Imported goods will be subject to tax exemption if eligible

In the process of carrying out operations, Ba Ria – Vung Tau Customs Department faced obstacles in handling import duty exemption for goods serving the project “adjusting Nam Con Son II gas pipes”.

According to General Department of Vietnam Customs, at Law on Import Duty and Export Duty, Decree 134/2016/NĐ-CP, Circular 05/2021/TT-BKHDT stipulated clearly tax policy relating to imported goods on the duty-free list.

Also on the basis of opinions of the Ministry of Planning and Investment in Official Letters No. 7239/BKHDT-KTCN dated October 30, 2020, No. 901/BKHĐT-KTCN dated February 22, 2021, No. 2378/BKHDT-KTCN dated April 27, 2021 about goods that cannot be produced domestically, the General Department of Vietnam Customs recommended Ba Ria-Vung Tau Customs Department review and compared information on imported goods with the duty-free list registered with the customs authority to deal with specific cases.

Ba Ria-Vung Tau Customs officers performed customs supervision of imports and exports at Cai Mep port area. Photo: N.H

In some cases, it can be determined that imported goods are eligible. In fact, the goods are used for the right purposes for the project, and the goods cannot be produced domestically in accordance with the regulations of the Ministry of Planning and Investment. Thus, it is considered to exempt from import duty as complied.

Regarding making an additional declaration of import declarations after clearance, in Clause 4, Article 29 of Law on Customs; Point b, Clause 1, Article 20 of Circular 38/2015/TT-BTC as amended and supplemented in Clause 9 Article 1 of Circular 39/2018/TT-BTC stipulating the case of making additional declaration after the goods have been cleared. The enterprise is not allowed to make additional declarations related to the import-export license; specialized inspection of goods quality, health, culture, quarantine of animals, animal and plant products, and food safety.

Also according to the instructions in section “1.38. Import license” form No. 01, Appendix 1 to Circular 39/2018/TT-BTC, the customs declarant must fill in the information in the following cases goods must have an import permit, results of specialized inspection before clearance; imported goods on the list of deductions; tax-free investment registered outside the system; synchronous devices; imported goods in the form of the completed unit and disassembled which must be imported many times and many trips; materials and equipment imported for building, repairing and maintaining rolling stock; materials and equipment imported for key mechanical production; document of pre-determination of value, a document of pre-determination of code and document of origin determination; and processing contract number/addendum.

Accordingly, the duty-free list is not an import permit, so it does not fall in the case of not making additional declaration as prescribed in Clause 4, Article 29 of Law on Customs and point b, Clause 1, Article 20 of Circular 38/2015/TT-BTC, amended and supplemented in Clause 9 Article 11 of Circular 39/2018/TT-BTC.

Therefore, Ba Ria - Vung Tau Customs Department needs to guide businesses to declare additional import declarations after clearance in order to declare information related to duty-free goods as prescribed.

Accordingly, at the information indicator “4.32. the notes section (after making additional declaration)” under the information section of additional declaration after clearance on the system, as prescribed at point 4.2, Appendix 1 of Circular 39/2018/TT-BTC, declare the contents about tax exemption codes following the import tax exemption/reduction/non-taxable code table, the number in the list of tax exemptions which already notified to the customs authority, the ordinal number of the goods line on the duty-free list of the goods which are made additional declaration; do not use information indicator “4.53. Code to determine tax rate before making an additional declaration (tax and other collection)", “4.59. Code to determine tax rate after additional declaration (tax and other collection)” to declare the above information additionally.

After that, the customs office will update and deduct the number of imported goods corresponding to the number of goods in the duty-free list, which is valid when processing import tax exemption.

As for the handling of overpaid tax, Article 60 of the Law on Tax Administration No. 38/2019/QH4 stipulates the handling of overpaid tax, late payment and fines; Article 10 of Circular 06/2021/TT-BTC stipulates the procedures for handling tax, late payment, and fines for the overpayment.

In cases where the taxpayer has paid import duty for goods subject to import tax exemption, the paid amount of import duty will be considered and handled following the provisions on handling overpaid tax in Article 60 of the Law on Tax Administration. No. 38/2019/QH4, Article 10 of Circular 06/2021/TT-BTC.