What documents are included in the application for receipt of duty reduction applied to imported and exported goods in Vietnam?

What documents are included in the application for receipt of duty reduction applied to imported and exported goods in Vietnam?

Pursuant to Point 1 Article 10 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 receipt of duty reduction applications in Vietnam as follows:

1. Receipt of duty reduction applications

a) Duty reduction cases shall comply with 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, including:

a.1) Duty reduction applications submitted at the time of customs procedures;

a.2) Duty reduction applications submitted after the time of customs procedures.

b) Receipt of application

Duty reduction applications comply with Clause 1, Article 15 of Circular No. 06/2021/TT-BTC.

The Sub-department of Customs where the import and export declaration that generates the reduced duty amount proposed by the taxpayer is registered, is responsible for receiving the duty reduction application.

b.1) Application sent through the Duty exemption, reduction and refund system (hereinafter referred to as electronic application)

The taxpayer's application for duty reduction is sent through the Duty exemption, reduction and refund system of the customs authority according to the items in form No. 7 Appendix II to Circular No. 06/2021/TT-BTC.

The Duty exemption, reduction and refund system automatically receives the duty reduction application and automatically responds that the duty reduction application of the taxpayer has been sent to the customs authority.

b.2) Paper application

If there is a problem with the Duty exemption, reduction and refund system, the taxpayer shall send an application for duty reduction by post or send it in person to the customs authority using form No. 15/TXNK Appendix I issued with Circular No. 06/2021/TT-BTC.

c) Assignment of processing applications

c.1) Electronic application

Heads of Customs Sub-Departments shall assign duty reduction applications to relevant entities.

c.2) Paper application

The clerical department receives, stamps "Incoming document", enters the official document book as in the case of receiving incoming document, and transfers it to the head of Customs Sub-Department to assign duty reduction applications to relevant entities.

d) Determining the time to submit the duty reduction application

d.1) Electronic application

The processing officer shall update information on the Duty exemption, reduction and refund system to the time of submission of the duty reduction application as follows:

- Duty reduction applications submitted at the time of customs procedures;

- Duty reduction applications submitted after the time of customs procedures.

The head of division, the head of unit confirms the time to submit duty reduction applications on the Duty exemption, reduction and refund system.

d.2) Paper application

After receiving the application, the processing officer shall certify the time of submitting the duty reduction application on the duty reduction application form:

- Duty reduction applications submitted at the time of customs procedures;

- Duty reduction applications submitted after the time of customs procedures.

What are procedures for inspecting duty reduction electronic application applied to imported and exported goods in Vietnam?

Pursuant to Point 2.a Article 10 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 inspecting duty reduction electronic application applied to imported and exported goods in Vietnam as follows:

a) Electronic application

a.1) Preliminary inspection

a.1.1) In case the taxpayer sends the application to the wrong address of the competent customs authority, the processing officer shall make a report using the Form No. 01/TT-TXNK attached to this Procedure, draft notice to the taxpayer not to receive their duty reduction application according to form No. 04/TXNK Appendix I issued together with Circular No. 06/2021/TT-BTC, submit to the Head of division, Head of Sub-department for approval. After the head of Customs Sub-Department approves, the processing officer will transfer the application to the clerical department for stamping and send it to the taxpayer.

a.1.2) In case the application is determined ineligible for duty reduction

- For the case that the duty reduction application is submitted at the time of customs clearance, the processing officer shall input the reason for notifying the application is ineligible for duty reduction on the Duty exemption, reduction and refund system, and then transfer it to the head of division, head of Customs Sub-Department for approval. After the head of Customs Sub-Department approves, the processing officer shall give feedback to the taxpayer on the Duty exemption, reduction and refund system.

- For duty reduction applications submitted after the time of customs clearance, the processing officer shall input the information in the report to transfer the application to the superior customs authority, then transfer them to the head of division, head of Sub-department for approval. After the head of Sub-department approves, the Duty exemption, reduction and refund system will transfer the application to the superior customs authority. Customs Departments of provinces and cities shall process duty reduction applications according to Item c.1 point c, Clause 1, Article 12 of this Procedure.

a.2) Check the completeness and validity of the application

The processing officer shall check if the duty reduction application is complete and valid according to Clause 1, Article 15 of Circular No. 06/2021/TT-BTC.

a.2.1) If the duty reduction application is complete and valid

- For duty reduction applications submitted at the time of customs clearance, the processing officer shall take the next steps in Clause 1, Article 11 of this Process.

- For duty reduction applications submitted after the time of customs clearance, the processing officer shall input the information in the report to transfer the application to the superior customs authority, then transfer them to the head of division, head of Sub-department for approval. After the head of Sub-department approves, the Duty exemption, reduction and refund system will transfer the application to the superior customs authority. Customs Departments of provinces and cities shall process duty reduction applications according to Item c.2 point c, Clause 1, Article 12 of this Procedure.

a.2.2) If the duty reduction application is incomplete and invalid

The processing officer shall input the taxpayer's information that needs to be added to the Duty exemption, reduction and refund system, and then transfer it to the head of division, the head of Customs Sub-Department for approval. After being approved, the processing officer shall give feedback to the taxpayer. Within 03 working days from the date of receipt of the application, the customs authority must notify the taxpayer of the supplementation needed.

a.2.2.1) In case the taxpayer provides sufficient information, the processing officer shall comply with Item a.2.1, Point a of this Clause.

a.2.2.2) After 05 working days from the date the customs authority responds through the Duty exemption, reduction and refund system, if the taxpayer fails to provide additional information, the Sub-department of Customs shall:

- For the case that the duty reduction application is submitted at the time of customs clearance, the processing officer shall input the reason for notifying that the application is ineligible for duty reduction on the Duty exemption, reduction and refund system, and then transfer it to the head of division, head of Customs Sub-Department for approval. After the head of Customs Sub-Department approves, the processing officer gives feedback to the taxpayer on the Duty exemption, reduction and refund system.

