Finance ministry circular details new pricing model for goods, services

Wednesday, Mar 12, 2014 09:46

Used electronics added to list of banned imports.— Photo tienphong
On 17 February, 2014, the Ministry of Finance issued Circular No 25/2014/TT-BTC outlining the common methods for determining the prices of goods and services ("Circular 25").

Under Circular 25, the two methods such as comparison and cost methods have been defined for determining the prices of goods and services. Based on the characteristics and the use value of each type of goods and service; the material conditions on manufacture, trading, market, circulation of material goods, and service, organisations and individuals have the right to choose a suitable method for determining the prices of goods and services.

The comparison method is used for determining the price of goods and services by analysing and comparing its price and economic and technical characteristics with significant impacts on its price with those of similar assets, goods, or services, which are traded in the domestic market and, concurrently, referring to regional and world market prices (if any).

The cost method is based on reasonable and valid actual manufacturing and operating expenses and estimated profits (if any), which are suitable with the market price and the state's policies affecting the price of goods and services to define their prices.

In general, organisations and individuals will be empowered to choose the apt method for determining prices as similarly prescribed in previous regulations. However, it is noteworthy that Circular 25 further points out that fees which are not part of the calculation and considered as reasonable fees for price determination, is a clause that was not part of the previous regulations.

Another significant change is the regulation on predicting the reasonable profit rate (if any) of the organisations and individuals for avoiding overpriced determination as compared to the market price of the products or services.

This Circular takes effect on 15 April, 2014, and replaces the Circular No. 154/2010/TT-BTC promulgating the regulation on the pricing of assets, goods, and services.

Used electronics added to list of banned imports

On January 27, 2014, the Industry and Trade Ministry issued a circular detailing several articles of a decree on implementing the Commercial Law.

The Circular No 04/2014/TT-BCT describes various articles of Decree No 187/2013/ND-CP regarding international goods sale and purchase, processing, and transit agency activities with foreign countries ("Circular 04").

Under Circular 04, items added to the list of consumer goods that are prohibited for import into Viet Nam are second-hand mobile phone, PDAs, and laptops. Furthermore, the Circular also lists a number of imported items subject to tariff quota management including (i) salt, (ii) unprocessed tobacco, (ii) bird's eggs, and (iv) refined and raw sugar.

This Circular came into effect on 20 February, 2014, and replaces Circular No 04/2006/TT-BTM, dated April 06, 2006, of the Ministry of Trade providing guidelines for the implementation of Decree No 12/2006/ND-CP of the Government dated January 23, 2006, which provides detailed regulations for the implementation of the Commercial Law with respect to international purchases and sales of goods, agency for sale and purchase, processing and transit of goods involving foreign parties.— bizoonsult law LLC

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