What are regulations on duty exemption for export and import for goods traded among border residents in Vietnam?

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

Based on Article 2 of the Law on Export and import duties 2016, the subjects to import and export duty include:

- Goods exported or imported through Vietnam's border gates and borders.

- Goods exported from the domestic market to non-tariff zones and goods imported from non-tariff zones into the domestic market.

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

- Subjects to import and export duty do not apply to the following cases:

+ Goods in transit, transshipment, and transference;
+ Humanitarian aid, non-refundable aid goods;
+ Goods exported from non-tariff zones to foreign countries; goods imported from foreign countries into non-tariff zones and only used within non-tariff zones; goods transferred from one non-tariff zone to another;
+ Petroleum used to pay resource duty to the State upon export.

What are regulations on duty exemption for export and import for goods traded among border residents in Vietnam? (Image from the Internet)

What are regulations on duty exemption for export and import for goods traded among border residents in Vietnam?

Based on Article 9 of the Decree 134/2016/ND-CP, duty exemption for goods traded among border residents is regulated as follows:

- Goods traded among border residents belong to the list of goods for the production and consumption of border residents announced by the Ministry of Industry and Trade within the limits specified in Appendix 5 of the Decree 134/2016/ND-CP are exempt from duty as prescribed in clause 3, Article 16 of the Law on Export and import duties 2016.

In case of purchasing and transporting goods within the limits but not for the production and consumption of border residents, customs declaration and duty payment are required as prescribed.

- Goods exported and imported by traders from countries sharing a common border allowed to do business at border markets must pay export and import dutyes as prescribed.

What are cases are of duty exemption for export and import for goods traded among border residents in Vietnam?

Based on Article 16 of the Law on Export and import duties 2016, the cases exempt from export and import duty include:

- Goods exported and imported by foreign organizations and individuals entitled to preferential treatment and immunity in Vietnam within the limits suitable to international treaties to which the Socialist Republic of Vietnam is a member; goods within the duty-free luggage standards of outbound and inbound passengers; goods imported for sale at duty-free stores.

- Movable assets, gifts, and presents within the limits from foreign organizations and individuals to Vietnamese organizations and individuals or vice versa.

Movable assets, gifts, and presents exceeding the duty-free value must pay duty on the exceeding part, except for cases where the recipient is a state-funded agency or organization permitted by a competent authority to receive or is for humanitarian or charity purposes.

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

- Goods with a value or duty amount below the minimum threshold.

- Imported raw materials, supplies, and components for producing export goods; complete products imported for incorporation into processed products; processed export products.

Processed export products made from domestic raw materials and supplies subjected to export duty are not exempt from duty on the corresponding value of domestic raw materials and supplies in the export product.

Goods exported for processing and then imported are exempt from export and import dutyes on the value of exported materials constituting the processed product. Goods exported for processing and then imported are not exempt from duty if they are resources, minerals, or products with a total value of resources, minerals, and energy costs accounting for 51% or more of the product's cost.

- Imported raw materials, supplies, and components for producing export goods.

- Goods produced, processed, recycled, assembled in non-tariff zones without using imported raw materials from foreign countries 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 and re-exported or temporarily exported and re-imported goods for organizing or participating in fairs, exhibitions, product introductions, sports, cultural, art events, or other events; machinery, equipment temporarily imported and re-exported for testing, product development; machinery, equipment, professional tools temporarily imported and re-exported or temporarily exported and re-imported to serve specific tasks or to process for foreign traders, except for machinery, equipment, tools, means of transport temporarily imported and re-exported to implement investment projects, construction, installation works, and production activities;
+ Temporarily imported and re-exported or temporarily exported and re-imported machines, equipment, components, spare parts for replacing or repairing foreign ships or aircraft, or temporarily exported and re-imported machines, equipment for replacing or repairing Vietnamese ships or aircraft abroad; temporarily imported and re-exported goods for supplying foreign ships or aircraft docked at Vietnamese ports;
+ Temporarily imported and re-exported or temporarily exported and re-imported goods for warranty, repair, replacement;
+ Returnable packaging temporarily imported and re-exported or temporarily exported and re-imported for containing export or import goods;
+ Temporarily imported and re-exported or temporarily exported and re-imported trading goods within the specific period (including extended time) financially guaranteed or having deposited an equivalent amount to the import duty of the temporarily imported and re-exported goods.

