molluscs or aquatic invertebrates or dead animals of Chapter 3).

We think that if applying sturgeon eggs for breeding in the industry code is not satisfied because this is the product, the item from the seedling, the seed has been supported by the State, encouraging businesses and  people for development.. According to the Circular No. 182/2015 / TT-BTC dated November 16, 2015, all commodity seedlings and varieties are subject to a tax rate of 0% (for example, shrimp, fingerlings, fish feed ...) why our company imports Sturgeon eggs for breeding that must be subject to the tax rate of 5%.

Due to the development of sturgeons in Vietnam, there are some obstacles such as: Seed serves production that be almost completely dependent on imported eggs from abroad. The technology is not really complete, resulting in unstable productivity and efficiency. Foods are produced in the country but they still not meet requirements. The distribution system, consumption of new products began to be formed,  so they are not really  trained , the development regions are in remote areas .... From the above difficulties, it leads to high production costs in the country and high competition from fierce sturgeon products from China

In order to reduce difficulties for our business in particular and sturgeon farming in general, our company would like to recommend to the Ministry of Finance, Ministry of Agriculture and Rural Development to consider the application of import tax on fish eggs range is 0% as other aquatic species that are being imported for the purpose of breeding for production.