Title: DECREE No. 18/2021/ND-CP AMENDMENTS TO SOME ARTICLES OF THE GOVERNMENT’S DECREE NO. 134/2016/ND-CP DATED SEPTEMBER 01, 2016 ELABORATING THE LAW ON EXPORT AND IMPORT DUTIES

Type: Decree

Issuing Agency: Government

Responsible Agency: Government

Issuing Date: 11-03-2021

THE GOVERNMENT -------	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom – Happiness ---------------
No. 18/2021/ND-CP	Hanoi, March 11, 2021

DECREE
AMENDMENTS TO SOME ARTICLES OF THE GOVERNMENT’S DECREE
NO. 134/2016/ND-CP DATED SEPTEMBER 01, 2016 ELABORATING THE
LAW ON EXPORT AND IMPORT DUTIES
Pursuant to the Law on Government Organization dated June 19, 2015 and the
Law dated November 22, 2019 on Amendments to the Law on Government
Organization and the Law on Local Government Organization;
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 June 17, 2020;
Pursuant to the Law on Tax Administration dated June 13, 2019;
Pursuant to the Law on Foreign Trade Management dated June 12, 2017;
At the request of the Minister of Finance;
The Government promulgates a Decree on amendments to some Articles of the
Government’s Decree No. 134/2016/ND-CP dated September 01, 2016 elaborating
the Law on Export and import duties.
Article 1. Amendments to some Article of the Government’s Decree No.
134/2016/ND-CP dated September 01, 2016 elaborating the Law on Export
and import duties
1. Amendments to Clause 1 of Article 3 and addition of Clause 3 to Article 3:
“Article 3. Application of duty rates on exports and imports
1. Duty rates on goods that are exported and imported through Vietnam’s border
checkpoints and border, in-country exports and imports shall be applied in
accordance with Article 5, Article 6 and Article 7 of the Law on Export and Import
Duties. Duty rates shall be applied to in-country exports and imports in accordance
with Clause 3 of this Article.
3. Application of duty rates on in-country exports and imports
a) In-country exports shall apply the export duty rates specified in the
Government’s Decree No. 122/2016/ND-CP, Decree No. 57/2020/ND-CP, Decree
No. 125/2017/ND-CP, their amendments and replacements (if any).
b) In-country imports (except goods imported from free trade zones prescribed in
Point c of this Clause) shall apply the preferential import tariff rates specified in
Decree No. 125/2017/ND-CP, Decree No. 57/2020/ND-CP, their amendments and
replacements (if any).
c) Goods that satisfy the rules of origin of a country, group of countries or
territories that apply most-favored nation treatment in their trade relations with
Vietnam and are imported from free trade zones into the domestic market; goods
that are manufactured, processed, recycled or assembled in free trade zones but do
not meet the conditions for enjoyment of special preferential import tariff rates and
are imported from free trade zones into the domestic market shall apply the
preferential import tax tariff rates specified in Decree No. 125/2017/ND-CP,
Decree No. 57/2020/ND-CP, their amendments and replacements (if any).
Goods that satisfy the rules of origin of a country, group of countries or territories
that have entered into special preferential import tariff with Vietnam, are imported
from free trade zones into the domestic market and satisfy other conditions for
enjoyment of special preferential import tariff rates; goods that are manufactured,
processed, recycled or assembled in free trade zones, meet the conditions for
enjoyment of special preferential import tariff rates and are imported from free
trade zones into the domestic market shall apply the special preferential import tax
tariff rates specified in the Government’s Decrees on special preferential import
tariff schedules serving execution of international treaties to which the Socialist
Republic of Vietnam is a signatory.
Imports that do not satisfy the rules of origin of a country, group of countries or
territories that apply most-favored nation treatment, do not satisfy the conditions
for enjoyment of special preferential import tariff rates, and are imported from free
trade zones into the domestic market shall apply the ordinary import tax tariff rates
prescribed in Point c Clause 3 Article 5 of the Law on Export and Import Duties
No. 107/2016/QH13 and the Prime Minister’s Decisions on application of ordinary
tariff rates on imports.
d) In-country imports on the List of tariff-rate quota goods shall apply the
regulations on the List of tariff-rate quota goods and import tariff rates thereon of
Decree No. 125/2017/ND-CP, Decree No. 57/2020/ND-CP, their amendments and
replacements (if any).”
2. Amendments to Clause 3, Clause 6, Clause 7 and Clause 8 of Article 5:
“Article 5. Grant of duty exemption to goods of foreign entities enjoying
diplomatic immunity and privileges
3. In addition to the commodities listed in Appendix I, Appendix II and Appendix
III hereof, the entities specified in Point a and Point b Clause 1 of this Article are
also granted exemption from import duties on other goods that are necessary for
their works. The categories and quota on duty-free imports are subject to
confirmation by the Ministry of Foreign Affairs.
6. Application for duty exemption:
a) A customs dossier prescribed by customs laws, except for duty-free goods
purchased at duty-free shops;
b) The quota book for duty-free goods (hereinafter referred to as “quota book”)
specified in Clause 8 of this Article: 01 photocopy, unless it has been updated on
National Single-window Information Portal;
c) Documents proving completion of re-export, destruction or transfer of the goods
in the cases specified in Clause 5 of this Article: 01 photocopy;
d) A confirmation of the Ministry of Foreign Affairs in case of import of goods
mentioned in Clause 2, Clause 3 of this Article: 01 photocopy;
dd) The Prime Minister’s Decision on duty exemption in case of goods import
specified in Clause 4 of this Article: 01 photocopy.
7. Procedures for granting duty exemption are specified in Article 31 of this
Decree.
a) In the cases specified in Clause 2 of this Article: the foreign organization shall
complete and send a written request (Form No. 02a in Appendix VII hereof) to the
Ministry of Foreign Affairs. Within 05 working days from the receipt of the
request, the Ministry of Foreign Affairs shall issue a confirmation (Form No. 02b
in Appendix VII hereof) or rejection (which provides explanation). The customs
authority shall consider granting duty exemption according to the documents
specified in Clause 6 of this Article.
b) In the cases specified in Clause 3 of this Article: The foreign organization or
individual (hereinafter referred to as “foreign entity”) shall complete and send a
written request for confirmation of categories and quota on duty-free goods (Form
No. 02c in Appendix VII hereof) to the Ministry of Foreign Affairs. Within 05
working days from the receipt of the request, the Ministry of Foreign Affairs shall
issue a confirmation (Form No. 02d in Appendix VII hereof) or rejection (which
provides explanation). The customs authority shall consider granting duty
exemption according to the documents specified in Clause 6 of this Article.
c) In the cases specified in Clause 4 of this Article:
The foreign entity shall complete and send Form No. 02e in Appendix VII hereof
to the Ministry of Finance. Within 10 days from the receipt of the form, the
Ministry of Finance shall discuss with the Ministry of Foreign Affairs on the
categories and quota on duty-free imports under the international treaty or
agreement between Vietnam Government and the foreign non-governmental
organization.
Within 10 days from the receipt of the document from the Ministry of Foreign
Affairs, the Ministry of Finance shall request the Prime Minister to consider
deciding the categories and quota on duty-free imports. The Prime Minister shall
consider issuing a duty exemption decision (Form No. 02g in Appendix VII
hereof) to the foreign entity. The customs authority shall grant duty exemption
according to the documents specified in Clause 6 of this Article.
The customs authority where customs procedures are followed shall monitor the
use of duty-free quota electronically. In case electronic monitoring is not available,
the taxpayer shall submit 01 photocopy and present the original quota book for
comparison and deduction.
