Circular No. 205/2010/TT-BTC guiding the Government's Decree No. 40/2007/NĐ-CP dated March 16, 2007 on the determination of customs value for exported and imported goods.

CIRCULAR

Guidelines for Decree No. 40/2007/NĐ-CP dated March 16, 2007 of the Government on the determination of customs value for exported and imported goods.

customs value for exported and imported goods

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

||| Law on Tax Administration No. 78/2006/QH11 dated November 29, 2006; Law Amending and Supplementing Certain Provisions of the Tax Administration Law No. 21/2012/QH13 dated November 20, 2012;

Pursuant to the Law on Tax Administration No. 78/2006/QH11 dated November 29, 2006;

Based on the Intellectual Property Law No. 50/2005/QH11 dated November 29, 2005, the Law Amending and Supplementing Certain Provisions of the Intellectual Property Law No. 36/2009/QH12 dated June 19, 2009;

Based on Decree No. 40/2007/NĐ-CP dated March 16, 2007 of the Government on the determination of customs value for exported and imported goods;

Pursuant to the Government's Decree No. 87/2010/NĐ-CP dated August 13, 2010 detailing certain provisions of the Law on Export Duties and Import Duties;

Based on Decree No. 85/2007/NĐ-CP dated May 25, 2007 of the Government detailing the implementation of the Tax Administration Law; Decree No. 106/2010/NĐ-CP dated October 28, 2010 amending and supplementing certain provisions of Decree No. 85/2007/NĐ-CP dated May 25, 2007 and Decree No. 100/2008/NĐ-CP dated September 8, 2008 of the Government detailing certain provisions of the Personal Income Tax Law.

Based on Decision No. 149/2005/QĐ-TTg dated June 20, 2005 of the Prime Minister on piloting electronic customs procedures; Decision No. 103/2009/QĐ-TTg dated August 12, 2009 of the Prime Minister on amending and supplementing certain provisions of Decision No. 149/2005/QĐ-TTg;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;
Implementing Resolution No. 25/NQ-CP dated June 2, 2010 of the Government on simplifying administrative procedures within the scope of functions and management of Ministries and sectors;

The Ministry of Finance issues guidelines to implement Decree No. 40/2007/NĐ-CP dated March 16, 2007 of the Government on the determination of customs value for exported and imported goods as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

1) Scope of application: This Circular guides the inspection and determination of customs value for the purpose of calculating taxes and statistics for exported and imported goods.

2) Applicability: Organizations and individuals exporting and importing goods, customs authorities, customs officers, and other organizations and individuals when performing tasks related to the inspection and determination of value for exported and imported goods.

Article 2. Interpretation of Terms

The terms used in this Circular are understood as follows:

1) Goods purchase and sale contract: Is an agreement on the sale of goods established in writing or by equivalent forms such as telegrams, telexes, faxes, data messages. Accordingly: The seller has the obligation to deliver the goods, transfer ownership of the goods to the buyer, and receive payment; the buyer has the obligation to pay the seller and receive the goods; the goods are transferred from the seller to the buyer through a border gate, Vietnam's border or from a duty-free zone into the domestic market or from the domestic market into a duty-free zone.

The seller includes the goods seller and service provider.

2) Purchase commission: Is the amount of money that the buyer pays to the agent representing themselves to purchase imported goods at the most reasonable price.

3) Sales commission: Is the amount of money that the seller pays to the agent representing themselves to sell exported goods to the buyer.

4) Brokerage fee: Is the amount of money that the buyer or the seller or both must pay to the broker to assume the intermediary role in the transaction of purchasing imported goods.

5) Royalty fee: Is the amount of money that the buyer must pay directly or indirectly to the subject of intellectual property rights to be transferred ownership or usage rights of intellectual property rights.

5.1) Intellectual property rights: Are the rights of organizations and individuals over intellectual property assets, including copyright, related rights, industrial property rights, and rights concerning plant varieties.

5.1.1) Copyright is the right of organizations and individuals over works created or owned by themselves.

5.1.2) Related rights are the rights of organizations and individuals over performances, sound recordings, audiovisual recordings, broadcasting programs, and encrypted satellite signals carrying programs.

5.1.3) Industrial property rights are the rights of organizations and individuals over patents, designs, semiconductor integrated circuit layout designs, trademarks, trade names, geographical indications, trade secrets created or owned by themselves and rights against unfair competition.

5.1.4) Rights concerning plant varieties are the rights of organizations and individuals over new plant varieties created or discovered and developed or enjoying ownership rights.

Contents of rights as prescribed by the Intellectual Property Law.

5.2) Subject of intellectual property rights: Is the owner of intellectual property rights or organizations and individuals to whom the owner transfers intellectual property rights.

6) License fee: Is the amount of money that the buyer must pay directly or indirectly to the subject of intellectual property rights to carry out certain activities within the scope of industrial property rights.

7) Goods with comparable value: If the difference between them is influenced by the following objective factors:

7.1) The nature of the goods, the characteristics of the industry producing the goods;

7.2) The seasonality of the goods;

7.3) Minor differences in commercial terms.

When examining the approximate value of two values, they must be brought to the same conditions of sale.

8) Identical imported goods: Are those imported goods identical in all aspects, including:

8.1) Physical characteristics such as product surface, constituent materials, manufacturing methods, functions, purposes of use, physical, chemical properties...;

8.4) Produced in the same country, by the same manufacturer or authorized manufacturer.

8.3) Reputation of the product brand;

8.4) Produced in the same country, by the same manufacturer or authorized manufacturer.

Imported goods that basically meet these conditions are considered identical imported goods even if there are minor differences in appearance such as color, size, style without affecting the value of the goods.

Imported goods will not be considered identical if during the production of one of these goods, technical designs, construction designs, implementation plans, artistic designs, design drawings, diagrams, sketches, or similar products and services made in Vietnam are provided free of charge by the buyer to the seller.

9) Similar imported goods: Are those goods although not identical in all aspects but have basic similarities, including:

9.1) Made from equivalent materials and components with the same manufacturing method;

9.2) Having the same function and purpose of use;

9.3) Equivalent product quality;

9.4) Interchangeable in commercial transactions, that is, the buyer accepts substituting one commodity for another;

9.5) Produced in the same country, by the same manufacturer or an authorized manufacturer, imported into Vietnam;

Imported goods shall not be considered similar if during the production of one of these goods, technical designs, construction designs, artistic designs, implementation plans, design drawings, diagrams, sketches, or similar products and services made in Vietnam are used free of charge or at a reduced price by the buyer for the seller;

10) Identical exported goods: Are goods that are identical in all aspects, including:

10.1) Physical characteristics such as the surface of the product, constituent materials, manufacturing methods, functions, purposes of use, mechanical, physical, chemical properties...;

10.2) Product quality;

10.3) Reputation of the product brand;

10.4) Produced in Vietnam, by the same manufacturer or an authorized manufacturer;

11) Similar exported goods: Are goods that although not identical in all aspects have basic similarities, including:

11.1) Made from equivalent materials and components with the same manufacturing method;

11.2) Having the same function and purpose of use;

11.3) Equivalent product quality;

11.4) Interchangeable in commercial transactions, that is, the buyer accepts substituting one commodity for another;

11.5) Produced in Vietnam, by the same manufacturer or an authorized manufacturer;

12) Goods of the same grade or type: Are goods within the same group or set of groups of goods produced by the same industry or specific field, including identical imported goods and similar imported goods;

Example: Construction steel types such as round smooth steel, twisted steel, shaped steel (U, I, V-shaped), produced by the steel industry, are goods of the same type;

12.1) In the method of determining the dutiable value according to the deducted value, "goods of the same grade or type" are imported goods from all countries into Vietnam, regardless of origin;

12.2) In the method of determining the dutiable value according to the computed value, "goods of the same grade or type" must be imported goods of the same origin as the goods being determined for the dutiable value;

13) First port of entry: Is the destination port recorded on the bill of lading. For road, rail, or river transport, the first port of entry is the destination port recorded in the contract;

14) Software: Is data, programs, or instructions expressed in the form of commands, codes, diagrams, or any other form that when loaded into a data processing device can enable it to perform a task or achieve a specific result. Sound, film, or image products are not considered software under this provision;

15) Intermediate medium: Refers to floppy disks, CDs, magnetic tapes, magnetic cards, or any object capable of storing information, used as a temporary storage medium or for transferring software. To use, software must be transferred, installed, or integrated into a data processing device. The intermediate medium here does not include integrated circuits, microchips, semiconductors, and similar devices or parts attached to circuit boards or devices;

16) Assumed price: Is the price determined before the actual purchase and sale activities for importing goods into Vietnam;

17) Imposed price: Is the price determined without following the principles and methods for determining the dutiable value as stipulated in this Circular.

Article 3. Principles for Determining Customs Value

1) The customs value for tax purposes (hereinafter referred to as the taxable value) shall be determined in accordance with the guiding principles set out in Chapter II of this Circular.

2) The customs value for statistical purposes (hereinafter referred to as the statistical value) shall be determined according to the following principle:

2.1) For goods subject to taxation, the statistical value is the taxable value.

2.2) For goods not subject to taxation, goods exempted from taxation, or goods under consideration for exemption from taxation, the statistical value is the value declared by the declarant according to the following principles:

2.2.1) For imported goods, it is the price at the first port of entry (CIF price, DAF price).

2.2.2) For exported goods, it is the actual selling price at the port of export (FOB price, DAF price).

Article 4. Time of Determination of Customs Value and Tax Payment Deadline

1) The time of determining the customs value for exported and imported goods is the date of registering the customs declaration for exported and imported goods.

In cases where there is a need to delay the determination of the taxable value, the time of determining the taxable value for imported goods is the day when the customs authority or the declarant determines the taxable value in accordance with the guidance provided in this Circular.

2) Tax payment deadline:

2.1) For the difference between the amount of tax determined by the customs authority and the amount of tax self-declared and self-calculated by the taxpayer in cases where the goods have been cleared, it is 10 (ten) days from the date the customs authority issues the decision on tax assessment.

2.2) For other cases, the tax payment deadline shall be implemented in accordance with the provisions of Clauses 3, 4, and 5 of Article 42 of the Law on Tax Administration.

Article 5. Rights of the Declarant

1) Request the customs authority:

1.1) To keep confidential commercial information provided to the customs authority, including various types of information about buyers, sellers, agents, domestic purchasers, export prices, import prices, resale prices of goods in the domestic market, production costs of imported goods.

1.2) To guide the determination and declaration of the taxable value in accordance with the procedures, principles, and methods of valuation.

1.3) To notify in writing the taxable value, the basis, and the method used to determine the taxable value in cases where the taxable value is determined by the customs authority.

1.4) To consult to explain and clarify any doubts raised by the customs authority regarding the declared value.

1.5) To clear goods for export in cases where the goods have not yet had an official price at the time of registration of the declaration; or for imported goods that must delay the determination of the taxable value, based on having secured the amount of tax due.

2) Propose in writing changes to the sequence of applying the deduction method and the computation method.

3) Lodge complaints or initiate litigation against the customs authority's determination of the taxable value in accordance with the laws on complaints and appeals and the laws on administrative litigation procedures.

4) Other rights as prescribed by the Law on Tax Administration.

Article 6. Obligations of the Declarant

1) Declare fully and accurately all costs related to the purchase and sale of exported and imported goods and independently determine the taxable value of exported and imported goods in accordance with the regulations.

2) Submit the declaration form for the taxable value, legal documents, and vouchers used to determine the taxable value together with the customs declaration. Provide and present documents serving as the basis for inspection and determination of the taxable value upon request of the customs authority.

