DECREE
Detailing a number of articles of, and measures to implement, the Law on Import Duty and Export Duty
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Pursuant to the June 19, 2015 Law on Organization of the Government;
Pursuant to the April 6, 2016 Law on Import Duty and Export Duty;
Pursuant to the June 23, 2014 Law on Customs;
Pursuant to the November 26, 2014 Investment Law;
Pursuant to the November 29, 2016 Law on Tax Administration;
Pursuant to the April 6, 2016 Law Amending and Supplementing a Number of Articles of the Law on Tax Administration, the Law on Excise Tax and the Law on Tax Administration;
At the proposal of the Minister of Finance,
The Government promulgates the Decree detailing a number of articles of, and measures to implement, the Law on Import Duty and Export Duty.
Chapter I
GENERAL PROVISIONS
Article 1. Scope of regulation and subjects of application
1. This Decree prescribes dutiable objects; application of import duty and export duty rates, time limits for duty payment for imported and exported goods, and import duty and export duty exemption, reduction and refund.
2. This Decree applies to:
a/ Duty payers specified in the Law on Import Duty and Export Duty;
b/ Customs offices, customs officers;
c/ Organizations and individuals with rights and obligations related to imported or exported goods;
d/ Agencies and organizations related to the implementation of the Law on Import Duty and Export Duty.
Article 2. Dutiable objects
1. Goods imported or exported through Vietnam’s border gates or border.
2. Goods exported from the domestic market to export processing enterprises and into export processing zones, tax-suspension warehouses, bonded warehouses or other non-tariff zones in accordance with Clause 1, Article 4 of the Law on Import Duty and Export Duty; goods imported into the domestic market from export processing enterprises, export processing zones, tax-suspension warehouses, bonded warehouses or other non-tariff zones in accordance with Clause 1, Article 4 of the Law on Import Duty and Export Duty.
3. Goods imported or exported on the spot referred to in Clause 3, Article 2 of the Law on Import Duty and Export Duty, which must comply with the Government’s Decree No. 08/2015/ND-CP of January 21, 2015, detailing, and providing measures to implement, the Customs Law regarding customs procedures and customs inspection, supervision and control.
4. Goods of export processing enterprises exercising their import, export and distribution rights referred to in Clause 3, Article 2 of the Law on Import Duty and Export Duty, which are those imported or exported by export processing enterprises to exercise their import, export and distribution rights in accordance with the laws on commerce and investment.
Article 3. Application of duty rates to imported and exported goods
1. Duty rates for imported and exported goods must comply with Articles 5, 6, and 7 of the Law on Import Duty and Export Duty.
2. In case the preferential duty rate for a commodity item specified in the Export Tariff or Preferential Import Tariff is lower than the special preferential duty rate specified in the Special Preferential Import or Export Tariff, the preferential duty rate shall apply.
In case a duty payer has paid an import duty at a special preferential duty rate higher than the preferential import rate, the overpaid duty amount shall be handled in accordance with the law on tax administration.
Article 4. Duty payment time limits, guarantee and deposit for payable duty amounts
1. The duty payment time limits specified in Article 9 of the Law on Import Duty and Export Duty shall apply to dutiable imported and exported goods in accordance with tax laws.
2. Guarantee for duty payment for imported and exported goods shall be provided in either of the two forms: separate guarantee or joint guarantee.
a/ Separate guarantee means the guarantee committed by a credit institution operating under the Law on Credit Institutions for the fulfillment of the duty payment obligation for a single import or export customs declaration;
b/ Joint guarantee means the guarantee committed by a credit institution operating under the Law on Credit Institutions for the fulfillment of the duty payment obligation for two or more import or export customs declarations at one or more than one Customs Branch. Joint guarantee may be reconciled and restored corresponding to paid duty amounts.
c/ In case a duty payer fails to pay a duty and late-payment interest (if any), past the guarantee period for a declaration, a credit institution that has committed to provide separate guarantee or joint guarantee shall, on behalf of the duty payer, fully pay the duty and late-payment interest into the state budget on the basis of information on the customs e-data processing system or according to the customs office’s notice;
d/ Contents of a letter of guarantee, submission of letters of guarantee, and inspection, monitoring and processing of letters of guarantee must comply with the law on tax administration.
3. If a duty payer wishes to make a deposit to secure import duty payment for goods temporarily imported for re-export within the period of temporary import pending re-export (including extended time), the duty payer shall deposit a money amount equal to the import duty amount imposed on the goods into the customs office’s deposit account at the State Treasury.
Refund of deposit amounts must comply with the provisions of the law on tax administration on refund of overpaid tax, late-payment interest and fine amounts.
4. Past the storage period, if an enterprise fails to re-export the temporarily imported goods out of Vietnam, the customs office shall transfer the deposit amount from its deposit account to the state budget; in case of guarantee, the guarantee-providing credit institution shall pay a money amount equal to the import duty amount into the state budget on the basis of information on the customs e-data processing system or according to the customs office’s notice.
Chapter II
DUTY EXEMPTION, REDUCTION AND REFUND
Article 5. Duty exemption for goods of foreign organizations and individuals entitled to privileges and immunities
1. Goods of foreign organizations and individuals entitled to privileges and immunities are entitled to import duty exemption under Clause 1, Article 16 of the Law on Import Duty and Export Duty, specifically:
a/ Diplomatic and consular agencies may import and temporarily import free of duty goods on the list and within the quotas specified in Appendix I to this Decree. Diplomats and consuls may import and temporarily import free of duty goods on the list and within the quotas specified in Appendix II to this Decree. Technical-administrative staffs of diplomatic agencies and consular staffs of consular agencies may import and temporarily import free of duty goods on the list and within the quotas specified in Appendix III to this Decree.
b/ Representative offices of international organizations belonging to the United Nations system and their officers may import and temporarily import free of duty goods on the list and within the quotas specified in Appendices I and II to this Decree.
c/ Representative offices of international organizations outside the United Nations system and their staff members are entitled to import duty exemption in accordance with relevant treaties to which the Socialist Republic of Vietnam is a contracting party.
d/ Representative offices of non-governmental organizations and their staff members are entitled to import duty exemption in accordance with agreements between the Vietnamese Government and these organizations.
2. Those specified at Points a and b, Clause 1 of this Article may import free of duty liquor, beer and cigarettes in excess of the quotas specified in Appendix I to this Decree to serve diplomatic activities. The duty-free quotas of liquor, beer and cigarettes must comply with the Ministry of Foreign Affairs’ certification.
3. In addition to the commodity items specified in Appendices I, II and III to this Decree, the subjects specified at Points a and b, Clause 1 of this Article may import free of duty other essentials to serve their work on the principle of reciprocity or according to international practices. Duty-free goods categories and quotas must comply with the Ministry of Foreign Affairs’ certification.
4. In case a treaty or an agreement between the Vietnamese Government and a foreign non-governmental organization specified at Point c or d, Clause 1 of this Article contains provisions on duty exemption but does not specify the duty-free goods categories and quotas, the Ministry of Finance shall reach agreement with the Ministry of Foreign Affairs on the duty-free goods categories and quotas and report such to the Prime Minister for decision.
The duty-free goods categories and quotas referred to this Clause must not exceed those provided in Appendices I, II and III to this Decree.
5. The agencies specified at Points a and b, Clause 1 of this Article may temporarily import automobiles or motorcycles to replace automobiles or motorcycles already temporarily imported within quotas only after completing procedures for re-export, destruction or transfer of the temporarily imported ones.
The individuals specified at Points a and b, Clause 1 of this Article may temporarily import free of duty automobiles or motorcycles to replace automobiles or motorcycles temporarily imported within quotas only after completing procedures for re-export or destruction of the temporarily imported ones.
6. A duty exemption dossier must comprise:
a/ A customs dossier as prescribed by the customs law, except for duty-free goods purchased at duty-free shops;
b/ A duty-free quota book specified in Clause 7 of this Article: 1 copy bearing a true-copy mark of the concerned agency, unless such book has been uploaded on the national single-window portal;
c/ Documents proving the completion of the re-export, destruction or transfer, for the case prescribed in Clause 4 of this Article: 1 copy bearing a true-copy mark of the concerned agency;
d/ The Ministry of Foreign Affairs’ certification, for the cases specified in Clauses 2 and 3 of this Article: 1 copy bearing a true-copy mark of the concerned agency;
dd/ The Prime Minister’s written approval, for the case specified in Clause 4 of this Article: 1 copy bearing a true-copy mark of the concerned agency.
7. Duty exemption procedures must comply with Article 31 of this Decree.
Custom offices which carry out customs procedures shall monitor the import and export of goods within duty-free quotas by electronic mode. In case a customs office cannot do so, duty payers shall submit 1 copy and produce the original quota book to the customs office for monitoring and reconciliation.
8. Procedures for grant of duty-free quota books:
a/ A dossier of request for grant of a duty-free quota book to an agency or organization:
An official letter requesting the grant of a duty-free quota book, made by the diplomatic agency, consular agency, international organization or non-governmental organization according to Form No. 01 in Appendix VII to this Decree: 1 original.