8. Procedures for issuance of quota book or increase of quota therein
a) Application submitted by an organization shall include the following
documents:
The written request for issuance of the issuance of the quota book or quota increase
(Form No. 01 or Form No 01a in Appendix VII hereof: 01 original copy;
Notice of the establishment of the representative agency in Vietnam after the quota
book is issued for the first time: 01 photocopy;
Documents proving completion of re-export, destruction or transfer of the goods in
case the entity specified in Point a, Point b Clause 1 of this Article requests
additional quota on automobiles or motorcycles to the quota book: 01 photocopy;
The international treaty or agreement between Vietnam’s government and the
foreign non-governmental organization which specifies the categories and quota on
duty-free goods: 01 photocopy;
The Prime Minister’s decision on duty exemption if the international treaty or
agreement between Vietnam’s government and the foreign non-governmental
organization does not specify the categories and quota on duty-free goods (for the
organizations specified in Point c, Point d Clause 1 of this Article): 01 photocopy.
b) Application submitted by an individual shall include the following documents:
The written request for issuance of the issuance of the quota book or quota increase
(Form No. 02 or Form No 02i in Appendix VII hereof: 01 original copy;
The ID card issued by the Ministry of Foreign Affairs (for the individuals specified
in Point a, Point b Clause 1 of this Article: 01 photocopy;
Documents proving completion of re-export, destruction or transfer of the goods in
case the entity specified in Point a, Point b Clause 1 of this Article requests
additional allowance for automobiles or motorcycles to the quota book: 01
photocopy;
The work permit or a legally 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): 01
photocopy;
The international treaty or agreement between Vietnam’s government and the
foreign non-governmental organization which specifies the categories and quota on
duty-free goods: 01 photocopy;
The Prime Minister’s decision on duty exemption if the international treaty or
agreement between Vietnam’s government and the foreign non-governmental
organization does not specify the categories and quota on duty-free goods (for the
entities specified in Point c, Point d Clause 1 of this Article): 01 photocopy.
c) Authority to issue the quota book or increase quota therein
Directorate of State Protocol – The Ministry of Foreign Affairs or an agency
authorized by the Ministry of Foreign Affairs shall issue quota books using Form
No. 02h1 or Form No. 02h2 or Form No. 02h3 in pl VII hereof to the entities
specified in Point a and Point b Clause 1 of this Article within 05 working days
from the day on which adequate documents are received.
Customs Departments of provinces, inter-provinces and central-affiliated cities
(hereinafter referred to as “provinces”) where the organizations mentioned in Point
c and Point d Clause 1 of this Article are located shall issue quota books using
Form No. 02h4 or Form No. 02h5 in Appendix VII hereof to the organizations and
individuals 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 quota book to the entities
granted diplomatic immunity and privileges mentioned in Point c Clause 1 of this
Article if they have been issued with quota books by the Ministry of Foreign
Affairs before the effective date of this Decree.
After a quota book is issued, the issuing authority mentioned in this Point shall
update General Department of Customs with information in the quota book via
National Single-window Information Portal.”
3. Amendments to Point b Clause 2 Article 8:
“Article 8. Exemption of duties on gifts
2. Duty-free quota
b) For gifts given by a foreign organization or individual to a Vietnamese
organization whose operating cost is covered by state budget as prescribed by state
budget laws and the receipt of which is permitted by a competent authority, or gifts
given for humanitarian or charitable purposes, the allowance will be the entire
value of the gifts and duty exemption shall be granted up to 04 times per year.
4. Amendments to Point g Clause 1, Clause 2, Clause 4 and Clause 5 of Article 10:
“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 that are exempt from export and import duties specified in Clause 6
Article 16 of the Law on Export and import duties include:
g) Processed products that are exported to a foreign country, a free trade zone or an
organization or individual in Vietnam as requested by the hirer.
Processed exports are exempt from export duties as prescribed by this Point if they
are entirely processed from imported goods. In case processed exports are made of
dutiable domestic raw materials or supplies, export duties on the value of raw
materials or supplies incorporated into the products at the duty rates applied to
such raw materials or supplies shall be paid when the products are exported.
2. Basis for determination of eligibility for duty exemption:
a) The taxpayer has a processing contract that is conformable with regulations of
Decree No. 69/2018/ND-CP. The taxpayer shall specify the number of the
processing contract and its appendices on the customs declaration.
b) The taxpayer or processor hired by the taxpayer has the right to ownership or
enjoyment of the processing facility in Vietnam and equipment in the facility and
has submitted the facility notification, the processing contract, sub-processing
contract and their appendices to the customs authority in accordance with customs
law. In case these documents are not submitted on schedule, the taxpayer shall only
incur administrative penalties for customs offences as per regulations.
c) In case the taxpayer (that has a processing contract) assigns another organization
or individual (hereinafter referred to as “third party”) that satisfies the requirements
specified in Point b of this Clause to process some or all of the stages, then receive
the semi-finished products for further processing or receive the finished products
for export, the taxpayer will be exempt from import duty on the imports assigned
to the sub-processor.
In case the taxpayer (that has a processing contract) assigns all or part of the
imports or semi-finished products that are processed from imports to a third party
in a free trade zone or a foreign country, the imports or semi-finished products are
exempt from export duties. The products that are imported into Vietnam after
being processed overseas are subject to import duties according to Point d Clause 1
Article 11 of this Decree. The products that are imported into the domestic market
of Vietnam after being processed in the free trade zone are subject to import duties
as prescribed in Clause 2 Article 22 of this Decree.
d) The taxpayer (that has a processing contract) shall report the use of duty-free
imports in accordance with customs laws.
dd) The quantity of imports used for processing the products that have been
exported to a foreign country or a free trade zone that is exempt from import duties
is the quantity of goods imported in for processing the exported products in reality.
Regulations of Point g and Point h of this Clause shall apply to goods imported for
processing products that are exported to another domestically located organization
or individual (outside of free trade zones), and in-country processed imports.
e) Goods imported for further processing, scrap and refuses produced during
processing that are returned to the foreign hirer are exempt from export and import
duties.
Goods imported for further processing, processed products, scrap and refuses
produced during processing that are permitted to be destroyed and have been
destroyed in reality are exempt from import duties.
In case goods are imported for manufacture of outward processing but processed
products are not exported or redundant imports are not exported, the taxpayer shall
register a new customs declaration, declare and pay tax to the customs authority
according to the duty rates and dutiable values of imports at the time of registration
of the customs declaration, except for gifts specified in Article 8 of this Decree.
g) The quantity of imported goods that are used for processing in-country exports
in reality will be exempt from import duties if the in-country exporter has sent the
customs authority a notification (Form No. 22 in Appendix VII hereof) of the
customs declaration of the in-country imports within 15 days from the day on
which customs clearance is granted to the in-country exports.
If the in-country exporter fails to submit the notification to the customs authority
by the deadline, the in-country exporter shall register a new customs declaration,
declare and pay duties on the imports used for processing the in-country exports at
the rates and dutiable values of the imports that are applicable when the new
customs declaration is registered.
If the in-country exporter submits a notification of the customs declaration of the
in-country imports to the customs authority after duties are paid, the paid duties
shall be settled in accordance with regulations of law on settlement of overpaid tax.
h) Goods that are imported in-country for processing according to the customs
declaration shall be exempt from import duties if the importer satisfies the
requirements specified in Point a and Point b of this Clause. If goods that are
imported in-country for other purposes, the in-country importer shall declare and
pay duties at the rates and dutiable values of the in-country imports that are
applicable when the declaration is registered.
In case the in-country importer has paid import duties, used the in-country imports
for manufacture of goods for export and exported the goods to a foreign country or
a free trade zone in reality, paid import duties will be refunded in accordance with
Article 36 of this Decree.
4. Scraps and refuses produced during the processing of exports shall be exempt
from import duties when they are sold domestically. The taxpayer does not have to
follow customs procedures but shall declare and pay VAT, excise tax, environment
protection tax (if any) to the tax authority in accordance with tax laws.
5. Procedures for granting duty exemption are specified in Article 31 of this
Decree.
While following procedures for in-country export of the goods specified in this
Article, in addition to the duty exemption application specified in Article 31 of this
Decree, the in-country exporter shall also submit the document requesting delivery
of goods in Vietnam of a foreign entity: 01 photocopy.”
5. Amendments to Point a Clause 1 of Article 11:
“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:
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 (except
scraps produced during the manufacture or processing of the imports for export),
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 the Government’s Decree No. 146/2017/NDCP.”
6. Amendments to Article 12:
“Article 12. Exemption of duties on goods imported for manufacture of
domestic exports
1. Goods imported for manufacture of domestic exports are exempt from import
duties as prescribed in Clause 7 Article 16 of the Law on Export and import duties,
including:
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;
b) Finished products that are imported for packaging, labeling or attaching to
exports or packaging with exports as a whole;
c) Components and parts imported for repair of exports under warranty;
d) Goods imported as samples that are not traded or used;
dd) Goods imported for manufacture of domestic exports but are permitted to be
destroyed in Vietnam and have been destroyed in reality.
2. Basis for determination of eligibility for duty exemption:
a) The taxpayer has the right to ownership or right to enjoyment of the facility in
Vietnam where domestic exports are manufactured and equipment therein. The
taxpayer has submit the notification of the manufacturing facility and equipment
therein; notification of the hired manufacturer or processor’s manufacturing
facility, the manufacturing or processing contract to the customs authority in
accordance with customs law. In case the notification is not submitted on schedule,
the taxpayer shall only incur administrative penalties for customs offences.
