What percentage of the rates of customs duties is the guarantee amount for a customs transit declaration in Vietnam?

What percentage of the rates of customs duties is the guarantee amount for a customs transit declaration in Vietnam?

Pursuant to Clause 2, Article 24 of Decree 46/2020/ND-CP, it is stipulated as follows:

Transit Guarantee

1. Before registering a customs transit declaration for goods originating from Vietnam, the customs declarant chooses a form of single-trip guarantee or multiple-trip guarantee and submits a letter of guarantee from 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 for a customs transit declaration is equivalent to 110% of the highest possible customs tax amount among the countries participating in the transit route. The ACTS System assists in determining the guarantee amount for each customs transit declaration;

b) The multiple-trip guarantee amount is determined based on a reference amount. The reference amount is equivalent to the possible customs tax amount for transit shipments carried out via the ACTS System over a period of at least 07 days.

The multiple-trip guarantee is deductibly restored in correspondence with the customs tax amount guaranteed for the completed transit without abnormalities, or in correspondence with the customs tax amount the customs declarant or guarantor has paid when abnormalities occur;

c) The import tax rate and other applicable taxes are calculated based on the highest rate according to the legal tax regulations of the country related to the transit route. The import tax rate in Vietnam is calculated according to the Preferential Tariff Schedule (MFN);

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

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Thus, according to the above regulations, the guarantee amount for a customs transit declaration is 110 percent of the customs tax amount.

What percentage of the rates of customs duties is the guarantee amount for a customs transit declaration in Vietnam in Vietnam? (Image from the Internet)

What is the currency of the transit guarantee for goods originating from Vietnam transiting through ASEAN member countries?

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

Transit Guarantee

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3. Guarantee currency and tax payment currency:

a) Guarantee currency: In the case where goods originating from Vietnam transit through ASEAN member countries, the currency noted on the letter of guarantee is the Vietnamese Dong. In other cases, the currency noted on the letter of guarantee is implemented according to the regulations of the departing country.

b) Tax payment currency: The currency for paying the customs tax amount incurred to the Vietnamese customs authority is the Vietnamese Dong, except in cases where tax can be declared and paid in freely convertible foreign currency according to the Law on Tax Administration. The exchange rate for tax calculation is implemented according to customs law.

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Thus, for goods originating from Vietnam transiting through ASEAN member countries, the transit guarantee currency is the Vietnamese Dong. In other cases, the currency noted on the letter of guarantee follows the regulations of the departing country.

Is an enterprise with 3 months of tax debt in Vietnam eligible for a multiple journey guarantee waiver?

Pursuant to Article 26 of Decree 46/2020/ND-CP, it is stipulated as follows:

Waiver of Multiple-Trip Guarantee

1. An enterprise is eligible for a waiver of a multiple-trip guarantee if it meets the following conditions:

a) Recognized as a prioritized transit enterprise;

b) The enterprise is registered to conduct transport services or logistics services according to the law;

c) The enterprise has no overdue tax debt exceeding 90 days, including late payment fees and fines, and has not been subjected to enforcement measures for administrative tax decisions in customs within 02 consecutive years until the time of the request for a guarantee waiver.

2. Guarantee waiver documentation:

a) A written request for a guarantee waiver as per the form issued by the Ministry of Finance: 01 original copy;

b) A decision recognizing the prioritized transit enterprise: 01 photocopy, applicable to the first time of request for a guarantee waiver.

3. Guarantee waiver procedures:

a) The customs declarant submits the documentation specified in Clause 2 of this Article to the customs authority where the first customs transit declaration is registered through the ACTS System;

b) Within 05 working days from the date of receiving the written request for a guarantee waiver, the customs authority reviews, compares with the stipulations in Clause 1 of this Article, and informs the customs declarant about the waiver decision according to the form issued by the Ministry of Finance, updating the information through the ACTS System so that the customs declarant can declare the GRN on the customs transit declaration.

4. When customs tax and other payable amounts arise from transit goods, the transit enterprise granted a guarantee waiver under this Article is responsible for fulfilling all tax obligations and other payables according to the law.

Thus, according to the above regulations, if an enterprise has 3 months of tax debt, it does not qualify for a multiple journey guarantee waiver.