- Non-commercial goods as follows: samples; images, films, models instead of samples; small quantity advertising publications.

- Imported goods to create fixed assets of entities eligible for investment incentives according to the law on investment, including:

+ Machinery, equipment; components, details, detachable parts, spare parts for assembly in sync or used synchronously with machinery and equipment; raw materials, supplies for manufacturing machinery and equipment or for manufacturing components, details, detachable parts, spare parts of machinery and equipment;
+ Special purpose vehicles in the production line directly used for the project's production activities;
+ Construction materials not produced domestically.

Duty exemption for imported goods according to this clause applies to both new and expanded investment projects.

- Plant varieties; animal breeds; fertilizers, plant protection drugs not produced domestically, needing importation according to regulations of the competent state management agency.

- Raw materials, supplies, components not domestically produced for production projects in sectors, special investment incentive areas, or areas with especially difficult socio-economic conditions according to the law on investment, high-tech enterprises, science and technology enterprises, science and technology organizations exempted from import duty for 05 years from the start of production.

Duty exemption under this clause does not apply to projects exploiting minerals; projects producing products whose total value of resources, minerals, and energy costs account for 51% or more of the product cost; projects producing, trading in goods and services subject to special consumption duty.

- Raw materials, supplies, components not produced domestically of investment projects for producing, assembling medical equipment prioritized for research, and manufacturing exempted from import duty for 05 years from the start of production.

- Imported goods serving petroleum activities, including:

+ Machinery, equipment, spare parts, special transport vehicles necessary for petroleum activities, including temporary import and re-export cases;
+ Components, details, detachable parts, spare parts for simultaneous assembly or use with machinery, equipment; raw materials, supplies for manufacturing machinery and equipment or for manufacturing components, details, detachable parts, spare parts of machinery and equipment necessary for petroleum activities;
+ Supplies necessary for petroleum activities not produced domestically.

- Projects, shipbuilding facilities in the list of preferential sectors and occupations under the law on investment exempted from duty on:

+ Imported goods to create fixed assets of shipbuilding facilities, including: machinery, equipment; components, details, detachable parts, spare parts for simultaneous assembly or use with machinery and equipment; raw materials, supplies for manufacturing machinery and equipment or for manufacturing components, details, detachable parts, spare parts of machinery and equipment;

Special-purpose vehicles in the production line directly used for shipbuilding activities; construction materials not produced domestically;

+ Imported goods are machinery, equipment, raw materials, supplies, components, semi-finished products not produced domestically for shipbuilding activities;
+ Exported ships.

- Imported machinery, equipment, raw materials, supplies, components, parts, spare parts serving money printing and minting operations.

- Imported goods are raw materials, supplies, components not produced domestically directly used for producing information technology products, digital content, and software.

- Exported and imported goods to protect the environment, including:

+ Machinery, equipment, vehicles, tools, supplies specially used domestically and not produced for collecting, transporting, processing, treating wastewater, waste, and air; monitoring and analyzing the environment; renewable energy production; pollution treatment, responding, handling environmental incidents;
+ Exported products from waste recycling, treatment activities.

- Special-use imported goods not domestically produced directly serving education.

- Imported goods are special-use machinery, equipment, parts, supplies domestically not produced, documents, scientific periodicals directly used for research, technology development, technology incubation, business incubation in high-tech and technology sectors, technological renewal.

- Special-use imported goods directly serving security and national defense, including special-purpose vehicles not domestically produced.

- Exported and imported goods to ensure social security, overcome consequences of natural disasters, disasters, epidemics, and other special cases.