The taxpayer assigns the imports mentioned in Clause 1 of this Article to a third
party that has the right to ownership or right to enjoyment of the facility for
manufacture or processing in the following cases:
a1) The taxpayer that assigns all or part of the imports to a third party within
Vietnam’s territory for manufacture or processing through one or some stages, then
receives the semi-finished products for further processing into finished exports will
be exempt from import duties on the assigned imports.
a2) The taxpayer that assigns all or part of the semi-finished products that are
manufactured by the taxpayer from imports to a third party within Vietnam’s
territory for manufacturing or processing through one or some stages, then receives
the semi-finished products for further processing into exports or receives the
finished products for export will be exempt from import duties on the imports
assigned to the third party for manufacturing of the semi-finished products.
a3) The taxpayer that assigns part of the imports to a third party in Vietnam for
processing into finished products, then receives the finished products for export
will be exempt from import duties on the imports assigned to the third party.
a4) The taxpayer that assigns the imports or semi-finished products that are
entirely manufactured from the imports to a third party for manufacture or
processing in a free trade zone or a foreign country in one of the cases specified in
a.1, a.2, a.3 of this Clause will be exempt from import duties on the imports or
semi-finished products that are entirely manufactured from the imports assigned to
the third party. The products manufactured or processed overseas by the third party
are subject to import duties when they are imported back into Vietnam as
prescribed in Point d Clause 1 Article 11 of this Decree. Products that are
manufactured or processed by the third party are subject to import duties when
they are imported into Vietnam’s domestic market as prescribed in Clause 2
Article 22 of this Decree.
b) The taxpayer that imports goods as prescribed in Clause 1 of this Article and
assigns all of the imports to an organization (third party) in which the taxpayer
holds over 50% charter capital or total ordinary shares for manufacturing or
processing, then receives the products for export will be exempt from import duties
on the assigned imports, even if the third party hires another unit to process one or
some stages. The third party shall have the right to ownership or enjoyment of a
manufacturing or processing facility in Vietnam and equipment therein. The
taxpayer shall submit the notification of the third party’s manufacturing or
processing facility to the customs authority in accordance with customs Law. In
case the taxpayer fails to submit such notification on schedule, the taxpayer shall
only incur administrative penalties for customs offences.
The taxpayer shall also submit the following documents together with the
aforementioned notification:
The Certificate of Enterprise Registration or latest audited financial statement of
the taxpayer and the third party: 01 certified true copy;
The taxpayer’s and third party’s operation charters: 01 certified true copy;
The shareholder register (for joint stock companies) or member register (for
multiple-member limited liability companies) of the taxpayer and the third party:
01 certified true copy.
The taxpayer that assigns all of the imports to a third party in a free trade zone or a
foreign country for manufacturing or processing will be exempt from import duties
on the assigned imports. The products manufactured or processed overseas by the
third party are subject to import duties when they are imported back into Vietnam
as prescribed in Point d Clause 1 Article 11 of this Decree. Products that are
manufactured or processed by the third party in a free trade zone are subject to
import duties when they are imported into Vietnam’s domestic market as
prescribed in Clause 2 Article 22 of this Decree.
c) The taxpayer shall report the use of duty-free imports in accordance with
customs laws.
d) The quantity of imports used for processing the products that have been
exported to a foreign country or a free trade zone that is exempt from import duties
is the quantity of goods imported in for processing the exported products in reality.
Regulations of Points e, g, h of this Clause shall apply to the imports used for
manufacture of products that are exported to another domestically located
organization and individual (outside of free trade zones), in-country exports and incountry imports.
dd) Goods imported for manufacturing, manufactured products, scrap and refuses
produced during manufacturing that are permitted to be destroyed and have been
destroyed in reality are exempt from import duties.
In case goods are imported for manufacture of domestic exports are not used or the
products are not exported, import duties shall not be exempt. In this case the
taxpayer shall register a new customs declaration, declare and pay tax to the
customs authority according to the duty rates and dutiable values of imports at the
time of registration of the customs declaration, except for gifts specified in Article
8 of this Decree.
e) The quantity of imported goods that are used for manufacturing in-country
exports in reality will be exempt from import duties if the in-country exporter has
sent the customs authority a notification (Form No. 22 in Appendix VII hereof) of
the customs declaration of the in-country imports within 15 days from the day on
which customs clearance is granted to the in-country exports.
If the in-country exporter fails to submit the notification to the customs authority
by the deadline, the in-country exporter shall register a new customs declaration,
declare and pay duties on the imports used for manufacturing the in-country
exports at the rates and dutiable values of the imports that are applicable when the
new customs declaration is registered.
If the in-country exporter submits a notification of the customs declaration of the
in-country imports to the customs authority after duties are paid, the paid duties
shall be settled in accordance with regulations of law on settlement of overpaid tax.
g) In-country exports are not exempt from export duties. The in-country exporter
shall register the in-country export declaration, declare and pay export duties at the
rates and values of the in-country exports that are applicable when the declaration
is registered.
h) Goods that are imported in-country for processing according to the customs
declaration shall be exempt from import duties if the importer satisfies the
requirements specified in Point a and Point b Clause 2 Article 10 of this Decree. If
goods that are imported in-country for other purposes, the in-country importer shall
declare and pay duties at the rates and dutiable values of the in-country imports
that are applicable when the declaration is registered.
In case the in-country importer has paid import duties, used the in-country imports
for manufacture of goods for export and exported the goods to a foreign country or
a free trade zone in reality, paid import duties will be refunded in accordance with
Article 36 of this Decree.
3. Procedures for granting duty exemption are specified in Article 31 of this
Decree.
While following procedures for in-country export of the goods specified in this
Article, in addition to the duty exemption application specified in Article 31 of this
Decree, the in-country exporter shall also submit the document requesting delivery
of goods in Vietnam of a foreign entity: 01 photocopy
4. Scraps and refuses produced during the manufacture of exports shall be exempt
from import duties when they are sold domestically. The taxpayer does not have to
follow customs procedures but shall declare and pay VAT, excise tax, environment
protection tax (if any) to the tax authority in accordance with tax laws.”
7. Amendments to Clause 4 of Article 14 and addition of Clause 6 to Article 14:
“Article 14. Exemption of duties on imported fixed assets of entities eligible
for investment incentives
4. The Ministry of Planning and Investment shall establish criteria for
identification of supplies that cannot be domestically manufactured.
Specialized vehicles used in technological line directly serving manufacturing
activities of investment projects shall be identified in the basis of the List or
criteria set out by the Ministry of Science and Technology for identification of
duty-free imports or confirmations of the Ministry of Science and Technology of
specialized vehicles used in technological line directly serving manufacturing
activities of investment projects.
6. Basis for determination of eligibility for duty exemption:
a) The field or business line of the investment project is eligible for investment
incentives or special investment incentives; the investment project is located in one
of the disadvantaged areas or extremely disadvantaged areas specified in Appendix
I and Appendix II of the Government's Decree No. 118/2015/ND-CP and its
amending or replacing documents (if any).
b) The investment project's capital is at least 6.000 billion VND, at least 6.000
billion VND is disbursed within 03 days from the issuance date of the Certificate
of Investment Registration or written approval for investment guidelines, and one
of the following criteria is satisfied: Annual revenue is at least 10.000 billion VND
within 03 years after revenue is generated, or there are more than 3.000 employees
as prescribed in Point c Clause 2 Article 15 of the Law on Investment No.
61/2020/QH14. Import duties exemption mentioned in Clause 1 of this Article
shall be granted on the basis of the project owner’s declaration.
The customs authority that receives the duty-free list shall inspect the disbursement
of capital and fulfillment of the criteria for revenue and employees at the premises
of the project owner in accordance with post-customs clearance inspection
procedures. In case less than 6.000 billion VND is disbursed in 03 years from the
issuance date of the Certificate of Investment Registration or written approval for
investment guidelines but the criterion for total revenue or employees is not
satisfied, the taxpayer is not eligible for import duty incentives prescribed in
Clause 1 of this Article and has to fully declare and pay the amount of duties that
were exempt plus (+) late payment interest in accordance with tax administration
laws.
c) The investment project is located in the rural area and has at least 500
employees (not including part-time employees and employees with employment
contracts of less than 12 months): The time for determination of the number of
employees is after 12 months from the project’s inauguration date. The project
owner shall make the declaration, take responsibility for such declaration, and
notify the customs authority of the project's inauguration date using Form No. 21
in Appendix VII hereof. At least 500 employees must be maintained throughout
the project’s operating period. After the project is officially inaugurated, the
customs authority that receives the duty-free list shall inspect the number of
employees of the project.
