Is the taxpayer for import and export duties the owner of the exports and imports in Vietnam?

Is the taxpayer for import and export duties the owner of the exports and imports in Vietnam?

Pursuant to Article 3 of the Law on Export and Import Duties 2016, taxpayers for import and export duties include:

- Owners of the exports and imports.

- Organizations receiving export or import entrustment.

- Individuals exiting or entering the country with exports and imports, sending or receiving goods through the Vietnam border or gateway.

- Persons authorized, guaranteed, and paying taxes on behalf of taxpayers, including:

+ Customs procedure agents in cases where they are authorized by the taxpayer to pay export or import duties;

+ Companies providing postal services, international express delivery in cases of tax payment on behalf of the taxpayer;

+ Credit institutions or other organizations operating under the Law on Credit Institutions in cases of guarantees, and tax payments on behalf of the taxpayer;

+ Persons authorized by the owner of goods in cases of gifts, donations from individuals; luggage sent before or after the trip of individuals exiting or entering;

+ Branches of enterprises authorized to pay taxes on behalf of the enterprise;

+ Others authorized to pay taxes on behalf of the taxpayer as prescribed by law.

- Buyers or transporters of goods within the tax-free allowance of border residents but do not use for production, consumption and are sold in the domestic market, and foreign traders authorized to conduct business of export or import goods at border markets under the law.

- Persons with exports and imports initially exempt from or not subject to tax but later subject to tax as prescribed by law.

- Other cases as prescribed by law.

Thus, the taxpayer for import and export duties is not only the owner of exports and imports but also includes other entities as defined above.

Is the taxpayer for import and export duties the owner of the exports and imports in Vietnam? (Image from Internet)

Which goods are subject to export and import duties in Vietnam?

According to Article 2 of the Law on Export and Import Duties 2016, goods subject to export and import duties include:

- Goods exported or imported through Vietnamese borders or border gates

- Goods exported from the domestic market to free trade zones, imported from free trade zones into the domestic market.

- Goods exported, imported on the spot and goods exported, imported by enterprises exercising export, import, and distribution rights.

Note: goods subject to export and import duties do not apply to the following cases:

- Goods in transit, transshipment, or transshipment;

- Humanitarian aid goods, non-refundable aid goods;

- Goods exported from a free trade zone to overseas; goods imported from overseas into a free trade zone and only used in a free trade zone; goods transferred from one free trade zone to another;

- Oil and gas used to pay resource tax to the State when exported.

What are cases eligible for export and import duty exemption in Vietnam?

Pursuant to Article 16 of the Law on Export and Import Duties 2016, cases eligible for export and import duty exemption include:

- Goods exported or imported by foreign organizations or individuals entitled to privileges and immunities in Vietnam within limits appropriate to international treaties to which the Socialist Republic of Vietnam is a member; goods in the duty-free luggage allowance of individuals exiting or entering; goods imported for sale at duty-free shops.

- Movable assets, gifts within foreign organizations' or individuals' quota for Vietnamese organizations or individuals and vice versa.

Movable assets, gifts that exceed duty-free limits must pay tax on the excess, except if the recipient is an agency or organization funded by the state budget and permitted by the competent authority to receive or for humanitarian or charitable purposes.

- Goods purchased, exchanged cross-border by border residents within the goods list and limits to serve production and consumption of border residents.

If goods purchased, transported within limits but not used for production or consumption by border residents and goods exported, imported by foreign traders allowed to do business at border markets, tax must be paid.

- Goods exempt from export and import duties under international treaties to which the Socialist Republic of Vietnam is a member.

- Goods with a value or import duty amount below a minimum level.

- Raw materials, supplies, components imported for processing export products; complete products imported to attach to processed products; processed export products.

Processed export products made from domestic raw materials or supplies subject to export duty shall not be exempt from duties on the value of the domestic raw materials or supplies contained in the export products.

Goods exported for processing and then imported are exempt from export and import duties calculated on the value of exported raw materials contained in processed products. For goods exported for processing and then imported that are natural resources, minerals, products whose total value of resources, minerals plus energy costs account for 51% or more of product cost, taxes are not exempt.

- Raw materials, supplies, components imported to produce export goods.

- Goods produced, processed, recycled, assembled in free trade zones that do not use imported raw materials or components from abroad when imported into the domestic market.

