What are the forms of export and import duty payment guarantee in Vietnam?

What are the forms of export and import duty payment guarantee in Vietnam?

According to Clause 2, Article 4 of Decree 134/2016/ND-CP, the export and import duty payment guarantee is either a separate or joint guarantee.

- Separate guarantee means guarantee of full payment of duty on an export/import declaration offered by a credit institution which operates under the Law on credit institutions;

- Joint guarantee means guarantee of full payment of duty on more than one export/import declaration opened at one or more Sub-department of Customs offered by a credit institution which operates under the Law on credit institutions; Guaranteed amount of duty under a joint guarantee shall vary according to the amount of paid duty;

- Where a credit institution (the guarantor) offers a separate guarantee or joint guarantee but the taxpayer has failed to pay duty and late payment interest (if any), the credit institution shall fully pay the duty and late payment interest owed by the taxpayer according to information on the customs information processing system or notification given by the customs authority;

- Contents of a guarantee letter, submission, verification, monitoring and processing of guarantee letters shall comply with tax administration laws.

What are the forms of export and import duty payment guarantee in Vietnam? (Image from the Internet)

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

Under Article 18 of the Law on Export and Import Duties 2016, the tax reduction is regulated as follows:

Tax reduction

1. If 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.

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

Additionally, under Clause 1, Article 32 of Decree 134/2016/ND-CP:

Export and import duty reduction

1. Duties on exports and imports under customs supervision specified in the Law on Customs 2014 and its instructional documents shall be reduced if the goods are damaged or lost because of inevitable causes as prescribed in Clause 1 Article 18 of the Law on Export and import duties.

Thus, if exports and imports 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.

What does the application for the reduction of import and export duties in Vietnam include?

According to Clause 2, Article 32 of Decree 134/2016/ND-CP, amended by Clause 16, Article 1 of Decree 18/2021/ND-CP, and point d, clause 20, Article 1, Decree 18/2021/ND-CP, the application for the reduction of import and export duties in Vietnam includes:

- An official dispatch requesting tax reduction submitted by the taxpayer through the electronic data processing system of the customs authority according to the information criteria in Form No. 3 Appendix 7a or an official letter proposing tax reduction according to Form No. 08 in Appendix 7 issued with Decree 18/2021/ND-CP: 01 original copy;

- The insurance contract or insurance payout notice issued by the insurer (if any), or the insurer’s confirmation if the insurance contract does not cover tax indemnification; the contract or agreement on compensation issued by the shipping company in case the damage is caused by the shipping company (if any): 01 photocopy;

- A confirmation of damage issued by a local authority e.g. confirmation of conflagration issued by the local fire department, confirmation issued by one of the following bodies: police authority of the commune, the People’s Committee of the commune; management board of the industrial zone, export processing zone or economic zone; border checkpoint management board; port authority, airport authority where the force majeure event (natural disaster, epidemic, accident) occurs and causes damage to the imported materials or equipment: 01 original copy.

- Confirmation of loss or damage of goods issued by an assessment service provider: 01 original copy.