What are the conditions for application of priority policy in the field of customs in Vietnam?
What is the law on priority enterprises in Vietnam?
Currently, the law on enterprises does not have a definition of priority enterprises in Vietnam.
However, for the import-export major, in Clause 1, Article 3 of Circular 72/2015/TT-BTC, it is mentioned that "priority enterprise" is an enterprise exporting and/or importing goods recognized as a priority enterprise by customs authorities.
What are the conditions for application of priority policy in the field of customs in Vietnam?
What are the conditions for application of priority policy in the field of customs in Vietnam?
To apply the priority policy in the field of customs, enterprises must satisfy 06 conditions specified from Article 12 to Article 17 of Circular 72/2015/TT-BTC, specifically as follows:
(1) Compliance with customs legislation and tax legislation
Over the last 02 consecutive years before the day on which the enterprise submits an application for recognition of priority enterprise, the enterprise did not commit any of the follow tax offences and customs offences which results in penalties:
+ Acts of tax evasion, tax fraud; smuggling and illegal transportation of goods across the border;
+ Administrative customs offences which result in the form and level of penalties beyond the competence of the Director of Sub-department of Customs and people holding an equivalent titles;
+ A customs broker may only apply priority policy if the number of its declarations that incur administrative penalties for tax/customs offence by the Director of the Sub-department of Customs (or a person holding an equivalent title) does not exceed 0.5% of the total number of declarations that have undergone customs procedures.
+ Priority policy may only be applied if there is no overdue tax.
(2) Required export and import turnover
+ The enterprise earns at least USD 100 million in annual turnover from import, export.
+ The enterprise earns at least USD 40 million in annual turnover from export of goods manufactured in Vietnam.
+ The enterprise earns at least USD 30 million in annual turnover from export of goods being agriculture and aquatic products manufactured or grown in Vietnam.
+ The annual number of customs broker’s declarations undergone customs procedures is at least 20,000 declarations.
Export and import turnover specified in Clauses 1, 2, 3, 4 of this Article is an average turnover of 02 (two) last consecutive years before the date on which the enterprise submits a written request for consideration, excluding turnover from entrusted export and import.
+ The required export and import turnover mentioned above shall not be applied to the enterprise recognized as a high-tech enterprise by the Ministry of Science and Technology under the provisions of the Law on High Technology.
(3) Electronic customs procedures and electronic tax procedures
Electronic customs procedures, electronic tax procedures must be followed; there must be export/import management software programs meeting requirements of the customs authority.
(4) Payment for exported and imported goods
Payment for export and import consignments is made through banks as stipulated by the State Bank. Enterprises shall notify the customs authority the account number and the list of transaction banks.
(5) Internal management system
An enterprise’s internal management system is considered satisfactory if it satisfies the following conditions:
- The enterprise conducts and maintains processes to manage, monitor, and control its entire operation;
- The enterprise has measures and instruments, internal management process ensuring the safety and security of supply chain of exported and imported goods as follows:
+ Monitor the transport process of goods from enterprises to ports and from ports to enterprises;
+ Inspect safety of containers before they are loaded onto the vehicles;
+ Supervise at important positions: Fences, entrances and exits, warehouses, manufacturing areas, administrative areas;
+ Assign employees to enter and work in the areas suitable for their tasks;
+ Control security of information technology systems;
+ Ensure staff security.
(6) Good compliance with legislation on accounting, auditing
+ Accounting standards must be applied as prescribed by the Ministry of Finance;
+ The annual financial statement must be audited by an auditing company that is qualified for providing audit services in accordance with the law on independent audit. Auditor’s opinion on the financial statements mentioned in the audit reports must be an unqualified opinion according to the audit standards in Vietnam.
What are the regulations on the privilege of enterprises eligible for priority policy in the field of customs?
According to the provisions of Article 43 of the 2014 Law on Customs in Vietnam, the privilege given to enterprises includes:
- Exemption from examination of relevant documentary evidence in customs documents and exemption from physical inspection of goods in the course of carrying out customs formalities, except cases in which law violation are detected or random inspection is needed to assess law compliance.
- Follow customs formalities with incomplete customs declarations or documentary evidence in substitution of customs declarations.
Within 30 days from the date of registration of incomplete customs declarations or submission of documentary evidence in substitution of customs declarations, customs declarants shall submit complete customs declarations and relevant documentary evidence in customs documents.
- Be prioritized when carrying out tax formalities for goods in accordance with the law on taxation.
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