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VSSA seeks high tariffs for non-quota sugar imports
28/06/2016 12:00
HCMC - The Vietnam Sugar and Sugarcane Association (VSSA) has proposed the Ministry of Finance impose respective duties of 80% and 85% on raw and refined sugar imports beyond the annual quota to protect the local sugar sector.
The association made the proposal in Document No. 41/2016/CV-HHMD sent to the Ministry of Finance on Tuesday after the Ministry of Industry and Trade suggested allowing import of 200,000 tons of sugar beyond the quota to meet domestic demand.
The association said a tariff of 5% applicable to sugar imports since 2010 has made life tough for the local sugar sector. Therefore, VSSA threw its weight behind a plan to protect domestic sugar producers by slapping import duties of 80% for raw sugar and 85% for refined sugar.
After having weighed supply and demand for sugar on the domestic market, the trade ministry sought the Government’s nod to import 200,000 tons of sugar more than the volume the country committed to the World Trade Organization (WTO). This year’s quota is 85,000 tons of sugar but Vietnam can import about 285,000 tons of sugar.
In June last year, the trade ministry unveiled the content of a border trade agreement between Laos and Vietnam. To prop up trade between the two countries, the ministry said import and value-added taxes of 0% should apply to certain types of commodities manufactured in Laos by Vietnamese investors when they are imported into Vietnam.
Since Hoang Anh Gia Lai Group (HAGL) has invested in rubber and sugar projects in Laos, sugar produced in Laos by the Vietnamese group can enjoy an import tariff exemption when it is sold to Vietnam.
However, VSSA complained there are more incentives for sugar produced in Laos than that made in Vietnam, throwing local sugar producers into a difficult position. Besides, competition pressure would rise if there are no measures to control the origin of sugar imported from the neighboring country.
VSSA said the 2015-2016 sugarcane crop has virtually ended and total sugar output for the crop is estimated at nearly 1.2 million tons.
The association made the proposal in Document No. 41/2016/CV-HHMD sent to the Ministry of Finance on Tuesday after the Ministry of Industry and Trade suggested allowing import of 200,000 tons of sugar beyond the quota to meet domestic demand.
The association said a tariff of 5% applicable to sugar imports since 2010 has made life tough for the local sugar sector. Therefore, VSSA threw its weight behind a plan to protect domestic sugar producers by slapping import duties of 80% for raw sugar and 85% for refined sugar.
After having weighed supply and demand for sugar on the domestic market, the trade ministry sought the Government’s nod to import 200,000 tons of sugar more than the volume the country committed to the World Trade Organization (WTO). This year’s quota is 85,000 tons of sugar but Vietnam can import about 285,000 tons of sugar.
In June last year, the trade ministry unveiled the content of a border trade agreement between Laos and Vietnam. To prop up trade between the two countries, the ministry said import and value-added taxes of 0% should apply to certain types of commodities manufactured in Laos by Vietnamese investors when they are imported into Vietnam.
Since Hoang Anh Gia Lai Group (HAGL) has invested in rubber and sugar projects in Laos, sugar produced in Laos by the Vietnamese group can enjoy an import tariff exemption when it is sold to Vietnam.
However, VSSA complained there are more incentives for sugar produced in Laos than that made in Vietnam, throwing local sugar producers into a difficult position. Besides, competition pressure would rise if there are no measures to control the origin of sugar imported from the neighboring country.
VSSA said the 2015-2016 sugarcane crop has virtually ended and total sugar output for the crop is estimated at nearly 1.2 million tons.
Source: SaigonTimes
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