What are procedures for carrying out physical inspection of damaged goods in case taxpayers submit applications at the time of customs clearance in Vietnam?

What are procedures for carrying out physical inspection of damaged goods in case taxpayers submit applications at the time of customs clearance in Vietnam?

Pursuant to Point 1.a Article 11 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 procedures for carrying out physical inspection of damaged goods in case taxpayers submit applications at the time of customs clearance in Vietnam as follows:

a) Carry out physical inspection of damaged goods

a.1) In case of complete application, the processing officer proposes a physical inspection of damaged goods on the Duty exemption, reduction and refund system, and then transfer it to the head of division or the head of Customs Sub-Department for approval. After the head of Customs Sub-Department approves and assigns the physical inspection of the damaged goods, the Duty exemption, reduction and refund system shall notify the officer assigned to inspect, the head of division and the taxpayer.

The physical inspection of damaged goods shall be carried out in cases where it is necessary and there are conditions for inspection, except for cases where the damaged goods cannot be inspected, such as petrol, oil, liquids, and combustible substances; if the goods are completely damaged due to natural disaster or fire, the Confirmation of loss or damage of goods issued by the assessment service provider shall be prevail as per the law.

a.2) A physical inspection of damaged goods shall:

In addition to the checklist of physical inspection of goods in accordance with the law on customs, the physical inspection of goods shall conduct additional inspection of the following matters:

- Check the documents of export and import consignments that have damage;

- heck the confirmation of damage cause issued by the competent authority in the locality where the damage occurred (the fire certification of the local fire police agency where the fire occurred; the certification issued by one of the following relevant agencies or organizations: police offices of communes, wards and townships; People's Committees of communes, wards and townships; Management boards of industrial parks, Management boards of export processing zones; Economic zone management boards; Border checkpoint management boards; Airport authorities; Port Authorities where force majeure events occurred such as natural disasters, catastrophes, epidemics, unexpected accidents that cause damage to imported materials, machinery and equipment);

- Check the Confirmation of loss or damage of goods issued by an assessment service provider in accordance with the law on the quantity of damaged goods or the actual loss rate of the goods;

- At the end of the inspection, make an inspection record according to Form No. 10/TXNK Appendix I issued together with Circular No. 06/2021/TT-BTC, clearly stating the description, code, origin, quantity, types and specifications of damaged goods (except for damaged goods that cannot be physically inspected such as burned or exploded gasoline, chemicals, liquids, goods). In case there are many damaged goods, a detailed list shall be attached to the minutes.

a.3) After physically inspecting the damaged goods, the inspecting officer shall update the information in the draft inspection conclusion on the Duty exemption, reduction and refund system and then save it.

What are regulations on comparing results of physical inspection of damaged goods to process the duty reduction application in case taxpayers submit applications at the time of customs clearance in Vietnam?

Pursuant to Point 1.b Article 11 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 regulations on comparing results of physical inspection of damaged goods to process the duty reduction application in case taxpayers submit applications at the time of customs clearance in Vietnam as follows:

b) Compare results of physical inspection of damaged goods to process the duty reduction application.

b.1) The processing officer compares the results of the physical inspection of the damaged goods with the duty reduction application, checks the entire duty reduction application; insurance documents and other relevant documents to determine the extent of damage.

b.2) Check information about damaged goods (description, code, origin, quantity, type and specification of damaged goods) stored on the inspection conclusion.

b.3) Compare information about the proposed duty-reduced amount with data on VNACCS, VCIS, E-Customs System and related management programs.

What are procedures for carrying out application if the application is eligible for duty reduction in case taxpayers submit applications at the time of customs clearance in Vietnam?

Pursuant to Point 1.c Article 11 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 procedures for carrying out application if the application is eligible for duty reduction in case taxpayers submit applications at the time of customs clearance in Vietnam as follows:

c) If the application is eligible for duty reduction

The processing officer proposes grant of duty reduction and input the information in the draft duty reduction decision, then transfers it to the head of division, the head of Customs Sub-Department for approval.

After approval by the head of Customs Sub-Department, the Duty exemption, reduction and refund system will issue a customs management code with a structure consisting of 9 digits: the first two digits are the last two digits of the year in which the decision is issued, and 02 the next digits are the code of the Customs Department of the province or city where the decision is issued, the next 5 digits are the sequence of numbers that increase in each year. The processing officer shall print the draft duty reduction decision according to form No. 12, Appendix VII issued together with Decree No. 134/2016/ND-CP as amended and supplemented in Decree No. 18/2021/ND-CP, transfer it to the head of Customs Sub-Department to sign, then transfer to the clerical department to get the number, stamp and issue.

After the clerical department issues the decision, the officer scans and updates the duty reduction decision number (paper copy) attached to the application, the Duty exemption, reduction and refund system responds to the taxpayer, gives information to relevant divisions to grant the duty reduction.

What are procedures for carrying out application in case the goods in the application are not eligible for duty reduction or the application is ineligible for duty reduction in Vietnam?

Pursuant to Point 1.d Article 11 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 carrying out application in case the goods in the application are not eligible for duty reduction or the application is ineligible for duty reduction in Vietnam as follows:

d) In case the goods in the application are not eligible for duty reduction or the application is ineligible for duty reduction

The processing officer shall update the information that the goods in the application are not eligible for duty reduction or the application is ineligible for duty reduction, propose not to grant duty reduction, and transfer it to the head of division, the head of Customs Sub-Department for approval.

After the head of Customs Sub-Department approves, the processing officer gives feedback to the taxpayer the reason for not being eligible for duty reduction, and requires the taxpayer to declare and pay enough duty according to regulations.

Best regards!