Are goods that are humanitarian aid subject to import-export duties in Vietnam?

Are goods that are humanitarian aid subject to import-export duties in Vietnam?

Based on Article 2 of the Law on Export and Import duties 2016, it is stipulated as follows:

Taxable Objects

1. Goods exported or imported through Vietnam's ports and borders.

2. Goods exported from the domestic market into free trade zones, and goods imported from free trade zones into the domestic market.

3. Locally exported and imported goods, and goods exported and imported by enterprises exercising their export, import, and distribution rights.

4. The following objects are not subject to export and import duties:

a) Goods in transit, transshipped, or transloaded;

b) goods that are humanitarian aid, non-refundable aid goods;

c) Goods exported from free trade zones to foreign countries, goods imported from foreign countries into free trade zones and used only within free trade zones, goods transferred from one free trade zone to another;

d) Petroleum used for paying resource taxes to the State when exported.

5. The Government of Vietnam shall detail this Article.

Accordingly, goods that are humanitarian aid are among the objects not subject to export and import duties.

Are goods that are humanitarian aid subject to import-export duties in Vietnam? (Image from the Internet)

What are bases for calculation of proportional duties imposed upon exports and imports in Vietnam?

Based on Article 5 of the Law on Export and Import duties 2016, it is stipulated as follows:

- The export and import tax amount is determined based on the taxable value and the tax rate by percentage (%) for each item at the time of tax calculation.

- The tax rate for exported goods is specifically prescribed for each item in the export tariff schedule.

In the case that goods are exported to a country, group of countries, or territory with preferential export tax arrangements in trade relations with Vietnam, these arrangements will apply.

- The tax rate for imported goods includes preferential duty rates, special preferential duty rates, and ordinary duty rates, applied as follows:

+ Preferential duty rates apply to imported goods originating from a country, group of countries, or territory that grants Most Favored Nation (MFN) treatment in trade relations with Vietnam;

Goods from free trade zones imported into the domestic market meeting the origins criteria from the country, group of countries, or territory granting MFN treatment in trade relations with Vietnam;

+ Special preferential duty rates apply to imported goods originating from a country, group of countries, or territory with special preferential import tax arrangements in trade relations with Vietnam;

Goods from free trade zones imported into the domestic market meeting the origins criteria from the country, group of countries, or territory with special preferential import tax arrangements in trade relations with Vietnam;

+ Ordinary duty rates apply to imported goods not falling under the cases specified in points a and b of this clause. The ordinary tax rate is set at 150% of the preferential tax rate for each corresponding item.

In the case where the preferential tax rate is 0%, the Prime Minister of the Government of Vietnam shall decide on the application of the ordinary tax rate based on the provisions of Article 10 of the Law on Export, Import Taxes 2016.

What is the deadline for paying import-export duties in Vietnam?

Based on Article 9 of the Law on Export and Import duties 2016, it is stipulated as follows:

- Goods subject to export and import duties must pay taxes before customs clearance or release according to the provisions of the Customs Law, except for cases specified in clause 2 of Article 9 of the Law on Export and Import duties 2016.

In cases where tax payment is guaranteed by credit institutions, goods can be cleared or released but must incur late payment interest as prescribed by the Tax Administration Law from the date of clearance or release until the tax payment date.

The maximum guarantee period is 30 days from the date of registration of the customs declaration.

If the guaranteed period expires and the taxpayer has not paid taxes and late payment interest, the guaranteeing organization must pay the full tax and late payment interest on behalf of the taxpayer.

- Taxpayers granted priority policies as regulated by the Customs Law are allowed to pay taxes for cleared or released customs declarations of the month no later than the tenth day of the following month.

Past this deadline, if the taxpayer has not paid taxes, they must pay the full tax arrears and late payment interest as prescribed by the Tax Administration Law.

What are 5 principles for promulgating the export and import tariff schedule and duty rates in Vietnam?

Based on Article 10 of the Law on Export and Import duties 2016, the 5 principles for promulgating the export and import tariff schedule and duty rates are stipulated as follows:

- Encouraging the import of raw materials and materials, prioritizing those not yet meeting domestic demand; focusing on the development of high technology, source technology, energy saving, and environmental protection sectors.

- Conforming to the socio-economic development orientation of the State and the commitments on export and import duties in international treaties to which the Socialist Republic of Vietnam is a member.

- Contributing to market stabilization and state budget revenue sources.

- Simple, transparent, and facilitating taxpayers and implementing tax administrative procedure reforms.

- Applying uniform duty rates for goods with similar nature, composition, use, and technical features; the import tax rate decreases progressively from finished products to raw materials; the export tax rate increases progressively from finished products to raw materials.