Circular No. 87/2004/TT-BTC guides the implementation of export tax and import tax.

CIRCULAR

Guidelines for the Implementation of Export Tax and Import Tax

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Pursuant to the Law on Export Tax and Import Tax dated December 26, 1991 and the Laws amending and supplementing certain provisions of the Law on Export Tax and Import Tax dated July 5, 1993 and May 20, 1998; Pursuant to Decree No. 54/CP dated August 28, 1993 and Decree No. 94/1998/NĐ-CP dated November 17, 1998 of the Government detailing the implementation of the Law on Export Tax and Import Tax and the Laws amending and supplementing certain provisions of the Law on Export Tax and Import Tax;

Pursuant to Decree No. 101/2001/NĐ-CP dated December 31, 2001 of the Government detailing the implementation of certain provisions of the Law on Customs regarding customs procedures and customs inspection and supervision regimes;

Pursuant to Decree No. 60/2002/NĐ-CP dated June 6, 2002 of the Government stipulating the determination of the taxable value for imported goods according to the principle of implementing Article 7 of the General Agreement on Tariffs and Trade;

Pursuant to Decree No. 57/1998/NĐ-CP dated July 31, 1998 of the Government detailing the implementation of the Law on Commerce regarding export, import, processing, and agency sales of goods with foreign countries and Decree No. 44/2001/NĐ-CP dated August 2, 2001 of the Government amending and supplementing certain provisions of Decree No. 57/1998/NĐ-CP dated July 31, 1998 of the Government;

Pursuant to Decree No. 24/2000/NĐ-CP dated July 31, 2000 of the Government detailing the implementation of the Law on Foreign Investment in Vietnam and Decree No. 27/2003/NĐ-CP dated March 19, 2003 of the Government amending and supplementing certain provisions of Decree No. 24/2000/NĐ-CP dated July 31, 2000;

Pursuant to Decree No. 51/1999/NĐ-CP dated July 8, 1999 of the Government detailing the implementation of the Law on Encouraging Domestic Investment (amended) and Decree No. 35/2002/NĐ-CP dated March 29, 2002 of the Government amending and supplementing List A, B, and C issued as an appendix to Decree No. 51/1999/NĐ-CP dated July 8, 1999;

Pursuant to Decree No. 66/2002/NĐ-CP dated July 1, 2002 of the Government stipulating the allowance limits for personal luggage of persons exiting and entering the country and gifts and presents imported duty-free;

The Ministry of Finance hereby issues guidelines for the implementation of export tax and import tax as follows:

A. SCOPE OF APPLICATION:

I. TAXPAYERS AND TAX COLLECTORS:

1. Taxpayers:

Goods permitted for export and import as specified in Article 1 of Decree No. 54/CP dated August 28, 1993 of the Government are all subject to export tax and import tax, except for those cases listed in Section II, Part A of this Circular.

2. Tax Collectors:

Organizations and individuals exporting, importing goods, or accepting consignment to export or import goods subject to tax as specified in Point 1, Section I, Part A of this Circular are the tax collectors for export tax and import tax.

II. GOODS NOT SUBJECT TO EXPORT TAX OR IMPORT TAX:

Goods exported or imported that are not subject to export tax or import tax after customs procedures include:

1. Goods transiting through or passing through Vietnam's territory.

2. Goods traded under the transshipment method.

3. Goods imported from abroad into export processing zones, export processing enterprises, bonded warehouses, and outer free zones; Goods exported from export processing zones, export processing enterprises, bonded warehouses, and outer free zones to other countries; Goods transferred from one export processing zone, export processing enterprise, bonded warehouse, or outer free zone to another within Vietnam’s territory; Goods imported into or exported from areas permitted to be exempted from taxes according to the regulations of the Government.

4. Humanitarian aid goods.

B. BASIS FOR CALCULATING TAX:

The basis for calculating export tax and import tax includes the quantity of goods, the taxable value, and the tax rate of the exported or imported goods.

I. QUANTITY OF EXPORTED AND IMPORTED GOODS:

The quantity of exported and imported goods serving as the basis for calculating tax is the actual quantity of each type of goods exported or imported.

II. TAXABLE VALUE, EXCHANGE RATE FOR CALCULATING TAX, AND CURRENCY FOR PAYING TAX:

1. The taxable value is calculated in Vietnamese Dong and implemented as follows:

1.1. For goods exported or imported under a sales contract:

1.1.1. For exported goods: it is the selling price to the buyer at the port of export (FOB price), excluding insurance costs (I) and freight costs (F). The basis for determining the selling price is a sales contract containing the main elements of a contract as stipulated in the Commercial Law, consistent with relevant legal and valid documents related to the sale of goods;

1.1.2. For imported goods:

1.1.2.1. Imported goods under a sales contract falling within the scope of Circular No. 118/2003/TT-BTC dated December 8, 2003 of the Ministry of Finance guiding Decree No. 60/2002/NĐ-CP dated June 6, 2002 of the Government on the determination of the taxable value for imported goods according to the principle of implementing Article 7 of the General Agreement on Tariffs and Trade shall have their taxable value determined according to the guidance provided in Circular No. 118/2003/TT-BTC mentioned above.

1.1.2.2. Imported goods under a sales contract but not falling within the scope of Circular No. 118/2003/TT-BTC dated December 8, 2003 of the Ministry of Finance shall have their taxable value as the actual amount paid or to be paid by the buyer to the seller for the imported goods. The General Department of Customs will provide specific guidance on determining the taxable value as stated herein.

1.1.2.3. Some special cases are further guided as follows:

1.1.2.3.1. Machinery, equipment, and transportation vehicles leased shall have their taxable value for import calculated as the lease price actually paid according to the contract signed with foreign entities, consistent with relevant legal and valid documents related to leasing machinery, equipment, and transportation vehicles.

1.1.2.3.2. Machinery, equipment, and transportation vehicles sent abroad for repair shall have their taxable value for re-importation into Vietnam calculated as the actual repair cost according to the contract signed with foreign entities, consistent with relevant legal and valid documents related to the repair of machinery, equipment, and transportation vehicles.

The actual rental fee payable or the actual repair costs mentioned in points 1.1.2.3.1 and 1.1.2.3.2, if not including transportation costs (F) and insurance fees (I), must be added with transportation costs and insurance fees to determine the value for import tax calculation. In cases where imported goods are provided with insurance and transportation services by businesses operating in Vietnam, the value for import tax calculation does not include the value-added tax on insurance fees (I) and transportation costs (F).

1.1.2.3.3. Imported goods include warranty goods under sales contracts (including goods sent later), but if the contract price does not separately account for the warranty goods, the taxable value includes the value of the warranty goods.

1.1.2.3.4. For imported goods that are exempted from tax, temporarily exempted from tax, have been put into use in Vietnam, and subsequently transferred or changed their purpose of exemption or temporary exemption with permission from competent state authorities, the taxable import value shall be determined based on the remaining value of the goods calculated according to the time of use and storage in Vietnam (from the date of importation to the date of tax calculation) and shall be specifically determined as follows:

- When importing new goods (unused):

- When importing used goods:

1.2. For exported or imported goods not under a sales contract or a contract not in compliance with the provisions of the Trade Law, the taxable value for export and import taxes shall be determined by the local Customs Department. The General Department of Customs will provide specific guidelines on determining the taxable value in accordance with market transaction prices to prevent commercial fraud through pricing.

2. Exchange rate for tax calculation:

The exchange rate serving as the basis for determining the taxable value for exported and imported goods is the average trading rate on the inter-bank foreign exchange market published daily by the State Bank of Vietnam in the People's Army Newspaper. In cases where the People's Army Newspaper is not issued daily (or is issued but does not announce the exchange rate) or information does not reach the customs checkpoint on the day, the exchange rate for tax calculation for that day shall be applied according to the exchange rate for tax calculation of the preceding day.

