What are the two forms of duty payment guarantee for exports and imports in Vietnam?
What are the two forms of duty payment guarantee for exports and imports in Vietnam?
Pursuant to Clause 2, Article 4 of Decree 134/2016/ND-CP stipulates as follows:
Deadline for tax payment, guarantee, and tax deposit
1. The deadline for tax payment stipulated in Article 9 of the Law on Export and Import duties applies to exported and imported goods subject to taxation according to tax laws.
2. The duty payment guarantee for export and import goods is implemented in one of two forms: Separate guarantee or general guarantee.
a) A separate guarantee is when a credit institution operates under the Law on Credit Institutions and commits to guarantee the full fulfillment of the tax payment obligation for a customs declaration for exported or imported goods;
b) A general guarantee is when a credit institution operates under the Law on Credit Institutions and commits to guarantee the full fulfillment of the tax payment obligation for two or more customs declarations for exported or imported goods at one or multiple Customs Sub-Departments. A general guarantee is deducted retroactively and restored corresponding to the amount of tax already paid;
c) In cases where a credit institution provides a separate or general guarantee but the guarantee period for each declaration expires and the taxpayer has not paid the tax and late payment interest (if any), the credit institution providing the guarantee is responsible for fully paying the tax, late payment interest on behalf of the taxpayer to the state budget based on information in the electronic customs data processing system or notifications from the customs authority;
d) The contents of the guarantee letter, submission of the guarantee letter, and the inspection, monitoring, and handling of the guarantee letter are carried out in accordance with the regulations on tax administration.
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Thus, the two forms of duty payment guarantee for export and import goods are separate guarantee or general guarantee.
What are the two forms of duty payment guarantee for exports and imports in Vietnam? (Image from the Internet)
Can customs brokerage agents guarantee import-export duty in Vietnam?
Based on Clause 4, Article 3 of the Law on Export and Import duties 2016 as follows:
Taxpayer
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4. Persons authorized to guarantee and pay taxes on behalf of the taxpayer include:
a) Customs brokerage agents in cases where they are authorized by taxpayers to pay export and import taxes;
b) Enterprises providing postal services or international express delivery services in cases of paying taxes on behalf of the taxpayer;
c) Credit institutions or other organizations operating under the Law on Credit Institutions in cases of guaranteeing and paying taxes on behalf of the taxpayer;
d) Persons authorized by the owner of goods in cases where goods are gifts or donations from individuals; luggage sent before or after the journey of the person exporting or importing;
đ) Branches of enterprises authorized to pay taxes on behalf of enterprises;
e) Other persons authorized to pay taxes on behalf of the taxpayer in accordance with the law.
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Thus, according to the above regulation, a customs brokerage agent in cases where they are authorized by taxpayers to pay export and import taxes is allowed to guarantee the import-export duty.
Which entities are exempt from import-export duty in Vietnam in 2024?
Pursuant to Article 16 of the Law on Export and Import duties 2016, entities exempt from import-export duty in 2024 are specified as follows:
- Exported and imported goods of foreign organizations and individuals enjoying preferential treatment and exemption in Vietnam within limits appropriate to the international agreements to which the Socialist Republic of Vietnam is a party; goods within the duty-free baggage allowances of people exiting or entering the country; goods imported for sale at duty-free shops.
- Movable assets, gifts within the limits from foreign organizations and individuals to Vietnamese organizations and individuals or vice versa.
Movable assets, gifts that exceed the tax-exempt limits must pay tax on the excess part, except where the receiving unit is an agency or organization whose operational expenses are covered by the state budget and authorized by a competent authority to receive or is for humanitarian or charitable purposes.
- Goods bought and sold, exchanged across the border by border residents within the List of goods and within limits for the production and consumption of border residents.
In the case of purchasing or transporting goods within limits but not used for production, consumption of border residents, and goods exported or imported by foreign traders allowed to do business in border markets must pay tax.
- Goods exempt from export and import taxes under international agreements to which the Socialist Republic of Vietnam is a member.
- Goods with a value or tax amount below the minimum level.
- Imported raw materials, supplies, and components for processing export products; complete products imported for attachment to processed products; exported processed products.
Exported processed products made from domestic raw materials subject to export duty are not exempt from tax for the equivalent value of domestic raw materials constituting the exported product.
Goods exported for processing then imported are exempt from export and import taxes on the value of exported raw materials constituting the processed product. In the case of goods exported for processing then imported that are natural resources, minerals, or products whose total value of natural resources, minerals plus energy costs constitutes 51% or more of the product's cost, they are not exempt from tax.
- Raw materials, supplies, and components imported for producing exported goods.
- Goods produced, processed, recycled, or assembled in non-tariff zones without using imported raw materials or components from overseas when imported into the domestic market.
