Decision No. 2424/QD-TCHQ on the issuance of procedures for tax exemption, examination of tax exemption, reduction of tax, refund of tax, non-collection of export tax and import tax applicable at Customs Branches and Provincial/City Customs Departments under the Central Government.

Pursuant to …;

Regarding the issuance of procedures for tax exemption, examination of tax exemption, examination of tax reduction, refund of tax, non-collection of export duties and import duties applicable at Customs Branches and Provincial Customs Departments under the Central GovernmentPursuant to the Law on Customs and the Law Amending and Supplementing Certain Provisions of the Law on Customs;

DIRECTOR GENERAL OF THE GENERAL DEPARTMENT OF CUSTOMS

Pursuant to the Decrees and Circulars guiding the Law on Customs and the Law on Tax Administration;

BASED ON THE LAW ON TAX ADMINISTRATION;

Pursuant to Decree No. 96/2002/NĐ-CP dated November 19, 2002 of the Government stipulating the functions, tasks, powers, and organizational structure of the General Department of Customs;

At the proposal of the Director of the Inspection and Collection Department of Export and Import Taxes;

This Decision promulgates the Procedures for tax exemption, examination of tax exemption, examination of tax reduction, refund of tax, non-collection of export duties and import duties applicable at Customs Branches and Provincial Customs Departments under the Central Government attached hereto.

DECISION:

Article 1. This Decision shall take effect fifteen days from the date of signature and replace Decision No. 801/QĐ-TCHQ dated May 3, 2006 of the Director General of the General Department of Customs on the issuance of Procedures for tax exemption, examination of tax exemption, tax reduction, refund of tax, non-collection of export duties and import duties applicable at Provincial Customs Departments; and other guiding documents of the General Department of Customs that are inconsistent with this Decision.

Article 2. The Director of the Inspection and Collection Department of Export and Import Taxes, the Directors of Provincial Customs Departments under the Central Government, and the heads of relevant units under the General Department of Customs are responsible for organizing the implementation of this Decision.

Article 3. Procedures for tax exemption, examination of tax exemption, examination of tax reduction, examination of tax refund, non-collection of export duties and import duties applicable at Customs Branches and Provincial Customs Departments under the Central Government

 

PROCEDURE

(Issued together with Decision No. 2424/QĐ-TCHQ dated November 27, 2008 of the Director General of the General Department of Customs)

1. These procedures regulate the sequence of steps that Customs Branches and Provincial Customs Departments under the Central Government must follow when handling tax exemptions, examinations of tax exemptions, examinations of tax reductions, examinations of tax refunds, and non-collection of export duties and import duties (hereinafter referred to as the tax exemption procedures), but do not include the procedures for tax exemptions for goods exported and imported under processing contracts and examinations of tax exemptions for goods imported for sale at duty-free shops (procedures for tax exemptions and examinations of tax exemptions for these goods shall be carried out according to separate guidance documents issued by the Ministry of Finance).
2. When implementing tax exemptions, examinations of tax exemptions, examinations of tax reductions, tax refunds, and non-collection of taxes, customs officers must base their actions on the provisions of the Tax Laws; the Law on Tax Administration; Decrees and Circulars guiding these laws, combined with the provisions of these procedures, to carry out tax exemptions, examinations of tax exemptions, examinations of tax reductions, tax refunds, and non-collection of taxes, and must ensure transparency and clarity.

I. GENERAL PROVISIONS:

3. The documents for processing tax exemptions, examinations of tax exemptions, tax reductions, tax refunds, and non-collection of taxes must be submitted to the customs authority having jurisdiction to handle them.

4. In cases where the subject is not eligible for tax exemptions, examinations of tax exemptions, examinations of tax reductions, examinations of tax refunds, and non-collection of taxes, the customs authority must issue a formal notice informing the taxpayer to pay taxes in accordance with the regulations.

5. The time limit for processing documents for tax exemptions, examinations of tax exemptions, examinations of tax reductions, tax refunds, and non-collection of taxes shall be implemented in accordance with the Law on Tax Administration and the guiding documents for implementing this Law.

