DECREE NO: 122/2016/ND-CP OF SEPTEMER 01, 2016, SCHEDULES OF IMPORT TARIFFS AND PREFERENTIAL IMPORT TARRIFS, LIST OF GOODS AND ITS FLAT TAX, COMPOUND TARIFF, AND OUT- OF – QUOTA IMPORT TARRIF

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DECREE

GUIDELINES FOR THE LAW ON EXPORT AND IMPORT DUTIES

Pursuant to the Law on Government organization dated June 19, 2015;
Pursuant to the Law on Export and import duties dated April 06, 2016;
Pursuant to the Law on Customs dated June 23, 2014;
Pursuant to the Law on Investment dated November 26, 2014;
Pursuant to the Law on Tax administration dated November 29, 2016;
Pursuant to the Law on amendments to the Law on Tax administration dated November 20, 2012;
Pursuant to the Law on amendments to the Law on Value-added tax, the Law on special excise duty and the Law on Tax administration dated April 06, 2016;
At the request of the Minister of Finance;
The Government promulgates a Decree to provide guidelines for the Law on Export and import duties.
Chapter I
GENERAL PROVISIONS
Article 1. Scope and regulated entities

1. This Decree provides for dutiable articles; application of export and import duties; deadlines for paying duties on exports and imports; exemption, reduction, refund of export and import duties.
2. This Decree applies to:
3. a) Taxpayers defined by the Law on Export and import duties;
4. b) Customs authorities and customs officials;
5. c) Organizations and individuals whose rights and obligations are relevant to exports and imports;
6. d) Organizations involved in implementation of the Law on Export and import duties.

Article 2. Dutiable articles

1. Goods exported and imported through Vietnam’s border and checkpoints.
2. Goods exported from the domestic market into export processing enterprises, export processing zones, tax-suspension warehouses, bonded warehouses and other free trade zones defined in Clause 1 Article 4 of the Law on Export and import duties; goods imported from export processing enterprises, export processing zones, tax-suspension warehouses, bonded warehouses and other free trade zones defined in Clause 1 Article 4 of the Law on Export and import duties into the domestic market.
3. Provisions of the Government’s Decree No. 08/2015/ND-CP dated January 21, 2015 shall apply to the exports delivered to domestic processors specified in Clause 3 Article 2 of the Law on Export and import duties.
4. Goods of an export processing enterprise which exercises its rights to export, import or distribution specified in Clause 3 Article 2 of the Law on Export and import duties are goods exported or imported by the export processing enterprise to exercise such rights in accordance with trading and investment laws.

Article 3. Application of export and import duties

1. Export and import duties shall be applied in accordance with Article 5, Article 6 and Article 7 of the Law on Export and import duties.
2. Where concessional rate of duty on an article specified in a concessional tariff schedule is lower than the special concessional rate specified in a special concessional tariff schedule, the former shall apply.

Where tax is paid according to a special concessional rate which is higher than a concessional rate on the same article, overpaid tax shall be dealt with in accordance with tax administration laws.
Article 4. Deadline for paying tax, duty payment guarantee and tax deposit

1. Deadlines for paying tax specified in Article 9 of the Law on Export and import duties are applied to dutiable exports and imports prescribed by tax laws.
2. Export and import duty payment guarantee is either a separate or joint guarantee.
3. a) Separate guarantee means guarantee of full payment of duty on an export/import declaration offered by a credit institution which operates under the Law on credit institutions;
4. b) Joint guarantee means guarantee of full payment of duty on more than one export/import declaration opened at one or more Sub-department of Customs offered by a credit institution which operates under the Law on credit institutions; Guaranteed amount of duty under a joint guarantee shall vary according to the amount of paid duty;
5. c) Where a credit institution (the guarantor) offers a separate guarantee or joint guarantee but the taxpayer has failed to pay duty and late payment interest (if any), the credit institution shall fully pay the duty and late payment interest owed by the taxpayer according to information on the customs information processing system or notification given by the customs authority;
6. d) Contents of a guarantee letter, submission, verification, monitoring and processing of guarantee letters shall comply with tax administration laws.
7. If case of depositing import duty on temporarily imported goods before the deadline for re-export, which might be extended, the taxpayer shall transfer an amount of money equal to the import duty on such temporarily imported goods to the customs authority’s deposit account at a State Treasury.

The deposit shall be returned in accordance with regulations of tax administration laws on return of overpaid taxes, late payment interest and fines.

4. Where temporarily imported goods are not re-exported by the deadline, the customs authority shall transfer the deposit to state budget. If there is a guarantee, the credit institution (the guarantor) shall transfer an amount equal to the import duty to state budget according to information on the customs information processing system or notification given by the customs authority.

Chapter II
EXEMPTION, REDUCTION, REFUND OF DUTIES
Article 5. Grant of duty exemption to goods of foreign entities enjoying diplomatic immunity and privileges

1. Goods of goods of foreign entities enjoying diplomatic immunity and privileges are prescribed in Clause 1 Article 16 of the Law on Export and import duties. To be specific:
2. a) Diplomatic missions and consular offices may import and temporarily import goods free of duty within the categories and allowance specified in Appendix I enclosed herewith. Diplomatic officials and consuls may import and temporarily import goods free of duty within the categories and allowance specified in Appendix II enclosed herewith. Other employees of diplomatic missions and consular offices may import or temporarily import goods free of duty within the categories and allowance specified in Appendix III enclosed herewith.
3. b) Representative offices of UN System organizations and officials thereof may import or temporarily import goods free of duty within the categories and allowance specified in Appendix I and Appendix II enclosed herewith.
4. c) Representative offices of non-UN System organizations and members thereof are exempt from import duties under international treaties to which Vietnam is a signatory.
5. d) Representative offices of non-governmental organizations and members thereof are exempt from import duties under agreements between them and Vietnam’s Government.
6. The entities specified in Point a and Point b Clause 1 of this Article may import the alcohol, beer and tobacco articles specified in Appendix I enclosed herewith free of duty beyond the duty-free allowance to serve diplomatic activities. Duty-free allowance for alcohol, beer and tobacco shall be confirmed by the Ministry of Foreign Affairs.
7. Apart from the articles specified in Appendix I through III enclosed herewith, the entities mentioned in Point a and Point b of this Clause may import other goods free of duty to serve their works under principle of reciprocity or international practice. Categories and allowance for duty-free goods shall be confirmed by the Ministry of Foreign Affairs.
8. Where an international treaty or agreement between Vietnam’s government and a foreign non-governmental organization does not specify the categories and allowance for duty-free goods, the Ministry of Finance and the Ministry of Foreign Affairs shall submit a proposal to the Prime Minister for approval.

The categories and allowance for duty-free goods mentioned in this Clause must not exceed those specified in Appendix I through III enclosed herewith.

5. A car or motorcycle may be temporarily imported to replace another temporarily imported one within the allowance established by any of the authorities specified in Point a and Point b of this Article is only permitted after procedures for re-export, destruction of transfer of such vehicle have been completed.

A person mentioned in Point a or Point b Clause 1 of this Article may only temporarily import a car or motorcycle free of duty to replace another temporarily imported one within the allowance after the temporarily imported vehicle has been re-exported or destroyed.

6. Application for duty exemption:
7. a) A customs dossier prescribed by customs laws, except for duty-free goods purchased at duty-free shops;
8. b) The duty-free allowance book specified in Clause 7 of this Article: 01 certified true copy, unless it has been updated on National Single-window Information Portal;
9. c) Documents proving completion of re-export, destruction or transfer of the goods mentioned in Clause 4 of this Article: 01 certified true copy;
10. d) A confirmation of the Ministry of Foreign Affairs in case of import of goods mentioned in Clause 2 or Clause 3 of this Article: 01 certified true copy;
11. dd) A confirmation given by the Prime Minister in case of import of goods mentioned in Clause 4 of this Article: 01 certified true copy.
12. Procedures for granting duty exemption are specified in Article 31 of this Decree.

The customs authority where customs procedures are followed shall monitor duty-free allowances electronically. If duty-free allowances are not monitored electronically, the taxpayer shall submit a photocopy and present the original duty-free allowance book for comparison.

8. Procedures for issuing a duty-free allowance book:
9. a) Application for issuance of duty-free allowance book to an organization:

01 original copy of Form No. 01 in Appendix VII enclosed herewith.
01 certified true copy of the written notification of establishment of the representative office in Vietnam in case of applying for the first duty-free allowance book.

1. b) Application for issuance of duty-free allowance book to a natural person:

01 certified true copy of Form No. 02 in Appendix VII enclosed herewith.
01 certified true copy of the ID card issued by the Ministry of Foreign Affairs (for persons mentioned in Point a and Point b Clause 1 of this Article).
01 certified true copy of the work permit or an equivalent document issued by a competent authority if the applicant is a member of an international organization or non-governmental organization (for persons mentioned in Point d Clause 1 of this Article).

1. c) Power to issue duty-free allowance books:

Directorate of State Protocol – The Ministry of Foreign Affairs or an agency authorized by the Ministry of Foreign Affairs shall issue duty-free allowance books to the entities mentioned in Point a and Point b Clause 1 of this Article 1 within 05 working days from the day on which adequate documents are received.
Customs Departments of provinces where the organizations mentioned in Clause 1 of this Article are located shall issue duty-free allowance books to the entities mentioned in Point c and Point d Clause 1 of this Article within 05 working days from the day on which adequate documents are received.
The Ministry of Foreign Affairs shall monitor and issue duty-free allowance book to the entities granted diplomatic immunity and privileges mentioned in Point c Clause 1 of this Article if they have been issued with duty-free allowance books by the Ministry of Foreign Affairs before the effective date of this Decree.
The authorities mentioned in this Point shall update General Department of Customs with information in duty-free allowance books via National Single-window Information Portal after each duty-free allowance book is issued.
Article 6. Duty-free allowances for luggage

1. Each time a person immigrates under a passport or a passport substitute (except for laissez-passers) issued by a Vietnamese authority or foreign authority, he/she shall be granted duty-free allowance for his/her luggage, whether it is accompanied luggage or sent before or after his/her arrival:
2. a) 1.5 liters of alcohol of ≥20% ABV or 2.0 liters of alcohol of <20% ABV or 3.0 liters of other alcoholic drinks or beer.

If the traveler carries a bottle or can of alcohol whose volume exceeds the limit by not more than 01 liter, the whole bottle will be duty-free. If the volume exceeds the limit by more than 01 liter, the exceed amount shall be dutiable;

1. b) 200 cigarettes or 250 gram of shredded tobacco or 20 cigars;
2. c) Reasonable quantity and categories of personal belongings;
3. d) Other items other than those mentioned in Point a through c of this c (not on the List of goods banned from import, suspended from import or subject to conditional import) whose total customs value does not exceed VND 10,000,000;

Where the aforementioned allowance is exceeded, the traveler may decide which items are within the allowance and which are not.

2. Aircraft operators, attendants on international flights; train operators and attendants on international trains; officers and crewmembers on sea-going vessels; Vietnamese workers and drivers working in countries that shares land borders with Vietnam shall be granted the duty-free allowances mentioned in Point a, Point b and Point d of this Clause every 90 days instead of every time they enter Vietnam. The duty-free allowances mentioned in Point a and Point b Clause 1 of this Article do not apply to people aged under 18.
3. Each time a person emigrates under a passport or a passport substitute issued by a Vietnamese authority or foreign authority, his/her luggage shall be exempt from export duties without limit, whether it is accompanied luggage or sent before or after his/her departure, provided it is not on the List of goods banned from export, suspended from export or subject to conditional export.
4. The application for duty exemption is the customs dossier defined by customs law.
5. Procedures for granting duty exemption are specified in Article 31 of this Decree.

