Are goods directly used to overcome the consequences of natural disasters in Vietnam subject to export and import duty exemption?

What is the definition of natural disaster? What are the types of natural disasters in Vietnam?

According to Article 3 of the Law on Natural Disaster Management 2013 (amended by Point a Clause 1 Article 1 of the Law on on amendments to the Law on Natural Disaster Management and Law on Dikes):

 Interpretation of terms

In this Law, the terms below are construed as follows:

1. “natural disaster” means an unusual natural phenomenon which may cause loss of life and property or damage to the environment, living conditions and socio- economic activities. Natural disasters include tropical storms, tropical depressions, strong breezes at seas, tornadoes, lightning, heavy precipitation, floods, flashfloods, inundations; landslides and land subsidence caused by floods or runoff or droughts; water rise, saltwater intrusion, extreme heat, droughts, wildfires, cold under 13 degree Celsius, hails, frost, fog, earthquakes, tsunamis and other types of natural disasters.

2. Natural disaster risk means damage, which natural disasters may cause to human life, property, the environment, living conditions and socio-economic activities.

3. Natural disaster management means a systematic process involving the prevention of, response to, and remediation of consequences of, natural disasters.

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Thus, “natural disaster” means an unusual natural phenomenon which may cause loss of life and property or damage to the environment, living conditions and socio- economic activities.

Natural disasters include tropical storms, tropical depressions, strong breezes at seas, tornadoes, lightning, heavy precipitation, floods, flashfloods, inundations; landslides and land subsidence caused by floods or runoff or droughts; water rise, saltwater intrusion, extreme heat, droughts, wildfires, cold under 13 degree Celsius, hails, frost, fog, earthquakes, tsunamis and other types of natural disasters.

Are goods directly used to overcome the consequences of natural disasters in Vietnam subject to export and import duty exemption? (Image from the Internet)

Are goods directly used to overcome the consequences of natural disasters in Vietnam subject to export and import duty exemption?

According to Clause 23 Article 16 of the Law on Export and Import Duties 2016:

Tax Exemption

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23. Exports and imports serving assurance of social security, recovery from disasters, epidemics, and other special situations.

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According to Clause 1 Section 9 of Official Dispatch 12166/BTC-TCHQ in 2016:

IX. Tax exemption for exported or imported goods used for social security, mitigation of the impacts of natural disasters, calamities, epidemics and in other special cases

1. Exported or imported goods used for social security, mitigation of the impacts of natural disasters, calamities, epidemics and in other special cases shall be exempted from customs duty in accordance with Clause 23 Article 16 of the Law on Export and Import Duty, comprising:

a) Goods which have not yet been locally produced and need to be imported for direct uses in projects as part of the Government’s social security program will be exempted from import duty.

b) Goods which have not yet been locally produced and need to be imported to overcome the consequences of natural disasters, calamities or epidemics will be exempted from import duty.

c) Exported or imported goods used in other special cases shall be subject to the Prime Minister’s decision on whether they are exempted from import or export duty, as the case may be.

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Thus, goods that have not yet been locally produced and need to be imported to overcome the consequences of natural disasters, calamities or epidemics will be exempted from import duty.

What does the application for exemption of duties on imported goods directly used to overcome the consequences of natural disasters before carrying out customs procedures in Vietnam include?

According to Clause 1 Section 10 of Official Dispatch 12166/BTC-TCHQ in 2016:

IX. Tax exemption for exported or imported goods used for social security, mitigation of the impacts of natural disasters, calamities, epidemics and in other special cases

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2. Application for tax exemption for goods imported to overcome the consequences of natural disasters, calamities or epidemics which is submitted prior to procedures for customs clearance thereof shall include:

a) An application form for tax exemption made by the People's Committee of a municipality or province, Ministry or other authority at the similar level, which clearly states assessment of the likely impacts of natural disasters, calamities or epidemics within their jurisdiction, including 01 original copy required;

b) The Schedule of imported goods directly used to overcome the consequences of natural disasters, calamities or epidemics, including 01 original copy required;

c) The decision to announce an epidemic issued by a regulatory authority in accordance with provisions laid down in the Law on Prevention and Treatment of Infectious Diseases, in the event that goods are imported to overcome the consequences of such epidemic, including 01 duplicate copy which is certified as a true copy of that decision.

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5. Procedures for tax exemption:

a) After considering the application form for tax exemption made by the People’s Committee of a municipality or province, Ministry or an authority at the similar level, within the permitted duration of 15 days, the Ministry of Finance shall assess documents submitted to apply for tax exemption and send an assessment report enclosing the Schedule of goods for which tax exemption is requested to the Prime Minister to seek his decision.

b) After obtaining the Prime Minister’s decision, the Customs Subdepartment in charge of import or export clearance procedures shall grant import and export duty exemptions in accordance with laws and regulations.

Thus, the application for exemption of duties on imported goods directly used to overcome the consequences of natural disasters before carrying out customs procedures in Vietnam includes:

- 01 original application form for tax exemption made by the People's Committee of a municipality or province, Ministry or other authority at a similar level, which clearly states an assessment of the likely impacts of natural disasters, calamities or epidemics within their jurisdiction;

- 01 original Schedule of imported goods directly used to overcome the consequences of natural disasters, calamities or epidemics;

- 01 certified true copy of the decision to announce an epidemic issued by a regulatory authority in accordance with provisions laid down in the Law on Prevention and Treatment of Infectious Diseases, in the event that goods are imported to overcome the consequences of such epidemic.