Are models instead of samples exempt from import-export duty in Vietnam?

Are models instead of samples exempt from import-export duty in Vietnam?

Pursuant to Clause 10, Article 16 of the Law on Export and Import duties 2016, the regulation is as follows:

Tax Exemption

1. Exported and imported goods of foreign organizations and individuals benefiting from preferences and exemptions in Vietnam within the limits in accordance with international treaties to which the Socialist Republic of Vietnam is a member; goods in the duty-free baggage allowances of passengers exiting or entering the country; goods imported for sale at duty-free shops.

2. Personal belongings, gifts within the limits granted by foreign organizations or individuals to Vietnamese organizations or individuals, or vice versa.

Personal belongings, gifts exceeding the tax-free limit shall be taxed on the excess, except where the recipient is a state budget-funded agency or organization authorized to receive them, or in cases of humanitarian or charitable purposes.

3. Goods being bought, sold or exchanged across borders by border residents fall within the goods list and the limit to serve the production and consumption of border residents.

In case goods are collected and transported within the limit but not used for the production and consumption of border residents, and exported or imported goods of foreign merchants permitted for business at the border market, tax must be paid.

4. Goods exempted from export or import duties according to international treaties to which the Socialist Republic of Vietnam is a member.

5. Goods with values or taxable amounts below the minimum level.

6. Raw materials, supplies, and components imported for the processing of export products; finished products imported for incorporation into processed products; processed products for export.

Processed products for export made from domestic materials subject to export tax are not exempted from tax on the equivalent value of domestic materials in the exported products.

Goods exported for processing and then imported again are exempted from export and import taxes on the value portion of exported materials constituting the processed products. For goods exported for processing then re-imported that are resources, minerals, or products with the total value of resources and minerals plus energy costs accounting for 51% or more of the product cost, tax exemption is not applicable.

7. Raw materials, supplies, and components imported for the production of export goods.

8. Goods produced, processed, recycled, or assembled in the non-tariff area not using imported raw materials or components from abroad when imported into the domestic market.

9. Goods temporarily imported for re-export or temporarily exported for re-import within a certain period, including:

a) Goods temporarily imported for re-export or temporarily exported for re-import for the organization or participation in fairs, exhibitions, product introductions, and sports, cultural, artistic events, or other events; machinery, equipment temporarily imported for re-export for testing, research, and development of products; machinery, equipment, professional tools temporarily imported or exported for use during a specified period or for providing processing services for foreign traders, except for machinery, equipment, tools, and transport means of organizations and individuals permitted to temporarily import for re-export to carry out investment projects, construction, installation, and production;

b) Machinery, equipment, components, and spare parts temporarily imported to repair or replace foreign ships or aircraft, or temporarily exported to repair or replace Vietnamese ships or aircraft abroad; goods temporarily imported for re-export to supply foreign ships or aircraft berthed at Vietnamese ports;

c) Goods temporarily imported for re-export or temporarily exported for re-import for warranty, repair, or replacement;

d) Rotative transport means under the temporary import for re-export or temporary export for re-import to contain export or import goods;

đ) Goods involved in temporary import for re-export business within the temporary import-re-export period (including the extension period) that have been secured by credit institutions or have been deposited with an equivalent amount of import tax duty of the temporarily imported goods must be secured or deposited.

10. Non-commercial goods in the following cases: sample goods; pictures, films, models instead of samples; small quantity advertising publications.

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Thus, in reference to the above regulations, models instead of samples are subject to exemption from import-export duty.

Models instead of samples in Vietnam (Image from the Internet)

What is the maximum customs value for models instead of samples to qualify for tax exemption in Vietnam?

Pursuant to Clause 1, Article 27 of Decree 134/2016/ND-CP, the regulation is as follows:

Exemption from import tax for non-commercial goods

Non-commercial goods are exempt from import tax in the following cases:

1. Sample goods, pictures of sample goods, films of sample goods, models instead of samples with a customs value not exceeding 50,000 Vietnamese dong or have been processed so that they cannot be sold or used, only for sampling.

2. Advertising publications under Chapter 49 of the Vietnam Export and Import Goods List, including leaflets, trade catalogues, directories, advertising documents, and tourism posters used for advertising or announcing a product or service and provided free of charge are exempt from import tax under the provisions of Clause 10, Article 16 of the Law on Export and Import dutiesprovided that each shipment consists of only one type of publication and the total weight does not exceed 1 kg; if a shipment includes several types of publications, each type of publication must be a single copy or the total weight of the publications must not exceed 1 kg.

3. Tax exemption documents and procedures are in accordance with Article 31 of this Decree.

Thus, according to the above regulations, models instead of samples with a maximum customs value not exceeding 50,000 Vietnamese dong or having been processed so that they cannot be sold or used, only for sampling, will qualify for import-export duty exemption.

What are the tax exemption documents for models instead of samples in Vietnam?

Pursuant to Clause 3, Article 31 of Decree 134/2016/ND-CP referenced to Article 31 of Decree 134/2016/ND-CP (amended by Point d, Clause 20, Clause 14, Article 1 of Decree 18/2021/ND-CP and contents repealed by Point a, Clause 2, Article 2 of Decree 18/2021/ND-CP; additionally, Article 31a added by Clause 15, Article 1 of Decree 18/2021/ND-CP) the documents and procedures for tax exemption for non-commercial goods like advertising publications are as follows:

- The tax exemption dossier comprises customs documents as prescribed by the Customs Law and guiding documents.

- Besides the documents specified in Clause 1, Article 31 of Decree 134/2016/ND-CP, depending on the case, the taxpayer submits one of the following documents:

+ Trust contract in case of entrusted export or import: 01 copy

+ Supply contract according to the bid-winning document or designated bidding document clearly stating that the supply price does not include import tax in the case of organizations or individuals winning bids for importing goods: 01 copy

+ Supply contract for organizations or individuals conducting petroleum activities clearly stating that the supply price does not include import tax in the case of imported goods for petroleum activities: 01 copy

+ Financial leasing contract in the case of imported goods provided to tax-exempt individuals, clearly stating the supply price does not include import tax: 01 copy

+ Transfer voucher of tax-exempt goods for transferring exempt products to other tax-exempt entities, clearly stating the transfer price does not include import tax: 01 copy

+ Written confirmation from the Ministry of Science and Technology for transport means specified in Clauses 11, 15, and 16, Article 16 of the Law on Export and Import duties 2016: 01 original;

+ Tax exemption list received by the customs authority for notifications of anticipated import exemption list by paper accompanied by deduction tracking slips received by the customs authority: 01 copy, with the original presented for comparison.

In cases of notifying the tax exemption list through the Electronic Data Processing System, the taxpayer is not required to submit the exemption list, and the customs authority utilizes the list on the system to implement tax exemptions as prescribed.

+ Tax exemption decision by the Prime Minister of Vietnam for cases prescribed in points a, b, đ of Clause 1, Article 28 of Decree 134/2016/ND-CP: 01 copy, with the original presented for comparison.