Implementation of the millennium development goals in Vietnam and solutions to achieve them in the coming period

- Basic tax rate: is stipulated in the Customs Law. This is the rate applied for a long time.

- Temporary rate: regulated by the Temporary Tax Law. This is a temporary tax rate applied instead of the basic tax rate for a certain period of time in cases where it is difficult to apply the basic tax rate.

- Preferential tax rate: is the tax rate applied to imported goods from developing countries. This tax rate is lower than the import tax rate from developed countries.

(2) Agreement tax rate : This is the tax rate agreed upon in agreements signed with foreign countries. It stipulates that only certain goods are taxed at a low rate. Currently, the tax rate stipulated in GATT is the only agreement tax in Japan. This tax rate is automatically applied to all GATT member countries. Agreement tax rates are also applied to countries that have agreed to grant each other the most-favored-nation (MFN) treatment principle in foreign trade relations with Japan.

In principle, the tax rates are applied in the following order: preferential tax rate, WTO tax rate, provisional tax rate, and general tax rate. However, the preferential tax rate is only applied when the conditions in Chapter 8 of the Law on the Application of Preferential Tax Rates are satisfied. The WTO tax rate is only applied when it is lower than both the provisional tax rate and the general tax rate. Thus, the general tax rate applies to countries that are not members of the WTO, the WTO tax rate applies to countries that are members of the WTO, and the preferential tax rate applies to developing countries. Of course, if the provisional tax rate is lower than the above tax rates, it will be applied.

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In addition to import duties, imported goods are subject to a 5% general consumption tax, which is applied to all items sold in Japan. This tax must be paid upon customs declaration of imported goods. Consumption tax

Taxes are calculated on the CIF value of the imported goods plus import duties. Packages are duty-free if they contain an amount of goods less than 10,000 yen.

According to the Japan Customs Association, the tariff rates applied to imported goods into Japan are among the lowest in the world. However, some items such as leather goods and agricultural products are still subject to high tariffs. In addition, tariffs on processed products are still relatively high. Currently, the tariff rates applied to agricultural products are gradually decreasing. Items such as automobiles, accessories, software, computers, and industrial machinery have a tax rate of 0%.

Special tariff regime

In addition to the above taxes and tax rates, Japan also issues 3 special taxes. These are:

- Emergency tax : is a tax levied on imported goods to promptly protect domestic production in case of rapid increase in imports due to cheap foreign goods.

- Countervailing duties : are special taxes levied on imported goods to compensate foreign producers and exporters who receive government subsidies. Countervailing duties can only be applied under certain limited conditions and when there is material injury to the domestic industry.

- Anti-dumping tax : is a special tax levied on imported goods, when a foreign company is considered to sell its goods in the importing country at a price lower than the cost price or lower than the normal price of those goods in the exporting country.

In general, Japan is a country with clear laws on the application of special tariff regimes to protect the interests of domestic industries whenever there is real damage due to foreign dumping or export subsidies.

Tax incentives system

The Generalized System of Preferences (GSP) is the result of intergovernmental negotiations held under the auspices of the United Nations Conference on Trade and Development (UNCTAD). The aim of the system is to increase exports, promote industrialization and accelerate growth in developing countries by reducing import tariffs on their exports.

Japan's Generalized System of Preferences began in 1971 based on the 1970 UNCTAD treaty and is in effect until March 31, 2011. GSP tariffs are usually 10 to 100% lower than MFN. Currently, Japan grants GSP to 140 developing and underdeveloped countries and 15 territories, including Vietnam.

For imported goods to benefit from the GSP, they must be recognized as originating from a GSP beneficiary country and transported to Japan according to the transportation standard. The transportation standard is to ensure that the goods remain intact and are not changed or processed during transportation from a GSP beneficiary country to Japan. The origin standard stipulates that the goods must be wholly originating in the beneficiary country. That is, the goods originate entirely in the beneficiary country or contain imported raw materials but have undergone necessary processing (the final product is in a category different from the categories of imported raw materials in the general tariff schedule and the maximum proportion of imported raw materials is 40-50% of the FOB price).

2.2.2. Non-tariff measures

a. Import mode

Import license

Imported goods requiring a license are goods that require approval from the Japanese Ministry of Economy, Trade and Industry when they are imported.

Currently in Japan most goods do not require a license, except for the following items:

Imported goods require a license under the Foreign Exchange Control Law, including: precious metals (gold bullion, gold alloys, uncirculated coins and items with high gold content); securities; intangible asset certificates, etc.

Imported goods requiring a license under the Import Control Act include:

- Goods belonging to 66 items listed in the import notice subject to import quota are livestock, plants, and products regulated in the Washington Convention.

- Goods produced or transported from countries and regions in the import notice require an import license (13 items including: whales, whale products and seafood from areas with special regulations).

- Goods requiring special payment methods.

