What are regulations on verifying application in case the application is ineligible for duty reduction or the application is incomplete in Vietnam?

What are regulations on verifying application in case the application is ineligible for duty reduction or the application is incomplete in Vietnam?

Pursuant to Point 2.c.1 Article 12 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 verifying application in case the application is ineligible for duty reduction or the application is incomplete in Vietnam as follows:

c.1) In case the application is ineligible for duty reduction or the application is incomplete or incorrect, but within 05 working days from the date the taxpayer receives the notice of the Customs Sub-department, if the taxpayer does not provide additional information, the Customs Department of the province or city shall do as follows:

The processing officer shall make a report according to form No. 01/TT-TXNK issued together with the Process, a draft notice that the goods of the application is not eligible for duty reduction, clearly stating that the application is ineligible or incomplete/invalid, made according to the form No. 06/ TXNK Appendix I to Circular No. 06/2021/TT-BTC, and then report to the head of division, the head of Customs Department of province/city for approval.

After the head of the Customs Department of the province or city approves and signs the notice, the processing officer will transfer the notice to the clerical department to get the number, stamp, send it to the taxpayer, and the Customs Sub-Department that received the duty reduction application.

In case the goods eligible for duty reduction in the customs declaration are also exempt from duty, and there is no data on the payable duty amount (E.g.: Goods imported for outward processing), the Sub-department of Customs that received the duty reduction application shall notify that the application is ineligible for duty reduction or the taxpayer is ineligible for duty reduction, and require the taxpayer to declare and pay the full duty amount corresponding to the quantity of damaged goods not eligible for duty reduction as prescribed. After receiving such a notice, if the taxpayer fails to declare and pay duty as prescribed, the customs authority shall impose a fixed duty amount according to Clause 4, Article 17 of Decree No. 126/ 2020/ND-CP.

What are regulations on verifying application in case it is necessary to carry out physical inspection of goods that have passed the customs supervision area in Vietnam?

Pursuant to Point 2.c.2 Article 12 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 verifying application in case it is necessary to carry out physical inspection of goods that have passed the customs supervision area in Vietnam as follows:

c.2) Where it is necessary to carry out physical inspection of goods that have passed the customs supervision area to have sufficient grounds for duty reduction according to Clause 3, Article 32 of Decree No. 134/2016/ND-CP, as amended and supplemented in Clause 16, Article 1 of Decree No. 18/2021/ND-CP, the Customs Department of province/city shall do the following:

c.2.1) The processing officer makes a draft report according to the Form No. 01/TT-TXNK issued together with this Procedure, a draft decision on post-clearance inspection at the taxpayer's office according to the form No. 07/ TXNK Appendix I promulgated together with Circular No. 06/2021/TT-BTC, and then submit them to the head of department, head of Customs Department of province/city for approval. After the head of Customs Department of province/city approves, the processing officer will transfer the application to the clerical department for stamping and send it to the taxpayer.

c.2.2) The physical inspection of goods that have passed the customs supervision area shall comply with Clause 3, Article 32 of Decree No. 134/2016/ND-CP, as amended and supplemented in Clause 16, Article 1 of Decree No. 18/2021/ND-CP.

c.2.3) Checklists of physical inspection for goods that have passed the customs supervision area shall comply with Item c.2.3, point c, Clause 1 of this Article.

c.2.4) After receiving a report on the results of post-clearance inspection, the processing officer shall save the report in the duty reduction application.

c.2.5) Actions against inspection result

After the result of inspection visit to the taxpayer's office is available, the processing officer shall:

- Check the entire duty reduction application; insurance documents and other relevant documents to determine the extent of damage;

- Check the actual data of damaged goods recorded in the minutes of the official who inspects the actual goods that have passed the customs supervision area;

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

c.2.5.1) If the application is eligible for duty reduction

The processing officer shall make a report according to form No. 01/TT-TXNK issued together with the Process, a draft export or import duty reduction decision, made according to the form No. 12/ TXNK Appendix VII promulgated together with Decree No. 134/2016/ND-CP, as amended and supplemented in Decree No. 18/2021/ND-CP, and then submit them to the head of department, the head of Customs Department of province/city for approval.

After the head of Customs Department of province/city signs the decision on duty reduction, the processing officer shall issue a customs management code according to a structure consisting of 10 digits: 02 first digits are the code of the Customs Department of province/city, 02 following digits are the last 02 digits of the year of issuance of the decision, the next 02 digits are the ordinal numbers according to the sequence of natural numbers calculated for each year, the next 04 digits are the duty reduction code for the case that the taxpayer submits duty reduction application at the time of customs clearance (GT02).

After issuing the customs management code, the processing officer will transfer it to the clerical department to get the number, stamp, and send the decision on duty reduction to the taxpayer and the Sub-department of Customs where the proposed duty reduction arises to grant duty reduction as prescribed in Article 13 of this Procedure.

c.2.5.2) In case the goods in the application are ineligible for duty reduction or the application is not eligible for duty reduction

Customs Departments of provinces and cities shall process duty reduction applications according to Item c.1 point c, of this Clause 1.

Which authorities shall receive duty reduction applications in case taxpayers submit applications after the time of customs clearance in Vietnam?

Pursuant to Point 2.a Article 12 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 authorities receiving duty reduction applications in case taxpayers submit applications after the time of customs clearance in Vietnam as follows:

a) Customs Departments of provinces and cities shall receive duty reduction applications transferred by Customs Sub-departments by post or in person.

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