An official letter notifying the establishment of a representative agency in Vietnam, in case of requesting the grant of a duty-free quota book for the first time: 1 copy bearing a true-copy mark of the concerned agency.
b/ A dossier of request for grant of a duty-free quota book to an individual:
An official letter requesting the grant of a duty-free quota book, made by the concerned diplomatic agency, consular agency, international organization or non-governmental organization according to Form No. 2 in Appendix VII to this Decree: 1 original.
The identity card granted by the Ministry of Foreign Affairs (for the subjects specified at Points a and b, Clause 1 of this Article): 1 copy bearing a true-copy mark of the concerned agency.
The work permit or another paper of equivalent validity, granted by a competent agency to a staff member of an international organization or non-governmental organization (for the subjects specified at Points c and d, Clause 1 of this Article): 1 copy bearing a true-copy mark of the concerned agency.
c/ Competence to grant duty-free quota books:
The Directorate of State Protocol - the Ministry of Foreign Affairs or an agency authorized by the Ministry of Foreign Affairs shall grant duty-free quota books to the agencies, organizations and individuals specified at Points a and b, Clause 1 of this Article within 5 working days after receiving a complete dossier.
Customs Departments of provinces or centrally run cities where the agencies and organizations specified in Clause 1 of this Article are located shall grant duty-free quota books to the agencies, organizations and individuals specified at Points c and d, Clause 1 of this Article within 5 working days after receiving a complete dossier.
The Ministry of Foreign Affairs shall continue to monitor and grant duty-free quota books to the subjects entitled to privileges and immunities specified at Point c, Clause 1 of this Article that have been granted duty-free quota books by the Ministry of Foreign Affairs before the effective date of this Decree.
After granting duty-free quota books, the agencies specified at this Point shall update information on duty-free quota books for the General Department of Customs via the national single-window portal.
Article 6. Duty exemption for luggage of persons on entry or exit
1. A person entering the country with a passport or passport substitute (excluding laissez-passers used for entry and exit) granted by a competent Vietnamese or foreign state agency and having carry-on luggage and/or luggage consigned before or after his/her trip is entitled to import duty exemption per entry within the following quotas:
a/ 1.5 liters of liquor containing more than 20% alcohol by volume or 2 liters of liquor containing below 20% alcohol or 3 liters of alcoholic beverage or beer;
In case such person carries liquor contained in a bottle, keg, jar or can (below referred to as bottle) of a volume exceeding the prescribed volume by no more than 1 liter, the whole bottle is entitled to duty exemption. The excessive volume that is greater than 1 liter is liable to duty in accordance with law;
b/ 200 cigarettes or 250 grams of shredded tobacco or 20 cigars;
c/ Personal articles with quantities and of types suitable to the purpose of the trip;
d/ Items other than those specified at Points a, b and c of this Clause (outside the lists of goods banned from import, suspended from import or subject to conditional import) with a total customs value not exceeding VND 10,000,000;
In case the customs value of these items exceeds the above quota, the person on entry may choose which items to be exempt from duty if his/her luggage contains more than one item.
2. Aircraft operators and cabin crew members of international flights; train operators and attendants on international trains; officers and crewmen on seagoing ships; drivers and Vietnamese workers working in countries that share land borders with Vietnam are entitled to the duty-free luggage quotas prescribed at Points a, b and d, Clause 1 of this Article for every 90 days rather than per entry. The quotas specified at Points a, b and d, Clause 1 of this Article do not apply to persons aged under 18.
3. Persons exiting the country with passports or passport substitutes granted by competent Vietnamese or foreign authorities whose carry-on luggage and/or luggage consigned before or after their trips do not contain goods on the lists of goods banned from export, temporarily suspended from export or subject to conditional export, are entitled to export duty exemption without any quotas.
4. Duty exemption dossiers are the customs dossiers prescribed by the customs law.
5. Duty exemption procedures must comply with Article 31 of this Decree.
Article 7. Duty exemption for movables
1. Organizations and individuals having movables defined in Clause 20, Article 4 of the Customs Law entitled to import duty or export duty exemption under Clause 2, Article 6 of the Law on Import Duty and Export Duty include:
a/ Foreigners and overseas Vietnamese entering Vietnam to work or study for at least 12 months;
b/ Vietnamese organizations and individuals returning to the country after having operated or worked for at least 12 months in a foreign country;
c/ Overseas Vietnamese citizens having registered permanent residence in Vietnam for the first-time import of movables.
2. For each organization or individual, the import duty-free quota for each movable (used or brand-new personal items used for work and daily-life activities, except automobiles and motorcycles) is 1 piece or set.
For agencies and organizations that have their operating expenses covered by the state budget, the Ministry of Finance shall decide on duty exemption for their movables that exceed duty-free quotas on a case-by-case basis.
3. A duty exemption dossier must comprise:
a/ A customs dossier as prescribed by the customs law;
b/ The work permit or document of equivalent validity granted by a competent agency, for foreigners and overseas Vietnamese entering Vietnam to work for at least 12 months: 1 copy bearing a true-copy mark of the concerned agency;
c/ A document proving the completion of operation or expiration of the overseas working period, for Vietnamese organizations and citizens returning to the country after having operated in a foreign country for at least 12 months: 1 copy bearing a true-copy mark of the concerned agency;
d/ The passport (bearing an entry stamp affixed by the border-gate immigration management unit or with a loose-leaf visa bearing an entry stamp affixed by the border-gate immigration management unit, for those who are granted loose-leaf visas) or a valid passport substitute (bearing an entry stamp affixed by the border-gate immigration management unit), for overseas Vietnamese having registered permanent residence in Vietnam: 1 copy bearing a true-copy mark of the concerned agency;
dd/ The permanent residence registration book granted by a public security agency and showing the permanent residence address in the foreign country, for overseas Vietnamese having registered permanent residence in Vietnam: 1 copy bearing a true-copy mark of the concerned agency;
e/ The Minister of Finance’s decision on duty exemption for movables in excess of duty-free quota: 1 original.
4. Duty exemption procedures must comply with Article 31 of this Decree.
Article 8. Duty exemption for presents and gifts
1. Presents and gifts entitled to duty exemption under Clause 2, Article 16 of the Law on Import Duty and Export Duty are commodity items outside the lists of goods banned from import or export or temporarily suspended from import or export and the list of exercise tax-liable commodity items (excluding excise tax-liable presents and gifts for security and defense purposes) as prescribed by law.
2. Duty-free quotas:
a/ Presents and gifts given by foreign organizations or individuals to Vietnamese organizations or individuals; presents and gifts given by Vietnamese organizations or individuals to foreign organizations or individuals with a customs value not exceeding VND 2,000,000 or with a customs value exceeding VND 2,000,000 and a total payable duty amount not exceeding VND 200,000, are entitled to duty exemption for at most 4 times per year;
b/ Presents and gifts given by foreign organizations or individuals to Vietnamese agencies and organizations which have their operating expenses covered by the state budget in accordance with the budget law; presents and gifts given for humanitarian or charity purposes with a customs value not exceeding VND 30,000,000 are entitled to duty exemption for at most 4 times per year.
For presents and gifts in excess of duty-free quotas given to agencies and organizations which have their operating expenses covered by the state budget, the Ministry of Finance shall decide on their duty exemption on a case-by-case basis.
c/ Medicines and medical equipment for treatment of diseases on the list of fatal diseases in Appendix IV to this Decree given by foreign organizations and individuals as presents or gifts to Vietnamese individuals which have a customs value not exceeding VND 10,000,000, are entitled to duty exemption for at most 4 times per year.
3. A duty exemption dossier must comprise:
a/ A customs dossier as prescribed by the customs law;
b/ The gift agreement, in case the recipient is an organization: 1 copy bearing a true-copy mark of the recipient.
In case the recipient is an individual, he/she shall declare accurately and truthfully on the customs declaration that the imported or exported goods are gifts or presents; and declare the name and address of the gift giver or recipient in the foreign country, and shall take responsibility before law for his/her declaration;
c/ The Ministry of Finance’s decision on duty exemption for gifts and presents in excess of duty-free quotas: 1 original;
d/ The managing agency’s written permission for receipt of duty-free goods for use or a document proving that the gift recipient is an agency or organization having its operating expenses covered by the state budget, for gifts and presents of agencies and organizations which have their operating expenses covered by the state budget: 1 original;
dd/ Document of the concerned provincial-level People’s Committee chairperson or managing ministry or sector, for presents and gifts for humanitarian or charity purposes: 1 original.
4. Duty exemption procedures must comply with Article 31 of this Decree.
Article 9. Duty exemption for goods traded or bartered by border residents
1. Goods on the Ministry of Industry and Trade-promulgated list of goods serving production and consumption by border residents, which are purchased, sold or bartered by border residents within the quotas specified in Appendix V to this Decree, are entitled to duty exemption under Clause 3, Article 16 of the Law on Import Duty and Export Duty.
For goods that are purchased and transported within the duty-free quotas but are not used for production or consumption by border residents, duty shall be declared and paid in accordance with regulations.
