What are the responsibilities of the credit institutions in Vietnam where temporarily imported goods are not re-exported by the deadline?

Main Content

• What is the import duty payment guarantee in Vietnam?
• What are the responsibilities of credit institutions in Vietnam that offer a separate guarantee or joint guarantee but the taxpayer has failed to pay duty and late payment interest?
• What are the responsibilities of the credit institutions in Vietnam where temporarily imported goods are not re-exported by the deadline?

What is the import duty payment guarantee in Vietnam?

Pursuant to Clause 2, Article 4 of Decree 134/2016/ND-CP stipulating the Deadline for paying tax, duty payment guarantee and tax deposit as follows:

Deadline for paying tax, duty payment guarantee and tax deposit

1. Deadlines for paying tax specified in Article 9 of the Law on Export and import duties are applied to dutiable exports and imports prescribed by tax laws.

2. Export and import duty payment guarantee is either a separate or joint guarantee.

a) Separate guarantee means guarantee of full payment of duty on an export/import declaration offered by a credit institution which operates under the Law on credit institutions;

b) Joint guarantee means guarantee of full payment of duty on more than one export/import declaration opened at one or more Sub-department of Customs offered by a credit institution which operates under the Law on credit institutions; Guaranteed amount of duty under a joint guarantee shall vary according to the amount of paid duty;

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Thus, according to regulations, export and import duty payment guarantee is either a separate or joint guarantee.

- Separate guarantee means guarantee of full payment of duty on an export/import declaration offered by a credit institution which operates under the Law on credit institutions;

- Joint guarantee means guarantee of full payment of duty on more than one export/import declaration opened at one or more Sub-department of Customs offered by a credit institution which operates under the Law on credit institutions; Guaranteed amount of duty under a joint guarantee shall vary according to the amount of paid duty;

What are the responsibilities of the credit institutions in Vietnam where temporarily imported goods are not re-exported by the deadline?

What are the responsibilities of credit institutions in Vietnam that offer a separate guarantee or joint guarantee but the taxpayer has failed to pay duty and late payment interest?

Pursuant to Clause 2, Article 4 of Decree 134/2016/ND-CP stipulating the deadline for paying tax, duty payment guarantee and tax deposit as follows:

Deadline for paying tax, duty payment guarantee and tax deposit

...

2. Export and import duty payment guarantee is either a separate or joint guarantee.

a) Separate guarantee means guarantee of full payment of duty on an export/import declaration offered by a credit institution which operates under the Law on credit institutions;

b) Joint guarantee means guarantee of full payment of duty on more than one export/import declaration opened at one or more Sub-department of Customs offered by a credit institution which operates under the Law on credit institutions; Guaranteed amount of duty under a joint guarantee shall vary according to the amount of paid duty;

c) Where a credit institution (the guarantor) offers a separate guarantee or joint guarantee but the taxpayer has failed to pay duty and late payment interest (if any), the credit institution shall fully pay the duty and late payment interest owed by the taxpayer according to information on the customs information processing system or notification given by the customs authority;

d) Contents of a guarantee letter, submission, verification, monitoring and processing of guarantee letters shall comply with tax administration laws.

...

Thus, according to regulations, where a credit institution (the guarantor) offers a separate guarantee or joint guarantee but the taxpayer has failed to pay duty and late payment interest (if any), the credit institution shall fully pay the duty and late payment interest owed by the taxpayer according to information on the customs information processing system or notification given by the customs authority;

What are the responsibilities of the credit institutions in Vietnam where temporarily imported goods are not re-exported by the deadline?

Pursuant to Clause 4, Article 4 of Decree 134/2016/ND-CP stipulating the deadline for paying tax, duty payment guarantee and tax deposit as follows:

Deadline for paying tax, duty payment guarantee and tax deposit

...

3. If case of depositing import duty on temporarily imported goods before the deadline for re-export, which might be extended, the taxpayer shall transfer an amount of money equal to the import duty on such temporarily imported goods to the customs authority’s deposit account at a State Treasury.

The deposit shall be returned in accordance with regulations of tax administration laws on return of overpaid taxes, late payment interest and fines.

4. Where temporarily imported goods are not re-exported by the deadline, the customs authority shall transfer the deposit to state budget. If there is a guarantee, the credit institution (the guarantor) shall transfer an amount equal to the import duty to state budget according to information on the customs information processing system or notification given by the customs authority.

Thus, where temporarily imported goods are not re-exported by the deadline, the customs authority shall transfer the deposit to state budget. If there is a guarantee, the credit institution (the guarantor) shall transfer an amount equal to the import duty to state budget according to information on the customs information processing system or notification given by the customs authority.