Slide bài giảng chính sách thương mại quốc tế (bảng tiếng anh)

This course is designed base on a practical approach to international trade and from that point aim to equip students with understanding and analytical capability about contemporary issues of international trade policy and the WTO related to: market access, agricultural trade, trade in services... The course also provides students with tools used in international trade. Please be noted that, depend on real situation of the class andor demand of the learners, the instructors may add or remove lectures accordingly.

Faculty of Economics and International Business

Foreign Trade University

Syllabus for International Trade Policy

Instructor: Vu Huyen Phuong (PhD)

Department of Academic and Research Affairs

A908, Foreign Trade University

COURSE OBJECTIVES

This course is designed base on a practical approach to international trade and from that point aim to equip students with understanding and analytical capability about contemporary issues of international trade policy and the WTO related to: market access, agricultural trade, trade

in services The course also provides students with tools used in international trade

Please be noted that, depend on real situation of the class and/or demand of the learners, the instructors may add or remove lectures accordingly

PREREQUISITE

This course doesn’t require a textbook, lecture slide and assigned readings will be provided by instructor However, students are suggested and encouraged to read following additional materials/books beside assigned readings:

-Practical guide to Trade Policy analysis, UNCTAD & WTO

-Paul Krugman & Maurice Obstfeld, International Economics: Thoery

and Policy, Addison Wesley, 8th edition (Part 1 and Part 2)

-Guide to International Business System, WTO

EXAMINATIONS AND GRADING

Lec.# Content Assigned

6 Non – tariff Measures (1)

7 Non – tariff Measures (2)

8 Data in International Trade (Using

13 Introduction to the GATS (1)

14 Introduction to the GATS (2)

15 Review

The World Trade Organization (WTO)

🠶 What is WTO ?

The World Trade Organization (WTO) is the only international organization dealing with the global rules of trade between nations Its main function is to ensure that trade flows as smoothly, predictably and freely as possible.

The way to do that: 🡪 lower trade barriers : tariffs and non-tariffs

The World Trade Organization (WTO)

🠶 Agreements

- Agreements were negotiated and signed by a large majority of the world’s

trading nations, and ratified in their parliaments

- These agreements are the legal ground-rules for international commerce

- Essentially, they are contracts, guaranteeing member countries important trade rights

- They also bind governments to keep their trade policies within agreed limits to everybody’s benefit.

The World Trade Organization (WTO)

🠶 The multilateral trading system—past, present and future

The World Trade Organization came into being in 1995 One of the youngest of the international organizations, the WTO is the successor to the General Agreement on Tariffs and Trade (GATT)

The World Trade Organization (WTO)

🠶 The multilateral trading system—past, present and future

- The system was developed through a series of trade negotiations, or rounds, held under GATT The first rounds dealt mainly with tariff reductions but later negotiations included other areas such as anti-dumping and non-tariff measures The last round — the 1986-94 Uruguay Round — led to the WTO’s creation

- In February 1997 agreement was reached on

telecommunications services, with 69 governments agreeing to wide-ranging liberalization measures that went beyond those agreed in the Uruguay Round

The World Trade Organization (WTO)

🠶 The multilateral trading system—past, present and future

- The system was developed through a series of trade negotiations, or rounds, held under GATT The first rounds dealt mainly with tariff reductions but later negotiations included other areas such as anti-dumping and non-tariff measures The last round — the 1986-94 Uruguay Round — led to the WTO’s creation.

- In February 1997 agreement was reached on telecommunications services, with

69 governments agreeing to wide-ranging liberalization measures that went beyond those agreed in the Uruguay Round In the same year 40 governments successfully concluded negotiations for tariff-free trade in information technology products, and 70 members concluded a financial services deal covering more than

The World Trade Organization (WTO)

🠶 The activities of the organization to catch its objectives

•Acting as a forum for trade negotiations

•Settling trade disputes

•Reviewing national trade policies

•Assisting developing countries in trade policy issues, through technical assistance and training programmes

•Cooperating with other international organizations

The World Trade Organization (WTO)

🠶 Structure

Conference:

+ Meets at least once every two years

+ Decisions are made by the entire membership This is typically by consensus

+ A majority vote is also possible but it has never been used in the WTO, and was extremely rare under the WTO’s predecessor,

The World Trade Organization (WTO)

🠶 Structure

🠶 General Council normally ambassadors and heads of delegation in

Geneva, but sometimes officials sent from members’ capitals

+ Meets several times a year in the Geneva headquarters

+ The General Council also meets as the Trade Policy Review Body and the Dispute Settlement Body.

