Home / Knowledge / News / Apparel/Garments / Vietnam garment firms may lose grace period on import duty

Vietnam garment firms may lose grace period on import duty

Aug '12
Garment exporters in Vietnam are facing a threat of elimination of grace period for payment of duty for import of raw materials and accessories.
The existing Import and Export Tax Law allows a 275-day grace period for payment of duty on import of raw inputs and accessories for production of goods meant for exports.
A draft for revision in Import and Export Tax Law and Tax Management Law contains proposal for ending such deferred payment and necessitates the exporters to pay duty before customs clearance, or furnish a guarantee from a credit institution.
The proposal, if accepted, is believed to bring the legally operating garment enterprise under pressure.
In this connection, the Vietnam Textile and Apparel Association (VITAS) forwarded a letter to the Ministry of Finance (MoF) requesting it to review the proposal.
However, the MoF was firm that if the garment manufacturing companies are not willing to pay taxes immediately, they would have to furnish guarantee from commercial banks.
But industry analysts say that it would not be possible for all the enterprises to fulfil the condition of submitting bank guarantee.
The move, to some extent, is based on the fact that a lot many exporters are presently taking undue advantage of the grace period facility to evade taxes, resulting in problems for tax offices and State budget losses. 
On the other hand, garment exporters question that if it is not possible for the Government to collect taxes from illegally operating or bankrupt firms, how far would it be fair to penalize the law-abiding firms by collecting the taxes from them without giving any grace period.

Fibre2fashion News Desk - India

Must ReadView All

Pic: Shutterstock

Textiles | On 12th May 2021

Economic recovery under threat amid surging COVID cases: UN

While the global growth outlook has improved, led by robust rebound...

Pic: 2p2play / Shutterstock.com

Retail | On 12th May 2021

Retailers need to consider changes as US emerges from pandemic: NPD

Millions of new remote and hybrid-remote workers, kids returning to...

Pic: Shutterstock

Textiles | On 12th May 2021

Uzbekistan exported textile products worth $637.7 million in Q1 2021

Uzbekistan exported textile products worth $637.7 million to 54...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Value of 'Made in India' should get more importance

Textile Industry, Head honchos

Textile Industry
Head honchos

Consumer sentiment will be conservative after lockdown

Textile Industry, Head honchos

Textile Industry
Head honchos

Blockchains will be in heavy use by early adopters by 2025

Dhruv Toshniwal & Udit Toshniwal,

Dhruv Toshniwal & Udit Toshniwal

Launched a year ago, Fashions Pvt Limited conceptualises and sees D2C...

Tony Naschberger,

Tony Naschberger

With production sites in Klagenfurt and Kufstein, Zimmer Austria is a...

Ismail Ajani,

Ismail Ajani

Hollywood Footwear’s story began in 1946 when Jummabhai Ajani started the...

Sameer Sonkusale & Rachel Owyeung, Tufts University

Sameer Sonkusale & Rachel Owyeung
Tufts University

A team at the Tufts University in Massachusetts was recently in news for...

Jacques Prigneaux, EDANA

Jacques Prigneaux

EDANA has been the leading global association and voice of the nonwovens...

Andreas Lukas, Andritz Nonwoven

Andreas Lukas
Andritz Nonwoven

With forces in engineering and process development, Andritz Nonwoven...

Anjali Bhaskar, Samatvam

Anjali Bhaskar

Anjali Bhaskar has an experience of 12 years in the fashion industry. She...

Sandeep Gonsalves & Sarah Gonsalves, Sarah & Sandeep

Sandeep Gonsalves & Sarah Gonsalves
Sarah & Sandeep

Established in 2012, Sarah & Sandeep is a luxury menswear label...

Archana Jaju, Label Archana Jaju

Archana Jaju
Label Archana Jaju

<b>Archana Jaju</b>’s Hyderabad-based eponymous label works with artisans...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

May 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search