Are imports serving assurance of social security in Vietnam exempt from import and export duties?

Are imports serving assurance of social security in Vietnam exempt from import and export duties?

Under Article 16 of the Law on Import and Export Duties 2016 on tax exemption:

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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20. Imports directly serving education that cannot be domestically produced.

21. Imported dedicated machinery, equipment, components, supplies that cannot be domestically produced, scientific materials serving scientific research, technological development, technological cultivation, cultivation of science and technology enterprises and technological innovation.

22. Imported dedicated products directly serving national defense and security, the vehicles among which must be those that cannot be domestically produced.

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

24. The Government shall regulate this Article.

Thus, imports serving assurance of social security in Vietnam are exempt from import and export duties.

Are imports serving assurance of social security in Vietnam exempt from import and export duties? (Image from the Internet)

What does the application for exemption from import and export duties on imports serving assurance of social security in Vietnam include?

Under Clause 4, Article 28 of Decree 134/2016/ND-CP, amended and supplemented by Clause 9, Article 1 of Decree 18/2021/ND-CP, the application for exemption from import and export duties on imports serving assurance of social security in Vietnam includes the following documents:

[1] Official Dispatch proposing tax exemption from the provincial or municipal People's Committee or Ministry or equivalent level: 01 original;

[2] List of imports serving assurance of social security according to Form No. 04 in Appendix 7 issued together with Decree 134/2016/ND-CP (download): 01 original.

What are the procedures for exemption from import and export duties on imports serving assurance of social security in Vietnam?

Based on Clause 7, Article 28 of Decree 134/2016/ND-CP, amended and supplemented by Clause 9, Article 1 of Decree 18/2021/ND-CP, the procedures for exemption from import and export duties on imports serving assurance of social security in Vietnam are as follows:

- Procedures for tax exemption for exports and imports serving assurance of social security, recovery from disasters, epidemics, and other special situations:

+ The taxpayer submits the application for tax exemption as stipulated in Clauses 3, 4, and 5 of Article 28 of Decree 134/2016/ND-CP to the Ministry of Finance.

Within 30 days from the date of receiving the complete application, the Ministry of Finance appraises the application and reports to the Prime Minister of Vietnam for consideration and decision, along with the list of goods proposed for tax exemption.

For other special cases that require consultation from related ministries and central authorities, the appraisal period may be extended but not exceed 40 days from the date of receipt of the complete application.

Within 15 days from the date of receipt of the appraisal document from the Ministry of Finance, the Prime Minister of Vietnam issues a decision on export and import tax exemption according to Form No. 23 in Appendix 7 issued together with Decree 18/2021/ND-CP, amending Decree 134/2016/ND-CP (download) or issues a written refusal for tax exemption to the proposing agency, organization, or individual.

Based on the tax exemption decision from the Prime Minister of Vietnam, the customs authority where the export or import procedures are carried out will process the tax exemption.