Is it required to pay import duties for goods from Southeast Asian countries to Vietnam before customs clearance?

Is it required to pay import duties for goods from Southeast Asian countries to Vietnam before customs clearance?

Based on Clause 1, Article 9 of the Law on Export and Import duties 2016 prescribed as follows:

Deadline for Tax Payment

1. Exported and imported goods subject to duties must be taxed before customs clearance or the release of goods, according to the Customs Law, except in cases specified in Clause 2 of this Article.

In cases where the tax payable is guaranteed by a credit institution, customs clearance or the release of goods is allowed, but the late payment penalties must be paid as regulated by the Law on Tax Administration from the date of customs clearance or release of goods until the tax is paid. The maximum guarantee period is 30 days from the date of customs declaration registration.

If the tax is guaranteed by a credit institution but the guarantee period expires and the taxpayer has not paid the tax and late payment penalties, the guaranteeing institution is responsible for fully paying the tax and late payment penalties on behalf of the taxpayer.

2. Taxpayers who are eligible for preferential policies according to the Customs Law can pay duties for goods that have already been cleared or released in a month by the tenth day of the following month. If duties are not paid by this deadline, the taxpayer must pay the total due tax amount and the late payment penalties as regulated by the Law on Tax Administration.

Therefore, according to the regulations, it does not mandate goods from Southeast Asia or other regions, as long as they are imported into Vietnam (subject to duties), the duties must be paid before customs clearance or before the release of goods in accordance with the Customs Law, except in cases specified in Clause 2, Article 9 of the Law on Export and Import duties 2016.

Is it required to pay import duties for goods from Southeast Asian countries to Vietnam before customs clearance? (Image from the Internet)

Are imported components valued over 100 million for processing export products exempt from import duty in Vietnam?

Based on Clause 6, Article 16 of the Law on Export and Import duties 2016 prescribed as follows:

Tax Exemption

1. Exported and imported goods of foreign organizations and individuals eligible for privileges and exemptions in Vietnam within the limits according to international treaties to which the Socialist Republic of Vietnam is a member; duty-free goods within the baggage limits of departing and arriving individuals; imported goods for sale at duty-free stores.

2. Movable assets, gifts, and presents within limits from foreign organizations and individuals to Vietnamese organizations and individuals or vice versa.

Movable assets, gifts, and presents that exceed duty-free limits are subject to duties on the exceeding part, except for cases where the receiving entity is a state-budget secured unit and has permission from the competent authority, or in humanitarian or charitable cases.

3. Goods traded and exchanged across borders by border residents falling under the list of goods and within limits for the production and consumption needs of border residents.

Goods purchased or transported within limits but not used for the production or consumption needs of border residents and exported or imported goods by foreign traders authorized to trade at border markets must pay duties.

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

5. Goods with a value or tax amount below the minimum threshold.

6. Materials, supplies, and components imported for processing export products; finished products imported for attachment to processed products; processed export products.

Processed export products manufactured from domestic materials subject to export duties are not exempted from duties on the value of domestic materials constituting the exported product.

Goods exported for processing and later imported are exempt from export duties and import duties calculated on the value of exported materials constituting the processed product. However, exported goods for processing and later imported as resources and minerals, and products with a total resource and mineral value plus energy cost accounting for 51% or more of the product's cost are not exempt from duties.

One of the tax-exempt cases is: Materials, supplies, and components imported for processing export products; finished products imported for attachment to a processed product; processed export products. Therefore, in this case, regardless of the monetary value, as long as the components are imported for processing export products, they will be exempt.

What are cases for export and import duty refund in Vietnam?

Based on Clause 1, Article 19 of the Law on Export and Import duties 2016 prescribing cases for export and import duty refunds as follows:

- Cases for tax refund:

a) Taxpayers have paid import and export duties but no goods are imported, exported, or the imported, exported goods are fewer than those declared;

b) Taxpayers have paid export tax, but the exported goods need to be re-imported, in which export tax will be refunded and no import duty is payable;

c) Taxpayers have paid import duty, but the imported goods need to be re-exported, in which import duty will be refunded and no export tax is payable;

d) Taxpayers have paid duties for goods imported for production and business but were used for exporting finished goods and have exported the products;

e) Taxpayers have paid duties for machinery, equipment, tools, vehicles temporarily imported and then re-exported, excluding those rented for investment projects and construction, installation works, production purposes, when re-exported abroad or to a non-tariff area.

The refunded import duty amount is determined based on the remaining value of the goods when re-exported, calculated according to the time of use and stay in Vietnam. If goods have exhausted their usage value, the paid import duty will not be refunded.

No refund for amounts below the minimum threshold according to Government regulations.

- Goods specified in Points a, b, and c, Clause 1 of this Article are eligible for tax refunds when they have not been used, processed, or manufactured.

- Procedures for tax refunds are implemented according to the legal regulations on tax management.