Decree No. 149/2005/ND-CP detailing the implementation of the Law on Export Tax and Import Tax

DECREE

Detailed regulations for implementing the Law on Export Tax, Import Tax

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Based on the Law on Export Tax, Import Tax No. 45/2005/QH11 dated June 14, 2005;

Pursuant to the Customs Law No. 29/2001/QH10 dated June 29, 2001, and the Law Amending and Supplementing Certain Provisions of the Customs Law No. 42/2005/QH11 dated June 14, 2005;

At the proposal of the Minister of Finance,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Taxable objects

Goods in the following cases are taxable objects for export tax and import tax, except for goods specified in Article 2 of this Decree:

1. Goods exported or imported through Vietnamese border gates, including: goods exported or imported through land border gates, river ports, sea ports, airports, international railway transit points, international postal services, and other customs clearance locations established by competent state authorities.

2. Goods moved from the domestic market to non-tariff zones and from non-tariff zones to the domestic market.

Non-tariff zones include: export processing zones, export processing enterprises, bonded warehouses, bonded areas, outer warehouses, special economic trade zones, industrial-commercial zones, and other economic zones established by the Prime Minister's Decision, with transactions between these zones and the outside being considered as exports and imports.

3. Other goods traded or exchanged shall be considered as exported or imported goods.

Article 2. Non-taxable objects

Goods in the following cases are non-taxable objects for export tax and import tax:

1. Goods transported in transit through Vietnamese border gates according to the provisions of the law.

2. Humanitarian aid goods, non-repayable aid goods provided by governments, organizations under the United Nations, intergovernmental organizations, international organizations, foreign non-governmental organizations (NGOs), economic organizations, or foreign individuals to Vietnam and vice versa, aimed at developing the economy and society, or other humanitarian purposes carried out through formal documents between the two parties, approved by authorized bodies; emergency humanitarian assistance aimed at mitigating the consequences of war, natural disasters, and epidemics.

3. Goods exported from non-tariff zones to overseas; goods imported from overseas into non-tariff zones and only used within non-tariff zones; goods transferred from one non-tariff zone to another non-tariff zone.

4. Oil and gas products subject to resource taxes when exported.

Article 3. Taxpayers; authorized representatives, guarantors, and substitute taxpayers

1. Taxpayers as prescribed in Article 4 of the Law on Export Tax, Import Tax, including:

a) Owners of exported or imported goods;

b) Organizations entrusted to export or import goods;

c) Individuals having goods exported or imported when exiting or entering the country; sending or receiving goods through Vietnamese border gates.

2. Authorized representatives, guarantors, and substitute taxpayers, including:

a) Customs agents when authorized by taxpayers to pay export tax and import tax;

b) Postal service enterprises or express delivery enterprises when paying tax on behalf of taxpayers;

c) Credit institutions or other entities operating under the Law on Credit Institutions when guaranteeing or paying tax on behalf of taxpayers as prescribed in Article 14 of this Decree.

Article 4. Application of international treaties

In cases where international treaties to which the Socialist Republic of Vietnam is a party provide different provisions on export tax and import tax than those stipulated in this Decree, the provisions of such international treaties shall apply.

Article 5. Taxation of goods traded or exchanged by border residents

Goods traded or exchanged by border residents are exempted from tax within a quota, if exceeding the quota, they must be taxed according to the provisions of this Decree. The Ministry of Finance shall take the lead, coordinate with provincial People's Committees and relevant agencies located at border areas to submit to the Prime Minister for approval the quota of tax-exempt goods traded or exchanged by border residents in each area.

Chapter II

BASIS FOR TAX CALCULATION AND TAX SCHEDULE

Article 6. Basis for tax calculation

1. For items subject to ad valorem tax rates (%), the basis for tax calculation is:

a) The actual quantity of each item exported or imported recorded in the Customs Declaration Form;

b) The taxable value of each item;

c) The tax rate of each item.

2. For items subject to specific tax rates, the basis for tax calculation is:

a) The actual quantity of each item exported or imported recorded in the Customs Declaration Form;

b) The specific tax amount per unit of goods.

Article 7. Taxable value and exchange rate for tax calculation

1. The taxable value for exported goods is the sale price at the export gate according to the contract (FOB price), excluding freight charges (F) and insurance charges (I), determined according to the provisions of the law on customs value for exported goods.

2. The taxable value for imported goods is the actual payment price up to the first import gate according to the contract, determined according to the provisions of the law on customs value for imported goods.

