Exported Cement Free from Resources Ratio Statement

Exported cement is not subject to determination of the total value of natural resources and minerals plus energy costs that make up 51% of product prices. As a result, it is not in the No. 221 Commodity Group in the Export Tariff.

In Official Letter 1426/BTC-CST dated January 29, 2019, the Ministry of Finance answered Chinfon Cement Company, Ha Long Cement Joint Stock Company and Thang Long Cement Joint Stock Company on export duty on exported cement.

The Ministry of Finance said, from February 1, 2018, according to Clause 2, Article 1 of Decree 125/2017/ND-CP and Decree 146/2017/ND-CP, cement is produced from key material of clinker which is made from natural resources and minerals processed into other products (not natural resources and minerals). Thus, cement is the item that must be determined the share of total value of natural resources and minerals plus energy costs that account for 51% or more of the product price as stipulated in Clause 1, Article 1 of Decree 146/2017/ND-CP and not included in the No. 211 Commodity Group in the Export Tariff issued together with Decree 125/2017/ND-CP.

With the above guidance, the General Department of Vietnam Customs required local customs authorities to instruct enterprises to declare and apply cement tax rates in line with Decree 125/2017/ND-CP, Decree 146/2017/ND-CP and Official Letter 1426/BTC-CST.

Hien Le