Vietnam: What are the conditions for exemption of duties on exports or imports under an international treaty?
- What are the conditions for exemption of duties on exports or imports under an international treaty, goods of low values and goods sent by express delivery service in Vietnam?
- What documents are included in the application for duty exemption when carrying out customs procedures for exports or imports under an international treaty?
- What are the procedures for granting duty exemption when doing customs procedures?
What are the conditions for exemption of duties on exports or imports under an international treaty, goods of low values and goods sent by express delivery service in Vietnam?
According to the provisions of Article 29 of Decree No. 134/2016/ND-CP (amended by Clause 11 Article 1 of Decree No. 18/2021/ND-CP) on exemption of duties on exports or imports under an international treaty, goods of low values and goods sent by express delivery service in Vietnam as follows:
- Imports sent by post or express delivery service whose customs value is not exceeding VND 1.000.000 or duty on which is less than VND 100.000 are exempt from import duties in Vietnam.
Where the customs value of goods exceeds VND 1.000.000 or the total duty payable exceeds VND 100.000, the entire shipment shall be subject to import duties in Vietnam.
- A shipment whose customs value is not exceeding VND 500.000 or the total export or import duty on which is not exceeding VND 50.000 shall be exempt from export and import duties in Vietnam.
Provisions of this Clause do not apply to gifts, goods traded among border residents and goods sent by post or express delivery service.
What are the conditions for exemption of duties on exports or imports under an international treaty, goods of low values and goods sent by express delivery service in Vietnam?
What documents are included in the application for duty exemption when carrying out customs procedures for exports or imports under an international treaty?
The application for for duty exemption when carrying out customs procedures for low values and goods sent by post or express delivery service specified in Clause 4, Article 29 of Decree No. 134/2016/ND-CP as amended by Clause 11 Article 1 of Decree No. 18/2021/ND-CP, specifically as follows:
Exemption of duties on goods of low values and goods sent by post or express delivery service
…
4. The application for duty exemption is the customs dossier defined by customs law.
Referring to Article 16 of Circular No. 38/2015/TT-BTC (amended and supplemented by Clause 5, Article 1 of Circular No. 39/2018/TT-BTC) on customs documents as follows:
A customs dossier of exports consists of:
- A customs declaration (form No. 02 in Appendix II of Circular No. 38/2015/TT-BTC).
- Commercial invoices or equivalent documents if the buyer has to pay the seller: 01 photocopy;
- A statement of raw timber for export (if any) as prescribed by the Ministry of Agriculture and Rural Development: 01 original copy;
- The export license or a document permitting the export issued by a foreign trade authority if required;
- A notice of exemption from inspection or inspection result or an equivalent document (hereinafter referred to as “inspection certificate”): 01 original copy.
If corresponding regulations of law permits submission of photocopies or does not specify whether the original copy or photocopy has to be submitted, the declarant may submit a photocopy.
- The certificate of eligibility to export prescribed by investment law: 01 photocopy while following procedures for export of the first consignment;
- Entrustment contract: 01 photocopy if an export license, inspection certificate or certificate of eligibility to export is required for export entrustment as prescribed by investment law and the trustee uses the license or certificate of the trustor;
A customs dossier of imports consists of:
- A customs declaration according to form No. 01 in Appendix II hereof.
- Commercial invoices or equivalent documents if the buyer has to pay the seller: 01 photocopy.
- The bill of lading or equivalent transport documents if goods are transported by sea, air, railroad, or multi-modal transport as prescribed by law (unless goods are imported through a land checkpoint, goods traded between a free trade zone and the domestic market, imports carried in the luggage upon entry): 01 photocopy.
- A statement of imported raw timber (if any) as prescribed by the Ministry of Agriculture and Rural Development: 01 original copy;
- The export license or a document permitting the export issued by a competent authority if required by foreign trade law; The quota-based import license or a notification of tariff quota:
- Inspection certificate: 01 original copy.
- The certificate of eligibility to import prescribed by investment law: 01 photocopy while following procedures for import of the first consignment;
- Value declaration;
- Documents certifying goods origins specified in Circulars of the Minister of Finance on determination of origins of exports and imports;
- Entrustment contract: 01 photocopy;
- A contract to sell goods to a school or research institute or a contract to supply goods or services that are imported to serve teaching or scientific experiments and apply 5% VAT according to the Law on Value-added tax: 01 photocopy.
What are the procedures for granting duty exemption when doing customs procedures?
Pursuant to Clause 3, Article 31 of Decree No. 134/2016/ND-CP on the procedures for granting duty exemption as follows:
- The taxpayer shall determine and declare the amount of duty-free goods and tax exempted (except duties on goods imported or exported for processing by the hirer) while following customs procedures and take responsibility for such declaration.
- The customs authority where customs procedures are followed shall examine the declaration and applicable regulations to decide the grant of duty exemption.
If imports are not eligible for duty exemption as declared, the taxpayer shall have to pay duties and fines (if any).
LawNet