3) Participate in explanations and be subject to inspection by the customs authority regarding the declared value. Have the responsibility to cooperate with the customs authority in clarifying any doubts raised by the customs authority concerning declarations related to the taxable value.

4) Be responsible under the law for the contents declared and the results of independently determining the customs value for tax and statistical purposes.

5) Be responsible for the notification of consultation invitation (according to Form No. 3 issued along with this Circular) sent by the customs authority to the address declared on the customs declaration or the address registered with the customs authority but without anyone receiving it.

6) Fulfill the guarantee requirements stipulated in Article 25 of this Circular if clearance of goods is desired.

7) Other obligations as prescribed by the Law on Tax Administration.

Article 7. Responsibilities of Customs Authorities

1) Maintain confidentiality of commercial information provided by the declarant related to declared value, including information about buyers, sellers, agents, domestic purchasers, export prices, import prices, resale prices within the country, production costs of imported goods, except where such information must be provided to relevant agencies as prescribed by law.

2) Explain and guide the declarant to comply with the provisions of Government Decree No. 40/2007/NĐ-CP dated March 16, 2007, and the guidance provided in this Circular.

3) Notify the declarant in writing of the following:

3.1) The basis for suspicion in cases where there is doubt regarding the declared price of goods listed in the General Department's Import Price Risk Management List or the Directorate's Import Price Risk Management List (in accordance with Form No. 1 issued together with this Circular);

3.2) The guarantee amount in cases of delayed determination of taxable value (in accordance with Form No. 2 issued together with this Circular);

3.3) The taxable value, basis, and method used to determine the taxable value when the taxable value is determined by the customs authority (in accordance with Form No. 4 issued together with this Circular);

4) Organize consultations in accordance with the procedures and formalities stipulated in Article 26 of this Circular.

5) Publicize the declaration form for taxable value on the Vietnam Customs Electronic Information Portal and guide the declarant to declare in accordance with each method of determining the taxable value.

6) Resolve complaints from the declarant regarding the determination of the taxable value in accordance with the provisions of the law.

7) Other responsibilities as prescribed by the Law on Tax Administration.

Article 8. Powers of Customs Authorities

1) Examine the contents of declarations and determine the taxable value of the declarant in accordance with the guidelines set out in Chapter III of this Circular.

2) Require the declarant to submit and present documents and certificates related to transactions, payment of goods, transport documents, insurance documents (if any), and post-import sales accounting to explain and clarify doubts of the customs authority regarding the declared price.

3) Determine the taxable value:

3.1) For exported goods: The customs authority shall determine the taxable value in the following cases:

3.1.1) The declarant cannot determine the value or determines the value incorrectly according to the principles and methods prescribed in Section I of Chapter II of this Circular; does not declare or declares incorrectly the official price;

3.1.2) The purchase and sale contract is illegal;

3.1.3) There is inconsistency between the content of the purchase and sale contract and the contents declared on the customs declaration form;

3.2) For imported goods: The customs authority shall determine the taxable value in the following cases:

3.2.1) The declarant cannot determine the taxable value according to the valuation methods;

3.2.2) Does not declare or declares incorrectly the amounts to be added as prescribed in this Circular.

3.2.3) Cases where the customs authority rejects the declared value as prescribed in point 1.3.2.2 Clause 1 Article 24 and point 4.4.1 Clause 4 Article 26 of this Circular.

3.2.4) Cases where goods belong to the General Department's Import Price Risk Management List or the Directorate's Import Price Risk Management List, have price doubts, and the declarant agrees to pay taxes based on the price determined by the customs authority as prescribed in Form No. 1 issued together with this Circular.

3.2.5) The declarant does not comply with the provisions of Government Decree No. 40/2007/NĐ-CP dated March 16, 2007, and the guidance provided in this Circular.

4) Other rights as prescribed by the Law on Tax Administration.

Article 9. Documents and materials to be submitted

In addition to the customs declaration dossier as prescribed, the types of documents and materials that the declarant must submit to the customs authority according to this Circular are certified true copies of the original documents issued by the enterprise (except where specifically required to submit the original), with one copy for each type of document or material. In cases of doubt regarding related documents and evidence, the customs authority must compare them with the originals to ensure accuracy.

Chapter II

DETERMINATION OF VALUE FOR EXPORTED AND IMPORTED GOODS

Section 1

DETERMINATION OF TAXABLE VALUE FOR EXPORTED GOODS

Article 10. Principles and methods of determination

1) Principle: The taxable value for exported goods is the actual selling price at the port of export (FOB price, DAF price) excluding international insurance fees (I) and international freight charges (F) consistent with relevant documents.

2) Methods of determination:

2.1) The actual selling price at the port of export is the price recorded on the sales contract for goods or other forms having equivalent legal effect to the contract, commercial invoices, and relevant documents corresponding to the exported goods.

2.2) In cases where the declaration dossier is not legal or there are contradictions between the contents of the documents, the customs authority shall determine the taxable value based on the sequence of information sources specified in Clause 5, Article 21 of this Circular and the accompanying documents and materials, including:

2.2.1) The customs declaration of identical exported goods or similar exported goods serving as the basis for determining the taxable value; or/and

2.2.2) Sales invoices of identical exported goods or similar exported goods issued or permitted for use by the Ministry of Finance; or/and

2.2.3) Documents used to convert to FOB prices or DAF prices for determining the taxable value.

Article 11. Taxable value for exported goods without an official price at the time of registering the customs declaration

1) For exported goods without an official price at the time of registering the declaration due to the sales contract agreeing on the pricing date after the goods have been exported, the declarant shall declare a provisional price at the time of registration; declare the official price according to Form No. 5 issued together with this Circular and pay any difference in tax within ten days from the pricing date. The customs authority shall check the declarant's declaration, the pricing date, the conditions for accepting the pricing date, and carry out:

1.1) Handling excess tax paid according to the regulations on handling overpaid taxes under the Law on Tax Administration and guiding documents for cases where the tax calculated based on the official price is lower than the tax paid based on the provisional price;

1.2) Issuing a decision to impose administrative penalties for cases where the declarant fails to declare the official price within the time limit stipulated in Clause 1 of this Article;

1.3) Determining the taxable value, fixing the tax, collecting the full amount of tax, late payment penalties (if applicable), and issuing a decision to impose administrative penalties for cases where the declarant does not declare or declares incorrectly the official price.

2) The maximum pricing date is ninety days from the date of registering the customs declaration for exported goods. If the pricing date exceeds ninety days from the date of registering the declaration, the Director of the Customs Department of the provinces and cities shall base on the dossier, documents, and actual situation of the exported consignment to examine and decide on the acceptance of the pricing date recorded in the contract.

3) The pricing date will be accepted if it meets all of the following conditions:

3.1) The sales contract has agreed on a pricing date suitable for the exported commodity;

3.2) The actual pricing date is consistent with the pricing date agreed upon in the contract;

3.3) The official price is consistent with the actual payment price of the exported goods as shown in the payment documents.

In cases where the conditions for accepting the pricing date are not met, and the tax calculated based on the official price is higher than the tax paid based on the provisional price, the declarant must pay late payment penalties for the difference in tax.

Section 2

DETERMINATION OF TAXABLE VALUE FOR IMPORTED GOODS

Article 12. Principles and Methods for Determining Tax Value

1) Principle: The tax value of imported goods is the actual price paid up to the first port of entry.

2) Method of determination: The actual price paid up to the first port of entry is determined by sequentially applying six methods for determining the tax value as provided in Articles 13, 15, 16, 17, 18, and 19 of this Circular and stopping at the method that determines the tax value (except for cases where the tax value is determined according to the provisions of Article 20 of this Circular). These methods include:

2.1) Transaction Value Method;

2.2) Identical Goods Transaction Value Method;

2.3) Similar Goods Transaction Value Method;

2.4) Deduction Value Method;

2.5) Computed Value Method;

2.6) Residual Method.

In case the declarant requests in writing, the sequence of applying the deduction value method and the computed value method may be interchanged.

Article 13. Transaction Value Method

The tax value of imported goods must first be determined based on the transaction value.

The transaction value is the price actually paid or payable by the buyer to the seller for the imported goods, adjusted according to the provisions of Article 14 of this Circular.

The actual amount paid or payable is determined by the total amount of money paid or payable directly or indirectly by the buyer to the seller for the imported goods.

1) The transaction value shall be applied if it satisfies all of the following conditions:

1.1) The buyer is not restricted in disposing of or using the goods after importation, except for the following restrictions:

1.1.1) Restrictions prescribed by Vietnamese law, such as requirements for imported goods to be labeled in Vietnamese, conditional imported goods, or imported goods subject to inspection before clearance;

1.1.2) Restrictions on the place of consumption of the goods;

1.1.3) Other restrictions that do not affect the value of the goods.

These restrictions are factors directly or indirectly related to the imported goods but do not increase or decrease the actual payment price for those goods.

Example: The seller of a car requires the buyer not to sell or display the imported car before introducing the model to the market.

1.2) The price or sale of the goods does not depend on conditions or payments that cannot determine the value of the goods to be taxed.

Example:

- The seller prices the imported goods with the condition that the buyer will also purchase a certain quantity of other goods.

- The price of imported goods depends on the price of other goods that the importer will resell to the exporter.

If the purchase or sale of goods or their prices depend on one or more conditions, but the buyer has objective evidence to determine the monetary impact of such dependence, then this condition is considered satisfied; when determining the tax value, the reduction amount due to the dependence must be added to the transaction value.

1.3) After reselling, transferring, or using the imported goods, excluding the amount specified in Point 1.2.6 Clause 1 of Article 14 of this Circular, the buyer does not have to pay any additional amount from the proceeds obtained from disposing of the imported goods.

1.4) The buyer and seller do not have a special relationship or if they do, such relationship does not affect the transaction value.

1.4.1) In case the buyer and seller have a special relationship but it does not affect the transaction value, the declarant must declare this fact.

1.4.2) Based on available information, if the customs authority suspects that the special relationship affects the transaction value, it must immediately notify the declarant in writing according to Form No. 1 issued together with this Circular on the day of declaration registration or the next working day.

1.4.3) The customs authority must facilitate the declarant's right to consult, explain, and provide additional relevant information to clarify the special relationship between the buyer and seller, as stated in Point 1.4.4 Clause 1 of this Article, which does not affect the transaction value of the imported goods.

1.4.4) The special relationship between the buyer and seller does not affect the transaction value if it meets one of the following two conditions:

1.4.4.1) Although there is a special relationship, the transaction is conducted as if it were with buyers without such a relationship:

- Example:

+ The price of the imported goods is negotiated and agreed upon in the commercial contract in a manner consistent with the usual negotiation and pricing practices of the industry or in a way that the seller offers the price to other buyers without a special relationship.

+ The price of the imported goods includes common costs and profits corresponding to the common costs and profits of selling goods of the same grade or type.

The customs authority must examine how the buyer and seller establish the trading relationship and negotiate to reach the declared price, thereby concluding whether the declared price is affected by the special relationship.

1.4.4.2) Or the transaction value is approximately equal to one of the following values of the consignment exported to Vietnam on the same day or within 60 days before or after the export date of the consignment being examined:

- The tax value determined by the identical or similar goods transaction value method sold to another importer who does not have a special relationship with the exporter (seller);

- The tax value of identical or similar goods determined by the deduction value method as stipulated in Article 17 of this Circular;

- The tax value of identical or similar goods determined by the computed value method as stipulated in Article 18 of this Circular.

