What are actions after checking application for the duty-free list applied to exported and imported goods in Vietnam?

What are actions after checking application for the duty-free list applied to exported and imported goods in Vietnam?

Pursuant to Article 3 Section 1 Chapter I of the Procedures for duty exemption, duty reduction, duty refund, duty cancellation, handling of overpaid duties, late payment interests, and fines for exported and imported goods issued together with the Decision 3394/QĐ-TCHQ in 2021 stipulating actions after checking application for the duty-free list applied to exported and imported goods in Vietnam as follows:

1. For the electronic duty-free list sent through the VNACCS

a) In case of requesting the project owner to supplement, explain

a.1) The processing officer shall make a Report form No. 01/TT-TXNK issued together with this Procedure together with the application and report to the head of division and submit it to the head of unit for approval.

a.2) Input instructions for supplementation and explanation into the System and give feedback to the project owner via CTL (Code I).

a.2.1) In case the project owner makes supplementation and explanation

In case the project owner or the person authorized by the project owner explains in person to the customs authority, the processing officer shall make a working record using form No. 12/TXNK Appendix I issued with Circular No. 06/2021/TT-BTC dated January 22, 2021 of the Minister of Finance on guidelines for the Law on Tax Administration dated June 13, 2019 on tax administration for exported and imported goods.

After the project owner makes supplementation and explanation, the processing officer shall follow the instructions in Articles 2 and 3 of this Procedure.

a.2.2) In case the project owner fails to make supplementation or explanation

After 05 working days from the date the customs authority responds through the VNACCS, if the project owner fails to make any supplementation or explanation, the customs authority shall notify the project owner of the ineligibility for receiving the duty-free list.

b) Eligibility for receiving the duty-free list

b.1) The processing officer shall make a report form No. 01/TT-TXNK issued together with this Procedure together with the application and report to the head of division and submit it to the head of unit for approval.

b.2) Issue a general management code according to the following structure: Code of applicant for registration of duty-free list-year of registration-ordinal number (Example: 34CC-2015-001).

General management code is the code assigned to each duty-free project. Each project can have multiple electronic duty-free lists. The issuance of the general management code is monitored by an external register of the VNACCS and updated in the "General management code" entry when approving the electronic duty-free list.

b.3) Input processing result information into VNACCS and give feedback to project owner via CTL (code A).

b.4) In case it is important to note that the customs authority where the import procedures are carried out to check details (Example: Checking the eligibility requirements pertaining to creating fixed assets; the goods that have not been produced domestically; ...) The processing officer shall:

- In the report made according to form No. 01/TT-TXNK issued together with this Procedure, the processing officer shall report to the head of unit the contents that need to be noticed by the customs authority where customs procedures are carried out in order to check details;

- In the notes section of the customs authority on the duty-free list, the processing officer shall clearly specify the contents to be noted for the customs authority where the import procedures are carried out to check details.

c) In case the duty-free list is not accepted

c.1) The processing officer shall make a Report form No. 01/TT-TXNK issued together with this Procedure together with the application and report to the head of division and submit it to the head of unit for approval.

c.2) Input information into the VNACCS about non-receipt of the duty-free list (goods not eligible for duty exemption) and respond to the project owner via CTL (code N).

The processing officer transfers all the documents attached to the duty-free list registration application to the clerical department to send back to the project owner.

2. For the paper duty-free list

a) In case of requesting the project owner to supplement, explain

a.1) The processing officer shall make a report according to form No. 01/TT-TXNK issued together with the Process, a draft notice to send to the project owner about the supplementation and explanation of the application, made according to the form No. 05/ TXNK Appendix I promulgated together with Circular No. 06/2021/TT-BTC with the application and report to head of division for submission to the head of unit for approval.

a.2) The processing officer shall transfer the notice of supplementation and explanation of the duty-free list registration application to the clerical department to send to the project owner.

a.2.1) In case the project owner makes supplementation and explanation

In case the project owner or the person authorized by the project owner explains in person to the customs authority, the processing officer shall make a working record using form No. 12/TXNK Appendix I issued with Circular No. 06/2021/TT-BTC.

After the project owner has supplemented and explained the duty-free list registration application, the processing officer shall perform the tasks sequentially according to the instructions in Articles 2 and 3 of this Procedure.

a.2.2) In case the project owner fails to make supplementation and explanation

After 05 working days from the date the project owner receives the paper notification from the customs authority about the supplementation and explanation of the application, but the project owner does not make the supplementation or explanation, the customs authority shall notify the project owner of insufficient grounds to receive the duty-free list.

b) Eligibility for receiving the duty-free list

b.1) The processing officer shall make a Report form No. 01/TT-TXNK issued together with this Procedure together with the application and report to the head of division and submit it to the head of unit for approval.