2. For imports or exports of traders of neighboring countries that are permitted to do business at border markets, import duty or export duty shall be paid in accordance with regulations.
3. A duty exemption dossier must comprise:
a/ A customs dossier as prescribed by the customs law;
b/ The border laissez-passer or citizen identity card: To produce the original.
4. Duty exemption procedures must comply with Article 31 of this Decree.
Article 10. Duty exemption for goods imported for export processing and for processed products for export
1. Goods imported for export processing and processed products for export under processing contracts which are entitled to import duty or export duty exemption under Clause 6, Article 16 of the Law on Import Duty and Export Duty include:
a/ Imported raw materials, semi-finished products, supplies (including also supplies for production of packaging or packaging of export products) and components which directly constitute export products or are directly used in the export production but are not directly transformed into goods, including also raw materials, supplies and components imported by processing parties themselves for performing processing contracts;
b/ Imported goods which are used as samples only but not for trading, barter or consumption;
c/ Machinery and equipment which are imported to serve processing activities as agreed in processing contracts;
d/ Finished products which are imported for being attached to or packed with processed products into goods in complete sets for export as stated in processing contracts or processing contract annexes, and are managed like raw materials and supplies imported for processing;
dd/ Components and spare parts which are imported for provision of warranty for processed products for export as in stated in processing contracts or processing contract annexes, and are managed like raw materials and supplies imported for processing;
e/ Goods which are imported for processing but permitted to be destroyed in Vietnam and have actually been destroyed.
Duty exemption for goods imported for processing but later used as presents or gifts must comply with Article 8 of this Decree.
Upon expiration of the performance duration of a processing contract, goods which are imported for processing and remain unused shall be re-exported. In case such goods are not re-exported, duty shall be declared and paid in accordance with regulations;
g/ Processed products for export.
When being exported, processed products, which are made from domestic raw materials and supplies liable to export duty, are subject to an export duty on the value of these domestic raw materials and supplies at the rate applicable to such raw materials and supplies.
2. Grounds for determining goods’ eligibility for duty exemption:
a/ Having a processing contract as prescribed in the Government’s Decree No. 187/2013/ND-CP of November 20, 2013, detailing the Commercial Law regarding international goods sale and purchase activities and goods sale and purchase agency, processing and transit with foreign parties.
Duty payers shall declare on customs declarations the serial number and date of the processing contract and name of the processing-ordering party;
b/ Duty payers or organizations or individuals undertaking the processing for duty payers have export production or processing facilities in the Vietnamese territory and have announced information relating to such facilities in accordance with the customs law and have notified the customs office of their processing contracts.
c/ Imported raw materials, supplies and components are used to process or produce products which have actually been exported.
The value or volume of imported raw materials, supplies and components exempted from duty is that of imported raw materials, supplies and components which have actually been used to produce processed products already exported and shall be determined when finalizing raw materials and supplies imported for export processing in accordance with the customs law.
When making finalization, duty payers shall declare accurately and truthfully the value or volume of exported materials and supplies actually used to produce processed products actually imported, which has been exempted from duty upon customs clearance.
3. Equipment, machinery, raw materials, supplies, components and processed products received from foreign parties as payment for the processing are subject to import duty as prescribed.
4. When being used for domestic consumption, scraps, discarded products and redundant volume of raw materials and supplies imported for processing, which account for no more than 3% of the total volume of all raw materials and supplies actually imported under processing contracts, are entitled to import duty exemption but are subject to value-added tax, excise tax and environmental protection tax (if any) which shall be declared and paid to customs offices.
5. Duty exemption dossiers and procedures must comply with Article 31 of this Decree.
Article 11. Duty exemption for goods exported for processing, and for processed products for import
1. Goods exported for processing and processed products for import under processing contracts which are entitled to import duty or export duty exemption under Clause 6, Article 16 of the Law on Import Duty and Export Duty include:
a/ Exported raw materials, supplies and components.
The value or volume of raw materials, supplies and components actually exported corresponding to the quantity of processed products that are not imported back to the country are subject to export duty at the rate applicable to such raw materials, supplies and components.
Goods exported for processing which are natural resources, minerals, and products with a total value of natural resources or minerals plus energy cost accounting for 51% or more of production costs, and goods exported for processing which are subject to export duty, are not entitled to export duty.
The identification of products with a total value of natural resources or minerals plus energy cost accounting for less than 51% of production costs shall be based on regulations on identification products with a total value of natural resources or minerals plus energy cost accounting for 51% or more of production costs in the Government’s Decree No. 100/2016/ND-CP of July 1, 2016, detailing and guiding the implementation of a number of articles of the Law Amending and Supplementing a Number of Articles of the Law on Value-Added Tax, the Law on Excise Tax and the Law on Tax Administration and guiding documents;
b/ Exported goods which are used as samples only but not used for sale, purchase, barter or consumption;
c/ Machinery and equipment exported to serve processing activities as agreed in processing contracts;
d/ For products which are ordered to be processed overseas, when being imported back to Vietnam, the value of exported raw materials, supplies and components constituting such products are entitled to import duty exemption while the remaining value is subject to import duty at the rate applicable to such products.
2. Grounds for determining goods’ eligibility for duty exemption
a/ Duty payer have processing contracts as prescribed in the Government’s Decree No. 187/2013/ND-CP of November 20, 2013, detailing the Commercial Law regarding international goods sale and purchase activities and goods sale and purchase agency, processing and transit with foreign parties.
b/ Exported raw materials, supplies, components are used to process or produce products which have already been imported.
The value or volume of exported raw materials, supplies and components exempted from duty is that of exported materials, supplies and components actually used to produce processed products already imported and shall be determined when finalizing raw materials and supplies imported for export processing in accordance with the customs law.
When making finalization, duty payers shall declare accurately and truthfully the value or volume of exported raw materials and supplies actually used to produce processed products already imported, which have been exempted from duty upon customs clearance.
3. Duty exemption dossiers and procedures must comply with Article 31 of this Decree.
Duty payers shall declare on customs declarations the serial number and date of processing contracts; serial number and date of notices of exported products with a total of value of natural resources or minerals plus energy costs accounting for less than 51% of production cost sent to customs offices.
Article 12. Duty exemption for goods imported for export production
1. Raw materials, supplies, components, semi-finished products and finished products imported for export production entitled to import duty exemption under Clause 7, Article 16 of the Law on Import Duty and Export Duty include:
a/ Imported raw materials, supplies (including also supplies for production of packaging or for packaging of export products), components and semi-finished products which directly constitute export products or are directly used in the export production but are not directly transformed into goods;
b/ Finished products which are imported for being attached to or assembled with export products or packed with export products into goods in complete sets;
c/ Components and spare parts which are imported for provision of warranty for export products;
d/ Imported goods which are used as samples only but not for trading, barter or consumption.
2. Grounds for determining goods’ eligibility for duty exemption:
a/ Organizations or individuals producing exported goods have export production facilities in the Vietnamese territory; have the right to own or use machinery and equipment at such facilities suitable to raw materials, supplies and components imported to produce exported goods and have announced information relating to their production facilities in accordance with the customs law;
b/ Imported raw materials, supplies and components are used to produce products that have already been exported.
The value or volume of imported materials, supplies and components exempted from duty is the value or volume of imported raw materials, supplies and components actually used to produce products already exported and shall be determined when finalizing raw materials and supplies imported for export production in accordance with the customs law.
When making finalization, duty payers shall declare accurately and truthfully the value or volume of exported materials and supplies actually used to produce processed products actually imported, which have been exempted from duty upon customs clearance.
3. Duty exemption dossiers and procedures must comply with Article 31 of this Decree.
Article 13. Duty exemption for goods temporarily imported for re-export or temporarily exported for re-import within a certain period of time
1. Goods temporarily imported for re-export or temporarily exported for re-import within a certain period of time are entitled to duty exemption under Clause 9, Article 16 of the Law on Import Duty and Export Duty.
2. In case goods are temporarily imported for re-export or temporarily exported for re-import for warranty, repair or replacement specified at Point c, Clause 9, Article 16 of the Law on Import Duty and Export Duty, it must be ensured that there is no change in the shape, utilities and basic properties of such temporarily imported or exported goods and that no other goods are turned out.
In case of replacement of goods under warranty provisions of sale and purchase contracts, the replacing goods must ensure the shape, utilities and basic properties of the replaced goods.
3. Equipment which are rotated by the mode of temporary import for re-export or temporary export for re-import to contain imported or exported goods include:
a/ Empty containers, with or without suspension hooks;
b/ Flexible tanks inside containers for liquid storage;
c/ Other equipment which may be used for many times to contain imported or exported goods.
4. Duty exemption dossiers and procedures must comply with Article 31 of this Decree.
For goods temporarily imported for re-export, duty payers shall additionally submit a letter of guarantee issued by a credit institution or a receipt of payment of a deposit into the state treasury account of the customs office: 1 original, in case the letter of guarantee has not yet been updated to the customs e-data processing system.
The provision of guarantee or making of a deposit to secure payment of import duty for goods temporarily imported for re-export must comply with Article 4 of this Decree.
