Conditions for Considering Discounts for Imported Shipments and the Documentation Required for Discount Consideration Procedures

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Regulations on Discount, Discount Conditions, Documentation, Declaration Procedure, and Discount Request:

Based on the provisions at Point d, Clause 2, Article 15 of Circular 39/2015/TT-BTCC regarding the deduction adjustments as follows:

Deduction Adjustments

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2. Deduction Adjustments:

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d) Discount:

d.1) Discount is only deductible when the following conditions are fully met:

d.1.1) The discount must belong to one of the following types:

d.1.1.1) Discount based on the commercial level of the goods transaction;

d.1.1.2) Discount based on the quantity of goods purchased and sold;

d.1.1.3) Discount based on the form and time of payment.

d.1.2) The discount must be documented before the goods are loaded onto the transport vehicle in the export country;

d.1.3) Objective and quantitative data must be available that corresponds to the documents to separate this discount from the transaction value. These documents should be submitted with the customs declaration;

d.1.4) Payment through the bank must be made by L/C or TTR method for the entire imported goods under the sales contract.

d.1.5) Declared value and actual quantity of imported goods, commercial level, form, and timing of payment must comply with the seller's discount announcement.

d.2) Documents for Discount Request:

d.2.1) Written request for the discount deduction after completing import and payment for the entire goods under the contract: 01 original;

d.2.2) Sales contract: 01 copy;

d.2.3) Actual import tracking list according to form No. 01/GG/2015 Appendix II of this Circular for cases where goods under the same contract are imported in multiple shipments (multiple declarations): 01 original;

d.2.4) Seller's discount announcement: 01 copy;

d.2.5) Payment documents for the entire goods under the sales contract: 01 copy;

d.3) Procedures for Declaration, Checking the Discount, and Processing Authority:

d.3.1) Responsibility of the customs declarant:

d.3.1.1) Declare the discount in the "detailed declaration of value" criteria on the import declaration or the corresponding criteria on the customs value declaration but do not deduct the discount on the customs value declaration.

d.3.1.2) Calculate and pay taxes according to the value not yet deducted for the discount;

d.3.1.3) Submit the documents requesting the discount under the provisions at point d.2 of this clause after completing the import and payment for the entire goods under the sales contract.

d.3.2) Responsibility of the customs authority:

The customs authority where the customs declarant submits the request for the discount deduction shall:

d.3.2.1) Check the documents, evidence, and related materials accompanying the request from the customs declarant;

d.3.2.2) Check and compare the declared values and actual quantities, commercial levels, form and timing of payment with the seller's discount announcement;

d.3.2.3) The Director of the Provincial/City Customs Department considers and decides on the deduction if all conditions specified at point d.1 of this clause are met and the discount value is less than 5% of the total batch value, and the declared value is not lower than the reference price of identical goods in the list of import goods with value risks. Other discount cases will be considered and decided by the General Director of the General Department of Customs;

d.3.2.4) Handle tax differentials due to the deducted discount according to regulations.

Thus, the discount, conditions for the discount, documentation, declaration procedure, and discount request are regulated as above.

How are the conditions for import discounts and the discount request document regulated? (Image from the Internet)

General Department of Customs' Opinion on the Dossier Submitted by the International Supply Chain Joint Stock Company:

Upon considering the dossier submitted by the International Supply Chain Joint Stock Company and comparing it with the above regulations, the General Department of Customs finds:

First: About the discount request dossier

- The dossier provided by the enterprise only includes the Framework Contract No. LG/2022/018 dated February 24, 2022. According to point 3.2 of the Framework Contract, packaging materials must be ordered in writing (Order Form). According to the customs declaration, the goods were imported according to specific orders. However, the submitted dossier does not include the Order Forms. Additionally, Framework Contract No. LG/2022/018 for packaging materials was made on February 24, 2022, but point 9.1 of this contract states that it is effective from January 1, 2021.

- There is no seller’s discount announcement.

Second: Content of the discount request dossier

- Payment method: Point 4 of Appendix 2 of Framework Contract No. LG/2022/018 for packaging materials specifies the payment method as Telegraphic transfer (T/T).

Thus, the payment method does not meet the condition specified at sub-item d.1.4, point d, clause 2, Article 15 of Circular 39/2015/TT-BTC (payment through the bank by L/C or TTR for the entire imported goods under the sales contract).

- File inconsistencies:

+ The discount request falls under the quantity discount type. However, the proposed discount rate does not match the discount rate stated in Framework Contract No. LG/2022/018. Specifically, the discount rate on the Actual Import Tracking List is 28% for 110 ml boxes and 19.5% for 180 ml boxes, while Appendix 2 of Framework Contract LG/2022/018, point 2, pages 26, 27 states: Production level below 350 million boxes/year will reduce the invoice price of 125 ml packaging paper for 110 ml milk by 23.0% and reduce the invoice price of 200 ml packaging paper for 180 ml milk by 16.0%.

+ In the Actual Import Tracking List dated September 8, 2022, the company listed customs declarations 104410117450 dated December 11, 2022, 104420324850 dated December 16, 2022, 104424659510 dated December 18, 2022, and declaration number 104447188860 dated December 29, 2021. However, a search on the GTT02 system shows that 03 declarations were registered in 2021, not in 2022 as the company listed in the Tracking List. Specifically, declarations 104410117450, 104420324850, 104424659510 were registered in 2021. These 2021-registered declarations occurred before Framework Contract No. LG/2022/018 was signed on February 24, 2022. Moreover, in the "detailed declaration of value" box of these 2021-registered declarations, the company declared: the declaration is subject to the discount policy according to article 4 of the commercial agreement SIG & TH SC - Commercial Agreement/October 2014.

- The accompanying documents include payment proofs (money transfer orders), but these proofs are for multiple different order forms, and the file does not include the related order forms, making it impossible to verify these documents.

Does the Dossier Submitted by the International Supply Chain Joint Stock Company Meet the Conditions for Import Discount?

In Official Dispatch 3887/TCHQ-TXNK of 2022 issued by the General Department of Customs regarding import discount:

Based on the provisions at point d, clause 2, Article 15 of Circular 39/2015/TT-BTC and the above reasons:

- The import shipment under customs declarations 104410117450 dated December 11, 2021, 104420324850 dated December 16, 2021, 104424659510 dated December 18, 2021, and declaration number 104447188860 dated December 29, 2021, of the International Supply Chain Joint Stock Company does not meet the discount conditions as prescribed at point d, clause 2, Article 15 of Circular 39/2015/TT-BTC dated March 25, 2015 of the Ministry of Finance.

Above is Official Dispatch 3887/TCHQ-TXNK of 2022 regarding the import discount. Download Official Dispatch 3887/TCHQ-TXNK of 2022: Here