What is on-the-spot export and import? Are on-the-spot export and import goods subject to export and import duties in Vietnam?

What is on-the-spot export and import?

Currently, the law does not have specific provisions regarding the concept of on-the-spot export and import.

However, it can be understood that on-the-spot export and import is a special form of transaction in international trade. Instead of goods being transported across national borders, the goods are delivered and received within the territory of Vietnam.

To be specific, the exporter in Vietnam sells goods to a foreign trader, but according to the designation of this trader, the goods will be delivered to another unit also located in the territory of Vietnam.

Are on-the-spot export and import goods subject to export and import duties?

Based on Clause 3 Article 2 of the Law on export and import duties 2016, the subjects to export and import duties are defined as follows:

Taxable Subjects

1. Goods exported or imported through Vietnamese border gates.

2. Goods exported from the domestic market into non-tariff zones, goods imported from non-tariff zones into the domestic market.

3. Goods exported, imported on-the-spot and goods exported, imported by enterprises exercising export, import, and distribution rights.

4. Subjects to export taxes, import taxes do not apply to the following cases:

a) Goods in transit, transferred, or transshipped;

b) Goods for humanitarian aid, goods for non-refundable aid;

c) Goods exported from non-tariff zones to foreign countries; goods imported from foreign countries into non-tariff zones and only used within the non-tariff zones; goods transferred from one non-tariff zone to another;

d) The portion of petroleum used to pay resource taxes to the State when exported.

5. The Government of Vietnam shall detail this Article.

Thus, on-the-spot export and import goods are subjects to export and import duties.

What is on-the-spot export and import? Are on-the-spot export and import goods subject to export and import duties in Vietnam? (Image from the Internet)

What are the bases for calculating export and import duties for on-the-spot export goods applying the countervailing duty in Vietnam?

Based on Article 5 of the Law on export and import duties 2016, the bases for calculating export and import duties for on-the-spot export goods applying the countervailing duty are defined as follows:

- The amount of export, import tax is determined based on the taxable value and tax rate by percentage (%) for each item at the time of taxation.

- The tax rate for export goods is specifically defined for each item in the export tariff.

In the case of goods exported to countries, groups of countries, or territories with preferential agreements on export taxes in trade relations with Vietnam, these agreements shall apply.

- The tax rate for import goods includes preferential tax rates, special preferential tax rates, normal tax rates, and is applied as follows:

+ The preferential tax rate applies to goods imported from countries, groups of countries, or territories that grant the most favored nation treatment in trade relations with Vietnam; goods from non-tariff zones imported into the domestic market meeting the origin conditions from countries, groups of countries, or territories that grant the most favored nation treatment in trade relations with Vietnam;

+ The special preferential tax rate applies to goods imported from countries, groups of countries, or territories with special preferential agreements on import taxes in trade relations with Vietnam; goods from non-tariff zones imported into the domestic market meeting the origin conditions from countries, groups of countries, or territories with special preferential agreements on import taxes in trade relations with Vietnam;

+ The normal tax rate applies to goods imported not falling under the cases specified in points a and b, Clause 3, Article 5 of the Law on export and import duties 2016. The normal tax rate is defined as 150% of the preferential tax rate for each corresponding item.

In the case where the preferential tax rate is 0%, the Prime Minister of the Government of Vietnam, based on the provisions of Article 10 of the Law on export and import duties 2016, decides on the application of the normal tax rate.

What are the bases for calculating export and import duties for on-the-spot export goods applying absolute tax calculation method, mixed tax calculation method in Vietnam?

Based on Article 6 of the Law on export and import duties 2016, the bases for calculating export and import duties for on-the-spot export goods applying the absolute tax calculation method, mixed tax calculation method are defined as follows:

Bases for calculating export, import taxes for goods applying the absolute tax calculation method, mixed tax calculation method

1. The amount of tax applying the absolute tax calculation method to exported, imported goods is determined based on the actual quantity of exported, imported goods and the absolute tax rate defined per unit of goods at the time of taxation.

2. The amount of tax applying the mixed tax calculation method to exported, imported goods is determined as the total amount of tax by the countervailing duty and the absolute tax amount defined in Clause 1, Article 5, and Clause 1, Article 6 of this Law.

Thus, the bases for calculating export and import duties for on-the-spot export goods applying the absolute tax calculation method, mixed tax calculation method are determined as follows:

- Based on the actual quantity of exported, imported goods and the absolute tax rate defined per unit of goods at the time of taxation.

- The total amount of tax by the countervailing duty and the absolute tax amount defined in Clause 1, Article 5, and Clause 1, Article 6 of the Law on export and import duties 2016.