Are goods in the luggage of inbound and outbound passengers subject to duty exemption in Vietnam?

Are goods in the luggage of inbound and outbound passengers subject to duty exemption in Vietnam?

According to Clause 1, Article 16 of the Law on Export and Import Duties 2016:

Tax exemption

1. Exported or imported goods of foreign entities granted diplomatic immunity and privileges in Vietnam within the allowance under an international treaty to which Socialist Republic of Vietnam is a signatory; luggage within the tax-free allowance of inbound and outbound passengers; imports to be sold at duty-free shops.

2. Personal belongings, gifts from foreign entities to Vietnamese entities and vice versa within the tax-free allowance.

If the quantity or value of personal belongings or gifts exceeds the tax-free allowance, the excess amount or value shall be taxed, unless the recipient is an entity funded by state budget and permitted by a competent authority to receive them or they are meant to serve humanitarian or charitable purposes.

3. Goods traded across the border of border residents on the List of goods and within the tax-free allowance serving the manufacturing or consumption by border residents.

Goods that are purchased or transported within the tax-free allowance but do not serve the manufacturing or consumption by border residents, exports and imports of foreign traders permitted to be sold at bordering markets shall be taxed.

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Goods in the luggage of inbound and outbound passengers are subject to duty exemption when the luggage is within the tax-free allowance of inbound and outbound passengers.

Are goods in the luggage of inbound and outbound passengers subject to duty exemption in Vietnam? (Image from the Internet)

What is the tax-free allowance for luggage of inbound passengers in Vietnam?

According to Clause 1, Article 6 of Decree 134/2016/ND-CP,  each time a person immigrates under a passport or a passport substitute (except for laissez-passers) issued by a Vietnamese authority or foreign authority, he/she shall be granted duty-free allowance for his/her luggage, whether it is accompanied luggage or sent before or after his/her arrival:

- 1.5 liters of alcohol of ≥20% ABV or 2.0 liters of alcohol of <20% ABV or 3.0 liters of other alcoholic drinks or beer.

If the traveler carries a bottle or can of alcohol whose volume exceeds the limit by not more than 01 liter, the whole bottle will be duty-free. If the volume exceeds the limit by more than 01 liter, the exceed amount shall be dutiable;

- 200 cigarettes or 250 gram of shredded tobacco or 20 cigars;

- Reasonable quantity and categories of personal belongings;

- Other items other than those mentioned in Point a through c of Clause 1, Article 6 of Decree 134/2016/ND-CP (not on the List of goods banned from import, suspended from import or subject to conditional import) whose total customs value does not exceed VND 10,000,000;

Where the aforementioned allowance is exceeded, the traveler may decide which items are within the allowance and which are not.

What are the conditions for exemption from export duties on the luggage of outbound passengers without limit in Vietnam?

According to Clause 3, Article 6 of Decree 134/2016/ND-CP:

Duty-free allowances for luggage

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2. Aircraft operators, attendants on international flights; train operators and attendants on international trains; officers and crewmembers on sea-going vessels; Vietnamese workers and drivers working in countries that shares land borders with Vietnam shall be granted the duty-free allowances mentioned in Point a, Point b and Point d of this Clause every 90 days instead of every time they enter Vietnam. The duty-free allowances mentioned in Point a and Point b Clause 1 of this Article do not apply to people aged under 18.

3. Each time a person emigrates under a passport or a passport substitute issued by a Vietnamese authority or foreign authority, his/her luggage shall be exempt from export duties without limit, whether it is accompanied luggage or sent before or after his/her departure, provided it is not on the List of goods banned from export, suspended from export or subject to conditional export.

4. The application for duty exemption is the customs dossier defined by customs law.

5. Procedures for granting duty exemption are specified in Article 31 of this Decree.

Therefore, each time a person emigrates under a passport or a passport substitute issued by a Vietnamese authority or foreign authority, his/her luggage shall be exempt from export duties without limit, whether it is accompanied luggage or sent before or after his/her departure, provided it is not on the List of goods banned from export, suspended from export or subject to conditional export.