Vietnam: What is a customs declaration? Principles to declare customs declarations? Is a misrepresentation of customs declaration criminal liability?
What is a customs declaration in Vietnam?
Customs Declaration is a document in which the goods owner (exporter or importer) or vehicle owner must declare full details of the shipment when exporting or importing into and leaving the territory of Vietnam.
When an enterprise wishes to export or import a certain item, declaring a customs declaration is one of the mandatory steps to take. If the Customs declaration is not transmitted, all activities related to import and export will be stopped.
What are the principles when declaring customs declarations in Vietnam?
Pursuant to the provisions of Article 29 of the 2014 Customs Law on customs declaration, according to which:
- Customs declarants shall sufficiently, accurately and clearly fill all items in customs declarations.
- Customs declaration shall be made electronically, except that customs declarants may fill in paper customs declarations as prescribed in regulations of the Government.
- Registered customs declarations are valid for customs formalities. Policies on goods management and taxes on imported goods and exported goods are applied when the customs declaration forms are registered, unless otherwise provided by the law on import duty and export duty.
- If a customs declarant found that the declaration contains errors, he/she may make an additional declaration in the following cases:
+ For goods undergone customs formalities: Before the customs authority notifies the direct examination of the customs document;
+ For goods granted clearance: Within 60 days from the date of customs clearance and before the day on which customs authority decides to conduct post-customs clearance inspection, unless additional declaration are related to the import or export permit; specialized inspection in terms of quality, health, culture, animal quarantine, plant quarantine and food safety.
If customs declarants detect errors in their customs declarations when the time limit prescribed at Points a and b of this Clause has expired, they shall make additional declaration and their errors shall be handled in accordance with the laws on taxes and handling of administrative violations.
- Customs declarants may submit incomplete declaration or documents in substitution of declaration for customs clearance and shall complete declaration forms within the time limit prescribed in Articles 43 and 50 of this Law, and may make a single customs declaration for multiple importation or exportation during a certain period of time for certain goods items.
- For goods which are undergone customs formalities or for which customs formalities have been completed but which are still subject to customs supervision, customs declarants may change the form of importation or exportation in accordance with the law on customs.
Vietnam: What is a customs declaration? Principles to declare customs declarations? Is a misrepresentation of customs declaration criminal liability?
Is a misrepresentation of customs declaration criminal liability in Vietnam?
For subjects who are individuals
Pursuant to the provisions of Point e, Clause 1, Article 200 of the 2015 Criminal Code (amended by Point a, Clause 47, Article 1 of the Law on Amendment of the Criminal Code 2017) provides for tax evasion as follows:
“Tax evasion
Any person who commits any of the following acts of tax evasion with an amount of evaded tax from VND 100,000,000 to under VND 300,000,000 or under VND 100,000,000 while having incurred an administrative penalty for tax evasion or having an unspent conviction for any of the offences specified in Article 188, 189, 190, 191, 192, 193, 194, 195, 196, 202, 250, 251, 253, 254, 304, 305, 306, 309 and 311 hereof shall be liable to a fine of from VND 100,000,000 to VND 500,000,000 or face a penalty of 03 - 12 months' imprisonment:
…
e) Making incorrect declaration of exported or imported goods without making an additional declaration after customs clearance are granted;”
Thus, the act of misrepresenting customs declarations is considered tax evasion and will be criminally handled if the following conditions are fully met:
- Do not file additional tax returns after the goods have been cleared
- In one of the following cases:
+ The amount of tax evasion from VND 100,000,000 to less than VND 300,000,000; or
+ The amount of tax evasion is less than VND 100,000,000 but has been sanctioned for administrative violations of tax evasion or has been convicted of tax evasion or for one of the crimes specified in Articles 188, 189, 190, 191, 192, 193, 194, 195, 196, 202, 250, 251, 253, 254, 304, 305, 306, 309 and 311 of the 2015 Penal Code, have not been cleared of criminal convictions but also violations.
If the act of misrepresenting the customs declaration fully meets the above conditions, it may be fined from VND 100,000,000 to VND 500,000,000 or imprisoned from 03 months to 01 year.
For tax evasion with an amount of 300 million VND or more or acts of high risk nature (such as organized, dangerous recidivism,...) can also be fined from 500 million to 4.5 billion VND or imprisoned from 01 to 07 years.
For legal entities
The act of misrepresenting customs declarations of legal entities will be criminally handled for tax evasion when the following conditions are met:
- Do not declare additional tax returns after the goods are cleared;
- In one of the following cases:
+ The amount of tax evasion from VND 200,000,000 to less than VND 300,000,000; or
+ The amount of tax evasion is from VND 100,000,000 to less than VND 200,000,000 but has been sanctioned for administrative violations of tax evasion or has been convicted of this crime or for one of the crimes specified in Articles 188, 189, 190, 191, 192, 193, 194, 195 and 196 of the 2015 Penal Code, has not been cleared of criminal convictions but also violated.
Legal entities that commit tax evasion will be fined or permanently suspended depending on the extent and nature of the act.
Note: in case an individual incorrectly declares a customs declaration, but has made additional declarations before the customs office detects it or before the decision to inspect the goods after customs clearance, it will not be criminally handled.
Thus, the above is the answer to the issue of whether the wrong customs declaration is in prison or not that you can refer to.
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