What is included in a customs document in Vietnam? Can I conduct customs formalities without paying taxes?
What is included in a customs document in Vietnam?
Pursuant to Clause 1, Article 24 of the 2014 Law on Customs of Vietnam, customs documents are prescribed as follows:
- A customs declaration or documentary evidence in substitution;
- Relevant documentary evidence.
As the cases maybe, a customs declarant shall submit sale contract, commercial invoice, bill of lading, certificate of origin of goods, import or export permit, notice of specialized inspection results or exemption from specialized inspection, and documentary evidence related to goods as prescribed by corresponding regulations of law.
Customs document in Vietnam
Can I conduct customs formalities without paying taxes?
Pursuant to Article 9 of the 2016 Law on Import Tax and Export Tax stipulating as follows:
Tax payment deadline
1. Duties on exports and imports have to be paid before customs clearance or release as prescribed by the Law on Customs, except for the case in Clause 2 hereof.
Where a credit institution provides guarantee for the amount of tax payable, customs clearance or release shall be granted. However, late payment interest shall be paid for the period from the date of customs clearance or release to the tax payment date in accordance with the Law on Tax administration. The guarantee period shall not exceed 30 days from the day on which the customs declaration is registered.
If the taxpayer fails to pay tax and late payment interest by the end of the guarantee period, the guarantor shall fully pay tax and late payment interest on behalf of the taxpayer.
2. The taxpayer given priority as prescribed by the Law on Customs shall pay tax on the customs declarations granted customs clearance or release in the month by the 10th of the next month. If the taxpayer fails to pay tax by the aforesaid deadline, the taxpayer shall fully pay outstanding tax and late payment interest as prescribed by the Law on Tax administration.
According to the above provisions, duties on exports and imports have to be paid before customs clearance or release as prescribed by the Law on Customs, except for the case in Clause 2 Article 9 of the 2016 Law on Import Tax and Export Tax.
Article 37 of the 2014 Law on Customs of Vietnam provides customs clearance for goods as follows:
Customs clearance for goods
1. Goods shall be cleared from customs formalities after such formalities are completed.
2. In case customs declarants have completed customs formalities, but have not paid or fully paid payable tax amounts within the regulated time limit, their goods may be cleared from customs formalities when they have such payable tax amounts guaranteed by a credit institution or enjoy a tax payment time limit in accordance with the tax law.
3. In case goods owners are fined by customs authorities or competent regulatory bodies for their customs-related administrative violations and their goods are permitted for export or import, such goods may be cleared from customs formalities if the goods owners have paid the fines or have their payable fines guaranteed by a credit institution for implementing the fining decisions.
4. For goods subject to inspection, analysis or assessment to determine whether or not they fully satisfy the export or import requirements, customs authorities shall permit customs clearance only after the goods are determined that to be eligible for export or import on the basis of inspection, analysis or assessment conclusions or inspection exemption notices of specialized inspection agencies in accordance with law.
5. Goods used for urgent requirements; goods exclusively used for security and defense purposes; and diplomatic bags, consular bags and luggage of agencies, organizations or individuals entitled to privileges or immunities shall be cleared from customs formalities under Articles 50 and 57 of this Law.
Thus, goods shall be cleared from customs formalities after such formalities are completed.
Therefore, according to the above provisions, exports and imports subject to duties but not being paid duties will still be eligible to conduct customs formalities. However, after completing customs formalities, the goods will still not be cleared.
In what cases will exports or imports on a new customs declaration be cleared?
Pursuant to Point c, Clause 3, Article 47 of Circular 38/2015/TT-BTC stipulating as follows:
Procedures for paying taxes, late payment interest, and fines
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3. State Treasuries and customs authority shall exchange information about collection of taxes, late payment interest, and fines to determine the order and collect them properly. To be specific:
...
c) In case a taxpayer fails to pay taxes, late payment interest, fines in the correct order, the customs authority shall send a request for adjustment of the amount of tax collected to the State Treasury, notify the taxpayer of such adjustment or request the taxpayer to pay other outstanding amounts in the correct order. Exports or imports on a new customs declaration shall only be granted customs clearance when the taxpayer does not owe overdue taxes, late payment interest, or fines.
According to the above regulations, exports or imports on a new customs declaration shall only be granted customs clearance when the taxpayer does not owe overdue taxes, late payment interest, or fines.
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