Guarantee for temporarily admitted goods

1. VCCI shall be the guaranteeing association in Vietnam.

2. The guarantee provided for obtaining an ATA carnet shall be determined by VCCI and equal to 110% of total amount of import duties and other taxes calculated according to the highest rates of the country through which the goods are transported.

Where the guarantee is not sufficient to pay import duties and other taxes, late payment interests, fines, fees and charges (if any) collected on the temporarily admitted goods, the ATA carnet holder shall be required to make an additional payment to VCCI.

3. If goods are temporarily exported from Vietnam, the guarantee shall be provided in VND. In other cases, the currency of guarantee shall comply with the national legislation of the country of departure.

4. The taxes incurred in Vietnam shall be paid in VND, except cases where the taxes may be declared and paid in a freely convertible currency in accordance with regulations of the Law on tax administration. The exchange rate applied to calculation of the amount of taxes payable shall comply with regulations on customs.

5. Values for calculating import duties incurred in Vietnam shall comply with regulations of the Law on import and export duties.

6. Import duties and other taxes (if any) incurred in Vietnam shall be calculated in accordance with regulations of the law on taxation.

7. The ATA carnet holder shall provide the letter of guarantee issued by the credit institution or foreign bank branch or an amount of guarantee to VCCI before being issued with the ATA carnet.

8. The maximum duration of the guarantee is 33 months from the date of issue of the ATA carnet.

9. If the guaranteeing association or the ATA carnet holder pays taxes after the prescribed deadline, late payment interests shall be charged. Late payment interests shall be determined in accordance with regulations of the Law on tax administration.

If the guaranteeing association or the ATA carnet holder fails to fully pay taxes, late payment interests and fines (if any) to state budget by the prescribed deadline, the customs authority shall implement enforcement measures as prescribed.

Article 19. Release of guarantee amounts

1. Within 05 working days from receipt of the application for return of ATA carnet which is adequate and valid as prescribed in Article 10 hereof, VCCI shall release the guarantee to the ATA carnet holder.

2. If the ATA carnet has been lost, torn or destroyed, the guarantee shall be released after 21 months from the expiry date of the ATA carnet.

Article 20. Fulfillment of guarantee obligations

1. With regard to goods temporarily imported for re-exportation:

a) If the ATA carnet holder fails to submit documents proving the termination of temporary admission as prescribed in Article 7 hereof within 10 working days from the end of the period for temporary importation for re-exportation prescribed in Clause 1 Article 6 hereof, the customs authority where procedures for temporary importation of goods are followed shall notify the amount of import duties, other taxes, late payment interests, fines, fees and charges (if any) as prescribed by law to VCCI for requesting the guaranteeing association in the country of department to make payment; late payment interests shall be determined in accordance with regulations of the Law on taxation;

b) If the guaranteeing association in the country of department fails to provide documents proving the termination of temporary admission as prescribed in Article 7 hereof to VCCI within 06 months from the receipt of the request from VCCI, the guaranteeing association in the country of department shall pay import duties, other taxes, late payment interests, fines, fees and charges (if any) to VCCI.

VCCI shall make payment to the customs authority where procedures for temporary importation are followed within 05 working days from receipt of payment from the guaranteeing association in the country of department.

If the guaranteeing association in the country of department fails to pay or partially pays import duties, other taxes, late payment interests, fines, fees and charges (if any), VCCI shall notify the case to WCF for recovering the full amount of import duties, other taxes, late payment interests, fines, fees and charges (if any);

c) If the guaranteeing association in the country of department or ATA carnet holder presents documents proving the termination of temporary admission as prescribed in Article 7 hereof within 03 months from the payment of import duties, other taxes, late payment interests, fines, fees and charges (if any), the customs authority where procedures for temporary importation of goods are followed shall inspect or cooperate with relevant agencies to inspect the received documents and, if the inspection results are satisfactory, return the sums paid by the guaranteeing association in the country of department to VCCI for transferring it to the guaranteeing association in the country of department. Such return of money shall comply with regulations of the Law on tax administration regarding settlement of taxes, late payment interests, fines and overpaid sums.

2. With regard to goods temporarily exported for re-importation:

a) If the ATA carnet holder fails to re-import the goods within the period for temporary exportation for re-importation prescribed in Clause 2 Article 6 hereof, the customs authority where procedures for temporary exportation of goods are followed shall take actions against violations as prescribed by law and impose the amount of taxes payable, if any;

b) Within 6 months from the date on which the guaranteeing association in the country of arrival notifies VCCI of the amount of import duties, other taxes, late payment interests, fines, fees and charges (if any), VCCI shall request the ATA carnet holder to provide documents proving the termination of temporary admission as prescribed in Article 7 hereof. If the ATA carnet holder fails to provide documents proving the termination of temporary admission as prescribed in Article 7 hereof, VCCI shall pay import duties, other taxes, late payment interests, fines, fees and charges (if any) by using the guarantee provided by the ATA carnet holder to the guaranteeing association in the country of arrival;

c) If the ATA carnet holder provides documents proving the termination of temporary admission as prescribed in Article 7 hereof within 03 months from the date on which VCCI pays import duties, other taxes, late payment interests, fines, fees and charges (if any) to the guaranteeing association in the country of arrival, VCCI shall request the guaranteeing association in the country of arrival to return the sums paid by VCCI and release the guarantee to the ATA carnet holder (if any).

3. After 12 months from the expiry date of the ATA carnet, the guaranteeing association in the country of ATA carnet must not pay import duties, other taxes, late payment interests, fines, fees and charges (if any) if not requested by the guaranteeing association in the country where taxes are incurred.

4. If the customs authority finds that the procedures for re-exportation of goods from the country of arrival or re-importation of goods to Vietnam have been carried out inconsistently with regulations or detects any fraudulent information, VCCI shall pay import duties, other taxes, late payment interests, fines, fees and charges (if any) by using the guarantee for issuing the ATA carnet paid by its holder to the customs authority in the country of arrival.

Chapter VI

TAX EXEMPTION, REDUCTION AND MANAGEMENT IN RESPECT OF TEMPORARILY ADMITTED GOODS

Article 21. Exemption of taxes on temporarily admitted goods

1. When goods granted temporary admission as prescribed in this Decree are temporarily imported for re-exportation or temporarily exported for re-importation within the period of temporary admission prescribed in Article 6 hereof, they shall be exempted from taxes under the provisions of the Istanbul Convention for use at the events prescribed in Clause 7 Article 3 hereof.

Taxes on the goods which have been granted temporary admission as prescribed in this Decree but not re-imported upon the end of the temporary admission period must be fully declared and paid in accordance with regulations on taxes imposed on exports.

2. Based on the ATA carnet, the customs authority where customs procedures are followed shall determine the goods eligible to be exempted from import/export duties, excise tax, environmental protection tax and VAT in accordance with regulations of the law on taxation.

Article 22. Tax reduction

1. The import or export duties imposed on goods which have been destroyed, seriously damaged or totally lost by accident or force majeure as certified by competent authorities shall be reduced in accordance with regulations of the Law on export and import duties.

2. Applications, procedures and authority to decide reduction of import/export duties shall comply with the Law on export and import duties, the Law on tax administration and its guiding documents. The customs declaration shall be replaced by the exportation voucher or importation voucher of the ATA carnet.