1.4.4.3) The values for tax purposes specified in point 1.4.4.2 of this clause are only for comparison purposes and must adjust the tax value of identical imported goods, similar imported goods under the same purchase conditions as the imported goods being proven:

a) Adjustment under the same purchase conditions: The adjustment of the tax value of identical imported goods, similar imported goods under the same purchase conditions as the consignment being proven shall be carried out according to the guidance provided in point 2.2 of Clause 2, Article 16 of this Circular.

b) Adjustment of amounts to be added or subtracted according to the guidance provided in Article 14 of this Circular.

2) The transaction value includes the following items:

2.1) The purchase price recorded on the commercial invoice;

2.2) Adjustments made according to the guidance provided in Article 14 of this Circular;

2.3) Amounts that the buyer must pay but are not included in the purchase price recorded on the commercial invoice, including:

2.3.1) Advance payments, prepayments, deposits for production, purchase, transportation, and insurance of goods;

2.3.2) Indirect payments to the seller such as amounts paid by the buyer to a third party at the seller's request; amounts paid through offsetting debts.

3) Determining the tax value for goods containing imported software:

3.1) The tax value is the actual amount paid or to be paid for the imported intermediate goods, excluding the value of the software used in data processing devices it contains, provided that on the commercial invoice, the value of the software is separated from the value of the intermediate goods;

3.2) The tax value is the actual amount paid or to be paid for the imported goods, including the value of the software and costs to record or install the software on the imported goods, if any of the following circumstances apply:

3.2.1) On the commercial invoice, the value of the software is not separated from the value of the intermediate goods;

3.2.2) The actual amount paid or to be paid for the related software includes adjustments to be added as prescribed in Article 14 of this Circular;

3.2.3) The software is recorded, installed, or integrated into imported goods that are not intermediate goods.

4) Documents and materials to determine the value according to this method include:

4.1) Documents and materials proving special relationships that do not affect the transaction value (if any);

4.2) Documents and materials related to amounts that the buyer must pay but are not included in the purchase price recorded on the commercial invoice (if any);

4.3) Documents and materials related to additions (if there are additions);

4.4) Documents and materials related to deductions (if there are deductions);

4.5) Other documents and materials related to determining the tax value based on the transaction value declared by the customs declarant.

Article 14. Adjustments

1) Additions:

1.1) Conditions for additions: Only additions when all of the following conditions are met:

1.1.1) Paid by the buyer and not included in the actual amount paid or to be paid;

1.1.2) Must relate to imported goods;

1.1.3) Have objective, quantifiable data consistent with relevant legal documents.

In cases where the consignment of imported goods has additions but lacks objective, quantifiable data to determine the tax value, it shall not be determined based on the transaction value and must switch to the next method.

1.2) Additions include:

1.2.1) Sales commission costs, brokerage fees. If these costs include taxes payable in Vietnam, they shall not be added to the tax value of the imported goods.

1.2.2) Packaging costs considered to be inseparable from the imported goods, including: Purchase price of packaging, other costs related to purchasing and transporting packaging to the packing location, storage of goods.

Types of containers, boxes, racks used as means of packaging for cargo transport and reused multiple times shall not be considered as inseparable packaging and therefore are not additions to packaging costs.

1.2.3) Packaging costs, including the following items:

1.2.3.1) Costs of packaging materials including the purchase price of packaging materials and other costs related to purchasing and transporting packaging materials to the packaging location.

1.2.3.2) Labor costs for packaging, including wages for labor and other costs related to hiring labor for packaging the goods whose tax value is being determined.

If the buyer must bear living and travel expenses for workers during the packaging period, these costs also belong to labor costs for packaging.

1.2.4) Assistance: The value of goods and services provided free of charge or at a discount by the buyer directly or indirectly to the producer or seller to produce and sell exported goods to Vietnam.

1.2.4.1) Assistance includes:

a) Raw materials, components, spare parts, and similar products incorporated into imported goods.

b) Raw materials, materials, fuel consumed in the production of imported goods.

c) Tools, equipment, molds, dies, patterns, and similar products used to produce imported goods.

d) Design drawings, technical drawings, artistic designs, implementation plans, construction designs, sample designs, diagrams, sketches, and similar service products produced abroad and necessary for the production of imported goods.

1.2.4.2) Determining the value of assistance:

a) If the assisting goods or services are purchased from a person without a special relationship to provide to the seller, the value of the assistance is the purchase price of the assisting goods or services.

b) If the assisting goods or services are produced by the importer or a person with a special relationship to the importer to provide to the seller, the value of the assistance is the production cost of the assisting goods or services.

c) If goods or services provided are produced by the buyer's production facility located abroad but there are no documents or records to account for these goods or services separately, then the value of the assistance shall be determined by allocating the total production costs of that facility during the same period to the quantity of goods or services provided.

d) The value of assistance provided through leasing or borrowing shall be the cost of leasing or borrowing.

e) In the case where the assistance is used goods, the value of the assistance shall be the remaining value of such goods.

g) Where goods provided as assistance are processed or manufactured by the buyer before being transferred to the seller for use in producing imported goods, the increased value due to processing or manufacturing must be added to the value of the assistance.

h) Where the buyer and seller reduce the price for the exporter, the reduced value must be added to the taxable value.

i) After producing imported goods, if surplus raw materials or waste materials are obtained from the goods provided as assistance, the recovered value from these surplus raw materials or waste materials shall be deducted from the value of the assistance, provided there are data showing the value of the waste materials or surplus raw materials.

The value of assistance includes all related costs associated with purchasing, transporting, and insuring the goods until they reach the place of production of the imported goods.

1.2.4.3) Allocation of the value of assistance to imported goods.

a) Principles for allocating the value of assistance.

a.1) The value of assistance must be fully allocated to imported goods;

a.2) The allocation must be documented in legal records;

a.3) The allocation must comply with accounting regulations and standards in Vietnam.

b) Methods for allocating the value of assistance:

The declarant allocates the assistance to the imported goods according to one of the following methods:

b.1) Allocate to the quantity of imported goods in the first import shipment;

b.2) Allocate based on the number of units of goods produced up to the time of the first import shipment;

b.3) Allocate to the entire expected production according to the sales agreement between the buyer and the seller (or producer);

b.4) Allocate according to a declining or increasing principle;

b.5) In addition to the above methods, the buyer may use other allocation methods, provided they comply with accounting regulations and are documented in legal records.

1.2.5) Royalty fees, license fees:

1.2.5.1) Conditions for adjustment to include: Only included when all of the following conditions are met:

a) Paid for the use of intellectual property rights related to the imported goods whose transaction value is being determined;

Example: An importer purchases a Betacam tape containing film content, and according to the agreement between the importer and exporter, the importer pays royalties to broadcast the film for a certain period and number of times. In this case, the imported goods are Betacam tapes, and the royalty fee is paid for using the film content contained in the tape, not for the imported Betacam tape itself, so this royalty fee does not need to be included in the transaction value of the imported goods, which are Betacam tapes.

b) Paid directly or indirectly by the buyer as a condition for the sale of the goods whose transaction value is being determined, meaning the buyer pays the royalty fee or license fee as part of the purchase of imported goods.

c) Not included in the actual price already paid or to be paid for the imported goods whose transaction value is being determined.

1.2.5.2) Not included in the taxable value in the following cases:

a) Fees paid by the buyer for the right to reproduce imported goods or copy artistic works in Vietnam.

b) Fees paid by the buyer for the right to distribute or resell imported goods, unless such payment is a condition specified in paragraph b of point 1.2.5.1 of this section for the sale of imported goods.

If the fees for reproducing, distributing, or reselling imported goods have been included in the actual price already paid or to be paid, they cannot be deducted from the taxable value of the imported goods.

1.2.5.3) Basis for determination: Payment receipts for royalty fees, license fees, or other legal documents reflecting the obligation to pay these fees.

1.2.5.4) Time of determination:

a) When royalty fees or license fees can be determined at the time of declaration, the declarant shall declare the royalty fees or license fees in the corresponding fields on the valuation declaration form, self-determine the value, calculate and pay taxes according to the regulations;

b) When royalty fees or license fees cannot be determined at the time of declaration due to dependence on post-importation sales revenue or other reasons specified in the sales contract or separate agreement regarding the payment of royalty fees or license fees, the declaration and inspection procedures shall be carried out as follows:

b.1) For the declarant:

b.1.1) At the time of declaration, clearly report the reason for not declaring the royalty fees or license fees in the corresponding fields on the valuation declaration form;

b.1.2) Declare, calculate the tax payable for the actual royalty fees or license fees paid according to Form No. 5 issued together with this Circular, and pay the full tax within 10 days from the date of actual payment of the royalty fees or license fees in accordance with the sales contract or separate agreement. The tax calculation date is the date the declarant registers the customs declaration.

b.2) For the customs authority:

b.2.1) Check relevant documents and the declaration content of the declarant as stipulated in paragraph b.1 of point 1.2.5.4 of this section;

b.2.2) Determine the taxable value, impose taxes, collect the full amount of tax and late payment penalties (if applicable), and issue administrative violation penalty decisions for cases where the declarant fails to declare or incorrectly declares the actual royalty fees or license fees payable.

b.2.3) Issue a decision to impose administrative penalties against the declarant for failing to report accurately within the time limit specified in sub-item b.1 point 1.2.5.4 of this clause regarding the actual copyright fees and license fees payable.

c) In cases where copyright fees and license fees are partially included in the imported goods and partially based on factors unrelated to the imported goods, then:

c.1) Add to the transaction value if there are objective, quantifiable data that can clearly distinguish and separate the copyright fees and license fees related to the imported goods.

c.2) Do not determine the taxable value using the transaction value method and must switch to the next method if it is not possible to clearly distinguish and separate the copyright fees and license fees related to the imported goods.

1.2.6) Any amounts that the importer must pay from the proceeds obtained after reselling, disposing of, or using the imported goods, which are directly or indirectly transferred to the seller in any form. The declaration and inspection procedures shall be carried out as follows:

1.2.6.1) If the amount can be determined at the time of registration of the declaration, the declarant shall declare the amount on the corresponding section of the valuation declaration form, self-determine the value, calculate and pay taxes according to regulations;

1.2.6.2) If the amount cannot be determined at the time of registration due to its dependency on post-import sales revenue or other reasons specified in the purchase and sale contract or separate agreement, then:

a) For the declarant:

a.1) At the time of registering the declaration, clearly state the reason for not declaring the amount that the importer must pay from the proceeds obtained after reselling, disposing of, or using the imported goods on the corresponding section of the valuation declaration form;

a.2) Declare and calculate the tax payable for the actual fees paid according to Form No. 5 issued together with this Circular, and pay the full tax within ten days from the date of actual payment in accordance with the purchase and sale contract or separate agreement. The tax calculation date is the date when the declarant registers the customs declaration.

b) For the customs authority:

b.1) Check relevant documents and declarations made by the declarant as stipulated in point a of this clause;

b.2) Determine the taxable value, fix the tax, collect the full tax amount, and issue a decision to impose administrative penalties against the declarant who fails to declare or declares inaccurately the actual fees payable;

b.3) Issue a decision to impose administrative penalties against the declarant who fails to declare accurately within the time limit specified in point a of this clause regarding the actual amount payable from the proceeds obtained after reselling, disposing of, or using the imported goods.

1.2.7) Transportation costs and all other costs directly related to the transportation of imported goods until they reach the first port of entry:

1.2.7.1) The costs mentioned herein include: loading, unloading, stowage, and transportation costs of goods, old vessel surcharges, costs of leasing various types of containers, boxes, and supports used as packaging means for transporting goods and reused multiple times.

