Are indirectly imported goods subject to import and export duties in Vietnam?

Are indirectly imported goods subject to import and export duties in Vietnam?

Under Clause 3, Article 2 of the Law on Export and Import Duties 2016, the following provisions are made regarding taxable goods:

Taxed goods

1. Goods exported and imported through Vietnam’s border and border checkpoints.

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

3. Goods indirectly exported-imported; goods exported and imported by enterprises exercising their right to export, import, or distribute.

4. The following goods do not incur export and import duties:

a) Goods in transit;

b) Goods that are humanitarian aid or grant aid;

c) Goods exported from a free trade zone to abroad; goods imported from abroad to a free trade zone and used within such free trade zone; goods transported from one free trade zone to another;

d) Amounts of petroleum used as severance tax paid to the State upon its exportation.

5. The Government shall regulate this Article.

Thus, indirectly imported goods are subject to import and export duties in Vietnam.

Are indirectly imported goods subject to import and export duties in Vietnam? (Image from the Internet)

Which entity is responsible for paying duties on indirectly imported goods in Vietnam?

Under Article 3 of the Law on Export and Import Duties 2016, the following provisions are made regarding taxpayers:

Taxpayers

1. Owners of exports and imports.

2. Entrusted exporters and importers.

3. People entering and leaving Vietnam carrying exports or imports, sending or receiving goods through Vietnam’s border and border checkpoints.

4. Taxpayers’ guarantors and other entities authorized to pay tax on behalf of taxpayers, including:

a) Customs brokerage agents in case authorized by the taxpayer to pay export and import duties;

b) Providers of postal services or international express mail services paying tax on behalf of taxpayers;

c) Credit institutions or other organizations operating under the Law on credit institutions that provide guarantee or pay tax on behalf of taxpayers;

d) People authorized by goods owners in case goods are gifts of individuals; any luggage sent before or after its owner’s arrival or departure;

dd) Any branch of an enterprise authorized to pay tax on its behalf;

e) Other people authorized to pay tax on behalf of taxpayers as prescribed by law.

5. Any person who purchases or transports goods within the tax-free allowance applied to border residents which are sold domestically instead of being consumed or used for manufacture; foreign traders permitted to deal in exports and imports at bordering markets as prescribed by law.

6. Owners of exports or imports that are initially tax-free but then taxed.

7. Other cases prescribed by law.

Thus, under the above provisions, the owner of the goods will be the one to pay duties on indirectly imported goods.

What are the regulations on the deadline for paying import and export duties in Vietnam?

Pursuant to Article 9 of the Law on Export and Import Duties 2016, the following provisions are made regarding the deadline for paying taxes:

- Duties on exports and imports have to be paid before customs clearance or release as prescribed by the Law on Customs, except for the case in Clause 2 hereof.

Where a credit institution provides guarantee for the amount of tax payable, customs clearance or release shall be granted. However, late payment interest shall be paid for the period from the date of customs clearance or release to the tax payment date in accordance with the Law on Tax administration.

The guarantee period shall not exceed 30 days from the day on which the customs declaration is registered.

If the taxpayer fails to pay tax and late payment interest by the end of the guarantee period, the guarantor shall fully pay tax and late payment interest on behalf of the taxpayer.

- The taxpayer given priority as prescribed by the Law on Customs shall pay tax on the customs declarations granted customs clearance or release in the month by the 10th of the next month. If the taxpayer fails to pay tax by the aforesaid deadline, the taxpayer shall fully pay outstanding tax and late payment interest as prescribed by the Law on Tax administration.

Additionally, Article 4 of Decree 134/2016/ND-CP provides guidance on the deadline for paying import and export duties as follows:

- Deadlines for paying tax specified in Article 9 of the Law on Export and Import Duties 2016 are applied to dutiable exports and imports prescribed by tax laws.

- Export and import duty payment guarantee is either a separate or joint guarantee.

+ Separate guarantee means guarantee of full payment of duty on an export/import declaration offered by a credit institution which operates under the Law on credit institutions;

+ Joint guarantee means guarantee of full payment of duty on more than one export/import declaration opened at one or more Sub-department of Customs offered by a credit institution which operates under the Law on credit institutions; Guaranteed amount of duty under a joint guarantee shall vary according to the amount of paid duty;

+ Where a credit institution (the guarantor) offers a separate guarantee or joint guarantee but the taxpayer has failed to pay duty and late payment interest (if any), the credit institution shall fully pay the duty and late payment interest owed by the taxpayer according to information on the customs information processing system or notification given by the customs authority;

+ Contents of a guarantee letter, submission, verification, monitoring and processing of guarantee letters shall comply with tax administration laws.

- If case of depositing import duty on temporarily imported goods before the deadline for re-export, which might be extended, the taxpayer shall transfer an amount of money equal to the import duty on such temporarily imported goods to the customs authority’s deposit account at a State Treasury.

The deposit shall be returned in accordance with regulations of tax administration laws on return of overpaid taxes, late payment interest and fines.

- Where temporarily imported goods are not re-exported by the deadline, the customs authority shall transfer the deposit to state budget.

If there is a guarantee, the credit institution (the guarantor) shall transfer an amount equal to the import duty to state budget according to information on the customs information processing system or notification given by the customs authority.