What is the currency of customs duties paid to customs authorities of Vietnam?

What is the currency of customs duties paid to customs authorities of Vietnam?

Pursuant to Clause 3, Article 24 of Decree 46/2020/ND-CP, it is stipulated as follows:

Transit Guarantee

1. Before registering the customs transit declaration for goods originating from Vietnam, the customs declarant shall choose between a single journey guarantee or a multiple journey guarantee and submit the guarantee letter of a credit institution or a foreign bank branch to the customs authority where the declaration is registered to update through the ACTS System. The guarantee is valid for the countries participating in the transit route.

In cases where the customs declarant is recognized as a prioritized transit enterprise, provisions in Article 26 of this Decree shall apply.

2. Method to calculate the guarantee amount:

a) The guarantee amount of a customs transit declaration is 110% of the highest possible customs duties among the participating countries in the transit route. The ACTS System assists in determining the guarantee amount for each customs transit declaration;

b) The multiple journey guarantee amount is determined based on a reference amount. This reference amount is equivalent to the possible customs duties of transited consignments conducted through the ACTS System over a period of at least 07 days.

Multiple journey guarantees are reduced and restored corresponding to the customs duty secured once the transit journey is completed without irregularities or corresponding to the customs duties paid by the customs declarant or guarantor in the event of irregularities;

c) The import duty rate and other taxes are calculated at the highest rate as prescribed by the tax laws of the country related to the transit journey. The import duty rate in Vietnam is calculated according to the Most-Favored-Nation (MFN) tariff schedule;

d) The method to calculate import duties and other taxes (if any) in Vietnam is implemented according to tax laws.

3. Currency for guarantee and tax payment:

a) Currency for guarantee: In the case of goods originating from Vietnam transiting through ASEAN member countries, the currency recorded on the guarantee letter is the Vietnamese Dong. In other cases, the currency recorded on the guarantee letter is in accordance with regulations of the departure country.

b) Currency for tax payment: The currency for paying the arising customs duties to the Vietnamese customs authority is the Vietnamese Dong, except in cases where tax declaration and payment are allowed in freely convertible foreign currencies as prescribed by the Tax Management Law. The exchange rate for tax calculation is carried out according to customs laws.

Thus, according to the aforementioned regulation, the currency used to pay arising customs duties to the Vietnamese customs authority is the Vietnamese Dong.

What is the currency of customs duties paid to customs authorities of Vietnam? (Image from the Internet)

How to determine the location where customs duties arise for goods in transit through the ACTS System in Vietnam?

Regarding the determination of the location where customs duties arise, Clause 2, Article 30 of Decree 46/2020/ND-CP stipulates:

The location determining the occurrence of customs duties that must be paid is where the transiting goods undergo illegal movement or are transferred to domestic consumption, or where there are changes in quantity, value, origin, classification, and other cases leading to the arising of customs duties.

Note: In cases where the specific location cannot be determined, the location where customs duties arise is where the customs authority or relevant authority discovers the illegal movement, transfer to domestic consumption, or changes in quantity, value, origin, classification, and other cases leading to the arising of customs duties.

Who is responsible for customs duties arising when goods are in transit through the ACTS System in Vietnam?

According to Clause 3, Article 30 of Decree 46/2020/ND-CP, those responsible for arising customs duties that must be paid include:

- The customs declarant is primarily responsible for the customs duties arising during the transit of goods;

- The guarantor is responsible for paying all or part of the customs duties arising during the transit of goods if the customs declarant does not fulfill or insufficiently fulfills the obligation to pay customs duties;

- The person who moves or engages in the illegal movement of goods from transit procedures through the ACTS System is responsible for paying customs duty debts corresponding to the quantity of goods illegally moved. Payment of customs duties is in accordance with the provisions in Clause 8, Article 24 of Decree 46/2020/ND-CP.

Owners or possessors of goods illegally moved from transit procedures through the ACTS System are responsible for paying customs duty debts corresponding to the quantity of goods owned or possessed due to illegal movement. Payment of customs duties is in accordance with the provisions in Clause 8, Article 24 of Decree 46/2020/ND-CP.