1.2.7.2) The costs mentioned herein do not include:

a) Loading, unloading, and stowage costs from the transport vehicle to the first port of entry if these costs are separately listed from international transportation costs (F). If these costs are included in international transportation costs or have been or will be paid as part of the actual price, they cannot be deducted from the taxable value of the imported goods.

b) Other costs arising after the imported goods are unloaded and stowed at the first port of entry.

1.2.7.3) The value of this adjustment is determined based on the transportation contract, relevant documents, and materials related to the transportation of goods.

1.2.7.4) If a consignment contains different types of goods but the transportation contract or relevant documents and materials related to the transportation of goods do not specify details for each type of goods, the declarant shall allocate these costs to each type of goods using the following priority allocation methods:

a) Allocate based on the carrier's freight rate schedule;

b) Allocate according to the weight or volume of the goods;

c) Allocate according to the ratio of the purchase value of each type of goods to the total consignment value.

1.2.7.5) If the purchase price does not include transportation costs and the buyer has no valid transportation contract or relevant documents and materials, or has them but they are not legal, the transaction value method shall not be applied.

1.2.8) Insurance costs for imported goods up to the first port of entry.

1.2.8.1) If the importer does not purchase insurance for the goods, this cost shall not be added to the taxable value.

1.2.8.2) If insurance fees are purchased for a consignment containing different types of goods without specifying details for each type of goods, allocate the fees according to the value of each type of goods.

1.2.9) Costs mentioned in points 1.2.7 and 1.2.8 of this clause, if already including value-added tax payable in Vietnam, shall not be added to the taxable value.

2) Deduction adjustments:

2.1) Conditions for deduction adjustments: Deduction adjustments are only allowed if all the following conditions are met:

2.1.1) There are objective, quantifiable data consistent with relevant legal documents available at the time of determining the value;

2.1.2) Already included in the actual price paid or to be paid;

2.1.3) Comply with Vietnamese accounting laws.

2.2) Types of deduction adjustments:

2.2.1) Costs for activities occurring after the importation of goods, including construction, architectural, installation, maintenance, technical assistance, technical advisory, supervision, and similar costs.

2.2.2) Transportation costs and insurance costs arising after the goods have been transported to the first point of entry. In cases where these costs relate to different types of goods but are not detailed for each type of goods, they must be allocated according to the principles set out in points 1.2.7 and 1.2.8 of Clause 1 of this Article.

2.2.3) Taxes, fees, and charges payable in Vietnam that are included in the purchase price of imported goods. Where such fees and charges relate to different types of goods and cannot be directly determined for each type of goods, they shall be allocated in proportion to the purchase value of each type of goods over the total value of the consignment.

2.2.4) Discount amount:

2.2.4.1) Conditions for deducting the discount amount: Such deduction may only be adjusted if all of the following conditions are met:

a) The discount amount falls under one of the following types of discounts:

a.1) Trade level discount based on the transaction of buying and selling goods;

a.2) Quantity discount based on the volume of goods bought and sold;

a.3) Payment term discount based on the form and time of payment.

b) The discount is documented in writing before the goods are loaded onto the means of transport in the exporting country;

c) There are objective data quantifiable and consistent with legal documents to separate this discount from the transaction value. These documents must be submitted together with the customs declaration;

d) Payment is made through a bank using either a Letter of Credit (L/C) or Trust Receipt (TTR) method for the entire imported goods under the sales contract;

e) The declared value and actual quantity of imported goods; trade level; form and time of payment must correspond with the Seller's Discount Announcement.

2.2.4.2) Procedures for declaring and inspecting the discount amount:

a) For the declarant:

a.1) Declare the discount amount at the corresponding item on the valuation declaration form, but do not yet adjust the deduction of the discount amount on the valuation declaration form;

a.2) Calculate and pay taxes based on the price before the discount amount is deducted;

a.3) Submit a request for review to deduct the discount amount upon completion of importation and payment for the entire goods under the contract, including the following documents:

a.3.1) A request for deduction of the discount amount after completing the importation and payment for the entire goods under the contract (original);

a.3.2) A list tracking the actual importation of goods under the contract according to Form No. 6 issued together with this Circular (original) for cases where goods under the same contract are imported in multiple shipments (different declarations);

a.3.3) The seller's discount announcement based on the quantity of goods traded; or the trade level of the transaction of buying and selling goods; or the form and time of payment;

a.3.4) All customs declarations of imported goods under the contract and accompanying customs files;

a.3.5) Payment documents for the entire goods under the contract.

b) For the customs authority:

The Director of the General Department of Customs of the province or city where the declarant submits the request for review to deduct the discount amount is responsible for:

b.1) Checking the documents and related materials attached to the declarant's request;

b.2) Verifying and comparing the declared value and actual quantity; trade level; form and time of payment with the seller's discount announcement;

b.3) Considering and deciding to adjust the deduction of the discount amount if all conditions stipulated in point 2.2.4.1 of this clause are met, with the discount amount not exceeding 5% of the total value of the consignment. If the discount amount exceeds 5% of the total value of the consignment, then propose, report, and send the entire file to the General Administration of Customs for instructions before deciding to adjust or not adjust the deduction of the discount amount;

b.4) Handling excess tax due to the deduction of the discount amount according to the regulations on handling excess tax payments under the Law on Tax Administration.

2.2.5) Costs borne by the buyer related to marketing imported goods, including:

2.2.5.1) Costs for researching and investigating the market regarding products to be imported;

2.2.5.2) Costs for advertising the brand and trademark of imported goods;

2.2.5.3) Costs related to displaying and introducing new imported products;

2.2.5.4) Costs for participating in trade fairs and exhibitions about new products;

2.2.5.5) Costs for checking quantity and quality of goods before importation. In cases where these costs are agreed between the buyer and seller and are part of the actual or future payment made by the buyer to the seller, they will not be deducted from the transaction value;

2.2.5.6) Costs for opening a Letter of Credit to pay for the imported consignment, if these costs are paid by the buyer to the bank representing the buyer to make the payment.

2.2.6) Interest amount corresponding to the interest rate agreed upon in the financial agreement between the buyer and relevant to the purchase of imported goods: Such deduction from the transaction value can only be adjusted if all of the following conditions are met:

2.2.6.1) The financial agreement is documented in writing;

2.2.6.2) The declarant proves that at the time the financial agreement was executed, the declared interest rate did not exceed the usual credit interest rate in the exporting country, but does not exceed the ceiling interest rate announced by the State Bank of Vietnam;

2.2.6.3) There are objective, quantifiable data to deduct the interest amount from the transaction value.

Article 15. Method of transaction value for identical imported goods

If the taxable value of imported goods cannot be determined according to the transaction value method prescribed in Article 13 of this Circular, then the taxable value of such imported goods shall be determined according to the method of transaction value for identical imported goods.

The method of transaction value for identical imported goods shall be implemented as prescribed in Article 16 of this Circular, with the phrase "similar imported goods" being replaced by the phrase "identical imported goods".

Article 16. Method of transaction value for similar imported goods

1. If the taxable value of imported goods cannot be determined according to the methods prescribed in Articles 13 and 15 of this Circular, then the taxable value of such imported goods shall be determined according to the method of transaction value for similar imported goods, provided that the similar imported goods have been accepted by the customs authority to determine the taxable value according to the transaction value method and have the same purchase conditions and export time period as the imported goods whose taxable value is being determined under Clause 2 of this Article.

In case similar imported goods with the same purchase conditions as the imported goods whose taxable value is being determined cannot be found, then other similar imported goods with different purchase conditions must be selected but must be adjusted to the same purchase conditions.

2. Conditions for selecting similar imported goods:

Similar imported goods can be selected if they meet the following conditions:

2.1. Export time condition:

Similar imported goods must be exported to Vietnam on the same day or within a period of 60 days before or after the export date of the imported goods whose taxable value is being determined.

2.2. Purchase conditions:

2.2.1. Trade level and quantity conditions:

2.2.1.1. Similar imported goods must have the same trade level and quantity as the imported goods whose taxable value is being determined;

2.2.1.2. If similar imported goods as described in Point 2.2.1.1 cannot be found, then similar imported goods with the same trade level but different quantities must be selected, followed by adjusting the transaction value of the similar imported goods to the same quantity as the imported goods whose taxable value is being determined;

2.2.1.3. If similar imported goods as described in Points 2.2.1.1 and 2.2.1.2 cannot be found, then similar imported goods with different trade levels but the same quantity must be selected, followed by adjusting the transaction value of the similar imported goods to the same trade level as the imported goods whose taxable value is being determined;

2.2.1.4. If similar imported goods as described in Points 2.2.1.1, 2.2.1.2, and 2.2.1.3 cannot be found, then similar imported goods with both different trade levels and quantities must be selected, followed by adjusting the transaction value of the similar imported goods to the same trade level and quantity as the imported goods whose taxable value is being determined.

2.2.2. Transport distance and transportation mode, insurance conditions:

The similar imported consignment has the same distance and mode of transport, or has been adjusted to the same distance and mode of transport as the consignment being determined for customs value.

If there is a significant difference in insurance fees, then it must be adjusted to the same insurance conditions as the imported goods whose taxable value is being determined.

2.3. When applying the method of transaction value for similar imported goods, if similar imported goods produced by the same manufacturer or authorized manufacturer cannot be found, then imported goods produced by another manufacturer with the same origin must be considered.

2.4. When determining the taxable value according to this method, if two or more transaction values of similar imported goods are identified, after adjusting to the same purchase conditions as the imported goods whose taxable value is being determined, the taxable value will be the lowest transaction value.

If during the customs clearance process, sufficient information to select identical or similar imported goods to the imported goods whose taxable value is being determined is not available, then the taxable value of the imported goods shall not be determined according to the guidance in Article 15 or Article 16 of this Circular, and the next method must be applied instead.

3. Documents and materials to determine the taxable value according to this method include:

3.1. Customs declaration and valuation declaration of similar imported goods;

3.2. Transportation contract of similar imported goods (if there is adjustment of these costs);

3.3. Insurance contract of similar imported goods (if there is adjustment of these costs);

3.4. Export sales price list of the manufacturer or foreign seller (if there is adjustment regarding quantity and trade level);

3.5. Other necessary and relevant legal documents and certificates related to the determination of the taxable value.

Article 17. Deduction Value Method

1) If the taxable value of imported goods cannot be determined according to the methods prescribed in Articles 13, 15, and 16 of this Circular, the taxable value of such goods shall be determined based on the deduction value method, calculated from the selling price of the imported goods, identical imported goods, or similar imported goods on the domestic market of Vietnam, minus (-) reasonable costs and profits obtained after selling the imported goods.

This method shall not be applied if the goods selected to determine the selling price fall under any of the following circumstances:

- Not yet sold on the domestic market of Vietnam or the sale has not been recorded in accounting documents and books in accordance with Vietnamese accounting laws;

- Related to assistance provided by any person as stipulated in point 1.2.4.1 Clause 1 Article 14 of this Circular.

2) Conditions for selecting the selling price on the Vietnamese market:

2.1) The selling price on the Vietnamese market must be the selling price of the imported goods being determined for taxable value, identical imported goods, or similar imported goods, sold in their original condition upon importation.

2.2) The selected selling price must correspond to the largest cumulative quantity of goods sold, sufficient to form a price; the goods are sold immediately after importation but not more than 90 days after the date of importation of the goods being determined for taxable value; the buyer and seller have no special relationship.

Example: Lot A includes various items, among which item B needs to be determined for taxable value using the deduction method. Lot A was imported on January 1, 2005. Another lot containing an identical item to item B was imported earlier and sold domestically at different prices and times as follows:

In the above example, the selling price chosen for deduction is 800 VND per piece, corresponding to the largest quantity sold (450 pieces), sufficient to form a price. This price meets the conditions for selecting the selling price, namely:

- Largest cumulative quantity (450 pieces).

