Shall gifts such as medical equipment be exempt from duties in Vietnam?

Shall gifts such as medical equipment be exempt from duties in Vietnam

Pursuant to Clause 2 Article 8 of the Decree 134/2016/NĐ-CP (amended by Clause 3 Article 1 of the Decree 18/2021/NĐ-CP) stipulating exemption of duties on gifts in Vietnam as follows:

- Gifts given by a foreign organization or individual to a Vietnamese organization or individual; gifts given by a Vietnamese organization or individual to a foreign organization or individual whose customs value does not exceed VND 2,000,000 or whose custom value exceeds VND 2,000,000 but duty on which is under VND 200,000 shall be exempt from duties up to 04 times per year.

- Gifts given by a foreign organization or individual to a Vietnamese organization whose operating cost is covered by state budget as prescribed by state budget laws; gifts given for humanitarian or charitable purposes whose customs value does not exceed VND 30,000,000 shall be exempt from duties up to 04 times per year.

Where duty-free allowance is exceeded by an organization whose operating cost is covered by state budget, duty exemption shall be decided by the Ministry of Finance on a case-by-case basis.

- Gifts given by a foreign organization or individual to a Vietnamese individual that are drugs or medical equipment for people having fatal diseases specified in Appendix IV hereof whose customs value does not exceed VND 10,000,000 shall be exempt from duties up to 4 times per year.

As regulaitons above, in your case, your brother is suffering from Rheumatoid Arthritis, which is specified in Appendix IV. You are residing overseas and sending medical equipment for your brother, so the gifts shall be exempt from duties up to 4 times per year and the customs value does not exceed VND 10,000,000.

What are regulations on procedures and documentation for duty exemption in Vietnam?

Pursuant to Clause 3 Article 8 of the Decree 134/2016/NĐ-CP (amended by Clause 2.a Article 2 of the Decree 18/2021/NĐ-CP) stipulating as follows:

- A customs dossier defined by customs law;

- A donation agreement if the gift recipient is an organization: 01 certified true copy bearing the seal of such organization.

The recipient who is a natural person shall declare the gifts and information about the overseas giver on the customs declaration, and take responsibility for the truthfulness and adequacy of such information;

- 01 original copy of the decision on exemption of duties issued by the Minister of Finance if the gifts exceed the duty-free allowance;

- 01 original copy of the written permission issued by the superior authority for receipt and use of the duty-free goods or a document proving that the organization’s operating cost is covered by state budget (if the recipient is an organization whose operating cost is covered by state budget);

- 01 original copy of the document issued by the President of the People’s Committee of the province if the gift is given for humanitarian or charitable purposes.

Best regards!