For foreign currencies without transactions on the inter-bank foreign exchange market, they shall be determined based on the principle of cross-exchange rates between the US dollar (USD) and the Vietnamese dong traded on the inter-bank market and the exchange rate between the US dollar and other foreign currencies on the international market announced by the State Bank of Vietnam.

3. Currency for tax payment:

Export tax and import tax shall be paid in Vietnamese dong. If the taxpayer wishes to pay in foreign currency, it must be freely convertible foreign currency announced by the State Bank of Vietnam.

III. TAX RATES:

1. Export tax rate:

The export tax rate is specified for each item in the Export Tax Tariff.

2. Import tax rate:

The import tax rate includes preferential rates, special preferential rates, and ordinary rates, as follows:

2.1. Preferential rates apply to imported goods originating from countries or blocs that have agreements on most-favored-nation treatment in trade relations with Vietnam. The preferential rates are specified for each item in the Preferential Import Tax Tariff.

Conditions for applying preferential tax rates:

- Imported goods must have a Certificate of Origin (C/O) from a country or bloc that has agreed on most-favored-nation treatment in trade relations with Vietnam. The country or bloc must be included in the list of countries or blocs announced by the Ministry of Trade that have agreements on most-favored-nation treatment in trade relations with Vietnam;

- The Certificate of Origin (C/O) must comply with current legal regulations.

2.2. Special preferential tax rate is the tax rate applied to imported goods originating from a country or bloc with which Vietnam has a special preferential agreement on import tariffs under a free trade area regime, customs union, or to facilitate border trade, and other special preferential cases. The special preferential tax rate is specifically applied to each product according to the agreement.

Conditions for applying special preferential tax rates:

- Imported goods must have a Certificate of Origin (C/O) from a country or bloc that has a special preferential agreement on import tariffs with Vietnam. The Certificate of Origin (C/O) must comply with current legal regulations.

- Imported goods must be specific products listed in the catalog of goods eligible for special preferential tax rates for each country or bloc published by the Government or authorized agencies.

- Other conditions (if any) for applying special preferential tax rates shall be implemented according to specific provisions in guiding documents for each country or bloc with which Vietnam has committed to special preferential tax rates.

In cases where the Certificate of Origin (C/O) cannot be presented in accordance with the regulations when processing customs procedures, the Customs authority will still calculate taxes at the preferential tax rate or special preferential tax rate based on the commitment and declaration of the taxpayer. Within 60 days from the date of registering the Import Declaration Form, the taxpayer must present the C/O in accordance with the regulations to the Customs authority. If the C/O cannot be presented in accordance with the regulations, the Customs authority will recalculate the tax and impose penalties according to current regulations.

2.3. General tax rate is the tax rate applied to imported goods originating from a country or bloc with which Vietnam does not have an agreement on most-favored-nation treatment or a special preferential agreement on import tariffs.

The general tax rate is higher by 50% (fifty percent) than the preferential tax rate specified in the Preferential Import Tariff Schedule for each product and is calculated as follows:

2.4. Imported goods in certain cases are subject to additional taxes (as stipulated in Article 1 of the Law Amending and Supplementing Certain Provisions of the Law on Export Duties and Import Duties dated May 20, 1998).

Additional taxes, tariff-rate quotas, and absolute taxes are implemented according to separate guiding documents.

C. DECLARATION AND REGISTRATION OF EXPORTED AND IMPORTED GOODS AND PAYMENT OF TAXES:

I. DECLARATION OF EXPORTED AND IMPORTED GOODS:

Organizations and individuals with exported or imported goods must declare all contents fully and accurately as prescribed by law, submit the Export Declaration Form or Import Declaration Form, and submit/present related documents to the Customs authority responsible for export or import procedures.

II. TIME FOR CALCULATING TAXES AND DEADLINE FOR NOTIFICATION OF TAXES:

1. The time for calculating export duties and import duties is the day the taxpayer registers the Export Declaration Form or Import Declaration Form with the Customs authority as prescribed by the Customs Law. In cases where the taxpayer declares electronically, the time for calculating taxes is the day the Customs authority automatically issues the Declaration Form number from the system (hereinafter referred to as the day of registering the Export Declaration Form or Import Declaration Form).

Export duties and import duties are calculated based on the tax rate, taxable value, and exchange rate on the day of registering the Export Declaration Form or Import Declaration Form. More than 15 days from the registration date of the Export Declaration Form or Import Declaration Form but without actual exported or imported goods, the registered Export Declaration Form or Import Declaration Form will not be valid for customs procedures. When there are actually exported or imported goods, the taxpayer must re-declare and register the Export Declaration Form or Import Declaration Form, and the tax calculation date will be the registration date of the subsequent form.

In cases where the taxpayer declares before registering the Export Declaration Form or Import Declaration Form, the exchange rate for calculating taxes will be applied according to the exchange rate on the day the taxpayer declared, but not more than three consecutive days prior to the registration date of the Export Declaration Form or Import Declaration Form.

2. The deadline for notifying taxes is implemented as follows:

Within 8 (eight) working hours from the day the taxpayer registers the Export Declaration Form or Import Declaration Form, the Customs authority must notify the taxpayer of the amount of tax payable.

For cases requiring technical standards, quality, quantity, type inspection to ensure accuracy for tax calculation (such as determining the name of the product, commodity code according to the tariff schedule, quality, quantity, technical standards, condition of new or old imported goods...), the Customs authority will still issue a notification of the tax payable within 8 (eight) working hours from the day the taxpayer registers the Export Declaration Form or Import Declaration Form based on the taxpayer's declaration; at the same time, they must inform the taxpayer of the reasons for the inspection and if the inspection results differ from the taxpayer's declaration leading to changes in the tax payable, the taxpayer must pay the tax according to the inspection results.

After receiving the inspection results, if there are changes in the tax payable, the Customs authority will issue a revised notification within 8 (eight) working hours from the receipt of the inspection results. Related costs for inspections will be borne by the Customs authority if the Customs authority requests the inspection or by the taxpayer if the taxpayer requests the inspection.

III. TIME LIMIT FOR PAYING EXPORT DUTY AND IMPORT DUTY:

1. For export goods, it is 15 days from the date the tax payer receives the tax notification from the Customs authority regarding the amount of tax to be paid.

2. For imported materials and raw materials directly used for producing export goods, it is 9 months (rounded up to 275 days) from the date the tax payer receives the tax notification from the Customs authority regarding the amount of tax to be paid.

2.1. The conditions for applying the 9-month time limit for paying import duty on materials and raw materials directly used for producing export goods include:

- A registration form for imported materials and raw materials directly used for producing export goods;

- The tax payer does not owe overdue taxes (at the time of importation) as stipulated by the Law on Export Duty and Import Duty, except for cases where the tax payer has fully submitted the required refund application documents within the prescribed time limit (including cases where the Customs authority has not yet completed the settlement procedures), and the tax payer owes import duty beyond the deadline for imported materials and raw materials directly used for producing export goods, and the exported products.

Based on the specified documents, the Customs authority at the place of import procedures shall notify the tax payer of the 9-month time limit for paying tax, while monitoring the tax arrears of the tax payer to settle the tax debt when the actual export of the product occurs.

In some special cases due to production cycles or material and raw material reserves longer than 9 months, such as shipbuilding, machinery manufacturing, etc., the tax payment period may exceed 9 months. The tax payer must submit a written explanation for the local Customs Bureau to consider each specific case.

2.2. At the latest, by the end of the 9-month or longer tax payment period, the tax payer must complete the tax settlement procedures with the Customs authority. If the tax payer fails to export the product or exports it beyond the tax payment period, they will be subject to late payment penalties as follows:

- For imported materials and raw materials intended for producing export goods according to the registered export contract with the Customs authority but which are not exported, the late payment penalty will be calculated from the 31st day after receiving the tax notification from the Customs authority until the actual tax payment date.

