Application for recognition of prioritized enterprises in Vietnam

Application for recognition of prioritized enterprises in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Requirements for application of the privilege in field of customs in Vietnam

According to Clause 1, Article 42 of the Law on Customs 2014, an enterprise may enjoy the privilege when fully satisfying the following requirements:

- Strictly observe the customs and law on taxation for 2 consecutive years;

- Earn an annual export and import value reaching the prescribed level;

- Carry out e-customs formalities and e-tax formalities; have an information technology program for managing its export and import activities connected with the customs authority’s network;

- Make via-bank payment;

- Have its internal control system;

- Strictly observe accounting and audit regulations.

Privileged enterprises in countries or territories that have signed with Vietnam agreements on mutual recognition of privileged enterprises may apply the privilege in accordance with the Law on Customs 2014. (Clause 2, Article 2 of 42 of the Law on Customs 2014)

2. Application for recognition of prioritized enterprises in Vietnam

- Enterprises that meet eligibility requirements laid down in this Circular and wish to be given customs priority shall submit physical applications to the General Department of Customs for consideration.

Specifically, the application for recognition of prioritized enterprises includes:

(i) The written request under the form 02a / DNUT enclosed with Circular 75/2015/TT-BTC: 01 original;

Written request for application

(ii) Audited financial statements of the last 02 fiscal years: 01 photocopy;

(iii) The audit reports of the last two (02) fiscal years: 01 photocopy;

(iv) The inspection conclusions of the last  02 (two) years (if any): 01 photocopy;

(v) The description of internal management system of the enterprise which describes fully the processes to manage, monitor, control its entire operation, control of security and safety of its supply chain of exported and imported goods: 01 original;

(vi) The commendation certificate, quality certificate (if any): 01 photocopy.

- The investor who wishes to apply the priority policy for major investment project agreed by the Prime Minister before it is licensed investment in fundamental construction phase shall submit an application to the General Department of Customs.

The application shall include:

- The written request for application of priority policy and the commitment to carry out the project on schedule under the Form 02b / DNUT enclosed with Circular 75/2015/TT-BTC: 01 original;

Written request for application

- The investment certificate, economic and technical report: 01 photocopy.

(Article 18 of Circular 75/2015/TT-BTC (amended in Circular 07/2019/TT-BTC))

3. Privilege given to enterprises in Vietnam

Specifically, in Article 43 of the Law on Customs 2014, the privilege given to enterprises includes:

- Exemption from examination of relevant documentary evidence in customs documents and exemption from physical inspection of goods in the course of carrying out customs formalities, except cases in which law violation are detected or random inspection is needed to assess law compliance.

- Follow customs formalities with incomplete customs declarations or documentary evidence in substitution of customs declarations. Within 30 days from the date of registration of incomplete customs declarations or submission of documentary evidence in substitution of customs declarations, customs declarants shall submit complete customs declarations and relevant documentary evidence in customs documents.

- Be prioritized when carrying out tax formalities for goods in accordance with the law on taxation.

Thanh Rin

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