When does the exemption from export duties without limit apply in Vietnam?

How to determine taxed goods in Vietnam?

Based on Article 2 of the Law on Export and Import duties 2016, the goods subject to duties are stipulated as follows:

- Goods exported through Vietnamese ports and borders.

- Goods exported from the domestic market to non-tariff areas.

- Goods exported, imported on the spot, and goods exported, imported by enterprises exercising the right to export, the right to import, and the right to distribute.

- Additionally, export duty will not apply to the following cases:

+ Goods in transit, transshipment;

+ Humanitarian aid goods, non-refundable aid goods;

+ Goods exported from non-tariff areas to foreign countries; goods transferred from one non-tariff area to another;

+ The portion of oil and gas used to pay resource duties to the State when exported.

When does the exemption from export duties without limit apply in Vietnam?

According to Clause 3, Article 6 of Decree 134/2016/ND-CP which stipulates the exemption from tax for luggage of individuals exiting and entering the country as follows:

Tax exemption for luggage of individuals exiting and entering the country

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3. Individuals exiting with a passport or a substitute document issued by the competent authority of Vietnam or a foreign country, carrying luggage in person, or sending luggage before or after the journey, and not listed under exported goods, temporarily suspended export goods, or goods for conditional export according to the laws, shall be exempt from export duty without quantity restriction.

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Thus, exemption from export duty without quantity restriction is applied in the following case:

- Exiting with a passport or a substitute document issued by the competent authority of Vietnam or a foreign country.

- Carrying luggage in person, or sending luggage before or after the journey.

- Luggage not listed under prohibited export goods, temporarily suspended export goods, or goods for conditional export.

When does the exemption from export duties without limit apply in Vietnam? (Image from the Internet)

What is the procedure for export duty exemption in Vietnam?

Based on Clause 3, Article 31 of Decree 134/2016/ND-CP as amended and supplemented by Clause 14, Article 1 of Decree 18/2021/ND-CP, the procedure for tax exemption is stipulated as follows:

Documentation and procedure for tax exemption during customs procedures

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3. Tax exemption procedure:

a) The taxpayer self-determines, declares the goods and the tax amount exempted (except for declaring the tax amount payable for export, import goods for processing as provided by the processing tax party) on the customs declaration when performing customs procedures, and is responsible for the legality of the declaration.

b) The customs office at the place of customs procedures shall base on the tax exemption dossier to compare with existing regulations and execute the tax exemption accordingly.

If import goods are determined not to be subject to tax exemption as declared, duties will be collected, and violations penalized (if any) according to the regulations.

c) The electronic data processing system automatically deducts the quantity of export, import goods corresponding to the quantity of goods in the Tax Exemption List.

In case of notification of a paper Tax Exemption List, the customs office will update and deduct the quantity of exported, imported goods corresponding to the quantity in the Tax Exemption List.

In case of importing tax-free goods in assemblages, lines, the taxpayer must carry out customs procedures at the customs office where machinery and equipment are installed. At the time of registering the customs declaration, the taxpayer will detail the goods on the customs declaration. If details cannot be declared on the customs declaration, the taxpayer makes a detailed list of imported goods according to the criteria specified in Form No. 04 Appendix VIIa issued with this Decree via the electronic data processing system or Form No. 15 Appendix VII issued with this Decree and attached to the customs declaration. Within 15 days from the end of the importation of the last shipment of each assemblage, line, the taxpayer is responsible for notifying the customs office where the Tax Exemption List is notified according to the criteria specified in Form No. 05 Appendix VIIa issued with this Decree via the electronic data processing system or Form No. 16 Appendix VII issued with this Decree.

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Thus, the tax exemption procedure is as follows:

- Step 1: The taxpayer self-determines, declares goods and the tax amount exempted (except for declaring the tax amount payable for export, import goods for processing as provided by the processing tax party) on the customs declaration when performing customs procedures, and is responsible for the legality of the declaration.

- Step 2: The customs office at the place of customs procedures shall base on the tax exemption dossier to compare with existing regulations and execute the tax exemption accordingly. If import goods are determined not to be subject to tax exemption as declared, duties will be collected, and violations penalized (if any) according to the regulations.

- Step 3: The electronic data processing system automatically deducts the quantity of export, import goods corresponding to the quantity of goods in the Tax Exemption List.