Vietnam tightens checks on oil product imports from ASEAN
by ChemOrbis Editorial Team - content@chemorbis.com
According to media reports, Vietnam’s customs department is reviewing imports of oil products from other members of the Association of Southeast Asian Nations (ASEAN) to verify that they qualify for the tax reductions provided for in the ASEAN Free Trade Agreement, to which Vietnam is a party. As part of the free trade agreement, ASEAN members are eligible for a tax reduction on imports of oil products such as diesel, jet fuel and kerosene as long as at least 40% of the material is produced in the refineries in member countries, including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
Sources report that the customs department has tightened its checks to see if products imported from other ASEAN countries over the past year were produced in the region and declared properly. The number of imports from ASEAN has risen significantly since the agreement.
According to a circular by Vietnam’s Finance Ministry, if there are doubts about the validity of the certificates of origin of some cargoes, the importers in question will have to report to the customs department to prove that they qualify for import tax reductions. Sources do not expect to see a decrease in import volumes, though the checks might slow down trading activities.
Sources report that the customs department has tightened its checks to see if products imported from other ASEAN countries over the past year were produced in the region and declared properly. The number of imports from ASEAN has risen significantly since the agreement.
According to a circular by Vietnam’s Finance Ministry, if there are doubts about the validity of the certificates of origin of some cargoes, the importers in question will have to report to the customs department to prove that they qualify for import tax reductions. Sources do not expect to see a decrease in import volumes, though the checks might slow down trading activities.
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