Law on Export Tax and Import Tax No. 64-LTC/HĐNN8

LAW

EXPORT DUTY AND IMPORT DUTY

To manage export and import activities; expand foreign economic relations; enhance the effectiveness of export and import activities; contribute to the development and protection of production, guide domestic consumption, and contribute to generating revenue for the state budget;

Pursuant to Article 83 of the Constitution of the Socialist Republic of Vietnam;

This Law stipulates on export duty and import duty.

PART I

TAXPAYERS AND SUBJECTS OF TAXATION

Article 1

Goods permitted to be exported or imported through border gates of Vietnam, including goods from the domestic market brought into export processing zones and from export processing zones brought into the domestic market, are all subjects of export duty and import duty.

Article 2

Goods in the following cases are not subject to export duty and import duty after completing customs procedures:

1- Goods transported in transit or passing through the border of Vietnam;

2- Goods transshipped;

3- Humanitarian aid goods.

Article 3

Organizations and individuals having goods that are subjects of taxation (hereinafter referred to as taxpayers) must pay export duty and import duty when exporting or importing such goods.

Article 4

Exported or imported goods under international treaties to which Vietnam is a party and which provide different regulations on export duty and import duty shall be subject to export duty and import duty according to such international treaties.

Article 5

Based on this Law, the Council of Ministers shall promulgate export duty and import duty for small-scale trade at borders in accordance with the regulations on small-scale export and import trade at borders and the characteristics of each border area.

PART II

BASIS FOR TAXATION

Article 6

Basis for calculating export duty and import duty:

1- Quantity of each item declared in the export or import declaration form;

2- Taxable value;

3- Duty rate of each item.

, Clause 1, Clause 2 Article 7a of this Regulation.

Basis for determining taxable value:

1- For exported goods, it is the selling price at the export gate, as per the contract;

2- For imported goods, it is the purchase price at the import gate, including transportation fees and insurance fees, as per the contract.

In case of exported or imported goods traded in other ways or the price recorded in the contract is significantly lower than the actual purchase or sale price at the gate, the taxable value shall be determined based on the price prescribed by the Council of Ministers;

3- The exchange rate between Vietnamese Dong and foreign currency used to determine the taxable value is the buying rate published by the State Bank of Vietnam at the time of tax calculation.

CHAPTER III

DUTY SCHEDULE

Article 8

Based on the export and import policy during each period, the State Council shall prescribe the Duty Schedule according to the list of goods subject to duty and the duty rate range for each category of goods.

Based on the Duty Schedule issued by the State Council, the Council of Ministers shall prescribe the specific Duty Schedule according to the list of items and the duty rate for each item.

Article 9

The duty rate for exported and imported goods includes general duty rate and preferential duty rate:

1- General duty rate is the rate prescribed in the Duty Schedule;

2- Preferential duty rate is the rate applied to goods exported or imported from countries with which Vietnam has signed preferential clauses in their trading relations and other cases decided by the Council of Ministers.

The preferential duty rate is set lower but not exceeding 50% of the general duty rate of each item. The Council of Ministers decides the specific preferential duty rate for each item for each country.

PART IV

EXEMPTION FROM DUTY, REDUCTION OF DUTY, REFUND OF DUTY

Article 10

Exemption from duty in the following cases:

1- Non-repayable aid goods;

2- Temporary imported goods for re-export, temporary exported goods for re-import for exhibition purposes;

3- Goods that are movable assets, personal belongings of Vietnamese citizens going abroad for labor cooperation, expert cooperation, work, and study, carried or sent back within the limit prescribed by the Council of Ministers;

4- Exported or imported goods of foreign organizations and individuals enjoying tax exemption standards prescribed by the Council of Ministers in accordance with international treaties to which Vietnam is a party;

5- Exported goods to repay foreign debts of the Government.

Article 11

Consideration for exemption from duty in the following cases:

1- Goods imported exclusively for security, defense, scientific research, education, and training;

2- Raw materials and components imported for processing for export, as per the signed contract;

3- Exported or imported goods of foreign-invested enterprises and foreign partners in joint ventures operating under joint venture contracts in cases encouraged for investment according to the Law on Foreign Investment in Vietnam;

4- Gifts and presents from foreign organizations and individuals to Vietnamese organizations and individuals and vice versa, within the limit prescribed by the Council of Ministers.

Article 12

Consideration for reduction of duty in cases where goods suffer damage or loss during transportation or handling due to justifiable reasons certified by the State agency responsible for inspection of exported and imported goods.

The level of duty reduction is considered corresponding to the extent of loss of goods.

Article 13

Goods exempted from duty, considered for exemption from duty, or considered for reduction of duty as prescribed in Articles 10, 11, and 12 of this Law, but subsequently the grounds for exemption or reduction change, then full export duty and import duty must be paid.

The Council of Ministers shall prescribe the authority and procedures for exemption from duty, consideration for exemption from duty, consideration for reduction of duty, and collection of duties as prescribed in Articles 10, 11, 12, and 13 of this Law.

