What are conditions for deductions on discounts of imported goods in Vietnam?

What are conditions for deductions on discounts of imported goods in Vietnam?

Pursuant to Clause 2.d Article 15 of the Circular 39/2015/TT-BTC stipulating as follows:

- Deductions can be made only when the following conditions are satisfied:

+ Discount according to the commercial level of the goods sale transaction;

+ Discount according to the sales;

+ Discount according to the form and time of payment.

- The discount is specified in writing before loading goods onto the transport vehicle in the exporting country;

- There is objective and quantifiable data conformable with the documents for separating such discount from the transaction value. These documents are enclosed with the customs declaration sheet;

- Payment is made through the bank using the L/C method or the TTR method for all the imported goods in the sale contract.

- Actual and declared value about the imported goods, commercial level, form and time of payment is conformable to the Announcement about discount of the seller.

What are procedures for consideration for discounts of imported goods in Vietnam?

Pursuant to Clause 2.d Article 15 of the Circular 39/2015/TT-BTC stipulating procedures for consideration for discounts of imported goods in Vietnam as follows:

Step 1: Declare in customs value declaration

Declare the discount in the criterion “detail of value declaration” on the import declaration or in the corresponding criterion on the customs value declaration but not carry out the deduction for discount on the customs value declaration; Calculate and pay the tax according to the value before the deduction for discount;

Step 2: Submit customs value declaration

Apply for consideration for deduction after the importation and payment for all the goods included in the sale contract.

Step 3: Inspect dossiers and documents

The customs authority receiving the application for deduction for discount from the customs declarant shall: Examine the application and the enclosed documents; Examine and compare the declared value and the actual one about the quantity, commercial level, form and time of payment with the Announcement about discount of the seller.

Step 4: Adjust the discounts

The Director of Customs Departments of provinces shall consider and decide to make deduction for the discount if the conditions specified in point (d.1) of this clause are satisfied. The value of the deduction shall be under 5% of the total value of goods and the declared value shall not be under the value of the reference price of the identical goods in the List of imported goods facing risk in value. Other cases of deduction shall be considered and decided by the Director of the General Department of Customs.

Other cases shall be considered and decided by the General Director of the General Department of Customs

Is discount included in the customs value declaration in Vietnam?

Pursuant to Clause 2 Article 15 of the Circular 39/2015/TT-BTC stipulating as follows:

Deductions

1. Deductions can be made only when the following conditions are satisfied:

a) There shall be objective and quantifiable data conformable with the relevant documents which are lawful and available at the time of valuation;

b) These deductions shall be included in the actual or future payment;

c) The deductions shall be conformable with the Vietnam’s legislation on accounting.

2. The deductions:

a) Costs for the activities arisen after the importation, including the cost for construction, architecture, installation, maintenance or technical assistance, technical consultancy, cost of supervision and similar costs;

b) The costs of transportation and insurance when the goods have been transported to the first importing checkpoint. If such costs are related to multiple goods without specifications, they shall be distributed according to the principle in points (g) and (h) Article 13 of this Circular;

c) The amounts of taxes, fees and charges payable in Vietnam included in buying price of imported goods. If the amounts of taxes, fees and charge concerning different goods without separation, they shall be distributed according to the rate of buying value of each type of goods.

d) Discount:

d.1) Deductions can be made only when the following conditions are satisfied:

d.1.1) The discount is any of the following cases:

d.1.1.1) Discount according to the commercial level of the goods sale transaction;

d.1.1.2) Discount according to the sales;

d.1.1.3) Discount according to the form and time of payment.

d.1.2) The discount is specified in writing before loading goods onto the transport vehicle in the exporting country;

d.1.3) There is objective and quantifiable data conformable with the documents for separating such discount from the transaction value. These documents are enclosed with the customs declaration sheet;

...

As regulations above, discount is included in one of deductions in the customs value declaration in Vietnam.

Best regards!