When do enterprises qualify for preferential treatment in the customs sector in Vietnam? What are procedures for recognizing preferential enterprises in Vietnam?
When do enterprises qualify for preferential treatment in the customs sector in Vietnam? What are procedures for recognizing preferential enterprises in Vietnam?
When do enterprises qualify for preferential treatment in the customs sector in Vietnam?
Based on Article 42 of the Customs Law 2014, the conditions for applying preferential treatment are as follows:
Conditions for applying preferential treatment:
1. Enterprises qualify for preferential treatment when they meet the following conditions:
a) Compliance with customs laws and tax laws continuously for 2 years.
b) Achieving the prescribed annual import-export turnover.
c) Implementing electronic customs procedures, electronic tax procedures, and having an information technology program to manage the import-export activities connected to the customs authority.
d) Conducting payment transactions through banks.
e) Having an internal control system.
f) Complying with accounting and auditing regulations.
2. Preferential enterprises from countries or territories that have mutual recognition agreements with Vietnam regarding preferential enterprises are eligible for preferential treatment as provided by this Law.
3. The government shall specify the detailed conditions, procedures for recognition, extension, temporary suspension, suspension, preferential treatment, and management of preferential enterprises.
Therefore, enterprises qualify for preferential treatment when they meet the following conditions:
- Compliance with customs laws and tax laws continuously for 2 years.
- Achieving the prescribed annual import-export turnover.
- Implementing electronic customs procedures, electronic tax procedures, and having an information technology program to manage the import-export activities connected to the customs authority.
- Conducting payment transactions through banks.
- Having an internal control system.
- Complying with accounting and auditing regulations.
When do enterprises qualify for preferential treatment in the customs sector in Vietnam? What are procedures for recognizing preferential enterprises in Vietnam? - image from internet
What are regulations on the preferential treatment for businesses in the customs sector in Vietnam?
Based on Article 43 of the Customs Law 2014, the preferential treatment for businesses in the customs sector is regulated as follows:
- Exemption from document verification related to customs dossiers and exemption from physical inspection of goods during the customs procedures, except in cases of suspected legal violations or random inspections to assess compliance with the law.
- Allowed to complete customs procedures using incomplete customs declarations or substitute documents for customs declarations.
Within 30 days from the date of registration of an incomplete customs declaration or from the date of submitting substitute documents for customs declarations, the declarant must submit a complete customs declaration and the related documents of the customs dossier.
- Given priority when carrying out tax procedures for goods as prescribed by tax laws.
What are procedures for recognizing preferential enterprises in Vietnam?
According to the provisions of Clause 7 Article 1 of Decree 59/2018/ND-CP amending Clause 1 Article 11 of Decree 08/2015/ND-CP, the procedures for recognizing preferential businesses are as follows:
Step 1: Submission of documents
The business submits the application dossier to the General Department of Customs.
The application dossier for the recognition of preferential businesses includes:
- A request letter according to the template issued by the Ministry of Finance: 01 original copy.
- Reports on the export and import statistics and data of the business for the past 2 years according to the template issued by the Ministry of Finance: 01 original copy.
- Reports on compliance with customs laws, tax laws, and accounting laws for the past 2 years according to the template issued by the Ministry of Finance: 01 original copy.
- Audited financial reports for the past 2 years: 01 copy.
- Audit reports for the past 2 years: 01 copy.
- Conclusion of inspections for the past 2 years (if any): 01 copy.
- Description of the internal control system of the business, including a full description of the management, monitoring, and control procedures in the entire supply chain of the business's export and import activities: 01 copy.
- Certificates of commendation, quality certificates (if any): 01 copy.
Step 2: Evaluation, recognition of preferential businesses
Within 30 days from the date of receiving a complete dossier as required, the General Department of Customs evaluates and concludes on the recognition of preferential businesses.
In complex cases requiring the opinions of relevant ministries and sectors, the evaluation period may be extended but not exceeding 30 days.
If the business meets the requirements, the Director of the General Department of Customs issues a decision to recognize the business as a preferential business.
The decision to recognize preferential businesses is valid for a period of 3 years from the date of issuance and automatically extends for an additional 3 years if the business continues to meet all the requirements as stipulated.
