What are cases in which customs duties are incurred in Vietnam?

What are cases in which customs duties are incurred in Vietnam?

According to Clause 1, Article 30 of Decree 46/2020/ND-CP, customs duty arises in the following two cases:

[1] Goods that are illegally moved out of the transit procedure through the ACTS System as stipulated in Clause 15, Article 3 of Decree 46/2020/ND-CP, or within 30 days, the departure customs authority has not received the documents from the customs declarant or other customs authorities involved in the transit journey, demonstrating that transit procedures have been completed through the ACTS System as stipulated in Clause 2, Article 14 of Decree 46/2020/ND-CP;

[2] Transit goods that are diverted to domestic consumption or whose quantity, value, origin, or commodity code differs from the declaration and other cases that generate payable tax amounts.

- Additionally, the location where the customs duty arises is the place where the transit goods are illegally moved, domestically consumed, or where there is a change in quantity, value, origin, or commodity code leading to the generation of customs duty.

In cases where the specific location cannot be determined, the place where the customs duty arises is where the customs authority or competent authority discovers the transit goods being illegally moved, consumed domestically, or where there is a change in quantity, value, origin, or commodity code that leads to the generation of customs duty.

- The parties responsible for paying the arising customs duty include:

+ The customs declarant, who is primarily responsible for the arising customs duty during the transit of goods;

+ The guarantor, who is responsible for paying all or part of the arising customs duty if the customs declarant does not fulfill or only partially fulfills the obligation to pay customs duty;

+ The individual who moves or participates in the illegal movement of goods out of the transit procedure through the ACTS System is responsible for paying the customs debt equivalent to the quantity of illegally moved goods. Payment of customs duty is carried out under the provisions of Clause 8, Article 24 of Decree 46/2020/ND-CP.

The owner or holder of goods illegally moved out of the transit procedure through the ACTS System is responsible for paying the customs debt equivalent to the amount of goods possessed or held due to illegal movement. Payment of customs duty is carried out under the provisions of Clause 8, Article 24 of Decree 46/2020/ND-CP.

When is the time for customs duty calculation in Vietnam?

According to Clause 2, Article 8 of the Law on Export and Import Duties 2016:

Value for Tax Calculation, Point of Tax Calculation

...

2. The point of export and import duty calculation is the time of customs declaration registration.

For goods that are subject to non-taxation, export duty exemption, import duty exemption, or applying the rate, specific duties within the tariff quota yet undergo changes regarding the non-taxation, duty exemption, rate application, specific duty within the tariff quota according to law, the point of tax calculation is the time of new customs declaration registration.

The time of customs declaration registration is carried out according to the customs law.

Therefore, the time of customs duty calculation is the time of customs declaration registration.

*Note: For export and import goods that are subject to non-taxation, export duty exemption, import duty exemption, or applying the rate, specific duties within the tariff quota yet undergo changes regarding the non-taxation, duty exemption, rate application, specific duty within the tariff quota according to law, the point of tax calculation is the time of new customs declaration registration.

The time of customs declaration registration is carried out according to the customs law.

What are cases in which customs duties are incurred in Vietnam? (Image from the Internet)

What are regulations on assistance in recovery of customs debts in Vietnam?

According to Clause 2, Article 31 of Decree 46/2020/ND-CP, regulations on the collection and assistance in recovery customs debt are as follows:

- Collection of customs debt:

+ In cases where payable tax amounts arise under Clause 1, Article 30 of Decree 46/2020/ND-CP, the customs authority recalculates the payable customs duty according to current regulations;

+ The collection of customs debt is carried out under the provisions of Clauses 7 and 8, Article 24, Clauses 2, 3, and 4 of Article 31 of Decree 46/2020/ND-CP and tax law.

- Assistance in recovery customs debt:

+ In cases where customs duty has not been fully collected or only partially collected, the customs authority of the country where customs duty arises requests the customs authority of countries participating in the transit journey to support the collection of customs debt;

+ Where the person in transit chooses the form of deposit, upon receiving the request from the customs authority where customs duty arises, the customs authority of the departure country is responsible for transferring the deposited amount by the customs declarant to the customs authority where customs duty arises.

- Forms of assistance in recovery customs debt:

assistance in recovery customs debt is carried out in written form or through electronic systems.

Upon a request for support in collecting customs debt, the requesting customs authority must provide the requested customs authority with at least the following information:

+ Name and code of the customs declarant;

+ Transit declaration number, registration date;

+ GRN number;

+ Credit institution or foreign bank branch issuing the guarantee;

+ Amount and reason for the arising customs duty;

+ Other necessary information (if needed).

The provision and confidentiality of information are carried out under the Law on Tax Administration and related legal regulations.

- Time Limit for Processing Requests for assistance in recovery customs debt:

Within 60 days from the date of receiving the support request, the requested customs authority must notify the requesting customs authority of the following information:

+ Activities undertaken to collect customs debt and the results of collection (if any);

+ Reasons for the inability to collect, partial collection, or refusal to support the collection of customs debt.

- Suspension of assistance in recovery customs debt:

If the customs declarant provides documents or materials verified by a competent authority proving that the customs debt is under consideration in the country where the debt arises, the requested customs authority must temporarily suspend collection activities and notify the requesting customs authority in writing.