Additions when calculating customs value in Vietnam

Additions when calculating customs value in Vietnam (Internet image)

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

1. Conditions with additions when calculating customs value in Vietnam

According to Clause 1, Article 13 of Circular 39/2015/TT-BTC, additions can be made only when the following conditions are satisfied:

- These additions shall be paid by the buyer and have not been included in the actual or future payment;

- These additions shall be related to the imported goods;

- There shall be objective and quantifiable data conformable with the relevant documents.

If the imported goods have additions without objective and quantifiable data to determine customs value, such value shall not be determined by the transaction value but the next method instead.

2. Additions when calculating customs value in Vietnam

Additions when calculating customs value in Vietnam according to Clause 2, Article 13 of Circular 39/2015/TT-BTC include:

* The sale commission costs, the brokerage fees. If these costs include the payable taxes in Vietnam, such taxes may not be added to the customs value of imported goods.

* Costs of packing associated with imported goods, including buying price of packaging and other costs relating to the trade and transport of packaging to the place of packaging and preservation of goods.

Containers, casks, racks used as a means to package for transporting cargos and used many times is not considered as packaging associated with goods so they are not the addition of costs of packaging associated with goods.

* The packaging costs, including:

- The cost for packaging materials including the buying price of packaging material and other costs relating to the trade and transport of packaging material to the place of package;

- The cost for packaging staff, including the salaries and costs relating to the employment of staff for packaging the goods receiving customs valuation.

If the buyers have to bear the expenses on accommodation and transportation for workers during the packaging, such costs are also included in the cost for packaging staff.

* The aid: The value of goods and services that the buyer provided free of charge or with discount are transferred directly or indirectly to the manufacturer or seller to produce and sell exported goods to Vietnam.

- The aid includes:

+ Raw materials, component parts, accessories and their analogues added in imported goods;

+ Raw materials, materials, consumed fuel in the manufacture of imported goods;

+ Instruments, tools, dies, molds, models and similar products used for manufacturing imported goods;

+ Drawings, technical drawings, fine-art designs, development plans, construction designs, model designs, diagram, scheme or similar services, which are made in foreign countries and necessary for the manufacture of imported goods.

- Valuation of the aid:

+ If the aid includes products and services bought from a person without special relationship to provide for the seller, the value of the aid is the buying price of such products/services;

+ If the aid includes products/services produced by the importer or a person with special relationship with the importer to provide for the seller, the value of the aid is the cost price of such products/services;

+ If the aid includes product/service made by an oversea-based manufacturing facility of buyer without documents to account separately for such product/service, the value of the aid is determined by distributing the total cost of production in the same period of such facility for the amount of the  product/service produced;

+ The value of the aid rented by the buyer is the renting cost;

+ The value of the aid including used products  is the remaining value of such products;

+ The products that were processed by buyers before handing over to the sellers for use in manufacturing the imported goods must include the added-value due to the process into the value of the aid;

+ If the aid is sold with discount by the buyer to the exporter, the value of such discount shall be added to the customs value;

+ If after the manufacture of imported goods, the manufacturer still obtain superfluous raw materials and waste from the aid, then the value of recovery from such superfluous raw materials and waste are subtracted from the value of the aid, if there is data showing the value of the waste or the superfluous raw materials.

The determined value of the aid includes the expenses related to the trade, transportation and insurance to the place where the imported goods are produced.

- Distribution of value of the aid to the imported goods.

+ Rule for distributing value of the aid:

++ The value of the aid shall be completely distributed to the imported goods;

++ The distribution shall be legally recorded;

++ The distribution shall be conformable with the Vietnam’s regulations and standards of accounting.

+ Methods for distributing value of the aid:

The customs declarant shall distributed himself/herself the aid for the imported goods by any of the following methods:

++ Distribute the aid to the imported goods of the initial importation;

++ Distribute the aid according to the quantity of manufactured goods up to the time of the initial importation;

++ Distribute the aid to all of goods intended to be produced according to the sale agreement between the buyer and the seller (or the manufacturer);

++ Distribute the aid according to the principle of descending or ascending;

++ Apart from the methods above, the buyer may apply other methods for distribution (for example distribution by month/quarter/year), on the condition that the distribution shall be conformable to the legislation on accounting regime and shall be recorded.

