What are the cases of exemption of duties on goods imported for non-trading purposes in Vietnam?

What are the cases of exemption of duties on goods imported for non-trading purposes in Vietnam?

Under Article 27 of Decree 134/2016/ND-CP, goods imported for non-trading purposes in Vietnam are exempt from import duty in the following cases:

- Samples, pictures of samples, videos of samples, models as substitutes for samples whose customs value does not exceed VND 50,000 or that have been modified in a way that they are no longer tradable or usable and can only be used as samples.

- Printed advertisements specified in Chapter 49 of Vietnam’s List of exported or imported goods: fliers, commercial catalogues, annual publications, advertisement documents, tourism posters that are used for advertising, announcing or advertising goods or services and provided free of charge shall be exempt from import duties as prescribed in Clause 10 Article 16 of the Law on Export and Import Duties 2016, provided each shipment only consists of 01 type of printed documents and the total weight of which does not exceed 01 kg. If a shipment consists of more than one type of printed documents, only one copy of a type is permitted or their total weight must not exceed 01 kg.

What are the cases of exemption of duties on goods imported for non-trading purposes in Vietnam? (Image from Internet)

What does the application for exemption of duties on goods imported for non-trading purposes in Vietnam include?

According to the guidance in Official Dispatch 12166/BTC-TCHQ in 2016, the application for exemption of duties on goods imported for non-trading purposes in Vietnam shall follow the current regulations for cases not required to register a list of duty-free goods at Circular 38/2015/TT-BTC.

According to Clause 1, Article 105 of Circular 38/2015/TT-BTC, the application for duty exemption is defined as follows:

Documents and procedures for tax exemption

1. The customs dossier specified in this Circular shall be tax exemption documents.

In case the taxpayer faces objective difficulties and other cases in which export duty, import duty is exempt prescribed by the Government, import duty is exempt, it is required to have written confirmation of the difficulties provided by a competent authorities.

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Thus, the application for exemption of duties on goods imported for non-trading purposes in Vietnam is the customs dossier.

According to Clause 1, Article 24 of Customs Law 2014, the customs dossier is also the tax exemption dossier for goods not intended for commercial purposes. The dossier includes:

- A customs declaration or documentary evidence in substitution;

- Relevant documentary evidence.

As the cases maybe, a customs declarant shall submit a sale contract, commercial invoice, bill of lading, certificate of origin of goods, import or export permit, notice of specialized inspection results or exemption from specialized inspection, and documentary evidence related to goods as prescribed by corresponding regulations of law.

What are the procedures for exemption of duties on goods imported for non-trading purposes in Vietnam?

According to the guidance in Official Dispatch 12166/BTC-TCHQ in 2016, the procedures for exemption of duties on goods imported for non-trading purposes in Vietnam are conducted according to the current regulations for cases not required to register a list of duty-free goods at Circular 38/2015/TT-BTC.

According to Point a, Clause 2, Article 105 of Circular 38/2015/TT-BTC, the procedures for exemption of duties on goods imported for non-trading purposes in Vietnam are as follows:

+ The taxpayer shall calculate and declare the amount of exempt tax on each article (except for goods imported for processing). The customs declaration is similar to the case in which tax has to be paid. The customs authority shall compare the tax exemption documents and the amount of tax to be exempt with applicable regulations to carry out procedures for granting exemption to each of the customs declaration as prescribed.

If the customs authority determines that exports or imports are not eligible for tax exemption as declared, tax shall be collected and penalties shall be imposed (if any);

+ In case the taxpayer faces objective difficulties and other cases in which export duty, import duty is exempt prescribed by the Government:

++ The taxpayer shall determine the amount of exempt tax and submit a written request (enclosed with relevant documents) to the General Department of Customs (the General Department of Customs shall send a report to the Ministry of Finance, and the Ministry of Finance shall request the Prime Minister to consider granting tax exemption);

++ The General Department of Customs shall check all documents. If documents are not satisfactory or the reasons for tax exemption must be clarified, the taxpayer shall be notified in writing. After the basis is ample, the General Department of Customs shall send a draft report to the Ministry of Finance, which is then submitted to the Prime Minister;

++ According to the directive of the Prime Minister, the Ministry of Finance shall send a notification to taxpayer and relevant customs authority;

++ The customs authority where procedures for export/import of goods are followed shall grant exemption of export duty/import duty on the corresponding quantity of goods or collect tax in full as directed by the Prime Minister.