Article 14. Duty exemption for goods imported to create fixed assets of subjects eligible for investment incentives
1. Goods imported to create fixed assets of subjects eligible for investment incentives are entitled to import duty exemption under Clause 11, Article 16 of the Law on Import Duty and Export Duty.
2. In case goods are imported to create fixed assets for an investment project with a component eligible to investment incentives, those goods which are allocated and accounted separately for use directly for such component are entitled to import duty exemption.
3. Goods imported to create fixed assets to serve production activities of investment projects which are implemented in geographical areas eligible for investment incentives but do not belong to the sectors and trades eligible for investment incentives, are entitled to import duty exemption.
4. Grounds for identification of domestically unavailable building materials must comply with the Ministry of Planning and Investment’s regulations.
Criteria for identification of special-use vehicles in technology lines directly used for production activities of investment projects must comply with the Ministry of Science and Technology’s regulations.
5. Duty exemption dossiers and procedures must comply with Articles 30 and 31 of this Decree.
Article 15. Duty exemption for raw materials, supplies and components for a five-year period
1. Domestically unavailable raw materials, supplies and components which are imported to serve production activities of projects on the list of sectors and trades eligible for special investment incentives or in geographical areas with extremely difficult socio-economic conditions as prescribed by the law on investment, of hi-tech enterprises, science and technology enterprises, or science and technology organizations are entitled to import duty exemption for 5 years from the date of commencement of production under Clause 13, Article 16 of the Law on Import Duty and Export Duty.
The time of commencement of production is the time when production activities are officially started, excluding the trial production period. Duty payers shall make and take responsibility for their declaration of the date of actual commencement of production and notify such to the customs office which receives their dossiers of notification of the list of duty-free goods before carrying out customs procedures.
Past the five-year duty-exemption period, duty payers shall fully pay duty under regulations for the unused volume of imported duty-free raw materials, supplies and components.
2. The identification of products with a total value of natural resources or minerals plus energy cost accounting for less than 51% of production costs must comply with regulations on identification of products with a total value of natural resources or minerals plus energy cost accounting for 51% or more of production costs in the Government’s Decree No. 100/2016/ND-CP of July 1, 2016, detailing and guiding the implementation of a number of articles of the Law Amending and Supplementing a Number of Articles of the Law on Value-Added Tax, the Law on Excise Tax and the Law on Tax Administration and guiding documents.
3. Grounds for identification of sectors and trades eligible for special investment incentives or of geographical areas with extremely difficult socio-economic conditions must comply with the Investment Law and the Government’s Decree No. 118/2015/ND-CP of November 12, 2015, detailing and guiding a number of articles of the Investment Law.
Grounds for identification of domestically unavailible raw materials, supplies and componets must comply with the Ministry of Planning and Invetsment’s regulations.
4. Duty exemption dossiers and procedures must comply with Articles 30 and 31 of this Decree.
Article 16. Duty exemption for goods imported to serve petroleum activities
1. Goods imported to serve petroleum activities are entitled to import duty exemption under Clause 15, Article 16 of the Law on Import Duty and Export Duty.
2. Grounds for identification of special-use vehicles directly serving petroleum activities must comply with the Ministry of Science and Technology’s regulations.
3. Grounds for identification of domestically unavailable goods must comply with the Ministry of Planning and Investment’s regulations.
4. Duty exemption dossiers and procedures must comply with Articles 30 and 31 of this Decree.
Article 17. Duty exemption for goods imported to serve the building of ships and seagoing ships for export
1. Shipbuilding projects and establishments on the list of sectors and trades eligible for investment incentives in accordance with the investment law are entitled import duty and export duty exemption under Clause 16, Article 16 of the Law on Import Duty and Export Duty.
2. Grounds for identification of special-use vehicles included in technology lines directly serving shipbuilding activities must comply with the Ministry of Science and Technology’s regulations.
3. Grounds for identification of domestically unavailable goods must comply with the Ministry of Planning and Investment’s regulations.
4. Duty exemption dossiers and procedures must comply with Articles 30 and 31 of this Decree.
Article 18. Duty exemption for plant varieties, animal breeds, fertilizers and pesticides
1. Domestically unavailable plant varieties, animal breeds, fertilizers and pesticides which are imported to directly serve agricultural, forestry or fishery activities are entitled to import duty exemption under Clause 12, Article 16 of the Law on Import Duty and Export Duty.
2. Grounds for identification of domestically unavailable goods must comply with the Ministry of Planning and Investment’s regulations.
3. Grounds for identification of goods on the list of plant varieties, animal breeds, fertilizers and pesticides which need to be imported must comply with the Ministry of Agriculture and Rural Development’s regulations.
Article 19. Duty exemption for goods imported to serve scientific research and technological development
1. Imported goods which are directly used for scientific research and technological development, development of technology incubation, science and technology enterprise incubation and technology renovation are entitled to import duty exemption under Clause 21, Article 16 of the Law on Import Duty and Export Duty.
2. Grounds for identification of domestically unavailable goods must comply with the Ministry of Science and Technology’s regulations.
Grounds for identification of special-use machinery, equipment, spare parts and supplies directly serving scientific research and technological development, development of technology incubation, science and technology enterprise incubation and technology renovation must comply with the Ministry of Science and Technology’s regulations.
3. The list of or criteria for identifying special-use scientific documents, newspapers and books directly serving scientific research and technological development, development of technology incubation, science and technology enterprise incubation and technology renovation must comply with the Ministry of Science and Technology’s regulations.
4. A duty exemption dossier must comprise:
In addition to the documents prescribed in Article 31 of this Decree, on a case-by-case a duty payer shall additionally submit one of the following papers:
a/ The decision on the implementation of a scientific research and technological development subject, program, project or task and a list of goods that need to be imported to implement such subject, program, project or task, issued by a competent state agency in accordance with the Law on Science and Technology: 1 copy bearing a true-copy mark of the concerned agency;
b/ A document certifying the list of goods for development of technology incubation, science and technology enterprise development, issued by the line ministry or the provincial-level People’s Committee of the locality where the technology incubation or science and technology enterprise incubation project or establishment is implemented or located: 1 copy bearing a true-copy mark of the concerned agency;
c/ A document certifying the list of goods serving technology renovation issued by the Ministry of Science and Technology or an agency authorized by the Ministry of Science and Technology: 1 copy bearing a true-copy mark of the agency.
5. Duty exemption procedures must comply with Article 31 of this Decree.
Article 20. Duty exemption for goods imported to directly serve security and defense
1. Special-use goods which are imported to directly serve security and defense, of which special-use vehicles must be those domestically unavailable, are entitled to import duty exemption under Clause 22, Article 16 of the Law on Import Duty and Export Duty.
2. Grounds for identification of goods’ eligibility for duty exemption:
a/ Goods are included in annual plans on import of special-use goods to directly serve security and defense approved by the Prime Minister or the Minister of Public Security or the Minister of National Defense under the authorization of the Prime Minister.
b/ Special-use vehicles are domestically unavailable according to the Ministry of Planning and Investment’s regulations.
3. A duty exemption dossier must comprise:
a/ An official letter made by the Ministry of National Defense or the Ministry of Public Security or a unit authorized by the former according to Form 3a in Appendix VII to this Decree (for cases of requesting duty exemption before customs procedures are carried out) or Form 3b in Appendix VII to this Decree (for cases of requesting duty exemption after customs procedures are carried out): 1 original;
b/ The goods sale and purchase contract: 1 copy bearing a true-copy mark of the concerned agency;
c/ The import entrustment contract or goods supply contract according to the document announcing the winning contractor or appointing a contractor, clearly stating the goods price exclusive of import duty, in case of entrusted import or bidding: 1 copy bearing a true-copy mark of the concerned agency;
4. Duty exemption procedures:
a/ In case of requesting duty exemption before carrying out customs procedures, the Ministry of National Defense or Ministry of Public Security or a unit authorized or delegated by the former shall send a dossier of request for duty exemption to the General Department of Customs at least 5 working days before registering a customs declaration.
Within 3 working days after receiving the dossier, the General Department of Customs shall issue a notice of goods’ eligibility or ineligibility for duty exemption or request supplementation of the dossier.
The Customs Branch which carries out customs procedures shall base itself on the General Department of Customs’ notice of duty exemption to clear customs procedures under regulations.
b/ For cases of requesting duty exemption after carrying out customs procedures:
The Ministry of National Defense or Ministry of Public Security or a unit authorized by the former shall send a dossier of request for duty exemption to the General Department of Customs.
Within 3 working days after receiving the dossier, the General Department of Customs shall issue a notice of goods’ eligibility or ineligibility for duty exemption or request the duty payer to supplement the dossier.
The Customs Branch which has carried out customs procedures shall base itself on the General Department of Customs’ notice of duty exemption to clear customs procedures under regulations.
Article 21. Duty exemption for goods imported to directly serve education activities
1. Domestically unavailable special-use goods which are imported to directly serve education activities are entitled to import duty exemption under Clause 20, Article 16 of the Law on Import Duty and Export Duty.
2. Grounds for identification of domestically unavailable goods must comply with the Ministry of Planning and Investment’s regulations.