Article 7. Exemption of duties on belongings

1. The following organizations and individuals shall have their belongings defined in Clause 20 Article 4 of the Law on Customs Goods exempt from export and import duties as prescribed in Clause 2 Article 16 of the Law on Export and import duties:
2. a) Foreigners, Vietnamese citizens who reside overseas and work in Vietnam for at least 12 months;
3. b) Vietnamese organizations and citizens that operate or work oversea for at least 12 months and then return to Vietnam;
4. c) Vietnamese citizens who reside overseas and have applied for permanent residence registration in Vietnam for the first import of belongings.
5. Only 01 item/piece/set of each type of personal belongings of an organization or individual (used or new, excluding cars and motorcycles) shall be exempt from import duties.

Exemption of duties on belongings of an organization whose operating cost is covered by state budget exceeding the duty-free allowance shall be decided by the Ministry of Finance on a case-by-case basis.

3. Application for duty exemption:
4. a) A customs dossier defined by customs law;
5. b) 01 certified true copy of the work permit or an equivalent document issued by a competent authority if the applicant is foreigner or a Vietnamese citizen who resides oversea and works in Vietnam for at least 12 months;
6. c) 01 certified true copy of a document proving termination of the overseas operation or work if the applicant is a Vietnamese organization or citizen that operates or works overseas for at least 12 months and return to Vietnam afterwards;
7. d) 01 certified true copy of the passport bearing the seal of the immigration authority at the checkpoint, whether in the passport or a loose leaf visa, or another equivalent unexpired document bearing the seal of the immigration authority at the checkpoint if the applicant is a Vietnamese citizen who resides overseas and has applied for permanent residence registration in Vietnam;
8. dd) 01 notarized or certified true copy of the family register issued by a police authority which specifies the overseas address if the applicant is a Vietnamese citizen who resides overseas and has applied for permanent residence registration in Vietnam;
9. e) 01 original copy of the decision on exemption of duties issued by the Minister of Finance if the amount of personal belongings exceeds the duty-free allowance.
10. Procedures for granting duty exemption are specified in Article 31 of this Decree.

Article 8. Exemption of duties on gifts

1. Gifts exempt from duties specified in Clause 2 Article 16 of the Law on Export and import duties are those that are not enumerated on the List of goods banned from import, banned from export, suspended from export, suspended from import and not enumerated on the List of goods subject to special excise tax (excluding those serving national defense and security purposes) as prescribed by law.
2. Duty-free allowance:
3. a) Gifts given by a foreign organization or individual to a Vietnamese organization or individual; gifts given by a Vietnamese organization or individual to a foreign organization or individual whose customs value does not exceed VND 2,000,000 or whose custom value exceeds VND 2,000,000 but duty on which is under VND 200,000 shall be exempt from duties up to 04 times per year.
4. b) Gifts given by a foreign organization or individual to a Vietnamese organization whose operating cost is covered by state budget as prescribed by state budget laws; gifts given for humanitarian or charitable purposes whose customs value does not exceed VND 30,000,000 shall be exempt from duties up to 04 times per year.

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

1. c) Gifts given by a foreign organization or individual to a Vietnamese individual that are drugs or medical equipment for people having fatal diseases specified in Appendix IV hereof whose customs value does not exceed VND 10,000,000 shall be exempt from duties up to 4 times per year.
2. Application for duty exemption:
3. a) A customs dossier defined by customs law;
4. b) A donation agreement if the gift recipient is an organization: 01 certified true copy bearing the seal of such organization.

The recipient who is a natural person shall declare the gifts and information about the overseas giver on the customs declaration, and take responsibility for the truthfulness and adequacy of such information;

1. c) 01 original copy of the decision on exemption of duties issued by the Minister of Finance if the gifts exceed the duty-free allowance;
2. d) 01 original copy of the written permission issued by the superior authority for receipt and use of the duty-free goods or a document proving that the organization’s operating cost is covered by state budget (if the recipient is an organization whose operating cost is covered by state budget);
3. dd) 01 original copy of the document issued by the President of the People’s Committee of the province if the gift is given for humanitarian or charitable purposes.
4. Procedures for granting duty exemption are specified in Article 31 of this Decree.

Article 9. Exemption of duties on goods traded among border residents

1. Goods traded among border residents that are on the List of goods that are meant to serve their business or consumption published by the Ministry of Industry and Trade shall be exempt from duties within the allowances specified in Appendix V hereof according to Clause 3 Article 16 of the Law on Export and import duties.

Goods purchased or transport within the duty-free allowance but are not meant to serve border residents’ business or consumption shall be dutiable.

2. Exports and imports of traders who are nationals of bordering countries and permitted to do business at border markets are dutiable.
3. Application for duty exemption:
4. a) A customs dossier defined by customs law;
5. b) Original copy of the laissez-passer or ID card.
6. Procedures for granting duty exemption are specified in Article 31 of this Decree.

Article 10. Exemption of duties on goods imported for further processing and processed exports

1. Goods imported for further processing and processed exports under processing contracts exempt from export and import duties specified in Clause 6 Article 16 of the Law on Export and import duties comprise:
2. a) Raw materials, semi-finished products, supplies (including those for manufacture of packages of exports), imported components that are incorporated into the exports or used during the processing of exports not incorporated into the exports, including those imported by the processor to execute the processing contract;
3. b) Goods imported as samples that are not traded or used;
4. c) Machinery and equipment imported for processing under a processing contract;
5. d) Imported finished products that are attached on processed products or packed with processed products as a whole for export according to the processing contract or appendices thereof and are considered raw materials or supplies imported for processing;
6. dd) Components and parts imported for repair of processed exports under warranty according to the processing contract or appendices thereof and are considered raw materials or supplies imported for processing;
7. e) Goods imported for further processing but are permitted to be destroyed in Vietnam and have been destroyed in reality.

Goods imported for further processing and used as gifts shall be exempt from duties in accordance with Article 8 of this Decree.
When the processing contract expires, it is not required to re-export goods imported for processing. Imported goods that are not re-exported shall be dutiable;

1. g) Processed exports.

Where processed exports are made of dutiable domestic raw materials or supplies, export duties shall be charged on the value of raw materials or supplies incorporated into the products at the duty rates applied to such raw materials or supplies when the products are exported.

2. Basis for determination of eligibility for duty exemption:
3. a) Availability of a processing contract specified in Decree No. 187/2013/ND-CP.

The taxpayer shall write the number and date of the processing contract and the hirer on the customs declaration;

1. b) The taxpayer or processor hired by the taxpayer has a facility in Vietnam where goods are processed or exports are manufactured and the customs authority is notified of such facility and the processing contract in accordance with customs laws.
2. c) Imported raw materials, supplies and components are used for processing or manufacture of the exported products.

The value or quantity of imported raw materials, supplies and components exempt from duty is the actual value or quantity of raw materials, supplies and components used for manufacture of the processed products that are exported in reality and is determined when making a statement of raw materials, supplies and components imported for processing exports in accordance with customs laws.
The taxpayer shall truthfully declare the value or quantity of raw materials, supplies and components that are used for manufacture of the processed products that are imported in reality and granted duty exemption while following customs procedures.

3. Import duties shall be charged upon machinery, equipment, raw materials, supplies, components and processed products on which processing charges are paid by the foreign party.
4. Refuses, scrap, redundant raw materials and supplies imported for processing under a processing contract shall be exempt from import duties when they are sold domestically provided they do not exceed 3% of the quantity of each type. VAT, special excise tax and environmental protection tax (if any) shall be paid to the customs authority.
5. Procedures for granting duty exemption are specified in Article 31 of this Decree.

Article 11. Exemption of duties on goods exported for processing and processed imports

1. Goods exported for processing and processed imports under processing contracts exempt from export and import duties specified in Clause 6 Article 16 of the Law on Export and import duties comprise:
2. a) Raw materials, supplies and components for export.

Export duties shall be charged on the value or quantity of raw materials, supplies and components corresponding to the quantity of processed products that are not re-imported at the duty rates applied to such raw materials, supplies and components.
Where goods exported for processing are natural resources, minerals or products in which the value of natural resources or minerals plus (+) energy cost makes up at least 51% of the product price and the goods are subject to export duties, duty exemption shall not be granted.
Products in which the value of natural resources or minerals plus (+) energy cost makes up less than 51% of the product price shall be determined in accordance with Decree No. 100/2016/ND-CP dated July 01, 2016 on guidelines for the Law on amendments to the Law on Value-added tax, the Law on special excise duty, the Law on Tax administration and instructional documents thereof;

1. b) Goods exported as samples that are not traded or used;
2. c) Machinery and equipment exported for processing under a processing contract;
3. d) When products that are processed overseas are imported into Vietnam, import duties on the value of raw materials, supplies and components incorporated into the processed products shall be exempt; the remaining value of the products shall be dutiable at the import duty rates applied to processed imports.
4. Basis for determination of eligibility for duty exemption:
5. a) The taxpayer has a processing contract specified in Decree No. 187/2013/ND-CP.
6. b) Exported raw materials, supplies and components are used for processing or manufacture of the imported products.

The value or quantity of raw materials, supplies and components exempt from duty is the actual value or quantity of raw materials, supplies and components used for manufacture of the processed products that are imported in reality and is determined when making a statement of raw materials, supplies and components imported for processing exports in accordance with customs laws.
The taxpayer shall truthfully declare the value or quantity of raw materials, supplies and components that are used for manufacture of the processed products that are imported in reality and is granted duty exemption while following customs procedures.

3. Procedures for granting duty exemption are specified in Article 31 of this Decree.

The taxpayer shall write on the customs declaration the number and date of the processing contract, number and date of the notification to the customs authority of exported products in which the value of natural resources or minerals plus (+) energy cost makes up less than 51% of the product price.
Article 12. Exemption of duties on goods imported for manufacture of domestic exports

1. Raw materials, supplies, components, semi-finished products and finished products import for manufacture of domestic exports exempt from import duties specified in Clause 7 Article 16 of the Law on Export and import duties comprise:
2. a) Raw materials, supplies (including those for manufacture of packages of exports), components, semi-finished products imported incorporated into the exports or used during the manufacture of exports without being incorporated into the exports;
3. b) Imported finished products that are attached on exports or packed with exports as a whole;
4. c) Components and parts imported for repair of exports under warranty;
5. d) Goods imported as samples that are not traded or used.
6. Basis for determination of eligibility for duty exemption:
7. a) The manufacturer of exports has a factory where exports are manufactured in Vietnam; owns or has the right to use machinery and equipment at the factory which is suitable for the raw materials, supplies and components imported for manufacture of exports and has notified the customs authority of the factory;
8. b) The imported raw materials, supplies and components are used for manufacture of the exported products.

The value or quantity of imported raw materials, supplies and components exempt from duty is the actual value or quantity of raw materials, supplies and components used for manufacture of the products that are exported in reality and is determined when making a statement of raw materials, supplies and components imported for manufacture of exports in accordance with customs laws.
The taxpayer shall truthfully declare the value or quantity of raw materials, supplies and components that are used for manufacture of products that are imported in reality and granted duty exemption while following customs procedures.

3. Procedures for granting duty exemption are specified in Article 31 of this Decree.

Article 13. Exemption of duties on temporarily imported goods and temporarily exported goods

1. Goods that are temporarily imported and re-exported or temporarily exported and re-imported within a certain period of time shall be exempt from duties as prescribed in Clause 9 Article 16 of the Law on Export and import duties.
2. Goods that are temporarily imported or temporarily exported for repair or replacement as specified in Point c Clause 9 Article 16 of the Law on Export and import duties must not change the shape, functions and basic features of the temporarily imported goods and must not be used to create other goods.

In case of goods replacement under warranty, the replacing item must have the same shape, functions and basic features of the replaced item.