3. The exchange rate between Vietnamese dong and foreign currency used to determine the taxable value is the average transaction rate on the inter-bank foreign exchange market published by the State Bank of Vietnam at the time of tax calculation, published in the People's Daily newspaper and announced on the daily website of the State Bank of Vietnam; in cases where the People's Daily newspaper is not issued or the information is not updated to the customs gate on that day, the tax exchange rate of that day shall be applied according to the tax exchange rate of the previous day.

For foreign currencies not yet published by the State Bank of Vietnam with the average transaction rate on the inter-bank foreign exchange market, it shall be determined based on the cross-rate principle between the US dollar (USD) exchange rate with Vietnamese dong and the USD exchange rate with those foreign currencies published by the State Bank of Vietnam at the time of tax calculation.

Article 8. Currency for tax payment

Export tax and import tax shall be paid in Vietnamese dong. In cases where taxes are paid in foreign currency, the taxpayer must pay in freely convertible foreign currency. The conversion from foreign currency to Vietnamese dong shall be calculated based on the average transaction rate in the inter-bank foreign exchange market published by the State Bank of Vietnam at the time of tax calculation.

Article 9. Machine tools for machining complete units (one operation position) and machine tools for multi-position machining to process metals.

1. The export tax rate for goods is specifically stipulated for each item in the Export Tax Schedule.

2. The import tax rate for goods is specifically stipulated for each item, including preferential tax rates, special preferential tax rates, and general tax rates:

a) Preferential tax rates apply to imported goods originating from countries, groups of countries, or territories that grant most-favored-nation treatment in their trade relations with Vietnam. The preferential tax rates are specifically stipulated for each item in the Import Preferential Tax Schedule.

b) Special preferential tax rates apply to imported goods originating from countries, groups of countries, or territories that grant most-favored-nation treatment in their trade relations with Vietnam under regional free trade agreements, customs unions, or to facilitate border trade, and other special preferential cases.

Conditions for applying special preferential tax rates:

- They must be specific items specified in the agreements signed between Vietnam and the countries, groups of countries, or territories granting special preferences regarding taxes, and must meet all conditions recorded in the agreement.

- They must be goods originating from countries, groups of countries, or territories that Vietnam participates in special preference agreements regarding taxes.

c) General tax rates apply to imported goods originating from countries, groups of countries, or territories that do not grant most-favored-nation treatment and do not provide special tax preferences to Vietnam.

The general tax rate is uniformly applied at 150% of the preferential tax rate for each corresponding item stipulated in the Import Preferential Tax Schedule.

Article 10. Measures concerning taxes for self-defense, countering dumping, countering subsidies, and countering discriminatory treatment in the import of goods.

In addition to paying taxes as prescribed in Clause 2 of Article 9 of this Decree, if imported goods exceed the permissible level into Vietnam, are subsidized, sold below cost, or subject to discriminatory treatment against Vietnam's exported goods, then one of the following tax measures will be applied:

1. Increasing the import tax rate for goods exceeding the permissible level into Vietnam according to the Law on Self-Defense in the Import of Foreign Goods into Vietnam.

2. Anti-dumping duty on dumped goods imported into Vietnam according to the Law on Countering Dumping of Imported Goods into Vietnam.

3. Anti-subsidy duty on subsidized goods imported into Vietnam according to the Law on Countering Subsidies of Imported Goods into Vietnam.

4. Anti-discrimination duty on goods imported into Vietnam originating from countries, groups of countries, or territories where there is discriminatory treatment regarding import taxes or other discriminatory measures according to the laws on most-favored-nation treatment and national treatment in international trade.

Article 11. Authority and procedures for determining export tax rates, import tax rates, absolute taxes, and measures concerning taxes to counter discriminatory treatment in the import of goods.

1. The Ministry of Finance shall determine the following tax rates:

a) The export tax rate and preferential import tax rate for each item shall be implemented according to the following principles and procedures:

Principles:

- Consistent with the list of taxable goods and within the range of tax rates set by the Standing Committee of the National Assembly.

- Contributing to ensuring state budget revenue and stabilizing the market.

- Selectively protecting domestic production with conditions and duration appropriate to international treaties to which the Socialist Republic of Vietnam is a party.

Procedures:

- Based on the above principles, taking into account the country's export and import policies for goods during each period, the development orientation of industries, price fluctuations on the market during each period, and recommendations from organizations and individuals, the Ministry of Finance shall consult with relevant ministries and industry associations before issuing a Decision on the export tax rate and preferential import tax rate.

