What are the methods for submitting an application for the reduction of import and export duties in Vietnam?

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.

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.

What are the methods for submitting an application for the reduction of import and export duties in Vietnam? (Image from the Internet)

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, 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.

What are the methods for submitting an application for the reduction of import and export duties in Vietnam?

Under Article 81 of the Law on Tax Administration 2019:

Submission and receipt of tax remission applications

1. In case the tax exempted or reduced is determined by the taxpayer, the tax remission application shall be submitted together with the tax declaration dossier mentioned in Chapter IV of this Law.

2. In case the tax remission is decided by a tax authority, the tax remission application shall be submitted as follows:

a) For export duties, import duties and other taxes relevant to exports and imports, the application shall be submitted to the customs authority in charge in accordance with regulations of the Government;

b) Applications for remission of other taxes shall be submitted to supervisory tax authorities.

3. Tax remission applications may be submitted:

a) in person at tax authorities;

b) by post;

c) electronically through online portals or tax authorities.

4. Receiving authorities shall send notices of receipt of tax remission applications; inform the taxpayer within 03 working days from the date of receipt if the application submitted is not legitimate, not adequate or not valid.

Thus, applications for the reduction of import and export duties may be submitted:

- in person at tax authorities;

- by post;

- electronically through online portals or tax authorities.

What are the procedures and authority for reduction of import and export duties in Vietnam?

According to Clause 3, Article 32 of Decree 134/2016/ND-CP, amended by Clause 16, Article 1 of Decree 18/2021/ND-CP, the procedures and authority for reduction of import and export duties in Vietnam are as follows:

- The taxpayer submits an application to the Customs Sub-department where customs procedures are performed at the time of customs clearance or no later than 30 working days from the date of the damage confirmation document.

- If the taxpayer submits a complete application at the time of carrying out customs procedures, the Customs Sub-department checks the application, examines the goods, checks the conditions for tax reduction, and processes the tax reduction within the customs procedure time frame as stipulated in Article 23 of the Customs Law 2014.

- If the application for duty reduction is submitted after customs procedures are completed:

Within 30 days from the receipt of the satisfactory application, the Customs Department of the province shall compile a dossier, verify the information, inspect the accuracy and adequacy of the application and issue a duty reduction decision according to Form No. 12 in Appendix VII of Decree 18/2021/ND-CP or inform the taxpayer of their ineligibility for duty reduction and the duty payable.

If the application is not satisfactory, the customs authority shall inform the taxpayer within 03 working days from the day on which the application is received.

If a physical inspection of goods that have been released from the customs controlled area is necessary basis for duty reduction, a decision on post-clearance inspection shall be delivered to the taxpayer and the tasks specified in this Point shall be carried out within 40 days from the day on which adequate documents are received.