What is the customs value threshold for sample goods to be exempted from import duty in Vietnam?

What is the customs value threshold for sample goods to be exempted from import duty in Vietnam?

According to the guidance provided in subsection 1 of Section 8 of Official Dispatch 12166/BTC-TCHQ in 2016 regarding the exemption of import duty for non-commercial goods as follows:

VIII. Regarding the exemption of import duty for non-commercial goods

1. Non-commercial goods are exempt from import duty in the following cases:

a) Sample goods with a customs value not exceeding 50,000 (fifty thousand) Vietnamese Dong or goods used solely for sampling, not for sale, exchange, or consumption;

b) Photos of sample goods, films of sample goods, models replacing sample goods;

c) Advertising publications that fall under Chapter 49 of the List of Vietnam's export and import goods, including: leaflets, commercial catalogues, directories, promotional materials, tourism posters used for advertising, announcing, or advertising a commodity or service and supplied for free are exempt from import duty as prescribed in Clause 10, Article 16 of the Law on Export and Import Duties on the Condition that each shipment contains only 01 type of publication and the total weight does not exceed 01 kg; if a shipment contains different types of publications, then each type should have only one copy or the total weight of publications does not exceed 01 kg.

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Therefore, sample goods with a customs value not exceeding 50 thousand Dong are exempt from import duty.

What is the customs value threshold for sample goods to be exempted from import duty in Vietnam? (Image from Internet)

How to prepare documents for import duty exemption for sample goods with a customs value not exceeding 50 thousand Dong in Vietnam?

Based on the guidance in subsection 2, Section VIII of Official Dispatch 12166/BTC-TCHQ in 2016 regarding the import duty exemption for non-commercial goods as follows:

VIII. Regarding the exemption of import duty for non-commercial goods

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2. The dossier and procedures for tax exemption are implemented according to the current regulations for cases exempt from tax without the need to register a list of tax-exempt goods at Circular No. 38/2015/TT-BTC dated March 25, 2015, of the Ministry of Finance.

Therefore, the dossier for import duty exemption for sample goods with a customs value not exceeding 50 thousand Dong is implemented according to the current regulations for cases exempt from tax that do not require registering a list of tax-exempt goods in clause 1, Article 105 of Circular 38/2015/TT-BTC, specifically:

Article 105. Dossier and procedures for tax exemption

1. The tax exemption dossier is the customs dossier as guided in this Circular.

For cases where taxpayers face difficulties due to objective reasons and other cases eligible for export and import duty exemption stipulated by the Government of Vietnam, an additional confirmation document from competent authorities regarding the objective reasons for requesting export and import duty exemption is required.

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Referencing to clause 3, Article 16 of Circular 38/2015/TT-BTC, amended by Clause 5, Article 1 of Circular 39/2018/TT-BTC, which regulates the customs dossier for tax-exempt import goods as follows:

In addition to the documents mentioned in clause 1 or clause 2 of this Article and as stipulated in Decree No. 134/2016/ND-CP dated September 1, 2016, of the Government of Vietnam which details some articles and measures for implementing the Law on Export and Import Duties, the customs declarant shall submit:

a) The list of tax-exempt goods form 06 issued together with Decree No. 134/2016/ND-CP.

If the electronic customs data processing system fully supports receiving the electronic list of tax-exempt goods, the customs declarant must notify the list through the System.

If notifying the list in paper form, the customs declarant shall present the original and submit 01 photocopy of the tax-exempt goods list as per form 06 issued together with Decree No. 134/2016/ND-CP along with the tracking slip that has been accepted by customs authorities;

b) Lease and sublease contracts of machinery, equipment, and specialized transport vehicles for oil and gas operations; service contracts for work for organizations and individuals engaged in oil and gas activities: 01 photocopy;

c) Contracts for manufacturing machinery, equipment, or manufacturing components, parts, accessories of machinery, equipment necessary for oil and gas activities provided to organizations and individuals engaged in oil and gas activities, stating that the supply price does not include import duty: 01 photocopy;

d) Contracts for manufacturing machinery, equipment, or manufacturing components, parts, accessories of machinery, equipment to create fixed assets of entities eligible for investment incentives or to create fixed assets of shipbuilding establishments: 01 photocopy.

Note: In cases where taxpayers face difficulties due to objective reasons and other cases eligible for import duty exemption as regulated by the Government of Vietnam, an additional confirmation document from competent authorities about the objective reasons requesting import duty exemption is required.

What are the procedures for import duty exemption for sample goods with a customs value not exceeding 50 thousand Dong in Vietnam?

According to the guidance in subsection 2, Section VIII of Official Dispatch 12166/BTC-TCHQ in 2016, the procedures for import duty exemption for sample goods with a customs value not exceeding 50 thousand Dong are implemented according to the current regulations for tax exemption cases that do not require registering a list of tax-exempt goods in clause 2, Article 105 of Circular 38/2015/TT-BTC.

Referring to clause 2, Article 105 of Circular 38/2015/TT-BTC, it is stipulated that:

(1) Taxpayers must self-calculate and declare the tax amount exempted for each item (except for goods exported and imported in the processing type), and declare customs as if tax must be paid. The customs authorities shall base on the tax exemption dossiers, the tax amount requested for exemption, and refer to current regulations to process tax exemption for each customs declaration as regulated.

In cases where the customs authorities check and determine that the exported and imported goods are not eligible for tax exemption as declared, they shall carry out procedures to collect taxes and impose penalties for violations (if any) as per regulation;

(2) In cases where taxpayers face difficulties due to objective reasons and other cases belonging to the category eligible for export and import duty exemption as regulated by the Government of Vietnam:

- Taxpayers self-determine the tax amount requested for exemption and submit a document (attached with relevant dossiers) to the General Department of Customs, requesting the Ministry of Finance to report to the Prime Minister of the Government of Vietnam for tax exemption consideration;

- The General Department of Customs shall re-check the entire dossier. If the dossier is incomplete or the reasons for requesting tax exemption need further clarification, it shall issue a written request for additional documents. After obtaining sufficient objective evidence, the General Department of Customs drafts a report to the Ministry of Finance to present to the Prime Minister of the Government of Vietnam;

- Based on the directive of the Prime Minister of the Government of Vietnam, the Ministry of Finance shall issue a notification to the taxpayer and relevant customs authorities for implementation;

- The customs authority where the export and import procedures are processed shall implement the export and import duty exemption for the goods permitted by the Prime Minister of the Government of Vietnam for tax exemption or collect the full tax as directed by the Prime Minister of the Government of Vietnam.