If the project has fewer than 500 employees at the inspection time, it will not be
eligible for import duty incentives mentioned in Clause 1 of this Article. The
taxpayer shall fully declare and pay the exempted duties plus (+) late payment
interest in accordance with the tax administration laws.
In case an investment project has at least 500 employees and is located in both
rural and non-rural areas, the number of employees working in the rural area shall
be used as the criterion instead of the number of employees working in the nonurban area.
d) High-tech enterprises, science and technology enterprises, science and
technology organizations defined by regulations of law on high technology,
science and technology.
dd) Investment laws and relevant laws shall apply to identification of eligibility for
investment incentives of other entities specified in the Law on Investment No.
61/2020/QH14.
e) The import duty incentives mentioned in Clause 1 of this Article do not apply to
investment projects specified in Clause 5 Article 15 of the Law on Investment No.
61/2020/QH14.”
8. Amendments to Clause 1 of Article 15:
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 for manufacture of the investment projects
specified in Points a, b, c of this Clause 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.
a) The field or business line of the investment project is eligible for special
investment incentives according to Appendix I of Decree No. 118/2015/ND-CP
and its amending or replacing documents (if any).
b) The investment project is located in an extremely disadvantaged area according
to Appendix II of Decree No. 118/2015/ND-CP and its amending or replacing
documents (if any), or the investment project is one of the projects specified in
Point a and Point c Clause 2 Article 16 of Decree No. 118/2015/ND-CP and its
amending or replacing documents (if any).
c) The investment project is owned by a high-tech enterprise, science and
technology enterprise, science and technology organization defined by regulations
of law on high technology, science and technology.
The manufacture commencement time is the official manufacture time minus (-)
the experimental production time. 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 declare and pay duties on
the amount of imported raw materials, supplies and components that were exempt
from import duties but are not used.”
9. Amendments to Clause 1, Clause 5 of Article 28 and addition of Clause 7,
Clause 8 and Clause 9 to Article 28:
“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
disasters, epidemics and other special incidents that are exempt from export and
import duties as prescribed in Clause 23 Article 16 of the Law on Export and
import duties include:
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;
b) Goods that cannot be domestically manufactured and are imported to serve
recovery from disasters or epidemics are exempt from import duties;
c) Agarwood derived from planted aquilaria trees and python skin obtained
through breeding are exempt from export duties;
d) Unprocessed agricultural products on the List in Appendix VIII hereof that are
invested in, grown by Vietnamese enterprises, households, household businesses
and individuals in provinces of Cambodia that border to Vietnam and imported
through border checkpoints of within customs areas as materials for production in
Vietnam are exempt from import duties.
Unprocessed agricultural products that are purchased or invested in provinces of
Cambodia that do not border Vietnam are not exempt from import duties as
prescribed in this Point.
dd) Exports and imports in other special cases where the Prime Minister decides to
grant exemption of export and import duties on a case-by-case basis and at the
request of the Ministry of Finance.
5. An application for exemption of duties on exports/imports in other special cases
consists of:
a) The written request for exemption of export/import duties by a Ministry,
ministerial agency, the People’s Committee of the province, organization or
individual which specifies the reasons, quantities, categories and values of goods
and the amount for duties to be exempted: 01 original copy;
b) The list of exports/imports (Form No. 04 in Appendix VII hereof): 01 original
copy.
7. Procedures for exemption of duties on goods exported or imported for social
welfare, recovery from disasters, epidemics and other special incidents:
The taxpayer shall submit the application specified in Clause 3, Clause 4, Clause 5
of this Article to the Ministry of Finance. Within 30 days from the receipt of the
satisfactory application, the Ministry of Finance shall verify it and submit a report
together with the list of goods to the Prime Minister for consideration. In other
cases where comments of other ministries and authorities are necessary, the time
limit for verifying the application may be extended but must not last longer than 40
days. Within 15 days from the receipt of the verification report from the Ministry
of Finance, the Prime Minister shall issue an decision on exemption of
export/import duties (Form No. 23 in Appendix VII hereof) or send a written
rejection to the applicant.
The customs authority where export/import procedures are followed shall fulfill
the Prime Minister’s decision.
8. Documentation and procedures for exemption of export duties on agarwood
derived from planted aquilaria trees and python skin obtained through breeding:
The same documents and procedures specified in Article 31 of this Decree. For
python skin obtained through breeding, the following documents are also required:
a) The certificate of registration of breeding facility for wild animals issued by the
local forest protection authority or an authority appointed by the Ministry of
Agriculture and Rural Development: 01 photocopy, which must be with the
original copy presented for comparison during the first export shipment;
b) The written confirmation of quantity of slaughtered captive-bred pythons issued
by the local forest protection authority for every export: 01 photocopy with the
original copy presented for comparison.
9. Procedures for exemption of duties on unprocessed agricultural products
invested in or grown in Cambodia and imported into Vietnam:
e) The taxpayer shall annually submit the application for registration of the dutyfree list through the electronic data processing system to the Customs Department
of the province that borders Cambodia. Physical documents shall be submitted to
the Customs Department of the province that borders Cambodia in accordance with
Article 30 of this Decree.
In addition to the documents notifying the duty-free list specified in Clause 3
Article 30 of this Decree, the taxpayer shall also submit the following documents:
A certification of investment permission issued by a competent authority in
Cambodia where the Vietnamese enterprise makes investment: 01 photocopy
enclosed with 01 Vietnamese translation bearing the enterprise’s seal;
The contract or agreement with the Cambodian party on investment assistance,
farming and receiving agricultural products which specifies the amount of money
and goods invested in each field, corresponding quantities, categories and value of
the agricultural products to be harvested: 01 photocopy with the original copy
presented for comparison;
Documents relevant to the investment assistance, farming in the Cambodia’s
province that borders Vietnam (if any): 01 photocopy, which must be with the
original copy presented for comparison during the first import shipment.
b) On the basis of the duty-free list submitted to the customs authority, the
taxpayer shall follow the procedures for granting duty exemption are specified in
Article 31 of this Decree.
The customs authority shall compare the duty-free list registration application, the
list of households, household businesses and individuals that provide investment
assistance or farm in Cambodia provinces that border Vietnam, which is annually
published by the People’s Committee of their provinces, with the actual imports to
decide whether to grant exemption of import duties on each import shipment.
The People’s Committees of provinces bordering Cambodia shall annually publish
lists of households, household business, resident individuals that provide
investment assistance or farm in Cambodia provinces that border Vietnam
according to Form No. 11 in Appendix VII hereof on their websites and send them
to Customs Departments of provinces and Sub-departments of Customs
responsible for the checkpoints in the bordering provinces. In case of changes to
criteria in the published documents, revising documents must be issued.”
10. Addition of Article 28a after Article 28:
“Article 28a. Conditions for customs supervision and inspection and
application for tax policies on exporting processing enterprises (EPE) that are
free trade zones (FTZ)
1. Conditions for customs supervision and inspection of an EPE that is a FTZ
include:
a) There are hard fences that separate the EPE from the outside; there are
gates/doors that are the only ways for goods to enter and leave the EPE.
b) There are surveillance cameras at the entrances and exits where goods are stored
throughout the day (24/24 hours, including days off and holidays); images
recorded by these cameras shall be transmitted to the supervisory customs
authority of the EPE and retained at the EPE for at least 12 months.
The Director of the General Department of Customs shall prescribe the format of
surveillance camera data to be exchanged between customs authorities and EPEs
mentioned in Point b of this Clause.
c) There software for management of duty-free goods of the EPE serving
preparation of reports on receipt, discharge, inventory and use of imports required
by customs laws.
2. Procedures for inspecting and confirming fulfillment of conditions for customs
supervision and inspection EPEs and investors in EPE projects.
a) In case the investor applies for the Certificate of Investment Registration for a
new project (or a written confirmation by an investment registration authority if the
Certificate of Investment Registration is not required):
The investor shall submit 01 written declaration of fulfillment of the conditions for
customs supervision and inspection specified in Clause 1 of this Article (Form No.
24 in Appendix VII hereof) to the investment registration authority together with
the application for the Certificate of Investment Registration (or application for the
written confirmation by an investment registration authority if the Certificate of
Investment Registration is not required).
