New Regulations on Penalties for Violations of Customs Procedure Deadlines (Draft)

New Regulations on Penalty for Violations of Customs Procedures Deadlines (Expected) - Illustrative Image

 Third Draft Decree on Penalties for Administrative Violations in the Customs Sector

This draft specifies the penalty levels for violations of the deadlines for customs procedures and tax documentation as follows:

1. A fine ranging from VND 500,000 to VND 1,000,000 for the act of not meeting the prescribed deadlines in any of the following cases:- Declaring, submitting, presenting, and providing customs documentation information, except for violations stipulated in Clauses 3, 4, 5, 6 of Article 7 and Point b Clause 3 Article 11 of this Draft;- Declaring amendments and supplements when there is a change in the consignment container number, export/import port of loading, export checkpoint, transport means for exports;- Re-exporting transport means of individuals and organizations through border checkpoints for the delivery and receipt of goods;- Declaring customs value supplementary information past the prescribed deadline for export, import goods without official pricing, goods with payable amounts, and goods with adjustments added to customs value that are not determined at the time of customs declaration registration. (New provision added compared to Decree 127/2013/ND-CP and Decree 45/2016/ND-CP. Currently, these decrees only specify penalties for declaring official prices past the prescribed deadline for goods without an official price at the time of customs declaration registration)

2. A fine ranging from VND 1,000,000 to VND 2,000,000 for not meeting the prescribed deadlines in any of the following cases:- Providing audit reports, financial statements of enterprises applying preferential policies;- Reporting decisions on the handling of tax and accounting violations for enterprises applying preferential policies;- Reporting the quantity of imported goods for factory construction, goods stored outside of the export processing enterprise;- Reporting the quantity of goods brought in, taken out, and remaining at the transshipment port;- Reporting postal goods clearance statistics entering Vietnam for international transfer.

3. A fine ranging from VND 2,000,000 to VND 5,000,000 for any of the following acts:- Submitting a customs declaration when exported goods have not yet been gathered at the notified location to the customs agency;- Failing to submit settlement reports and timely reports on the use of tax-free goods;- Submitting applications for 0% tax rate for imported components under the tax incentive program for automobile production and assembly or the supporting industry taxation program past the deadline; (New provision added compared to Decree 127 and Decree 45)- Failing to handle excess materials, wastes, borrowed/hired machinery, equipment, and subcontracted products when the contract ends or expires on time;- Failing to timely notify additional information on changes to processing, production facilities for export goods; storage locations for raw materials, materials, machinery, equipment, and export products;- Failing to notify subcontract processing contracts or their appendices on time; (New provision added compared to Decree 127 and Decree 45)- Failing to re-export or re-import goods on time as applied for or registered with the customs authority, except for the violations stipulated in Point a Clause 4 Article 7 of this Draft;- Failing to promptly declare the actual manufactured product quantity requirements; (New provision added compared to Decree 127 and Decree 45)

4. A fine ranging from VND 5,000,000 to VND 10,000,000 for any of the following acts:- Failing to timely re-export temporarily imported business goods;- Keeping transiting and transshipped goods within the territory of the Socialist Republic of Vietnam beyond the prescribed deadline;- Not declaring and processing the internal consumption or change of use purpose for tax-exempt, non-taxable, tax-deductible, tax-refundable, or quota-tax-rated goods past the deadline.

5. Failing to re-export, re-import exiting, entering transport means on time (except for cases stated in Clause 6 Article 7 of this Draft) or cases of individual or organizational transport means traversing the border for the delivery and receipt of goods will be penalized as follows:- A fine ranging from VND 5,000,000 to VND 10,000,000 for delays under 30 days;- A fine ranging from VND 10,000,000 to VND 20,000,000 for delays from 30 days or more.

(This is a new penalty level added compared to Decree 127 and Decree 45)

6. Failing to re-export entered passenger vehicles under 24 seats on time, except for penalties under Point c Clause 1 Article 7 of this Draft, will be penalized as follows:- A fine ranging from VND 10,000,000 to VND 20,000,000 for delays under 30 days;- A fine ranging from VND 20,000,000 to VND 50,000,000 for delays from 30 days or more.

7. Applying remedial measures:- Forcing temporarily imported goods out of the territory of the Socialist Republic of Vietnam or mandatory re-export within the penalty decision enforcement period for behaviors in Point g Clause 3; Point a Clause 4 Article 7 of this Draft, except where goods are allowed to be sold in Vietnam per regulations or intentionally prolonging temporary import-export as stipulated by law; (Decree 127 and Decree 45 do not stipulate exceptions for prolonging temporary import-export as per regulations)- Forcing temporarily imported transport means out of the territory of the Socialist Republic of Vietnam or mandatory re-export within the penalty decision enforcement period for behaviors in Point c Clause 1, Clause 5, Clause 6 Article 7 of this Draft; (New content supplemented in this Draft compared to Decree 127 and Decree 45)- Forcing goods out of the territory of the Socialist Republic of Vietnam within the penalty decision enforcement period for behaviors stated in Point b Clause 4 Article 7 of this Draft. (Currently, Decree 127 and Decree 45 do not require within the penalty enforcement period)

Note, the bolded content in this article highlights changes in the Draft compared to the current provisions in Decree 127 and Decree 45.

Read more content of the Draft HERE.

Nguyen Trinh

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