Vietnam: What are the sub-sections for import duty payment in 2024?

What are the sub-sections for import duty payment in 2024 in Vietnam?

According to point b, clause 1, Article 4 Circular 324/2016/TT-BTC, the sub-section (also known as the economic content code - NDKT) is a detailed classification of the section, used to classify state budget revenues and expenditures in detail by management objects within each section.

Based on Annex 3 of the List of sections and sub-sections issued along with Circular 324/2016/TT-BTC, the import duty sub-section 2024 is stipulated as follows:

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What are the sub-sections for import duty payment in 2024 in Vietnam? (Image from the Internet)

When is the deadline for paying import duty in Vietnam?

According to Article 9 Law on Export and Import Duties 2016, it is stipulated as follows:

Tax payment deadline

1. 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.

2. 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.

Thus, the deadline for paying import duty is before customs clearance or release according to the Customs Law 2014.

However, the taxpayer given priority as prescribed shall pay tax on the customs declarations granted customs clearance or release in the month by the 10th of the next month.

What are the cases of import duty reduction in Vietnam?

According to Article 18 Law on Export and Import Duties 2016:

Tax reduction

1. Exports and imports that are damaged or lost under customs supervision and the damage or loss is verified by a competent organization, tax reduction shall be granted.

The level of reduction shall be proportional to the loss of goods. Tax is exempt if the exports or imports are completely damaged or lost.

2. The procedures for tax reduction shall comply with regulations of law on tax administration.

Simultaneously, according to Article 32 Decree 134/2016/ND-CP as amended by clause 16, Article 1 Decree 18/2021/ND-CP:

Export and import duty reduction

2. An application for duty reduction consists of:

a) The written request form sent via the electronic data processing system of the customs authority according to Form No. 3 in Appendix VIIa or Form No. 08 in Appendix VII hereof: 01 original copy;

b) The insurance contract or insurance payout notice issued by the insurer (if any), or the insurer’s confirmation if the insurance contract does not cover tax indemnification; the contract or agreement on compensation issued by the shipping company in case the damage is caused by the shipping company (if any): 01 photocopy;

c) A confirmation of damage issued by a local authority e.g. confirmation of conflagration issued by the local fire department, confirmation issued by one of the following bodies: police authority of the commune, the People’s Committee of the commune; management board of the industrial zone, export processing zone or economic zone; border checkpoint management board; port authority, airport authority where the force majeure event (natural disaster, epidemic, accident) occurs and causes damage to the imported materials or equipment: 01 original copy.

d) Confirmation of loss or damage of goods issued by an assessment service provider: 01 original copy.

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Thus, if imports that are damaged or lost under customs supervision and the damage or loss is verified by a competent organization, tax reduction shall be granted.

The level of reduction shall be proportional to the loss of goods. Tax is exempt if the imports are completely damaged or lost.