The investment registration authority shall send an enquiry to a competent customs
authority about fulfillment of customs supervision and inspection specified in
Clause 1 Article 30 of the Government’s Decree No. 82/2018/ND-CP on
management of industrial zones and economic zones (hereinafter referred to as
Decree No. 82/2018/ND-CP) and its amending or replacing documents (if any),
and fulfillment of regulations of this Decree together with the investor’s
application (01 original copy).
Within 03 working days from the receipt of documents from the investment
registration authority, in consideration of the investor’s application and declaration,
the customs authority shall consider issuing a confirmation of fulfillment of
conditions for customs supervision and inspection (Form No. 24 in Appendix VII
hereof) and sending it to the investment registration authority.
b) In case the investor applies for issuance of revision of the Certificate of
Investment Registration (if any), or a written confirmation by an investment
registration authority if the Certificate of Investment Registration is not required
for the project’s expansion:
The investor shall submit 01 written declaration of fulfillment of the project’s
expansion of the conditions for customs supervision and inspection specified in
Clause 1 of this Article (Form No. 24 in Appendix VII hereof) to the investment
registration authority together with the application for the Certificate of Investment
Registration (if any), or the application for the written confirmation by an
investment registration authority if the Certificate of Investment Registration is not
required.
The investment registration authority shall send an enquiry to a competent customs
authority about the fulfillment of customs supervision and inspection of the
project’s expansion as specified in Clause 1 Article 30 of Decree No. 82/2018/NDCP and its amending or replacing documents (if any), and fulfillment of regulations
of this Decree together with the investor’s application (01 original copy).
Within 03 working days from the receipt of documents from the investment
registration authority, in consideration of the investor’s application and declaration,
the customs authority shall consider issuing a confirmation of fulfillment of
conditions for customs supervision and inspection (Form No. 24 in Appendix VII
hereof) and sending it to the investment registration authority.
c) In case of conversion of an enterprise into an EPE:
In consideration of the investor's request, the investment registration authority shall
send an enquiry to a competent customs authority about the fulfillment of customs
supervision and inspection as specified in Clause 1 Article 30 of Decree No.
82/2018/ND-CP and its amending or replacing documents (if any), and fulfillment
of regulations of this Decree.
Within 10 working days from the receipt of documents from the investment
registration authority, the customs authority shall carry out an inspection of
conditions for customs supervision and inspection according to Clause 1 of this
Article and send a document (Form No. 26 in Appendix VII hereof) to the
investment registration authority about whether these conditions are fulfilled.
3. Investors in investment projects (including new projects and projects’
expansions) may apply FTZ tax policies prescribed by the Law on Export and
Import Duties from the day on which the EPE mentioned in the Certificate of
Investment Registration, the revised Certificate of Investment Registration or the
investment registration authority’s written confirmation if the Certificate of
Investment Registration is not required.
Inspection of fulfillment of conditions for customs supervision and inspection
serving application of FTZ tax policies shall be carried out in accordance with
Clause 4, Clause 5 and Clause 6 of this Article.
4. Inspection of fulfillment of conditions for customs supervision and inspection of
EPEs (including enterprises having new projects and projects’ expansions):
a) At least 30 days before the official inauguration date of the EPE specified in the
Certificate of Investment Registration, the revised Certificate of Investment
Registration (if any) or the investment registration authority’s written confirmation
in case the Certificate of Investment Registration is not required, or the investment
registration authority’s confirmation that the EPE’s is officially inaugurated later
than the date specified in the aforementioned documents, the EPE shall send a
notification of fulfillment of the conditions for customs supervision and inspection
specified in Clause 1 of this Article (Form No. 25 in Appendix VII hereof) to the
supervisory Sub-department of Customs of the EPE.
In case official inauguration date of the EPE is not specified in its Certificate of
Investment Registration, the revised Certificate of Investment Registration (if any)
or the investment registration authority’s written confirmation if the Certificate of
Investment Registration is not required, does not specify the, it shall be the date
notified by the EPE to the customs authority.
b) Within 10 working days from the receipt of the EPE’s notification, its
supervisory Sub-department of Customs shall complete the inspection of
fulfillment of conditions for customs supervision and inspection specified in
Clause 1 of this Article and send a written notification to the EPE (Form No. 26 in
Appendix VII hereof) specifying whether these conditions are fulfilled or not. In
case these conditions are not fulfilled according to the confirmation, the EPE must
fulfill these conditions within 01 year from the day on which the first confirmation
is issued by its supervisory Sub-department of Customs.
c) When the conditions specified in Clause 1 of this Article are fulfilled, the EPE
shall send a written request for inspection of the fulfillment of these conditions
(Form No. 25 in Appendix VII hereof) to its supervisory Sub-department of
Customs. Within 10 working days from the receipt of the EPE’s request, the Subdepartment of Customs shall carry out the inspection and send a notification (form
No. 26 in Appendix VII hereof) of whether these conditions are fulfilled.
The EPE may make multiple improvements to the conditions specified in Clause 1
of this Article within 01 year from the day on which the first confirmation is issued
by its supervisory Sub-department of Customs.
d) If the EPE fails to submit the notification within 01 year from the issuance date
of the first confirmation of the Sub-department of Customs or fails to fulfill the
conditions for customs supervision and inspection specified in Clause 1 of this
Article, it will not be eligible for FTZ tax policies and has to fully pay the taxes,
late payment interest and fines relevant to the imports to which FTZ tax policies
were applied which accumulate from the issuance date of the Certificate of
Investment Registration, the revised Certificate of Investment Registration or the
investment registration authority’s written confirmation if the Certificate of
Investment Registration is not required regarding the new investment project or
project’s expansion that fails to satisfy the conditions for customs supervision and
inspection specified in Clause 1 of this Article.
In case the EPE fulfills the conditions for customs supervision and inspection
specified in Clause 1 of this Article after 01 year and submits the notification to its
supervisory Sub-department of Customs in accordance with Point c of this Clause,
FTZ tax policies shall be applied from the day on which the Sub-department of
Customs issues the confirmation of fulfillment of the conditions for customs
supervision and inspection specified in Clause 1 of this Article.
5. Inspection of fulfillment of conditions for customs supervision and inspection by
EPEs that are granted the Certificate of Investment Registration, the revised
Certificate of Investment Registration (if any), or the investment registration
authorities’ written confirmations if the Certificate of Investment Registration is
not required, before the effective date of this Decree and are operating, including
those whose fulfillment of conditions for customs supervision and inspection has
been confirmed by customs authorities before the effective date of this Decree:
a) Within 01 years from the effective date of this Decree, the EPE shall fulfill the
conditions for customs supervision and inspection specified in Clause 1 of this
Article. After such conditions are fulfilled, the EPE shall send a notification (Form
No. 25 in Appendix VII hereof) to its supervisory Sub-department of Customs.
b) Within 10 working days from the receipt of the EPE’s notification, its
supervisory Sub-department of Customs shall complete the inspection of
fulfillment of conditions for customs supervision and inspection specified in
Clause 1 of this Article and send a written confirmation to the EPE (Form No. 26
in Appendix VII hereof) specifying whether these conditions are fulfilled or not. In
case these conditions are not fulfilled according to the confirmation, the EPE must
fulfill these conditions within 01 year from the effective date of this Decree.
c) When the conditions specified in Clause 1 of this Article are fulfilled, the EPE
shall send a written request for inspection of the fulfillment of these conditions
(Form No. 25 in Appendix VII hereof) to its supervisory Sub-department of
Customs. Within 10 working days from the receipt of the EPE’s request, the Subdepartment of Customs shall carry out the inspection and send a notification (form
No. 26 in Appendix VII hereof) of whether these conditions are fulfilled.
The EPE may make multiple improvements to the conditions specified in Clause 1
of this Article within 01 year from the effective date of this Decree.
d) If the EPE fails to submit the notification Form No. 25 in Appendix VII hereof
within 01 year from the effective date of this Decree or fails to fulfill the
conditions for customs supervision and inspection specified in Clause 1 of this
Article, it will not be eligible for FTZ tax policies from the expiration date of this
1-year time limit.
In case the EPE fulfills the conditions for customs supervision and inspection
specified in Clause 1 of this Article after 01 year and submits the notification to its
supervisory Sub-department of Customs in accordance with Point c of this Clause,
FTZ tax policies shall be applied from the day on which the Sub-department of
Customs issues the confirmation of fulfillment of the conditions for customs
supervision and inspection specified in Clause 1 of this Article.