- Sale time within 90 days from the date of importation.

3) Principles of Deduction:

Determining the deductions must be based on accounting records, legal documents, available and recorded according to Vietnamese accounting regulations and standards.

The deductions must be those permitted to be included in the enterprise's reasonable costs under Vietnamese accounting laws.

4) Items Deducted from the Selling Price:

The items deducted from the selling price are reasonable costs and profits obtained after selling the goods on the Vietnamese market, including the following:

4.1) Transportation costs, insurance fees, and other expenses related to transporting goods after importation, specifically:

4.1.1) Transportation costs, insurance fees, and other expenses related to transporting goods from the first port of entry to the importer's warehouse or delivery location within Vietnam;

4.1.2) Transportation costs, insurance fees, and other expenses related to transporting goods from the importer's warehouse within Vietnam to the sales location, if the importer bears these costs.

4.2) Taxes, fees, and charges payable in Vietnam when importing and selling imported goods on the domestic market of Vietnam.

4.3) Commissions or common expenses and profits related to selling imported goods in Vietnam.

4.3.1) In cases where the importer acts as an agent for foreign traders, the commission amount is deducted. If the commission already includes the expenses mentioned in points 4.1 and 4.2 of this clause, these expenses shall not be deducted again.

4.3.2) In cases of purchase and sale transactions, common expenses and profits are deducted: Common expenses and profits must be considered comprehensively when determining the deduction value. The determination and allocation of common expenses and profits for imported lots must comply with Vietnamese accounting regulations and standards.

Common expenses include direct and indirect costs serving the importation and sale of goods on the domestic market, such as marketing costs, storage and preservation costs before sale, management activity costs serving importation and sale,...

The basis for determining deductions is the data recorded and reflected in the importer's accounting documents, consistent with Vietnamese accounting regulations and standards. This data must correspond to the data obtained from the activities of purchasing and selling imported goods of the same grade or type in Vietnam.

5) For goods sold without remaining in their original condition upon importation:

5.1) If the selling price of goods sold in their original condition upon importation cannot be found, the selling price of imported goods that have undergone additional processing or manufacturing within the country will be taken, minus the processing and manufacturing costs that increase the value of the goods, provided that the increased costs due to additional processing or manufacturing within the country and the costs mentioned in Clause 4 can be quantified. If these costs cannot be separated from the selling price, the deduction value method shall not be applied and the next method shall be used instead.

5.2) If after processing or manufacturing, the imported goods retain their characteristics, properties, and functions as when imported but are only part of the goods sold on the domestic market, the deduction value method shall not be applied and the next method shall be used instead.

5.3) If after processing or manufacturing, the imported goods change their characteristics, properties, and functions and are no longer recognizable as the originally imported goods, the deduction value method shall not be applied and the next method shall be used instead.

6) Documents and materials to determine the customs value according to this method include:

6.1) Sales invoices issued by the Ministry of Finance or permitted for use;

6.2) Agency sales contracts if the importer is an agent for the exporter. This contract must specify in detail the commission fees that the agent receives and the types of expenses that the agent must pay;

6.3) An explanation of sales revenue and accounting records reflecting the expenses specified in Clause 4 of Article 14 of this Circular;

6.4) Customs declaration forms and valuation declaration forms of the selected consignment to be deducted;

6.5) Other necessary documents for inspection and determination of the customs value.

Article 18. Computed Value Method

1) If it is not possible to determine the customs value according to the methods prescribed in Articles 13, 15, 16, and 17 of this Circular, the customs value of imported goods shall be determined according to the computed value method. The computed value of imported goods includes the following items:

1.1) Direct costs for producing imported goods: Cost price or value of raw materials, production process costs, or other processing costs used in producing imported goods. These costs include the following:

1.1.1) Costs as stipulated in Points 1.2.1, 1.2.2, and 1.2.3 of Clause 1 of Article 14 of this Circular;

1.1.2) Value of assistance as guided at Point 1.2.4.1 of Clause 1 of Article 14 of this Circular;

1.1.3) Only the value of assistance products as stipulated in Item d of Point 1.2.4.1 of Clause 1 of Article 14 implemented in Vietnam shall be included in the customs value if the producer bears the cost of these assistance products.

1.2) Common costs and profit arising from selling goods of the same grade or type as the imported goods being valued, produced in the exporting country for sale to Vietnam. Profit and common costs must be considered comprehensively when determining the computed value.

Common costs include all direct or indirect costs of the production and sales processes for exporting goods, but not calculated according to the guidance provided in Point 1.1 of this clause.

1.3) Transportation costs, insurance costs, and related costs for transporting imported goods as guided in Points 1.2.7 and 1.2.8 of Clause 1 of Article 14 of this Circular.

2) Basis for determining the computed value:

Is the data recorded and reflected on accounting documents of the producer, except where such data does not correspond with data collected in Vietnam. Such data must correspond with those obtained from production and trading activities of imported goods of the same grade or type produced by the producer in the exporting country for export to Vietnam.

3. Documents and materials to determine the taxable value according to this method include:

3.1) A statement by the producer regarding the costs mentioned in Points 1.1 and 1.2 of Clause 1 of this Article, accompanied by a certified copy by the producer of relevant documents and accounting data consistent with this statement;

3.2) Sales invoices of the producer;

3.3) Documents regarding the costs mentioned in Point 1.3 of Clause 1 of this Article.

Article 19. Deductive Value Method

1) If it is not possible to determine the customs value according to the methods prescribed in Articles 13, 15, 16, 17, and 18 of this Circular, the customs value shall be determined according to the deductive value method based on objective documents and data available at the time of determining the customs value.

The customs value determined by the deductive value method is established by sequentially and flexibly applying the methods for determining the customs value prescribed in Articles 13, 15, 16, 17, and 18 of this Circular and stopping immediately upon determining the customs value, provided that such application complies with the provisions of Clause 2 of this Article.

2) When determining the customs value according to this method, the declarant and the customs authority shall not use the following values to determine the customs value:

2.1) Domestic market selling price of similar domestically produced goods.

2.2) Selling price of goods in the domestic market of the exporting country.

2.3) Selling price of goods exported to another country.

2.4) Production costs of goods, except production costs of goods used in the computation method.

2.5) Minimum customs value.

2.6) Prescribed or assumed prices.

2.7) Using the higher of two substitute values as the customs value.

3) Some examples of flexible application of methods for determining the customs value:

3.1) Applying the transaction value method for identical imported goods or similar imported goods.

If there are no identical or similar imported goods exported to Vietnam on the same day or within 60 days before or after the export date of the consignment being valued, then select identical or similar imported goods exported within a longer period, but not exceeding 90 days before or after the export date of the consignment being valued.

3.2) Applying the deductive value method through one of the following ways:

3.2.1) Within 90 days from the import date, if the deduction unit price cannot be determined, choose the unit price sold with the largest cumulative quantity within 120 days from the import date of the consignment selected for deduction.

3.2.2) If there is no resale price of the imported goods themselves or of identical or similar imported goods to non-related buyers, choose the resale price of goods sold to related buyers, provided that the special relationship does not affect the transaction price.

3.3) The customs value of imported goods is determined by the customs value of identical imported goods already determined by the deductive value method or the computed value method.

3.4) The taxable value of imported goods shall be determined based on the taxable value of similar imported goods that has been established according to the subtraction method or the valuation method.

4) In addition to the examples provided in Clause 3 of this Article, the flexible application of methods for determining the taxable value shall be carried out based on price databases and legitimate objective documents, but shall not violate the provisions of Clause 2 of this Article.

5) Documents: Shall include all relevant documents related to the determination of the taxable value under this method.

Article 20. Taxable Value of Imported Goods in Certain Special Cases

1) For goods whose intended use has changed from the originally determined non-taxable, tax-exempt, or tax-exemption considered status, the taxable value shall be determined as follows:

1.1) Goods used in Vietnam: The import taxable value shall be determined based on the remaining value of the goods, calculated according to the period of use in Vietnam (from the time of import declaration to the time of taxation), and shall be specifically determined as follows:

If the declared import price of goods subject to non-taxation, tax exemption, or tax-exemption consideration is lower than the price in the price database at the same time, then the price in the price database and the above percentage shall be used to determine the taxable value.

1.2) Goods not used in Vietnam: The taxable value shall be determined according to the principles and methods for determining the taxable value as stipulated in this Circular.

2) For scrap obtained during the production of processed goods for foreign parties, if the processing party sells it back to Vietnam, the taxable value shall be determined as follows:

2.1) Where there is a sales contract, the taxable value shall be determined according to the principles and methods for determining the taxable value as stipulated in this Circular.

2.2) Where there is no sales contract, the taxable value shall be determined according to the provisions of Clause 5 of this Article.

3) The taxable value of goods imported into Vietnam after being processed abroad is the processing fee and the value of raw materials used in the processing process, as shown in the processing contract and adjustments specified in Article 14 of this Circular. The value of materials and raw materials exported from Vietnam for processing shall not be included in the taxable value of the finished product.

4) For goods imported for repair abroad, when re-imported into Vietnam and subject to taxation, the taxable value is the actual repair cost paid according to the contract signed with the foreign party, consistent with legitimate documents related to the repair of the goods.

5) Imported goods without a sales contract:

5.1) Imported goods declared at a value of up to five million dong, the taxable value is the declared value. Where there is evidence to determine that the declared value is inappropriate, the taxable value shall be determined by the customs authority according to the principles and one of the methods for determining the taxable value as stipulated in this Circular.

5.2) Imported goods declared at a value over five million dong:

5.2.1) Imported goods by passengers entering the country; goods imported for the purpose of prizes in sports, cultural, and artistic competitions; goods as gifts, samples, and imported goods by postal service enterprises and express delivery services:

a) For imported goods such as machinery, equipment, and other goods valued at fifty million dong or more; imported goods such as cars and motorcycles: The taxable value shall be determined according to the principles and one of the methods for determining the taxable value as stipulated in this Circular.

b) For other goods not covered by point a of this clause, the taxable value is the declared value. Where there is evidence to determine that the declared value is inappropriate, the taxable value shall be determined by the customs authority according to the principles and one of the methods for determining the taxable value as stipulated in this Circular.

5.2.2) For imported goods such as warranty items, promotional items, and goods traded by border residents; other types without a sales contract, the taxable value shall be determined by the customs authority according to the principles and one of the methods for determining the taxable value as stipulated in this Circular.

6) Excess goods imported compared to the sales contract signed with foreign parties:

6.1) Excess goods identical or similar to those listed in the contract: The taxable value of excess goods shall be determined according to the method for determining the taxable value of the goods listed in the contract.

6.2) Excess goods different from those listed in the contract, if permitted to be imported, the taxable value shall be determined sequentially according to the methods for determining the taxable value as stipulated from Article 15 to Article 19 of this Circular, excluding the transaction value method.

7) Goods imported inconsistent with the sales contract signed with foreign parties:

7.1) Goods inconsistent in specifications, if permitted to be imported, the taxable value is the actual payment made for the imported goods. Goods inconsistent in specifications are understood as goods actually imported with differences in color, size, style compared to the description in the sales contract, and these differences do not affect the actual price paid.

7.2) For imported goods that do not comply with the sales contract for goods outside the cases stipulated in Point 7.1 of this Clause, if permitted to be imported, the taxable value shall be determined based on the sequential application of the methods for determining the taxable value as guided from Article 15 to Article 19 of this Circular, excluding the transaction value method.