- Temporarily imported goods for re-export or temporarily exported goods for re-import within a certain period, including:

+ Temporarily imported goods for re-export, or temporarily exported goods for re-import to organize or participate in fairs, exhibitions, product introductions, sports, cultural, or artistic events or other events; machinery, equipment temporarily imported for re-export or temporarily exported for re-import for testing, research, and development purposes; machinery, equipment, professional tools temporarily imported for re-export or temporarily exported for re-import to serve work within a certain period or to serve processing for foreign traders, except for machinery, equipment, tools, means of transport of organizations, individuals who are allowed to temporarily import for re-export to implement investment projects, construction, installation work, serve production;

+ Machinery, equipment, components, spare parts temporarily imported for replacement, repair of overseas ships, aircraft or temporarily exported for replacement, repair of Vietnamese ships, aircraft abroad; temporarily imported goods for re-export to supply foreign ships, aircraft moored at Vietnamese ports;

+ Goods temporarily imported for re-export, temporarily exported for re-import for warranty, repair, replacement;

+ Circulating goods temporarily imported for re-export, temporarily exported for re-import for containing export, import goods;

+ Goods temporarily imported for re-export for business purposes within the temporary importation period (including the extension period) are credit guaranteed or have deposited an amount equivalent to the import duty on temporarily imported goods for re-export.

- Goods not for commercial purposes in the following cases: samples; photographs, films, models instead of samples; small quantity advertising prints.- Goods imported to create fixed assets of investment projects entitled to investment incentives under the law on investment, including:

+ Machinery, equipment; parts, details, detachable components, spare parts for assembling or using synchronously with machinery, equipment; raw materials, supplies used to manufacture machinery, equipment or to manufacture parts, details, components, spare parts of machinery, equipment;

+ Specialized transport vehicles on technology lines directly used for production activities of projects;

+ Construction materials not yet manufactured domestically.

The import duty exemption for imported goods as prescribed in this clause applies to both new investment projects and expanded investment projects.

- Seeds, breeds, fertilizers, pesticides not yet manufactured domestically, or necessary imports as prescribed by competent state management agencies.

- Raw materials, supplies, components not yet manufactured domestically imported for project production of sectors or locations eligible for special investment incentives or those with special socio-economic difficulties under the law on investment, high-tech enterprises, scientific and technological enterprises, and science and technology organizations are exempt from import duty for up to five years from the start of production.

The import duty exemption prescribed in this clause does not apply to mineral exploitation projects; projects producing products where the total value of resources, minerals, plus energy costs account for 51% or more of product cost; projects producing, trading in goods, services subject to special consumption tax.

- Raw materials, supplies, components not yet manufactured domestically imported for the production and assembly of medical devices prioritized for research and manufacture are exempt from import duty within five years from the start of production.

- Goods imported for oil and gas activities, including:

+ Machinery, equipment, spare parts, specialized transport vehicles necessary for oil and gas activities, including cases of temporary import for re-export;

+ Parts, details, detachable components, spare parts for assembling or using synchronously with machinery, equipment; raw materials, supplies used to manufacture machinery, equipment or to manufacture parts, details, components, spare parts of machinery, equipment necessary for oil and gas activities;

+ Supplies necessary for oil and gas activities not yet manufactured domestically.

- Projects, shipbuilding facilities on the list of preferential sectors under the law on investment are exempt from duty on:

+ Goods imported to create fixed assets of shipbuilding facilities, including: machinery, equipment; parts, details, detachable components, spare parts for assembling or using synchronously with machinery, equipment; raw materials, supplies used to manufacture machinery, equipment or to manufacture parts, details, components, spare parts of machinery, equipment; transportation means on technological lines serving directly for shipbuilding activities; construction materials not yet manufactured domestically;

+ Goods imported are machinery, equipment, raw materials, supplies, components, semi-finished products not yet manufactured domestically serving shipbuilding;

+ Exported marine vessels.

- Machinery, equipment, raw materials, supplies, components, parts, and spare parts imported for currency printing and minting.

- Goods imported are raw materials, supplies, components not yet manufactured domestically directly serving production activities of information technology products, digital content, and software.

- Exports and imports to protect the environment, including:

+ Machinery, equipment, means, tools, specialized supplies imported not yet manufactured domestically to collect, transport, treat, process wastewater, waste gases, observe and analyze environments, produce renewable energy; handle environmental pollution, respond to and handle environmental incidents;

+ Exported products manufactured from recycling and waste treatment activities.

- Goods imported are specialized for education not yet manufactured domestically.

- Goods imported are specialized machinery, equipment, spare parts, supplies not yet manufactured domestically, documents, scientific books specifically for scientific research, technology development, technology incubation, technology enterprises incubation, technology innovation.- Goods imported specially to serve security, defense, including specialized transportation vehicles not yet manufactured domestically.- exports and imports to ensure social security, address natural disasters, calamities, pandemics, and other special cases.