3. Reusable equipment that are temporarily imported and re-exported or temporarily exported and re-imported to carry exports and imports comprise:
4. a) Empty containers, with or without hooks;
5. b) Flex tanks inside containers for storage of liquids;
6. c) Other reusable equipment for storage of exports and imports.
7. Procedures for granting duty exemption are specified in Article 31 of this Decree.

In case of temporary import of goods, the taxpayer shall submit a guarantee letter issued by a credit institution or a document proving payment of deposit into the deposit account of the customs authority at a State Treasury if the guarantee letter has not been updated on the customs electronic data processing system.
Provisions of Article 4 of this Decree shall apply to provision of guarantee or depositing of import duties on temporarily imported goods.
Article 14. Exemption of duties on imported fixed assets of entities eligible for investment incentives

1. Imported fixed assets of an entity eligible for investment incentives are exempt from import duties as prescribed in Clause 11 Article 16 of the Law on Export and import duties.
2. Regarding an investment project a part of which is eligible for investment incentives, import fixed assets that are exclusively used for such part are exempt from import duties.
3. Regarding an investment project located in an administrative division provided with investment incentives but the project is not eligible, goods that are imported as fixed assets serving manufacturing activities of the project shall be exempt from import duties.
4. The Ministry of Planning and Investment shall establish criteria for identification of supplies that cannot be domestically manufactured.

The Ministry of Science and Technology shall establish criteria for identification of specialized vehicles used in technological line directly serving manufacturing activities of investment projects.

5. Procedures for granting duty exemption are specified in Article 30 and Article 31 of this Decree.

Article 15. 5-year exemption from import duties on raw materials, supplies and components

1. Raw materials, supplies and components that cannot be domestically manufactured and are imported to serve manufacturing activities of investment projects in the fields eligible for special investment incentives or located in extremely disadvantaged areas specified by investment laws, hi-tech enterprises, science and technology enterprises and science and technology organizations are exempt from import duties for 05 years from the manufacture commencement date as prescribed in Clause 13 Article 16 of the Law on Export and import duties.

The manufacture commencement date is the day on which the manufacture process is officially commenced, excluding the experimental manufacture period. The taxpayer shall declare the manufacture commencement date and notify the customs authority where application for duty exemption is received before following customs procedures.
When the 5-year period expires, the taxpayer shall fully pay duties on the amount of imported raw materials, supplies and components that were exempt from import duties but are not used.

2. Products in which the value of natural resources or minerals plus (+) energy cost makes up less than 51% of the product price shall be determined in accordance with Decree No. 100/2016/ND-CP dated July 01, 2016 on guidelines for the Law on amendments to the Law on Value-added tax, the Law on special excise duty, the Law on Tax administration and instructional documents thereof.
3. The basis for identification of fields and business lines eligible for special investment incentives and extremely disadvantaged areas is specified in the Law on Investment and the Government’s Decree No. 118/2015/ND-CP.

The Ministry of Planning and Investment shall establish criteria for identification of raw materials, supplies and components that cannot be domestically manufactured.

4. Procedures for granting duty exemption are specified in Article 30 and Article 31 of this Decree.

Article 16. Exemption of duties on imports serving petroleum activities

1. Imports serving petroleum activities are exempt from import duties as prescribed in Clause 15 Article 16 of the Law on Export and import duties.
2. The Ministry of Science and Technology shall establish criteria for identification of specialized vehicles exclusively used for petroleum activities.
3. The Ministry of Planning and Investment shall establish criteria for identification of goods that cannot be domestically manufactured.
4. Procedures for granting duty exemption are specified in Article 30 and Article 31 of this Decree.

Article 17. Exemption of duties on imports serving ship building and sea-going vessels for export

1. Shipbuilding projects and facilities on the list of preferential fields and business lines as prescribed in investment laws are exempt from export and import duties according to Clause 16 Article 16 of the Law on Export and import duties.
2. The Ministry of Science and Technology shall establish criteria for identification of vehicles in the technological line directly serving shipbuilding activities.
3. The Ministry of Planning and Investment shall establish criteria for identification of goods that cannot be domestically manufactured.
4. Procedures for granting duty exemption are specified in Article 30 and Article 31 of this Decree.

Article 18. Exemption of duties on plant varieties, animal breeds, fertilizers and plant protection substances

1. Plant varieties, animal breeds, fertilizers and plant protection substances that cannot be domestically manufactured and have to be imported to serve agriculture, forestry and aquaculture are exempt from import duties as prescribed in Clause 12 Article 16 of the Law on Export and import duties.
2. The Ministry of Planning and Investment shall establish criteria for identification of goods that cannot be domestically manufactured.
3. The Ministry of Agriculture and Rural Development shall establish criteria for identification of goods on the List of plant varieties, animal breeds, fertilizers and plant protection substances that have to be imported.
4. Procedures for granting duty exemption are specified in Article 30 and Article 31 of this Decree.

Article 19. Exemption of duties on imports serving scientific research and technological development

1. Imports serving scientific research, technological development, development of technology incubation, science and technology enterprise incubation and technological innovation are exempt from import duties as prescribed in Clause 21 Article 16 of the Law on Export and import duties.
2. The Ministry of Planning and Investment shall establish criteria for identification of goods that cannot be domestically manufactured.

The Ministry of Science and Technology shall establish criteria for identification of specialized machinery, equipment, parts and supplies serving scientific research, technological development, development of technology incubation, science and technology enterprise incubation and technological innovation.

3. The Ministry of Science and Technology shall establish criteria for identification of scientific documents serving scientific research, technological development, development of technology incubation, science and technology enterprise incubation and technological innovation.
4. Application for duty exemption:

Apart from the documents specified in Article 31 of this Decree, the taxpayer might be required to submit one of the following documents:

1. a) A certified true copy of the decision on execution of a scientific research or technological development program, project or mission and a list of necessary imports issued by a competent authority in accordance with the Law on science and technology;
2. b) 01 certified true copy of the document certifying the list of goods necessary for technological incubation or science and technology enterprise incubation issued by the People’s Committee of the province or supervisory Ministry where the technological incubation or science and technology enterprise incubation project is located;
3. c) 01 certified true copy of the document certifying the list of goods necessary for technological innovation issued by the Ministry of Science and Technology or an agency authorized by the Ministry of Science and Technology.
4. Procedures for granting duty exemption are specified in Article 31 of this Decree.

Article 20. Exemption of duties on imports serving national defense and security purposes

1. Imports exclusively serving national defense and security purposes and vehicles among which cannot be domestically manufactured are exempt from import duties as prescribed in Clause 22 Article 16 of the Law on Export and import duties.
2. Basis for determination of eligibility for duty exemption:
3. a) The goods is part of the annual plan for importing goods exclusively serving national defense and security purposes approved by the Prime Minister or by the Minister of Public Security or by the Minister of National Defense on the Prime Minister’s authority.
4. b) The specialized vehicles cannot be domestically manufactured as defined by Ministry of Planning and Investment.
5. An application for duty exemption consists of:
6. a) Form 03a in Appendix VII enclosed herewith (if duty exemption is granted before customs procedures are completed) or Form 03b in Appendix VII enclosed herewith (if duty exemption is granted after customs procedures is completed) prepared by the Ministry of National Defense or the Ministry of Public Security or a unit authorized by the Ministry of National Defense or the Ministry of Public Security.
7. b) 01 certified true copy of the sale contract;
8. c) 01 certified true copy of the import mandate contract or goods supply contract according to the certification of successful bidder or direct contracting decision which specifies that the prices are exclusive of import duties (in case of import mandate or bidding).
9. Procedures for granting duty exemption:
10. a) If duty exemption is granted before customs procedures are completed, the Ministry of National Defense or the Ministry of Public Security or a unit authorized by the Ministry of National Defense or the Ministry of Public Security shall submit the application for duty exemption to the General Department of Customs at least 05 working days before registration of the customs declaration.

Within 03 working days from the day on which the application is received, the General Department of Customs shall issue a notice whether duty exemption is granted or request supplementation of the application.
The Sub-department of Customs where customs procedures are followed shall grant customs clearance according to the notice sent by the General Department of Customs.

1. b) If duty exemption is granted after customs procedures are completed:

The Ministry of Public Security or the Ministry of National Defense or a unit authorized by the Ministry of Public Security or the Ministry of National Defense shall submit the application for duty exemption to the General Department of Customs. The application shall be submitted within 30 working days from the date of customs clearance or release of goods.
Within 03 working days from the day on which the application is received, the General Department of Customs shall issue a notice whether duty exemption is granted or request supplementation of the application.
The Sub-department of Customs where customs procedures are followed shall record the duty exempted according to the notice sent by the General Department of Customs.
Article 21. Exemption of duties on imports serving education

1. Imports exclusively serving education that cannot be domestically manufactured are exempt from import duties as prescribed in Clause 20 Article 16 of the Law on Export and import duties.
2. The Ministry of Planning and Investment shall establish criteria for identification of goods that cannot be domestically manufactured.
3. The Board of Directors shall establish criteria for identification of imports exclusively serving education.
4. Procedures for granting duty exemption are specified in Article 31 of this Decree.

Article 22. Exemption of duties on goods manufactured, processed, recycled or assembled in a free trade zone

1. Goods manufactured, processed, recycled or assembled in a free trade zone without using imported raw materials or components are exempt from import duties when they are imported into the domestic market as prescribed in Clause 8 Article 16 of the Law on Export and import duties.
2. Where goods manufactured, processed, recycled or assembled in a free trade zone using imported raw materials or components, they shall be dutiable when imported into the domestic market according to the duty rates and their dutiable values.
3. Procedures for granting duty exemption are specified in Article 31 of this Decree.

Article 23. Exemption of duties on imported raw materials, supplies and components for manufacture or assembly of medical equipment

1. Raw materials, supplies and components that cannot be domestically manufactured and are imported for manufacture or assembly of medical equipment of an investment project given priority are exempt from import duties for 05 years from the manufacture commencement date as prescribed in Clause 14 Article 16 of the Law on Export and import duties.

The List of medical equipment given priority is specified in Appendix VI enclosed herewith.

2. The manufacture commencement date which is the beginning date of the 5-year period is the day on which the manufacture process is officially commenced (excluding experimental manufacture period).

The taxpayer shall declare the manufacture commencement date and notify the customs authority where application for duty exemption is received before following customs procedures.

3. The Ministry of Planning and Investment shall establish criteria for identification of goods that cannot be domestically manufactured.
4. Procedures for granting duty exemption are specified in Article 30 and Article 31 of this Decree.

Article 24. Exemption of duties on raw materials, supplies and components imported for manufacture or information technology products, digital contents or software

1. Raw materials, supplies and components imported for manufacture or information technology products, digital contents or software are exempt from import duties as prescribed in Clause 18 Article 16 of the Law on Export and import duties.
2. The Ministry of Planning and Investment shall establish criteria for identification of goods that cannot be domestically manufactured.
3. Procedures for granting duty exemption are specified in Article 30 and Article 31 of this Decree.

Article 25. Exemption of duties on goods imported for environmental protection purposes

1. Goods imported for environmental protection purposes are exempt from import duties as prescribed in Clause 19 Article 16 of the Law on Export and import duties.
2. The Ministry of Planning and Investment shall establish criteria for identification of goods that cannot be domestically manufactured.
3. The Ministry of Natural Resources and Environment shall establish criteria for identification of specialized machinery, equipment, vehicles, tools and supplies imported for collection, transport, treatment of wastewater, garbage, exhaust gases, environment survey and analysis, production of renewable energy; pollution control, environmental emergency responses; exports derived from the process of waste recycling and treatment.
4. Procedures for granting duty exemption are specified in Article 31 of this Decree.

Article 26. Exemption of duties on imports serving money printing and minting

1. Machinery, equipment, raw materials, supplies, components and parts imported for money printing and minting are exempt from import duties as prescribed in Clause 17 Article 16 of the Law on Export and import duties.