- For imported materials and raw materials that have been used for production and exported beyond the tax payment period, the late payment penalty will be calculated from the day exceeding the tax payment period as notified by the Customs authority until the actual tax payment date.

- For cases where the tax payer is granted a 9-month or longer tax payment period but fails to export the product or exports it beyond the tax payment period, the tax payer must pay the tax (if the product is exported beyond the tax payment period, the tax must be paid upon expiration of the tax payment period and refunded when the product is actually exported) and will be subject to the penalties mentioned above, in addition to administrative fines under current regulations.

The tax payer cannot continue to apply the 9-month (or longer) tax payment period for subsequent consignments if there are outstanding taxes, late payment penalties, and administrative fines. Once the tax payer pays off the taxes, late payment penalties, and administrative fines as notified by the tax collection authority, they can continue to enjoy the 9-month (or longer) tax payment period for subsequent consignments of imported materials and raw materials directly used for producing export goods.

3. For goods traded under the temporary export-reimport or temporary import-reexport scheme, the tax payment period is 15 days from the date the authorized agency's permission expires (including extended periods) as stipulated by the Ministry of Trade.

4. For consumer goods, the tax must be fully paid before receiving the goods (the list of consumer goods is implemented according to the provisions of the Ministry of Trade). Except for the following specific cases:

4.1. Where the tax payer has a guarantee for the tax amount, the tax payment period is 30 days from the date the tax payer receives the tax notification from the Customs authority regarding the amount of tax to be paid, subject to the following conditions:

- The guarantor must be a credit institution or other organizations permitted to conduct certain banking activities under the Law on Credit Institutions and the Law Amending and Supplementing Certain Provisions of the Law on Credit Institutions.

- The guarantee must clearly state the name of the guarantor organization, the name of the guaranteed enterprise, the guaranteed tax amount, the guarantee period, and the guarantor's commitment.

Based on the guarantor organization's guarantee letter, the Customs authority at the place of import procedures shall notify the tax payer of a 30-day tax payment period corresponding to the guaranteed tax amount.

If the tax payer fails to pay the tax within the tax notification period set by the Customs authority, the Customs authority shall request the guarantor organization to pay the tax into the State budget on behalf of the guaranteed enterprise in accordance with the Law on Credit Institutions, the Law Amending and Supplementing Certain Provisions of the Law on Credit Institutions, and related implementing documents. Simultaneously, the guarantor organization must pay the late payment penalty from the date the tax payer received the tax notification from the Customs authority regarding the amount of tax to be paid. If the guarantor organization still fails to pay the tax into the State budget within 90 days after the tax payment deadline, the Customs authority has the right to request the direct management agency of the guarantor organization to freeze the guarantor organization's account until the full tax and penalty amounts are collected.

4.2. In the case where imported consumer goods directly serve security, defense, scientific research, and education and training are eligible for tax exemption according to regulations, the deadline for tax payment shall be thirty days from the date the taxpayer receives the tax notification from the Customs authority regarding the amount of tax due.

4.3. For imported goods listed in the Consumer Goods Catalogue as prescribed by the Ministry of Trade but are raw materials or components imported directly for production purposes, the deadline for tax payment shall be thirty days or two hundred seventy-five days (for goods that are raw materials or components imported directly for the production of export goods) from the date the taxpayer receives the tax notification from the Customs authority regarding the amount of tax due. Based on the dossier, the results of the actual import consignment inspection, and the commitment letter of the taxpayer regarding the use of directly imported raw materials or components for production, the local Customs Bureau shall issue the tax notification in accordance with the regulations. If fraud is detected, in addition to imposing late payment penalties according to the tax payment deadline for imported consumer goods, the taxpayer will also be subject to legal sanctions as prescribed by law.

5. For non-trade exported and imported goods; exported and imported goods of border residents, the taxpayer must complete tax payment before exporting goods out of the country or importing goods into Vietnam.

6. For imported goods not falling under the categories specified in points 2, 3, 4, and 5 above, the deadline for tax payment shall be thirty days from the date the taxpayer receives the tax notification from the Customs authority regarding the amount of tax due.

7. Imported goods with different tax payment deadlines must have separate customs declarations made according to each respective tax payment deadline.

8. In cases where exported or imported goods are still under Customs supervision but are temporarily detained by authorized state agencies for investigation or pending resolution, the tax payment deadline for each type of goods shall be implemented according to the Law on Export Tax and Import Tax and calculated from the date the authorized state agency issues a document allowing the release of the detained goods.

D. TAX EXEMPTION, CONSIDERATION FOR TAX EXEMPTION, AND TAX REDUCTION:

I. TAX EXEMPTION:

Organizations and individuals when exporting or importing goods eligible for tax exemption according to the provisions of Article 12 of Decree No. 54/CP dated August 28, 1993 of the Government, including:

1. Non-repayable aid goods under Aid Projects or Agreements between the Government of Vietnam and foreign organizations or aid agreements or notifications (including non-repayable aid goods provided by units winning bids for import supply to projects);

2. Temporary imported goods for re-export; temporary exported goods for re-import for participation in exhibitions or fairs;

3. Movable assets exempted from tax according to the following quotas:

- For movable assets of foreign organizations and individuals permitted to work or reside in Vietnam, the guidelines set forth in Circular Joint No. 04/TTLB dated February 12, 1996 and No. 04 BS/TTLB dated October 20, 1996 of the Ministry of Trade, the Ministry of Foreign Affairs, the Ministry of Finance, and the General Department of Customs shall apply.

- For movable assets of Vietnamese organizations and individuals permitted to take abroad for business and work, upon expiration of the period, those assets brought back to Vietnam shall be exempt from tax.

- Certain consumer goods (specifically: cars, motorcycles, televisions, refrigerators, air conditioners, audio systems currently in use) of Vietnamese families or individuals residing abroad and foreigners permitted to reside in Vietnam shall be exempt from import tax for one unit per household (or individual).

4. Goods exported or imported within the tax-free allowance for passenger luggage at Vietnamese border gates according to the quota prescribed in Decree No. 66/2002/NĐ-CP dated July 1, 2002 of the Government concerning the quota for passenger luggage and imported gifts and presents.

5. For goods exported or imported by foreign organizations and individuals enjoying privileges and immunities in Vietnam according to Vietnamese laws and consistent with international conventions to which Vietnam is a party, these shall be implemented according to the Ordinance on Privileges and Immunities for Diplomatic Missions, Consular Posts, and International Organization Representative Offices in Vietnam and the guidelines set forth in Circular Joint No. 04/TTLB dated February 12, 1996 and No. 04 BS/TTLB dated October 20, 1996 of the Ministry of Trade, the Ministry of Foreign Affairs, the Ministry of Finance, and the General Department of Customs.

6. For goods exported or imported for processing for export to foreign parties under processing contracts (Processing contracts in compliance with the provisions of Decree No. 57/1998/NĐ-CP dated July 31, 1998 of the Government detailing the implementation of the Law on Trade regarding export, import, processing, and agency purchase and sale of goods with foreign countries), tax exemptions shall apply in the following cases:

- Raw materials imported for processing;

- Consumables participating in the production process (paper, chalk, pens, marking pens, sewing pins, ink for printing, brushes for applying glue, screen frames, erasers, polishing oil...) if the enterprise establishes consumption quotas;

- Sample goods for processing;

- Machinery and equipment imported directly for processing as agreed in the processing contract. At the end of the processing contract term, they must be re-exported; if not re-exported, they must be declared and taxed;

- Processed goods for export (if there is an export tax);

- Waste products destroyed under the supervision of the Customs authority.

