What are the cases of enforcement by suspension of customs procedures for exports and imports in Vietnam?

What are the cases of enforcement by suspension of customs procedures for exports and imports in Vietnam?

Under Clause 1, Article 33 of Decree 126/2020/ND-CP, the enforcement by suspension of customs procedures for exports and imports shall be applied in the following cases:

- This enforcement measure will be implemented when the enforcement measures specified in Point a and Point b Clause 1 Article 125 of the Law on Tax Administration 2019 cannot be implemented; or

- Tax is not fully collected after these measures are implemented; or

- Cases specified in Clause 3, Article 125 of the Law on Tax Administration 2019 or at the request of the tax authority.

What are the cases of enforcement by suspension of customs procedures for exports and imports in Vietnam? (Image from Internet)

What are the regulations on documentation, procedures, and power for resumption of customs procedures in Vietnam?

According to Clause 6, Article 33 of Decree 126/2020/ND-CP, the documentation, procedures, and power for resumption of customs procedures in Vietnam are specified as follows:

Step 1: The taxpayer shall submit a written request for resumption of customs procedures to the Customs Department to which tax is owed together with the guarantee letter of the credit institution.

Step 2: The Customs Department shall verify the accuracy and adequacy of the documents and send a proposal to General Department of Customs within 05 working days from the day on which adequate documents are received.

If the documents are not adequate, the customs authority shall, within 03 working days from the day on which the documents are received, request the taxpayer to provide supplementary documents.

Step 3: Pursuant to regulations of Clause 5 of this Article and in consideration of opinions of relevant units (if any), General Department of Customs shall submit a report to the Ministry of Finance within 07 working days from the day on which adequate documents are received.

Step 4: The Ministry of Finance shall consider permitting the resumption of customs procedures on a case-by-case basis and notify General Department of Customs within 05 working days from the day on which the report is received.

Step 5: The enforcing customs authority shall resume customs procedures if permitted in writing by the Ministry of Finance.

If the taxpayer fails to fulfill tax obligations after customs procedures are resumed, penalties shall be imposed against the taxpayer.

* The decision on resumption of customs procedures shall be prepared according to Form No. 03-1/CC in Appendix III issued with Decree 126/2020/ND-CP.

What are the regulations on the power to decide on enforcement by suspension of customs procedures for exports and imports in Vietnam?

According to Clause 1, Article 126 of the Law on Tax Administration 2019, the power to decide tax enforcement is as follows:

Power to decide tax enforcement

1. Heads of tax authorities, the Director of the Smuggling Investigation and Prevention Department of the General Department of Customs, the Director of the Post-clearance Inspection Department have the power to implement the tax enforcement measures specified in Points a, b, c, d, dd and e in Clause 1 Article 125 of this Law.

2. The revocation of the certificate of business registration, certificate of enterprise registration, cooperative registration certificate, investigation registration certificate, license for establishment and operation, practice certificate mentioned in Point g Clause 1 Article 125 of this Law shall be carried out in accordance with regulations of law.

Thus, the Heads of tax authorities, the Director of the Smuggling Investigation and Prevention Department of the General Department of Customs, and the Director of the Post-clearance Inspection Department shall decide on enforcement by suspension of customs procedures for exports and imports in Vietnam.

What are the contents of the decision on enforcement by suspension of customs procedures for exports and imports in Vietnam?

According to Clause 1, Article 127 of the Law on Tax Administration 2019, the main contents of the decision include:

- Date of issuance;

- Basis of the decision;

- The decider;

- The taxpayer’s name, address, TIN;

- Reason for enforcement;

- The enforcement measures;

- Time and location of enforcement;

- The presiding authority and cooperating authority(ies).