8) For imported goods where there is a discrepancy in quantity compared to the commercial invoice due to the nature of the goods, consistent with the delivery terms and payment terms in the sales contract, when determining the taxable value, it must be based on the commercial invoice and the sales contract (delivery terms, tolerance ratio, natural characteristics of the goods, and payment terms). The taxable value shall not be lower than the actual amount paid recorded on the commercial invoice and related documents.

9) Imported goods entering Vietnam from bonded warehouses:

9.1) The taxable value shall be determined according to the principles and methods for determining the taxable value as guided in this Circular.

9.2) The export date shall be determined as follows:

9.2.1) The date of loading onto the transport vehicle recorded on the bill of lading for cases where the party bringing goods into the bonded warehouse directly imports the goods into Vietnam.

9.2.2) The date of declaration of the import customs declaration for goods from bonded warehouses into Vietnam for other cases.

10) For imported goods that are leased or borrowed, the taxable value is the actual price paid according to the contract signed with foreign countries, consistent with relevant legal documents concerning the leasing or borrowing of goods.

Chapter III

CHECKING THE TAXABLE VALUE

Section 1

CHECKING THE TAXABLE VALUE OF EXPORT GOODS IN THE COURSE OF CUSTOMS PROCEDURES

Article 21. Objectives, Principles of Inspection, Authority, Criteria for Building the Risk Management List for Export Goods Prices at the Department Level, and Sources of Information for Establishing Inspection Price Levels

1) Inspection Object: Customs declaration files or electronic customs declaration files, and related documents for determining the taxable value of export goods subject to file inspection or physical inspection.

2) Inspection Principle: Apply risk management principles regarding valuation.

The inspection of the taxable value of export goods shall be carried out based on inspecting goods listed in the Risk Management List for Export Goods Prices at the Department Level (hereinafter referred to as the Department-level Export Goods Risk List).

3) Authority to establish, adjust, and inspect the Department-level Export Goods Risk List:

3.1) The Director of the Provincial or Municipal Customs Department shall base on the management situation of export activities during each period and the actual export of goods to establish, adjust the Department-level Export Goods Risk List and set inspection price levels as the basis for inspecting declared values, and report to the General Department of Customs.

3.2) The Director of the General Department of Customs shall inspect and direct the Provincial or Municipal Customs Departments to modify and adjust the Department-level Export Goods Risk List in cases where the Department-level Export Goods Risk List does not match reality.

4) Criteria for building the Department-level Export Goods Risk List: Goods meeting any of the following criteria:

4.1) Unprocessed natural resources and mineral products subject to export tax rates, except crude oil.

4.2) Goods with potential for trade fraud.

5) Sources of information for establishing inspection price levels:

5.1) FOB prices, DAF prices of identical exported goods, similar exported goods.

5.2) Domestic market selling prices of identical exported goods, similar exported goods after deducting VAT, special consumption tax (if applicable), and legitimate costs incurred before exporting goods at the port of exit.

5.3) Other information collected by customs authorities after converting to FOB prices, DAF prices.

Article 22. Inspection and Handling of Inspection Results on Tax Value

1. Inspection of declared price level:

1.1. For goods listed in the Export Goods Risk List at the General Department level:

1.1.1. Content of inspection: Comparing the declared price with the inspected price in the Export Goods Risk List at the General Department level.

1.1.2. Handling of inspection results:

1.1.2.1. In cases where there is no doubt about the declared price, accept the declared price of the customs declarant.

1.1.2.2. In cases where there is doubt about the declared price, continue to implement procedures and file inspections as stipulated in Clause 2 of this Article.

1.2. For goods not listed in the Export Goods Risk List at the General Department level, accept the declared price of the customs declarant.

2. Inspection of procedures and files:

2.1. Content of inspection:

2.1.1. Inspect the legality of the sales contract for goods.

2.1.2. Inspect the consistency between the content of the sales contract for goods and the contents declared on the customs declaration form or electronic customs declaration form.

2.2. Handling of inspection results:

2.2.1. Determine the tax value if the sales contract for goods is illegal or there is inconsistency between the content of the sales contract for goods and the contents declared on the customs declaration form or electronic customs declaration form.

2.2.2. Accept the declared price of the customs declarant and transfer to the Post-Clearance Inspection force in cases where there is doubt about the legality of the file or the declared price is lower than the price in the Export Goods Risk List at the General Department level.

2.2.3. Accept the declared price of the customs declarant if the inspection result does not fall under the cases specified in Points 2.2.1 and 2.2.2 of this clause.

3. Cases of doubt about the declared price: Export goods with a declared price lower than the price specified in the Export Goods Risk List; or a declared price lower than the price of identical or similar export goods in the customs price database.

Section 2

INSPECTION OF TAX VALUE FOR IMPORT GOODS DURING CUSTOMS PROCEDURES

Article 23. Object, Principles, Authority, Criteria for Building the Import Goods Price Risk Management List at the General Department Level, Import Goods Price Risk Management List at the Department Level, and Sources of Information for Building Inspection Prices

1. Inspection object: Customs files or electronic customs files, documents related to determining the tax value of goods subject to file inspection or actual goods inspection.

2. Inspection principles: Apply risk management on tax value.

The inspection of import goods tax value is carried out based on inspecting goods listed in the Import Goods Price Risk Management List at the General Department level (hereinafter referred to as the General Department Import Goods Risk List) and the Import Goods Price Risk Management List at the Department level (hereinafter referred to as the Department Import Goods Risk List).

3. Authority to establish, adjust, supplement, and remove the General Department Import Goods Risk List and the Department Import Goods Risk List:

3.1. Authority of the General Department of Customs Director:

3.1.1. Establish and adjust the General Department Import Goods Risk List and accompanying inspection prices based on:

3.1.1.1. Criteria for establishing the General Department Import Goods Risk List as stipulated in Point 4.1, Clause 4 of this Article;

3.1.1.2. Management capacity and import situation of goods during each period nationwide;

3.1.1.3. Reports and proposals from provincial and city customs offices regarding the establishment and adjustment of the General Department Import Goods Risk List.

3.1.2. Supplement the General Department Import Goods Risk List with goods imported by 17 provincial and city customs offices that have been included in the Department Import Goods Risk List;

3.1.3. Remove goods from the General Department Import Goods Risk List that no longer meet the criteria for establishing the General Department Import Goods Risk List as stipulated in Point 4.1, Clause 4 of this Article;

3.1.4. Direct provincial and city customs offices to modify, supplement, and adjust the Department Import Goods Risk List when the Department Import Goods Risk List is inconsistent with reality.

3.2. Authority of the Provincial and City Customs Office Director:

3.2.1. Establish and adjust the Department Import Goods Risk List and accompanying inspection prices based on:

3.2.1.1. Criteria for establishing the Department Import Goods Risk List as stipulated in Point 4.2, Clause 4 of this Article;

3.2.1.2. Management capacity and import situation of goods during each period within their jurisdiction and trade fraud potential;

3.2.1.3. Instructions from the General Department of Customs on modifying, supplementing, and adjusting the Department Import Goods Risk List.

3.2.2. Supplement the Department Import Goods Risk List with goods removed from the General Department Import Goods Risk List by the General Department of Customs;

3.2.3. Remove goods from the Department Import Goods Risk List that have been included in the General Department Import Goods Risk List by the General Department of Customs or goods that no longer meet the criteria as stipulated in Point 4.2, Clause 4 of this Article;

3.2.4. Regularly propose and report to the General Department of Customs goods that need to be supplemented or adjusted in the General Department Import Goods Risk List and accompanying prices based on actively collecting, summarizing, and analyzing price data.

4. Criteria for building the Import Goods Risk List:

4.1. Criteria for building the General Department Import Goods Risk List: Imported goods with high value and preferential import tariff rates.

4.2. Criteria for building the Department Import Goods Risk List: Imported goods outside the General Department Import Goods Risk List meeting one of the following criteria:

4.2.1. High value and preferential import tariff rates;

4.2.2. Large import volume, regular imports, and import tariffs;

4.2.3. Potential for trade fraud.

5) Sources of information for establishing inspection price levels:

5.1. Price information sources from import declarations made by enterprises or determined by customs authorities;

5.2. Price information sources from export offers from exporters;

5.3. Price information sources from domestic market sales prices;

5.4) Sources of information from industry associations' organizations;

5.5) Sources of information from the Internet, magazines, newspapers, books;

5.6) Sources of information from domestic agencies and organizations such as: Information from the domestic tax authority; information from the Bank; information from the valuation authority;

5.7) Sources of information provided by international agencies and organizations such as: Information provided by trade commissioners; information provided by customs authorities of other countries; information provided by foreign valuation authorities;

5.8) Other sources of information collected by the customs authority according to the regulations on building, managing, and using price databases.

Article 24. Inspection and Handling of Inspection Results for Tax Value

1) For electronic customs procedures:

1.1) Form and degree of inspection for tax value:

1.1.1) Form of inspection:

1.1.1.1) Inspect declared value based on electronic customs declaration information and electronic price declaration;

1.1.1.2) Inspect declared value based on printed electronic customs declaration, printed electronic price declaration, and accompanying documents in paper form.

1.1.2) Degree of inspection:

1.1.2.1) For inspecting declared value based on electronic customs declaration information and electronic price declaration: Inspect the content of declarations and declared prices;

1.1.2.2) For inspecting declared value based on printed electronic customs declaration, printed electronic price declaration, and accompanying documents in paper form: Inspect the content of declarations; the accuracy of the file; the legality of the documents; compliance with principles and methods for determining value; declared prices.

1.2) Authority to decide the form and degree of inspection for tax value: The Director of the Customs Office where the electronic customs procedure is carried out decides the form and degree of inspection for tax value.

The decision of the Director of the Customs Office where the electronic customs procedure is carried out must comply with the risk management principle for value based on the Import Goods Risk List at the General Department level and the Import Goods Risk List at the Department level as stipulated in this Circular or based on information at the time of decision, which is reflected by:

1.2.1) Decision to update the Import Goods Risk List at the General Department level and the Import Goods Risk List at the Department level into the Electronic Data Processing System to classify customs files; or

1.2.2) Directly deciding on the system when there is suspicious information about the tax value.

1.3) Inspection of declared value:

1.3.1) Inspect declared value based on electronic customs declaration information and electronic price declaration:

1.3.1.1) Content of inspection:

a) Inspect the content of declarations: Inspect all criteria recorded on the electronic customs declaration and electronic price declaration reported by the importer, paying particular attention to carefully inspect the following criteria:

a.1) The name of goods must be complete, detailed with code marks, brand names, origin of goods, consistent with the criteria on the electronic price declaration. Specifically: The name of goods declared should be the common commercial name accompanied by basic characteristics of the goods, such as: Structure, constituent materials, composition, concentration, power, size, style, function, brand, origin,... meeting the requirements for classification and identifying factors affecting the determination of the tax value of goods.

Example: For motorcycles and cars, information such as brand name, manufacturer, country of production, style, engine displacement, model, other code marks,... must be included.

a.2) Unit of measurement: Must be clearly quantified according to units of measurement (such as m, kg,...). In cases where it cannot be clearly quantified (such as boxes, packages,...), equivalent conversion must be performed (such as how many packages are in a box, how many kilograms each package contains, how many packets, pieces,...).

a.3) For cases where the name of goods and unit of measurement are not specifically and clearly declared as required above, request the declarant to provide additional information about the goods. If the declarant does not provide additional information as requested by the customs authority or provides incomplete additional information, handle according to the provisions of sub-item a.1 point 1.3.2.2 clause of this article.

b) Inspect declared prices: The customs authority compares and cross-checks declared prices with the price database at the time of inspecting the declared value.

The price database used for verifying the declared value consists of price data collected, updated, and used in accordance with the regulations set forth in the Regulation on the Construction, Management, and Use of Price Databases.