- Finished products provided by the contractor for attachment to the processed goods or combined with the processed goods to form integrated items for export abroad shall be exempted from tax as imported materials and supplies for processing if they meet the following conditions: (i) They are reflected in the processing contract or its annexes; (ii) In the usage quota of imported materials and supplies for processing purposes, there must be a quota for these finished products; (iii) They are managed like imported materials and supplies for processing.

The director of the enterprise accepting processing is responsible for the use of imported materials and supplies for processing purposes; the actual consumption quota of imported materials and supplies for processing. In case of violation, it will be handled according to the provisions of the law.

Equipment, machinery, materials, supplies, and processed goods paid for by foreign parties instead of processing fees when importing must pay import duties according to regulations.

The management and refund procedures for import duties on imported materials and supplies and export duties on exported processed goods shall be carried out in accordance with separate documents issued by the Ministry of Finance regarding customs procedures for goods imported under processing contracts with foreign parties.

7. Machinery, equipment, transportation means imported into Vietnam by foreign contractors under the temporary import-re-export method for construction projects funded by official development assistance (ODA) shall be exempted from import and export duties when re-exported. Upon completion of the construction period, foreign contractors must re-export the aforementioned goods. If not re-exported but sold or transferred in Vietnam, permission from competent state authorities is required, and import duties must be declared and paid according to regulations.

For passenger cars with less than 24 seats and vehicles designed to carry both passengers and cargo equivalent to passenger cars with less than 24 seats, the temporary import-re-export method does not apply. Foreign contractors wishing to import such vehicles into Vietnam for use must pay import duties according to regulations. When completing construction work, foreign contractors must re-export the imported vehicles to their home countries and be refunded the paid import duties. The amount of refund and refund procedures are implemented according to point 1.11, Section I, Part E of this Circular.

Local Customs Departments shall organize the implementation of tax exemption procedures for each case based on the above regulations. When granting tax exemptions for cases mentioned in points 1, 2, 3, 5, and 7, the Customs Department must issue a tax exemption decision for each case and keep records according to regulations. Upon issuing a tax exemption decision, the Customs Department must refund the exempted import duties and clearly note on the Export-Import Declaration Form: "Goods exempted from tax according to Decision No... dated... month... year... of...".

II. CONSIDERATION FOR TAX EXEMPTIONS:

Organizations and individuals exporting or importing goods eligible for tax exemption consideration must have complete documentation as follows:

1. For specialized imported goods directly serving national security, defense, scientific research, and education and training:

1.1. Specialized imported goods directly serving national security and defense:

- A letter requesting tax exemption from the principal ministry;

- A specific list of quantities and types of specialized imported goods for national security and defense approved by the principal ministry's leadership and registered and agreed upon with the Ministry of Finance at the beginning of the year (the principal ministry must register the import plan by March 31 each year at the latest);

- An import declaration form that has been processed through customs;

- A tax notification from the Customs Department;

- An import contract or agency import contract (if the goods are agency-imported) or a notice of successful tender accompanied by a supply contract (if the goods are imported through bidding, the payment price does not include import taxes).

1.2. Specialized imported goods directly serving scientific research:

- A letter requesting tax exemption from the entity implementing the scientific research project;

- Scientific research project files including:

+ Approval decision for the project issued by the competent state authority;

+ A list of goods needed for the project approved by the project approval authority;

- An import declaration form that has been processed through customs;

- A tax notification from the Customs Department;

- An import contract or agency import contract (if the goods are agency-imported) or a notice of successful tender accompanied by a supply contract (if the goods are imported through bidding, the payment price does not include import taxes).

1.3. Specialized imported goods directly serving education and training:

- A letter requesting tax exemption from the entity implementing educational and training activities;

- An approval decision for the investment project to equip facilities for educational and training activities issued by the competent state authority;

- A list of facilities included in the project approved by the project approval authority;

- An import declaration form that has been processed through customs;

- A tax notification from the Customs Department;

- An import contract or agency import contract (if the goods are agency-imported) or a notice of successful tender accompanied by a supply contract (if the goods are imported through bidding, the payment price does not include import taxes).

Based on the specified documents, the General Customs Department will examine and issue a tax exemption decision for case 1.1; local Customs Departments will examine and issue a tax exemption decision for cases 1.2 and 1.3. The Customs Department handling the import procedures will base its actions on the tax exemption decisions of the General Customs Department and local Customs Departments, check and compare with the original documents of the imported goods lot to implement the refund of the exempted import duties and clearly note on the Import Declaration Form: "Goods exempted from tax according to Decision No... dated... month... year... of...".

2. Imported goods of foreign-invested enterprises and joint ventures established under the Law on Investment by Foreign Investors in Vietnam shall be implemented in accordance with Decree No. 24/2000/NĐ-CP dated July 31, 2000, detailing the implementation of the Law on Investment by Foreign Investors in Vietnam, and Decree No. 27/2003/NĐ-CP dated March 19, 2003, amending and supplementing certain articles of Decree No. 24/2000/NĐ-CP dated July 31, 2000, and current guiding documents.

In the case where an enterprise enjoys tax exemption for imported goods but does not import goods from abroad but instead purchases goods that have been exempted from import tax from foreign-invested enterprises permitted to transfer such goods within Vietnam, the enterprise is allowed to accept those goods to create fixed assets of the enterprise exempted from import tax under the Law on Foreign Investment in Vietnam and current guiding documents, while not back-charging import tax to the enterprise permitted to transfer the goods. These goods must be deducted retrospectively (quantity, value) from the list of tax-exempt goods approved by competent state agencies for the enterprise.

3. Imported goods of domestic investors under the Law on Encouraging Domestic Investment (amended) shall be implemented in accordance with the provisions of Decree No. 51/1999/ND-CP dated July 8, 1999, of the Government detailing the implementation of the Law on Encouraging Domestic Investment (amended), and Decree No. 35/2002/ND-CP dated March 29, 2002, of the Government amending and supplementing List A, B, and C issued as an appendix to Decree No. 51/1999/ND-CP dated July 8, 1999, and current guiding documents.

In the case where an enterprise enjoys tax exemption for imported goods but does not import goods from abroad but instead purchases goods that have been exempted from import tax from domestic enterprises permitted to transfer such goods within Vietnam, the enterprise is allowed to accept those goods to create fixed assets of the enterprise exempted from import tax under the Law on Encouraging Domestic Investment (amended) and current guiding documents, while not back-charging import tax to the enterprise permitted to transfer the goods. These goods must be deducted retrospectively (quantity, value) from the list of tax-exempt goods approved by competent state agencies for the enterprise.

4. For goods that are gifts or presents:

Goods that are gifts or presents which are eligible for consideration for exemption from export tax and import tax include goods that are permitted to be exported or imported, including specific cases and quotas for exemption from tax as follows:

4.1. For exported goods:

- Goods permitted to be exported by organizations and individuals from Vietnam to give as gifts to organizations and individuals in foreign countries.

- Goods of organizations and individuals from foreign countries given as gifts by Vietnamese organizations and individuals when working, traveling, or visiting relatives in Vietnam are permitted to be exported out of the country.

- Goods of Vietnamese organizations permitted to be exported out of the country to participate in trade fairs, exhibitions, and advertising; subsequently used to give as gifts to organizations and individuals in foreign countries.

- For organizations and individuals dispatched by the State to work or study abroad or Vietnamese individuals traveling abroad, in addition to the personal luggage allowance upon departure, if they carry goods as gifts for organizations and individuals in foreign countries, they are also entitled to the quota for exemption from export tax on gift goods according to the specified standards.

The quota for gift goods eligible for exemption from export tax: The value of the consignment of goods does not exceed thirty million dong for organizations and does not exceed one million dong for individuals.