6. Based on the provisions of the Tax Laws, the Law on Tax Administration, Decrees, and Circulars guiding these laws, and the guidance provided in these procedures, Provincial Customs Departments under the Central Government may specify detailed procedures for tax exemptions, examinations of tax exemptions, examinations of tax reductions, examinations of tax refunds, and non-collection of taxes, and the specific maximum time limits for completing each step in these procedures, in accordance with the characteristics of their own units.

7. During the process of receiving, circulating, and reviewing applications for examinations of tax exemptions and tax reductions, units and individuals must properly maintain and preserve the documents, list the items contained in the documents, contact responsible individuals when issues arise, and implement confidentiality measures as prescribed (if applicable).

8. Inspection, updating, and comprehensive statistical reporting system:

Provincial Customs Departments under the Central Government are responsible for organizing inspections of the implementation of tax exemptions, examinations of tax exemptions, examinations of tax reductions, tax refunds, and non-collection of export duties and import duties; inspections of the proper use of goods that have been processed for tax exemptions, examinations of tax exemptions, examinations of tax reductions, tax refunds, and non-collection of taxes at units that have received such exemptions, examinations, reductions, refunds, and non-collections in accordance with current regulations; updating and comprehensively compiling data on tax exemptions, examinations of tax exemptions, examinations of tax reductions, tax refunds, and non-collection of taxes occurring at their units (quantity, value, amount of tax exempted, examined for exemption, reduced, refunded, and not collected) and reporting to the General Department of Customs in accordance with current regulations.

II. PROCEDURES FOR TAX EXEMPTION

The tax exemption procedures consist of two types of tasks that the customs authorities must perform:

(i) Registering the List of Goods Exempt from Export Duties and Import Duties for cases requiring registration of the List of Exempt Goods;

(ii) Processing tax exemptions for cases of tax exemption.

A. REGISTERING THE LIST OF GOODS EXEMPT FROM EXPORT DUTIES AND IMPORT DUTIES

Step 1: Receiving and assigning the processing of documents

- The customs officer receiving the documents is responsible for recording the number of items in the documents on the list of items in the application for registering the List of Goods Exempt from Export Duties and Import Duties (hereinafter referred to as the List of Exempt Goods) submitted by the declarant, stamping the receipt, clearly noting the date of receipt of the documents, registering in the logbook, and transferring it to the competent department for processing in accordance with the regulations.

- The head of the competent department is responsible for assigning customs officers to check and process the documents.

Step 2: Checking and processing the application for registering the List of Exempt Goods

- The head of the functional department is responsible for assigning customs officials to check and process the file.

Step 2: Check and process the application file for the Tax Exemption List

a. The customs officer assigned to process the file shall be responsible for checking the file and the Tax Exemption List submitted by the declarant, comparing them with current regulations and guidelines, and handling them as follows:

a1. In cases where the file does not meet the requirements stipulated, a written Proposal Form according to the model issued along with this procedure and a draft document requesting additional information from the declarant (specifying the documents and materials that need to be supplemented) shall be prepared and submitted for the leader's signature.

a2. In cases where the file meets the requirements stipulated, the following actions shall be taken:

- Checking and cross-referencing the documents and certificates in the file to determine whether the application falls within or outside the scope of tax exemption under Article 16 of Decree No. 149/2005/ND-CP, and verifying the consistency and accuracy of the Tax Exemption List registration.

- Examining and reviewing whether the Tax Exemption List is appropriate to the business sector and production area of the project, if there is doubt or uncertainty, requiring the enterprise to provide explanations.

Example 1: If the business sector is chemical production but the Tax Exemption List registered with the customs authority includes sewing machines, which is inappropriate.

Example 2: For applications seeking tax exemption on imported machinery, equipment, and transportation means to form fixed assets of investment projects specified in Clause 6, Article 16 of Decree No. 149/2005/ND-CP, the customs officer shall check the Project and documents presented by the declarant based on the items listed in the Tax Exemption List, such as:

- Whether the project falls within the scope of preferential investment and the investment location?