The duty-free goods mentioned in Clause 1 of this Article must be imported by organizations designated by the State bank.

2. The State bank shall establish criteria for identification of machinery, equipment, raw materials, supplies, components and parts imported for money printing and minting.
3. Application for duty exemption:
4. a) A customs dossier defined by customs law;
5. b) 01 certified true copy of the State bank’s written permission for import of machinery, equipment, raw materials, supplies, components or parts for money printing and minting.
6. Procedures for granting duty exemption are specified in Article 31 of this Decree.

Article 27. Exemption of duties on goods imported for non-trading purposes
The following goods are exempt from import duties:

1. Samples, pictures of samples, videos of samples, models as substitutes for samples whose customs value does not exceed VND 50,000 or that have been modified in a way that they are no longer tradable or usable and can only be used as samples.
2. Printed advertisements specified in Chapter 49 of Vietnam’s List of exported or imported goods: fliers, commercial catalogues, annual publications, advertisement documents, tourism posters that are used for advertising, announcing or advertising goods or services and provided free of charge shall be exempt from import duties as prescribed in Clause 10 Article 16 of the Law on Export and import duties, provided each shipment only consists of 01 type of printed documents and the total weight of which does not exceed 01 kg. If a shipment consists of more than one type of printed documents, only one copy of a type is permitted or their total weight must not exceed 01 kg.
3. Procedures for granting duty exemption are specified in Article 31 of this Decree.

Article 28. Exemption of duties on goods exported or imported for social welfare, recovery from a disaster, epidemic or other special incidents

1. Goods exported or imported to serve social welfare works, recovery from a disaster, epidemic or other special incidents that are exempt from duties as prescribed in Clause 23 Article 16 of the Law on Export and import duties comprise:
2. a) Goods that cannot be domestically manufactured and have to be imported to be used for a project which is part of a social welfare program of the Government are exempt from import duties.
3. b) Goods that cannot be domestically manufactured and are imported to serve recovery from a disaster or epidemic are exempt from import duties.
4. c) The Prime Minister shall decide exemption of duties on exports and imports in other special incidents on a case-by-case basis.
5. The Ministry of Planning and Investment shall establish criteria for identification of goods that cannot be domestically manufactured.
6. An application for exemption of duties on imports serving recovery from a disaster or epidemic consists of:
7. a) A written request for duty exemption prepared by the People’s Committee of the province or a Ministry or an equivalent authority which specifies the damage caused by the disaster or epidemic;
8. b) A list of imports serving recovery from the disaster or epidemic according to Form 04 in Appendix VII enclosed herewith;
9. c) 01 certified true copy of the decision on outbreak declaration issued by a competent authority as prescribed by the Law on Prevention and treatment of infectious diseases if goods are imported in response to an epidemic.
10. An application for exemption of duties on imports serving social welfare works consists of:
11. a) A written request for duty exemption prepared by the People’s Committee of the province, a Ministry or an equivalent authority;
12. b) A list of imports serving social welfare works according to Form 04 in Appendix VII enclosed herewith.
13. Procedures for granting duty exemption:
14. a) In consideration of the written request for duty exemption, the Ministry of Finance, within 15 days, shall process the application and submit the List of duty-free goods to the Prime Minister for approval.
15. b) Pursuant to the Prime Minister’s directive, the Sub-department of Customs where export or import procedures are followed shall grant exemption of export or import duties.
16. An application for exemption of duties on goods imported as emergency aid in the event of a disaster or epidemic consists of:
17. a) A customs dossier specified in Article 24 of the Law on Customs;
18. b) A written confirmation that the goods are imported as emergency aid issued by the People’s Committee of the province or a Ministry or an equivalent authority. The confirmation must specify the damage caused by the disaster or epidemic;
19. c) A list of goods imported as emergency aid;
20. d) 01 photocopy of the decision on outbreak declaration issued by a competent authority as prescribed by the Law on Prevention and treatment of infectious diseases if goods are imported in response to an epidemic.

In consideration of the application for duty exemption, the customs authority where customs procedures are followed shall decide whether to grant duty exemption.
Article 29. Exemption of duties on exports or imports under an international treaty, goods of low values and goods sent by express delivery service

1. Exports and imports exempt from export and import duties under international treaty to which Vietnam is a signatory:

The basis for determination of eligibility for exemption of export or import duties is the quantity, categories and values of the goods specified in the international treaty.
Where an international treaty does not specify the duty-free categories or quantities, the Ministry of Finance shall reach an agreement with the Ministry of Foreign Affairs on the duty-free categories or quantities and submit a report to the Prime Minister for approval.

2. Imports sent by express delivery service whose customs value is not exceeding VND 1,000,000 or duty on which is less than VND 100,000 are exempt from import duties.

Where the customs value of goods exceeds VND 1,000,000 or the duty payable exceeds VND 100,000, the entire shipment shall be dutiable.

3. A shipment whose customs value is less than VND 500,000 or the total export or duty on which is less than VND 50,000 shall be exempt from export and import duties.

Provisions of this Clause do not apply to gifts, goods traded among border residents and goods sent by express delivery service.

4. Application for duty exemption:

A customs dossier defined by customs law;
For goods exported or imported under an international treaty, the taxpayer shall submit the following documents in addition to the customs dossier:

1. a) 01 photocopy of the international treaty when submitting the application for the first time (the original copy shall be presented for comparison);
2. b) 01 certified true copy of the import mandate contract or goods supply contract according to the certification of successful bidder or direct contracting decision which specifies that the prices are exclusive of import duties (in case of import mandate or bidding).
3. Procedures for granting duty exemption are specified in Article 31 of this Decree.

Article 30. Registration of duty-free list

1. The cases in which a List of goods to be imported free of duty (hereinafter referred to as “duty-free list”) must be registered are specified in Article 14, Article 15, Article 16, Article 17, Article 18, Article 23 and Article 24 of this Decree.
2. Rules for compilation of a duty-free list:
3. a) The organization or individual that uses the goods such as project owner, business owner; shipbuilding facility owner, petroleum operator (hereinafter referred to as “project owner”) shall submit the duty-free list. If main contractor or subcontractor or a finance lease company imports the duty-free goods instead of the project owner, such contractor or finance lease company shall use the duty-free list registered with the customs authority by the project owner;
4. b) The goods must be those exempt from duties specified in Clause 11, Clause 12, Clause 13, Clause 14, Clause 15, Clause 16 or Clause 18 Article 16 of the Law on Export and import duties and suitable for the business lines, objectives, scale, capacity of the project that uses the duty-free goods;
5. c) A duty-free list shall be compiled for the whole project or each stage, work item, compound or technological line of the project according to the project documents.
6. An application for registration of the duty-free list consists of:
7. a) A notification of the duty-free list which specifies the basis for identification of duty-free goods according to Form 05 in Appendix VII enclosed herewith;
8. b) The duty-free list sent via the electronic data processing system of the customs. In case of disruption of the system or submission of a physical duty-free list, 02 original copy of the duty-free list according to Form 06 in Appendix VII enclosed herewith and 01 original copy of the monitoring sheet according to Form 07 in Appendix VII enclosed herewith shall be submitted;
9. c) 01 certified true copy of the investment registration certificate, certificate of enterprise registration or an equivalent document, except for the cases in which duty exemption is granted specified in Clause 15 Article 16 of the Law on Export and import duties;
10. d) 01 certified true copy of the economic-technical thesis or technical documents or project description;
11. dd) 01 certified true copy of the Certificate of high-tech enterprise or science and technology enterprise or science and technology organization issued by a competent authority if the applicant is a high-tech enterprise or science and technology enterprise or science and technology organization;
12. e) 01 certified true copy of the Certificate of eligibility for manufacture of medical equipment or an equivalent document in the case of duty exemption specified in Clause 14 Article 16 of the Law on Export and import duties;
13. g) 01 certified true copy of the petroleum contracts or decision on assignment of petroleum tasks issued by the authority entitled to approve the annual program and budget in the case of duty exemption specified in Clause 15 Article 16 of the Law on Export and import duties.
14. h) 01 certified true copy of the shipbuilding contract or ship export contract in the case of duty exemption specified in Point b or Point c Clause 16 Article 16 of the Law on Export and import duties;
15. i) 01 certified true copy of the description of the information technology product, digital content or software production in the case of duty exemption specified in Clause 18 Article 16 of the Law on Export and import duties;
16. k) 01 certified true copy of the sale contract or goods supply contract according to the bidding result, export or import mandate contract or finance lease contract if the importer and the person that registers the duty-free list are not the same.
17. Time and location of registration:
18. a) The project owner shall send the application for registration of the duty-free list in accordance with Clause 2 of this Article before the first declaration of duty-free imports is registered;
19. b) The application shall be submitted to the Customs Department of the province where the project or the applicant’s headquarters is located, the supervisory Customs Department of the project if the project is located in more than one province or the Customs Department of the province where the compound or technological line is located if the goods are imported as a compound or technological line.
20. If the duty-free list is incorrect or has to be revised, the project owner shall submit the revised duty-free list together with documents proving the appropriateness of such revisions before goods are imported.
21. Responsibility of the customs:
22. a) Within 03 working days from the day on which the application is received, the customs authority shall notify the project owner of the receipt of the duty-free list, request the project owner to complete the application if it is incomplete or to clarify information in the application, or reject the application;
23. b) If revisions to the duty-free list lead to a change to the duty exempted, the customs authority that received the application shall request the customs authority that carry out import procedures to collect the duty that was improperly exempted;
24. c) The customs authority shall inspect the use of duty-free goods according to the risk management mechanism prescribed by tax administration and customs laws;
25. d) In case where the project operation is terminated or changed, the customs authority shall request the project owner to revise the duty-free list, stop procedures for duty exemption and pay the exempted duty.
26. The project owner shall:
27. a) Compile the duty-free list in accordance with Clause 1 of this Article;
28. b) Register the duty-free list, revise the duty-free list and receive feedbacks from the customs authority via the electronic data processing system (unless it is not available);
29. c) Provide truthful and adequate information; submit the application for registration of the duty-free list on schedule; take legal responsibility for the truthfulness and adequacy of the application; use the duty-free goods for conformable purposes;
30. d) Retain documents about identification of duty-free exports or imports and present it to the customs authority or a competent authority during inspection;
31. dd) Notify the customs authority with which the duty-free list was registered of the use of duty-free goods in the fiscal year within 90 days from the end of the fiscal year.

Article 31. Documents and procedures for duty exemption while following customs procedures

1. The application for duty exemption is the customs dossier defined by the Law on Customs and its instructional documents.
2. Apart from the documents mentioned in Clause 1 of this Article, the taxpayer might be requested to submit one of the following documents on a case-by-case basis:
3. a) 01 certified true copy of the import or export mandate contract in case of import or export mandate;
4. b) 01 certified true copy of the certification of successful bidder or direct contracting decision which specifies that the prices are exclusive of import duties if goods are imported by the successful bidder;
5. c) 01 certified true copy of the contract for supply of goods for a petroleum operator which specifies that the prices are exclusive of import duties if goods are imported for petroleum activities;
6. d) 01 certified true copy of the finance lease contract in case imported goods are supplied for an entity eligible for tax incentives (the contract must specify that the prices are exclusive of import duties);
7. dd) 01 certified true copy of the duty-free goods transfer agreement in case where duty-free goods are transferred to another entity which is eligible for duty exemption (the agreement must specify that the prices are exclusive of import duties);
8. e) A confirmation given the Ministry of Science and Technology of the vehicles specified in Article 14 of this Decree.
9. g) 01 certified true copy of the physical duty-free list received by the customs authority (the original shall be presented for comparison)

If the duty-free list is submitted electronically and the taxpayer is not required to submit the physical duty-free list, the customs authority shall decide the grant of duty exemption according to the duty-free list on the electronic data processing system.