🠶 The Council: the Goods Council, Services Council and Intellectual

Property (TRIPS) Council report to the General Council

🠶 The Committees, working groups and working parties deal with the

individual agreements and other areas such as the environment, development, membership applications and regional trade agreements.

The World Trade Organization (WTO)

🠶 Structure

🠶 Secretariat:

+ provides some forms of legal assistance in the dispute settlement process

and advises governments wishing to become members of the WTO

+ to supply technical support for the various councils and committees and the ministerial conferences, to provide technical assistance for developing countries, to analyze world trade, and to explain WTO affairs to the public and media.

+ provides some forms of legal assistance in the dispute settlement process

The World Trade Organization (WTO)

🠶 Goods

+ It all began with trade in goods From 1947 to 1994, GATT was

the forum for negotiating lower customs duty rates and other trade barriers; the text of the General Agreement spelt out important rules, particularly non-discrimination

+ Since 1995, the updated GATT has become the WTO’s umbrella agreement for trade in goods It has annexes dealing with specific sectors such as agriculture and textiles, and with specific issues such as state trading, product standards, subsidies and actions taken against dumping

The World Trade Organization (WTO)

🠶 Services

+ Banks, insurance firms, telecommunications companies, tour

operators, hotel chains and transport companies looking to do business abroad can now enjoy the same principles of freer and fairer trade that originally only applied to trade in goods

+ WTO members have also made individual commitments under GATS stating which of their services sectors they are willing to

The World Trade Organization (WTO)

🠶 Intellectual property

🠶 TRIPS (Agreement on Trade related Aspects of Intellectual Proterty)

+ The WTO’s intellectual property agreement amounts to rules for

trade and investment in ideas and creativity. 

+ The rules state how copyrights, patents, trademarks, geographical names used to identify products, industrial designs, integrated circuit layout-designs and undisclosed information such as trade secrets — “intellectual property” — should be protected when trade is involved

The World Trade Organization (WTO)

🠶 Dispute settlement 

The WTO’s procedure for resolving trade quarrels under the Dispute Settlement Understanding is vital for enforcing the rules and therefore for ensuring that trade flows smoothly

Countries bring disputes to the WTO if they think their rights under the agreements are being infringed Judgements by specially-appointed independent experts are based on interpretations of the agreements and individual countries’

The World Trade Organization (WTO)

🠶 Policy review 

The Trade Policy Review Mechanism’s purpose is to improve transparency, to create a greater understanding of the policies that countries are adopting, and to assess their impact Many members also see the reviews as constructive feedback on their policies

All WTO members must undergo periodic scrutiny, each review containing reports by the country concerned and the WTO Secretariat

The World Trade Organization (WTO)

🠶 Vietnam and WTO

Vietnam's WTO Commitments on Goods:

- Commitments on Agricultural Products

- Commitments on Non-Agricultural Products

WORLD TRADE ORGANIZATION

Import- Export Duty

Tax objects:

Goods exported or imported through Vietnamese border gates or border Goods brought from the domestic market into non-tariff zones and vice versa.

Non - Tax objects:

Goods transited and transported by mode of bordergate transshipment through Vietnam’s border gates or border under the provisions of customs law.

Humanitarian aid goods, non-refundable aid goods;

Goods exported from non-tariff zones to abroad; goods imported from abroad into non-tariff zones and only used therein; goods brought from one non-tariff zone to another.

Exported petroleum belonging to the State’s natural resources.

Tax incentives

Tax payers:

Owners of imports or exports.

Organizations undertaking consignment of goods export or import Individuals having imports or exports upon entry or exit

Tax bases

The actually imported or exported quantity of goods;

Dutiable value;

Ad-valorem duty

Specific duty

Dutiable value

Exporter’s frontier

Importer’s frontier

Exporter’s

place

importer’s place

Dutiable value of exports shall be the selling price at the border gate (FOB price, DAF price) excluding insurance (I) and freight (F).

Dutiable value of imports shall be the actual price payable calculated

to the first import border gate.