- Was the project approved before January 1, 2006, or from January 1, 2006? In case it is a preferential investment project approved before January 1, 2006, verify whether the competent authority has issued the Tax Exemption List to the enterprise: Requesting the provision of previously issued Tax Exemption Lists and checking the importation status under those lists (if issued by the competent authority). If the declarant reports that the list has not been issued, request a confirmation letter from the competent authority regarding the non-issuance of the Tax Exemption List.

- In cases where the goods requested for tax exemption are transportation means included in the production line, additional verification must be conducted through a confirmation letter from the Ministry of Science and Technology regarding whether the transportation means are part of the production line. If the enterprise cannot present this when registering the Tax Exemption List, note on both copies of the Tax Exemption List that the confirmation letter from the Ministry of Science and Technology regarding the inclusion of vehicles in the production line is missing, and request the customs authority to continue verifying this matter during the tax exemption procedures.

- In cases where the goods listed in the Tax Exemption List are raw materials or components, they must be cross-checked against the list of domestically produced goods issued by the competent authority to determine whether these goods can be produced domestically. If the name of the goods declared by the enterprise is not specific enough, note on both copies of the Tax Exemption List that the name of the goods is unclear and thus the verification of domestic production capability cannot be determined, and request the customs authority to continue verifying this matter during the tax exemption procedures.

Similarly, if the goods listed in the Tax Exemption List are parts, accessories, or components for assembly or integrated use with specialized equipment, machinery, or transportation means (Clause 6c, Article 16, Decree No. 149/2005/ND-CP) or raw materials or components for manufacturing equipment, machinery, or parts, accessories, components for assembly or integrated use with specialized equipment, machinery (Clause 6d, Article 16, Decree No. 149/2005/ND-CP), then verification must be conducted to determine their compatibility with the specialized equipment, machinery, or transportation means. If the enterprise fails to clarify this at the time of registering the Tax Exemption List and the customs authority has doubts, the enterprise should be asked to provide a detailed explanation or installation diagram to continue verifying the compatibility of these goods during the tax exemption procedures. If the enterprise cannot provide this at the time of registering the Tax Exemption List, note on both copies of the Tax Exemption List about this and request the customs authority to continue verifying.

a3. Handling the results of the inspection:

- In cases where the project or program does not fall within the scope of tax exemption under current regulations, a Proposal Form according to the model issued along with this procedure and a draft letter returning the file to the enterprise (specifying the reasons for return) shall be prepared and submitted for the leader's signature.

- In cases where the project or program falls within the scope of tax exemption under current regulations, but some goods listed in the Tax Exemption List self-compiled by the enterprise do not qualify for tax exemption, a Proposal Form according to the model issued along with this procedure and a draft letter notifying the enterprise to amend the Tax Exemption List (specifying the reasons) shall be prepared and submitted for the leader's signature.

- In cases where the project or program qualifies for tax exemption and the goods in the Tax Exemption List comply with current regulations, a Proposal Form according to the model issued along with this procedure shall be prepared and submitted for the leader's signature.

b. The leader is responsible for reviewing the Tax Exemption List registration file presented by the customs officer, signing confirmation on both original copies of the Tax Exemption List, two original copies of the Tracking Sheet, and the Proposal Form (if agreed), providing comments on the Proposal Form (if not agreed), and transferring it to the customs officer for implementation.

Step 3. Registering the Tax Exemption List

- Based on the approval and agreement of the leader, the customs officer assigned to process the file shall register the Tax Exemption List in a separate logbook and stamp confirmation on both original copies of the Tax Exemption List and the two original copies of the Tracking Sheet already signed by the leader using the following format:

"Goods ... have been registered for Tax Exemption List according to Point ..., Section ..., Part ..., Circular No. ... dated .../.../20... of the Ministry of Finance"

Date ... month ... year 20...
The civil servant (signs, writes out full name and stamps the civil servant's stamp)

- In case the Leader does not agree, the civil servant drafts a document to inform the enterprise (specifying the reasons for not registering the Tax Exemption List) or reports additional explanations if there are other opinions.

Step 4: Circulate the outgoing document

After the Tax Exemption List has been registered and stamped, or the notification letter has been signed and stamped, the civil servant assigned to handle the file transfers the file to the department responsible for receiving files to send the document and store the file according to regulations.