3. Procedures for granting duty exemption:
4. a) The taxpayer shall determine and declare the amount of duty-free goods and tax exempted (except duties on goods imported or exported for processing by the hirer) while following customs procedures and take responsibility for such declaration.
5. b) The customs authority where customs procedures are followed shall examine the declaration and applicable regulations to decide the grant of duty exemption.

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

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

In case of submission of a physical duty-free list, the customs authority shall update and deduct the quantity of goods exported and imported accordingly.
In case of duty-free import of an entire assembly or production line which has to be divided into more than one shipment, within 15 days from the import of the last shipment of each assembly or line, the importer shall submit a consolidated import declaration to the customs authority in accordance with tax administration laws.

4. Procedures for an organization to obtain exemption of duties on goods that exceed the duty-free allowance specified in Clause 2 Article 7 and Clause 2 Article 8 of this Decree:
5. a) An application for duty exemption shall be submitted to the General Department of Customs at least 15 working days before customs procedures are initiated;
6. b) If the application is not satisfactory, within 05 working days from the day on which it is received, the General Department of Customs shall request the applicant to complete it;
7. c) Within 15 working days from the day on which the satisfactory application is received, the Ministry of Finance shall decide whether to grant duty exemption at the request of the General Department of Customs;
8. d) The taxpayer and the customs authority where customs procedures are carried out shall follow duty exemption procedures specified in Clause 3 of this Article according to the customs dossier and duty exemption decision issued by the Ministry of Finance.

Article 32. Export and import duty reduction

1. Duties on exports and imports under customs supervision specified in the Law on Customs 2014 and its instructional documents shall be reduced if the goods are damaged or lost because of inevitable causes as prescribed in Clause 1 Article 18 of the Law on Export and import duties.
2. An application for duty reduction consists of:
3. a) Form 08 in Appendix VII enclosed herewith compiled by the taxpayer;
4. b) 01 certified true copy of the insurance contract or insurance payout notice issued by the insurer (if any) (a confirmation by the insurer is required if the insurance contract does not specify tax indemnification) or the compensation agreement issued by the shipping company in case the damage is caused by the shipping company (if any);
5. c) A confirmation of damage issued by a local authority e.g. confirmation of conflagration issued by the local fire department, confirmation of natural disaster or accident issued by the People’s Committee of the province.

The confirmation must be issued within 30 days from the occurrence of damage;

1. d) Confirmation of loss or damage of goods issued by an assessment service provider.

The confirmation must be issued within 30 days from the occurrence of natural disaster, conflagration or accident.

3. Power to grant duty reduction:
4. a) The taxpayer shall submit an application to the customs official while following customs procedures or within 30 working days from the issuance date of the confirmation of loss or damage of goods;
5. b) If a satisfactory application is submitted while following customs procedures, the Sub-department of Customs shall process the application, carry out a physical inspection, inspect the eligibility for duty reduction and decide whether to grant duty reduction before customs procedures are completed as prescribed Article 23 of the Law on Customs;
6. c) If the application for duty reduction is submitted after customs procedures are completed:

If the application is satisfactory, the Customs Department shall compile a dossier, verify the information, inspect the accuracy and adequacy of the application and, within 15 days from the day on which the satisfactory is received, request the Ministry of Finance to issue a decision on duty reduction or inform the taxpayer and provide explanation if the application is rejected. If the application is not satisfactory, the customs authority shall inform the taxpayer within 03 working days from the day on which it is received.
If a physical inspection of goods that have been released from the customs controlled area is necessary basis for duty reduction, a decision on post-clearance inspection shall be delivered to the taxpayer and the tasks specified in this Point shall be carried out within 40 days from the day on which adequate documents are received.
Article 33. Refund of duties on re-imported exports

1. Paid duties on the following exports that have to re-imported shall be refunded and import duties thereon shall be exempt:
2. a) Goods that have been exported but have to be re-imported into Vietnam;
3. b) Goods that are sent by an organization or individual in Vietnam to an overseas organization or individual by international postal service or express delivery service, duties on which have been paid but delivery is failed and the goods have to be re-imported.

The taxpayer shall provide truthful information about the exported goods, the number and date of the sale contract (if any) and the buyer’s name on the import declaration.
The customs authority shall verify information provided by the taxpayer and specify the result to serve the refund of duties.

2. An application for duty refund consists of:
3. a) Form 09 in Appendix VII enclosed herewith;
4. b) 01 certified true copy of the document proving payment for the exports or imports (if paid);
5. c) 01 certified true copy of the export/import contract and invoices enclosed therein or the export/import mandate contract, as the case may be;
6. d) If goods have to be re-imported because it is rejected by the foreign buyer or there is no recipient as notified by the shipping company, 01 certified true copy of the foreign buyer’s notice or agreement with the foreign buyer on the return of goods or the shipping company’s notice of failed delivery which provides explanation and specifies the quantities and categories of the goods returned.

In case of a force majeure event or the taxpayer re-imports goods because of some errors, such document may be omitted. However, the reasons for re-import must be specified in the request for duty refund;

1. dd) In case of exports or imports mentioned in Point b Clause 1 of this Article, 01 certified true copy of the notice of failed delivery issued by the postal service provider or international express delivery service provider.
2. Procedures for submission, receipt and processing of application for duty refund are prescribed by tax administration laws.

If goods are eligible for duty refund but duty has not been paid or is exempted as prescribed in Article 19 of the Law on Export and import duties, documents and procedures are similar to those for duty refund.
Article 34. Refund of duties on re-exported imports

1. Paid import duties on the following imports that have to be re-exported shall be refunded and export duties thereon shall be exempt:
2. a) Imports that have to be re-exported to a foreign country or exported into a free trade zone for consumption therein.

The re-export of goods must be done by the initial importer or a person authorized by the initial importer;

1. b) Imports that are sent by an overseas organization or individual to an organization or individual in Vietnam by international postal service or express delivery service, duties on which have been paid but delivery is failed and goods have to be re-exported;
2. c) Imports on which duties have been paid and then goods are sold to foreign vehicles operating international routes through Vietnamese ports or Vietnamese vehicles operating international routes;
3. d) Imports on which import duties have been paid and that are re-exported while they are retained at checkpoint depot under customs supervision.

The taxpayer shall provide truthful information about the imported goods, the number and date of the sale contract and the buyer’s name on the export declaration.
The customs authority shall verify information provided by the taxpayer and specify the result to serve the refund of duties.

2. An application for duty refund consists of:
3. a) Form 09 in Appendix VII enclosed herewith;
4. b) 01 certified true copy of the VAT invoice or sale invoice in the cases mentioned in Point a or Point c Clause 1 of this Article;
5. c) 01 certified true copy of the document proving payment for the exports or imports (if paid);
6. d) 01 certified true copy of the export/import contract and invoices enclosed therein or the export/import mandate contract, as the case may be;
7. dd) 01 certified true copy of the agreement on return of the imports to the initial foreign exporter in the case specified in Point a Clause 1 of this Article;
8. e) In case of imports mentioned in Point b Clause 1 of this Article, 01 certified true copy of the notice of failed delivery issued by the postal service provider or international express delivery service provider;
9. g) In case of imports mentioned in Point c Clause 1 of this Article, a confirmation of quantity and value of purchased goods for foreign ships issued by the ship provider and documents proving payment to foreign shipping companies.
10. Procedures for submission, receipt and processing of application for duty refund shall comply with tax administration laws.

If goods are eligible for duty refund but duty has not been paid or is exempted as prescribed in Article 19 of the Law on Export and import duties, documents and procedures are similar to those for duty refund.
Article 35. Refund of duties on machinery, equipment, tools, vehicles temporarily imported and re-exported

1. The taxpayer shall declare the depreciation of goods while they are used and retained in Vietnam as prescribed by accounting laws when applying for duty refund. The depreciation declared is the basis for calculation of the remaining value of goods.

The taxpayer shall provide truthful information about the imported goods, the number and date of the sale contract and the buyer’s name on the export declaration.
The customs authority shall verify information provided by the taxpayer and specify the result to serve the refund of duties.

2. An application for duty refund consists of:
3. a) Form 09 in Appendix VII enclosed herewith;
4. b) 01 certified true copy of the document proving payment for the exports or imports (if paid);
5. c) 01 certified true copy of the export/import contract and invoices enclosed therein or the export/import mandate contract, as the case may be;
6. Procedures for submission, receipt and processing of application for duty refund shall comply with tax administration laws.

If goods are eligible for duty refund but duty has not been paid or is exempted as prescribed in Article 19 of the Law on Export and import duties, documents and procedures are similar to those for duty refund.
Article 36. Refund of duties on goods initially imported for business operation but eventually used for manufacture of domestic exports

1. Paid import duties on goods that are initially imported for business operation but eventually used for manufacture of goods that have been exported into a foreign country or a free trade zone shall be refunded.
2. Import duties on the following imports are refundable:
3. a) Raw materials, supplies (including those for manufacture of packages of exports), components, semi-finished products imported incorporated into the exports or used during the manufacture of exports without being incorporated into the exports;
4. b) Imported finished products that are attached on exports or packed with exports as a whole;
5. c) Components and parts imported for repair of exports under warranty.
6. Basis for determination of eligibility for duty exemption:
7. a) The manufacturer of exports has a factory where exports are manufactured in Vietnam; owns or has the right to use machinery and equipment at the factory which is suitable for the raw materials, supplies and components imported for manufacture of exports;
8. b) The value or quantity of imported raw materials, supplies and components on which import duties are refundable is the actual value or quantity of raw materials, supplies and components used for the manufacture of the products that are exported in reality;
9. c) The exported products are declared as domestic exports;
10. d) The manufacturer directly imports goods and exports the products or authorizes another entity to do so.

The taxpayer shall provide truthful information about the exports derived from the imported goods on the customs declaration.

4. Where a type of raw materials, supplies or components is used to manufacture more than one type of products but only one of them is exported, import duties shall be refunded according to the ratio of the quantity of raw materials, supplies or components incorporated into the exported products to the total value of products manufactured.

The total value of products manufactured is the total value of exported products and selling price of products sold domestically. The value of products exported products is exclusive of the value of domestically purchased raw materials, supplies or components that are incorporated into the exported products.
Refundable import duty is calculated as follows:

The value of exported products equals (=) the quantity of exported products multiplied by (x) dutiable value of exported products.

5. An application for duty refund consists of:
6. a) Form 09 in Appendix VII enclosed herewith;
7. b) 01 certified true copy of the document proving payment for the exports or imports (if paid);
8. c) 01 certified true copy of the export/import contract and invoices enclosed therein or the export/import mandate contract, as the case may be;

The taxpayer shall write the number and date of the contract and the buyer’s name on the export declaration.

1. d) A statement of duties on imported raw materials, supplies and components (Form 10 in Appendix VII enclosed herewith).

The refundable import duties on imported raw materials, supplies and components must agree with the quantity of raw materials, supplies and components used for manufacture of the products that are exported in reality;

1. dd) 01 certified true copy of the processing contract with the foreign hirer if raw materials, supplies and components are imported for manufacture of products that are used for processing exports under a processing contract with a foreign entity;
2. e) 01 certified true copy of the document proving the existence of a factory in Vietnam, the right to ownership or enjoyment of machinery and equipment therein that are suitable for the raw materials, supplies and components imported for manufacture of exports.
3. Procedures for submission, receipt and processing of application for duty refund shall comply with tax administration laws.

If goods are eligible for duty refund but duty has not been paid or is exempted as prescribed in Article 19 of the Law on Export and import duties, documents and procedures are similar to those for duty refund.
Article 37. Refund of import duty or export duty in case of no imports or exports; refund of overpaid export or import duty; minimum refundable amount

1. Where import duty or export duty has been paid without imports or exports or the quantity of actual exports or imports is smaller than the quantity on which export or import duty was paid, the amount of paid export or import duty on the goods that are not exported or imported in reality shall be refunded.
2. The minimum refundable amount in the cases specified in Article 35 through 37 of this Decree is VND 50,000.