Dutiable value

The Decision on Customs Valuation would give customs administrations the right to request further information of importers where they have reason to doubt the accuracy of the declared value of imported goods If the administration maintains a reasonable doubt, despite any additional information, it may be deemed that the customs value of the imported goods cannot be determined on the basis of the declared value, and customs would need to establish the value taking into account the provisions of the Agreement

6 methods of Determining Dutiable Value of Imports

Method of determining dutiable value on the basis of the transaction value of imports

Method of determining dutiable value on the basis of transaction value of identical imports

Method of determining dutiable value on the basis of transaction value of similar imports

Method of determining dutiable value on the basis of deductible value

Method of determining dutiable value on the basis of computed value

Deductive method of determining dutiable value

Tax rate

Goods classification (Harmornised System)

Tax rate

Export tax rates:

Export tax rates are specified for every goods item in the Export Tax

Import tax rates: based on origin of goods

Preferential tax rates: according to the most-favored-nation treatment

Special preferential tax rates: according to Vietnam international commitment, i.e FTAs: AFTA, VJEPA, ACFTA, AJFTA, AKFTA, AIFTA,

Ordinary tax rates shall be applied at the rate of 150% of the preferential tax rate of each goods item specified in the Preferential

Import Tax Tariffs.

Duty payment

Due date of tax payment

Due date of tax payment is determined from the date of custom declaration.

Immediate payment:

For imported consumer goods;

Not having guarantee of tax payment as well as having well observed tax laws:

Tax incentives

Tax exemption

Goods temporarily imported for re-export or temporarily exported for reimport

Moveable property brought by Vietnamese or foreign organizations

or individuals into Vietnam or abroad within prescribed limits

Goods imported or exported by foreign organizations or individuals that enjoy diplomatic privileges and immunities in Vietnam

Goods imported for export processing for foreign parties under signed processing contracts

Imported or exported goods within tax-free luggage quotas of people

on entry or exit

Goods imported for creation of fixed assets of projects eligible for investment encouragement or ODA-funded investment projects

Tax incentives

Tax refund

Cases entitled to tax refund consideration

For imported goods for which import tax has been paid and which were still left in border-gate warehouses or storing yards under customs

supervisions before being re-exported;

For imported goods for which import tax has been paid but which are not imported yet or imported with less quantity.

For imported goods which are delivered or sold to foreign countries

Tax incentives

Cases entitled to tax refund consideration

Imported goods for which import tax has been paid and which are used for the production of goods for export shall be entitled to tax refund in proportion to the ratio of actually exported products, which are specifically determined as follows:

Enterprises importing raw materials and supplies for the production

of goods for export

For enterprises which import raw materials and supplies for production of goods for domestic consumption but later find export outlets (the permitted maximum duration is 2 years after the date of registration of customs declarations for such imported raw materials and supplies)

Tax incentives

Tax refund

For raw materials and supplies (excluding finished products)

imported for the performance of processing contracts

For enterprises importing raw materials and supplies for the production

of products but later using these products for the processing of goods for export

For enterprises importing raw materials and supplies for the production

of products for sale to other enterprises for direct production or processing of goods for export

Enterprises importing raw materials and supplies for the production of products for sale to other enterprises for direct export prises import raw materials and supplies for the production of goods for sale to foreign traders but later deliver goods to other enterprises in Vietnam under designation by such foreign traders for use as raw materials for continued production or processing

For mistakes made in tax declaration, calculation or payment

1 Export 15,000 products at price of 45,000 VND/product

2 Authorise to export 10,000 products at price of 47,000 VND/product

3 Import 20,000 products at CIF price of 1USD/product,

4 Import 15,000kg raw material, FOB price at 1.4 USD/kg, international tranportation cost of 0.1USD/kg Out of 15,000kg raw material, there are 5,000kg would be used for making products according to signed contract.

5 Import 10 second-hand automobiles at CIF price of 5,000USD/unit During transportation, there was 1 automobile was broken and lost 30% value (according to inspection of customs).

Knowing that

Export duty rate of 2% for products, Import duty rate of 10% for products and 1% for raw material; import duty of 7,000/unit for second-hand automobile.

SEATRANET ADVANCED COURSE

NON AGRICULTURAL MARKET ACCESS

(NAMA) Module 5:

Non-Tariff Measures

Outline of Module 5

1 Non Tariff Measures

2 The Technical Barriers to Trade Agreement

3 The SPS Agreement

4 The Customs Valuation Agreement

5 The Pre-shipment Inspection Agreement

6 The Agreement on Import Licensing

1.Non Tariff Measures