- For duty reduction applications submitted after the time of customs clearance, the processing officer shall input the information in the report to transfer the application to the superior customs authority, then transfer them to the head of division, head of Sub-department for approval. After the head of Sub-department approves, the Duty exemption, reduction and refund system will transfer the application to the superior customs authority. Customs Departments of provinces and cities shall process duty reduction applications according to Item c.1 point c, Clause 1, Article 12 of this Procedure.

What are procedures for inspecting duty reduction paper application applied to imported and exported goods in Vietnam? 

Pursuant to Point 2.b Article 10 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 inspecting duty reduction paper application applied to imported and exported goods in Vietnam as follows:

b) Paper application

b.1) Preliminary inspection

b.1.1) In case the taxpayer sends the application to the wrong address of the competent customs authority, the processing officer shall make a report using the Form No. 01/TT-TXNK attached to this Procedure, draft notice to the taxpayer not to receive their duty reduction application according to form No. 04/TXNK Appendix I issued together with Circular No. 06/2021/TT-BTC, submit to the Head of division, Head of Sub-department for approval. After the head of Customs Sub-Department approves, the processing officer will transfer the application to the clerical department for stamping and send it to the taxpayer.

b.1.2) In case the application is determined ineligible for duty reduction

- For the case that the duty reduction application is submitted at the time of customs clearance, the processing officer shall make a report using form No. 01/TT-TXNK issued hereto, a draft notice stating that the application is ineligible for duty reduction, and then transfer them to the head of division, head of Customs Sub-Department for approval. After the head of Customs Sub-Department approves, the processing officer gives feedback to the taxpayer on the Duty exemption, reduction and refund system.

- For the case that the duty reduction application is submitted after the time of customs clearance, the processing officer shall make a report using form No. 01/TT-TXNK issued hereto, a draft notice, and then transfer them to the superior customs authority, head of division, head of Customs Sub-Department for approval. After the head of Sub-department approves, the Duty exemption, reduction and refund system will transfer the application to the superior customs authority. Customs Departments of provinces and cities shall process duty reduction applications according to Item c.1 point c, Clause 2, Article 12 of this Procedure.

b.2) Check the completeness and validity of the application

The processing officer shall check if the documents in the duty reduction application are complete and valid according to Clause 1, Article 15 of Circular No. 06/2021/TT-BTC.

b.2.1) If the duty reduction application is complete and valid

b.2.1.1) Within 03 working days from the day on which the application is received, the processing officer shall make a report using the form No. 01/TT-TXNK attached to this Procedure, and a draft notice of receiving the duty reduction application, form No. 04/TXNK, Appendix I of Circular No. 06/2021/TT-BTC, and submit them to the head of division, the head of Customs Sub-department for approval. After the head of Customs Sub-Department approves, the processing officer will transfer the application to the clerical department for stamping and send it to the taxpayer.

b.2.1.2) After notifying the receipt of duty reduction applications, the Sub-department of Customs shall:

- For duty reduction applications submitted at the time of customs clearance, the processing officer shall take the next steps in Clause 2, Article 11 of this Process.

- For the case that the duty reduction application is submitted after the time of customs clearance, the processing officer shall make a report using form No. 01/TT-TXNK issued hereto, a draft notice, and then transfer them to the superior customs authority, head of division, head of Customs Sub-Department for approval. After the head of Sub-department approves, the Duty exemption, reduction and refund system will transfer the application to the superior customs authority. Customs Departments of provinces and cities shall process duty reduction applications according to Item c.2 point c, Clause 2, Article 12 of this Procedure.

b.2.2) If the duty reduction application is incomplete and invalid

The processing officer shall make a report according to form No. 01/TT-TXNK issued together with the Process, a draft notice about the supplementation of the application, made according to the form No. 05/ TXNK Appendix I promulgated together with Circular No. 06/2021/TT-BTC with the application and report to the head of division, the head of Customs Sub-department for approval. After being approved, the processing officer will transfer the application to the clerical department for stamping and send it to the taxpayer. Within 03 working days from the date of receipt of the application, the customs authority must notify the taxpayer of the supplementation needed.

b.2.2.1) In case the taxpayer provides sufficient information, the processing officer shall comply with Item b.2.1, Point b of this Clause.

b.2.2.2) After 05 working days from the date the taxpayer receives the notice of supplementation needed, if the taxpayer fails to supplement information, the Sub-department of Customs shall:

- For the case that the duty reduction application is submitted at the time of customs clearance, the processing officer shall make a report using form No. 01/TT-TXNK issued hereto, a draft notice stating that the application is ineligible for duty reduction, using form No. 06/TXNK issued together with Circular No. 06/2021/TT-BTC, clearly stating that the application is incomplete and invalid, and then transfer them to the head of division, head of Customs Sub-Department for approval. After the head of Customs Sub-Department approves, the processing officer will transfer the application to the clerical department for stamping and send it to the taxpayer.

- For the case that the duty reduction application is submitted after the time of customs clearance, the processing officer shall make a report using form No. 01/TT-TXNK issued hereto, a draft notice, and then transfer them to the superior customs authority, head of division, head of Customs Sub-Department for approval. After the head of Sub-department approves, the Duty exemption, reduction and refund system will transfer the application to the superior customs authority. Customs Departments of provinces and cities shall process duty reduction applications according to Item c.1 point c, Clause 2, Article 12 of this Procedure.

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