- If ministries and industry associations have differing opinions on the tax rate for certain items, the Ministry of Finance shall report to the Prime Minister for comments before issuing a Decision on the export tax rate and preferential import tax rate.

b) The special preferential import tax rate shall be implemented according to the following procedure: based on the special tax preference agreements for imported goods that Vietnam has committed to, the Ministry of Finance shall issue a decision on the special preferential import tax rate after consulting with relevant ministries and industry associations.

2. The Ministry of Finance shall take the lead and coordinate with relevant agencies to submit to the Prime Minister for a decision on the application of absolute taxes and anti-discrimination taxes when necessary.

Chapter III

TAX DECLARATION AND PAYMENT

Article 12. Responsibilities of taxpayers

Taxpayers of export tax and import tax are responsible for declaring taxes fully, accurately, transparently, and bearing legal responsibility for the content declared; submitting the Customs Declaration Form to the Customs Authority; calculating and paying taxes according to this Decree and regulations on customs procedures, customs inspection, and supervision.

Article 13. Time of tax calculation

The time of calculating export tax and import tax is the time when the taxpayer registers the Customs Declaration Form with the Customs Authority.

Export tax and import tax are calculated based on the tax rate, taxable value, and exchange rate at the time of tax calculation.

Article 14. Deadline for tax payment

1. The deadline for paying export tax is thirty days from the date the taxpayer registers the Customs Declaration Form.

2. The deadline for paying import tax applies to taxpayers who comply well with tax laws.

The taxpayer who complies well with tax laws is an entity that has been engaged in export and import activities for at least 365 (three hundred sixty-five) days up to the date of registering the Customs Declaration Form for the current import shipment without engaging in commercial fraud; evading taxes; having overdue tax debts and penalties; and complying well with financial reporting requirements as stipulated by law shall be subject to the following customs duty payment deadlines:

a) For imported goods which are raw materials or components for producing export goods, the deadline for paying customs duties is 275 (two hundred seventy-five) days from the date the taxpayer registers the Customs Declaration Form.

In special cases where production cycles or raw material reserves need to be extended, the customs duty payment deadline may be extended appropriately according to the production cycle or raw material reserve period. The Ministry of Finance shall take the lead and coordinate with relevant agencies to make specific decisions.

b) For goods traded under temporary importation/re-exportation or temporary exportation/re-importation schemes, the deadline for paying customs duties is 15 (fifteen) days from the end date of the temporary importation/re-exportation or temporary exportation/re-importation period (this applies even if an extension is granted).

c) For other imported goods not covered by points a and b of this clause, the deadline for paying customs duties is 30 (thirty) days from the date the taxpayer registers the Customs Declaration Form.

3. Customs duty payment deadlines applicable to taxpayers who have not complied well with tax laws:

a) If the taxpayer is guaranteed by a credit institution or another organization operating under the Law on Credit Institutions regarding the amount of customs duties payable, the payment deadline will follow the guarantee period but cannot exceed the deadline specified in Clause 2 of this Article. Upon expiration of the guarantee period (in case the guarantee period is shorter than the payment deadline) or upon expiration of the payment deadline (in case the guarantee period is equal to or longer than the payment deadline), if the taxpayer has not fully paid the customs duties, the guarantor organization shall be responsible for paying the customs duties and any late payment penalties (if applicable) on behalf of the taxpayer. The late payment period will be calculated from the date the guarantee period expires.

b) If the taxpayer is not guaranteed by a credit institution or another organization operating under the Law on Credit Institutions regarding the amount of customs duties payable, the customs duties must be fully paid before receiving the goods.

4. For imported consumer goods, the customs duties must be fully paid before receiving the goods. If there is a guarantee regarding the amount of customs duties payable, the payment deadline will be the guarantee period but cannot exceed 30 (thirty) days from the date the taxpayer registers the Customs Declaration Form. Upon expiration of the guarantee period, if the taxpayer has not fully paid the customs duties, the guarantor organization shall be responsible for paying the customs duties and any late payment penalties (if applicable) on behalf of the taxpayer. The late payment period will be calculated from the date the guarantee period expires.

The Ministry of Trade shall issue a list of consumer goods as a basis for implementing the provisions herein.

