Is non-commercial films for sample purposes subject to import-export duty in Vietnam?

Is non-commercial films for sample purposes subject to import-export duty in Vietnam?

Based on Clause 10, Article 16 of the 2016 Law on Export and Import duty which stipulates as follows:

Tax Exemption

1. Exported and imported goods of foreign organizations and individuals entitled to preferential treatments, exemptions in Vietnam within limits compatible with international agreements of which the Socialist Republic of Vietnam is a member; goods under duty-free baggage allowances of outgoing, incoming passengers; goods imported for sale at duty-free shops.

2. Personal moveable assets, gifts within limits given by foreign organizations and individuals to Vietnamese organizations and individuals or vice versa.

Moveable assets, gifts exceeding the tax exemption limits are subject to tax on the exceeded portion, except when the recipient is an agency or organization funded by the state budget and authorized to receive, or in the case of humanitarian or charitable purposes.

3. Goods bought, exchanged across borders by border residents within the List of goods and limits for production and consumption by border residents.

In cases where goods are procured, transported within the limits but not used for production and consumption by border residents, and exported, imported goods of foreign traders permitted to operate business at border markets, taxes must be paid.

4. Goods exempted from export and import taxes under international agreements to which the Socialist Republic of Vietnam is a party.

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

6. Raw materials, supplies, components imported for processing export products; finished products imported for attachment to processed products; exported processed products.

Processed export products manufactured from domestic raw materials, supplies subject to export tax are not exempted for the value of domestic raw materials, supplies constituting the export product.

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

7. Raw materials, supplies, components imported for manufacturing export goods.

8. Goods manufactured, processed, recycled, assembled in non-tariff zones without using raw materials, components imported from abroad when imported into the domestic market.

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

a) Goods temporarily imported, re-exported, temporarily exported, re-imported for organizing or attending fairs, exhibitions, product introduction, sports, culture, art or other events; machinery, equipment temporarily imported, re-exported for testing, product development research; temporarily imported, re-exported professional equipment, tools to serve work within a certain period or to serve processing for foreign traders, excluding machinery, equipment, tools, means of transport for organizations, individuals permitted to temporarily import, re-export for investment projects, construction, installation of works, production purposes;

b) Machinery, equipment, components, spare parts temporarily imported for replacing, repairing foreign ships, aircraft or temporarily exported for replacing, repairing Vietnamese ships, aircraft abroad; goods temporarily imported, re-exported for furnishing foreign ships, aircraft moored at Vietnamese ports;

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

d) Rotating means under temporary import, re-export or temporary export, re-import method to contain export, import goods;

dd) Business goods temporarily imported, re-exported within the temporary import, re-export period (including extension period) guaranteed by a credit institution or have deposited an amount equivalent to the import tax amount of the temporarily imported, re-exported goods.

10. Goods not intended for commercial purposes in the following cases: samples; pictures, films, models substituting samples; small quantity of advertising prints.

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Thus, based on the above regulations, goods not intended for commercial purposes like films for sample purposes are subject to import-export tax exemption.

Is non-commercial films for sample purposes subject to import-export duty in Vietnam? (Image from Internet)

What pricing conditions must be met for imports of non-commercial films for sample purposes to be eligible for tax exemption in Vietnam?

Based on Clause 1, Article 27 of Decree 134/2016/ND-CP states as follows:

Exemption of import tax for goods not intended for commercial purposes

Goods not intended for commercial purposes are exempt from import tax in the following cases:

1. Samples, pictures of samples, films of samples, models substituting for samples with a customs value not exceeding 50,000 Vietnamese Dong or have been processed to be unsellable or unusable, only for samples.

2. Advertising prints under Chapter 49 of the List of Vietnam export-import goods, including: Leaflets, trade catalogues, directories, advertising materials, travel posters used to advertise, announce or advertise a good or service and provided free of charge are exempted from import tax as per Clause 10, Article 16 of the Law on Export and Import duty provided that each shipment consists of only 01 type of publication and total weight not over 01 kg; in case of a shipment with many types of publications, each type of publication has only one copy or total weight of publications not exceeding 01 kg.

3. Dossier and procedures for tax exemption are implemented according to the provisions of Article 31 of this Decree.

Thus, based on the above regulations, to be tax-exempt for films of samples, the customs value must not exceed 50,000 Vietnamese Dong or have been processed to be unsellable or unusable, only for samples.

What are the tax exemption procedures for importing films for sample purposes in Vietnam?

Based on Clause 3, Article 31 of Decree 134/2016/ND-CP referring to Article 31 Decree 134/2016/ND-CP (Amended by Point d Clause 20, Clause 14 Article 1 Decree 18/2021/ND-CP and contains provisions repealed by Point a Clause 2 Article 2 Decree 18/2021/ND-CP while Article 31a is added by Clause 15 Article 1 Decree 18/2021/ND-CP) the procedures for tax exemption for goods not intended for commercial purposes like films for sample purposes are as follows:

- The tax exemption dossier is the customs dossier according to provisions of the Customs Law and its guiding documents.

- In addition to the dossier provided for in Clause 1, Article 31 Decree 134/2016/ND-CP, depending on the case, the taxpayer shall submit one of the following documents:

+ Delegation contract in the case of entrusted export, import of goods: 01 copy

+ Supply contract based on winning bid documents or assigned tender documents, stating that the price does not include import tax in cases where organizations or individuals winning bids import goods: 01 copy

+ Supply contract of goods to organizations or individuals conducting petroleum activities, stating that the price does not include import tax in the case when organizations or individuals import goods for oil and gas activities: 01 copy

+ Financial lease contract in case the financial lease imports goods for tax-exempt beneficiaries, stating that the price does not include import tax: 01 copy

+ Goods transfer document for tax-exempt goods upon transferring to other tax-exempt entities, stating that the transfer price does not include import tax: 01 copy

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

+ List of tax-exempt items accepted by customs authorities for cases notifying the projected tax-exempt list by paper with a deduction tracking slip accepted by customs authorities: 01 copy, presenting the original for comparison.

In case of notifying the tax-exempt list through the Electronic Data Processing System, the taxpayer is not required to submit the tax-exempt list, the customs authority will utilize the tax-exempt list on the Electronic Data Processing System to execute the tax exemption as regulated.

+ Tax exemption decision of the Prime Minister of the Government of Vietnam for cases specified at Points a, b, đ Clause 1 Article 28 Decree 134/2016/ND-CP: 01 copy, presenting the original for comparison.