What is the basis for calculating proportional duties for exports and imports in Vietnam?

What is the basis for calculating proportional duties for exports and imports in Vietnam?

According to Article 5 of the Law on Export and Import Duties 2016, the basis for calculating proportional duties for exports and imports in Vietnam is stipulated as follows:

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

- The export duty rate is specifically prescribed for each item in the export tariff.

In cases where goods are exported to a country, group of countries, or territory with preferential export duty agreements in trade relations with Vietnam, these agreements will be applied.

- The import duty rate includes preferential rates, special preferential rates, and ordinary rates, applied as follows:

+ The preferential rate applies to imported goods originating from a country, group of countries, or territory that implements the most-favored-nation treatment in trade relations with Vietnam; goods imported from non-tariff zones into the domestic market meeting the origin criteria from a country, group of countries, or territory that implements the most-favored-nation treatment in trade relations with Vietnam;

+ The special preferential rate applies to imported goods originating from a country, group of countries, or territory with special preferential import duty agreements in trade relations with Vietnam; goods imported from non-tariff zones into the domestic market meeting the origin criteria from a country, group of countries, or territory with special preferential import duty agreements in trade relations with Vietnam;

+ The ordinary rate applies to imported goods not included in the cases specified in points a and b, clause 3. The ordinary rate is set at 150% of the preferential rate for the corresponding item. If the preferential rate is 0%, the Prime Minister of the Government of Vietnam will decide on the application of the ordinary rate based on the provisions of Article 10 of this Law.

What is the basis for calculating proportional duties for exports and imports in Vietnam? (image from the internet)

Which entities are considered export and import duty payers in Vietnam?

According to Article 3 of the Law on Export and Import Duties 2016, the specific duty payers include:

- Owners of export and import goods.

- Organizations entrusted with the export and import.

- Individuals exiting or entering with export and import goods, sending or receiving goods through the border, Vietnamese border crossings.

- Authorized individuals, guarantors, and those paying taxes on behalf of the tax payers, including:

+ Customs agents authorized by the taxpayers to pay export and import duties;

+ Enterprises providing postal services, international express delivery services paying taxes on behalf of the taxpayers;

- Credit institutions or other organizations operating under the Law on Credit Institutions in cases of guaranteeing or paying taxes on behalf of the taxpayers;

+ Persons authorized by the owner in cases of goods as gifts, personal presents; luggage sent before or after the traveler's journey;

+ Branches of enterprises authorized to pay taxes on behalf of the enterprise;

+ Others authorized to pay taxes on behalf of the taxpayers as per legal provisions.

- Persons purchasing or transporting goods under the duty-free allowance of border residents but selling them within the domestic market, and foreign traders allowed to trade export and import goods at border markets as per legal provisions.

- Persons having export and import goods exempted, relieved, but subsequently becoming liable to tax under legal provisions.

When is the time for calculating export and import duties in Vietnam?

Based on clause 2 of Article 8 of the Law on Export and Import Duties 2016, the specific time for calculating export and import duties is at the time of customs declaration registration.

- For export and import goods exempted, relieved from export and import duties, or applying absolute rates within the quota, but then changing categories to liable for tax according to legal provisions, the time of duty calculation is at the new customs declaration registration.

- The time of customs declaration registration is executed according to the legal provisions on customs.