Are luggage sent before or after a flight exempt from import-export duties in Vietnam?

Are luggage sent before or after a flight exempt from import-export duties in Vietnam?

Based on section 1 of Resolution 33/NQ-CP of 2016 as follows:

- Regarding import procedures for luggage sent before or after the trip of arriving passengers:

In cases where arriving passengers do not have a customs-confirmed entry and exit declaration, the customs authority shall rely on documents including: a passport with an entry confirmation, an airline ticket, and a bill of lading showing the sender and receiver of the luggage sent before or after the trip under the name of the arriving passenger, submitted and presented by the arriving passenger, to carry out import procedures for the luggage sent before or after the trip. The tax-exemption policy for luggage according to regulations is not applied. The Ministry of Finance is assigned to provide specific guidance.

Therefore, according to the above provision, luggage sent before or after a flight will not be exempt from import-export duties.

Are luggage sent before or after a flight exempt from import-export duties in Vietnam? (Image from the Internet)

Who is the taxpayer for luggage sent before or after a flight subject to import-export duties in Vietnam?

According to Article 2 of the Export-Import Tax Law of 2016 regulating subjects liable to import-export duties as follows:

Taxable subjects

1. Goods exported and imported through Vietnam's border gates and borders.

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

3. Domestic export and import goods and goods exported and imported by enterprises exercising the right of export, import, and distribution.

4. Export-export, import-import duties are not applicable to the following cases:

a) Goods in transit, transshipment, and transferred goods;

b) Humanitarian aid goods, non-refundable aid goods;

c) Goods exported from free trade zones abroad; goods imported from abroad into free trade zones and only used in free trade zones; goods transferred from one free trade zone to another;

d) The portion of oil and gas used to pay resource duties to the State when exported.

5. The Government of Vietnam specifies this Article in detail.

As per the regulations, goods exported and imported through Vietnam's border gates and borders are subject to duties.

Thus, based on the above regulations, it can be seen that luggage sent before or after a flight that is subject to duties is directly the taxable object.

Who pays the duties for luggage sent before or after a flight subject to import-export duties in Vietnam?

According to Article 3 of the Export-Import Tax Law of 2016 regulating taxpayers as follows:

Taxpayers

1. The owner of exported or imported goods.

2. Organizations authorized to export or import.

3. Persons exiting or entering with exported or imported goods, sending or receiving goods through Vietnam's border gates and borders.

4. Persons authorized or guaranteed to pay duties on behalf of the taxpayer, including:

a) Customs clearance agents authorized by the taxpayer to pay export-import duties;

b) Enterprises providing postal services, international express delivery services in case they pay duties on behalf of the taxpayer;

c) Credit institutions or other organizations operating under the Credit Institutions Law regulations in the event of guaranteeing and paying duties on behalf of the taxpayer;

d) Persons authorized by the goods owner in the case of goods as gifts, presents from individuals; luggage sent before or after the trip of persons exiting or entering;

đ) Branches of enterprises authorized to pay duties on behalf of enterprises;

e) Other persons authorized to pay duties on behalf of the taxpayer under the law.

5. Persons purchasing, transporting goods within the exempt tax limit of border residents but not used for production, consumption, and sold in the domestic market, and foreign traders allowed to trade export-import goods at border markets according to the law.

6. Persons whose exported, imported goods are non-taxable, tax-free but later changed and fell under the taxable object as prescribed by the law.

7. Other cases stipulated by the law.

Thus, according to the regulations, if luggage sent before or after a flight must pay duties, the owner of the luggage is the taxpayer.

What is the tax payment deadline for luggage sent before or after a flight subject to import-export duties in Vietnam?

According to Article 9 of the Export-Import Tax Law of 2016 regulating the tax payment deadline as follows:

Tax payment deadline

1. Goods subject to export-import duties must be paid before customs clearance or release according to the Customs Law, except for the cases stipulated in item 2 of this Article.

In case a credit institution guarantees the tax amount payable, customs clearance or release is allowed, but late payment interest must be paid according to the Tax Management Law from the date of customs clearance or release to the tax payment date. The maximum guarantee term is 30 days from the date of customs declaration registration.

If a credit institution guarantees, but the guarantee period expires and the taxpayer has not yet paid the tax and late payment interest, the guarantor is responsible for paying full tax and late payment interest on behalf of the taxpayer.

2. Taxpayers entitled to preferential policies under the Customs Law can pay duties for customs declarations cleared or released in the month by the 10th day of the following month at the latest. If past this period and the duties have not been paid, the taxpayer must fully pay the tax debt and late payment interest according to the Tax Management Law.

Therefore, for luggage sent before or after a flight that is subject to duties, the tax payment deadline is before customs clearance or release.