What are the cases of exemption of import-export duties on gifts in Vietnam?

What are the cases of exemption of import-export duties on gifts in Vietnam? (Internet image)

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

1. What are the cases of exemption of import-export duties on gifts in Vietnam?

 Gifts exempt from duties specified in Clause 2 Article 16 of the the Law on Import and Export Duties are those that are not enumerated on the List of goods banned from import, banned from export, suspended from export, suspended from import and not enumerated on the List of goods subject to special excise tax (excluding those serving national defense and security purposes) as prescribed by law

(Clause 1, Article 8 of Decree 134/2016/ND-CP)

2. What is the import-export duty-free quota on gifts in Vietnam?

Specifically, according to Clause 2, Article 8 of Decree 134/2016/ND-CP (amended in Decree 18/2021/ND-CP), duty-free quota on gifts in Vietnam is as follows:

- Gifts given by a foreign organization or individual to a Vietnamese organization or individual; gifts given by a Vietnamese organization or individual to a foreign organization or individual whose customs value does not exceed VND 2,000,000 or whose custom value exceeds VND 2,000,000 but duty on which is under VND 200,000 shall be exempt from duties up to 04 times per year.

- For gifts given by a foreign organization or individual to a Vietnamese organization whose operating cost is covered by state budget as prescribed by state budget laws and the receipt of which is permitted by a competent authority, or gifts given for humanitarian or charitable purposes, the allowance will be the entire value of the gifts and duty exemption shall be granted up to 04 times per year.

Where duty-free allowance is exceeded by an organization whose operating cost is covered by state budget, duty exemption shall be decided by the Ministry of Finance on a case-by-case basis.

- Gifts given by a foreign organization or individual to a Vietnamese individual that are drugs or medical equipment for people having fatal diseases specified in Appendix IV hereof whose customs value does not exceed VND 10,000,000 shall be exempt from duties up to 4 times per year.

3. Procedures for granting import-export duty exemption on gifts in Vietnam

According to Clause 3, Article 31 of Decree 134/2016/ND-CP (amended in Decree 18/2021/ND-CP), procedures for granting import-export duty exemption on gifts in Vietnam are implemented as follows:

- The taxpayer shall determine and declare the amount of duty-free goods and tax exempted (except duties on goods imported or exported for processing by the hirer) while following customs procedures and take responsibility for such declaration.

- The customs authority where customs procedures are followed shall examine the declaration and applicable regulations to decide the grant of duty exemption.

If imported goods are not eligible for duty exemption as declared, the taxpayer shall have to pay duties and fines (if any).

- Electronic data processing system shall deduct the quantity of imports or exports written on the duty-free list.

In case of submission of a physical duty-free list, the customs authority shall update and deduct the quantity of goods exported/imported accordingly.

In case of import of a duty-free combination or assembly line, the taxpayer shall follow customs procedures at the customs authority responsible for the area where the equipment is installed.

When registering the customs declaration, the taxpayer shall provide details about the goods on the declaration. If details about the goods cannot be provided, the taxpayer shall prepare a list of imports according to Form No. 04 in Appendix VIIa of Decree 18/2021/ND-CP via the electronic data processing system or according to Form No. 15 in Appendix VII of Decree 18/2021/ND-CP and enclose it with the customs declaration.

Within 15 days from the day on which the last shipment of the combination or assembly line is imported, the taxpayer shall register the duty-free list with the customs authority according to Form No. 05 in Appendix VIIa of Decree 18/2021/ND-CP via the electronic data processing system or according to Form No. 16 of Appendix VII of Decree 18/2021/ND-CP.

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