1.3.1.2) Handling of inspection results:

a) Accept the declared price of the declarant if the inspection result does not fall under the cases mentioned in sub-item b of this point.

If there is no suspicion about the price but there is suspicion of contradiction in procedures and documents as stipulated in sub-items a.4, a.5, a.6 point 1.3.2.2 clause of this article but there is not enough basis to conclude, the customs authority still accepts the declared price while transferring the contradictions in procedures and documents to post-clearance inspection forces.

b) Transfer the tax value inspection process to the level of inspection based on printed electronic customs declaration, printed electronic price declaration, and accompanying documents in paper form, if it falls under any of the following cases:

b.1) The name of goods and unit of measurement declared are not specific and clear as stipulated in sub-items a.1, a.2 point 1.3.1.1 clause of this article;

b.2) Discover contradictions in procedures and documents as stipulated in sub-items a.4, a.5, a.6 point 1.3.2.2 clause of this article;

b.3) There is suspicion about the price.

1.3.2) Inspect declared value based on printed electronic customs declaration, printed electronic price declaration, and accompanying documents in paper form:

1.3.2.1) Content of inspection:

a) Inspect the content of declarations: Inspect all criteria recorded on the printed electronic customs declaration and printed electronic price declaration reported by the importer as stipulated in sub-item a point 1.3.1.1 clause of this article.

b) Inspect the accuracy of the file (such as mathematical calculations,...); the truthfulness and consistency of content among documents in the customs file (such as comparing and cross-checking clauses of contracts,...); compare and cross-check contents of commercial invoices with purchase and sale contracts; compare and cross-check contents declared on the printed electronic price declaration with relevant documents in the customs file.

c) Verify the legality of the documents related to the determination of the taxable value.

d) Examine compliance with the principles and methods for determining the taxable value as stipulated in this Circular; the conditions for application and the sequence of methods used to determine the declared value.

Example: The declarant incorrectly applies the sequence of methods for determining the taxable value as stipulated in Section II Chapter II of this Circular.

e) Review the declared price: Conduct a review of the declared price in accordance with paragraph b point 1.3.1.1 Clause 1 of this Article.

1.3.2.2) Handling the results of the examination:

a) Reject the declared value and determine the taxable value in accordance with this Circular while handling the violation according to the law based on the nature and degree of the violation if, after the examination, the customs authority discovers any contradiction regarding procedures, documents; principles and sequences of applying valuation methods (hereinafter referred to as contradictions regarding procedures, documents). Contradictions regarding procedures, documents include:

a.1) The declarant is required to provide additional information about the name of goods and unit of measurement but the declarant does not declare or declares incompletely;

a.2) There is a contradiction in content between the documents in the customs declaration submitted or presented by the declarant to the customs authority, and there is a basis to determine that the declarant has not truthfully declared the contents related to the determination of the value.

Example: There is a difference in the description of goods between the commercial invoice and the sales contract.

a.3) The customs declaration and related documents are not legal.

a.4) Failure to declare or inaccurate declaration of factors of the transaction affecting the value (for example: failure to declare adjustment items, special relationships; failure to declare copyright fees, license fees, etc.).

a.5) Incorrect application of the sequence and content of the valuation methods as prescribed in this Circular.

a.6) Failure to meet one of the conditions when applying the valuation methods prescribed in this Circular.

Example: The declarant does not meet the condition of control or use of goods after importation when applying the transaction value method; does not meet the time condition when selecting identical or similar goods for the transaction value method of imported identical goods, transaction value method of imported similar goods, etc.

b) Handling cases with doubts:

b.1) In cases where there is no doubt about the price but there is a doubt about procedures and documents, the customs authority accepts the declared price while transferring the doubts to the post-clearance inspection force.

b.2) In cases where there is a doubt about the price except for the doubt mentioned in paragraph b.4.7 of this point and there is a doubt or no doubt about procedures and documents, handle as follows:

b.2.1) For goods listed in the General Department's Import Goods Risk List, the Customs Department's Import Goods Risk List: The customs authority informs the declarant of the basis and grounds for doubting the declared price, the method and price determined by the customs authority according to Form No. 1 issued together with this Circular.

b.2.1.1) If the declarant agrees with the price and method determined by the customs authority in Form No. 1, the customs authority issues a notice to determine the value according to Form No. 4 issued together with this Circular, implements tax assessment according to the determined price and records it on the customs declaration form.

b.2.1.2) If the declarant disagrees with the price and method determined by the customs authority in Form No. 1, the declarant may exercise the right to consult as provided in Article 26 and must comply with the guarantee requirements as provided in Article 25 of this Circular if the declarant wishes to release the goods before payment of taxes.

The customs authority notifies the declarant to implement the guarantee according to Form No. 2 issued together with this Circular. The price for determining the guarantee amount is the price determined by the customs authority in Form No. 1.

b.2.2) For goods not listed in the General Department's Import Goods Risk List, the Customs Department's Import Goods Risk List, accept the declared price while transferring the doubts to the post-clearance inspection force.

b.3) In cases where there is a doubt about the price in paragraph b.4.7 and there is a doubt or no doubt about procedures and documents, accept the declared price while transferring the doubts to the post-clearance inspection force.

b.4) Cases of doubt about the price: Imported goods are considered to have a doubt about the price if they fall under any of the following circumstances:

b.4.1) Imported goods have a declared price lower than the lowest taxable value of identical or similar goods determined by the customs authority; or lower than the lowest declared price of identical or similar goods (not compared with consignments currently under doubt), accepted by the customs authority based on the declared price.

Identical or similar goods used for comparison are those exported to Vietnam on the same day or within a period of 60 days before or after the export date of the goods being examined. If identical or similar goods cannot be found within the specified period, the period may be extended up to 90 days before or after the export date of the goods being examined.

b.4.2) Imported goods have a declared price lower than or equal to the declared price of the main component parts of the same type of imported goods; or lower than or equal to the declared price of the main raw materials constituting the finished product imported.

The selection period for data is implemented according to the provisions of paragraph b.4.1 of this point.

b.4.3) Imported goods have a declared price lower than the verified price of identical or similar goods included in the General Department's Import Goods Risk List, the Customs Department's Import Goods Risk List.

b.4.4) Imported goods have a declared price lower than the price collected from other information sources by the customs authority after converting to the same conditions as the consignment being examined.

b.4.5) Imported goods with a discount factor wherein the declared price after deducting the discount amount is lower than the price of identical or similar goods specified in the price database.

b.4.6) In cases where identical or similar goods as defined in this Circular cannot be found for comparison and verification of the declared price, the concept of identical or similar goods may be flexibly expanded, specifically:

b.4.6.1) Imported goods with multiple features and functions that can be compared to goods of the same type with a basic feature already present in the price database.

b.4.6.2) Imported goods with higher quality grades can be compared with goods of the same type with lower quality grades already present in the price database.

b.4.6.3) Imported goods from developed countries or regions may be compared to goods of the same type from underdeveloped or developing countries or regions listed in the price database (for example: Imported goods requiring valuation verification with origin from Japan may be compared to goods of the same type with origin from South Korea in the price database).

The selection period for data is implemented according to the provisions of paragraph b.4.1 of this point.

b.4.7) Imported goods with a declared price higher than 15% compared to the price in the price database.

The selection period for data is implemented according to the provisions of paragraph b.4.1 of this point.

c) Acceptance of the declared price for cases not covered by paragraphs a and b of this point.

2) For cases where electronic customs procedures are not implemented:

2.1) Content of inspection: Inspection of declaration contents, declared prices, accuracy of documents, legality of related certificates, compliance with principles and methods for determining dutiable value as stipulated in point 1.3.2.1 clause 1 Article of this Decree, but substituting printed electronic customs declarations and printed electronic valuation declarations with paper customs declarations and valuation declarations in the customs dossier as prescribed.

2.2) Handling of inspection results: Implemented according to the provisions of point 1.3.2.2 clause 1 Article of this Decree.

Article 25. Suspension of Determination of Dutiable Value

1) Cases of suspension of determination of dutiable value:

1.1) The declarant suspends the determination of dutiable value: Applied in cases where the declarant does not have sufficient information necessary to determine the dutiable value at the time of registering the customs declaration.

1.2) Customs authority suspends the determination of dutiable value: Applied in cases where consultation must be conducted as provided for in Article 26 of this Circular.

2) Duration of suspension: 30 days from the date of registration of the customs declaration.

3) Procedures for suspension of determination of dutiable value:

3.1) In cases where the declarant suspends the determination of dutiable value:

3.1.1) For the declarant:

3.1.1.1) Submit a request to the customs authority for suspension of determination of dutiable value due to lack of necessary information for determining the dutiable value at the time of registering the customs declaration;

3.1.1.2) In cases where goods require full payment of tax before receiving the goods, ensure full payment of the tax amount determined by the customs authority for the imported consignment if wishing to clear the goods;

3.1.1.3) Within 30 days from the date of registration of the customs declaration, the declarant must declare the necessary information to determine the dutiable value for the imported consignment, recalculate the tax payable, and pay the full tax in accordance with regulations.

3.1.2) For the customs authority:

3.1.2.1) The Director of the Customs Branch shall base on the price database and the principles, methods for determining the dutiable value stipulated in this Circular to determine the dutiable value and the amount of guarantee to be paid. The guarantee amount must be sufficient to cover all tax obligations.

3.1.2.2) Notify the declarant of the guarantee amount according to Form No. 2.

3.1.2.3) Clear the goods when the declarant implements the guarantee according to this Circular.

3.1.2.4) If the declarant fails to declare the necessary information to determine the dutiable value within 30 days from the date of registration of the customs declaration, the customs authority will determine the dutiable value according to Form No. 4 of this Circular, set the tax, and notify the declarant to pay the full tax in accordance with regulations.

3.2) In cases where the customs authority suspends the determination of dutiable value:

3.2.1. For the customs authority:

3.2.1.1) The Director of the Customs Branch calculates the guarantee amount for goods that require full payment of tax before receiving the goods and notifies the declarant according to Form No. 2. The price for calculating the guarantee is the price notified in Form No. 1.

3.2.1.2) Clear the goods when the declarant ensures full payment of the tax according to this Circular.

3.2.1.3) Within 30 days from the date of registration of the customs declaration, the customs authority must organize consultations to clarify doubts about the declared price according to the consultation regulations in Article 26 of this Circular.

3.2.2) For the declarant:

3.2.2.1) Ensure full payment of the tax for the imported consignment according to the guarantee amount determined by the customs authority, if wishing to clear the goods;

3.2.2.2) Conduct consultations according to the regulations in Article 26 of this Circular.

4) Forms of guarantee, duration of guarantee:

4.1) Guarantee form: The content and form of guarantee are carried out according to tax management laws regarding guarantee of tax payable.

4.2) Deposit form:

4.2.1) For the declarant: Pay the deposit into the account of the customs authority at the State Treasury; the amount of deposit must be paid according to the guarantee amount notified by the customs authority according to Form No. 2 of this Circular.

4.2.2) For the customs authority:

4.2.2.1) Guide the declarant to pay the deposit into the account of the customs authority at the State Treasury;

4.2.2.2) Within a maximum period of 05 days from the date of issuance of the Dutiable Value Notification, the Customs Branch shall carry out:

a) Process the transfer of the deposit amount corresponding to the tax payable (if any) from the customs authority's deposit account to the state budget revenue account according to current regulations;

b) Process the refund of any excess deposit to the declarant.

4.3) Duration of guarantee: 30 days from the date of registration of the customs declaration.

4.3) Guarantee period: 30 days from the date of declaration submission to the customs authority.

Article 26. Consultation

1) Consultation authority:

1.1) The Director of the Provincial/City Customs Department shall organize the consultation process and bear full responsibility for the effectiveness of the consultation work at their unit.

1.2) Based on actual conditions, management capacity, and distance between the Branch and the Department, the Director of the Provincial/City Customs Department may delegate to the Branch Director the authority to conduct consultations for goods listed in the Department-level Import Risk List, but not exceeding 10% of the total number of cases requiring consultation under the Department-level Import Risk List.

1.3) In cases where multiple imported goods under the same declaration require consultation, including goods listed in both the General Department-level Import Risk List and the Department-level Import Risk List, the Director of the Provincial/City Customs Department shall organize the consultation process.

2) Forms of consultation:

2.1) Direct consultation.

2.2) Electronic mail consultation: Specific guidance will be provided when conditions permit.

3) Situations requiring consultation:

3.1) If the customs authority has doubts about the declared price of goods listed in the General Department-level Import Risk List or the Department-level Import Risk List, but the declarant disagrees with the price and method determined by the customs authority according to Form No. 1 issued together with this Circular;

3.2) If the customs authority has grounds to suspect special relationships that affect transaction value.

3.3) The Director of the Provincial/City Customs Department decides to consult on goods listed in the General Department-level Import Risk List or the Department-level Import Risk List if there are doubts about the declared price, but the declared price is not more than 5% lower than the price in the price database at the time of inspection.

3.4) For the same goods imported by the same enterprise at the same customs unit, under the same contract or different contracts, consultation shall only be organized for the first import shipment if the following conditions are met:

3.4.1) Information related to the determination of the taxable value obtained from the price database and other information collected through business methods up to the time of inspection for the current import shipment does not change compared to the information used for the initial consultation of the first import shipment.

3.4.2) The declarant agrees to use the results of the initial consultation for subsequent imports.

4) Conducting consultation and handling consultation results:

4.1) Preparing for consultation:

4.1.1) Customs authority:

4.1.1.1) Notify the declarant of the time and place of consultation, and the relevant documents and materials required for consultation, according to Form No. 3 issued together with this Circular.

4.1.1.2) Prepare the consultation content.

4.1.2) Declarant:

4.1.2.1) Provide the information, documents, and certificates according to the content notified by the customs authority.

4.1.2.2) Appoint an authorized representative to decide on matters related to the determination of the taxable value or a person fully authorized to participate in the consultation.

4.1.2.3) Answer questions during the consultation process related to the import transaction as requested by the customs authority.

4.2) Content of consultation:

Based on the prepared files, documents, and data, the customs authority requests the enterprise to answer questions related to the declaration of import transaction factors; declared price; the valuation method used by the enterprise.

The customs authority focuses on clarifying doubts regarding the files and declared prices. The questioning and answering during the consultation must be recorded truthfully in the consultation minutes. At the end of the consultation minutes, based on the enterprise's answers and price data, the customs authority clearly states "acceptance" or "rejection" of the declared price and the proposed taxable price. All parties involved in the consultation must sign the consultation minutes.

4.3) Time for conducting consultation and determining the taxable value: a maximum of 30 days from the date of declaration registration.

4.4) Handling consultation results:

4.4.1) The customs authority rejects the declared price and determines the taxable value in the following cases:

4.4.1.1) During the consultation, the customs authority discovers inconsistencies in procedures and documents as stipulated in Point 1.3.2.2 Clause 1 Article 24 of this Circular.

4.4.1.2) The declarant fails to honestly declare contents related to the determination of the taxable value:

a) The declarant fails to declare or incorrectly declares the actual payment or future payment price; factors related to the determination of the taxable value (such as adjustments, special relationships, application conditions for valuation methods...).

b) The exporter or the exporter's representative confirms that the declared price does not match the actual purchase price.

c) Information obtained by the customs authority through other business methods confirms that the transaction price is not honest.

d) Information provided by the declarant after inspection is inaccurate, or the provided documents and certificates are forged or illegal.

4.4.1.3) The declarant fails to explain or cannot explain the honesty and accuracy of the contents related to the determination of the taxable value:

a) After the consultation deadline, the declarant does not participate in the consultation.

b) After the deadline, the declarant cannot provide the required information, documents, and certificates as notified by the customs authority.

c) The declarant cannot explain, prove, or provide insufficiently convincing explanations or lack evidence for the customs authority's doubts (such as the rationality of the documents; declared price or special relationships affecting the transaction value; the declarant's responses contradict the customs declaration documents; the enterprise's declared or presented documents and materials are inconsistent; the rationality of the declared price and the price of similar goods in the price database...).

4.4.1.4) In cases where declared value is rejected, within a maximum period of 05 days from the end of consultation but not exceeding 30 days from the date of declaration submission, the customs authority shall determine the taxable value and issue a notice of taxable value according to Form No. 4 of this Circular.

4.4.2) Acceptance of declared price: Except for the cases of rejecting the declared price as specified in Point 4.4.1 Clause of this Article, the customs authority accepts the declared price and issues a notice of taxable value according to Form No. 4 issued together with this Circular.

5) All documents and files related to consultation must be stored together with the customs file.

6) Apart from consultation, to ensure the truthfulness and objectivity of the process of checking and determining the taxable value, the customs authority may seek advisory opinions from relevant units and agencies.

7) The declarant has the right to appeal the result of the determination of the taxable value by the customs authority after consultation in accordance with the guidance provided in Article 29 of this Circular.

Section 3

INSPECTION OF TAXABLE VALUE AFTER GOODS HAVE BEEN CLEARED

Article 27. Inspection of taxable value after goods have been cleared:

1) For the post-clearance inspection force at the Customs Branch:

1.1) Object of inspection: Inspect the customs file, declared price, and other documents related to the determination of the taxable value of exported and imported goods.

1.2) Content of inspection:

1.2.1) For exported goods: Conduct inspections according to the contents stipulated in Article 22 of this Circular.

1.2.2) For imported goods: Conduct inspections according to the contents stipulated in Article 24 of this Circular.

1.3) Handling of inspection results:

1.3.1) If inconsistencies in procedures and files are discovered, reject the declared price and determine the taxable value in accordance with this Circular;

1.3.2) If there are doubts about the files, certificates, or declared price but insufficient grounds to conclude fraudulent behavior, transfer these doubts to the post-clearance inspection force for further verification and clarification in accordance with regulations.

2) For the post-clearance inspection force:

2.1) Object of inspection: Cases with doubts about files, certificates, or declared prices transferred by the post-clearance inspection force; cases transferred by the inspection force during clearance; cases discovered by the post-clearance inspection force or identified based on risk assessment by commodity, industry, or exporting/importing enterprise, organize post-clearance inspections at the customs office or the business premises.

2.2) Content of inspection, inspection procedure, handling of inspection results: Shall be carried out in accordance with regulations on post-clearance inspections and regulations on determining the taxable value.

3) For the anti-smuggling investigation force:

Organize inspections and verifications of cases suspected of large-scale fraud involving value such as: Fabricating files and certificates; colluding to uniformly lower or falsely inflate declared values transferred by the post-clearance inspection force or significant, systematic, wide-ranging fraud detected by the anti-smuggling force.

4) For consignments that have been inspected for value during the customs procedure including those where declared value was rejected or accepted after consultation, if the post-clearance inspection force, post-clearance inspection force, or anti-smuggling investigation force discovers violations, they will still proceed to handle the violation according to the law, implement tax assessment, and clarify the responsibility of the inspection unit during the customs procedure, if there is a violation, disciplinary action will be taken according to the regulations of the sector and the law.

Article 28. Coordination between inspection forces for valuation during customs procedures and post-clearance inspection forces

1) For inspection forces for valuation during customs procedures:

1.1) Regularly collect, review doubts about prices, procedural issues, and documents; assess and analyze suspicious signs and transfer them to post-clearance inspection forces for inspection according to post-clearance inspection regulations.

1.2) Receive inspection results and recommendations from post-clearance inspection forces to compile, analyze, and evaluate in order to develop measures for valuation inspections during customs procedures to promptly prevent price fraud and enhance the effectiveness of price management work for exported and imported goods.

2) For post-clearance inspection forces:

2.1) Notify the inspection forces for valuation during customs procedures of the inspection and handling results regarding valuation within five days from the date of inspection completion.

2.2) Based on actual inspection results, recommend additional valuation inspection measures to the inspection forces for valuation during customs procedures to prevent price fraud, and propose amendments to pricing management policies in line with current circumstances.

Chapter IV

COMPLAINTS AND VIOLATION HANDLING

Article 29. Complaints and Resolution of Complaints

1) If the declarant disagrees with the customs value determined by the customs authority, they have the right to file a complaint in accordance with the law on complaints and appeals, or initiate an administrative lawsuit at the court in accordance with the law on administrative litigation procedures.

2) The time limit for filing a complaint shall be carried out in accordance with the law on complaints and appeals.

3) The procedure for resolving complaints shall be implemented in accordance with the law on complaints and appeals and relevant laws.

4) During the complaint resolution period, the declarant and taxpayer must pay the tax in full based on the price determined by the customs authority for exported and imported goods.

5) The Director of the General Department of Customs, the Director of the Provincial/City Customs Office shall establish a price advisory board to resolve complex and prolonged second-level complaints regarding the price determined by the customs authority.

Article 30. Handling Violations

1) Customs Authority: Customs officers and officials who lack a sense of responsibility, violate the provisions of Decree No. 40/2007/NĐ-CP dated March 16, 2007, and the guidance provided in this Circular, causing damage to taxpayers and loss of tax revenue, must compensate for damages in accordance with Law No. 35/2009/QH12 dated June 18, 2009 on State Compensation Liability, and simultaneously:

1.1) For customs officers and officials: Depending on the nature and severity of the violation, they will be subject to disciplinary action or criminal liability as prescribed by law.

1.2) For unit heads: Implement the accountability system for unit heads as prescribed by law.

2) Taxpayers and declarants who violate the provisions of Decree No. 40/2007/NĐ-CP dated March 16, 2007 of the Government and the guidance provided in this Circular shall, depending on the nature and severity of the violation, pay taxes as decided by the customs authority and be subject to administrative penalties or criminal liability as prescribed by law.

Chapter V

IMPLEMENTATION

Article 31. Responsibilities for Implementation

1) The Ministry of Finance shall coordinate with relevant ministries, industry associations to organize the collection, exchange of price information for inspection and valuation purposes; the General Department of Customs shall establish a price database system for inspection and valuation purposes within the customs sector; provincial, municipal, and inter-provincial Customs Bureaus shall be responsible for organizing the collection, processing, reporting, and utilization of price information in accordance with the regulations of the General Department of Customs.

2) The General Department of Customs shall specify the detailed procedures for inspection, consultation, and valuation; provide guidance and direction on the specific implementation of this Circular.

3) Customs authorities, declarants, taxpayers, and other related organizations and individuals, including those involved in electronic customs procedures, shall be responsible for determining the taxable value in accordance with the guidelines set forth in this Circular; any issues arising shall be reported to the Ministry of Finance and the General Department of Customs for consideration and guidance on resolution.

Article 32. Effective Date

1) This Circular shall take effect 45 days from the date of signature, replacing Circular No. 40/2008/TT-BTC dated May 21, 2008 issued by the Ministry of Finance, Clause 21 of Circular No. 222/2009/TT-BTC dated November 25, 2009, and previous guiding documents of the Ministry of Finance that conflict with this Circular.

2) During implementation, if the related documents mentioned in this Circular and its attached appendices are amended, supplemented, or replaced, they shall be implemented according to the newly amended, supplemented, or replaced documents./.