Guidance on determining the customs value of the latest imported in Vietnam operating and control software from the General Department of Customs?
How does Vietnamese law regulate application software?
Pursuant to Clause 5, Article 2 of Circular 39/2015/TT-BTC (amended by Clause 1, Article 1 of Circular 60/2019/TT-BTC) has given the following definition:
“Article 2. Interpretation of terms
…
5. Application software is data, programs or instructions expressed in the form of commands, codes, schemas or any other form (application software) when installed into a data processing device data processing equipment, e.g. desktop computer, laptop computer, tablet computer, is capable of making that equipment do a job or achieve a particular result that the user use the application software you want to do. Audio, movie or video productions are not considered application software under this regulation.”
Thus, application software is defined as data, programs or instructions expressed in the form of commands, codes or other forms when installed into automatic data processing equipment.
The General Department of Customs shall guide the determination of customs value for import control and operation software?
How are imported in Vietnam goods determined customs value?
Pursuant to Article 5 of Circular 39/2015/TT-BTC (amended by Clause 4, Article 1 of Circular 60/2019/TT-BTC) as follows:
“Article 5. Principles and methods of customs valuation of imported goods
1. Principle:
a) The customs value of imported goods is the actual price payable up to the first border gate of importation determined by sequentially applying the methods from point a to point e, clause 2 of this Article and stops at customs value determination method;
b) If the customs declarant requests in writing, the order of application of the deducted value method and the calculated value method are interchangeable;
c) The customs value determination must be based on vouchers, documents, objective and quantifiable data.
2. Methods of determining customs value of imported goods:
a) Transaction value method of imported goods;
b) Transaction value method of identical imported goods;
c) Transaction value method of similar imported goods;
d) Deductible value method;
dd) Calculation value method;
e) Method of inference.”
Accordingly, the customs valuation of imported goods shall be carried out according to the principles and methods mentioned above.
Instructions for declaring the value of imported operating and control software?
Recently, the General Department of Customs has issued Official Letter 2333/TCHQ-TXNK dated June 15, 2022 guiding the value allocation of import operation and control software with the following contents and comments. :
“Clause 4, Article 6 of Circular 39/2015/TT-BTC dated March 25, 2015 is amended and supplemented at Clause 5, Article 1 of Circular No. 60/2019/TT-BTC dated August 30, 2019 of the Ministry of Finance. main regulations:
“5. In case the imported goods are machinery and equipment with imported control and operation software attached: the customs value is the transaction value of the imported machinery, equipment and control and operation software.
a) In case the control and operation software is recorded and stored in an intermediate medium for installation in machinery and equipment after being imported:
...
a.2) If the value of the control and operation software is not separate from the value of the intermediate means, the customs value is the transaction value of the machinery, equipment and control and operation software. imports, including the value of the intermediate vehicle.
...
c) In case the buyer has to pay the cost for the right to use the control and operation software to install and operate machinery and equipment, the actual amount paid for the right to use the control and operation software is be included in the value of imported machinery and equipment.”
Clause 2, Article 16 of Circular 39/2015/TT-BTC dated March 25, 2015 of the Ministry of Finance stipulates the methods of allocating adjustment amounts as follows:
“a) Allocation by quantity;
b) Distribution by weight;
c) Distribution by volume;
d) Allocation according to invoice value.”
Thus, in case the Company imports control and operation software as described in the above dispatches (recorded and stored on CD), the software value includes the software license fee. and used for many servo motors of the same series and this software installed for one motor can be installed for other motors of the same series, then on the basis of import documents and documents, the customs declarant can choose one of the other methods of value allocation specified in Clause 2, Article 16 of Circular No. 39/2015/TT-BTC dated March 25, 2015 of the Ministry of Finance to declare the value of imported software and must ensure the original Software value must be allotted to imported servo motors with control software installed and operated. The determination of the HS code of the servo motor must comply with the current regulations of the law.
It is recommended that the Company base on the actual records to compare with the above regulations to declare the value, HS code of the control software, operate the import and calculate tax in accordance with regulations. If you have any problems, please contact the customs office where the declaration is registered for specific instructions.”
Thus, the determination of customs value, HS code of import control and operation software is done according to the above guidance of the General Department of Customs.
LawNet