The customs authority shall reject applications for refund of duty smaller than the aforementioned minimum refundable amount.

3. An application for duty refund consists of form 09 in Appendix VII enclosed herewith.
4. Procedures for submission, receipt and processing of application for duty refund shall comply with tax administration laws.

If goods are eligible for duty refund but duty has not been paid or is exempted as prescribed in Article 19 of the Law on Export and import duties, documents and procedures are similar to those for duty refund.
Where a taxpayer submits an application for duty cancellation while following customs procedures and is not required to pay duty before inspection, the customs authority shall not collect export or import duty.
Chapter III
IMPLEMENTATION CLAUSE
Article 38. Effect

1. This Decree comes into force from September 01, 2016 and replaces the Government’s Decree No. 87/2010/ND-CP dated August 13, 2010.
2. Provisions for exemption of export and import duties in the Prime Minister’s Decision No. 31/2015/QD-TTg dated August 04, 2016, the Prime Minister’s Decision No. 52/2015/QD-TTg dated October 20, 2015, the Prime Minister’s Decision No. 53/2013/QD-TTg dated September 13, 2013 and Article 7 of the Prime Minister’s Decision No. 219/2009/QD-TTg are abolished.

Article 39. Transition clause

1. If a project is provided with export or import duty incentive that is more favorable than that specified in the Law on Export and import duties, the incentive being applied shall be applied until expiration of the incentive duration.
2. If a project is provided with export or import duty incentive that is less favorable than that specified in the Law on Export and import duties or has not been provided with export or import duty specified in the Law on Export and import duties 2016, the incentives specified in the Law on Export and import duties shall be applied until expiration of the incentive duration.

Article 40. Responsibility for implementation

1. The Ministry of Planning and Investment shall publish a list of goods that can be manufactured domestically mentioned in Article , 15, 16, 17, 18, 19, 20, 21, 23, 24, 25 and 28 of this Decree.
2. The Ministry of Science and Technology shall publish a list or establish criteria for identification of:
3. a) Specialized vehicles used for petroleum activities;
4. b) Specialized vehicles used in technological line directly serving manufacturing activities of investment projects;
5. c) Vehicles in the technological line directly serving shipbuilding activities;
6. d) Scientific documents serving scientific research, technological development, development of technology incubation, science and technology enterprise incubation and technological innovation;
7. dd) Specialized machinery, equipment, parts and supplies serving scientific research, technological development, development of technology incubation, science and technology enterprise incubation and technological innovation that can be domestically manufactured.
8. The Board of Directors shall publish a list or establish criteria for identification of goods exclusively serving education.
9. The Ministry of Agriculture and Rural Development shall publish a list or establish criteria for determination of plant varieties, animal breeds, fertilizers and plant protection substances that have to be imported.
10. The Ministry of Information and Communications shall publish a list or establish criteria for identification of imported raw materials, supplies and components for manufacture or information technology products, digital contents or software.
11. The Ministry of Natural Resources and Environment shall publish a list or establish criteria for identification of imported machinery, equipment, vehicles, tools and supplies exclusively serving environmental protection and derived from the process of waste recycling and treatment.
12. The Ministry of Public Security and the Ministry of National Defense shall inform the General Department of Customs of annual plans for importing goods exclusively serving national defense and security purposes approved by the Prime Minister or by the Minister of Public Security or by the Minister of National Defense who is authorized by the Prime Minister as well and any change to the plan.
13. The State bank shall publish a list of machinery, equipment, raw materials, supplies, components and parts imported for money printing and mincing and appoint importers thereof.
14. The Ministry of Foreign Affairs shall inform the Ministry of Finance of tax incentives under international treaties and agreements between Vietnam’s government and foreign non-governmental organizations.
15. Ministers, Heads of ministerial agencies, Heads of Governmental agencies, Presidents of the People’s Committees of provinces, relevant organizations and individuals are responsible for the implementation of this Decree./.

 
APPENDIX I
LIST OF COMMODITIES AND ALLOWANCE FOR COMMODITIES SERVING WORK AND LIFE OF DIPLOMATIC MISSIONS, CONSULAR OFFICES AND REPRESENTATIVE OFFICES OF FOREIGN ORGANIZATIONS IN VIETNAM
(Enclosed with the Government’s Decree No. 134/2016/ND-CP dated September 01, 2016)

Note: Used cars must be conformable with effective regulations of law on import of used cars.
 
APPENDIX II
LIST OF COMMODITIES AND ALLOWANCE FOR COMMODITIES SERVING WORK AND LIFE OF MEMBERS OF DIPLOMATIC MISSIONS, CONSULAR OFFICES AND REPRESENTATIVE OFFICES OF FOREIGN ORGANIZATIONS IN VIETNAM
(Enclosed with the Government’s Decree No. 134/2016/ND-CP dated September 01, 2016)

Notes:

1. Used cars must be conformable with effective regulations of law on import of used cars.
2. Cars and motorcycles may only be imported if the person has worked in the diplomatic mission, consular office or representative office of a foreign organization in Vietnam which is granted diplomatic immunity and privileges for at least 18 months from the day on which the ID card is issued by the Ministry of Foreign Affairs and the remaining work duration in Vietnam is at least 12 months according to the ID card issued by the Ministry of Foreign Affairs.

 
APPENDIX III
LIST OF COMMODITIES AND ALLOWANCE FOR COMMODITIES SERVING WORK AND LIFE OF OTHER EMPLOYEES OF DIPLOMATIC MISSIONS, CONSULAR OFFICES AND REPRESENTATIVE OFFICES OF FOREIGN ORGANIZATIONS IN VIETNAM
(Enclosed with the Government’s Decree No. 134/2016/ND-CP dated September 01, 2016)

Notes:

1. Used cars must be conformable with effective regulations of law on import of used cars.
2. Cars and motorcycles may only be imported if the person has worked in the diplomatic mission, consular office or representative office of a foreign organization in Vietnam which is granted diplomatic immunity and privileges for at least 12 months from the day on which the ID card is issued by the Ministry of Foreign Affairs and the remaining work duration in Vietnam is at least 09 months according to the ID card issued by the Ministry of Foreign Affairs.
3. Alcohols, beer and cigarettes may only imported within the first 06 months from the date written on the ID card is issued by the Ministry of Foreign Affairs if the remaining work duration in Vietnam is at least 90 days or more.

 
APPENDIX IV
LIST OF FATAL DISEASES
(Enclosed with the Government’s Decree No. 134/2016/ND-CP dated September 01, 2016)

 
APPENDIX V
DUTY FREE ALLOWANCES FOR GOODS TRADED BY BORDER RESIDENTS
(Enclosed with the Government’s Decree No. 134/2016/ND-CP dated September 01, 2016)
Duty-free allowance for each border resident, who is a Vietnamese citizen that has a permanent residence in a bordering area and is permitted by the police authority of the bordering province to reside in the bordering area, is VND 2,000,000 per day per time and not more than 4 times per month.
 
APPENDIX VI
LIST OF PRIORITIZED MEDICAL EQUIPMENT
(Enclosed with the Government’s Decree No. 134/2016/ND-CP dated September 01, 2016)

 
 
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THE LAW

ON EXPORT AND IMPORT DUTIES

Pursuant to the Constitution of Socialist Republic of Vietnam;
The National Assembly promulgates the Law on Export and import duties.
Chapter I
GENERAL PROVISIONS
Article 1. Scope
This Law provides for taxed goods, taxpayers, basis for tax calculation, time for tax calculation, tariff schedules, anti-dumping duty, countervailing duty, safeguard duty imposed upon exports and imports; tax exemption, tax reduction, refund of export and import duties.
Article 2. Taxed goods

1. Goods exported and imported through Vietnam’s border and border checkpoints.
2. Goods exported from the domestic market into free trade zones; goods imported from free trade zones into the domestic market.
3. Goods indirectly exported-imported; goods exported and imported by enterprises exercising their right to export, import, or distribute.
4. The following goods do not incur export and import duties:
5. a) Goods in transit;
6. b) Goods that are humanitarian aid or grant aid;
7. c) Goods exported from a free trade zone to abroad; goods imported from abroad to a free trade zone and used within such free trade zone; goods transported from one free trade zone to another;
8. d) Amounts of petroleum used as severance tax paid to the State upon its exportation.
9. The Government shall regulate this Article.

Article 3. Taxpayers

1. Owners of exports and imports.
2. Entrusted exporters and importers.
3. People entering and leaving Vietnam carrying exports or imports, sending or receiving goods through Vietnam’s border and border checkpoints.
4. Taxpayers’ guarantors and other entities authorized to pay tax on behalf of taxpayers, including:
5. a) Customs brokerage agents in case authorized by the taxpayer to pay export and import duties;
6. b) Providers of postal services or international express mail services paying tax on behalf of taxpayers;
7. c) Credit institutions or other organizations operating under the Law on credit institutions that provide guarantee or pay tax on behalf of taxpayers;
8. d) People authorized by goods owners in case goods are gifts of individuals; any luggage sent before or after its owner’s arrival or departure;
9. dd) Any branch of an enterprise authorized to pay tax on its behalf;
10. e) Other people authorized to pay tax on behalf of taxpayers as prescribed by law.
11. Any person who purchases or transports goods within the tax-free allowance applied to border residents which are sold domestically instead of being consumed or used for manufacture; foreign traders permitted to deal in exports and imports at bordering markets as prescribed by law.
12. Owners of exports or imports that are initially tax-free but then taxed.
13. Other cases prescribed by law.

Article 4. Definitions
For the purpose of this Law, the terms below are construed as follows:

1. Free trade zone means an economic zone located within Vietnam’s territory, established in accordance with law, having a definite geographic boundary, and separated from the outer area by hard fences in order to facilitate customs inspection and customs control by the customs authority and relevant agencies with regard to exports and imports, inbound and outbound vehicles and passengers; the trading relationship between the free trade zone and the outside area is consider exportation and importation.
2. Mixed duty means the total amount of proportional tax and fixed tax.
3. Proportional duty means tax expressed as a percentage of the taxable value of exports and imports.
4. Fixed duty means a fixed amount of tax imposed upon a unit of exports and imports.
5. Anti-dumping duty means an additional import duty imposed upon dumped imports in Vietnam that cause or threaten to cause considerable damage to domestic manufacturing or prevents the formation of domestic manufacturing.
6. Countervailing duty means an additional import duty imposed upon subsidized goods imported into Vietnam that causes or threatens to cause considerable damage to domestic manufacturing or prevents the formation of domestic manufacturing.
7. Safeguard duty means an additional import duty that is imposed in case the quantity of goods imported into Vietnam is above the acceptable level and thus causes or threatens to cause considerable damage to domestic manufacturing or prevents the formation of domestic manufacturing.

Chapter II
BASIS AND TIME FOR TAX CALCULATION, TAX SCHEDULES
Article 5. Basis for calculation of proportional duties

1. The amount of export or import duty is determined according to the taxable value and duty rate (%) of each article at the time of tax calculation.
2. Export duty rate of each article is specified in the export duty schedule.

Where goods are exported to a country or group of countries or territories having an agreement on concessional export duties with Vietnam, such agreement shall apply.

