Tariffs are a common concept in the field of international trade. When Vietnam joins the WTO and TPP, the concepts become more and more familiar. In this article we will learn what is non-tariff and what is a non-tariff zone?
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What is tariff? What types of tariffs are there?
What is tariff?
Tariff is the common name of import and export taxes in the field of international trade. Import tax is a tax on imported goods, while export tax is a tax on exported goods. Goods that evade tariffs are called smuggling.
Tariffs are of two types
+ Specific tax (quantity tax) is calculated as a fixed amount per unit of imported goods.
+ Ad-valorem tariff is calculated at a rate based on the value of imported goods.
Historically, the application of tariffs dates back to ancient times in many countries. Historical records show that ancient Rome, Greece, China, and Egypt applied tariffs on goods from other countries.
Currently, all countries in the world apply customs duties and the state assigns a state organization specializing in import-export tax, customs, to carry out the work of inspecting, calculating and collecting taxes. In Vietnam, it is the customs department. In principle, customs duties must be paid before customs clearance so that the exporter can deliver the goods to the carrier or the importer can release the imported goods into domestic circulation, unless there are other policies in place. Tax grace policy or tax payment guarantee
What is the impact of tariffs on a country?
Overall, tariffs have both positive and negative impacts for each interest group. Specifically:
+ Tariffs can protect domestic producers from foreign competition by increasing the selling price of imported goods.
+ Brings a large source of income for the state and government.
+ Tariffs also increase the prices of domestic imported goods. This affects the ability of people in that country to purchase imported goods. The price of imported cars is too expensive as in Vietnam today is the clearest manifestation.
+ The imposition of tariffs also reduces the overall efficiency of the entire economy because the tax will encourage domestic companies to produce products that in theory can be produced more efficiently. than abroad.
What is a tax-free zone?
Most countries in the world have regions that do not apply tariffs or do not impose taxes on certain items. Areas that are exempt from tariffs when importing are called: Tax-free zones. Or to be more precise, a non-tariff zone is an economic area located within the territory of Vietnam with defined geographical boundaries, established according to the regulations of the Prime Minister, and the relationship between buying, selling and exchanging goods between the two countries. This area and outside are export and import relations.
+ Conditions for establishment in a non-tariff zone
– Established by Decision of the Prime Minister
– Has defined boundaries
– Separated from outside territory, there is a hard fence surrounding the area, except for special economic and commercial zones of each country.
– Have gates and doors to ensure conditions for inspection, supervision and control by the Customs and other relevant authorities, and have a Customs organization to carry out inspection and supervision of goods. goods and means of entering and exiting the area.
– There are no residents living inside
– There are strict regulations to control goods entering and leaving
– Non-tariff zones can be located in industrial parks and satisfy the above requirements
– Buying and selling goods in the non-tariff zone will be considered export and import activities.
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Above is an article about customs clearance and tax-free zones. Hope it helps a lot for individuals and businesses today.