B. PROCEDURE FOR TAX EXEMPTION WHEN PROCESSING CUSTOMS PROCEEDINGS

Step 1: Receive and process the application file

Receiving the tax exemption application file is the act of receiving the customs declaration file of the current customs procedure for export and import trade goods.

Step 2: Detailed inspection and processing of the file

a. The customs officer assigned to handle the file is responsible for inspecting and reviewing the Tax Exemption List, the file submitted by the declarant, and processes as follows:

a1. In case the file is incomplete as prescribed, a written Proposal Form is prepared according to the model issued together with this procedure, and a draft document is prepared to notify the declarant (specifying the reasons and requesting supplementary documents, the deadline for submitting supplementary documents), and submit it for the Leader's signature.

a2. In case the file is complete as prescribed or the declarant has supplemented the file as requested, the following actions will be taken:

- If the file belongs to the yellow channel, the customs officer handling the tax exemption procedures will inspect and determine whether the goods fall within or outside the scope of tax exemption:

+ In case the goods fall within the scope of tax exemption, a Proposal Form is prepared, specifying that the goods fall within the scope of tax exemption as stipulated at point ..., section ..., Circular number ..., and submit it for the Head of the Customs Branch to review and sign.

+ In case the goods do not fall within the scope of tax exemption as declared in the tax exemption file, the customs officer prepares a Proposal Form and a draft document to notify the declarant to pay taxes and penalties (if applicable) as prescribed.

- If the file belongs to the red channel, the customs officer conducts an actual inspection of the goods according to the current customs procedure. After obtaining the results of the actual inspection of the goods, the file is transferred to the customs officer handling the tax exemption procedures to inspect and determine whether the goods fall within or outside the scope of tax exemption and process as follows:

+ In case the results of the actual inspection of the goods match the declaration in the tax exemption file and the goods fall within the scope of tax exemption, a Proposal Form is prepared, specifying that the goods fall within the scope of tax exemption as stipulated at point ..., section ..., Circular number ..., and submit it for the Head of the Customs Branch to review and sign.

+ In case the results of the actual inspection of the goods determine that the goods do not fall within the scope of tax exemption as declared in the tax exemption file, the tax assessment is carried out. The tax assessment is conducted according to the provisions of the Law on Tax Administration and the guidance provided in the Inspection and Assessment Procedure.

a3. In case the file is incomplete as prescribed, the request for supplementary documents has been made but the declarant has not supplemented the file within 10 days from the date of the request and cannot provide an explanation as required by the customs authority, and the customs authority has no basis to determine that the goods fall within the scope of tax exemption, then the tax assessment is carried out. The tax assessment is conducted according to the provisions of the Law on Tax Administration, the regulatory documents implementing the Law on Tax Administration, and the guidance provided in the current Inspection and Assessment Procedure.

b. The Head of the Customs Branch is responsible for checking the file proposed by the customs officer to approve and sign (if agreeing), give comments on the Proposal Form (if disagreeing), and transfer it to the customs officer for implementation.

In case the Leader agrees with the proposal, the customs officer implements stamping the tax-exempt goods on the original declaration form (the copy retained by the declarant and the copy retained at the unit) according to the following model:

Model of tax-exempt goods stamp

"Goods exempted from tax under Point ..., Section ..., Part ..., Circular number ..., dated ..., month ..., year ..., of the Ministry of Finance"
Director of the Customs Branch

c. For tax-exempt goods that must register the Tax Exemption List, in addition to the tasks mentioned in Step 1, point a and b of Step 2 of Section B of this procedure, the customs officer assigned to handle the file must also check the following contents:

- Inspect the declaration to see if the goods applying for tax exemption are included in the registered Tax Exemption List with the customs authority (correct name, quantity, ...).