* The copyright fees and the license fees specified in Article 14 of lawnet.vn/vb/Thong-tu-39-2015-TT-BTC-tri-gia-hai-quan-hang-hoa-xuat-khau-nhap-khau-41E23.html#dieu_14.

* The sums that the importer shall pay, except for the proceeds from resale and use of imported goods shall be transferred directly or indirectly to the seller in any shape or form. Procedures for declaration and inspection:

- For the case this sum is determined at the time the declaration is registered:

The customs declarant shall declare himself/herself at the corresponding criterion in the declaration of imported goods or the declaration of customs value, applicable to the case subject to customs value declaration;

+ The customs authority shall examine and process the result according to the provisions of Article 25 of the Circular on customs procedures; customs supervision and inspection; export/import taxes and tax administration for exported/imported goods.

- For the case the sum is undetermined at the time the declaration is registered due to the dependence to post-export sales or other reasons specified in the goods sale contract or other documents of agreement:

+ At the time of registration of the declaration, the customs declarant shall declare clearly the reason for not determining the amount of money that the importer must pay after reselling, defining and using imported goods on the declaration of imported goods or the declaration of customs value applicable to the cases subject to customs value declaration. Within 5 days from the dated of actual payment, the customs declarant shall perform the declaration, calculate the payable tax for the sum actually paid on the supplementary declaration at post-customs clearance and pay the tax sufficiently according to the regulation;

+ The customs authority shall examine the documents relating to such amount of money and the declaration of the customs declarant according to the regulations in point (e.2.1) of this clause and shall handle as follows:

++ In case the customs declarant fails to perform the declaration or the payment declared is unconformable, the customs authority shall make the decision on penalty according to the legislation and request the customs declarant to complete the declaration. If the customs declarant fails to perform the declaration or supplement declaration according to the request, the customs authority shall carry out the customs valuation, define tax, collect sufficiently the tax and/or late payment interest (if any) according to the regulation;

++ In case the customs declarant fails to perform punctually the declaration according to the provisions of point (e.2.1) of this clause, the customs authority shall impose penalties according to the legislation.

*Transportation costs and any costs relating to the transportation of imported goods to the first importing checkpoint, exclusive of costs for loading, unloading and arranging of goods taken from the transport vehicle to the first importing checkpoint.

If the costs of loading, unloading and arranging the goods taken from the transport vehicle to the first importing checkpoint are included in the international transport cost or in the actual or future payment, such costs will be deducted from the customs value of the imported goods if they satisfy sufficiently the conditions provided in clause 1 Article 15 of lawnet.vn/vb/Thong-tu-39-2015-TT-BTC-tri-gia-hai-quan-hang-hoa-xuat-khau-nhap-khau-41E23.html#dieu_14.

- The value of such adjustments is determined according to the transport contract and the documents relating to the transport of goods;

- In case the buying price does not include the cost of transport but the buyer fails to present the lawful transport contract or the documents relating to the transport of goods, thus the transaction value-based method shall not be applied;

- In case there are multiple types of goods without specifications on the transportation contract or the documents relating to the transport of goods, thus the customs declarant shall applied any of the following methods for distribution:

+ Distribution on the basis of the transport price list of the person who in charge of transporting goods;

+ Distribution by weight or volume of goods;

+ Distribution according to the ratio of buying value of each type of goods to the total value of goods.

*The insurance cost of the imported goods at the first importing checkpoint.

- If the importer does not purchase insurance for goods, the insurance cost will not be added to the customs value;

- The insurance cost for multiple goods without specifications shall be distributed according to the value of each type of goods.

* The costs mentioned in points (g) and (h) of this clause are exclusive of payable added-value tax in Vietnam. If such tax is included in the transport cost, international insurance cost or in the actual or future payment, it will be deducted from the customs value of the imported goods if they satisfy sufficiently the conditions provided in clause 1 Article 15 of lawnet.vn/vb/Thong-tu-39-2015-TT-BTC-tri-gia-hai-quan-hang-hoa-xuat-khau-nhap-khau-41E23.html#dieu_14.

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