3. Grounds for identification of special-use goods imported to directly serve education activities must comply with the Ministry of Education and Training’s regulations.
4. Duty exemption dossiers and procedures must comply with Article 31 of this Decree.
Article 22. Duty exemption for goods produced, processed, recycled or assembled in non-tariff zones
1. Goods which are produced, processed, recycled or assembled in a non-tariff zone without using raw materials and components imported from abroad, when being imported into the domestic market, are entitled to import duty exemption under Clause 8, Article 16 of the Law on Import Duty and Export Duty.
2. In case products are made, processed or assembled in a non-tariff zone from raw materials and components imported from abroad, when being imported into the domestic market, import duty shall be paid at the rate and based on the dutiable value of goods imported into the inland.
3. Duty exemption dossiers and procedures must comply with Article 31 of this Decree.
Article 23. Duty exemption for raw materials, supplies and components imported to produce or assemble medical equipment
1. Domestically unavailable raw materials, supplies and components imported to produce or assemble medical equipment under investment projects prioritized for research or manufacture are entitled to import duty exemption for 5 years from the date of production commencement under Clause 14, Article 16 of the Law on Import Duty and Export Duty.
The list of medical equipment prioritized for research or manufacture is provided in Appendix VI to this Decree.
2. The date of commencement of production activities which serves the application of duty exemption in a five-year period for the cases specified in Clause 1 of this Article is the date when production activities are officially started, excluding the period of trial production.
Duty payers shall declare the date of production commencement and take responsibility for their declaration and notify such date to the customs office which receives their dossiers of notification of the list of duty-exempt goods before carrying out customs procedures.
3. Grounds for identification of domestically unavailable goods must comply with the Ministry of Planning and Investment’s regulations.
4. Duty exemption dossiers and procedures must comply with Articles 30 and 31 of this Decree.
Article 24. Duty exemption for raw materials, supplies and components imported to directly serve the production of information technology products, digital content and software
1. Domestically unavailable raw materials, supplies and components imported to directly serve the production of information technology products, digital content and software are entitled to import duty exemption under Clause 18, Article 16 of the Law on Import Duty and Export Duty
2. Grounds for identification of domestically unavailable goods must comply with the Ministry of Planning and Investment’s regulations.
3. Duty exemption dossiers and procedures must comply with Articles 30 and 31 of this Decree.
Article 25. Duty exemption for goods imported or exported for environmental protection
1. Goods imported or exported for environmental protection are entitled to duty exemption under Clause 19, Article 16 of the Law on Import Duty and Export Duty.
2. Grounds for identification of domestically unavailable goods must comply with the Ministry of Planning and Investment’s regulations.
3. Grounds for identifying imports on the list of special-use machinery, equipment, instruments, devices and supplies imported for collection, transportation, treatment and processing of wastewater, garbage or exhaust gas, for environmental monitoring and analysis, generation of renewable energy; for treatment of environmental pollution and response to or handling of environmental incidents; and exports produced from waste recycling or treatment must comply with the Ministry of Natural Resources and Environment’s regulations.
4. Duty exemption dossiers and procedures must comply with Article 31 of this Decree.
Article 26. Duty exemption for goods serving money printing and minting
1. Machinery, equipment, materials, supplies, components, parts and spare parts imported to serve money printing and minting under Clause 17, Article 16 of the Law on Import Duty and Export Duty must be those on the list promulgated by the Governor of the State Bank of Vietnam.
Goods entitled to duty exemption under Clause 1 of this Article shall be imported by organizations appointed by the State Bank.
2. Grounds for identifying machinery, equipment, materials, supplies, components, parts and spare parts imported to serve money printing and minting must comply with regulations of the State Bank of Vietnam.
3. Duty exemption dossier:
a/ The customs dossier as prescribed by the customs law;
b/ The State Bank’s written permission for the import of machinery, equipment, materials, supplies, components, parts and spare parts to serve money printing or minting: 1 copy bearing a true-copy mark.
4. The duty exemption procedures must comply with Article 31 of this Decree.
Article 27. Import duty exemption for non-commercial goods
Non-commercial goods are entitled to duty exemption in the following cases:
1. Samples, photographs or films of samples, mock-ups as substitutes for samples which have a customs value of VND 50,000 at most or which have been processed to be used only as samples but not for sale.
2. Advertising publications under Chapter 49 of Vietnam’s List of imports and exports, including leaflets, commercial catalogs, directories, advertising documents and tourist posters used for advertising, announcing or promoting a free goods or service, are entitled to duty exemption under Clause 10, Article 16 of the Law on Import Duty and Export Duty, provided that each batch of goods contains only 1 type of publication with a total weight of 1 kg at most. In case a batch contains different types of publications, each type of publication must have only one copy or the total weight of these publications must not exceed 1 kg.
3. Duty exemption dossiers and procedures must comply with Article 31 of this Decree.
Article 28. Duty exemption for goods imported or exported to serve social security, overcoming of consequences of natural disasters, calamities and epidemics and other special cases
1. Goods imported or exported to serve social security, overcoming of consequences of natural disasters, calamities and epidemics, and in other special cases are entitled to duty exemption under Clause 23, Article 16 of the Law on Import Duty and Export Duty, comprising:
a/ Domestically unavailable goods which need to be imported for direct use in projects under the Government’s social security program are entitled to import duty exemption;
b/ Domestically unavailable goods to be imported for overcoming consequences of natural disasters, calamities and epidemics are entitled to import duty exemption;
c/ Goods imported or exported in other special cases as decided by the Prime Minister on a case-by-case basis are entitled to import or export duty exemption.
2. Grounds for identifying domestically unavailable goods must comply with regulations of the Ministry of Planning and Investment.
3. A dossier of request for duty exemption before customs clearance for goods imported to overcome consequences of a natural disaster or calamity or an epidemic must comprise:
a/ A written request for duty exemption, made by a provincial-level People’s Committee or ministry or equivalent, which must clearly specify the damage caused by the disaster, calamity or epidemic in the locality: 1 original;
b/ A list of goods to be imported to directly serve the overcoming of consequences of the disaster, calamity or epidemic, made according to Form No. 04 in Appendix VII to this Decree: 1 original;
c/ The decision announcing the epidemic issued by a competent authority in accordance with the Law on Prevention and Control of Infectious Diseases, for import of goods to overcome an epidemic: 1 copy bearing a true-copy mark of the concerned authority.
4. A dossier of request for duty exemption before customs clearance for goods imported to directly serve social security must comprise:
a/ A written request for duty exemption, made by a provincial-level People’s Committee or ministry or equivalent: 1 original;
b/ A list of goods to be imported to directly serve social security, made according to Form No. 04 in Appendix VII to this Decree: 1 original.
5. Duty exemption procedures:
a/ On the basis of the written request for duty exemption made by a provincial-level People’s Committee or ministry or equivalent, within 15 days, the Ministry of Finance shall appraise the duty exemption request dossier and submit it together with the list of goods proposed for duty exemption to the Prime Minister for decision.
b/ On the basis of the Prime Minister’s directing opinion, the Customs Branch which clears import or export procedures shall grant import or export duty exemption in accordance with regulations.
6. Dossier of request and procedures for duty exemption for goods imported to directly serve emergency relief upon occurrence of a natural disaster or calamity or an epidemic, comprising:
a/ The customs dossier as prescribed in Article 24 of the Customs Law;
b/ A written certification by a provincial-level People’s Committee, ministry or equivalent of the import of goods to serve emergency relief, which must clearly specify the damage caused by the disaster, calamity or epidemic in the locality: 1 original;
c/ A list of goods imported to directly serve emergency relief: 1 original;
d/ The decision announcing the epidemic issued by a competent authority in accordance with the Law on Prevention and Control of Infectious Diseases, for import of goods to overcome an epidemic: 1 copy.
On the basis of the duty exemption request dossier prescribed in this Clause, the customs office which clears customs procedures shall grant duty exemption when clearing customs procedures.
Article 29. Duty exemption for goods imported or exported under treaties, goods with a minimal value, goods sent via express delivery service
1. Imports or exports are entitled to import or export duty exemption in accordance with treaties to which the Socialist Republic of Vietnam is a contracting party.
Grounds for identifying imports or exports entitled to import or export duty exemption are the quantity, category and value of goods specified under a treaty.
In case a treaty does not specify the category and quantity of goods entitled to duty exemption, the Ministry of Finance shall reach agreement with the Ministry of Foreign Affairs in proposing the Prime Minister to decide on the category and quantity of goods entitled to duty exemption.
2. Imports sent via express delivery service which have a customs value of VND 1,000,000 or lower, or have a payable duty of under VND 100,000 are entitled to duty exemption.
For goods with a customs value of more than VND 1,000,000 or a payable duty of over VND 100,000, duty shall be paid for the whole batch of such goods.
3. Goods with a customs value of under VND 500,000 or a payable import or export duty of under VND 50,000 for each importation or exportation are entitled to import or export duty exemption.
This Clause does not apply to goods being gifts or presents, goods purchased, sold or bartered between border inhabitants and goods sent via express delivery service.
