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

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

Pursuant to Point 1 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 procedures for inspection of the use of duty-free goods for goods subject to a duty-free list registration in Vietnam as follows:

1. Inspect the use of duty-free imported goods in accordance with Article 31a of Decree No. 134/2016/ND-CP, as supplemented in Clause 15, Article 1 of Decree No. 18/2021/ND-CP, in specific:

a) In case the project is in the process of capital construction

a.1) Regarding goods being raw materials and supplies used to manufacture machinery and equipment specified at Point a, Clause 11, Point b, Clause 15, Point a, Clause 16, Article 16 of the Law on Import and Export Duties, and the inspection shall be carried out within 60 days from the date of receipt of the project owner's notice on the completion of machinery and equipment manufacturing.

a.2) Regarding imported goods on the list of duty-free goods by combination or assembly line, the inspection shall be carried out within 60 days from the date of receipt of the project owner's notice on the completion of the installation of combination or assembly line.

b) In case the project has completed the capital construction process, the customs authority shall carry out the inspection according to the principles of risk management specified in Article 31a of Decree No. 134/2016/ND-CP added at Clause 15, Article 1 of Decree No. 18/2021/ND-CP.

Which authorities shall have power to inspect the use of duty-free goods for goods subject to a duty-free list registration in Vietnam?

Pursuant to Point 2 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 power to inspect the use of duty-free goods for goods subject to a duty-free list registration in Vietnam as follows:

2. Authority to inspect

a) The Director of the Customs Department of the province or city where the list of duty-free goods is received shall inspect the use of duty-free goods at the head office of the project owner for the cases mentioned at Point a, Clause 1 of this Article.

b) The Director of the Customs Department of the province or city where the list of duty-free goods is received shall inspect the use of duty-free goods according to the principle of risk management for the cases specified at Point b, Clause 1 of this Article.

What are regulations on procedures and matters of inspection of the use of duty-free goods for goods subject to a duty-free list registration in Vietnam?

Pursuant to Point 3 and 4, 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 procedures and matters of inspection of the use of duty-free goods for goods subject to a duty-free list registration in Vietnam as follows:

3. Procedures for inspection

Procedures for inspection shall comply with the procedures for post-customs clearance inspection in accordance with the law on customs.

4. Matters to be inspected

a) Inspect the duty-free list registration application; duty-free list; notify the use of duty-free imported goods and relevant documents;

b) Inspect the customs application of duty-free imported goods; check the name, quantity and type of duty-exempt imported goods, record the results of actual inspection of goods on the customs declaration and other relevant documents;

c) Inspect the actual use of duty-free imported goods and goods in stock;

d) Inspect customs applications for goods exempted from import duty but declared for change of use purpose;

dd) Inspect the quantity and type of damaged or lost goods or destroyed goods;

e) Inspect the production process, actual consumption rates for manufacturing in projects of importing duty-free goods as prescribed in Article 15 of Decree No. 134/2016/ND-CP as amended and supplemented in Clause 8, Article 1 of Decree No. 18/2021/ND-CP, Article 23 Decree No. 134/2016/ND-CP;

g) Inspect accounting books and vouchers, payment vouchers; the accounting for duty-free imported goods;

h) Inspect the production facility, production process, design drawings, actual consumption rates for manufacturing in case raw materials and supplies used for manufacturing are exempt from duty as prescribed at Point a, Clause 11, Point b, Clause 15, Point a, Clause 16, Article 16 of the Law on Import and Export Duties;

i) Check design drawings, technical documents, installation diagrams, synchronously inspect machinery and equipment that must be divided into multiple shipments without deduction according to the quantity of goods at the time of registration of the customs declaration;

k) Check relevant vouchers, documents and data (where necessary).

What are regulations on record keeping and report on the results of inspection of the use of duty-free goods 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 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.

Best regards!