When does the custom authority apply enforcement by suspension of customs procedures for export and import in Vietnam?
- Is exported goods eligible for tax exemption subject to the measure of suspension of customs procedures for export and import in Vietnam?
- When does the custom authority apply enforcement by suspension of customs procedures for export and import in Vietnam?
- What are the applications for resumption of customs procedures in Vietnam?
Is exported goods eligible for tax exemption subject to the measure of suspension of customs procedures for export and import in Vietnam?
Pursuant to Clauses 1 and 2, Article 33 of Decree 126/2020/ND-CP, there are regulations on the subjects of application of enforcement by suspension of customs procedures for export and import in Vietnam as follows:
Enforcement by suspension of customs procedures for export and import
1. Enforcement subjects
a) This enforcement measure will be implemented when the enforcement measures specified in Point a and Point b Clause 1 Article 125 of the Law on Tax Administration cannot be implemented, tax is not fully collected after these measures are implemented, in the cases specified in Clause 3 Article 125 of the Law on Tax Administration, or at the request of tax authorities.
b) Tax decisions include: decision on imposition of administrative penalties for tax offences; tax liability imposition notices and decisions; tax debt notices; refund disgorgement decisions; extension decisions; permissions for payment by instalments; decisions on invalidation of tax debt freezing decision; decisions on implementation of remedial measures in accordance with tax administration laws; decision on payment of damages; other administrative tax decisions prescribed by law.
c) In case the customs authority imposes tax liability after customs clearance is granted but the taxpayer or the guarantor fails to pay the tax within 90 days from the payment deadline, the customs authority shall implement tax enforcement measures as per regulations.
2. Customs procedures shall not be suspended in the following cases:
a) The exports are exempt from tax, not subject to tax or subject to 0% export duty.
b) The exports or imports are meant to serve defense and security, natural disaster management, epidemic control, emergency aid, humanitarian aid, grant aid.
Accordingly, although falling into the case specified in Clause 1, for export goods subject to tax exemption, the measure of suspending customs procedures will not be applied.
When does the custom authority apply enforcement by suspension of customs procedures for export and import in Vietnam?
When does the custom authority apply enforcement by suspension of customs procedures for export and import in Vietnam?
Pursuant to Clause 5, Article 33 of Decree 126/2020/ND-CP stipulating the cases of enforcement by temporary suspension of customs procedures for export and import in Vietnam are as follows:
Enforcement by suspension of customs procedures for export and import
...
5. Customs procedures shall be resumed when:
a) The taxpayer no longer owes overdue tax, late payment interest and fines of other shipments;
b) The taxpayer pays tax before the shipment is granted customs clearance while customs procedures are being carried out.
c) The tax debt payment is guaranteed as per regulations.
Accordingly, the conditions for the competent authority to suspend the application of the measure of enforcement by suspension of customs procedures for export and import is when the taxpayer meets all the requirements:
- The taxpayer no longer owes overdue tax, late payment interest and fines of other shipments;
- The taxpayer pays tax before the shipment is granted customs clearance while customs procedures are being carried out.
- The tax debt payment is guaranteed as per regulations.
What are the applications for resumption of customs procedures in Vietnam?
In Clause 5, Article 33 of Decree 126/2020/ND-CP, there are regulations on procedures for resumption of customs procedures:
- The taxpayer shall submit a written request for resumption of customs procedures to the Customs Department to which tax is owed together with the guarantee letter of the credit institution.
- The Customs Department shall verify the accuracy and adequacy of the documents and send a proposal to General Department of Customs within 05 working days from the day on which adequate documents are received.
If the documents are not adequate, the customs authority shall, within 03 working days from the day on which the documents are received, request the taxpayer to provide supplementary documents.
- Pursuant to regulations of Clause 5 of this Article and in consideration of opinions of relevant units (if any), General Department of Customs shall submit a report to the Ministry of Finance within 07 working days from the day on which adequate documents are received.
- The Ministry of Finance shall consider permitting the resumption of customs procedures on a case-by-case basis and notify General Department of Customs within 05 working days from the day on which the report is received.
- The enforcing customs authority shall resume customs procedures if permitted in writing by the Ministry of Finance.
If the taxpayer fails to fulfill tax obligations after customs procedures are resumed, penalties shall be imposed against the taxpayer.
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