1. Insulating paper used in production and manufacture of Transformers, this type of paper is produced with high insulation, requires breakdown voltage in the oil environment> 1.6mm min. 35kV / mm according to IEC 60641-3.1, which Vietnam has not yet produced. At present, when importing, the customs offices are using a code 4823.90.99 together with products made of ordinary paper pulp (such as wallpaper…) with the import tax rate of 20%. Therefore, it is proposed to reduce the import duty of this kind of paper to 0% - 5%.

2. Shrinkable tubing for insulation of 24 kV (24 kV heat shrinkable tube), which is used in the manufacture of electric cabinets to insulate the 24 kV conductors together (regardless of their made of insulating material) that Vietnam has not yet produced. At present, the border gates of customs offices shall apply the code 3917.32.90 with the import tax rate of 17%. We recommend applying the code 8504.90.00 with the import tax rate of 0%.

3. For Transformers and conventional electrical Equipment in accordance with Decision No. 3002 / QD-BCT dated July 19, 2017 of the Ministry of Industry and Trade which can be produced domestically, Transformers and high voltages for 110kV or more are currently produced domestically in the projects of the Electricity industry, but in the tariff with the code 8504.22.92, the import tax rate is only 5%. Therefore, the Vietnam Electricity Industry Association proposed an increase of 20% or higher. For Radiator used in manufacturing Transformers are currently subject to the import tax rate of 0% at codes 8504.90.31 and code 8504.90.41, but Vietnam has been produced. Therefore, it is proposed that the import tax rate increases over 10%.

Above are numbers of recommendations to help the Electrical Equipment manufacturing businesses of Vietnam to overcome difficulties in production, we hope the Ministry of Finance, the General Department of Customs, the Ministry of Industry and Trade and the relevant management agencies shall consider and adjust them to be suitable the current situation.