What are the procedures for the import duty reduction in Vietnam?

What are the procedures for import duty reduction in Vietnam?

Under Clause 3 Article 32 of Decree 134/2016/ND-CP (amended by Clause 16 Article 1 of Decree 18/2021/ND-CP), the regulations are as follows:

Export and import duty reduction

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3. Procedures and authority for granting duty reduction:

a) The taxpayer shall submit an application to the customs official while following customs procedures or within 30 working days from the issuance date of the confirmation of loss or damage of goods;

b) If a satisfactory application is submitted while following customs procedures, the Sub-department of Customs shall process the application, carry out a physical inspection, inspect the eligibility for duty reduction and decide whether to grant duty reduction before customs procedures are completed as prescribed Article 23 of the Law on Customs;

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

Within 30 days from the receipt of the satisfactory application, the Provincial/Municipal Customs Department 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 hereof 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.

Thus, to be eligible for import duty reduction, the taxpayer shall submit an application to the customs official while following customs procedures or within 30 working days from the issuance date of the confirmation of loss or damage of goods;.

Within 30 days from the receipt of the satisfactory application, the Provincial/Municipal Customs Department shall compile a dossier, verify the information, inspect the accuracy and adequacy of the application and issue an import duty reduction decision.

What are the procedures for import duty reduction in Vietnam? (Image from Internet)

What are the cases of import duty reduction in Vietnam?

Under Article 18 of the Law on Export and import Duties 2016, the regulations are as follows:

Tax reduction

1. 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.

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Therefore, if 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 import duty reduction rate shall be proportional to the loss of goods. Tax is exempt if the imports are completely damaged or lost.

What is the import duty payment deadline in Vietnam?

Under Article 9 of the Law on Export and Import Duties 2016, the regulations are as follows:

Tax payment deadline

1. 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 hereof.

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.

2. 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.

Thus, the deadline for paying import duty is before customs clearance or release of goods as prescribed by the Law on Customs 2014.

However, 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.