What is the newest official dispatch template requesting the reduction of import and export duties in Vietnam?

What is the newest official dispatch template requesting the reduction of import and export duties in Vietnam?

The newest official dispatch template requesting the reduction of import and export duties in Vietnam is Form No. 08 Appendix VII issued together with Decree 134/2016/ND-CP amended in Decree 18/2021/ND-CP.

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What is the newest official dispatch template requesting the reduction of import and export duties in Vietnam? (Image from the Internet)

What are the cases of reduction of import and export duties in Vietnam?

Under Article 18 of the Law on Export and Import Duties 2016, the tax reduction is regulated as follows:

Tax reduction

1. If exports and imports that are damaged or lost under customs supervision and the damage or loss is verified by a competent organization, tax reduction shall be granted.

The level of reduction shall be proportional to the loss of goods. Tax is exempt if the exports or imports are completely damaged or lost.

2. The procedures for tax reduction shall comply with regulations of law on tax administration.

Thus, if exports and imports are damaged or lost under customs supervision and the damage or loss is verified by a competent organization, tax reduction shall be granted.

What does the application for the reduction of import and export duties in Vietnam include?

According to Clause 2, Article 32 of Decree 134/2016/ND-CP, amended by Clause 16, Article 1 of Decree 18/2021/ND-CP, the application for the reduction of import and export duties in Vietnam includes:

- An official dispatch requesting tax reduction submitted by the taxpayer through the electronic data processing system of the customs authority according to the information criteria in Form No. 3 Appendix 7a or an official letter proposing tax reduction according to Form No. 08 in Appendix 7 issued with Decree 18/2021/ND-CP: 01 original copy;

- The insurance contract or insurance payout notice issued by the insurer (if any), or the insurer’s confirmation if the insurance contract does not cover tax indemnification; the contract or agreement on compensation issued by the shipping company in case the damage is caused by the shipping company (if any): 01 photocopy;

- A confirmation of damage issued by a local authority e.g. confirmation of conflagration issued by the local fire department, confirmation issued by one of the following bodies: police authority of the commune, the People’s Committee of the commune; management board of the industrial zone, export processing zone or economic zone; border checkpoint management board; port authority, airport authority where the force majeure event (natural disaster, epidemic, accident) occurs and causes damage to the imported materials or equipment: 01 original copy.

- Confirmation of loss or damage of goods issued by an assessment service provider: 01 original copy.

What are the procedures and authority for reduction of import and export duties in Vietnam?

According to Clause 3, Article 32 of Decree 134/2016/ND-CP, amended by Clause 16, Article 1 of Decree 18/2021/ND-CP, the procedures and authority for reduction of import and export duties in Vietnam are as follows:

- The taxpayer submits an application to the Customs Sub-department where customs procedures are performed at the time of customs clearance or no later than 30 working days from the date of the damage confirmation document.

- If the taxpayer submits a complete application at the time of carrying out customs procedures, the Customs Sub-department checks the application, examines the goods, checks the conditions for tax reduction, and processes the tax reduction within the customs procedure time frame as stipulated in Article 23 of the Customs Law 2014.

- If the taxpayer submits the application after carrying out the customs procedures:

Within 30 days from the receipt of a complete application, the Provincial or Municipal Customs Department reviews, verifies the information, assesses the accuracy and completeness of the application, and decides on the tax reduction according to Form No. 12 Appendix 7 issued with Decree 18/2021/ND-CP or notifies the taxpayer of the reasons for ineligibility for tax reduction and the payable tax amount.

If the application is incomplete, the customs authority notifies the taxpayer within 03 working days from the date of the receipt of the application.

In case an actual inspection of goods that have passed the customs supervision area is needed to resolve the tax reduction issue, a post-clearance inspection decision at the taxpayer's premises is issued, and tasks are performed as stipulated in this point within a maximum period of 40 days from the receipt of complete application.