Article 15. Declaration and Payment of Taxes via a Single Customs Declaration Form

Goods registered for export or import via a single Customs Declaration Form for multiple exports or imports shall have their export duties and import duties calculated based on the tariff rate, taxable value, and exchange rate used to determine the taxable value for each individual export or import transaction, based on the actual quantity of each item exported or imported. The payment deadline for each export or import transaction shall be carried out in accordance with Article 14 of this Decree.

Chapter IV

EXEMPTION FROM TAXES, CONSIDERATION OF TAX EXEMPTIONS, REDUCTION OF TAXES, AND REFUND OF TAXES

AND COLLECTION OF OVERDUE TAXES

Article 16. Exemption from Taxes

Exported or imported goods in the following circumstances shall be exempt from export duties and import duties:

1. Goods temporarily imported for re-export or temporarily exported for re-import for participation in trade fairs, exhibitions, product demonstrations; machinery, equipment, and professional tools temporarily imported for re-export or temporarily exported for re-import for use during a specified period.

Upon expiration of the trade fair, exhibition, product demonstration period, or completion of work as prescribed by law, goods temporarily exported must be re-imported into Vietnam, while goods temporarily imported must be re-exported abroad.

2. Goods that are movable assets of domestic or foreign organizations or individuals brought into or taken out of Vietnam within the prescribed limits, including:

a) Movable assets of foreign organizations or individuals when permitted to reside or work in Vietnam or transferred abroad upon expiration of their residence or work period in Vietnam;

b) Movable assets of domestic organizations or individuals permitted to take abroad for business and work purposes, which must be re-imported into Vietnam upon expiration of the import period;

c) Movable assets of families or individuals of Vietnamese citizens residing abroad who are permitted to return to Vietnam for settlement or taken abroad when permitted to settle abroad; movable assets of foreigners brought into Vietnam when permitted to settle in Vietnam or taken abroad when permitted to settle abroad;

3. Goods exported or imported by foreign organizations or individuals enjoying diplomatic privileges and immunities in Vietnam.

4. Goods imported for processing for foreign parties shall be exempt from import duties, and when exporting the processed products back to foreign parties, they shall be exempt from export duties. Goods exported abroad for processing for domestic parties shall be exempt from export duties, and when re-imported, they shall be exempt from import duties on the portion of the value of the goods exported abroad for processing according to the contract.

5. Goods exported or imported within the tax-free allowance for personal effects of travelers entering or leaving the country.

6. Goods imported to form fixed assets of investment projects encouraged under Appendix I or Appendix II issued together with this Decree, and projects funded by official development assistance (ODA) shall be exempt from import duties, including:

a) Equipment and machinery;

b) Specialized transportation equipment in production lines confirmed by the Ministry of Science and Technology; transportation vehicles for picking up and dropping off workers, including buses with 24 seats or more and watercraft.

c) Parts, components, detached parts, spare parts, jigs, molds, accessories accompanying for assembly or synchronous use with specialized equipment, machinery, means of transport specified in points a and b of this clause;

d) Raw materials, supplies used to manufacture equipment, machinery within a production technology chain or to manufacture parts, components, detached parts, spare parts, jigs, molds, accessories accompanying for assembly or synchronous use with equipment, machinery specified in point a of this clause;

d) Construction materials not yet produced domestically.

The Ministry of Planning and Investment shall promulgate the List of domestically produced construction materials serving as the basis for implementing the tax exemption stipulated in this clause.

7. Planting materials and livestock breeds permitted for import to implement investment projects in agriculture, forestry, and fisheries sectors.

The Ministry of Agriculture and Rural Development shall promulgate the List of planting materials and livestock breeds permitted for import serving as the basis for implementing the tax exemption stipulated in this clause.

8. Goods imported by BOT enterprises and subcontractors to implement BOT, BTO, BT projects, including:

a) Equipment and machinery imported to form fixed assets (including equipment, machinery, spare parts used for survey, design, construction, and building works);

b) Specialized means of transport within a production technology chain to form fixed assets confirmed by the Ministry of Science and Technology; means of transportation for picking up and dropping off workers including buses with 24 seats or more and watercraft;

c) Parts, components, detached parts, spare parts, jigs, molds, accessories accompanying for assembly or synchronous use with specialized equipment, machinery, means of transport, and means of transportation for picking up and dropping off workers mentioned in this clause, including cases for replacement, warranty, maintenance during operation of the project;

d) Raw materials, supplies imported to implement the project, including raw materials, supplies for production and operation of the project;

9. The tax exemption on goods imported under clauses 6, 7, and 8 of this Article shall apply to both cases of expanding the scale of the project and replacing new technology.