- Check the types of documents required by the local Customs Department where the Tax Exemption List was registered (if any) such as: confirmation letters from the Ministry of Science and Technology regarding whether the means of transport is part of the production line of the enterprise, compare with the list of domestically produced goods issued by the competent authority to determine whether domestic production has already occurred, check the compatibility of goods listed in the Tax Exemption List as components, parts, separate units, mounting fixtures, molds, accessories for assembly or synchronized use with equipment, machinery, specialized transportation vehicles (Clause 6c, Article 16, Decree 149/2005/NĐ-CP) or goods as raw materials, materials used to manufacture equipment, machinery in the production line or to manufacture components, parts, separate units, mounting fixtures, molds, accessories for assembly or synchronized use with equipment, machinery (Clause 6d, Article 16, Decree 149/2005/NĐ-CP), ...

- Check the consistency and accuracy of the actual exported and imported goods requiring tax exemption with the registered Tax Exemption List with the customs authority, compare with the Balance Sheet presented by the enterprise and perform the following additional actions:

+ Update the quantity and value of exported and imported goods in the Balance Sheet and sign to confirm according to regulations; retain one copy of the Tax Exemption List and the Balance Sheet clearly indicating the quantity and value of exported and imported goods that have been exempted from export tax and import tax at the unit in the export and import file for retention at the customs unit.

+ Update the quantity and value of exported and imported goods in the Balance Sheet and sign to confirm according to regulations; retain one copy of the Tax Exemption List and the Balance Sheet clearly indicating the quantity and value of exported and imported goods that have been exempted from export tax and import tax at the unit in the export and import file for retention at the customs unit.

In case the quantity of goods listed on the Duty-Free List has been fully exported or imported, the Customs Sub-Department handling the final procedures shall confirm "all goods have been imported/exported" on the Monitoring Form (original copy presented by the enterprise), make two copies, one to be sent to the Customs Department where the Duty-Free List was registered, and one to be kept in the customs file of the last consignment according to regulations.

Step 3:

After affixing the duty-free stamp on the declaration form, the assigned officer shall recheck the entire file and proceed with subsequent steps of the current customs procedure.

III. PROCEDURE FOR CONSIDERING DUTY-FREE STATUS AND TAX REDUCTION.

Step 1: Receiving Documents and Assigning Customs Officers to Process the File

a. In cases where the Customs Department handles the file:

- The customs officer receiving the file shall record the number of documents in the file, stamp the incoming document, clearly note the date of receipt in the incoming document register, and transfer it to the relevant department for assignment of a customs officer to process the file according to regulations.

- The head of the relevant department shall be responsible for assigning a customs officer to process the file according to regulations.

b. In cases where the Customs Sub-Department handles the file:

- The customs officer receiving the file shall record the number of documents in the file, stamp the incoming document, clearly note the date of receipt in the incoming document register, and check the accompanying documents according to regulations.

In cases where the file is incomplete, the receiving customs officer shall prepare a Request Form, clearly noting the missing documents and requesting the declarant to supplement them, and submit it for approval by the supervisor.

In cases where the file is submitted to the wrong authority, draft a document transferring the file to the competent authority and inform the declarant, and submit it for signature by the supervisor.

In cases where the file is complete, submit it to the supervisor for assignment of a customs officer to process the file.

The supervisor shall be responsible for reviewing the file submitted by the receiving officer, signing the Request Form and draft document (in cases of incomplete files or incorrect jurisdiction), and assigning a customs officer to process the file (in cases of incomplete files).

Step 2: Reviewing and Approving the File

a. The assigned customs officer shall be responsible for reviewing the file:

- In cases where the file is incomplete according to regulations, prepare a Request Form according to the model issued along with this procedure and draft a document requesting supplementary information (specifying the reasons) and notify the declarant, and submit it for signature by the supervisor (if the Customs Sub-Department handles the file, this task is performed by the receiving officer as stated in Step 1).

- In cases where the file is submitted to the wrong authority, draft a document transferring the file to the competent authority and inform the declarant, and submit it for signature by the supervisor (if the Customs Sub-Department handles the file, this task is performed by the receiving officer as stated in Step 1).

- In cases where the file is complete according to regulations and within the correct jurisdiction, verify and compare the documents to determine the accuracy and legality of the file to ascertain whether the request falls under the category eligible for consideration of duty-free status or tax reduction according to current regulations, calculate the amount of tax subject to consideration of duty-free status or tax reduction, and handle accordingly:

- In cases where the request does not fall under the category eligible for consideration of duty-free status or tax reduction according to current regulations, prepare a Request Form according to the model issued along with this procedure, draft a notification document requesting the declarant to pay taxes according to regulations, and submit it for review and signature by the supervisor.

