When is the enforcement by suspension of customs procedures not applied in Vietnam?
When is the enforcement by suspension of customs procedures not applied in Vietnam?
Based on Clause 2, Article 131 of the Law on Tax Administration 2019, the circumstances where the enforcement by suspension of customs procedures is not applied are stipulated as follows:
Enforcement by suspension of customs procedures for export and import goods
- The head of the customs agency where the taxpayer has overdue tax debts must notify at least 05 working days before applying the measure to halt customs procedures for export, import goods.
2. The measure to halt customs procedures is not applied in the following cases:
a) Export goods subject to tax exemption, non-taxable items, or with an export tax rate of 0%;
b) Export or import goods directly serving national defense, security, disaster prevention, disease control, emergency relief; humanitarian aid, non-refundable aid.
- the Government of Vietnam provides detailed regulations on this Article.
Thus, the enforcement by suspension of customs procedures is not applied in the following cases:
- Export goods subject to tax exemption, non-taxable items, or with an export tax rate of 0%;
- Export or import goods directly serving national defense, security, disaster prevention, disease control, emergency relief; humanitarian aid, non-refundable aid.
When is the enforcement by suspension of customs procedures not applied in Vietnam? (Image from the Internet)
What are the subjects of the enforcement by suspension of customs procedures?
Based on Clause 1, Article 33 of Decree 126/2020/ND-CP, the subjects of the enforcement by suspension of customs procedures are defined as follows:
Enforcement by suspension of customs procedures for export and import goods
- Applicable objects
a) Enforcement by suspension of customs procedures for export and import goods is applied if other coercive measures to enforce administrative decisions on tax management, as stipulated at points a, b of Clause 1, Article 125 of the Law on Tax Administration, cannot be applied or these measures have been applied but the overdue tax debt has still not been collected into the state budget, or falls under the provisions of Clause 3, Article 125 of the Law on Tax Administration, or at the request of the tax authority.
b) Administrative decisions on tax management include: Decisions on sanctioning administrative violations in tax management; tax assessment notices, tax assessment decisions; overdue tax notices; decisions on recall or refund; extension decisions; installment payment decisions; decisions terminating the effectiveness of decisions on tax debt suspension; decisions on applying remedial measures according to regulations on handling administrative violations in tax management; compensation decisions; other administrative decisions on tax management as provided by law.
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Thus, the objects subject to the enforcement by suspension of customs procedures are export and import goods, to which other coercive measures to enforce administrative decisions on tax administration, as stipulated at points a, b of Clause 1, Article 125 of the Law on Tax Administration 2019, cannot be applied, or these measures have been applied but the overdue tax debt has still not been collected into the state budget, or falls under the provisions of Clause 3, Article 125 of the Law on Tax Administration 2019, or at the request of the tax authority.
What is the procedure for suspending the application of the enforcement by suspension of customs procedures in Vietnam?
According to Clause 3, Article 33 of Decree 126/2020/ND-CP, the procedure for suspending the application of the enforcement by suspension of customs procedures is as follows:
- The taxpayer being coerced submits a written request to suspend the application of the enforcement by suspension of customs procedures to the Customs Department where the debt subject to coercive halt in customs procedures arises, accompanied by a bank guarantee for the owed tax, late payment interest, and fines.
- The Customs Department where the taxpayer has a debt subject to coercive halt in customs procedures receives, checks for accuracy and completeness of the documents, and reports, suggests to the General Department of Customs within 05 working days from the date of receiving the complete dossier.
+ In case the dossier is incomplete, within 03 working days from the date of receiving the dossier, the customs authority receiving the dossier must notify the taxpayer for dossier completion.
- The General Department of Customs consults related units (if any) and reports to the Ministry of Finance within a maximum of 07 working days from the date of receiving the complete dossier.
- The Ministry of Finance reviews and resolves the temporary suspension of the enforcement by suspension of customs procedures for each specific case as proposed by the General Department of Customs within 05 working days from the date of receiving the report.
- The customs authority that issued the coercive decision relies on the document of the Ministry of Finance to suspend the enforcement by suspension of customs procedures.
+ In case the period of temporary suspension of the enforcement by suspension of customs procedures ends, if the taxpayer does not fulfill their tax obligation to the state budget, they will be sanctioned according to regulations.
- The document suspending the application of the enforcement by suspension of customs procedures is implemented according to Form No. 03-1/CC in Appendix III issued with Decree 126/2020/ND-CP.