After the head of unit approves 02 duty-free lists and 01 original of the deduction monitoring sheet, the officer shall input the monitoring book of the duty-free list, the deduction monitoring sheet and transfer the clerical department to stamp, issue and return to the project owner 01 original of the duty-free list, 01 original of the deduction monitoring sheet; save 01 original of the duty-free list.

Notes: In case of receiving the duty-free list registration application by combination or assembly line, only the duty-free list is required, the deduction monitoring sheet is not required.

b.2) In case it is important to note that the customs authority where the import procedures are carried out to check details (Example: Checking the eligibility requirements pertaining to creating fixed assets; the goods that have not been produced domestically; ...) The processing officer shall:

- In the report made according to form No. 01/TT-TXNK issued together with this Procedure, the processing officer shall report to the head of unit the contents that need to be noticed by the customs office where customs procedures are carried out in order to check details;

- In the notes section of the customs authority on the duty-free list, the processing officer shall clearly specify the contents to be noted for the customs authority where the import procedures are carried out to check details.

c) In case the duty-free list is not accepted

The processing officer shall make a report according to form No. 01/TT-TXNK issued together with the Process, a draft notice to send to the project owner about non-receipt of the duty-free list, made according to the form No. 06/ TXNK Appendix I promulgated together with Circular No. 06/2021/TT-BTC with the application and report to head of division for submission to the head of unit for approval.

After the head of unit approves, the processing officer will transfer the notice with the entire duty-free list registration application to the clerical department to send to the project owner.

What are procedures for checking the completeness and validity of the application for the duty-free list applied to exported and imported goods in Vietnam?

Pursuant to Clause 1 Article 2 Section 1 Chapter I of the Procedures for duty exemption, duty reduction, duty refund, duty cancellation, handling of overpaid duties, late payment interests, and fines for exported and imported goods issued together with the Decision 3394/QĐ-TCHQ in 2021 stipulating procedures for checking the completeness and validity of the application for the duty-free list applied to exported and imported goods in Vietnam as follows:

Officers assigned to process applications (including the electronic duty-free list and paper duty-free list) shall do the following:

1. Check the completeness and validity of the application

Check the duty-free list registration application in accordance with Clause 3, Article 30 of Decree No. 134/2016/ND-CP as amended and supplemented in Clause 13, Article 1 of Decree No. 18/2021/ND-CP, in specific:

a) Check the completeness of the documents in the duty-free list registration application;

b) Check the validity of original, photocopy.

What are procedures for checking the details of the duty-free list registration application and compare with relevant law provisions regarding exported and imported goods in Vietnam? 

Pursuant to Clause 2 Article 2 Section 1 Chapter I of the Procedures for duty exemption, duty reduction, duty refund, duty cancellation, handling of overpaid duties, late payment interests, and fines for exported and imported goods issued together with the Decision 3394/QĐ-TCHQ in 2021 stipulating procedures for checking the details of the duty-free list registration application and compare with relevant law provisions regarding exported and imported goods in Vietnam as follows:

2. Check the details of the duty-free list registration application and compare with relevant law provisions

a) Check the contents in the duty-free list registration application

a.1) Information about the enterprise: Name, address, TIN of the enterprise, business lines and fields;

a.2) Information about the project: Project name, objectives, scale and capacity of the project, field and area of ​​implementation of the investment project, time limit for disbursement of the project, number of employees of the project (if any), economic and technical evaluation, technical documents of the project;

a.3) Information about duty-free imported goods: Name, quality specification, quantity, type, unit, expected value/value, and corresponding duty-free code on the duty-free list;

a.4) Information in relevant documents specified in Clause 3, Article 30 of Decree No. 134/2016/ND-CP, as amended and supplemented in Clause 13, Article 1 of Decree No. 18/2021/ND-CP;

a.5) Electronic data on the data processing system of the customs authority, other relevant documents and data collected by the customs authority (if any).

b) Check duty exemption conditions

b.1) Check if the goods on the duty-free list are eligible for investment incentives, tax incentives and eligible for duty-free list registration;

b.2) Check if the goods on the duty-free list are eligible for the investment business lines, objectives, scale and capacity of the project, production facilities, and use of duty-free goods; consistent with the technical and economic evaluation, the project's technical documents and other relevant documents (if any); has corresponding quantities, categories and value of the agricultural products to be harvested stated in the contract or agreement with the Cambodian party on investment assistance, farming and receiving agricultural products;

b.3) Check the goods on the duty-free list, if they are eligible for duty exemption because they meet the condition that they cannot be produced domestically, they must not be on the list of goods that can be produced domestically according to regulations and on guidelines for documents of the Ministry of Planning and Investment;

b.4) Compare with the grounds for determining duty-free imported goods according to regulations of relevant ministries and central authorities;

b.5) ​​Compare with guiding documents of the Ministry of Finance and the General Department of Customs (if any).

Best regards!