6. EPEs that have been granted the Certificate of Investment Registration, the
revised Certificate of Investment Registration (if any), or the investment
registration authorities’ written confirmations if the Certificate of Investment
Registration is not required, before the effective date of this Decree and are under
construction, including those whose fulfillment of conditions for customs
supervision and inspection has been confirmed by customs authorities as
prescribed in Clause 4 of this Article.
7. In the cases specified in Clause 5 and Clause 6 of this Article where FTZ tax
policies are not applied for the period from the effective date of the Certificate of
Investment Registration, the revised Certificate of Investment Registration (if any),
or the investment registration authority’s written confirmation if the Certificate of
Investment Registration is not required, to the date before the issuance date of the
customs authority’s confirmation of fulfillment of conditions for customs
supervision and inspection as prescribed in Clause 1 Article 30 of Decree No.
82/2018/ND-CP and regulations of this Decree, the paid duties shall be settled in
accordance with regulations of tax laws on settlement of overpaid tax after the
enterprise has fulfilled the conditions for customs supervision and inspection
specified in Clause 1 of this Article.”
11. Amendments to Clause 2, Clause 3 and Clause 4 of Article 29:
“Article 29. Exemption of duties on goods of low values and goods sent by post
or express delivery service
2. Imports sent by post or 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 total duty
payable exceeds VND 100.000, the entire shipment shall be subject to import
duties.
3. A shipment whose customs value is not exceeding VND 500.000 or the total
export or import duty on which is not exceeding 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 post or express delivery service.
4. The application for duty exemption is the customs dossier defined by customs
law.”
12. Addition of Article 29a after Article 29:
“Article 29a. Exemption of duties on exports and imports under international
treaties
1. Exports and imports exempt from export and import duties under international
treaty to which Vietnam is a signatory.
2. Basis for determination of eligibility for duty exemption:
a) Categories and quotas of goods specified in the international treaty;
b) The written confirmation of the authority that proposes conclusion of or
accession to the international treaty (hereinafter referred to as “proposing
authority”), the line management authority in case the international treaty does not
specify the categories and quotas of duty-free goods.
In case the proposing authority is not the line management authority, the written
confirmation issued by the proposing authority shall apply.
3. Procedures for confirmation in case the international treaty does not specify the
categories and quotas of duty-free goods
a) The organization and individual that uses the duty-free goods shall submit a
written request to the proposing authority or line management authority for
confirmation of categories and quotas of duty-free goods (Form No. 13 in
Appendix VII hereof).
b) Within 15 days from the receipt of the aforementioned request, the proposing
authority, the line management authority shall issue a written confirmation of the
categories and quotas of duty-free goods and send it to the applicant, or issue a
written rejection if the goods are not conformable with the international treaty.
4. Registration of duty-free list
Before registering the first customs declaration of duty-free exports/imports, the
exporter/importer shall send register the duty-free list with the customs authority.
a) The application for registration of the duty-free list consists of:
- The registration form No. 05 in Appendix VII hereof: 01 original copy;
- The duty-free list sent via the electronic data processing system of customs
authority. In case this system is not functional, the exporter/importer shall submit
02 original copies of the duty-free list (Form No. 06) and 01 original copy of Form
No. 07 in Appendix VII hereof.
In case the equipment has to be divided into multiple export/import shipments and
thus deduction is not possible at the time of export/import (hereinafter referred to
as “combination or assembly line”), the exporter/importer shall submit 02 original
copies of Form No. 06 in Appendix VII hereof.
The duty-free list that is conformable with the international treaty or the written
confirmation of categories and quotas of duty-free goods issued by the proposing
authority or line management authority;
- The international treaty if it specifies the categories and quotas of duty-free
goods: 01 photocopy;
- The written confirmation of categories and quotas of duty-free goods mentioned
in Point b Clause 3 of this Article: 01 photocopy with the original copy presented
for comparison.
b) The locations where the duty-lists are registered or revised; responsibility of the
customs authorities that receive duty-free lists; responsibility of submitting entities
are specified in Clause 4, Clause 5, Clause 6 and Clause 7 Article 30 of this
Decree.
c) In case the duty-free goods are exported/imported by the exporter/importer’s
main contractor or subcontractor or a finance lease company, such contractor or
finance lease company may use the duty-free list notified to the customs authority
by the exporter/importer.
5. Procedures for granting duty exemption are specified in Article 31 of this
Decree.”
13. Amendments to Point b and Point k of Clause 3, Point dd of Clause 7 Article
30:
“Article 30. Registration of duty-free list of imports
3. An application for the duty-free list registration consists of:
b) The duty-free list sent via the electronic data processing system of customs
authority. In case this system is not functional, the project owner shall submit 02
original copies of the duty-free list (Form No. 06) and 01 original copy of Form
No. 07 in Appendix VII hereof.
In case the equipment has to be divided into multiple import shipments and thus
deduction is not possible at the time of export/import (hereinafter referred to as
“combination or assembly line”), the project owner shall submit 02 original copies
of Form No. 06 in Appendix VII hereof;
k) The contract for fabrication of the equipment, components or parts thereof for
the goods specified in Point a Clause 11, Point b Clause 15, Point a Clause 16
Article 16 of the Law on Export and Import Duties: 01 photocopy.
In case the documents specified in this Clause are sent by the authorities in the
form of electronic data through the National Single-window Information Portal, the
project owner is not required to submit them when registering the duty-free list
with the customs authority.
7. The project owner shall:
dd) Submit reports on use of duty-free imports as prescribed in Article 31a of this
Decree.”
14. Amendments to Point e of Clause 2, addition of Point h to Clause 2, Point c to
Clause 3 and Clause 5 of Article 31:
Article 31. Documents and procedures for duty exemption while following
customs procedures
2. In addition to 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:
e) A written confirmation of the Ministry of Science and Technology for vehicles
specified in Clause 11, Clause 15, Clause 16 of Article 16 of the Law on Export
and Import Duties: 01 original copy;
dd) The Prime Minister’s Decision on duty exemption in the cases specified in
Points a, b, dd Clause 1 Article 28 of this Decree: 01 photocopy with the original
copy presented for comparison.
3. Procedures for granting duty exemption:
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/imported accordingly.
In case of import of a duty-free combination or assembly line, the taxpayer shall
follow customs procedures at the customs authority responsible for the area where
the equipment is installed. When registering the customs declaration, the taxpayer
shall provide details about the goods on the declaration. If details about the goods
cannot be provided, the taxpayer shall prepare a list of imports according to Form
No. 04 in Appendix VIIa hereof via the electronic data processing system or
according to Form No. 15 in Appendix VII hereof and enclose it with the customs
declaration. Within 15 days from the day on which the last shipment of the
combination or assembly line is imported, the taxpayer shall register the duty-free
list with the customs authority according to Form No. 05 in Appendix VIIa hereof
via the electronic data processing system or according to Form No. 16 of Appendix
VII hereof.
5. Procedures for exemption of import duties in special cases
a) In case a taxpayer is granted exemption of import duties on goods that are
imported as fixed assets of the projects specified in Article 16 of the Law on
Export and Import Duties but does not import the goods and is permitted to
received duty-free goods that are imported by another organization or individual
and transferred in Vietnam, the taxpayer shall register a new customs declaration
of these goods and will be granted exemption of import duties, provided the
transfer price is not inclusive of import duties. The transferor is not required to pay
the exempted import duties.
b) Organizations and individuals that are entrusted to import or awarded contracts
for import of goods to provide for the entities specified in Article 16 of the Law on
Export and Import Duties will be granted exemption of import duties on these
goods, provided the goods prices under the entrustment or successful bids are not
inclusive of import duties.
c) Finance lease companies that import goods for lease by the entities specified in
Article 14, Article 16, Article 17, Article 19, Article 25 of this Decree will be
granted exemption of import duties provided the lease prices are not inclusive of
import duties. In case the imports are not used for the duty-free purposes, the
finance lease company shall register a new customs declaration and pay tax upon
registration of the new customs declaration. Otherwise, the customs authority shall
impose tax as per regulations.
d) In case of transfer of all or part of a project that is eligible for investment
incentives to another organization or individual (the transferee), the project owner
shall complete and send Form No. 06 in Appendix VIIa hereof or Form No. 17 in
Appendix CII to the customs authority to which the duty-free list is registered
before the transfer. Payment of exempted import duties on the goods transferred
together with the project is not required. The transferee shall register a new
customs declaration of the transferred goods and will be eligible for exemption of
import duties if the following conditions are fully satisfied: At the time of transfer,
the project is still eligible for investment incentives; the transfer prices are not
inclusive of import duties; the transferee is the owner of the transferred project
according to the revised Certificate of Investment Registration or an equivalent
document.