10. First-time tax exemption for imported equipment according to the list attached as Appendix III of this Decree to form fixed assets of encouraged investment projects and Official Development Assistance (ODA) projects investing in hotels, offices, rental apartments, housing, shopping centers, technical services, supermarkets, golf courses, tourist areas, sports areas, entertainment areas, medical facilities, training, cultural, financial, banking, insurance, auditing, consulting services;

11. Tax exemption for goods imported to serve oil and gas activities, including:

a) Equipment, machinery, and specialized means of transport necessary for oil and gas activities confirmed by the Ministry of Science and Technology; means of transportation for picking up and dropping off workers including buses with 24 seats or more and watercraft; including parts, components, detached parts, spare parts, jigs, molds, accessories accompanying for assembly or synchronous use with equipment, machinery, specialized means of transport, and means of transportation for picking up and dropping off workers mentioned above;

b) Supplies necessary for oil and gas activities that are not yet produced domestically;

The Ministry of Planning and Investment shall promulgate the List of supplies necessary for oil and gas activities that are already produced domestically to serve as the basis for implementing the tax exemption stipulated in this point;

c) Medical equipment and emergency medicines used on drilling platforms and floating installations confirmed by the Ministry of Health;

d) Office equipment serving oil and gas activities;

e) Other temporarily imported goods for re-export to serve oil and gas activities;

12. For shipbuilding facilities, tax exemptions shall be granted for exported ship products and imports of machinery and equipment to form fixed assets; means of transport within a production technology chain confirmed by the Ministry of Science and Technology to form fixed assets; raw materials, supplies, semi-finished products serving shipbuilding that are not yet produced domestically;

The Ministry of Planning and Investment shall promulgate the List of raw materials, supplies, semi-finished products serving shipbuilding that are already produced domestically to serve as the basis for implementing the tax exemption stipulated in this clause;

13. Tax exemption for raw materials, supplies directly serving the production of software products that are not yet produced domestically;

The Ministry of Planning and Investment shall promulgate the List of raw materials, supplies directly serving the production of software products that are already produced domestically to serve as the basis for implementing the tax exemption stipulated in this clause;

14. Tax exemption for goods imported for direct use in scientific research and technological development, including: machinery, equipment, spare parts, supplies, means of transport not yet produced domestically, technologies not yet created domestically; scientific literature, books, newspapers, magazines, and electronic sources of information about science and technology;

The Ministry of Planning and Investment shall promulgate the List of machinery, equipment, spare parts, supplies, means of transport, and technologies directly used in scientific research and technological development that are already produced domestically to serve as the basis for implementing the tax exemption stipulated in this clause;

15. Raw materials, supplies, parts imported for production of projects listed in the Special Encouraged Investment Sectors Appendix I or in the Particularly Difficult Economic-Social Conditions Areas Appendix II issued together with this Decree, or in the production of mechanical, electrical, and electronic parts and components shall be exempted from import tax for a period of 5 years, starting from the date of commencement of production;

The Ministry of Trade shall coordinate with relevant ministries and sectors to issue guiding documents for detailed classification of production raw materials, supplies, parts serving as the basis for implementing the tax exemption stipulated in this clause.

16. Raw materials, components, semi-finished products imported from abroad to serve the production of projects listed in Appendix I under the Encouraged Investment Fields as stipulated in this Decree, which are not yet produced domestically, shall be exempted from import tax for a period of 5 (five) years, starting from the date of commencement of production.

The Ministry of Planning and Investment shall issue a list of raw materials, components, and semi-finished products that have been produced domestically as a basis for implementing the exemption of taxes as provided for in this clause.

17. Goods produced, processed, recycled, or assembled in duty-free zones without using imported raw materials or spare parts from abroad when imported into the domestic market shall be exempted from import tax; in cases where imported raw materials or spare parts from abroad are used, only the portion of imported raw materials or spare parts constituting the goods shall be subject to import tax upon importation into the domestic market.

18. Machinery, equipment, and transportation means (excluding passenger cars with less than 24 seats and passenger-cargo vehicles equivalent to passenger cars with less than 24 seats) imported by foreign contractors through temporary importation and re-exportation for construction works and ODA projects in Vietnam shall be exempted from import tax upon temporary importation and export tax upon re-exportation.

19. Organizations and individuals exporting or importing goods as specified in Clauses 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, and Clause 18 of this Article must self-determine and bear full responsibility before the law for accurately and truthfully declaring items eligible for tax exemption when registering the Customs Declaration Form.

