Export and import duty reduction

1. Duties on exports and imports under customs supervision specified in the Law on Customs 2014 and its instructional documents shall be reduced if the goods are damaged or lost because of inevitable causes as prescribed in Clause 1 Article 18 of the Law on Export and import duties.

2. An application for duty reduction consists of:

a) Form 08 in Appendix VII enclosed herewith compiled by the taxpayer;

b) 01 certified true copy of the insurance contract or insurance payout notice issued by the insurer (if any) (a confirmation by the insurer is required if the insurance contract does not specify tax indemnification) or the compensation agreement issued by the shipping company in case the damage is caused by the shipping company (if any);

c) A confirmation of damage issued by a local authority e.g. confirmation of conflagration issued by the local fire department, confirmation of natural disaster or accident issued by the People’s Committee of the province.

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

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

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

3. Power to grant duty reduction:

a) The taxpayer shall submit an application to the customs official while following customs procedures or within 30 working days from the issuance date of the confirmation of loss or damage of goods;

b) If a satisfactory application is submitted while following customs procedures, the Sub-department of Customs shall process the application, carry out a physical inspection, inspect the eligibility for duty reduction and decide whether to grant duty reduction before customs procedures are completed as prescribed Article 23 of the Law on Customs;

c) If the application for duty reduction is submitted after customs procedures are completed:

If the application is satisfactory, the Customs Department shall compile a dossier, verify the information, inspect the accuracy and adequacy of the application and, within 15 days from the day on which the satisfactory is received, request the Ministry of Finance to issue a decision on duty reduction or inform the taxpayer and provide explanation if the application is rejected. If the application is not satisfactory, the customs authority shall inform the taxpayer within 03 working days from the day on which it is received.

If a physical inspection of goods that have been released from the customs controlled area is necessary basis for duty reduction, a decision on post-clearance inspection shall be delivered to the taxpayer and the tasks specified in this Point shall be carried out within 40 days from the day on which adequate documents are received.

Article 33. Refund of duties on re-imported exports

1. Paid duties on the following exports that have to re-imported shall be refunded and import duties thereon shall be exempt:

a) Goods that have been exported but have to be re-imported into Vietnam;

b) Goods that are sent by an organization or individual in Vietnam to an overseas organization or individual by international postal service or express delivery service, duties on which have been paid but delivery is failed and the goods have to be re-imported.

The taxpayer shall provide truthful information about the exported goods, the number and date of the sale contract (if any) and the buyer’s name on the import declaration.

The customs authority shall verify information provided by the taxpayer and specify the result to serve the refund of duties.

2. An application for duty refund consists of:

a) Form 09 in Appendix VII enclosed herewith;

b) 01 certified true copy of the document proving payment for the exports or imports (if paid);

c) 01 certified true copy of the export/import contract and invoices enclosed therein or the export/import mandate contract, as the case may be;

d) If goods have to be re-imported because it is rejected by the foreign buyer or there is no recipient as notified by the shipping company, 01 certified true copy of the foreign buyer’s notice or agreement with the foreign buyer on the return of goods or the shipping company’s notice of failed delivery which provides explanation and specifies the quantities and categories of the goods returned.

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

dd) In case of exports or imports mentioned in Point b Clause 1 of this Article, 01 certified true copy of the notice of failed delivery issued by the postal service provider or international express delivery service provider.

3. Procedures for submission, receipt and processing of application for duty refund are prescribed by tax administration laws.

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