Vietnam: What does “imported goods of the same class or category” mean? What expenses does the computed value of imported goods include?
In Vietnam, what does “imported goods of the same class or category” mean?
According to the provisions of Clause 13, Article 2 of Circular 39/2015/TT-BTC, “Imported goods of the same class or category” means goods that have the same origin and belong to a group or a frame group of goods manufactured by the same industry or in the same domain, including identical imported goods and similar imported goods.
For example: Construction steel products, including steel rods, wound coils and sections (U, I or V shape) manufactured by the steel industry, are regarded as goods of the same category.
- In the customs valuation based on the deductible value, “imported goods of the same class or category” may be goods imported from any other countries into Vietnam, regardless of their origin;
- In the customs valuation based on the computed value, “imported goods of the same class or category” shall be goods imported that have the same origin as the one of goods receiving customs valuation.
What expenses does the computed value of imported goods in Vietnam include?
The computed value of imported goods in Vietnam is specified in Article 11 of Circular 39/2015/TT-BTC as follows:
Customs valuation according to the computed value (hereinafter referred to as computed value-based method)
1. Applicable cases: If the customs value cannot be determined by using the transaction value-based method prescribed in Articles 6, 8, 9 and 10 of this Circular, the customs value of the imported goods shall be determined according to the computed value. The computed value of imported goods includes:
a) The direct expense for producing the imported goods: the cost price or value of raw materials, expense for the manufacturing or other processing for producing the imported goods. Such expense is inclusive of:
a.1) The expenses specified in points (a), (b) and (c) clause 2 Article 13 of this Circular;
a.2) The value of aid as prescribed in point (d.1) clause 2 Article 13 of this Circular;
a.3) The value of the aid prescribed in point (d.1) clause 2 Article 13 of this Article shall be included in the customs value only when the manufacturer bears the cost of such product.
b) General expenses and the profits from the sale of goods of the same class or category as those of imported goods receiving valuation and made in the exporting country for selling to Vietnam. The general profits and expenses shall be considered overall when determining the computed value.
General expenses include all direct and indirect expenses for the manufacture and sale for exportation of goods but not calculated according to the provisions of point (a) of this clause.
c) The cost of transport, cost of insurance and the costs relating to the transport of imported goods specified in points (g) and (h) clause 2 Article 13 of this Circular.
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Thus, the computed value of imported goods in Vietnam includes the following expenses:
(1) The direct expense for producing the imported goods: the cost price or value of raw materials, the expense for the manufacturing or other processing for producing the imported goods.
(2) General expenses and the profits from the sale of goods of the same class or category as those of imported goods receiving valuation and made in the exporting country for selling to Vietnam.
The general profits and expenses shall be considered overall when determining the computed value.
(3) The cost of transport, cost of insurance and the costs relating to the transport of imported goods as prescribed at Points g and h, Clause 2, Article 13 of this Circular.
What are the bases for determining the computed value of imported goods in Vietnam?
The bases for determining the computed value of imported goods in Vietnam are specified in Clause 2, Article 11 of Circular 39/2015/TT-BTC as follows:
Customs valuation according to the computed value (hereinafter referred to as computed value-based method)
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2. Basis for determining computed value:
Bases for determining deductions are data recorded and reflected on the accounting documents and books of the manufacturer unless such data are not conformed with those obtained in Vietnam. These data shall be in accordance with those obtained from the manufacture and trade of imported goods of the same class or category made in the country of exportation for export to Vietnam.
3. Any accounting records or other documents of the entities living outside of Vietnam’s territory must not be inspected or examined for determining the computed value prescribed in this Article.
The verification of the information provided by the manufacturer serving the customs valuation prescribed in this Article may be carried out outside of Vietnam if agreed by the manufacturer. There shall be an advance notification of such verification to a competent agency of the relevant country for approval.
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Thus, the bases for determining the computed value of imported goods in Vietnam are data recorded and reflected on the accounting documents and books of the manufacturer unless such data do not conform with those obtained in Vietnam.
These data shall be under those obtained from the manufacture and trade of imported goods of the same class or category made in the country of exportation for export to Vietnam.
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