Is the inbound passenger bringing 150 cigars exempt from import-export duties in Vietnam?

Are luggage within the tax-free allowance of inbound passengers exempt from import-export duties in Vietnam?

Based on Article 16 of the Law on Export and Import Duties 2016, which stipulates the cases of duty exemption as follows:

duty exemption

1. Exported and imported goods of foreign organizations and individuals that are entitled to privileges and immunities in Vietnam within limits in accordance with the international agreements which the Socialist Republic of Vietnam is a member of; goods within the duty-free luggage allowance of travelers upon exit or entry; goods imported for sale in duty-free shops.

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Thus, according to the aforementioned regulation, luggage within the tax-free allowance of inbound passengers will be exempt from import-export duties.

Is bringing 150 cigars exempt from import-export duties for inbound passengers?

Based on Article 6 of Decree 134/2016/ND-CP, which stipulates duty exemption for the luggage of inbound passengers and exiters as follows:

- inbound passengers carrying passports or passport substitute documents (except for laissez-passer used for exit and entry), issued by competent state authorities of Vietnam or other countries, with luggage carried by person, or sent before or after the trip, are exempt from import tax for each entry according to the following limits:

+ Liquor of 20 degrees or more: 1.5 liters or liquor under 20 degrees: 2.0 liters or alcoholic beverages, beer: 3.0 liters.

For liquor, if the entrant carries a bottle, jar, can (hereinafter referred to as a bottle) with a capacity greater than the prescribed limit but not exceeding 1 liter, the whole bottle is exempt from tax. In cases exceeding 1 liter, the excess part must be taxed according to the law;

+ Cigarettes: 200 sticks or tobacco: 250 grams or cigars: 20 sticks;

+ Personal items in quantities and varieties appropriate for the purpose of the trip;

+ Other items beyond the goods specified at points a, b, and c of this clause (not on the list of goods banned from import, temporarily suspended from import, or imported with conditions) with a total customs value not exceeding VND 10,000,000;

In cases exceeding the limits that require tax payment, the entrant may select items to be exempt from tax if the luggage includes multiple items.

- Pilots and crew members on international flights; train operators and staff on international trains; officers and crew members working on ships; drivers, and Vietnamese workers working in neighboring countries sharing land borders with Vietnam are not entitled to the tax-free luggage allowance specified at points a, b, and d of clause 1 of this Article for each entry but are entitled to duty exemption once every 90 days. The limits specified at point a, point b, clause 1 of this Article do not apply to persons under 18 years of age.

- Those exiting with a passport or passport substitute document issued by competent state authorities of Vietnam or other countries, with luggage carried by person, sent before or after the trip, not on the list of goods banned from export, temporarily suspended from export, or exported with conditions according to the law, are exempt from export taxes without limitation.

- Additionally, the duty exemption dossier is the customs dossier as prescribed by customs law, and duty exemption procedures are carried out according to Article 31 of Decree 134/2016/ND-CP.

Thus, according to the aforementioned regulation, an entrant carrying 150 cigars is not eligible for import-export duty exemption and may only carry up to 20 sticks.

Note: This does not apply to individuals under 18 years of age.

Is the inbound passenger bringing 150 cigars exempt from import-export duties in Vietnam? (Image from the Internet)

Vietnam: What does the import-export duty exemption dossier include?

The duty exemption dossier is the customs dossier as prescribed by customs law, and duty exemption procedures are carried out according to Article 31 of Decree 134/2016/ND-CP.

Referring to Article 31 of Decree 134/2016/ND-CP, depending on the case, taxpayers must additionally submit one of the following documents:

+ Commission contract in case of commissioned export or import: 01 copy

+ Goods supply contract according to bid acceptance or direct procurement decision clearly stating the supply price excluding import tax in case of an organization or individual winning a bid for importing goods: 01 copy

+ Goods supply contract for an organization or individual conducting petroleum activities with a clear statement that the supply price excludes import tax in case of importation for petroleum activities: 01 copy

+ Financial lease contract in case of financial leasing import for beneficiaries of duty exemption, clearly stating the supply price excludes import tax: 01 copy

+ Transfer document for goods exempted from tax to another tax-exempt entity, clearly stating the transfer price excludes import tax: 01 copy

+ Certification from the Ministry of Science and Technology for transportation means as per clause 11, clause 15, clause 16 Article 16 of the Law on Export and Import Duties 2016: 01 original;

+ duty exemption list received by customs authority for the projected duty exemption list notification via paper with Tracking Slip deducted already received by customs authority: 01 copy, present the original for comparison.

In cases of notifying the duty exemption list through the Electronic Data Processing System, taxpayers are not required to submit the duty exemption list; the customs authority uses the duty exemption list on the Electronic Data Processing System to execute duty exemption according to regulations.

+ duty exemption decision by the Prime Minister against the cases specified at points a, b, and dd of clause 1 Article 28 of Decree 134/2016/ND-CP: 01 copy, present the original for comparison.