- In cases where the request falls under the category eligible for consideration of duty-free status or tax reduction according to current regulations, prepare a Request Form according to the model issued along with this procedure, clearly noting the quantity, value, and amount of tax subject to consideration of duty-free status or tax reduction, draft a Decision on Consideration of Duty-Free Status or Tax Reduction, and submit it for signature by the supervisor, specifying the number of customs declarations, quantity, value, amount of tax subject to consideration of duty-free status or tax reduction, reasons for considering duty-free status or tax reduction.

b. The supervisor shall be responsible for reviewing the file proposed by the customs officer, approving and signing it (if agreed), providing comments on the file (if not agreed), and transferring it to the customs officer for implementation.

- If the supervisor agrees with the proposal, the customs officer shall proceed with Step 3 below.

- If the supervisor disagrees, the customs officer shall draft a document notifying the declarant, clearly stating the reasons for not considering duty-free status or tax reduction, or provide additional explanations if there are other opinions.

Step 3: Implementing the Decision and Issuing Documents

After the Decision on Consideration of Duty-Free Status or Tax Reduction, the notification document requesting supplementary information, or the notification document stating that the request does not fall under the category eligible for consideration of duty-free status or tax reduction has been signed, the following actions shall be taken:

a. In cases where the request falls under the category eligible for consideration of duty-free status and a Decision on Consideration of Duty-Free Status or Tax Reduction has been issued, the original file shall be retained at the unit (if the authority belongs to the local Customs Sub-Department), and the assigned customs officer shall settle the amount of tax subject to consideration of duty-free status or tax reduction, and stamp the original customs declaration form (retained at the unit and the original retained by the declarant) according to the following models:

Model of Duty-Free Stamp

"Goods have been considered for duty-free status ... VND according to Decision No. ... dated ... day ... month ... year ... of the Customs Sub-Department ... /Customs Department ..."

 

Model of Tax Reduction Stamp

"Goods have been considered for tax reduction ... VND according to Decision ... dated ... day ... month ... year ... of the Customs Sub-Department ... /Customs Department ..."

Transfer the document to the document management department to issue the outgoing document according to current regulations on issuing outgoing documents.

b. In cases where the request falls under the category eligible for consideration of duty-free status or tax reduction and a Decision on Consideration of Duty-Free Status or Tax Reduction has been issued, but the original file is not retained at the unit (if the authority belongs to the local Customs Department), the local Customs Department shall be responsible for sending one original copy of the Decision on Consideration of Duty-Free Status or Tax Reduction to the Customs Sub-Department handling the customs procedures so that the Sub-Department can verify and settle the amount of tax and retain it in the original file of the consignment according to the provisions of point a of this step.

c. In cases where there is a notification document requesting supplementary information or a notification document stating that the request does not fall under the category eligible for consideration of duty-free status or tax reduction, transfer the document to the document management department to obtain a number, stamp it, and issue the document according to regulations.

IV. PROCEDURE FOR REVIEWING REFUND OF TAX, NON-COLLECTION OF EXPORT DUTY AND IMPORT DUTY

Step 1: Receiving and Assigning for Processing the File

a. In cases where the Customs Department handles the file:

- The customs officer receiving the file shall record the number of documents in the file, stamp the incoming document, clearly note the date of receipt in the incoming document register, and transfer it to the relevant department for assignment of a customs officer to process the file according to regulations.

- The head of the relevant department shall be responsible for assigning a customs officer to process the file according to regulations.

b. In cases where the Customs Sub-Department handles the file:

- The customs officer responsible for receiving the file shall record the number of documents in the file, stamp the incoming document, clearly note the date of receipt in the incoming document register, and check the accompanying documents according to regulations.

+ In case the file is incomplete, the receiving staff shall prepare a Proposal Form detailing the missing documents and request the taxpayer to supplement them, then submit it for the Leader's signature.

