What are the legislative documents on the elaboration of the Law on Export and Import Duties in Vietnam?

What is the applicable Law on Export and Import Duties in Vietnam?

The latest Law on Export and Import Duties is the Law on Export and Import Duties 2016.

The Law on Export and Import Duties 2016 provides for taxed goods, taxpayers, basis for tax calculation, time for tax calculation, tariff schedules, anti-dumping duty, countervailing duty, safeguard duty imposed upon exports and imports; tax exemption, tax reduction, refund of export and import duties.

What are the legislative documents on the elaboration of the Law on Export and Import Duties in Vietnam?

The legislative documents on the elaboration of the Law on Export and Import Duties in Vietnam include:

- Official Dispatch 12167/BTC-TCHQ in 2016 implementing the provisions of the Law on Export and Import Duties.

- Official Dispatch 12166/BTC-TCHQ in 2016 implementing the provisions of the Law on Export and Import Duties.

- Official Dispatch 11002/BTC-TCHQ in 2017 on tax exemption for imported goods declared before September 1, 2016, according to section XII of Official Dispatch 12166/BTC-TCHQ.

- Decree 134/2016/ND-CP guiding the Law on Export and Import Duties.

- Decree 18/2021/ND-CP amending Decree 134/2016/ND-CP guiding the Law on Export and Import Duties.

- Decree 26/2023/ND-CP on Export Tariff Schedule, Import Tariff Schedule, List of Goods and Absolute Tax Rates, Compound Tax, and Out-of-quota Import Tax.

What are the legislative documents on the elaboration of the Law on Export and Import Duties in Vietnam? (Image from the Internet)

Which goods are subject to export and import duties in Vietnam?

The objects subject to export and import duties are specified in Article 2 of the Law on Export and Import Duties 2016 including:

- 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 following goods do not incur export and import duties:

+ 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.

Which entities must pay export and import duties in Vietnam?

Export and import duty payers are specified in Article 3 of the Law on Export and Import Duties 2016, including:

- Owners of exports and imports.

- Entrusted exporters and importers.

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

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

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

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

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

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

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

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

- 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.

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

- Other cases prescribed by law.

What are the deadlines for paying export and import duties in Vietnam?

- Duties on exports and imports have to be paid before customs clearance or release as prescribed by the Law on Customs, except for the case in Clause 2,  Article 9 of the Law on Export and Import Duties 2016.

Where a credit institution provides guarantee for the amount of tax payable, customs clearance or release shall be granted. However, late payment interest shall be paid for the period from the date of customs clearance or release to the tax payment date in accordance with the Law on Tax administration. The guarantee period shall not exceed 30 days from the day on which the customs declaration is registered.

If the taxpayer fails to pay tax and late payment interest by the end of the guarantee period, the guarantor shall fully pay tax and late payment interest on behalf of the taxpayer.

- The taxpayer given priority as prescribed by the Law on Customs shall pay tax on the customs declarations granted customs clearance or release in the month by the 10th of the next month. If the taxpayer fails to pay tax by the aforesaid deadline, the taxpayer shall fully pay outstanding tax and late payment interest as prescribed by the Law on Tax administration.