4.2. For imported goods:

4.2.1. Goods that are gifts or presents from organizations and individuals from foreign countries to Vietnamese organizations with a value of goods not exceeding thirty million dong are eligible for tax exemption.

4.2.2. Goods that are gifts or presents from organizations and individuals from foreign countries to Vietnamese individuals with a value of goods not exceeding one million dong are eligible for tax exemption, or if the value of the goods exceeds one million dong but the total tax payable is less than fifty thousand dong, they are also eligible for tax exemption. In the case where goods are declared as sent as gifts to an individual but in reality are sent as gifts to an organization (with confirmation from the organization) and the goods are managed and used by the organization, the tax exemption standard will apply as stipulated for goods that are gifts or presents from organizations and individuals from foreign countries to Vietnamese organizations.

4.2.3. For goods of organizations and individuals from foreign countries permitted to temporarily import into Vietnam for trade fairs, exhibitions, or to be imported into Vietnam as samples or for advertising purposes but then not re-exported but instead given as gifts or souvenirs to Vietnamese organizations and individuals, they are eligible for tax exemption in the following specific cases:

- Goods used as gifts or souvenirs for visitors to trade fairs, exhibitions with a low value of fifty thousand dong per item or less, and the total value of the consignment of imported goods used for giving as gifts does not exceed ten million dong.

- Goods that are single pieces of equipment or products given by the owner as gifts to domestic organizations for research and production samples regardless of their value.

4.2.4. Goods of organizations and individuals from foreign countries permitted to import into Vietnam for the purpose of being prizes in sports, cultural, artistic, etc., competitions are eligible for tax exemption for goods used as prizes with a value not exceeding two million dong per prize (for individuals) and thirty million dong per prize (for organizations) and the total value of the consignment of imported goods used as prizes does not exceed the total value of the prizes in kind.

4.2.5. For foreign individuals permitted to enter Vietnam beyond the personal luggage allowance, they are eligible for tax exemption for goods carried with a value not exceeding one million dong to be given as gifts, presents, or souvenirs to Vietnamese organizations or individuals.

4.2.6. Goods of entities temporarily exempted from tax but not re-exported but permitted by competent state agencies to be given as gifts or presents to Vietnamese organizations and individuals, the quota for gift goods eligible for tax exemption is not to exceed thirty million dong for organizations and not to exceed one million dong for individuals.

4.2.7. Samples sent from organizations and individuals abroad to Vietnamese organizations and individuals, and vice versa, shall be carried out according to the exemption limit for gifts and presents not exceeding thirty million dong for organizations and not exceeding one million dong for individuals.

4.3. Goods that are gifts or presents with a value exceeding the exemption limit specified above shall pay tax on the excess amount. However, in the following cases, the entire value of the consignment may be exempted from tax:

4.3.1. Units receiving gifts or presents, which are administrative and public service units, social organizations operating with budget funds, if permitted by their superior management authority to accept and use them, may be exempted from tax on a case-by-case basis. In this case, the unit must record an increase in assets from the budget including both tax, the value of the gift consignment, and must manage and use it in accordance with current regulations on asset management from budget funds.

4.3.2. Consignments of gifts or presents with humanitarian, charitable, or scientific research purposes.

4.3.3. Overseas Vietnamese sending medicine to family members in Vietnam who have meritorious service to the revolution, war invalids, martyrs, elderly people without support confirmed by local authorities.

4.4. The value of goods that are gifts or presents shall be determined as follows:

4.4.1. For exported goods: it is the value stated on the invoice in accordance with current regulations. In the absence of an invoice, the local Customs Office shall determine the value of the goods based on the declaration of the owner consistent with market transaction prices.

4.4.2. For imported goods: it is the value of the imported goods before import tax and shall be determined in accordance with the guidelines set forth in Part B of this Circular.

4.5. Procedures and documents for tax exemption:

The procedures and documents for tax exemption of gifts, presents, and samples include:

- A letter requesting tax exemption from the organization or individual receiving the gift or present;

- Notification or decision or agreement to give the goods; notification or agreement to send samples;

- Export or import declaration forms already processed by customs;

- A tax notification from the Customs Department;

- Confirmation letter from local authorities (for the case mentioned in Article 4.3.3 above);

In the case where goods that are gifts, presents, or samples are transported and processed by enterprises engaged in freight forwarding and transportation, in addition to the above procedures and documents for tax exemption, there must also be a power of attorney from the organization or individual receiving the gift or sample to the transportation enterprise responsible for transportation and customs clearance.

In the case where goods temporarily exempted from tax but not re-exported are given as gifts or presents to Vietnamese organizations or individuals with the permission of the competent state agency, the procedures and documents for tax exemption include: (i) A letter requesting tax exemption; (ii) Invoice or warehouse release note for the gift consignment; (iii) Delivery receipt between the giver and the recipient of the gift consignment.

Based on the documents and provisions above, the local Customs Office will examine and issue a tax exemption decision for consignments of gifts from foreign organizations and individuals to Vietnamese individuals and vice versa. For the cases mentioned in Articles 4.3.1 and 4.3.2 above, the General Department of Customs will specifically examine and handle.

On the basis of the tax exemption decision, the customs office handling the import procedures must refund the tax exempted and clearly indicate on the export or import declaration form: "Tax-exempt goods under Decision No... dated... month... year... of...".

5. For imported goods sold at duty-free shops: customs offices shall manage them according to the supervision system for imported goods sold duty-free as stipulated in the Regulations on duty-free shops issued together with Decision No. 205/1998/QĐ-TTg dated October 19, 1998, and Decision No. 206/2003/QĐ-TTG dated October 7, 2003 of the Prime Minister.

If there are promotional goods or test goods provided free of charge by foreign parties to duty-free shops for sale alongside other goods sold at duty-free shops, these promotional and test goods do not need to be taxed. Promotional and test goods are subject to the supervision and management of customs offices like imported goods sold at duty-free shops.

The local Customs Office shall organize the implementation of tax exemptions and the management of goods sold duty-free as stipulated herein.

III. TAX REDUCTION:

Exported and imported goods during transportation and loading/unloading (goods still under the supervision and management of customs offices according to current regulations of the Customs Law and guiding documents for implementing the Customs Law) that suffer damage or loss for justifiable reasons shall be examined by the local Customs Office and a tax reduction decision shall be issued based on the degree of loss or damage ascertained and relevant documents.

E. REFUND OF TAX, COLLECTION OF TAX:

I. REFUND OF TAX:

1. Cases eligible for tax refund:

Cases where taxes have been paid and are eligible for refund according to Article 16 of Decree No. 54/CP dated August 28, 1993 of the Government, organizations and individuals must have the following documents:

1.1. For imported goods that have been taxed and remain in bonded warehouses under customs supervision, if they are allowed to be re-exported, the following documents must be provided:

- A letter requesting a refund of the import tax paid;

- Import declaration form with tax calculation by the customs office;

- Export declaration form processed by customs, with confirmation from the customs office that the goods belong to the import declaration form still stored in the bonded warehouse at the port or goods still under customs supervision have been re-exported;

- Tax notice; Payment voucher.

1.2. For exported goods that have been taxed but are not exported, the following documents must be provided:

- A letter requesting a refund of the export tax paid;

- Export declaration form with confirmation from the customs office that the goods were not exported;

- Tax notice; Payment voucher.

1.3. For goods that have been taxed for export or import but the actual export or import quantity is less, the following documents must be provided:

- Letter requesting refund of excess export tax or import tax paid;

- Export declaration or import declaration for goods that have completed customs procedures;

- Tax notification; Payment receipt;

- Sales invoice, purchase invoice according to the sales contract;

1.4. For imported goods that do not meet the quality, specifications, grade stipulated in the sales contract signed with foreign parties due to errors made by the foreign side, with a certificate from a competent state agency and confirmation from the foreign consignor, the local Customs Department shall base its decision on the inspection results of the actual imported goods and compare them with current state regulations to determine whether to allow the importation of the goods or force their re-exportation. At the same time, recalculate the import tax payable to collect the appropriate tax based on the actual imported goods in cases where there is a change in the tax rate or taxable value. If the enterprise has already paid more import tax than the recalculated amount based on the actual imported goods, it will be refunded the excess amount paid.

