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

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

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

- Goods exported and imported through Vietnam’s border and border checkpoints.

- Goods exported from the domestic market into free trade zones; goods imported from free trade zones into the domestic market.

- Goods indirectly exported-imported; goods exported and imported by enterprises exercising their right to export, import, or distribute.

- The following goods do not incur export and import duties:

+ Goods in transit;

+ Goods that are humanitarian aid or grant aid;

+ Goods exported from a free trade zone to abroad; goods imported from abroad to a free trade zone and used within such free trade zone; goods transported from one free trade zone to another;

+ Amounts of petroleum used as severance tax paid to the State upon its exportation.

What are goods subject to export and import duties in Vietnam? (Image from the Internet)

Who pays the export and import duties in Vietnam?

Under Article 3 of the Law on Export and Import Duties 2016, those responsible for paying export and import duties in Vietnam include:

- Owners of exports and imports.

- Entrusted exporters and importers.

- People entering and leaving Vietnam carrying exports or imports, sending or receiving goods through Vietnam’s border and border checkpoints.

- Taxpayers’ guarantors and other entities authorized to pay tax on behalf of taxpayers, including:

+ Customs brokerage agents in case authorized by the taxpayer to pay export and import duties;

+ Providers of postal services or international express mail services paying tax on behalf of taxpayers;

+ Credit institutions or other organizations operating under the Law on credit institutions that provide guarantee or pay tax on behalf of taxpayers;

+ People authorized by goods owners in case goods are gifts of individuals; any luggage sent before or after its owner’s arrival or departure;

+ Any branch of an enterprise authorized to pay tax on its behalf;

+ Other people authorized to pay tax on behalf of taxpayers as prescribed by law.

- Any person who purchases or transports goods within the tax-free allowance applied to border residents which are sold domestically instead of being consumed or used for manufacture; foreign traders permitted to deal in exports and imports at bordering markets as prescribed by law.

- Owners of exports or imports that are initially tax-free but then taxed.

- Other cases prescribed by law.

What are the cases of refund of export and import duties in Vietnam?

Under Article 19 of the Law on Export and Import Duties 2016, cases of refund of export and import duties include:

- Tax refund cases:
+ Any taxpayer who has paid export duty or import duty but has no exports or imports, or the quantity of exports or imports is smaller than the quantity on which duty is paid;

+ Any taxpayer who has paid export duty but the exports has to be re-imported shall receive a refund of export duty and does not have to pay import duty;

+ Any taxpayer who has paid import duty but the imports has to be re-exported shall receive a refund of import duty and does not have to pay export duty;

+ Any taxpayer who has paid tax on goods imported to serve manufacture or business operation and they have been used for manufacture of exports and the products are already exported;

+ Any taxpayer who has paid tax on machinery, equipment, tools, vehicles of organizations and individuals that are permitted to be temporarily imported for re-export, except for those rented to execute investment projects, construction and installation, manufacture, when they are re-exported to abroad or exported to a free trade zone.

The amount of import duty refunded depends on the remaining value of goods when they are re-exported according to the period of time over which they are used or stay in Vietnam. If the goods are no longer usable, import duty shall not be refunded.

Tax shall not be refunded if the refundable amount is below the minimum level specified by the Government.

- Goods specified in tax refund cases must be unused and unprocessed.

Tax refund procedures are carried out according to legal regulations on tax management.

What are the cases of reduction of export and import duties in Vietnam?

According to Article 18 of the Law on Export and Import Duties 2016, exports and imports that are damaged or lost under customs supervision and the damage or loss is verified by a competent organization, tax reduction shall be granted.

The level of reduction shall be proportional to the loss of goods. Tax is exempt if the exports or imports are completely damaged or lost.

The procedures for tax reduction shall comply with regulations of law on tax administration.