Implementing the direction of the Government, the Ministry of Finance and the General Department of Vietnam Customs have issued many guidance documents and effectively implemented tax policies for import and export goods to support people and businesses affected by the Covid-19 pandemic.

According to the General Department of Vietnam Customs, after the Prime Minister signed Decision 173/QD-TTg dated February 1, 2020, declaring the acute respiratory disease caused by the new coronavirus (nCoV), facing the scarcity of the supply of medical masks and hand sanitizers, on February 4, 2020, the General Department of Vietnam Customs submitted to the Ministry of Finance to recommend to the Prime Minister to issue a decision on import tax exemption for medical masks and hand sanitizers in accordance with Point c, Clause 1, Article 28 of Decree 134/2016/ND-CP dated September 1, 2016 of the Government.

Based on the proposal of the Ministry of Finance, the Prime Minister issued Official Letter No. 197/TTg-KTTH agreeing to exempt import tax on medical masks, hand sanitizers and raw materials for producing medical masks, disinfectant, other necessary supplies and equipment serving for the prevention and control of acute respiratory infections caused by coronavirus, in which, the Ministry of Finance is assigned to promulgate a list of goods exempt from import tax.

In order to quickly implement tax solutions and policies for this item, the General Department of Vietnam Customs has urgently coordinated with the Ministries of Health, Industry and Trade, and relevant agencies to submit to the Ministry of Finance for promulgation a Decision 155/QD-BTC dated February 7, 2020, on the list of items exempt from import tax serving the prevention and control of COVID-19.

Customs officials of Investment/Processing Customs Branch performed tasks.
Photo: Thu Hòa.

Moreover, in order to remove difficulties and create conditions for enterprises to produce anti-pandemic clothes, the General Department of Vietnam Customs has continued working with the Ministries of Health, Industry and Trade, and related units to submit to the Ministry of Finance for promulgating Decision 436/QD-BTC dated March 27, 2020 on adding goods items exempt from import tax in the list of goods exempt from import tax serving for pandemic prevention issued together with Decision 155/QD-BTC.

When the Covid-19 pandemic broke out for the second time, the General Department of Vietnam Customs reported to the Ministry of Finance to submit to the Government on exempting tax for imported components for producing ventilators. As a result, Resolution 169/NQ-CP dated November 11, 2020 was issued by the Government.

Accordingly, on December 18, 2020, the Ministry of Finance issued Decision 2138/QD-BTC promulgating the list of imported components exempt from import duty for the production of ventilators to prevent Covid-19.

After that, to implement Decision 155/QD-BTC, Decision 436/QD-BTC, Decision No. 2138/QD-BTC of the Minister of Finance, the General Department of Vietnam Customs issued Document No. 864/TCHQ-TXNK dated February 14, 2020; No. 1592/TXNK-CST on February 19, 2020; No. 2106/TCHQ-TXNK on March 31, 2020; No. 8086/TCHQ-TXNK on December 25, 2020 guiding provincial and municipal customs departments implementing import tax exemption for goods for pandemic prevention. At the same time, the General Department of Vietnam Customs also requested provincial and municipal customs departments to list and publicly announce this information to businesses in the management area.

The statistics showed that, from February to December 2020, the General Department of Vietnam Customs has exempted VND33,421 billion. From January to May 2021 the Customs authority has exempted VND6,251 billion in import tax from medical masks and raw materials for producing medical masks and hand sanitizer as in Decision No. 155/QD-BTC of the Ministry of Finance

In addition, the General Department of Vietnam Customs has also reported to the Ministry and submitted to the Government to apply preferential tax policies to domestic and foreign enterprises providing humanitarian aid, non-refundable aid, gifts of goods serving for COVID-19 prevention and control such as Van Lang Co., Ltd. imported 2,000 ventilators, Hansae Korea Company donated 170,600 items of medical gear (antibacterial fabric) to the Government and the Ministry of Health.