4. Duty exemption dossier:
The customs dossier as prescribed by the customs law;
For goods imported or exported under a treaty, the duty payer shall additionally submit:
a/ Treaty: 1 copy together with the original for comparison upon submission of the first-time duty exemption dossier;
b/ Entrustment contract, goods supply contract according to the bid winning document or contractor appointment document, which must clearly state the goods price exclusive of import duty, for import entrustment or bidding: 1 copy bearing a true-copy mark of the concerned agency.
5. The duty exemption procedures must comply with Article 31 of this Decree.
Article 30. Notification of lists of duty-free goods to be imported for cases of notifying duty-free goods lists
1. Cases of notifying duty-free imports lists include goods entitled to duty exemption prescribed in Articles 14, 15, 16, 17, 18, 23 and 24 of this Decree.
2. Principles of making a list of duty-free goods to be imported (below referred to as duty-free goods list):
a/ Organizations or individuals using goods (project owners; production and business establishment owners; shipbuilding establishment owners; organizations or individuals carrying out oil and gas activities), below collectively referred to as project owners, shall notify duty-free imports or exports lists. In case the principal contractor, subcontractor or financial leasing company, but not the project owner, directly imports duty-free goods but, such contractor or company shall use the duty-free goods list notified by the project owner to the customs office;
b/ Goods must be eligible for duty exemption in one of the cases prescribed in Clauses 11, 12, 13, 14, 15, 16 and 18, Article 16 of the Law on Import Duty and Export Duty; and be suitable to the investment line or field, objectives, size and capacity of projects, production establishments or activities using duty-free goods;
c/ A duty-free goods list shall be made once for a project, production establishment or activities using duty-free goods, or by phase, item, group or line suitable to the reality and project implementation dossier, production establishment or activities using duty-free goods, below referred to as project.
3. A notification dossier of a duty-free goods list must comprise:
a/ An official notice of a duty-free goods list, which must clearly state grounds for determining duty-free goods, made according to Form No. 05 in Appendix VII to this Decree: 1 original;
b/ The duty-free goods list to be sent via the customs office’s e-data processing system. In case the system experiences a technical breakdown or the duty-free goods list is notified in writing: duty-free goods list made according to Form No. 06 in Appendix VII to this Decree: 2 originals, and reconciliation monitoring slip, made according to Form No. 07 in Appendix VII to this Decree: 1 original;
c/ The investment registration certificate, enterprise registration certificate or an equivalent paper, except in case of duty exemption prescribed in Clause 15, Article 16 of the Law on Import Duty and Export Duty: 1 copy bearing a true-copy mark of the concerned agency;
d/ An extract of the economic-technical justification, technical document or project description: 1 copy bearing a true-copy mark of the concerned agency;
dd/ The certificate of hi-tech enterprise, science and technology enterprise or science and technology organization issued by a competent agency, for hi-tech enterprises, science and technology enterprises or science and technology organizations: 1 copy bearing a true-copy mark of the concerned agency;
e/ The certificate of eligibility for medical equipment manufacture or an equivalent paper as prescribed by the law on medical equipment management, in case of duty exemption under Clause 14, Article 16 of the Law on Import Duty and Export Duty: 1 copy bearing a true-copy mark of the concerned agency;
g/ The oil and gas contract, decision assigning oil and gas activities or a competent agency’s written approval of the annual work program and annual budget, in case of duty exemption under Clause 15, Article 16 of the Law on Import Duty and Export Duty: 1 copy bearing a true-copy mark of the concerned agency;
h/ The shipbuilding contract or ship export contract, in case of duty exemption under Point b or c, Clause 16, Article 16 of the Law on Import Duty and Export Duty: 1 copy bearing a true-copy mark of the concerned agency;
i/ A written description of the project to produce information technology products, digital content or software, in case of duty exemption under Clause 18, Article 16 of the Law on Import Duty and Export Duty: 1 copy bearing a true-copy mark of the concerned agency;
k/ The goods sale contract, contract on goods supply according to bidding results, goods export or import entrustment contract or financial leasing contract, in case the importer is not the one notifying the duty-free goods list: 1 copy bearing a true-copy mark of the concerned agency.
4. Time and place for duty-free goods list notification:
a/ A project owner shall send a duty-free goods list notification dossier in accordance with Clause 2 of this Article before registering the first declaration of duty-free imports;
b/ The place for receiving a duty exemption notice is the provincial-level Customs Department of the locality where the project is implemented, the head office is based, or the project is centrally managed, for projects implemented in various provinces and cities, or the provincial-level Customs Department of the locality where the group or line is installed, for lists of duty-free goods to be imported by group or line.
5. For a notified duty-free goods list which contains errors or needs modification, before importing goods the project owner shall notify the modified duty-free goods list together with relevant documents to prove that such modification and adjustment meet the project’s requirements.
6. Responsibilities of a customs office:
a/ Within 3 working days after receiving a dossier, to notify the project owner of its receipt of the duty-free goods list; or request supplementation of the dossier in accordance with Clause 2 of this Article, or explanation and clarification of details of the duty-free goods list notification dossier; or notify the project owner of the goods’ ineligibility for duty exemption;
b/ In case modifications to a duty-free goods list lead to a change in the exempted duty amount, the customs office receiving the duty-free goods list notification dossier shall notify such to the customs office clearing import procedures for recovering the duty amount which has been exempted improperly;
c/ To inspect the use of duty-free goods by applying the risk management mechanism prescribed by the tax administration law and customs law;
d/ To withdraw the duty-free goods list or to notify the project owner to adjust the duty-free goods list, to halt duty exemption procedures and recover the exempted tax amount suitable to the project which has terminated or adjusted its operation, for projects terminating or adjusting their operation.
7. Responsibilities of a project owner:
a/ To make duty-free goods lists in accordance with Clause 1 of this Article;
b/ To notify duty-free goods lists, modify duty-free goods lists and receive feedback from the customs office through the latter’s e-data processing system (except in case the electronic method cannot be applied yet);
c/ To make accurate, truthful and complete declarations and send duty-free goods list notification dossiers on time; to take responsibility before law for the accuracy, truthfulness and completeness of duty-free goods list notification dossiers, to use duty-free goods for proper purposes;
d/ To keep documents relating to the grounds for identifying imports and exports eligible for duty exemption and produce them to customs offices and competent agencies for inspection and examination in accordance with regulations;
dd/ Within 90 days after the end of a fiscal year, to report on the use of duty-free goods in the fiscal year to the customs office that has received the duty-free goods list.
Article 31. Duty exemption dossiers and procedures upon customs clearance
1. A duty exemption dossier is a customs dossier as prescribed by the Customs Law and its guiding documents.
2. In addition to the dossier prescribed in Clause 1 of this Article, depending on each specific case, a duty payer shall submit one of the following documents:
a/ In the case of goods import or export entrustment, the entrustment contract: 1 copy bearing a true-copy mark of the concerned agency;
b/ In the case of goods import by a bid winner, the contract on goods supply according to the bid winning document or contractor appointment document, which must clearly state the goods supply price exclusive of import duty: 1 copy bearing a true-copy mark of the concerned agency;
c/ In the case of goods import by an organization or individual for oil and gas activities, the contract on goods supply for the organization or individual conducting oil and gas activities, which must clearly state the goods price exclusive of import duty: 1 copy bearing a true-copy mark of the concerned agency;
d/ In the case of financial leasing of goods import for supply to an eligible beneficiary of duty exemption, the financial leasing contract which must clearly state the goods supply price exclusive of import duty: 1 copy bearing a true-copy mark of the concerned agency;
dd/ In the case of goods transfer from an eligible beneficiary of duty exemption to another eligible beneficiary of duty exemption, the document on transfer of goods of the eligible beneficiary of duty exemption, which must clearly state the goods transfer price exclusive of import duty: 1 copy bearing a true-copy mark of the concerned agency;
e/ For a vehicle prescribed in Article 14 of this Decree, the Ministry of Science and Technology’s certification: 1 original;
g/ In the case of written notification of the list of duty-free goods to be imported, the duty-free goods list and reconciliation monitoring slip already received by the customs office: 1 copy produced with the original for comparison.
In the case of notifying a duty-free goods list through the e-data processing system, a duty payer is not required to submit the duty-free goods list. The customs office shall use the duty-free goods list on the e-data processing system to grant duty exemption in accordance with regulations.
3. Duty exemption procedures:
a/ When carrying out customs procedures, a duty payer shall determine and declare goods and the exempted duty amount (except declaration of the payable duty amount for goods imported or exported for subcontract production provided by the party hiring the subcontract production) in the customs declaration and take responsibility before law for such declaration;
b/ The customs office clearing customs procedures shall, based on the duty exemption dossier, refer to current regulations to grant duty exemption in accordance with regulations.
When determining that imports are not eligible for duty exemption as declared, the customs office shall collect duty and sanction violations (if any) in accordance with regulations.
c/ The e-data processing system automatically reconciles the quantity of imports or exports corresponding to the quantity of goods on the duty-free goods list.
In case of written notification of the list, the customs office shall update and reconcile the quantity of imports or exports corresponding to the quantity of goods on the duty-free goods list.