The customs authority that receives the duty-free list from the transferor shall
remove it from the System or revoke the physical list and the monitoring sheet of
the transferor; receives the duty-free list of the goods that are transferred but not
completely imported.
In case the project is entirely transferred but the project owner has not completely
imported the goods on the duty-free list, or the project is partially transferred but
the project owner has not completely import the goods of the transferred part on
the duty-free list, the transferee shall register the duty-free list of the goods that
have not been completely imported of the transferred project or part of project.
In case the project is partially transferred but the project owner has not completely
imported the goods of on the duty-free list of the untransferred part of the project,
the project owner shall register such duty-free list of the goods.
dd) Regarding duty-free goods that are imported as fixed assets of an project which
is eligible for investment incentives but are used for another project that is also
eligible for investment incentives of the same owner, the project owner shall
register a new customs declaration of the transferred duty-free goods if the
following requirements are satisfied: prices of the transferred goods are not
inclusive of import duties; the goods are suitable for the business lines and scale of
the receiving project; regulations on fixed assets are complied with; the goods are
included in the duty-free list of the receiving project which has been registered
with the customs authority.
Quantity of received goods shall be deducted from the quotas on the duty-free list
that has been registered with the customs authority. The owner of the transferring
project may import an additional quantity of goods to replace the transferred
goods. The owner of the transferring project shall register an additional duty-free
list in accordance with regulations of Clause 5 Article 30 of this Decree.
e) Imports that have to be destroyed and have been destroyed in reality in the cases
specified in Article 16 of the Law on Export and Import Duties (except for those
specified in Clause 6 and Clause 7 of Article 16) are exempt from import duties.
The destruction shall be carried out in accordance with relevant regulations of law
and directly supervised by customs officials. Before destruction, the taxpayer shall
submit a written notification to the customs authority specified in the reasons for
destruction, names of the goods to be destroyed, time and location of destruction
(01 original copy); the written permission for destruction issued by the line
management authority or Department of Natural Resources and Environment (01
photocopy with the original copy presented for comparison).
Within 30 days from the destruction date, the taxpayer shall submit the following
documents to the customs authority where the import declaration is registered: the
written confirmation of destroyed goods which bears the full name, signature and
seal of the enterprise whose goods are destroyed; full names and signatures of the
supervising customs official and the persons assigned by the enterprise’s Director
to supervise the destruction process; signatures of representatives of relevant
authorities (if any) (01 photocopy with the original copy presented for
comparison)."
15. Addition of Article 31a after Article 31:
“Article 31a. Notification and inspection of use of duty-free imports
1. Notification of use of duty-free imports
e) Notifying entities:
The project owner shall submit the notification of use of duty-free goods according
to Form No.07 in Appendix VIIa hereof via the electronic data processing system
or Form No. 18 in Appendix VII hereof to the customs authority that receives the
duty-free list (in case registration of the duty-free list is mandatory).
b) Time and deadline for notification:
Every year within 90 days from the end of the fiscal year, the project owner shall
submit the notification of use of duty-free goods in the fiscal year to the customs
authority that receives the duty-free list until the entire project is shut down or all
goods have been exported from Vietnam or when the duty-free imports are
repurposed and sold domestically, or destroyed.
In the cases of import duty exemption specified in Article 15 and Article 23 of this
Decree, the notification of use of duty-free goods shall be submitted annually for
05 years from the official inauguration date of the project. Within 30 days from the
end of this 5-year period, the project owner shall register a new customs
declaration, declare and pay tax on the duty-free raw materials, supplies and
components that remain after 05 years.
2. In case of import of raw materials and supplies for fabrication according to Point
a Clause 11, Point b Clause 15, Point a Clause 16 Article 16 of the Law on Export
and Import Duties:
a) Within 30 days from the fabrication of equipment, component or part is
complete, the project owner shall inform the customs authority that receives the
duty-free list of the completion of fabrication according to Form No. 08 in
Appendix VIIa hereof via the electronic data processing system or Form No. 19 in
Appendix VII hereof. If the imported goods are not completely used, within 30
days from the completion date of fabrication, the project owner shall register a new
customs declaration, declare and pay tax while doing so.
b) Within 60 days from the receipt of the project owner’s notification mentioned in
Point a of this Clause, the customs authority that receives the duty-free list shall
carry out an inspection at the project owner’s premises in order to determine the
quantity of imports that are actually used for fabrication of equipment or parts
thereof. In case the customs authority finds that these imports are not completely
used or are repurposed without registering a new customs declaration, the customs
authority shall impose tax as per regulations.
c) The project owner shall submit the notification of use of imports for fabrication
prescribed in Clause 1of this Article. From the year in which the fabrication is
completed, the project owner shall submit notifications of use of fabricated
products.
3. In case of duty-free import of a combination or assembly line which has to be
divided into more than one shipment and quota deduction is not possible as
prescribed in Clause 1 of this Article:
a) Within 30 days from the day on which the installation of the combination or
assembly line is completed, the project owner shall submit a notification to the
customs authority that receives the duty-free list according to Form No. 09 in
Appendix VIIa hereof via the electronic data processing system or Form No. 20 in
Appendix VII hereof. If the imports are not completely used, within 30 days from
the completion of installation, the project owner shall register a new customs
declaration, declare and pay tax while doing so.
b) Within 60 days from the receipt of the project owner’s notification, the customs
authority that receives the duty-free list shall carry out an inspection at the project
owner’s premises in order to determine the quantity of duty-free imports that are
actually used for installation of the combination or assembly line. In case the
customs authority finds that these imports are not completely used or are
repurposed without registering a new customs declaration, the customs authority
shall impose tax as per regulations.
c) The project owner shall submit the notification of use of imports for installation
of the combination or assembly line prescribed in Clause 1of this Article. From the
year in which the installation is completed, the project owner shall submit
notifications of use of the installed products.
4. Inspection of use of duty-free imports
A) The customs authority with which the duty-free list was registered shall carry
out inspection of use of duty-free goods at the project owner’s premises under risk
management principles.
b) Inspections shall be carried out according to post-customs clearance inspection
procedures.”
16. Amendments to Clause 2 and Point c Clause 3 of Article 32:
“Article 32. Export and import duty reduction
2. An application for duty reduction consists of:
a) The written request form sent via the electronic data processing system of the
customs authority according to Form No. 3 in Appendix VIIa or Form No. 08 in
Appendix VII hereof: 01 original copy;
b) The insurance contract or insurance payout notice issued by the insurer (if any),
or the insurer’s confirmation if the insurance contract does not cover tax
indemnification; the contract or agreement on compensation issued by the shipping
company in case the damage is caused by the shipping company (if any): 01
photocopy;
c) A confirmation of damage issued by a local authority e.g. confirmation of
conflagration issued by the local fire department, confirmation issued by one of the
following bodies: police authority of the commune, the People’s Committee of the
commune; management board of the industrial zone, export processing zone or
economic zone; border checkpoint management board; port authority, airport
authority where the force majeure event (natural disaster, epidemic, accident)
occurs and causes damage to the imported materials or equipment: 01 original
copy.
d) Confirmation of loss or damage of goods issued by an assessment service
provider: 01 original copy.
3. Procedures and authority for granting duty reduction:
c) If the application for duty reduction is submitted after customs procedures are
completed:
Within 30 days from the receipt of the satisfactory application, the Customs
Department of the province shall compile a dossier, verify the information, inspect
the accuracy and adequacy of the application and issue a duty reduction decision
according to Form No. 12 in Appendix VII hereof or inform the taxpayer of their
ineligibility for duty reduction and the duty payable. If the application is not
satisfactory, the customs authority shall inform the taxpayer within 03 working
days from the day on which the application 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.”
17. Amendments to Point a Clause 1, Point b Clause 2 of Article 34:
“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 cancelled:
a) Imports that have to be re-exported and returned to their owners; Imports that
have to be 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;
2. An application for duty refund consists of:
b) The VAT invoice or sales invoice prescribed by regulations of law on invoices
or commercial invoice: 01 photocopy."
18. Amendments to Point a Clause 2 Article 33, Point a Clause 2 Article 34, Point
a Clause 2 Article 35, Point a Clause 5 Article 36, Clause 3 Article 37:
“a) The written request for refund of export/import duty on exports/imports sent
via the electronic data processing system of the customs authority according to
Form No. 01 in Appendix VIIa, or the written request for refund of export/import
duty according to Form No. 09 in Appendix VII hereof: 01 original copy."