- Goods requiring preliminary approval and must meet special government regulations such as research vaccines.

Imported goods requiring permits change from time to time. Details are published in the Tsunasaho Koho (official bulletin of METI) and Tsusho Koho (daily newspaper of JETRO).

Import quota regime

The quota system is designed to set a limit on the quantity and value of goods imported into the domestic market. Quotas are calculated based on domestic demand and other factors. In Japan, import quota notices are published at the beginning and middle of the fiscal year, stipulating the procedures for applying for a quota for a single item or a group of items. When importing an item under the quota, the importer will not be granted

license from the foreign exchange management bank or relevant authorities if the quota approval from METI has not been obtained.

The total quota value of a commodity or group of commodities is established and each quota will be allocated to importers within the limits of that total quota.

There are 3 types of goods subject to import quotas:

- Items that threaten social order and safety such as weapons, bullets, opium, etc.

- Goods in industries that need state protection such as agricultural and aquatic products. However, currently, Japan tends to eliminate protection for domestically produced goods and internationalize the economy.

- Species of flora and fauna protected under the Washington Convention – Convention on International Trade in Endangered Species of Wild Fauna and Flora.

Import ban regime

According to Article 21 of the Law on Taxes and Customs, prohibited import items are items that negatively affect morality and social order and safety:

- Opium, other addictive substances, opium smoking tools, stimulants, psychoactive substances (except those specified by the Ministry of Health, Labor and Welfare).

- Firearms (pistols, rifles, machine guns, etc.), ammunition for the above guns and gun parts.

- Counterfeit coins, banknotes, notes or securities.

- Books, drawings, works of art or other goods that are harmful to morals or social security (obscene, pornographic materials).

- Goods that infringe copyrights on inventions, usage models, designs, trade names, copyrights, etc.

Import notification mode

The import notification system applies to all items except those specified in Article 14 of the Import Control Law – Free Imported Goods. The import notification shall be submitted to the Ministry of Economy, Trade and Industry of Japan through the foreign exchange management bank in the form of a payment confirmation. However, this work is performed by the importer.

b. Quality standards of imported goods

All domestic and imported products in Japan are subject to strict controls and cannot be sold without certification of compliance. Some standards are mandatory, some are voluntary. In many cases, certification is decisive for the success or failure of entering the Japanese market. Currently, there are two trends in standards in Japan. One is to gradually relax these standards and the other is to unify them with international standards. However, practice in Japan shows that the quality and safety standards of goods in Japan are still higher and stricter than the usual requirements and international standards.

In Japan today, the quality marking system includes many types, regulating many different types of goods. Of which, two commonly used quality certification marks are: "Japanese Industrial Standards" and "Japanese Agricultural Standards".

Japanese Industrial Standards (JIS)

The Japanese Industrial Standards (JIS) are one of the widely used standards in Japan. They are based on the “Industrial Standardization Law” enacted in June 1949 and are commonly known as the “Japanese Industrial Standards Mark” or JIS. The JIS system has contributed to the expansion of standardization across the entire Japanese industry. According to Article 26 of the

According to the Industrial Standardization Law, all government agencies must give priority to products marked with the JIS quality mark when purchasing goods for their activities.

The JIS standard system applies to all industrial and mineral products, except for products subject to specialized standards such as pharmaceuticals, chemical fertilizers, silk fibers, foodstuffs, and other agricultural products specified in the Law on Standardization and Labeling of Agricultural and Forestry Products (JAS). Therefore, when inspecting these products, simply checking the JIS standard quality mark is enough to confirm their quality.

The license to affix the JIS certification mark on goods is issued by the Minister of Economy, Trade and Industry to the manufacturer. Anyone who intentionally affixes the JIS quality mark on goods other than those from a licensed manufacturer will be subject to up to one year in prison or a fine of 5 million yen.

Japanese Agricultural Standards (JAS)

The Japan Agricultural Standards (JAS) Act was enacted in May 1970, which sets quality standards, sets out rules for quality labeling, and affixes the JAS quality mark. Today, the JAS system has become the basis for Japanese consumers to choose processed foods.

The list of products regulated by the JAS law includes: beverages, processed products, edible oils, fats, processed agricultural, forestry and fishery products. Currently, not all products are listed in the list of products regulated by the JAS law and JAS standards cover both domestically produced products and imported products. Most products such as canned foods, fruit juices, processed products manufactured in Japan carry the JAS quality mark.

The use of the JAS quality certification mark on product labels is voluntary. Manufacturers and retailers are not required to produce or sell products with JAS quality standards.

Certain products are required to comply with JAS quality labeling regulations when they meet the following conditions:

- The product must be an agricultural or forestry product for which there is or will be a JAS standard in the near future.

- The product must be of uncertain quality.

- It is a product whose quality consumers need to know before deciding to buy.

Other quality certification marks

In addition to JIS and JAS standards, there are many other types of quality certification marks used in Japan.