The application for tax refund includes:

- Letter requesting refund of excess import tax paid;

- Inspection result of imported goods by a competent state agency;

- Confirmation from the foreign consignor regarding the incorrect shipment of goods;

- Import declaration for goods clearly stating the inspection results and related import documents for the consignment;

- Tax notification; Payment receipt;

- Bank payment receipt for the imported consignment;

1.5. In cases of mistakes in declaring the taxable amount (including both the taxpayer or the Customs authority), the excess tax paid can be refunded within one year from the date of filing the export or import declaration to the date the mistake was discovered. The application for tax refund includes:

- Letter requesting refund of excess export tax or import tax paid;

- Export declaration or import declaration (accompanied by relevant export or import documents);

- Tax notice; Payment voucher.

1.6. For imported raw materials and components used in the production of exported goods, the refund of import tax corresponds to the proportion of finished products exported, specifically as follows:

1.6.1/ Types of raw materials and components eligible for import tax refund include:

- Imported raw materials and components (including assembled parts, semi-finished products, packaging materials) directly constituting the physical entity of the exported product;

- Raw materials and components directly involved in the production process of exported goods but not directly converted into goods or not constituting the physical entity of the product, such as paper, chalk, drawing pens, marking pens, sewing pins, printing ink, glue brushes, glue brooms, screen frames, erasers, polishing oil, etc.;

1.6.2. Cases eligible for tax refund include:

1.6.2.1. Enterprises importing raw materials and components for the production of exported goods or engaging in domestic processing (including processing at export processing zones, industrial parks, and other areas permitted tax exemption by the Government; or processing abroad; or joint production of exported goods) and receiving the products for export; The required documents include:

- Letter requesting refund of import tax for raw materials and components imported for the production of exported goods, detailing the quantity and value of imported raw materials and components used in production, the import tax paid, the quantity of exported goods, and the requested refund of import tax;

- Statement of actual consumption of imported raw materials and components per unit product;

- Import declaration for raw materials and components that have completed customs procedures; Import contract;

- Tax notification; Payment receipt;

- Export declaration for goods that have completed customs procedures; Export contract;

- Entrusted export and import contract if the transaction is conducted through entrusted export and import;

- Bank payment receipts for export consignments;

- Joint production contract for exported goods if the case involves joint production of exported goods;

In cases where enterprises provide raw materials and components to export processing zones or foreign entities for processing and then reclaim the processed products for production and/or export, in addition to the aforementioned documents, the following additional documents must be provided:

- Export declaration for raw materials and components for processing; Import declaration for products from export processing zones or foreign entities;

- Payment receipt for imported processed products (tax receipt);

- Processing contract with export processing zones or foreign entities;

1.6.2.2. Enterprises importing raw materials and components for domestic production, subsequently finding an export market (maximum allowable period is two years from the date of filing the raw material and component import declaration) and using these raw materials and components for the production of exported goods, which have been actually exported overseas; The procedure and documents for tax refund are similar to those in case 1.6.2.1;

1.6.2.3. For raw materials and components imported to fulfill processing contracts (not commissioned by foreign parties but imported by the enterprise accepting the processing contract with foreign customers), when exporting the processed products, they will be eligible for import tax refund as if they were imported for the production of exported goods. The required documents for the import tax refund include:

- Letter requesting refund of import tax for raw materials and components imported for processing exported goods, detailing the type, quantity, value of imported raw materials and components; the import tax paid; the quantity of exported products; the requested refund of import tax;

- Statement of actual consumption of imported raw materials and components per unit of exported product;

- Import declaration for raw materials and components; Import contract;

- Payment receipt for import tax;

- Export declaration for goods (in processing form) that have completed customs procedures (a certified copy by the exporting enterprise);

- Processing contract signed with foreign customers specifying the type, variety, quantity of raw materials and components imported by the enterprise accepting the processing contract.

- Payment vouchers for bank transactions for export shipments;

- Entrusted import contracts for raw materials and supplies (if it is an entrusted export and import arrangement).

1.6.2.4. An enterprise importing raw materials and supplies to produce products, which are then used to process goods for export under processing contracts with foreign entities. The procedures and documentation for tax refund are similar to those described in Article 1.6.2.1 above. Notably:

- The export contract for the product is replaced by a processing contract for exported goods signed with foreign customers; The purchase contract for the product used in the processing contract and the processing contract for exported goods with foreign customers may be included in the same contract.

- A statement of actual consumption rates of imported raw materials and supplies used to produce processed goods and the actual consumption rates of raw materials used to produce exported goods under the processing contract.

- A declaration of the quantity of products produced by the enterprise that have actually been used to produce exported goods, signed by the enterprise's director and the enterprise assumes full responsibility before the law.

1.6.2.5. An enterprise importing raw materials and supplies to produce products sold to other enterprises for direct production and processing of goods for export. After the producing and processing enterprise has exported the products abroad, the importing enterprise is entitled to a tax refund corresponding to the portion of raw materials and supplies used by the other enterprise to produce the products and exported.

In cases where an enterprise imports raw materials and supplies to produce products sold to other enterprises for direct export as part of a kit, a tax refund will be considered based on the export ratio of the products (kit), provided that: (i) The products produced from imported raw materials and supplies are components of the export kit; (ii) The purchasing enterprise combines its purchased products with the components produced by itself to form the export kit.

The documentation required for requesting a tax refund includes:

- A letter requesting a refund of import tax, detailing: the quantity and value of imported raw materials and supplies used to produce goods sold to the exporting enterprise; the quantity of produced goods sold, the quantity of exported products; the amount of import tax paid; the amount of import tax requested for refund.

- A statement of actual consumption rates of imported raw materials and supplies used to produce a unit of product sold to the exporting enterprise or for processing exported goods.

- Import customs declaration forms for raw materials and supplies; Import contracts.

- Tax notification; Payment receipt;

- Export customs declaration forms of the exporting enterprise, certified by the Customs authority (photocopies certified as true copies by the exporting enterprise).

- Invoices for the sale of goods between the two entities.

- Economic contracts for the purchase and sale of goods between the importing enterprise and the exporting enterprise, specifying that the goods are used for production or processing of exported goods (or for export as part of a kit); Payment vouchers for the purchase of goods.

- Processing contracts with foreign customers (photocopies certified as true copies by the enterprise).

- Declarations by the exporting enterprise regarding the quantity and actual consumption rates of purchased products used directly to produce a unit of exported product; Payment vouchers for exported shipments with foreign customers, signed by the exporting enterprise's director, stamped, and the enterprise assumes full responsibility for the accuracy of the declared figures.

- Entrusted export and import contracts (if it is an entrusted export and import arrangement).

1.6.2.6. An enterprise importing raw materials and supplies to produce products sold to another enterprise for direct export. After the purchasing enterprise has exported the products, the importing enterprise is entitled to a tax refund corresponding to the quantity of exported products.

The procedures and documentation for requesting a tax refund include:

- A letter requesting a refund of import tax, detailing: the quantity and value of imported raw materials and supplies; the amount of import tax paid; the quantity of produced goods sold to the exporting enterprise; the quantity of exported products; the amount of import tax requested for refund.

- A statement of actual consumption rates of imported raw materials and supplies used to produce a unit of product sold to another enterprise for export.