3. Import duty rates include preferential rates, special preferential rates, and ordinary rates as follows:
4. a) Preferential rates apply to imports originated in any country or group of countries or territories that accord Vietnam most-favored nation treatment; goods that are imported from a free trade zone to the domestic market and originating in a country or group of countries or territories that accord Vietnam most-favored nation treatment;
5. b) Special preferential rates apply to imports originated in any country or group of countries or territories that have an agreement on special preferential import duties with Vietnam; goods that are imported from a free trade zone to the domestic market and originating in a country or group of countries or territories that have an agreement on special preferential import duties with Vietnam;
6. c) Ordinary rates apply to imports other than those mentioned in Point a and Point b of this Clause. The ordinary rate is 150% of the preferential rate applied to the corresponding article. In case preferential rate is 0%, the Prime Minister shall decide the application of ordinary rate pursuant to Article 10 of this Law.

Article 6. Basis for calculation of fixed duties and mixed duties

1. The amount of fixed export or import duty imposed depends on the actual quantity of exports or imports and the amount of duty per unit of goods at the times of tax calculation.
2. The amount of mixed duty imposed upon exported or imported goods is the total amount of proportional tax and fixed tax as prescribed by Clause 1 Article 5 and Clause 1 Article 6 hereof.

Article 7. Duties imposed upon imports applying tariff quotas

1. Goods imported inside the tariff quota shall apply the duty rates and fixed duties specified in Clause 3 Article 5 and Article 6 hereof.
2. Goods imported outside the tariff quota shall apply the out-quota rates and fixed duties specified in Clause 3 Article 5 and Article 6 hereof.

Article 8. Taxable value and time for tax calculation

1. The taxable value is the customs value prescribed by the Law on Customs.
2. The time for calculating export or import duty is the time of registration of the customs declaration.

In case of exports or imports that are not subject to taxation, exempt from export or import duties, or applying in-quota duty rates or fixed duty but then the eligibility for tax exemption or in-quota duties is changed as prescribed by law, the time for tax calculation is the time of registration of the new customs declaration.
The time of registration of the customs declaration shall comply with regulations of law on customs.
Article 9. Tax payment deadline

1. Duties on exports and imports have to be paid before customs clearance or release as prescribed by the Law on Customs, except for the case in Clause 2 hereof.

Where a credit institution provides guarantee for the amount of tax payable, customs clearance or release shall be granted. However, late payment interest shall be paid for the period from the date of customs clearance or release to the tax payment date in accordance with the Law on Tax administration. The guarantee period shall not exceed 30 days from the day on which the customs declaration is registered.
If the taxpayer fails to pay tax and late payment interest by the end of the guarantee period, the guarantor shall fully pay tax and late payment interest on behalf of the taxpayer.

2. The taxpayer given priority as prescribed by the Law on Customs shall pay tax on the customs declarations granted customs clearance or release in the month by the 10^th of the next month. If the taxpayer fails to pay tax by the aforesaid deadline, the taxpayer shall fully pay outstanding tax and late payment interest as prescribed by the Law on Tax administration.

Article 10. Rules for imposition of tariff schedules and duty rates

1. Encouragement of import of raw materials that cannot be manufactured domestically; focus on development of high technology, source technology, energy-saving, and environmental protection.
2. Suitability for the orientation of socio-economic development and commitments on export and import duties in international treaty to which Socialist Republic of Vietnam is a signatory.
3. contribution to stabilization of the market and state budget revenues.
4. Simplicity and transparency, facilitation of tax payment and of tax formalities.
5. Uniform imposition of duty rates upon goods of the same nature, composition, uses, or technical features; import duties are regressive from finished products to raw materials; export duties are progressive from finished products to raw materials.

Article 11. The power to impose tariff schedules and duty rates

1. Pursuant to Article 10 hereof, the export duty schedule enclosed herewith, the Schedule of Concessions annexed to the Protocol of Accession to WTO approved by the National Assembly and other international treaties to which Socialist Republic of Vietnam is a signatory, the Government shall promulgate:
2. a) Preferential export duty and special preferential export duty schedules;
3. b) Preferential import duty and special preferential import duty schedules;
4. c) Lists of goods and fixed duties, mixed duties, and out-quota import duties.
5. Where necessary, the Government shall request Standing Committee of the National Assembly to amend the Export duty Schedule enclosed herewith.
6. The power to impose anti-dumping duties, countervailing duties, and safeguard duties is specified in Chapter III hereof.

Chapter III
ANTI-DUMPING DUTIES, COUNTERVAILING DUTIES, SAFEGUARD DUTIES
Article 12. Anti-dumping duties

1. Conditions for applying anti-dumping duties:
2. a) The imports being dumped in Vietnam and the dumping margin must be determined;
3. b) The dumping causes or threatens to cause considerable damage to domestic manufacturing or prevents the formation of domestic manufacturing.
4. Rules for applying anti-dumping duties:
5. a) Anti-dumping duty may only be applied to a reasonable extent to prevent or minimize damage to domestic manufacturing;
6. b) The anti-dumping duties shall be applied after an investigation is carried out and conform to the investigation conclusion as prescribed by law;
7. c) Anti-dumping duty shall be imposed upon dumped imports in Vietnam;
8. d) The application of anti-dumping duties must not cause damage to domestic socio-economic interest.
9. Anti-dumping duties shall be applied for a period not exceeding 5 years from the day on which the decision to apply anti-dumping duty takes effect. Such decision may be extended where necessary.

Article 13. Countervailing duties

1. Conditions for applying countervailing duties:
2. a) It is determined that imports are subsidized as prescribed by law;
3. b) The imports cause or threaten to cause considerable damage to domestic manufacturing or prevent the formation of domestic manufacturing.
4. Rules for applying countervailing duties:
5. a) Countervailing duties may only be applied to a reasonable extent to prevent or minimize damage to domestic manufacturing;
6. b) The countervailing duties shall be applied after an investigation is carried out and conform to the investigation conclusion as prescribed by law;
7. c) Countervailing duties shall be imposed upon subsidized imports in Vietnam;
8. d) The application of countervailing duties must not cause damage to domestic socio-economic interest.
9. Countervailing duties shall be applied for a period not exceeding 5 years from the day on which the decision to apply anti-dumping duty takes effect. Such decision may be extended where necessary.

Article 14. Safeguard duties

1. Conditions for applying safeguard duties:
2. a) The volume, quantity or value of imports drastically increases compared to the volume, quantity, or value of like or directly competitive domestic goods;
3. b) The increase of volume, quantity or value of imports mentioned in Clause a of this Clause causes or threatens to cause considerable damage to domestic manufacturing of like or directly competitive goods or prevents the formation of domestic manufacturing.
4. Rules for applying safeguard duties:
5. a) Safeguard duties may only be applied to a reasonable extent to prevent or minimize serious damage to domestic manufacturing and facilitate the improvement of competitiveness of manufacturing;
6. b) The application of safeguard duties shall take into account the investigation conclusion, unless temporary safeguard duties are applied;
7. c) Safeguard duties are applied in a non-discriminatory manner and regardless of goods origins.
8. Safeguard duties shall be applied for a period not exceeding 4 years, including the period of applying temporary safeguard duties. The period of application of safeguard duties may be extended for up to 06 more years if serious damage or the threat of serious damage to domestic manufacturing still remains and there is evidence that the manufacturing is improving its competitiveness.

Article 15. Application of anti-dumping duties, countervailing duties, safeguard duties

1. The application, adjustment, removal of anti-dumping duties, countervailing duties, safeguard duties shall comply with this Law, regulations of law on anti-dumping, anti-subsidy, and safeguard measures.
2. In consideration of duty rates, quantity, or value of goods subject to anti-dumping duties, countervailing duties, or safeguard duties, the declarant shall declare and pay duties in accordance with regulations of law on tax administration.
3. The Ministry of Industry and Trade shall decide the application of anti-dumping duties, countervailing duties, safeguard duties.
4. The Ministry of Finance shall provide for the declaration, collection, payment, and refund of anti-dumping duties, countervailing duties and safeguard duties.
5. Where the interests of Socialist Republic of Vietnam are infringed or violated, pursuant to international treaties, the Government shall propose to the National Assembly other appropriate safeguard duty measures.

Chapter IV
TAX EXEMPTION, REDUCTION, AND REFUND
Article 16. Tax exemption

1. Exported or imported goods of foreign entities granted diplomatic immunity and privileges in Vietnam within the allowance under an international treaty to which Socialist Republic of Vietnam is a signatory; luggage within the tax-free allowance of inbound and outbound passengers; imports to be sold at duty-free shops.
2. Personal belongings, gifts from foreign entities to Vietnamese entities and vice versa within the tax-free allowance.

If the quantity or value of personal belongings or gifts exceeds the tax-free allowance, the excess amount or value shall be taxed, unless the recipient is an entity funded by state budget and permitted by a competent authority to receive them or they are meant to serve humanitarian or charitable purposes.

3. Goods traded across the border of border residents on the List of goods and within the tax-free allowance serving the manufacturing or consumption by border residents.

Goods that are purchased or transported within the tax-free allowance but do not serve the manufacturing or consumption by border residents, exports and imports of foreign traders permitted to be sold at bordering markets shall be taxed.

4. Goods exempt from export and import duties under international treaties to which Socialist Republic of Vietnam is a signatory.
5. Goods whose value or tax payable is below the minimum level.
6. Imported raw materials, supplies, components serving processing of exports; finished products imported to be fixed on processed products; outward processing products.

Regarding outward processing products derived from domestic raw materials that subject to export duties, the amount of domestic raw materials incorporated into the products shall be taxed.
Goods exported for processing and then imported are exempt from export duty and import duty on the value of exported raw materials incorporated into the processed products. Goods exported for processing and then imported that are natural resources, minerals, or products whose the total value of natural resources or minerals plus energy costs makes up at least 51% of the product price shall be taxed.

7. Materials, supplies, components imported for manufacture of exports. products.
8. Goods manufactured, processed, recycled, assembled in a free trade zone without using imported raw materials or components when they are imported into the domestic market.
9. Goods temporarily imported for re-export or goods temporarily exported for re-import within a certain period of time, including:
10. a) Goods temporarily imported or exported to participate in fairs, exhibitions, product introduction, sports or art events, or other events; machinery and equipment temporarily imported for re-export for testing, research and development; machinery and equipment, tools temporarily imported or exported to be used for certain period of time or serve overseas processing, except for machinery, equipment, tools, vehicles permitted to be temporarily imported too serve investment projects, construction, installation, or manufacture;
11. b) Machinery, equipment, components, spare parts temporarily imported for replacement or repair of foreign ships or airplanes, or temporarily exported for replacement or repair of Vietnamese ships or airplanes overseas; goods temporarily imported to supply for foreign ships or airplanes in Vietnam’s ports;
12. c) Goods temporarily imported or exported for warranty, repair, or replacement;
13. d) Vehicles temporarily imported or exported to carry exports or imports;
14. dd) Goods that are temporarily imported and re-exported by the deadline or extended deadline and a credit institution provides a guarantee or a deposit equivalent to import duties on the temporarily imported goods has been paid.
15. Non-commercial goods: samples, pictures, videos, models instead of samples; advertisement publications in small quantities.
16. Imports as fixed assets of an entity eligible for investment incentives as prescribed by regulations of law on investment, including:
17. a) Machinery and equipment; components, parts, spare parts for assembly or operation of machinery and equipment; raw materials for manufacture of machinery and equipment, components, parts, or spare parts of machinery and equipment;
18. b) Special-use vehicles in a technological line directly used for a manufacture project;
19. c) Building materials that cannot be domestically produced.

Exemption of import duty on the imports specified in this Clause also applies to new investment projects and extension projects.

12. Plant varieties; animal breeds, fertilizers, pesticides that cannot be domestically produced as prescribed by competent authority.
13. Raw materials and components which cannot be domestically manufactured and are imported serving the manufacturing of investment projects eligible for investment incentives or in an extremely disadvantaged area prescribed by regulations of law on investment, high technology enterprises, science and technology enterprises, science and technology organizations are exempt from import duties for 05 years from the commencement of manufacture.

