Proposal to exempt returned exported goods from excise tax in Vietnam

Proposal not to collect excise tax on exported goods that are returned (Image from Internet)

Proposal to exempt returned exported goods from excise tax in Vietnam

According to Article 3 of the Second Draft of the Law on excise tax (amended), goods specified in Clause 1, Article 2 of the Draft Law are not subject to excise tax in certain cases, including goods exported to foreign countries but returned by those countries upon import:

- Goods produced, processed, directly exported abroad by organizations, individuals, or sold, consigned to other business organizations, individuals for export abroad.

- Imported goods include:

+  Humanitarian  aid,  non-refundable  aid  including  imported  goods  funded  by  non-refundable  aid  approved  by  competent  authorities,  humanitarian  assistance,  emergency  relief  to  overcome  the  consequences  of  war,  natural  disasters,  epidemics;  gifts  from  foreign  organizations,  individuals  to  state  agencies,  political  organizations,  socio-political  organizations,  socio-political-professional  organizations,  social  organizations,  socio-professional  organizations,  people's  armed  units,  public  service  providers  within  the  tax  exemption  limit  according  to  regulations  of  export  and  import  tax  laws;  gifts  for  individuals  in  Vietnam  within  the  tax  exemption  limit  according  to  export  and  import  tax  laws.

+  Goods  in  transit  according  to  commercial  law  regulations,  transshipment  goods,  transshipment  under  customs  law  regulations.

+  Temporarily  imported  goods,  re-exported  goods,  temporarily  exported  goods,  re-imported  goods  are  not  subject  to  import  tax,  export  tax  within  the  period  prescribed  by  export  and  import  tax  laws.  In  case  of  exceeding  the  re-export,  re-import  period  or  selling/change  of  use  purpose  within  the  temporary  import,  temporary  export  period,  business  organizations,  individuals  must  pay  special  consumption  tax.

+  Items  of  foreign  organizations,  individuals  according  to  diplomatic  exemption  standards;  goods  carried  by  passengers  within  import  baggage  exemption  standards  under  export  and  import  tax  laws;  goods  imported  and  sold  at  duty-free  shops  according  to  the  law.

+ Goods exported to foreign countries but returned upon import.

- Airplanes, helicopters, gliders, yachts for business transport of goods, passengers, tourists and airplanes, helicopters, gliders used for security, defense, pilot training, pesticide spraying, firefighting, filming, photographing, mapping.

- Ambulance cars; prisoner transport cars; hearses; cars designed with both seating and standing areas for 24 people or more; passenger cars, four-wheeled motorized passenger cars not registered for circulation, not participating in traffic, and only operating within amusement parks, entertainment areas, sports areas, historical sites, hospitals, schools, and other specialized cars according to the Government of Vietnam regulations.

The Draft Law also proposes to remove Clause 5, Article 3 of the Law on excise tax 2008: “Goods imported from abroad into non-tariff zones, goods sold domestically into non-tariff zones and used only within non-tariff zones, goods purchased and sold between non-tariff zones, except passenger cars with less than 24 seats”.

Tran Trong Tin

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