19. Addition of Article 37a after Article 37:
“Article 37a. Cancellation of export and import duties
1. Cases of duty cancellation:
a) Unpaid duties on goods that are eligible for duty refund prescribed in Article 33,
Article 34, Article 35, Article 36 and Article 37 of this Decree shall be cancelled.
b) Duties on goods that are exempt from export and import duties prescribed in
Article 33 and Article 34 of this Decree shall be cancelled.
2. Application for duty cancellation:
The written request for cancellation of export/import duty sent via the electronic
data processing system of the customs authority according to Form No. 02 in
Appendix VIIa, or the written request for cancellation of export/import duty
according to Form No. 09a in Appendix VII hereof: 01 original copy. In the cases
specified in Point a Clause 1 of this Article, the taxpayer shall submit the tax
refund documents in addition to the written request for duty cancellation.
3. The application for duty cancellation shall be submitted to the customs authority
where the export/import procedures are followed while following the customs
procedures or after customs clearance has been granted.
4. Procedures for submission and processing of application for duty cancellation:
a) In the cases specified in Point a Clause 1 of this Article, the application for duty
cancellation shall be submitted and processed as if an application for duty refund.
b) In the cases specified in Point b Clause 1 of this Article:
In case the first export/import declaration of the shipment does not have refundable
duty and the taxpayer submits the application for duty cancellation while following
customs procedures, the customs authority shall issue a decision on cancellation of
export and import duties on the goods that are re-imported and re-exported before
the deadline for completion of customs procedures if there is ample basis for
determination that the imported goods are the previously exported goods, or the
exported goods are the previously imported goods.
In case the first export/import declaration of the shipment does not have refundable
duty and the taxpayer submits the application for duty cancellation while following
customs procedures, the customs authority shall issue a decision on cancellation of
export and import duties on the goods that are re-imported and re-exported before
the deadline for completion of customs procedures if there is ample basis for
determination that the imported goods are the previously exported goods, or the
exported goods are the previously imported goods."
20. The following words and phrases are changes:
a) The word “or” in Point b Clause 3 Article 8 is replaced with “and”;
b) The phrase “is determined when making a statement of raw materials, supplies
and components imported for processing exports” in Point b Clause 2 Article 11 is
replaced with “is determined when making a statement of raw materials, supplies
and components imported for processing imports”;
c) The phrase “Clause 2” in Point a Clause 4 and Point a Clause 6 of Article 30 is
replaced with “Clause 3”;
d) The phrase “01 certified true copy" in Clause 3 Article 7, Clause 3 Article 8,
Clause 4 Article 19, Clause 3 Article 20, Clause 3 Article 26, Clause 3 Article 28,
Clause 3 Article 30, Clause 2 Article 31, Clause 2 Article 32, Clause 2 Article 33,
Clause 2 Article 34, Clause 2 Article 35, Clause 5 Article 36 is replaced with “01
photocopy”;
dd) The phrase “for development of” in Point b Clause 4 Article 19 and “serving”
in Point c Clause 4 Article 19 are replaced with “directly used for";
e) The phrase “Decision No. 219/2009/QD-TTg” in Clause 2 Article 38 is replaced
with “Decision No. 119/2009/QD-TTg.”
21. Amendments to Clause 2 and Clause 5 of Article 40:
“Article 40. Responsibility for implementation
2. The Ministry of Science and Technology shall promulgate the list or criteria for
identification of duty-free imports or give confirmations under decisions of the
Prime Minister of vehicles specialized for import prescribed Clause 11, Clause 15,
Clause 16 Article 16 of the Law on Export and Import Duties and the imports
prescribed in Clause 21 Article 16 of the Law on Export and Import Duties, except
for those specified in Clause 1 of this Article.
5. The Ministry of Information and Communications shall provide for
identification of imported raw materials, supplies and components that are eligible
for import duty exemption when directly serving manufacture of information
technology products, digital contents or software.”
Article 2. Organization of implementation
1. This Decree comes into force from April 25, 2021.
2. Abolished and replaced regulations:
a) The following regulations of Decree No. 134/2016/ND-CP are annulled:
Point c Clause 3 Article 8, Point b Clause 4 Article 20, Clause 1 Article 29 of
Decree No. 134/2016/ND-CP;
The following phrases: “(if duty exemption is granted before customs procedures
are completed) or Form 03b in Appendix VII enclosed herewith (if duty exemption
is applied for after customs procedures is completed)” in Point a Clause 3 of
Article 20; “If duty exemption is applied for before customs procedures are
completed” in Point a Clause 4 of Article 20; “and Clause 2 Article 8" in Clause 4
of Article 31; “If the goods are eligible for duty refund but duty has not been paid
or is cancelled as prescribed in Article 19 of the Law on Export and Import Duties,
documents and procedures are the same as those for duty refund“ in Clause 3
Article 33, Clause 3 Article 34, Clause 3 Article 35, Clause 6 Article 36, Clause 4
Article 37.
b) The following Circulars are annulled:
Circular No. 90/2011/TT-BTC dated June 20, 2011 on exemption of export duties
on agarwood derived from planted aquilaria trees; Circular No. 201/2012/TT-BTC
dated November 16, 2012 of the Ministry of Finance on exemption of import
duties on unprocessed agricultural products invested in or farmed by Vietnamese
entities in Cambodia when they are imported into Vietnam; Circular No.
81/2013/TT-BTC dated June 19, 2013 on amendments to Circular No.
201/2012/TT-BTC dated November 16, 2012; Circular No. 116/2013/TT-BTC
dated August 20, 2013 on exemption of export duties on python skin obtained
through breeding.
c) Article 5 of Circular No. 83/2016/TT-BTC dated June 17, 2016 providing
guidelines for regulations on investment incentives of the Law on Investment No.
67/2014/QH13 and the Government’s Decree No. 118/2015/ND-CP elaborating
the Law on Investment is annulled.
d) Appendix VII of Decree No. 134/2016/ND-CP is replaced with Appendix VII
enclosed with this Decree.
dd) Appendix VIIa and Appendix VIII enclosed with this Decree are added.
3. Transition clauses on import duty incentives for entities eligible for import duty
exemption specified in Clause 9 Article 1 of this Decree:
Projects of investment or farming of agriculture products on the list in Appendix
VIII hereof that are eligible for tax incentives as prescribed by regulations of law
on exports and import duties before the effective date of this Decree are still
eligible for import duty exemption prescribed in Clause 9 Article 1 of this Decree
for the remaining effective period of the Certificate of Overseas Investment issued
by competent authorities.
In case the Cambodia’s adjustment of its administrative divisions causes the name
of bordering province of Cambodia on the Certificate of Overseas Investment of an
enterprise eligible for duty exemption prescribed in Clause 9 Article 1 of this
Decree to be excluded from the list of Cambodia’s provinces bordering Vietnam,
the enterprise is still eligible for import duty exemption as prescribed in Clause 9
Article 1 of this Decree for the remaining effective period of the Certificate of
Overseas Investment issued by the competent authority.
4. Transition clauses on in-country exports and imports:
The duty rates on in-country exports and imports prescribed in Clause 1 Article 1
of this Decree shall be applied from the effective date of the Law on Export and
Import Duties No. 107/2016/QH13.
5. Transition clauses on duty exemption procedures:
a) In case a duty-free list is approved by the Prime Minister in accordance with
Article 29 of Decree No. 134/2016/ND-CP before the effective date of this Decree,
the taxpayer may keep using such duty-free list until the goods specified in therein
are completely imported;
b) Unexpired quota books issued by competent authorities before the effective date
of this Decree may be used until their expiration dates or increase/decrease in the
payroll (of organizations).
6. 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./.

ON BEHALF OF THE GOVERNMENT THE PRIME MINISTER Nguyen Xuan Phuc

 

Download English: DECREE No. 18/2021/ND-CP AMENDMENTS TO SOME ARTICLES OF THE GOVERNMENT’S DECREE NO. 134/2016/ND-CP DATED SEPTEMBER 01, 2016 ELABORATING THE LAW ON EXPORT AND IMPORT DUTIES

Download Vietnamese: DECREE No. 18/2021/ND-CP AMENDMENTS TO SOME ARTICLES OF THE GOVERNMENT’S DECREE NO. 134/2016/ND-CP DATED SEPTEMBER 01, 2016 ELABORATING THE LAW ON EXPORT AND IMPORT DUTIES