20. In cases where taxpayers encounter difficulties due to objective reasons and other situations, the Ministry of Finance shall submit to the Prime Minister for consideration and decision on the exemption of export tax and import tax on a case-by-case basis.

Article 17. Consideration for Tax Exemption

Goods exported or imported in the following circumstances shall be considered for tax exemption:

1. Imported goods specifically used directly for national defense, security, education and training, scientific research (except as provided for in Clause 14 of Article 16 of this Decree) shall be considered for import tax exemption according to the List of Import Goods unified by the Ministry of Finance with relevant Ministries and sectors.

2. Gifts, samples, and other items given by foreign organizations and individuals to Vietnamese organizations and individuals or vice versa shall be considered for tax exemption within the prescribed limit.

3. Imported goods intended for sale at duty-free shops for departing and arriving passengers and other groups as prescribed by the Government, including promotional goods and trial display goods provided free of charge by foreign parties to be sold alongside goods at duty-free shops.

Article 18. Consideration for Tax Reduction

Goods exported or imported under the supervision of the Customs Authority if damaged or lost, and certified by authorized agencies or organizations, shall be considered for tax reduction corresponding to the actual loss rate of the goods. The Customs Authority shall base its decision to reduce taxes on the quantity of goods lost and the actual loss rate of the goods as certified.

Article 19. Refund of Export Tax and Import Tax in the Following Circumstances:

1. Imported goods that have paid import tax but remain stored at customs warehouses and are under the supervision of the Customs Authority and are subsequently re-exported abroad.

2. Exported or imported goods that have paid export tax or import tax but were not actually exported or imported.

3. Goods that have paid export tax or import tax but were actually exported or imported in lesser quantities.

4. Imported goods intended for the production of exported goods, if import tax has been paid, shall be refunded corresponding to the actual proportion of the product exported.

5. Goods that have paid import tax and are subsequently exported in the following cases:

a) Goods imported for delivery or sale to foreigners through agents in Vietnam;

b) Goods imported for sale to foreign carriers on international routes via Vietnamese ports and Vietnamese carriers on international routes as prescribed by the Government.

6. Temporarily imported goods for re-exportation or temporarily exported goods for re-importation under the temporary importation and re-exportation business model; goods temporarily exported and re-imported and goods imported on behalf of foreign parties and subsequently re-exported, if import tax or export tax has been paid (except as provided for in Clause 1 of Article 16 of this Decree).

7. Goods that have been exported but must be re-imported into Vietnam shall be considered for refund of the export tax paid and shall not be subject to import tax.

8. Imported goods that must be re-exported back to the foreign owner or re-exported to a third country shall be considered for refund of the import tax paid corresponding to the actual quantity re-exported and shall not be subject to export tax.

9. Machinery, equipment, tools, and transportation means of organizations and individuals permitted to temporarily import and re-export (including borrowed re-export) for investment projects, construction, installation of facilities, production services, when imported, must declare and pay import tax as prescribed, and upon re-exporting out of Vietnam, will be refunded the import tax. The amount of import tax refunded shall be determined based on the residual value of the goods when re-exported according to the time of use and storage in Vietnam. If the goods have reached the end of their useful life, they shall not be refunded the tax.

10. Goods exported or imported through postal service or express international courier services, where the enterprise operating such services has paid the tax on behalf of the consignor but failed to deliver the goods to the recipient and must re-export or re-import, or in cases where the goods are confiscated or destroyed according to the law, the amount of tax paid shall be refunded.

11. In case of mistake in declaration, tax calculation, or tax payment (including both the taxpayer and the Customs authority), the excess tax paid shall be refunded if such mistake occurred within 365 (three hundred sixty-five) days prior to the date of discovery of the mistake. The date of discovery of the mistake is the date on which the confirmation document is signed between the taxpayer and the Customs authority.

12. Exported or imported goods that have already been subject to export tax or import tax but later exempted from tax pursuant to a decision of a competent state agency.

Article 20. Responsibility and time limit for tax refund

1. Within the latest period of 60 (sixty) days from the date of registration of the actual export or import customs declaration, the entity eligible for tax refund must complete the required documentation and submit it to the competent state agency for examination and resolution of the refund of the tax paid.

In cases where the payment term stipulated in the export contract exceeds 60 (sixty) days from the date of actual export of goods, the enterprise must provide a commitment to present the payment documents within 15 (fifteen) days from the end of the payment term specified in the contract.

