Recently, representatives of the animal feed industry group and the Dong Nai Livestock Association sent a document to the Government Office , the Ministry of Finance, and the Ministry of Agriculture and Rural Development regarding difficulties related to the commodity code for soybean meal used as animal feed.

The document states that, according to Decree 144/2024/ND-CP dated November 1, 2024, the preferential import tax rate for soybean meal with commodity code 23040090 has been reduced from 2% to 1%.

However, since Decree 144 officially came into effect (December 16, 2024), businesses have been unable to access the support policy on reducing preferential import tax rates for soybean meal used as animal feed.

higher price
The price of soybean meal for animal feed is rising sharply. Photo: Dabaco

Specifically, from the beginning of December 2024, the customs branches of Ho Chi Minh City and Ba Ria - Vung Tau applied the commodity code 23040029 to this item, with a preferential import tax rate of 2%.

Meanwhile, prior to December 2024, including the period after Circular 31/2022/TT-BTC came into effect, businesses consistently declared imported soybean meal for animal feed under commodity code 23040090 (with a preferential import tax rate of 1%) on the VNACC/VCIS system of the General Department of Customs and the specialized inspection registration system of the Plant Protection Department.

This not only increases the time it takes to clear goods through customs but also incurs additional costs for businesses.

According to businesses, in just the past two weeks, soybean meal prices on the world and domestic markets have unexpectedly surged by more than 12% due to supply and demand fluctuations. This significantly impacts production costs, while selling prices cannot increase proportionally due to weak domestic market demand, leading to the risk of stagnant and uncertain production in the animal feed industry.

Currently, there is a disparity in import tax rates for this product between exporting countries with free trade agreements with Vietnam (India, ASEAN, etc.) - enjoying a 0% tax rate - and other countries. Therefore, businesses in Vietnam are limited in terms of the scope of goods origin and have difficulty accessing countries with more stable production and quality of soybean meal (USA, Argentina, Brazil, etc.).

Furthermore, if a preferential import tariff rate of 1% were applied to soybean meal used as animal feed, it could contribute to increasing import volumes and harmonizing the trade balance with the United States.

To address these issues and obstacles, businesses and associations propose adjusting and reducing the preferential import tax rate for soybean meal used as animal feed, with commodity code 23040029, from 2% to 1%, equivalent to the tax rate of commodity code 23040090.

At the same time, it is proposed that businesses be allowed to retroactively refund import taxes on shipments of soybean meal used as animal feed imported from December 16, 2024, according to Decree 144.

Following huge profits, major livestock companies are once again 'racing' to raise pork prices before Tet . Reduced production costs, coupled with a sharp increase and sustained high price of live pigs, have resulted in substantial profits for livestock businesses. As Tet approaches, these major players are once again competing to increase live pork prices.