Is there an exemption of duties on imports serving ship building and sea-going vessels for export in Vietnam?

Is there an exemption of duties on imports serving ship building and sea-going vessels for export in Vietnam?

Based on Article 17 of Decree 134/2016/ND-CP which stipulates the exemption of duties on imports serving the operation of ship building and sea-going vessels for export as follows:

Exemption of duties on imports serving ship building and sea-going vessels for export

1. Projects and shipyards listed among preferential industries and trades according to the law on investment are exempt from import and export dutyes as stipulated in Clause 16, Article 16 of the Law on Export and Import Taxes.

2. Criteria to determine means of transport within the technological chain directly serving shipbuilding activities are defined by the Ministry of Science and Technology.

3. Criteria to determine goods that are domestically unavailable are defined by the Ministry of Planning and Investment.

In which, Clause 16, Article 16 of the Law on Export and Import Taxes 2016 stipulates as follows:

Tax Exemption

...

16. Projects and shipyards listed among preferential industries and trades according to the law on investment are exempt from tax for:

a) Imported goods for the creation of fixed assets for shipyards, including: machinery, equipment; components, details, parts, spare parts for synchronous assembly or use with machinery and equipment; raw materials, supplies used to manufacture machinery and equipment or components, details, parts, spare parts of machinery and equipment; means of transport within the technological chain directly serving shipbuilding activities; construction materials that are not available domestically;

b) Imported goods such as machinery, equipment, raw materials, supplies, components, semi-finished products that are not domestically produced, used in shipbuilding;

Therefore, imported components serving the operation of ship building and sea-going vessels for export are subject to import duty exemption according to the tax law.

Is there an exemption of duties on imports serving ship building and sea-going vessels for export in Vietnam? (Image from the Internet)

Which entities are import duty payers in Vietnam?

According to Article 3 of the Law on Export and Import Taxes 2016, import duty payers include:

- Owners of imported goods.

- Organizations entrusted with import.

- Individuals exiting or entering with imported goods, sending or receiving goods through border gates and borders of Vietnam.

- Authorized persons, guarantors, and those paying taxes on behalf of tax payers, including:

+ Customs agents in cases authorized by tax payers to pay import taxes;

+ Enterprises providing postal services, international express mail services in cases of paying taxes on behalf of tax payers;

+ Credit institutions or other organizations operating according to the Law on Credit Institutions in cases of guaranteeing and paying taxes on behalf of tax payers;

+ Authorized persons of goods owners in cases goods are gifts, donations from individuals; luggage sent before or after trips of exiting or entering individuals;

+ Branch offices of enterprises authorized to pay taxes on behalf of enterprises;

+ Other persons authorized to pay taxes on behalf of tax payers as stipulated by law.

- Individuals purchasing, transporting goods within the tax exemption limit of border residents but not used for production or consumption and selling in the domestic market, and foreign traders allowed to trade imported goods at border markets according to legal regulations.

- Individuals with imported goods that are subject to tax exemption but then changed and thus fall under taxable categories according to legal regulations.

- Other cases as stipulated by law.

What documents are included in the dossier for import-export duty exemption in Vietnam?

Based on Clause 6, Article 5 of Decree 134/2016/ND-CP amended by Clause 2, Article 1 of Decree 18/2021/ND-CP, the dossier for import-export duty exemption includes the following documents:

- Customs dossier according to customs law, except in the case of purchasing duty-free goods at duty-free shops;

- Tax exemption declaration according to Clause 8, Article 5 of Decree 134/2016/ND-CP: 01 photocopy, except in case the tax exemption declaration has been updated in the National Single Window;

- Documents proving that goods have been re-exported, destroyed, or transferred for cases stipulated in Clause 5, Article 5 of Decree 134/2016/ND-CP: 01 photocopy;

- Confirmation from the Ministry of Foreign Affairs for cases of importing goods as stipulated in Clauses 2 and 3, Article 5 of Decree 134/2016/ND-CP: 01 photocopy;

- Decision on tax exemption by the Prime Minister of Vietnam for cases of importing goods as stipulated in Clause 4, Article 5 of Decree 134/2016/ND-CP: 01 photocopy.