- Import declaration for raw materials and components that have completed customs procedures; Import contract;

- Tax notification; Payment receipt;

- Purchase and sale contracts; Invoices for the sale of products by the selling enterprise to the exporting enterprise; Payment vouchers for the sale of goods.

- Export customs declaration forms (photocopies certified as true copies by the exporting enterprise).

- Export contracts with foreign customers (certified as true copies by the exporting enterprise).

- Payment vouchers for bank transactions for export shipments;

- Entrusted export contracts, Entrusted import contracts (if it is an entrusted export and import arrangement).

The cases specified in points 1.6.2.5 and 1.6.2.6 above can only be considered for a tax refund on imported raw materials and supplies used to produce exported goods if the following conditions are met:

- The selling enterprise and the purchasing enterprise must pay VAT according to the deduction method (the enterprise presents a photocopy certified as a true copy by the enterprise); The enterprise must be registered and have a tax identification number; There must be invoices for the sale of goods between the two enterprises.

- Payment for exported goods through banks using foreign currency as prescribed by the State Bank of Vietnam.

- Within a maximum period of 01 year (365 days) from the date of importation of raw materials and supplies (based on the date of registration of the import declaration form with the Customs authority) to the actual export of the products.

1.6.2.7. In the case where an enterprise imports raw materials and supplies to produce goods for sale to foreign traders but delivers the goods to another enterprise in Vietnam at the designation of the foreign trader to be used as raw materials for further production or processing for export, it shall be carried out in accordance with the guidance provided in Circular No. 90/2002/TT-BTC dated October 10, 2002, issued by the Ministry of Finance.

1.6.3. In the case where raw materials and supplies are imported for the production of goods for export, if the actual exported products within the tax payment period as stipulated in Section III, Part C of this Circular, then there is no need to pay import tax on the corresponding raw materials and supplies. The application dossier for non-payment of taxes shall be in accordance with the dossier for tax refund, except that the tax payment receipt shall be replaced by the customs declaration form issued by the customs authority.

1.6.4. Consumption quota of imported raw materials and supplies for tax refund consideration:

1.6.4.1. Enterprises must establish and declare the consumption quota of imported raw materials and supplies for producing export goods to the customs authority at the place of raw material and supply import before exporting the product. In cases where changes in the model or type of export goods during production result in additional types of imported raw materials and supplies for producing different export products from those declared to the customs authority, the enterprise must declare and re-register the consumption quota of imported raw materials and supplies for producing export goods with the customs authority no later than fifteen days from the date of such change before proceeding with the export procedures. The consumption quota includes the actual loss of raw materials and supplies during production (if any). The maximum allowable actual loss rate of raw materials and supplies for tax refund purposes shall not exceed three percent (3%) of the value (or quantity) of imported raw materials and supplies used to produce export products. For certain products, if the competent state agency specifies a higher loss rate than three percent, such rate shall apply, and the competent state agency shall bear responsibility under the law for such loss rate.

Specifically, the consumption quota and loss rate of raw materials and supplies for goods processed for foreign traders shall be agreed upon in the processing contract. The director of the enterprise undertaking the processing shall be responsible for using the imported raw materials and supplies for the intended processing purpose.

If there are doubts about the consumption quota of raw materials and supplies for producing export products, the tax refund examination authority may request an appraisal from the specialized management agency of the relevant commodity or coordinate with the local tax authority (where the enterprise has registered its tax code) to organize an inspection at the enterprise to serve as the basis for considering and resolving the tax refund for the enterprise. The General Department of Customs shall direct the local customs authority to cooperate with the local tax authority to organize an inspection of the actual consumption of raw materials and supplies for producing export products related to the tax refund process.

1.6.4.2. In the case where one type of imported raw material or supply is used to produce multiple different types of products (for example, importing wheat to produce flour, resulting in two products: flour and bran; importing condensate to refine oil, resulting in products such as gasoline and diesel,...), but only one type of product is exported, the enterprise must report to the customs authority. The amount of import tax refunded shall be determined based on the allocation formula as follows:

Amount of Import Tax Refunded (corresponding to the actually exported product)

- Agency export and import contracts (if applicable to agency export and import goods);

- Payment vouchers through the bank for the exported consignment.

1.7.2. For goods imported by Vietnamese enterprises authorized to import for agency distribution and sale to foreign entities; goods imported for sale to foreign vessels operating international routes through Vietnamese ports and Vietnamese vessels operating international routes as prescribed by the Government, the following documents are required:

- A letter requesting a refund of paid import tax;

- A permit for import issued by the Ministry of Trade (for goods subject to import permit requirements by the Ministry of Trade);

- Declaration forms for imported goods;

- Sales invoices;

- Tax notification; Payment receipt;

- Declaration forms for exported goods that have completed customs procedures;

- Agency distribution and sale contracts and supply agreements;

1.7.3. For imported goods serving international flights, the application dossier includes:

- A permit for import issued by the Ministry of Trade (for goods subject to import permit requirements by the Ministry of Trade);

- Receipts for delivering beverages to international flights confirmed by the airport customs authority.

- Import goods declaration form;

- Tax notification; Payment receipt;

- Sales invoice;

- Export goods declaration form that has completed customs procedures;

- Agency sales contract for selling goods and supply contracts or agreements for providing goods;

- Agency distribution and sale contracts and supply agreements;

1.7.3. For imported goods serving international flights, the dossier shall include:

- A permit for import issued by the Ministry of Trade (for goods subject to import permit requirements by the Ministry of Trade);

- A letter from the Ministry of Trade permitting importation (for goods subject to import permit issuance by the Ministry of Trade);

- Import goods declaration form;

- Tax notification; Payment receipt;

- International flight beverage delivery receipt confirmed by the airport customs office;

1.7.4. In the case where key import enterprises are permitted to sell goods (for example: petroleum products...) to ship supply enterprises for sale to foreign ships, after selling the goods to foreign ships, the importing enterprise may be considered for refund of import tax. The application for refund of import tax, as stipulated in point 1.7.2 above, shall be submitted to the Customs authority where the import procedures were carried out, in addition to the aforementioned documents, the enterprise must also have:

- Sales contracts and invoices for selling goods to ship supply enterprises;

- A declaration from the ship supply enterprise regarding the quantity and value of goods purchased from the key importing enterprise that have been actually supplied to foreign ships; Payment documentation certificates from foreign shipping companies. The enterprise's General Director shall be responsible under the law for these declarations.

1.7.5. In the case of temporarily imported goods for re-export or temporarily exported goods for re-import, if such goods have been actually re-exported or re-imported within the tax payment period specified in Section III, Part C of this Circular, then there is no need to pay import tax or export tax corresponding to the actual quantity of goods re-exported or re-imported. The application for non-payment of tax shall be made according to the application for refund of tax (except for the tax payment certificate which is replaced by the tax notification from the Customs authority).

1.8. Goods that have been exported but due to certain reasons must be re-imported into Vietnam shall be considered for refund of the paid export tax and no need to pay import tax.

1.8.1. Conditions for being considered for refund of the paid export tax and no need to pay import tax:

- The goods must be re-imported into Vietnam within a maximum period of 1 year (365 days) from the date of actual export;

- The goods have not undergone production, processing, repair, or use abroad;

- The re-imported goods must go through customs procedures at the place where the export procedures were originally carried out.

1.8.2. Documents for considering the refund of the paid export tax and no need to pay import tax include:

- A letter requesting consideration for refund of export tax and no need to pay import tax, specifying the reason for re-importing into Vietnam and assuring that the goods have not undergone production, processing, repair, or use abroad;

- Notification from the foreign customer or agreement with the foreign customer regarding the return of goods, clearly stating the reason, quantity, type... of returned goods;

- Export declaration and documentation set of the exported goods;

- Tax payment certificate for export tax;

- Re-import declaration, clearly indicating the quantity of goods previously exported under which export file and the specific inspection results of the Customs authority confirming that the re-imported goods are the goods previously exported by the enterprise. If the previously exported goods were subject to the exemption from physical inspection based on the conclusion of the competent state agency or the inspection organization as provided for in the Law on Customs, the Customs authority will compare the inspection results of the re-imported goods with the export file to confirm whether the re-imported goods are indeed the previously exported goods;

- Payment documentation for exported and imported goods;

- Entrusted export and import contracts (if it is an entrusted export and import arrangement).