The exemption of import duties specified in this Clause does not apply to mineral extraction projects; projects for manufacture of products where total value of natural resources or minerals plus energy costs makes up at least 51% of the product price; projects for manufacture or sale of goods/services subject to special excise tax.

14. Raw materials and components which cannot be domestically manufactured of investment projects for manufacture or assembly of medical equipment given priority shall be exempt from import duties for 05 years from the commencement of manufacture.
15. Imports serving petroleum activities, including:
16. a) Machinery, equipment, components, means of transport necessary for petroleum activities, including those temporarily imported for re-export;
17. b) Components, parts, spare parts for assembly or operation of machinery and equipment; raw materials for manufacture of machinery and equipment, components, parts, or spare parts of machinery and equipment necessary for petroleum activities;
18. c) Supplies necessary for petroleum activities that cannot be domestically produced.
19. Shipbuilding projects and shipyards eligible for incentives as prescribed by regulations of law on investment shall have tax exempted from:
20. a) Imports that constitute fixed assets of the shipyard, including: machinery and equipment; components, parts, spare parts for assembly or operation of machinery and equipment; raw materials for manufacture of machinery and equipment, components, parts, or spare parts of machinery and equipment; means of transport in the technological line directly serving shipbuilding; building materials that cannot be domestically produced;
21. c) Imported machinery, equipment, raw materials, supplies, components, semi-finished products serving shipbuilding that cannot be domestically produced;
22. c) Ships for export.
23. Imported machinery, equipment, raw materials, supplies, components, parts, spare parts serving money printing and mincing.
24. Imported raw materials, supplies, components serving that cannot be domestically produced serving manufacture of information technology products, digital contents, software.
25. Exports and imports serving environmental protection, including:
26. a) Imported machinery, equipment, equipment, tools, supplies that cannot be domestically produced serving collection, transport, treatment wastewater, wastes, exhaust gases, environmental monitoring and analysis, production of renewable energy, treatment of environmental pollution, response to environmental emergencies;
27. b) Exports that are products of waste recycling and treatment.
28. Imports directly serving education that cannot be domestically produced.
29. Imported dedicated machinery, equipment, components, supplies that cannot be domestically produced, scientific materials serving scientific research, technological development, technological cultivation, cultivation of science and technology enterprises and technological innovation.
30. Imported dedicated products directly serving national defense and security, the vehicles among which must be those that cannot be domestically produced.
31. Exports and imports serving assurance of social security, recovery from disasters, epidemics, and other special situations.
32. The Government shall regulate this Article.

Article 17. Procedures for tax exemption

1. In the cases specified in Clause 11, 12, 13, 14, 15, 16 and 18 of Article 16, the taxpayer shall notify the customs authority of goods eligible for tax exemption to be imported.
2. The procedures for tax exemption shall comply with regulations of law on tax administration.

Article 18. Tax reduction

1. Exports and imports that are damaged or lost under customs supervision and the damage or loss is verified by a competent organization, tax reduction shall be granted.

The level of reduction shall be proportional to the loss of goods. Tax is exempt if the exports or imports are completely damaged or lost.

2. The procedures for tax reduction shall comply with regulations of law on tax administration.

Article 19. Tax refund

1. Cases of tax refund:
2. a) Any taxpayer who has paid export duty or import duty but has no exports or imports, or the quantity of exports or imports is smaller than the quantity on which duty is paid;
3. b) Any taxpayer who has paid export duty but the exports has to be re-imported shall receive a refund of export duty and does not have to pay import duty;
4. c) Any taxpayer who has paid import duty but the imports has to be re-exported shall receive a refund of import duty and does not have to pay export duty;
5. d) Any taxpayer who has paid tax on goods imported to serve manufacture or business operation and they have been used for manufacture of exports and the products are already exported;
6. dd) Any taxpayer who has paid tax on machinery, equipment, tools, vehicles of organizations and individuals that are permitted to be temporarily imported for re-export, except for those rented to execute investment projects, construction and installation, manufacture, when they are re-exported to abroad or exported to a free trade zone.

The amount of import duty refunded depends on the remaining value of goods when they are re-exported according to the period of time over which they are used or stay in Vietnam. If the goods are no longer usable, import duty shall not be refunded.
Tax shall not be refunded if the refundable amount is below the minimum level specified by the Government.

2. Tax on the goods specified in Point a through c of Clause 1 of this Article shall be refunded if such goods have not been used or undergone working or processing.
3. The procedures for tax refund shall comply with regulations of law on tax administration.

Chapter V
IMPLEMENTATION
Article 20. Effect

1. This Law comes into force from September 01, 2016.
2. The Law on Export and import duties No. 45/2005/QH11 is null and void from the effective date of this Law.

Article 21. Transition

1. Any project given export duty or import duty incentives that are more advantageous than the incentives specified in this law may keep having such incentives for the remaining incentive period of the project. If the incentives given are less advantageous or incentives have not been given as prescribed by this Law, incentives specified in this Law shall be given for the remaining incentive period of the project.
2. This Law shall apply to raw materials, supplies, components imported for manufacture of exports but the products have not been exported; goods temporarily imported that have not been re-exported under declarations registered with customs authorities before the effective date of this Law and tax on which have not been paid.

Article 22. Elaboration
The Government shall elaborate the Articles and Clauses of this Law.
This Law is adopted by the 13^th National Assembly of Socialist Republic of Vietnam on this 6^th of April 2016.
 

 
 
 
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LAW

AMENDMENTS TO SOME ARTICLES OF THE LAW ON VALUE-ADDED TAX, THE LAW ON SPECIAL EXCISE DUTY, AND THE LAW ON TAX ADMINISTRATION

Pursuant to the Constitution of Socialist Republic of Vietnam;
The National Assembly promulgates the Law on amendments to some Articles of the Law on Value-added tax No 13/2008/QH12, which is amended under the Law No. 31/2013/QH13, the Law on special excise duty No. 27/2008/QH12 which is amended under the Law No. 70/2014/QH13, the Law on Tax administration No. 78/2006/QH11 which is amended under the Law No. 21/2012/QH13 and the Law No. 71/2014/QH13.
Article 1
Amendments to some Articles of the Law on Value-added tax No. 13/2008/QH12, which is amended under the Law No. 31/2013/QH13:

1. Clauses 1, 9 and 23 of Article 5 are amended as follows:

“1. Farming, breeding, aquaculture produces that have not been processed into other products or have only been preliminary processed by the manufacturers or catchers when they are sold and imported.
Enterprises and cooperatives buying farming, breeding, aquaculture produces that have not been processed into other products or have only been preliminary processed and selling them to other enterprises or cooperatives are not required to declare and pay VAT but may deduct input VAT.”
“9. Health services, veterinary medicine services including medical examination and treatment services for human and animals; care services for elderly people and disabled people.”
“23. Exports that are raw natural resources or minerals which have not been processed into other products; exports that are goods processed from natural resources or minerals where the total value of natural resources or minerals plus energy costs makes up at least 51% of the product price.”

2. Point g Clause 1 of Article 8 is amended as follows:

“g) The exports specified in Clause 23 Article 5 of this Law.
Exported goods/services that are consumed outside Vietnam, within free trade zones; goods/services provided for foreign customers as prescribed by the Government.”

3. Clause 1 and Clause 2 of Article 13 is amended as follows:

“1. A business establishment that pays VAT using credit-invoice method may offset input VAT that remains after deduction in the month or the quarter against VAT incurred in the next period.
Where a business establishment has registered to pay VAT using credit-invoice method has a new investment project which is still in its investment stage, VAT on goods/services purchased serving the investment has not been deducted, and the remaining tax is at least VND 300 million, VAT shall be refunded.
The VAT that has not been deducted shall not be refunded and instead be carriedforward to the next period in the following cases:

1. a) The investment project does not have adequate charter capital as registered; engages in conditional business lines while the corresponding conditions have not been fully satisfied as prescribed by the Law on Investment or the fulfillment of such conditions is not maintained throughout its operation;
2. b) The project is a natural resource extraction project or mineral extraction project licensed from July 01, 2016 or a manufacture project where the total value of natural resources or minerals plus energy costs makes up at least 51% of the product price.

The Government shall regulate this Clause.

2. A business establishment whose exported goods/services incur an input VAT of at least VND 300 million which has not been deducted in the month or quarter shall receive VAT refund for that month or quarter, unless such goods are imported for exportation or exports are not exported within a customs controlled area as prescribed by the Law on Customs. Inspection after refund shall apply to any manufacturer of exports that does not violate regulations of law on taxation or customs for two consecutive years; any taxpayer that is not considered high-risk as prescribed by the Law on Tax administration.”

Article 2
Amendments to some Articles of the Law on special excise duty No. 27/2008/QH12, which is amended under the Law No. 70/2014/QH13:

1. Clause 1 and Clause 2 of Article 6 is amended as follows:

“1. Taxable prices of goods domestically produced and imports are selling prices imposed by manufacturers or importers.
Where goods subject to special excise tax are sold to a trading establishment which has a parent company-subsidiary company relationship or subsidiaries in the same parent company as the manufacturer or importer, or a trading establishment has an association therewith, the taxable price must not fall below the percentage (%) of average price paid by the trading establishments directly buying from the manufacturers or importers prescribed by the Government;

2. Taxable prices of imports at importation are the prices subject to import duty plus (+) import duty. If imports are eligible for exemption or reduction of import duty, taxable price shall not include the reduction or exemption. Special excise tax on goods that was paid at importation may be deducted when determining the special excise tax on goods when they are sold;”
3. Clause 4 of Section I of Special excise tax schedule in Article 7 is amended as follows:

Article 3
amendments too some Articles of the Law on Tax administration No. 78/2006/QH11, which is amended under Law No. 21/2012/QH13 and Law No. 71/2014/QH13:

1. Article 61 is amended as follows:

“Article 61. Tax exemption and tax reduction
The tax authority shall grant tax exemption and tax reduction to the entities eligible for tax exemption and tax reduction specified in legislative documents on taxation, and tax exemption too households and individuals whose annual levies on non-agricultural land do not exceed VND 50,000.”

2. Clause 4 of Article 92 is amended as follows:

“4. Tax enforcement measures may be postponed if the taxpayer is permitted by the tax authority to pay the tax debt by installments for a period not exceeding 12 months from the beginning of the tax enforcement period. The payment of tax by installments shall be considered according to the taxpayer’s request, provided a credit institution offers a guarantee. The taxpayer shall pay late payment interest on the unpaid tax at 0.03% per day.”

3. Clause 1 of Article 106 is amended as follows:

“1. Any taxpayer who fails to pay tax by the deadline or extended deadline or the deadline specified in the tax authority’s notice or the deadline specified in the tax authority’s decision shall fully pay tax and late payment interest on the unpaid tax at 0.03% per day.
From July 01, 2016, the rate of late payment interest specified in this Clause shall apply to tax debts incurred before July 01, 2016 that have not been paid by taxpayers, including those discovered after inspections by competent authorities.
Where a taxpayer that provides goods/services which are supposed to be paid by state budget incurs a tax debt because such goods/services have not been paid for, such taxpayer is exempt from paying the late payment interest on the unpaid tax, provided such unpaid tax does not exceed the amount owed by state budget.”

4. Clause 3 of Article 42 is annulled.

Article 4

1. This Law comes into force from July 01, 2016, except for the provisions specified in Clause 2 of this Article.
2. Clause 4 Article 3 of this Law comes into force from September 01, 2016.
3. The Government shall elaborate the Articles and Clauses of this Law within its responsibility.

 
This Law is adopted by the 13^th National Assembly of Socialist Republic of Vietnam on this 6^th of April 2016.
 

 
 
 
 
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The post Law No. 106/2016/QH13 of April 06, 2016, amendments to some articles of the law on value-added tax, the law on special excise duty, and the law on tax administration appeared first on MP Law Firm.