How many days does the customs declarant have to fully pay the customs duty in Vietnam?

How many days does the customs declarant have to fully pay the customs duty in Vietnam?

Firstly, pursuant to Clause 12, Article 3 of Decree 46/2020/ND-CP, customs debt is defined as follows:

Explanation of terms

In this Decree, the following terms are understood as follows:

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12. customs debt is the customs duty that the customs declarant has not paid into the state budget after the deadline for payment as regulated.

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It can be understood that customs debt is the amount of money the customs declarant has not paid into the state budget even though the deadline for payment has passed.

Besides, with regard to this customs debt, responsibilities are prescribed in Clause 8, Article 24 of Decree 46/2020/ND-CP as follows:

- The customs declarant is responsible for fully paying the customs duty within 10 days from the date the customs authority issues a notice according to the form issued by the Ministry of Finance;

- The guarantor is responsible for fully paying the customs duty within 30 days from the date of the customs authority's notice according to the form issued by the Ministry of Finance, in the event the customs declarant fails to fulfill or does not fully fulfill the tax obligations within the stipulated time at point a of this clause.

In addition to fully paying the customs duty, the customs declarant or the guarantor must also pay late payment interest, fines (if any) according to current legal regulations;

- Beyond 90 days from the expiry of the tax payment deadline prescribed at points a and b of this clause, if the customs declarant or the guarantor fails to fulfill tax obligations, the customs authority shall apply enforcement measures to execute the tax administrative decision according to regulations.

Therefore, according to the above regulations, the customs declarant is responsible for fully paying the customs duty within 10 days.

How many days does the customs declarant have to fully pay the customs duty in Vietnam? (Image from the Internet)

What is the time limit for processing a request for assistance in recovery of customs debts in Vietnam?

According to Clause 3 and Clause 4, Article 31 of Decree 46/2020/ND-CP, the form and time limit for processing a request for assistance in recovery of customs debts are as follows:

- Regarding forms of support for recovering customs debt:

Support for recovering tax debt is carried out in the form of documents or through electronic systems. When requesting support for recovering customs debt, the customs authority requiring assistance must provide the requested customs authority with at least the following information:

+ Name and identification number of the customs declarant;

+ Transit declaration number, registration date;

+ GRN number;

+ Credit institution, foreign bank branch issuing the guarantee;

+ Amount of money and reason for the incurrence of customs duties to be paid;

+ Other information (if necessary).

The provision and confidentiality of information are conducted in accordance with the Law on Tax Administration and related laws.

- Regarding the deadline for handling requests for support in recovering customs debt:

Within 60 days from the date of receiving the request for support, the customs authority requested to support must notify the customs authority requesting support about the following information:

+ The activities carried out to recover customs debt and the results of debt recovery (if any);

+ The reason for being unable to recover, not fully recovered, or refusal to support in recovering customs debt.

- Simultaneously, the suspension of support for recovering customs debt applies to the following case:

In case the customs declarant presents documents and materials confirmed by a competent authority proving that the customs debt is being considered in the country where the debt occurs, the customs authority requested to support shall suspend recovery activities and notify the customs authority requesting assistance.

Therefore, the time frame for supporting recovery of customs debt is within 60 days.

Do goods illegally relocated from transit procedures through the ACTS system incur customs duty in Vietnam?

Based on Clause 3 and Clause 4, Article 30 of Decree 46/2020/ND-CP, the form and time for supporting recovery of customs debt are as follows:

Cases of incurring customs duty and tax reduction

1. The following cases are identified as incurring customs duties:

a) Goods illegally relocated from transit procedures through the ACTS system as provided in Clause 15, Article 3 of this Decree, or after 30 days the originating customs authority did not receive documents or evidence from the customs declarant or transit customs authorities to prove that transit operations have completed customs procedures through the ACTS system as provided in Clause 2, Article 14 of this Decree;

b) Goods in transit that are redirected for domestic consumption or have changes in quantity, value, origin, classification compared to the declaration and other cases that incur tax liability.

2. The location of incurring customs duty is where the transited goods illegally moved or were redirected for domestic consumption or changed in quantity, value, origin, classification, causing tax liability. If the specific location cannot be identified, the place where the customs authority or competent authority discovers the illegal relocation or domestic consumption, causing tax liability, is considered the location.

3. Those responsible for customs duty liability incurred include:

a) The customs declarant is primarily responsible for the incurred customs duty during the transit of goods;

b) The guarantor is responsible for paying all or part of the incurred customs duty if the customs declarant fails to fulfill tax obligations;

c) Anyone moving or involved in the illegal movement of goods from transit procedures through the ACTS system is responsible for the incurred tax debt equivalent to the goods illegally moved. Payment of customs duties is conducted as provided in Clause 8, Article 24 of this Decree.

The owner or possessor of goods illegally relocated from transit procedures through the ACTS system is responsible for the corresponding customs duty incurred. Payment of customs duty is conducted as provided in Clause 8, Article 24 of this Decree.

4. Tax reduction or exemption from import duty:

a) In cases where goods in transit under customs supervision are damaged or lost due to force majeure as provided in the Law on Export and Import Duties, import duty can be reduced. The reduction is proportional to the actual loss percentage of the goods. If completely damaged or lost, no tax is required;

b) Documentation, procedures, and authority for reducing or exempting import duties are conducted in accordance with the Law on Export and Import Duties and its guiding documents.

Therefore, according to the provisions, goods illegally relocated from transit procedures through the ACTS system are among the cases that incur customs duty.