What are actions against inspection results of the use of duty-free goods for goods subject to a duty-free list registration in Vietnam?

What are actions against inspection results of the use of duty-free goods for goods subject to a duty-free list registration in Vietnam?

Pursuant to Point 6 Article 9 Section II 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 against inspection results of the use of duty-free goods for goods subject to a duty-free list registration in Vietnam as follows:

6. Actions against inspection results

The customs authority shall collect duties, late payment interest and fines (if any) in the following cases:

a) Goods that are not exempt from duties according to the Law on Import and Export Duties but declared to be exempt from duties and have been cleared according to the taxpayer's declaration;

b) Goods which have been exempted from duties but the project owner uses them for improper purposes of duty exemption, transfers or sold domestically instead of being re-exported without declaring to the customs authority or declaring to the customs authority after the transfer is made or the goods are sold domestically;

c) Goods being materials and supplies that are imported more than 5 years from the date of commencement of production as prescribed in Article 15 of Decree No. 134/2016/ND-CP as amended and supplemented in Clause 8 of Article 2. 1 Decree No. 18/2021/ND-CP, Article 23 Decree No. 134/2016/ND-CP;

d) Imported goods do not conform to the duty-free list registered with the customs authority;

dd) Goods imported in other cases that violate the provisions of law on tax, tax administration, and law on customs.

What are regulations on record keeping and report on the results of inspection of the use of duty-free goods for goods subject to a duty-free list registration in Vietnam?

Pursuant to Point 7 Article 9 Section II 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 record keeping and report on the results of inspection of the use of duty-free goods for goods subject to a duty-free list registration in Vietnam as follows:

7. Record keeping and report on the results of inspection of the use of duty-free goods

a) Documents of inspection of the use of duty-free goods and results of handling of inspection results shall be kept together with the duty-free list registration applications at the unit.

b) In case the inspection results determine that the project owner has violated the provisions of the law on tax, tax administration, and the law on customs, the Customs Department of the province or city must report the inspection results and the results of handling inspection to the General Department of Customs within 15 days from the date of obtaining results.

What are priority criteria for customs authorities to select for inspection according to the principles of risk management of duty-free goods for goods subject to a duty-free list registration in Vietnam?

Pursuant to Point 5 Article 9 Section II 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 priority criteria for customs authorities to select for inspection according to the principles of risk management of duty-free goods for goods subject to a duty-free list registration in Vietnam as follows:

5. Priority criteria for customs authorities to select for inspection according to the principles of risk management, applied in succession as follows:

a) Criterion pertaining to the duty-exempt amount

Applying the principle of duty-exempt amount from high to low is as follows:

a.1) Investment projects with a duty-exempt amount of over VND 10 billion;

a.2) Investment projects with a duty-exempt amount of over VND 5 billion to VND 10 billion;

a.3) Investment projects with a duty-exempt amount of over VND 1 billion to VND 5 billion;

a.4) Investment projects with a duty-exempt amount from VND 100 million to VND 1 billion;

a.5) Investment projects with a duty-exempt amount of less than VND 100 million.

b) Criterion pertaining to the enterprise's law observance process

Complying with the enterprise evaluation criteria issued together with Decision No. 623/QD-TCHQ dated December 31, 2020 on the promulgation of a set of indicators of risk management criteria in customs operations.

c) Criterion pertaining to project

c.1) Investment projects in rural areas employing 500 or more employees (excluding part-time workers and employees with less than 12-month labor contracts);

c.2) Projects with duty-free imported goods subject to special excise duty;

c.3) A project that imports duty-free goods, but one year later than of the project's official operation plan stated on the investment registration certificate/enterprise registration certificate/equivalent document, the project is not officially put into operation.

c.4) A project that shows signs of using duty-free goods for improper purposes;

c.5) Projects detected by competent authorities that show signs of violation of tax laws, customs laws, and investment laws.

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