Customs formalities for repurposing goods in Vietnam

Customs formalities for repurposing goods in Vietnam (Image from the internet)

On July 31, 2024, the General Department of Customs issued Official Dispatch 3701/TCHQ-TXNK regarding Customs formalities for repurposing goods in Vietnam.

Customs formalities for repurposing goods in Vietnam

Official Dispatch 3701/TCHQ-TXNK responds to Official Dispatch 65/CV/06/2024 dated June 20, 2024, from Siam City Cement Vietnam Co., Ltd., requesting guidance on opening an import declaration to change the use purpose from tax-exempt imported goods under an investment project to liquidation sales for domestic businesses and declaring customs value in the case of lost original declarations. Specifically:

(1) Regarding Customs formalities for tax-exempt imported repurposing goods:

Based on Clause 2, Article 18 of the Law on customs 2014 dated June 23, 2014, which stipulates the obligations of customs declarants, including:

“b) Providing complete and accurate information for customs authorities to pre-determine codes, origin, and customs value of goods;

c) Taking legal responsibility for the accuracy of the declared content and submitted documents; for the consistency of information between records stored at the business and those kept by customs authorities;

d) Complying with decisions and requirements of customs authorities and customs officers in executing Customs formalities, inspections, and supervision over goods and transport vehicles;

dd) Keeping customs records for cleared goods for 05 years from the date of registration of the customs declaration, unless otherwise provided by law; keeping books, accounting documents, and other documents related to cleared export and import goods within the period stipulated by law; presenting records and providing information and documents when requested by customs authorities as stipulated in Articles 32, 79, and 80 of this Law”;

Based on Clause 5, Article 25 of Decree 08/2015/ND-CP dated January 21, 2015, as amended and supplemented by Clause 12, Article 1 of Decree 59/2018/ND-CP dated April 20, 2018, of the Government of Vietnam, stipulating customs declarations as follows:

“For export and import goods subject to export tax, import tax exemptions,... which have been released or cleared but later change tax exemption status or use purpose, a new customs declaration must be made. Export and import goods management policy is implemented at the time of registration of the new customs declaration except in cases where the export and import goods management policy was fully implemented at the time of initial registration of the declaration.”

Based on Article 21 of Circular 38/2015/TT-BTC dated March 25, 2015, as amended and supplemented by Clause 10, Article 1 of Circular 39/2018/TT-BTC dated April 20, 2018, of the Ministry of Finance, stipulating declarations for changing use purpose and domestic consumption.

Based on the aforementioned regulations, tax-exempt imported goods that have been cleared but later change their tax exemption purpose must file a new customs declaration. Customs formalities are carried out following Article 21 of Circular 38/2015/TT-BTC dated March 25, 2015, as amended and supplemented by Clause 10, Article 1 of Circular 39/2018/TT-BTC dated April 20, 2018, of the Ministry of Finance. The new customs declaration must clearly state the original customs declaration number, the form of changing the use purpose, or switching to domestic consumption in the “Notes” section of the electronic customs declaration or the “Other notes” section on the paper customs declaration. In cases of changing the use purpose or switching to domestic consumption for tax-exempt imported goods beyond the period for preserving customs records (05 years), the enterprise is not required to provide the customs declaration number when changing the use purpose or switching to domestic consumption.

(2) Regarding the declaration of customs value:

Based on Point b, Clause 2, Article 17 of Circular 39/2015/TT-BTC dated March 25, 2015, as amended by Clause 9, Article 1 of Circular 60/2019/TT-BTC dated August 30, 2019, of the Ministry of Finance, stipulating customs value for used imported goods in Vietnam with a different use purpose from the original tax exemption or non-taxable status for sale, the customs value is the declared value based on the actual sale price. If customs authorities have grounds to determine the declared value is inappropriate, they determine the customs value according to regulations, in line with the actual goods. Thus, the customs value is declared based on the actual sale price (as stated in the liquidation sales contract).

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE