JOINT CIRCULAR No. 22-TTLB/TC/NT guides the collection of taxes on goods brought into the country in luggage, gifts, and presents exceeding the tax-exempt standard.

CIRCULAR

JOINT MINISTRY OF FINANCE - FOREIGN TRADE DECREE NO. 22-TTLB/TC/NT
JUNE 17, 1975 GUIDELINES FOR THE COLLECTION OF TAXES
ON GOODS IMPORTED IN LUGGAGE, GIFTS, AND DONATIONS EXCEEDING THE AMOUNT ELIGIBLE FOR TAX EXEMPTION
EXCEEDING THE AMOUNT ELIGIBLE FOR TAX EXEMPTION

Pursuant to the Goods Tax Regulation issued pursuant to Decree No. 487/CP dated September 26, 1974 of the Standing Committee of the National Assembly, Circular No. 258/CP dated November 29, 1974 of the Council of Ministers, the Joint Ministry of Finance - Foreign Trade issues this circular to guide the implementation of the Goods Tax Regulation for goods imported through individuals under luggage form or through international transportation under gift or donation forms exceeding the amount eligible for tax exemption.

1- The Goods Tax collected on goods imported in luggage, gifts, and donations exceeding the amount eligible for tax exemption aims to regulate part of the difference between import prices and domestic market selling prices, thereby guiding officials and students traveling or studying abroad to consume reasonably, prevent the exploitation of goods trading for profit, and protect domestically produced goods.

2- The Goods Tax is only levied on items listed in the Goods Taxable Goods Catalogue attached to Circular No. 258/CP dated November 29, 1974 of the Council of Ministers. Items that have already been subject to Goods Tax will not be subject to Import Tax again. Other items not listed in the Goods Taxable Goods Catalogue must still pay Import Tax according to current Import Tax policies and regulations.

3- Standards for tax exemption on goods for luggage, gifts, and donations imported.

The standards for tax exemption on goods for luggage, gifts, and donations imported remain in accordance with current regulations, which the Joint Ministry reiterates below:

a) Luggage: apply the standard stipulated in the Joint Ministry's Circular No. 17-LB dated December 19, 1959.

Luggage exempt from tax includes personal items carried by the passenger (which may arrive before or after the passenger enters the country) and limited to personal or family use. Specifically, the customs authority temporarily determines the tax exemption standard for each item and specific case based on the provisions in the aforementioned attachment, in accordance with the spirit of Joint Ministry's Circular No. 17-LB. After a period of implementation, the customs authority should draw lessons and propose formal tax exemption standards for goods imported in luggage to the Joint Ministry.

b) Gifts and donations: apply the standard stipulated in the Prime Minister's Circular No. 463/TTg dated October 13, 1958 and the Council of Ministers' Decision No. 28-CP dated March 3, 1972, i.e., every six months, each household can receive gifts and donations worth up to 100 dong (based on the wholesale price of state trade). The 100 dong mentioned above must be calculated based on the total value of gifts and donations imported during that time and sent to the household without being calculated separately for each individual in the household. If exceeding the specified limits, permission from the Central Customs Department is required and Goods Tax must be paid.

c) For gifts from residents in the Vietnam-China border area: if used to visit relatives, they shall be applied according to the regulation on small-scale cross-border trade for border residents issued by the Prime Minister's Decree No. 486/TTg dated November 4, 1958.

The Customs Department shall guide border customs branches to apply the above regulations appropriately in line with local customs and sentiments.

d) Gifts imported by government agencies and organizations are not subject to the regulations stipulated in this circular.

e) For gifts from the South sent out will have separate regulations.

g) The examination of tax exemption for goods must be strict, and only luggage, gifts, and donations meeting all the criteria stipulated above are eligible for tax exemption.

4- Regarding the taxable value:

The taxable value of goods is determined by the Ministry of Finance according to the principle stated in Article 6 of the Goods Tax Regulation. The customs authority has the responsibility to regularly provide information on the prices of imported goods to the Ministry of Finance as a basis for researching and determining the taxable value of goods.

To encourage sales to state trade, the taxable value of goods purchased by state trade is the purchase price of state trade (including tax), i.e., the retail price minus the entire industry's commercial discount. If the taxable value table does not specify the taxable value of a certain good, the customs authority shall apply the taxable value of a similar good to calculate the Goods Tax and report to the Ministry of Finance for review and supplementation to the current taxable value table.

5- Organizing the collection of Goods Tax on goods imported in luggage, gifts, and donations exceeding the tax exemption limit.

Customs authorities at all levels have the responsibility:

a) To organize the collection of Goods Tax on goods imported in luggage, gifts, and donations exceeding the tax exemption limit according to the prescribed tariff rates and taxable values. For gifts and donations where the recipient is located in areas without foreign postal offices, the Hanoi foreign postal office customs authority is responsible for calculating the tax due and entrusting the local post office where the recipient is located to collect the tax before delivering the goods. The local post office is entitled to a handling fee of 3% of the tax entrusted for collection.

Revenue from Goods Tax on goods imported in luggage, gifts, and donations exceeding the tax exemption limit will now be deposited into the state budget under category 91, subcategory 5 (Goods Tax for private enterprises).

b) To examine and resolve requests for tax reduction or exemption according to current regulations. If encountering difficulties, the customs authority must seek guidance from the Joint Ministry.

c) To handle violations related to Goods Tax and resolve complaints about Goods Tax according to current regulations in the Customs Regulations and Goods Tax Regulations.

d) The Customs Department is responsible for guiding and strictly supervising the implementation of this Joint Ministry's Circular by local customs authorities and reporting periodically to both ministries on the situation of imported luggage, gifts, and donations, the collection of Goods Tax, tax exemptions, complaints, and their resolution.

6- Effective date: This joint circular shall take effect from July 15, 1975.

During implementation, if difficulties arise, customs and local financial authorities shall promptly report to the two Ministries for study and resolution.