- Goods temporarily imported, re-exported, or temporarily exported, re-imported within a stipulated time limit, including:
+ Goods temporarily imported, re-exported, temporarily exported, re-imported for organizing or participating in fairs, exhibitions, showcasing products, cultural, artistic or sporting events, or other events; machinery, equipment temporarily imported, re-exported for testing, product research and development; machinery, equipment, professional tools temporarily imported, re-exported, temporarily exported, re-imported for work within a stipulated time limit or for outsourcing for foreign traders, except for the case of machinery, equipment, tools, vehicles of organizations and individuals that are allowed to temporarily import, re-export to execute investment projects, construction, assembly, serve production;
+ Machinery, equipment, components, spare parts temporarily imported for replacement, repair of foreign ships or aircraft, or temporarily exported for replacement, repair of Vietnamese ships or aircraft abroad; goods temporarily imported, re-exported for supply to foreign ships or aircraft anchored at Vietnam's ports;
+ Goods temporarily imported, re-exported or temporarily exported, re-imported for warranty, repair, replacement;
+ Rotating means temporarily imported, re-exported or temporarily exported, re-imported for transporting export and import goods;
+ Goods for temporary import and re-export business within the temporary import declaration time (including the extended time) secured by credit institutions or deposited equivalent to the import tax amount on temporarily imported goods, re-exported.
- Non-commercial goods in the following cases: samples; images, films, models replacing samples; promotional items and catalogs in small quantities.
- Goods imported to create fixed assets of projects entitled to investment incentives under the law on investment, including:
+ Machinery, equipment; components, details, separate parts, spare parts for complete assembly or for simultaneous use with machinery, equipment; raw materials, supplies used for fabrication of machinery, equipment or for fabrication of components, details, separate parts, spare parts of machinery, equipment;
+ Special transport vehicles in the technological chain directly used for the production activity of the project;
+ Construction materials not yet produced domestically.
The exemption of import duties on imported goods as prescribed in this clause applies to both new investment projects and expansion investment projects.
- Plant varieties; animal breeds; fertilizers, pesticides not yet produced domestically, necessary for importation according to the regulations of competent state management agencies.
- Raw materials, supplies, and components that have not been produced domestically imported for the production of investment projects on the list of industries and trades eligible for special investment incentives or in areas with particularly difficult socio-economic conditions as prescribed by investment laws, high-tech enterprises, science and technology enterprises, and science and technology organizations are exempt from import duties for 5 years from the date of commencement of production.
The exemption of import duties on imported goods prescribed in this clause does not apply to mineral extraction projects; projects producing products whose total value of natural resources, minerals plus energy costs constitutes 51% or more of the product's cost; projects producing and trading goods and services subject to special consumption taxes.
- Raw materials, supplies, and components that have not been produced domestically imported for projects on the production and assembly of medical equipment prioritized for research and manufacture, exempt from import duties for 5 years from the date of commencement of production.
- Imported goods to serve petroleum operations, including:
+ Machinery, equipment, spare parts, special purpose vehicles necessary for petroleum operations, including where temporarily imported, re-exported;
+ Components, details, separate parts, spare parts for complete assembly or use with machinery, equipment; raw materials, supplies used for fabrication of machinery, equipment, or for fabrication of components, details, separate parts, spare parts of machinery, equipment necessary for petroleum operations;
+ Supplies necessary for petroleum operations that have not been produced domestically.
- Shipbuilding projects establishments on the industry and trade preference list according to the law on investment are exempt from tax on:
+ Imported goods to create fixed assets of shipbuilding establishments, including: machinery, equipment; components, details, separate parts, spare parts for complete assembly or use with machinery, equipment; raw materials, supplies used for fabrication of machinery, equipment or for fabrication of components, details, separate parts, spare parts of machinery, equipment; transport vehicles in the technology chain directly serving for shipbuilding activities; construction materials not produced domestically;
+ Imported goods are machinery, equipment, raw materials, supplies, components, semi-finished products not yet produced domestically for shipbuilding;
+ Exported ships.
- Machinery, equipment, raw materials, supplies, components, parts, and spare parts imported for money printing and coin minting activities.
- Imported goods that are raw materials, supplies, components that have not been produced domestically directly serving for the production of information technology products, digital content, and software.
- Exported and imported goods for environmental protection, including:
+ Machinery, equipment, vehicles, tools, specialized supplies imported not yet produced domestically for collection, transportation, treatment, and processing of wastewater, waste, exhaust gases, monitoring and environmental analysis, renewable energy production; pollution treatment, response, and handling of environmental incidents;
+ Exported products produced from recycling, waste treatment activities.
- Imported goods specialized for education not produced domestically.
- Imported goods are machinery, equipment, spare parts, supplies specialized for use in the country not produced domestically, scientific documents and books directly used for scientific research, technology development, technology incubation, science and technology enterprise incubation, technology innovation.
- Imported specialized goods serving directly for national security and defense, in which specialized transport vehicles must be of types not yet produced domestically.
- Exported and imported goods to serve social security assurance, overcoming consequences of natural disasters, disasters, epidemics, and other special cases.