In case of group- or line-based import of duty-free goods which have to be imported in various batches at different times to be assembled into a complete group or line and for which reconciliation of the quantity of goods at the time of importation cannot be done, within 15 days after importing the last batch of goods of each group or line, the organization or individual shall summarize declarations of goods already imported and make finalization with the customs office in accordance with the tax administration law.
4. Duty exemption procedures for organizations’ goods in excess of the duty-free quotas prescribed in Clause 2, Article 7, and Clause 2, Article 8, of this Decree:
a/ A duty exemption request dossier shall be sent to the General Department of Customs at least 15 working days before carrying out customs procedures;
b/ In case the duty exemption request dossier is incomplete, within 5 working days after receiving the dossier, the General Department of Customs shall notify such to the organization or individual for completion of the dossier;
c/ Within 15 working days after receiving a complete dossier, the Ministry of Finance shall issue a duty exemption decision or notify the non-exemption from duty at the proposal of the General Department of Customs;
d/ On the basis of the customs dossier and the Ministry of Finance’s duty exemption decision, the duty payer and customs office clearing customs procedures shall carry out duty exemption procedures upon customs clearance in accordance with Clause 3 of this Article.
Article 32. Import and export duty reduction
1. Imports or exports currently under customs inspection as prescribed by the 2014 Customs Law and its guiding documents which are damaged or lost due to objective causes are entitled to duty reduction in accordance with Clause 1, Article 18 of the Law on Import Duty and Export Duty.
2. A duty reduction request dossier must comprise:
a/ The duty payer’s written request for duty reduction, made according to Form No. 08 in Appendix VII to this Decree: 1 original;
b/ The insurance contract, the insurer’s notice of indemnity payment (if any), the insurer’s certification if the insurance contract does not cover tax-related indemnities; contract on or record of agreement on compensation by the carrier if the loss is caused by a carrier (if any): 1 copy bearing a true-copy mark of the concerned agency;
c/ The record identifying the cause of the damage, made by a specialized agency in the locality where such damage arises (record of fire made by the fire prevention and fighting police office of the locality where the fire occurs; the district-level People’s Committee’s written certification of a natural disaster, fire or unexpected incident causing damage to imported materials, machinery or equipment): 1 original.
The record or document identifying the cause of the damage shall be made within 30 days after the damage arises;
d/ An assessment service provider’s assessment certificate of the quantity of lost goods or the actual loss rate of goods: 1 original.
An assessment certificate shall be made within 30 days after a natural disaster, fire or unexpected incident occurs.
3. Duty reduction procedures and competence:
a/ A duty payer shall submit a dossier to the customs branch at the time of carrying out customs procedures or within 30 working days after a written certification of damage or loss is made;
b/ In case the duty payer submits a complete dossier as prescribed at the time of carrying out customs procedures, the customs branch shall examine the dossier, conduct physical inspection of goods, check the duty reduction conditions and reduce duty within the time limit for customs clearance in accordance with Article 23 of the Customs Law;
c/ In case the duty payer submits a dossier after carrying out customs procedures:
If the dossier is complete as prescribed, the provincial-level Customs Department shall make a dossier, check information, verify the accuracy and completeness of the dossier and send it to the General Department of Customs for submission to the Ministry of Finance for deciding on duty reduction, or shall notify the duty payer of the reason for his/her/its ineligibility for duty reduction and the payable duty amount within 15 days after receiving the dossier. If the dossier is incomplete, the customs office shall notify such to the duty payer within 3 working days after receiving the dossier.
In case physical inspection of goods which have gone through the customs inspection area is required in order to obtain sufficient grounds for duty reduction, the customs office shall issue a decision on post-customs clearance inspection at the duty payer’s head office; on that basis, it shall perform the tasks specified at this Point within 40 days after receiving a complete dossier.
Article 33. Duty refund for exports to be re-imported
1. Exports for which the export duty has been paid and which are re-imported are entitled to export duty refund and are not subject to import duty, comprising:
a/ Goods already exported which are re-imported to Vietnam;
b/ Exported goods sent by Vietnamese organizations or individuals to foreign organizations or individuals via international post or express delivery service for which the export duty has been paid but which cannot be delivered to recipients and have to be re-imported.
A duty payer shall accurately and truthfully declare re-imported goods being previously exported goods in the customs declaration; and the contract number and date and the name of the goods purchaser, in case of having a goods purchase and sale contract.
The customs office shall examine the duty payer’s declaration and clearly write the examination result as a basis for the duty refund.
2. A duty refund dossier must comprise:
a/ A written request for import duty refund, made according to Form No. 09 in Appendix VII to this Decree: 1 original;
b/ Payment documents for imports or exports, in case payment has been made: 1 copy bearing a true-copy mark of the concerned agency;
c/ Import and export contracts and invoices based on the import and export contracts, in case of goods purchase and sale; the import or export entrustment contract in case of import or export entrustment (if any): 1 copy bearing a true-copy mark of the concerned agency;
d/ For goods re-imported due to the foreign client’s refusal to receive goods or to the absence of the goods recipient as notified by the carrier, the foreign client’s notice or written agreement with the foreign client on receipt of goods back or the carrier’s notice of unavailability of goods recipient is additionally required, which must clearly state the reason, the quantity and type of returned goods, in case of goods return by client: 1 copy bearing a true-copy mark of the concerned agency.
In case of a force majeure event or in case the duty payer detects errors of goods and imports goods back, this document is not required but the duty payer shall clearly state the reason for re-import of goods in the written request for duty refund;
dd/ For imports or exports prescribed at Point b, Clause 1 of this Article, the international post or express delivery service provider’s notice of failure to deliver to the recipient is additionally required: 1 copy bearing a true-copy mark of the concerned agency.
3. The procedures for submission, receipt and processing of duty refund dossiers must comply with the tax administration law.
For goods eligible for duty refund for which duty has not been paid or is not required under Article 19 of the Law on Import Duty and Export Duty, the dossier and procedures are the same as those for duty refund.
Article 34. Duty refund for imports subject to re-export
1. Imports for which the import duty has been paid and which have to be re-exported are entitled to import duty refund and are not subject to export duty, including:
a/ Imports subject to re-export overseas or export to non-tariff areas for use therein.
Goods shall be re-exported by the initial importer or a party authorized or entrusted by the initial importer;
b/ Imports sent by organizations or individuals overseas to organizations or individuals in Vietnam via international post or express delivery service for which the duty has been paid and which cannot be delivered to the recipients and are subject to re-export;
c/ Imports for which the duty has been paid and which are sold to vehicles of foreign firms operating on international routes through Vietnam and to Vietnamese vehicles operating on international routes in accordance with regulations;
d/ Imports for which the import duty has been paid but which are stored in warehouses or storage yards of border gates, are under customs inspection and are re-exported overseas.
Duty payers shall accurately and truthfully declare imports to be re-exported in customs declarations; and contract numbers and dates and names of goods purchasers.
Customs offices shall examine duty payers’ declarations and clearly write examination results to serve the duty refund.
2. A duty refund dossier must comprise:
a/ A written request for duty refund for imports, made according to Form No. 09 in Appendix VII to this Decree: 1 original;
b/ The value-added or sale invoice as prescribed by the law on invoices, for cases prescribed at Points a and c, Clause 1 of this Article: 1 copy bearing a true-copy mark of the concerned agency;
c/ A document on payment for imports or exports, in case payment has been made: 1 copy bearing a true-copy mark of the concerned agency;
d/ Import and export contracts and invoices based on the import and export contracts, in case of goods purchase and sale; the import or export entrustment contract, in case of entrusted import or export (if any): 1 copy bearing a true-copy mark of the concerned agency;
dd/ The agreement on return of goods to the foreign party, in case of re-export to the foreign initial goods owner for imports prescribed at Point a, Clause 1 of this Article: 1 copy bearing a true-copy mark of the concerned agency;
e/ The international post or express delivery service provider’s notice of failure to deliver goods to the recipient, for imports prescribed at Point b, Clause 1 of this Article: 1 copy bearing a true-copy mark of the concerned agency;
g/ The seagoing vessel supply enterprise’s certification of the quantity and value of goods actually purchased from the dealer importer by the foreign seagoing vessel together with a statement of payment documents of the foreign seagoing vessel firm, for imports prescribed at Point c, Clause 1 of this Article: 1 original.
3. The procedures for submission, receipt and processing of duty refund dossiers must comply with the tax administration law.
The dossier and procedures for goods eligible for duty refund for which the duty has not been paid or duty payment is not required as prescribed in Article 19 of the Law on Import Duty and Export Duty are the same as the dossier and procedures for duty refund.
Article 35. Duty refund for machinery, equipment, instruments and transport vehicles of organizations and individuals permitted for temporary import for re-export
1. A duty payer shall declare and take responsibility before law for the rate of depreciation and distribution of the value of goods during the time of their use and storage in Vietnam in accordance with the law on accounting when requesting the customs office to refund duty as a basis for calculating the residual value of goods.
A duty payer shall accurately and truthfully declare imports to be re-exported in the customs declaration; and contract number and date and name of the goods purchaser.
