Can customs declarations that export procedures have been completed be requested for cancellation in Vietnam?

Can customs declarations that export procedures have been completed be requested for cancellation in Vietnam?

Pursuant to Point d, Clause 1, Article 22 of Circular 38/2015/TT-BTC as amended by Clause 11 Article 1 of Circular 39/2018/TT-BTC stipulates cancellation of customs declaration as follows:

1. Cases in which a customs declaration is cancelled:

d) Cases in which cancellation of a customs declaration is requested by the declarant:

d.1) The export procedures have been completed and goods have been taken into the CCA but the declarant wishes to take the goods back to the domestic market for repair or recycling;

d.2) The declaration of in-country export has been granted customs clearance or conditional customs clearance but the exporter or importers cancels the transaction;

d.3) Cases other than those mentioned in Points a.2, a.3, a.4, d.1 and d.2 of this Clause in which the export declaration has been granted customs clearance or conditional customs clearance but goods are not exported in reality;

d.4) The declarant provides in correct information on the declaration according to Section 3 of Appendix II hereof, unless the import declaration has been granted customs clearance or conditional customs clearance and goods have been released from the CCA; the export declaration has been granted customs clearance or conditional customs clearance and the goods have been exported in reality.

According to this Article, when the goods are defective in Vietnam, the customs declarant may request to cancel the customs declaration and return it to the domestic market for repair or recycling even though theexport procedures have been completed and goods have been taken into the CCA.

What are procedures for canceling a customs declaration on which goods have been taken into the CCA but are not exported in reality in Vietnam?

According to Clause 2, Article 22 of Circular 38/2015/TT-BTC, as amended by Clause 11 Article 1 of Circular 39/2018/TT-BTC, procedures for canceling a customs declaration are as follows:

a) Responsibilities of the declarant:

a.1) In the cases mentioned in Point b and Point d Clause 1 of this Article, the declarant shall complete form No. 06 in Appendix II hereof and send it through the e-customs system to the Sub-department of Customs where the declaration is registered.

In case of cancellation of a physical declaration, the declarant shall complete and submit 02 original copies of form No. 04/HTK/GSQL in Appendix V hereof to the Sub-department of Customs where the declaration is registered;

a.2) In the cases mentioned in Points d.1, d.2, d.3 Clause 1 of this Article, the declarant shall enclose the form with documents proving that the goods are not exported in reality.

In case of cancellation of an export declaration on which goods have been taken into the CCA but are not exported in reality, the declarant shall specify in the cancellation form that taxes on the goods have not been refunded or deducted by any domestic tax authority or customs authority and take responsibility for such content. If the customs authority or tax authority finds tax has been refunded or deducted, the declarant shall be dealt with as prescribed by law;

b) Responsibilities of the customs authority:

b.1) In the cases mentioned in Point a Clause 1 of this Article: Within 01 working day from the day on which the customs declaration is invalidated as prescribed in Point a or Point d Clause 1 of this Article, the Sub-department of Customs where the declaration is registered shall verify information on the e-customs system, cancel the customs declaration and inform the declarant of such cancellation through the e-customs system;

b.2) In the cases mentioned in Point c Clause 1 of this Article: Within 01 working day from the day on which the goods are re-exported or the confirmation of goods destruction is received, the Sub-department of Customs where the declaration is registered shall cancel the declaration;

b.3) In the cases mentioned in Point b or Point d Clause 1 of this Article:

b.3.1) Within 08 working hours from the receipt of the request for cancellation from the declarant, the customs official shall verify the reasons, conditions and information about the declaration on the e-customs system, request the Director of the Sub-department of Customs to consider approving the cancellation and inform the declarant through the e-customs system, settle taxes (if any) in accordance with Article 131 of this Circular and update on the risk management system, according to which the enterprise’s conformity with law will be assessed.

In the cases where the Sub-department of Customs where the declaration is registered receives information in writing about violations of law relevant to the shipment from other competent authorities, the export declaration that has been granted customs clearance or conditional customs clearance may only be cancelled after necessary actions have been taken and the shipment does not violate the law or the violations have been dealt with as prescribed by law;

b.3.2) If the cancellation of the declaration of temporarily imported/export goods affects information for management of quantity of goods temporarily imported/export on the e-customs system, the customs authority must update goods quantity on the e-customs system after the declaration is cancelled;

b.3.3) The declarant shall inform the Department of Taxation of the province where the enterprise applies for business registration if the exports have domestic origins (form No. 01/TB-XNKTC/GSQL in Appendix V hereof) or the Sub-department of Customs where the import declaration is registered if the exports have foreign origins (if the export declaration and import declaration are registered at different Sub-departments of Customs). Taxes on goods on the cancelled export declaration shall not be paid, refunded or deducted.

b.4) For physical declarations, in addition to the steps mentioned in Points b.1, b.2 and b.3 of this Clause, the customs official shall cross out the cancelled declaration, append signature and seal on it and archive it. Cancelled declarations shall be sorted by their issuance numbers

Thus, the customs declarant encloses documents proving the fact that the goods are not exported, and commits in the written request to cancel the customs declaration that the tax refund has not been made or the declaration of withholding or tax for the goods has not been made. Goods included in the customs declaration must be canceled with the domestic tax office or with the customs authority and take responsibility for the declared content in Vietnam.

Best regards!