Are goods worth 700,000 VND sent via express courier service exempt from import duty in Vietnam?

Are goods worth 700,000 VND sent via express courier service exempt from import duty in Vietnam?

The waiver of export and import dutieses for goods is stipulated in Clause 3, Article 29 of Decree 134/2016/ND-CP (amended by Point a, Clause 2, Article 2 of Decree 18/2021/ND-CP; Clause 11, Article 1 of Decree 18/2021/ND-CP) as follows:

Tax exemption for goods of minimum value, goods sent via postal and express courier services

2. Imported goods sent via postal and express courier services with a customs value of 1,000,000 VND or less, or with a tax amount payable of 100,000 VND or less, are exempted from import duty.

In cases where goods have a customs value exceeding 1,000,000 VND or a total tax amount payable exceeding 100,000 VND, import duty is payable on the entire shipment.

3. Goods with a total customs value of 500,000 VND or less, or with a total export and import duties amount payable of 50,000 VND or less for each export or import consignment, are exempted from export and import dutieses.

The regulations in this clause do not apply to gifts, donated goods, goods exchanged by border residents, and goods sent via postal and express courier services.

4. Tax exemption dossier: Customs documents are to be processed according to customs law.

According to the above regulations, imported goods sent via postal and express courier services with a customs value of 1,000,000 VND or less or a tax amount payable of 100,000 VND or less are exempted from import duty.

Thus, goods worth 700,000 VND sent via express courier service will be exempt from import duty.

However, goods with a total customs value of 500,000 VND or less or a total export and import duties amount payable of 50,000 VND or less for each export or import consignment are exempt from export and import dutieses, meaning that 50,000 VND still needs to be paid for a single import of these goods.

*Note: The regulations in this clause do not apply to gifts, donated goods, goods exchanged by border residents, and goods sent via postal and express courier services.

Tax exemption dossier: Customs documents are to be processed according to customs law.

Are goods worth 700,000 VND sent via express courier service exempt from import duty in Vietnam? (Image from the Internet)

What are the procedures for export and import duty exemption in Vietnam?

Pursuant to Article 17 of the 2016 Law on export and import duties, the procedures for export and import duty exemption are stipulated as follows:

- In cases stipulated in Clauses 11, 12, 13, 14, 15, 16, and 18 of Article 16 of the 2016 Law on export and import duties, the taxpayer must submit a notice of expected tax-exempt goods to the customs authority.

- Tax exemption procedures shall be in accordance with the laws on tax administration.

Who pays the tax when an individual sends goods via express courier service and authorizes someone to pay the tax on their behalf in Vietnam?

According to Article 3 of the 2016 Law on export and import duties, in cases where an individual sends goods via express courier service and authorizes someone to pay the tax on their behalf, the handling is as follows:

Taxpayers

1. Owners of export or import goods.

2. Organizations entrusted with export or import.

3. Persons exiting or entering the country with export or import goods, sending or receiving goods through border gates or Vietnam's borders.

4. Persons authorized, guaranteed, and paying taxes on behalf of taxpayers, including:

a) Customs agents in cases where they are authorized by the taxpayer to pay export or import duty;

b) Enterprises providing postal services, international express courier services in cases where they pay taxes on behalf of the taxpayer;

c) Credit institutions or other organizations operating under the Law on Credit Institutions in cases where they provide guarantees and pay taxes on behalf of the taxpayer;

d) Persons authorized by the owner of goods in cases where the goods are personal gifts; luggage sent before or after the travel of entry or exit persons;

dd) Branches of enterprises authorized to pay taxes on behalf of the enterprise;

e) Other persons authorized to pay taxes on behalf of taxpayers under the law.

5. Persons purchasing, transporting goods within the tax exemption limit of border residents but not using them for production or consumption and selling them in the domestic market; foreign merchants permitted to trade export or import goods at border markets as provided by law.

6. Persons with export or import goods that are not subject to tax, exempt from tax but are later subject to tax liability under the law.

7. Other cases as prescribed by law.

Thus, enterprises providing international express courier services will be the taxpayers on behalf of the original taxpayers.