A customs office shall examine a duty payer’s declarations and clearly write the examination result to serve the duty refund.
2. A duty refund dossier must comprise:
a/ A written request for duty refund for imports, made according to Form No. 09 in Appendix VII to this Decree: 1 original;
b/ The document on payment for imports or exports, in case payment has been made: 1 copy bearing a true-copy mark of the concerned agency;
c/ Import and export contracts and invoices based on the import and export contracts, in case of goods purchase and sale; the import or export entrustment contract, in case of entrusted import or export (if any): 1 copy bearing a true-copy mark of the concerned agency.
3. The procedures for submission, receipt and processing of duty refund dossiers must comply with the tax administration law.
The dossier and procedures for goods eligible for duty refund for which the duty has not been paid or duty payment is not required as prescribed in Article 19 of the Law on Import Duty and Export Duty are the same as the dossier and procedures for duty refund.
Article 36. Duty refund for goods imported for production and business after their products are exported
1. After the goods imported for production and business have been used for export production and their products are exported overseas or into non-tariff areas, the paid import duty for such goods shall be refunded.
2. Imports eligible for import duty refund include:
a/ Materials and supplies (including supplies for production of packaging or for packaging of export products), imported components and semi-finished products which directly constitute export products or are used in export production but are not directly transformed into goods;
b/ Imported complete products which are attached or assembled with export products or packed with export products into goods in complete sets;
c/ Imported components and parts for maintenance of export products.
3. Grounds for identifying goods eligible for duty refund:
a/ Organizations or individuals producing export products have facilities producing exports in the territory of Vietnam; and have the right to own or use machinery and equipment at production facilities suitable to materials, supplies and components imported for export production;
b/ The value or quantity of imported materials, supplies and components eligible for duty refund is the value of the quantity of actually imported materials, supplies and components used for production of actually exported products;
c/ Export products have gone through customs procedures applicable to export production;
d/ Organizations or individuals directly import goods and export products or entrust such import and export.
Duty payers shall accurately and truthfully declare on customs declarations exports produced from imports.
4. In case a type of materials, supplies or components imported for production of two or more types of products of which only one type is exported, the import duty corresponding to the part of materials, supplies or components accordingly constituting the exported products against the total value of products turned out shall be refunded.
The total value of products turned out is the total value of exported products and the sale price of domestically sold products. The value of exported products does not include the value of domestically purchased materials, supplies and components constituting the export products.
The refundable import duty shall be calculated by the distribution method according to the following formula:
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Refundable import duty amount (corresponding to actually exported products)
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=
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Value of export products
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x
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Total import duty amount for imported materials, supplies and components
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Total value of products turned out
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The value of export products is the quantity of actually exported products multiplied by (x) the taxed value of the export goods.
5. A duty refund dossier must comprise:
a/ A written request for duty refund for imports, made according to Form No. 09 in Appendix VII to this Decree: 1 original;
b/ A document on payment for imports or exports, in case payment has been made: 1 copy bearing a true-copy mark of the concerned agency;
c/ Import and export contracts and invoices based on the import and export contracts, in case of goods purchase and sale; the import or export entrustment contract, in case of entrusted import or export (if any): 1 copy bearing a true-copy mark of the concerned agency.
The duty payer shall declare the contract number and date and name of the goods purchaser on the customs declaration of exports.
d/ A statement of duty calculation for imported materials, supplies and components (made according to Form No. 10 in Appendix VII to this Decree).
The refundable import duty amount for materials, supplies and components must correspond to the quantities and types of actually imported materials, supplies and components used for production of actually exported products;
dd/ The processing contract signed with the foreign client (in case of import of materials, supplies and component to produce products which are later used for processing of export products under a processing contract with a foreign party): 1 copy bearing a true-copy mark of the concerned agency;
e/ A document proving existence of a production facility in the territory of Vietnam; and the right to own or use machinery and equipment at the production facility suitable to materials, supplies and components imported for goods production: 1 copy bearing a true-copy mark of the concerned agency.
6. The procedures for submission, receipt and processing of duty refund dossiers must comply with the tax administration law.
The dossier and procedures for goods eligible for duty refund for which the duty has not been paid or duty payment is not required as prescribed in Article 19 of the Law on Import Duty and Export Duty are the same as the dossier and procedures for duty refund.
Article 37. Duty refund in case duty payers have paid the import or export duty but have no goods imported or exported or have imported or exported goods in a quantity smaller than that for which the import or export duty has been paid; non-refund of minimal duty amounts
1. If no goods are imported or exported or the quantity of imported or exported goods is smaller than that for which an import or export duty has been paid, the paid import or export duty corresponding to the goods which actually are not imported or exported or which have been imported or exported in a quantity smaller than that for which the import or export duty has been paid shall be refunded.
2. In the cases eligible for import or export duty refund prescribed in Articles 33, 34, 35, 36 and 37 of this Decree, no refund shall be granted if the refundable duty amount is under VND 50,000 according to the customs declaration for duty refund procedures.
Customs offices shall neither receive duty refund dossiers nor refund the refundable duty amount specified in this Clause.
3. A duty refund dossier must comprise the original written request for duty refund for imports made according to Form No. 09 in Appendix VII to this Decree.
4. The procedures for submission, receipt and processing of duty refund dossiers must comply with the tax administration law.
The dossier and procedures for goods eligible for duty refund for which the duty has not been paid or duty payment is not required as prescribed in Article 19 of the Law on Import Duty and Export Duty are the same as the dossier and procedures for duty refund.
For a duty payer that submits a complete dossier for non-collection of duty when carrying out customs procedures and is eligible for non-collection of duty first and inspection later, the customs office shall not collect duty for imports and exports in accordance with regulations.
Chapter III
IMPLEMENTATION PROVISIONS
Article 38. Effect
1. This Decree takes effect on September 1, 2016, and replaces the Government’s Decree No. 87/2010/ND-CP of August 13, 2010, detailing the implementation of a number of articles of the Law on Import Duty and Export Duty.
2. To annul provisions on import duty and export duty exemption of the Prime Minister’s Decisions No. 31/2015/QD-TTg of August 4, 2015, No. 52/2015/QD-TTg of October 20, 2015, and No. 53/2013/QD-TTg of September 13, 2013, and Article 7 of the Prime Minister’s Decision No. 219/2009/QD-TTg of October 1, 2009.
Article 39. Transitional provisions
1. Projects currently entitled to import and export duty incentives which are higher than those prescribed in the Law on Import Duty and Export Duty are entitled to such incentives for their remaining duration eligible for incentives.
2. Projects currently entitled to import and export duty incentives which are lower than, or not yet enjoying, the import and export duty incentives prescribed in the 2016 Law on Import Duty and Export Duty, are entitled to the incentives prescribed in the Law on Import Duty and Export Duty for their remaining duration eligible for incentives.
Article 40. Implementation responsibilities
1. The Ministry of Planning and Investment shall promulgate a list of domestically available goods as the basis for identifying domestically unavailable goods referred to in Articles 14, 15, 16, 17, 18, 19, 20, 21, 23, 24, 25 and 28 of this Decree.
2. The Ministry of Science and Technology shall promulgate a list of, or criteria for identifying:
a/ Special-use vehicles required for oil and gas activities;
b/ Special-use vehicles in technology lines directly used for production activities of investment projects;
c/ Vehicles in technology lines directly used for shipbuilding activities;
d/ Specialized science documents, books, newspapers and magazines directly used for scientific research, technological development, incubation of science and technology enterprises and technological renovation;
dd/ Domestically available special-use machinery, equipment, components and supplies directly used for scientific research, technological development, development of technology incubation, and incubation of science and technology enterprises.
3. The Ministry of Education and Training shall promulgate a list of, or criteria for identifying, special-use goods directly serving education.
4. The Ministry of Agriculture and Rural Development shall promulgate a list of, or criteria for identifying, plant varieties, animal breeds, fertilizers and pesticides which need to be imported.
5. The Ministry of Information and Communications shall promulgate a list of, or criteria for identifying, materials, supplies and components which need to be imported to directly serve the making of information technology products, digital content and software.
6. The Ministry of Natural Resources and Environment shall promulgate a list of, or criteria for identifying, special-use machinery, equipment, vehicles, devices and supplies which need to be imported for environmental protection, and export products made from waste recycling and treatment activities.
7. The Ministry of Public Security and the Ministry of National Defense shall notify the General Department of Customs of lists of special-use goods annually imported to directly serve security and defense approved by the Prime Minister or by the Minister of Public Security or the Minister of National Defense as authorized by the Prime Minister and update any change to these lists.
8. The State Bank of Vietnam shall promulgate a list of machinery, equipment, materials, supplies, components, parts and spare parts imported to serve its money printing and minting activities, and shall appoint their importers.
9. The Ministry of Foreign Affairs shall notify the Ministry of Finance of tax incentives under treaties or agreements between the Government of Vietnam and foreign non-governmental organizations.
10. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees and related organizations and persons shall implement this Decree./.
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Prime Minister |
(Signed) |
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Nguyen Xuan Phuc |