2. Within 15 (fifteen) days from the date of receipt of the complete tax refund application documentation, the competent state agency responsible for tax refunds shall issue a decision to refund taxes to the entity eligible for tax refund; in cases where the documentation is incomplete or non-compliant, within five working days from the date of receipt of the tax refund application documentation, the competent state agency responsible for tax refunds shall issue a request for supplementary documentation.

3. Beyond the time limit set forth in Clause 2 of this Article, if the delay in issuing the tax refund decision is due to the fault of the competent state agency responsible for tax refunds, in addition to the amount of tax to be refunded, interest on the delayed tax refund shall also be paid. Interest on the delayed tax refund shall be calculated from the date of the delay in issuing the tax refund decision until the date of issuance of the tax refund decision at the prevailing commercial bank loan interest rate at the time the tax refund decision should have been issued.

Article 21. Recovery of Tax

1. Cases requiring recovery of export tax or import tax:

a) Cases where goods have been exempted or considered for exemption under Articles 16 and 17 of this Decree, but subsequently used for purposes other than those for which the exemption was granted, shall be subject to full tax payment; except in cases where the goods are transferred to entities eligible for exemption or consideration for exemption under this Decree.

b) In cases where there is a mistake in declaration, tax calculation, or tax payment by the taxpayer or the Customs authority, the outstanding tax must be recovered within 365 (three hundred sixty-five) days from the date of discovery of the mistake. The date of discovery of the mistake is the date on which the confirmation document is signed between the taxpayer and the Customs authority.

c) In cases of fraud or tax evasion discovered within 5 (five) years from the date of inspection, the tax must be recovered. The date of discovery of fraud or tax evasion is the date on which the competent state agency issues the decision to recover the tax.

2. The basis for calculating export tax or import tax is the taxable value, tax rate, and exchange rate at the time of change in purpose previously granted exemption or consideration for exemption as provided in Point a of Clause 1; at the time of previous customs declaration registration for cases provided in Points b and c of Clause 1 of this Article.

3. The deadline for tax declaration is 10 (ten) days from the date of change in purpose previously granted exemption or consideration for exemption for cases provided in Point a; 10 (ten) days from the date of discovery of the mistake for cases provided in Point b; and from the date of inspection discovering fraud or tax evasion for cases provided in Point c of Clause 1 of this Article.

4. The deadline for tax payment and penalty payment (if applicable) for cases provided in Points a, b, and c of Clause 1 of this Article is within 10 (ten) days from the date the competent state agency issues the decision on the amount of tax and penalty (if applicable) to be paid.

If the taxpayer fails to declare and pay the full amount of tax and penalty (if applicable) into the state budget beyond the above deadline, they will be subject to violation handling according to current laws.

Chapter V

COMPLAINTS AND VIOLATION HANDLING

Article 22. Complaints and Resolution of Complaints

The rights and responsibilities of taxpayers in filing complaints about export tax and import tax; the responsibilities and rights of the Customs authority in resolving complaints about export tax and import tax shall be carried out in accordance with the Law on Export Tax and Import Tax and the law on complaints and denunciations.

Article 23. Handling Violations Regarding Tax for Taxpayers

Taxpayers who violate the provisions of the Law on Export Tax and Import Tax and this Decree shall be handled as follows:

1. Late payment of tax or penalty compared to the last day of the prescribed payment period or the last day recorded in the tax handling decision, in addition to paying the full amount of tax and penalty, a daily late payment fine of 0.1% (one thousandth) of the amount of late payment shall also be imposed; if the late payment period exceeds 90 (ninety) days, coercive measures shall be taken as provided in Clause 4 of this Article.

2. Failure to declare and pay tax in accordance with regulations shall result in administrative penalties for tax violations depending on the nature and degree of the violation.

3. False declaration of tax or tax evasion, in addition to paying the full amount of tax as prescribed, may also result in fines ranging from one to five times the amount of evaded tax depending on the nature and degree of the violation.

The head of the Customs office where the taxpayer registers the customs declaration has the authority to handle violations as provided in this clause.