+ In case the file is sent to the wrong authority, a document transferring the file to the competent authority and informing the taxpayer shall be prepared and submitted for the Leader's signature.

In cases where the file is complete, submit it to the supervisor for assignment of a customs officer to process the file.

- The Leader is responsible for reviewing the file presented by the customs officer for approval of the Proposal Form (in cases where the file is incomplete or not within the jurisdiction) and assigning a customs officer to process the file (in cases where the file is incomplete).

Step 2: Checking the File

a. The customs officer assigned to process the file must check the completeness of the file and handle it as follows:

a1. In case the file is incomplete according to regulations, a Proposal Form shall be prepared according to the model issued with this procedure and a draft document requesting the taxpayer to supplement the file shall be notified to the taxpayer, then submitted for the Leader's signature (if the Customs Sub-Department processes the file, this task is performed by the receiving officer as mentioned in Step 1).

a2. In case the file is sent to the wrong authority, a draft document transferring the file to the competent authority and notifying the taxpayer shall be prepared and submitted for the Leader's signature (if the Customs Sub-Department processes the file, this task is performed by the receiving officer as mentioned in Step 1).

a3. In case the file is complete according to regulations, it shall be transferred to the next Step 3 below.

b. The supervisor shall be responsible for reviewing the file proposed by the customs officer, approving and signing it (if agreed), providing comments on the file (if not agreed), and transferring it to the customs officer for implementation.

- If the Leader agrees with the proposal, the customs officer shall transfer the document to the archives department to obtain a number, stamp it, and issue it according to regulations.

- If the Leader disagrees, the customs officer shall draft a notification document to inform the taxpayer of the reasons or provide additional explanations if there are other opinions.

Step 3: Classifying the File

For files that are complete according to regulations, the customs officer shall check the file, compare its consistency and legality with the provisions of Article 60 of the Law on Tax Administration No. 78/2006/QH11, Article 30 of Decree No. 85/2007/NĐ-CP dated May 25, 2007 of the Government detailing certain provisions of the Law on Tax Administration, and the Circular guiding this Decree to determine whether the file falls under or does not fall under the subject of tax refund and non-collection, and classify the file into two categories: Files eligible for pre-refund and post-check, and files eligible for pre-check and post-refund.

- If the file is eligible for pre-refund and post-check, it shall be transferred to follow the guidance at point a, Step 4 of this procedure.

- If the file is eligible for pre-check and post-refund, it shall be transferred to follow the guidance at point b, Step 4 of this procedure.

Step 4: Handling the File

a. For files classified as eligible for pre-refund and post-check:

- The customs officer shall check the accuracy of the amount of tax proposed for refund and the amount of tax proposed for non-collection according to current regulations, and handle it as follows:

+ If the goods fall under the category of tax refund according to tax laws, a Proposal Form shall be prepared according to the model issued with this procedure, and a draft decision for tax refund shall be prepared for the Leader's signature.

+ If the goods do not fall under the category of tax refund according to tax laws, a Proposal Form shall be prepared according to the model issued with this procedure, and a draft notification document shall be prepared to inform the taxpayer (detailing the reasons), then submitted for the Leader's signature.

+ If there is suspicion, a Proposal Form shall be prepared to submit to the Leader for review and transfer to the pre-check and post-refund category, and notify the taxpayer.

- The Leader is responsible for reviewing the file proposed by the customs officer, approving and signing (if agreeing), providing comments on the file (if disagreeing), and transferring it to the customs officer for implementation.

+ If the Leader agrees with the proposal, the customs officer shall proceed to the next Step 5 below.

+ If the Leader disagrees, the customs officer shall draft a notification document to inform the taxpayer (detailing the reasons) or provide additional explanations if there are other opinions.

b. For files classified as eligible for pre-check and post-refund:

Before handling the file as specified for the pre-refund and post-check category at point a of this step, the customs authority must check the file and/or accounting records, etc. (check the file, compare the consistency and validity of the file, payment receipts, warehouse entry and exit forms, raw material consumption quotas, if there is suspicion, continue with steps such as checking accounting records, accounting entries at the unit, inspecting actual production and business activities of the unit, verifying transactions with related organizations and individuals to determine the amount of tax refund), as guided by the current Circular on tax management by the Ministry of Finance.

