What are 03 methods for calculating import and export duties in Vietnam?

What are 03 methods for calculating import and export duties in Vietnam?

Based on Article 4 of the Law on export and import duties 2016, it is stipulated as follows:

Definition of Terms

In this Law, the following terms are understood as follows:

...

2. The mixed tax calculation method is the simultaneous application of both percentage-based and absolute tax calculation methods.

3. The percentage-based tax calculation method is the determination of duties based on a percentage (%) of the taxable value of exported or imported goods.

4. The absolute tax calculation method is the determination of a specific amount of tax on a unit of exported or imported goods.

5. Anti-dumping tax is an additional import tax applied when imported dumped goods into Vietnam cause or threaten to cause significant damage to domestic production or hinder the establishment of domestic production.

6. Countervailing tax is an additional import tax applied when subsidized imports into Vietnam cause or threaten to cause significant damage to domestic production or hinder the establishment of domestic production.

7. Safeguard tax is an additional import tax applied when excessive imports into Vietnam cause serious damage or threaten to cause serious damage to domestic production or hinder the establishment of domestic production.

Thus, according to the above regulations, there are three methods for calculating import and export duties according to legal regulations as follows:

[1] The mixed tax calculation method is the simultaneous application of both percentage-based and absolute tax calculation methods.

[2] The percentage-based tax calculation method is the determination of duties based on a percentage (%) of the taxable value of exported or imported goods.

[3] The absolute tax calculation method is the determination of a specific amount of tax on a unit of exported or imported goods.

Shall a postal service provider pay import/export duties on behalf of the taxpayer in Vietnam?

Based on Article 3 of the Law on export and import duties 2016, it is stipulated as follows:

Taxpayers

1. Owners of exported or imported goods.

2. Organizations entrusted with import or export.

3. Persons exiting or entering the country with exported or imported goods, sending or receiving goods through Vietnam's ports, borders.

4. Persons authorized, guaranteed, and paying duties on behalf of taxpayers, including:

a) Customs procedure agents in cases where authorized by taxpayers to pay export and import duties;

b) Enterprises providing postal services, international express delivery services in cases where they pay duties on behalf of the taxpayers;

c) Credit institutions or other organizations operating under the law on credit institutions in cases where they guarantee and pay duties on behalf of taxpayers;

d) Persons authorized by the owner of goods in cases where goods are gifts from individuals; luggage sent before or after the trip of persons exiting or entering;

dd) Branches of businesses authorized to pay duties on behalf of the business;

e) Other persons authorized to pay duties on behalf of taxpayers according to legal regulations.

5. Persons purchasing, transporting goods within the tax-exempt limits of border residents but not using them for production, consumption and selling at domestic markets and foreign traders allowed to trade exported and imported goods at border markets according to legal regulations.

6. Persons with exported or imported goods subject to tax exemption but subsequently changed to taxable items according to legal provisions.

7. Other cases according to legal regulations.

Thus, per the above regulations, a postal service provider can pay import and export duties on behalf of the taxpayer when authorized by the taxpayer.

What are 03 methods for calculating import and export duties in Vietnam? (Image from the Internet)

Shall import/export duty be paid before clearance in Vietnam?

Based on Article 9 of the Law on export and import duties 2016, it is stipulated as follows:

Tax Payment Deadline

1. Exported or imported goods subject to duties must pay duties before customs clearance or the release of goods according to the Customs Law, except in cases specified in Clause 2, Article 9 of the Law on export and import duties 2016.

In cases where the duties are guaranteed by a credit institution, customs clearance or release of goods is allowed but a late payment fee must be applied according to the Tax Management Law from the date of customs clearance or release until the tax payment date. The maximum guarantee period is 30 days from the date of registration of the customs declaration.

In cases where the duties are guaranteed by a credit institution, but the time limit for guarantee has expired and the taxpayer has not paid the tax and late payment fee, the guarantor must fulfill the tax and late payment obligations on behalf of the taxpayer.

2. Taxpayers granted preferred policies according to the Customs Law shall file duties for cleared or released customs declarations for the month no later than the tenth day of the following month. After this deadline, if the taxpayer has not paid duties, they must pay the full amount of overdue duties and late payment fees as stipulated by the Tax Management Law.

Thus, goods liable to import and export tax must pay tax before clearance except in the following case:

Taxpayers granted preferred policies according to the Customs Law shall file duties for cleared or released customs declarations for the month no later than the tenth day of the following month.