What are the definitions of export duty and import duty in Vietnam? What are the regulations on payers of export and import duties?

What are the definitions of export duty and import duty in Vietnam?

Currently, Vietnamese law does not specify the definitions of export duty and import duty. However, we can refer to Clauses 1, 2, and 3 of Article 2 of the Law on Export and Import Duties 2016 to understand that export or import duty includes two types: export duty and import duty.

- Export duty is levied on goods that the State wishes to limit exports.

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

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

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

Except for cases not subject to export duty.

(Clauses 1, 2, and 3 of Article 2 of the Law on Export and Import Duties 2016)

- Import duty is not yet defined or explained by law. Thus, import duty can be understood as a type of tax that a country or territory imposes on goods originating from abroad during the import process.

At the same time, goods subject to export or import duty are based on Article 2 of the Law on Export and Import Duties 2016:

-  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 goods not subject to export or import duty include:

+  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.

- The Government of Vietnam details this Article.

What are the definitions of export duty and import duty in Vietnam? What are the regulations on payers of export and import duties? (Image from the Internet)

Are customs brokerage agents in Vietnam payers of export and import duties in Vietnam?

Under Clause 4 Article 3 of the Law on Export and Import Duties 2016, the taxpayer is defined as follows:

 Taxpayers

1. Owners of exports and imports.

2. Entrusted exporters and importers.

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

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

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

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

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

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

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

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

5. 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.

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

7. Other cases prescribed by law.

Thus, under the above regulation, customs brokerage agents in Vietnam are payers of export and import duties in Vietnam.

What are the regulations on calculating the export or import duty on goods according to % in Vietnam?

Under Article 5 of the Law on Export and Import Duties 2016, export or import duty on taxable goods based on a percentage rate is determined as follows:

- The amount of export or import duty is determined according to the taxable value and duty rate (%) of each article at the time of tax calculation.

- Export duty rate of each article is specified in the export duty schedule.

Where goods are exported to a country or group of countries or territories having an agreement on concessional export duties with Vietnam, such agreement shall apply.

- Import duty rates include preferential rates, special preferential rates, and ordinary rates as follows:

+ Preferential rates apply to imports originated in any country or group of countries or territories that accord Vietnam most-favored nation treatment; goods that are imported from a free trade zone to the domestic market and originating in a country or group of countries or territories that accord Vietnam most-favored nation treatment;

+ Special preferential rates apply to imports originated in any country or group of countries or territories that have an agreement on special preferential import duties with Vietnam; goods that are imported from a free trade zone to the domestic market and originating in a country or group of countries or territories that have an agreement on special preferential import duties with Vietnam;

+ Ordinary rates apply to imports other than those mentioned in Point a and Point b of this Clause. The ordinary rate is 150% of the preferential rate applied to the corresponding article. In case preferential rate is 0%, the Prime Minister shall decide the application of ordinary rate pursuant to Article 10 of the Law on Export and Import Duties 2016.