What are the solutions for export and import duty reform according to the tax reform strategy until 2030 in Vietnam?

What are the solutions for export and import duty reform according to the tax reform strategy until 2030 in Vietnam?

According to point c, clause 1, Section 3, Article 1 of Decision 508/QD-TTg 2022, the solutions for export and import duty reform according to the tax reform strategy until 2030 in Vietnam are as follows:

- Continue to reduce the number of tax rates to create a more simplified import tariff, strive to reduce the number of import tax rates from 32 at present to about 25 by 2025, and to 20 by 2030.

- Study any amendments and supplements to export and import tax policies to promote exports, encourage the increase of domestic value, and limit the export of raw resources and minerals;

- Adopt appropriate preferential policies to promote the development of key industries, supporting industries and other preferred sectors, ensuring compliance with the country's socio-economic development orientations over periods of time and international commitments.

- Study any amendments to regulations on-the-spot exports or imports and regulations related to non-tariff zones, ensuring consistency with regulations of relevant law and prevention of trade fraud and tax evasion;

What are the solutions for export and import duty reform according to the tax reform strategy until 2030 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 places for submitting the application for the 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):

Export and import duty reduction

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3. Power to grant 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 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 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.

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Thus, taxpayers must submit the application for export tax and import duty reduction to the customs official where customs procedures are carried out while following customs procedures or within 30 working days from the issuance date of the confirmation of loss or damage of goods.