Exported rubber wood is officially subject to 0% tax

Exported rubber wood is officially subject to 0% tax

On August 15, the General Department of Customs said that this unit has just issued Notice 5344 / TB-TCHQ signed by Deputy Director of Customs, Luu Manh Tuong, on classification results for exported and imported goods. password.

According to the General Department of Customs, this notice replaces the notice of classification results for exported and imported goods No. 4250 / TB-TCHQ dated June 24, 2020.

Accordingly, the item of heading HS 44.18 is “furniture used in construction, including wooden boards with folding cores, assembled floor boards and shingles (shingles and shakes)” … in the list of exported goods, import to Vietnam.

Thus, with the above classification, the board will be subject to the export tax rate of 0%, instead of the 25% rate as stated in Notice No. 4250 / TB-TCHQ above.

Before that, the Timber and Forest Product Association; Binh Dinh Timber and Forest Product Association; Cat Tuong Wood Processing Joint Stock Company (Cat Tuong Carpentry Company)  has issued an urgent petition to the Ministry of Finance and the Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade about the jams in the seaports. number 4250.

According to Notice No. 4250, plywood with pressure HS 4407 “Wood vertically cut, sliced ​​or peeled, whether or not planed, sanded or end-jointed, with a thickness of more than 6 mm” belongs to the subheading. HS 440729.97.90.

This causes the joinery board to be subject to an export tax of 25% to limit or even prevent exports because it does not create much added value and has to spend raw materials for domestic processing industry.

To ensure objectivity and fairness between the interests of the state and enterprises, and at the same time create favorable conditions to remove difficulties for businesses in the epidemic context, on August 5, the General Department of Customs presided over, coordinated with the Tax Policy Department, the Legal Department (the Ministry of Finance) to establish a mission, coordinate with relevant agencies, organize a dialogue with Cat Tuong Carpentry Company , Vietnam Timber and Forest Products Association .

At the dialogue, the General Department of Customs asked  Cat Tuong Carpentry Company  to clearly define the production, processing and product specifications to determine whether or not the item was over-worked, sawing or sawing. sliced ​​or peeled, planed, sanded or end of heading 44.07.

Based on the production process, the goods have not enough establishments to exclude in heading 44.07 and not enough establishments to classify in heading 44.18 as requested by the enterprise.

After the dialogue, the General Department of Customs continued to allow Cat Tuong carpentry company to export plywood at the rate of 0%. However, the enterprise must commit to comply with the final decision of the competent authority.