Step 5: Implementing the Decision on Refund of Tax, Non-Collection of Tax, and Circulating Documents

a. After the Leader signs the Decision on Reviewing Refund of Tax, Non-Collection of Tax, or the notification document requesting supplementary information or informing that the file does not fall under the subject of tax refund and non-collection, the customs officer assigned to process the file shall transfer the signed documents to the archives department to obtain a number, stamp it, and issue it according to regulations.

The management and circulation of outgoing documents shall be carried out according to current regulations on managing outgoing documents.

b. In cases where the file is eligible for tax refund and non-collection and has a Decision on Refund of Tax, Non-Collection of Tax, the original file shall be retained at the unit (within the jurisdiction of the Local Customs Sub-Department), the customs officer assigned to process the file must check the tax arrears tracking system to determine the taxpayer's tax arrears status, verify the accuracy of the proposed tax refund amount and the proposed non-collection amount, and handle it accordingly based on specific circumstances.

b1. If the taxpayer no longer owes taxes, late payment penalties, or compulsory payments nationwide, then the tax refund amount shall be settled, and the original customs declaration form retained by the taxpayer shall be stamped with the tax refund approval seal or the non-taxation approval seal according to the following model:

Model of the tax refund approval seal or the non-taxation approval seal

"Goods approved for tax refund ... VND, (non-taxation ... VND) pursuant to Decision No. ... dated ... month ... year ... of the Customs Sub-Department/Department ...".

After settlement, the customs officer assigned the task shall make a copy of the original customs declaration form that has been settled and file it in the tax refund dossier, returning the original customs declaration form to the taxpayer.

In cases where the customs declaration requires multiple settlements, a tracking list shall be established for each tax refund (non-taxation) transaction, clearly recording the tax refund (non-taxation) amount for each transaction on the list; The final tax refund (non-taxation) procedure will stamp the tax refund (non-taxation) seal on the original customs declaration form, make a copy of the original customs declaration form that has been settled and file it in the tax refund dossier, and return the original customs declaration form to the taxpayer as described above for a single settlement.

b2. If the taxpayer still owes overdue taxes or penalties at the unit or if the taxpayer requests a set-off of the tax refund amount against newly incurred taxes or penalties, then the tax refund amount shall be settled, and the goods shall be stamped with the tax refund approval seal or the non-taxation approval seal on the original customs declaration form or a tracking list shall be established (if the customs declaration requires multiple settlements) as described above, and the set-off of taxes shall be carried out according to regulations.

b3. If the taxpayer still owes overdue taxes or penalties at other customs units, then a notification letter shall be issued to the customs unit where the taxpayer still owes overdue taxes or penalties, requesting that unit to issue a collection request or a budget collection order, or the taxpayer may submit a request for a set-off of the tax refund amount against newly incurred taxes or penalties at those customs units. Based on the collection request or budget collection order from the customs unit where the taxpayer still owes overdue taxes or penalties, or the request for a set-off of the tax refund amount against newly incurred taxes or penalties from the enterprise, the customs officer assigned to handle the matter shall carry out the set-off of taxes and collect taxes on behalf according to regulations, settle the tax refund amount, stamp the goods with the tax refund approval seal or the non-taxation approval seal on the original customs declaration form, and establish a tracking list (if the customs declaration requires multiple settlements) as described in point b1 above.

c. In cases where the taxpayer is eligible for tax refunds or non-taxation and has a Tax Refund Decision, a tax refund request form, or an original file not stored at the unit (if within the jurisdiction of the local Customs Department), the local Customs Department shall be responsible for sending one original copy of the Tax Refund Approval Decision, the tax refund request form, or the non-taxation request form to the Customs Sub-Department where the customs procedures were handled so that the Sub-Department can compare and settle the tax refund or non-taxation similar to the case where the local Customs Sub-Department carries out the tax refund or non-taxation according to the provisions of point b of this step and file it in the original file of the consignment according to regulations.

 

PROPOSAL FORM

(Regarding ...)

Content of report and proposal