Article 14

Export duty and import duty may be refunded to taxpayers in the following cases:

1- Imported goods that have been taxed but remain stored in warehouses or bonded areas at the port and are allowed to be re-exported;

2- Goods that have been taxed for export but are not exported;

3- Goods that have been taxed based on the declaration form but the actual quantity exported or imported is less;

4- Raw materials and components imported for the production of exported goods;

5- Temporary imported goods for re-export, temporary exported goods for re-import, approved by competent state agencies.

CHAPTER V

IMPLEMENTATION

Article 15

The Council of Ministers shall uniformly manage the collection of export duty and import duty nationwide.

The General Customs Department shall be responsible for collecting export duty and import duty on exported and imported goods.

People's Committees of border provinces shall be responsible for coordinating with customs and tax authorities to collect taxes on small-scale exported and imported goods at borders as prescribed by the Council of Ministers.

Article 16

An entity or individual each time having goods permitted for export or import must declare and pay taxes.

The tax collection agency is responsible for inspecting, processing procedures, and collecting taxes.

Article 17

1- The tax calculation date for export tax and import tax is the day the declaration form for exported or imported goods is registered.

2- Within eight hours from the registration of the declaration form for exported or imported goods, the tax collection agency officially notifies the taxpayer of the amount of tax due.

3- The deadline for the taxpayer to fully pay the tax is as follows:

a) Fifteen days from the day the taxpayer receives the official notification of the amount of tax due from the tax collection agency, for commercial exported goods.

b) Thirty days from the day the taxpayer receives the official notification of the amount of tax due from the tax collection agency, for commercial imported goods.

c) Pay immediately when exporting goods out of the country or importing goods into Vietnam, for non-commercial exported or imported goods and border trade.

Article 18

In case the taxpayer disagrees with the officially notified tax amount, they still must pay the full amount, while having the right to appeal to the central tax collection agency for resolution; if still disagreeing, appeal to the Minister of Finance. The decision of the Minister of Finance is final.

Article 19

1- Within thirty days from the date of receiving all the refund tax application documents from taxpayers with goods exported or imported as stipulated in Article 14 of this Law, the Ministry of Finance must complete the tax refund to that taxpayer.

2- Beyond the deadline specified in Clause 1 of this Article, in addition to the tax amount to be refunded, the Ministry of Finance must pay interest on the refund amount at the bank deposit rate at the time of tax refund, starting from the date of delayed tax refund.

Chapter VI

HANDLING VIOLATIONS

Article 20

1- Beyond the tax payment deadline stipulated in Article 17 of this Law, for each day of delay, the taxpayer will be fined five thousandths (0.5%) of the delayed tax amount.

2- In case the taxpayer delays tax payment beyond ninety days, then the customs authority shall not process export or import procedures for the next shipment of that taxpayer until the taxpayer pays the full tax amount.

3- A taxpayer who engages in fraudulent behavior in tax payment shall be fined two to five times the amount of fraudulent tax.

The tax collection agency has the right to apply penalties as prescribed in Clauses 1 and 3 of this Article.

4- An individual evading a large amount of tax or being administratively punished according to Clause 3 of this Article but still violating or evading a very large amount of tax or committing crimes in other serious cases shall be criminally prosecuted according to Article 169 of the Penal Code.

Article 21

In case the taxpayer disagrees with the penalty decision of the tax collection agency, they still must comply with the penalty measures, while having the right to appeal to the central tax collection agency; if still disagreeing, appeal to the Minister of Finance.

The decision of the Minister of Finance is final.

Article 22

Tax officials and other individuals who take advantage of their positions or powers to misappropriate or embezzle export tax or import tax must compensate the State for the entire misappropriated or embezzled tax amount, and depending on the level of violation, may be disciplined, administratively penalized, or criminally prosecuted according to the law.

Tax officials and other individuals who take advantage of their positions or powers to cover up violations or intentionally violate the provisions of the Export Tax Law and Import Tax Law, lacking a sense of responsibility in implementing this Law, may be disciplined, administratively penalized, or criminally prosecuted according to the law depending on the level of violation.

Tax officials, due to lack of responsibility or intentionally handling incorrectly, causing damage to taxpayers or those subject to punishment, must compensate the damaged party.

Chapter VII

FINAL PROVISIONS

Article 23

The Export Tax Law and Import Tax Law took effect from March 1, 1992.

"d) Within no more than one working day from the date of receiving the dossier submitted for administrative procedures by the specialized agency assigned by the Provincial People's Committee, the Chairman of the Provincial People's Committee shall issue a notification of the result of the inspection of plant-based food exports or a certificate at the request of the importing country."

This Law replaces the Export Tax Law and Import Tax Law for Commercial Goods dated December 29, 1987, and abolishes Article 32 of the Special Consumption Tax Law dated June 30, 1990.

Article 25

The Council of Ministers shall provide detailed regulations to implement this Law.

-------------------------------

This Law was passed by the National Assembly of the Socialist Republic of Vietnam, Session VIII, 10th Meeting, on December 26, 1991.