Does a single journey guarantee cover all customs duties in Vietnam?
Does a single journey guarantee cover all customs duties in Vietnam?
Based on Clause 6, Article 3 of Decree 46/2020/ND-CP, a single journey guarantee is defined as follows:
Terminology Explanation
In this Decree, the following terms are understood as follows:
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3. Transit Accompanying Document (abbreviated as TAD) is the transit customs declaration that has been approved by the departure customs authority and printed from the ACTS System.
4. Transit journey is the transportation route of goods in transit from one customs authority at the departure point to another customs authority at the destination point through the ACTS System.
5. Transit guarantee is the guarantor's assurance for the payment of potential customs duties arising during the transit journey.
6. A single journey guarantee is the guarantor's commitment to fulfill the entire customs duty obligations that may arise during a single transit journey.
7. Multiple journey guarantee is the guarantor's commitment to fulfill the entire customs duty obligations that may arise from multiple transit journeys.
8. A guarantor is a legal entity or individual who commits to the departure customs authority, the transit country customs authority, and the destination customs authority to pay any customs duties potentially arising as required by the customs authority involved in the transit journey.
9. A guarantor in Vietnam (in case the transit goods originate from Vietnam passing through other ASEAN countries) is a credit institution, foreign bank branch operating under the Credit Institution Law ensuring commitment to the Vietnam customs authority, transit country customs authorities, and destination customs authorities to fulfill duty payments that may arise during the goods transit journey.
10. The guarantor authority is the organization designated by ASEAN member countries participating in Protocol 7 to approve the guarantor and supervise the guarantee during the goods transit process. The guarantor authority in Vietnam is the customs authority.
11. Customs duties are import taxes, other taxes, and fees required for the goods in transit incurred during the transportation process.
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A single journey guarantee involves the guarantor committing to fulfill all potential customs duties arising during a single transit journey.
Thus, according to the regulation above, goods guaranteed for a single journey will be covered for all the customs duties incurred during that single transit journey.
Does a single journey guarantee cover all customs duties in Vietnam? (Image from the Internet)
What is the timeline for assistance in recovery of customs debt in Vietnam?
Based on Clauses 3 and 4, Article 31 of Decree 46/2020/ND-CP, the forms and timelines for assistance in recovery of customs debt are regulated as follows:
- Regarding the form of support for customs tax debt recovery:
The support for tax debt recovery is conducted in writing or through the electronic system. When there is a request for support with customs tax debt recovery, the customs authority requesting support must provide the supporting customs authority with at least the following information:
+ Name and code of the customs declarant;
+ Transit declaration number, date of registration;
+ GRN number;
+ Credit institution, foreign bank branch issuing the guarantee;
+ Amount and reason for arising customs duties payable;
+ Other information (if necessary).
The provision and confidentiality of information shall comply with the Tax Management Law and relevant laws.
- Regarding the timeline for processing support requests for customs tax debt recovery:
Within 60 days from receiving the request for support, the customs authority requested for support must notify the requesting customs authority about:
+ The activities conducted to recover customs tax debt and the result of tax debt recovery (if any);
+ Reasons for unsuccessful recovery, incomplete recovery, or refusal to support the recovery of customs tax debt.
- Additionally, the cessation of support for customs tax debt recovery will apply in the following case:
If the customs declarant presents documents, confirmed by the competent authority, proving that the customs tax debt is under review in the tax debt arising country, the customs authority requested for support shall temporarily cease recovery activities and notify the requesting customs authority in writing.
Thus, the timeline for assistance in recovery of customs debt is within 60 days.
When is the customs tax time in Vietnam?
According to Clause 2, Article 8 of the Law on Export and Import Duties 2016:
Tax valuation and tax time
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2. The export and import tax point is the time of customs declaration registration.
For exported or imported goods not subject to tax, exempt from export or import tax, or applying quotas, specific tax rates within a quota changed regarding non-taxation, tax exemption, quota rates, specific tax levels as per legal regulations, the tax point is the time of new customs declaration registration.
The customs declaration registration point follows the legal regulations on customs.
Thus, the customs tax valuation point is the point of customs declaration registration for export and import goods.
*Note: For exported or imported goods exempt from tax or applying specific tax levels within quotas changed to a new tax or exemption status according to the law, the taxation point is the new customs declaration registration time.