4. Failure to pay tax or penalty as decided in the tax handling decision shall be enforced through the following measures:

a) Seize funds deposited by the taxpayer at banks, credit organizations, or State Treasury to pay tax or penalty. Banks, credit organizations, or State Treasury shall be responsible for deducting funds from the taxpayer's account to pay tax or penalty into the state budget according to the tax handling decision of the Customs authority or the competent state agency.

b) The Customs Authority where the Customs Declaration is registered has the right to temporarily detain goods or seize assets in accordance with the provisions of the law to ensure the full collection of outstanding taxes and fines. After thirty (30) days from the date the Customs Authority issues a decision to temporarily detain goods or a decision to seize assets, if the taxpayer still fails to pay the full amount of taxes and fines, the Customs Authority may sell the detained goods or seized assets at auction in accordance with the provisions of the law to collect the full amount of taxes and fines.

c) The Customs Authority will not process the import procedures for the next shipment of the taxpayer until the taxpayer pays the full amount of taxes and fines.

5. Within sixty (60) days from the date of registering the Customs Declaration, if the taxpayer discovers errors or mistakes on their own initiative and voluntarily pays the outstanding tax to the state budget, they shall be exempted from the application of penalty measures.

6. A person who evades taxes in large quantities or who has been administratively punished for tax evasion and continues to violate the law shall be criminally prosecuted in accordance with the provisions of the law.

Article 24. Handling violations committed by customs officials or other individuals involved:

1. Customs officials or other individuals who take advantage of their positions or powers to embezzle or commit fraud with tax money must compensate the state for the entire amount of tax embezzled or defrauded, and depending on the nature and severity of the violation, they shall be subject to disciplinary action, administrative penalties, or criminal prosecution in accordance with the provisions of the law.

2. Customs officials who lack a sense of responsibility, intentionally act contrary to regulations, cover up for violators, or engage in other acts that violate the laws on export duties and import duties, depending on the nature and severity of the violation, shall be subject to disciplinary action, administrative penalties, or criminal prosecution; if damage is caused, they must compensate according to the provisions of the law.

Chapter VI

IMPLEMENTATION

Article 25. Responsibilities of the Ministry of Finance:

1. Organizing and directing the collection of export duties and import duties; stipulating the authority, procedures for tax exemptions, tax reduction reviews, tax refund reviews, tax recovery, and handling of violations in accordance with this Decree.

2. Leading and coordinating with the State Bank of Vietnam to issue regulations and guidelines for financial institutions to provide information related to taxpayers to facilitate the inspection and collection of export duties and import duties.

Article 26. Provincial People's Committees and Municipal People's Committees directly under the Central Government are responsible for directing coordination, organizing, and managing the collection of export duties and import duties within their localities.

Chapter VII

IMPLEMENTING PROVISIONS

Article 27. Effectiveness

1. This Decree takes effect from January 1, 2006.

2. Abolish Decree No. 54/CP dated August 28, 1993, Decree No. 94/1998/NĐ-CP dated November 17, 1998, Decree No. 51/1999/NĐ-CP dated July 8, 1999, Article 26 of Decree No. 24/2000/NĐ-CP dated July 31, 2000, Articles 57, 58, and 59 of Decree No. 27/2003/NĐ-CP dated March 19, 2003, Clause 10 and 11 of Article 1 of Decree No. 48/2000/NĐ-CP dated September 12, 2000, Articles 54, 56, 57, and 58 of Decree No. 119/1999/NĐ-CP dated September 18, 1999, and Clauses 1, 2, 3, and 4 of Article 5 of the Investment Regulation for Build-Operate-Transfer Contracts, Build-Transfer-Operate Contracts, and Build-Transfer Contracts applicable to foreign investment projects in Vietnam issued together with Decree No. 62/1998/NĐ-CP dated August 15, 1998.

3. For encouraged investment projects that have already obtained investment licenses or preferential certificates with higher tax exemption rates than those specified in this Decree, they shall continue to implement the higher exemption rate for the remaining period; in cases where the investment license or preferential certificate specifies a lower tax exemption rate than that specified in this Decree, they shall enjoy the exemption rate as provided in this Decree for the remaining preferential period.

4. Regulations on special preferential import tariff rates that were promulgated before the effective date of this Decree but remain consistent with agreements Vietnam has signed with foreign countries shall continue to be implemented in accordance with those regulations. In case of changes, the Ministry of Finance shall issue specific special preferential import tariff rates based on Point b Clause 1 Article 11 of this Decree.

Article 28. The Ministry of Finance shall provide guidance on the implementation of this Decree;

Article 29. Ministers, Heads of Ministries equivalent to ministries, Heads of agencies under the Government, and Chairmen of Provincial People's Committees and Municipal People's Committees directly under the Central Government are responsible for implementing this Decree./.