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

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

Pursuant to Point 1.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 electronic application in case the application is ineligible for duty reduction or the application is incomplete or incorrect 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 Customs Sub-department responds through the Duty exemption, reduction and refund system, if the taxpayer does not provide additional information, the Customs Department of the province or city shall do as follows:

c.1.1) The processing officer shall update the draft notice stating that the application it is ineligible for duty reduction, clearly stating the reason that the application is ineligible for duty reduction or the application is incomplete or incorrect, and propose the head of division, the head of the Customs Department of the province and city for approval.

c.1.2) After the head of the Customs Department of the province or city approves, the processing officer shall update it into the Duty exemption, reduction and refund system, give feedback to the taxpayer and the Customs Sub-department that has 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 dated October 19, 2020 of the Government on elaboration of the Law on Tax Administration.

What are regulations on verifying electronic 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 1.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 electronic 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 proposes a physical inspection, inputs information on the decision on post-clearance inspection at the taxpayer's office, and sends it to the head of division, the head of the Customs Department of the province or city for approval. After the head of the Customs Department of the province or city approves, the system automatically sends a notice 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) The checklist of physical inspection of goods that have passed the customs supervision area shall comply with Article 143 of Circular No. 38/2015/TT-BTC as amended and supplemented in Clause 74, Article 1 of this Circular. Circular No. 39/2018/TT-BTC as follows:

c.2.3.1) Check all documents related to the damaged goods such as 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);

c.2.3.2) Check details and compare information on damaged goods declared by the taxpayer, the proposed duty-reduced amount with the description, code, origin, and quantity, types, specifications, unit prices and total value of damaged goods recorded in books, accounting vouchers and payment vouchers.

c.2.3.3) 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 an assessment service provider shall prevail.

c.2.3.4) In case the goods are imported raw materials, supplies, components, machinery and equipment eligible for duty reduction, but the export and import documents, accounting books and vouchers are completely damaged, the actual damage data cannot be determined, the Customs Department of the province or city where the duty reduction application is received shall request the tax authority of local government in writing to provide data from the tax authority's archival data system. After receiving the documents provided by the tax authority, the customs authority shall compare with the records and data on the system of the customs authority, the Confirmation of loss or damage of goods issued by an assessment service provider, and relevant documents to determine the amount of duty to be reduced.

c.2.4) After the result of inspection visit to the taxpayer's office is available, the processing officer inputs information about the inspection conclusion into the Duty exemption, reduction and refund system.

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 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 Department of province/city for approval.

After the head of Customs Department of province/city approves the draft duty reduction decision, 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 Department of province/city to sign, then transfer to the clerical department to get the number, stamp and issue.

The clerical department sends the duty reduction decision to the taxpayer and the Sub-department of Customs where the proposed duty-reduced amount arises for granting duty reduction according to Article 13 of this Procedure.

After the duty reduction decision is issued, the processing officer scans document and updates the duty reduction decision number (paper copy) attached to the application, the Duty exemption, reduction and refund system gives feedback to the taxpayer and the Customs Sub-Department where the proposed duty-reduce amount arises.

c.2.5.2) In case the application is determined ineligible 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 1.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 through the Duty exemption, reduction and refund system.

Best regards!