1.8.3. In the case where exported goods must be re-imported into Vietnam within the export tax payment period specified in Section III, Part C of this Circular, there is no need to pay export tax corresponding to the actual quantity of goods re-imported. The application for non-payment of export tax and import tax shall be made according to the application for refund of tax (except for the tax payment certificate which is replaced by the tax notification from the Customs authority).

1.8.4. In the case where exported goods are products of Vietnamese enterprises processing for foreign parties, which are exempt from import tax on raw materials and components that must be re-imported for repair and recycling before re-exporting to foreign parties, the Customs authority managing and settling the initial processing contract must continue to monitor and manage until all recycled goods are exported and the import declaration for recycled goods is settled. If the recycled goods are not exported, they will be handled as follows:

- If sold domestically, they must be declared and taxed as processed goods for export and import;

- If permitted to be destroyed in Vietnam and have been destroyed under the supervision of the Customs authority, they will be exempt from tax like scrap and waste from processed goods destruction.

1.8.5. In the case where exported goods are produced from imported raw materials and components; temporary import-reexported goods (which are eligible for tax refund upon export) must be re-imported into Vietnam, the enterprise must reclaim the initially refunded import tax or will not be considered for refund of tax (if not yet refunded) corresponding to the quantity of goods to be re-imported. When actually exporting the goods that have been re-imported into Vietnam, the enterprise must declare and pay export tax (if applicable) and be considered for refund of import tax according to points 1.6 and 1.7, Section I, Part E of this Circular.

1.9. Goods that have been imported but due to certain reasons must be re-exported back to the foreign owner or re-exported to a third country as directed by the foreign owner can be considered for refund of the paid import tax corresponding to the quantity re-exported and no need to pay export tax:

1.9.1. Conditions for being considered for refund of the paid import tax and no need to pay export tax:

- The goods must be re-exported abroad within a maximum period of 1 year (365 days) from the date of actual import of the goods;

- The goods have not undergone production, processing, repair, or use in Vietnam;

- The re-exported goods must go through customs procedures at the place where the import procedures were originally carried out.

1.9.2. Documents for considering the refund of the paid import tax and no need to pay export tax include:

- A letter requesting consideration for refund of import tax and no need to pay export tax, specifying the reason for returning the goods to the foreign owner (clearly stating the quantity, type, value... of the re-exported goods);

- The declaration for imported goods inspected by the Customs authority shall clearly state the quantity, quality, and type of imported goods;

- Tax notification; Payment receipt;

- The agreement document for returning goods to the foreign side shall clearly state the reason, quantity, quality, type, and origin of the consignment;

- The declaration for exported goods shall clearly state the inspection results and confirmation of actual export by the Customs authority, including the quantity, quality, and type of exported goods, and which import goods file and accompanying documents of the export consignment the exported goods correspond to. In cases where imported goods were previously subject to the form of exemption from physical inspection due to reliance on conclusions from competent state agencies or appraisal organizations as stipulated by the Law on Customs, the Customs authority shall compare the inspection results of the actually exported goods with the import consignment file to confirm whether the re-exported goods are indeed the previously imported goods;

- Invoice and warehouse release note;

- Import contract and agency import/export contract (if applicable);

- Payment document for the returned export consignment (except in cases where payment has not been made);

In cases where imported goods do not comply with the contract, there must be a notification of the inspection result issued by the organization or entity authorized to inspect import and export goods. For the quantity of goods sent by the foreign side to replace the quantity of returned goods, the enterprise must declare and pay import tax according to regulations.

1.9.3. In cases where goods that need to be re-exported are still within the period for paying import tax as specified in Section III, Part C of this Circular, they do not have to pay import tax corresponding to the quantity of re-exported goods. The file for non-payment of import tax shall be submitted according to the file for refund of tax (except that the payment receipt shall be replaced by the tax notice from the Customs authority).

1.10. In cases where an enterprise exports goods but due to certain reasons must re-import them back to Vietnam (as per point 1.8) or imports goods but due to certain reasons must re-export them back or send them to a third country (as per point 1.9), and handles customs procedures at different locations (not the same customs gate), but all under the jurisdiction of a local Customs Bureau, then the refund of export tax (if applicable) will be considered, and no import tax needs to be paid for goods that must be re-imported, or the refund of import tax already paid will be considered, and no export tax needs to be paid for goods that must be re-exported.

1.11. For machinery, equipment, tools, and transportation means of organizations and individuals permitted to temporarily import-reexport (including borrowing-reexport) to implement investment projects, construction, installation of facilities, production services, and other purposes, when importing, they must declare and pay import tax according to regulations, and when re-exporting out of Vietnam, the import tax will be refunded. The amount of refunded import tax is determined based on the remaining value of machinery, equipment, tools, and transportation means when re-exported, calculated according to the time of use and storage in Vietnam. If the actual value has been exhausted, no refund will be given. Specifically as follows:

1.11.1. In cases where newly imported goods (unused):

1.11.2. In cases where used goods are imported:

1.11.3. The file for refund of import tax includes:

- A letter requesting the refund of import tax;

- Import contract (or agreement) for machinery, equipment, tools, and transportation means, or borrowing contract;

- Export and import declarations with payment receipts and confirmation by the Customs authority regarding the quantity and type of actually imported and re-exported goods, and accompanying documents of the export and import consignments;

- Tax payment documents; Tax notice;

- Agency export and import contracts (if the agency export and import method is applied);

In cases where organizations and individuals importing machinery, equipment, tools, and transportation means exceed the temporary import period and must re-export but have not yet done so, and are allowed by the Ministry of Trade (or competent state agencies) to transfer to another entity in Vietnam for continued management and use, such transfers shall not be considered as exports and no refund of import tax will be given. When actually re-exporting out of Vietnam, the initial importer will be entitled to a refund of import tax according to the provisions herein. When requesting a refund of tax, in addition to the required files mentioned above, the organization or individual requesting the refund must also supplement the following files:

- Letter from the Ministry of Trade (or competent state agencies) allowing the transfer and acceptance of machinery, equipment, tools, and transportation means that were temporarily imported (in cases where it is necessary according to state regulations);

- Purchase contract or handover record between both parties;

- Invoice and warehouse release note or sales invoice of the organization or individual transferring the goods to the buyer or recipient;

- Photocopy of the temporary import goods file at the location with an original copy certification by the enterprise.

1.12. In cases where goods are sent from organizations and individuals abroad to those in Vietnam through postal services and express delivery services, and vice versa; if the postal enterprise has paid the tax, it will be refunded according to the provisions of Joint Circular No. 01/2004/TTLT-BBCVT-BTC dated May 25, 2004, issued by the Ministry of Posts and Telecommunications and the Ministry of Finance, guiding responsibilities and coordination relationships in customs inspection and supervision work for mail, parcels, and express deliveries sent through postal and express delivery services.

The file for tax refund includes:

- A letter requesting the tax refund;

- Documents and certificates related to imported and exported goods;

- Export declaration and import declaration with payment confirmation and certification by the Customs authority regarding the quantity, type, and value of actually imported or exported goods;

- Tax payment certificates; Tax notification.

1.13. Organizations and individuals having exported or imported goods that violate customs regulations (hereinafter referred to as contraband goods) which have not completed customs procedures, have paid export tax or import tax and other taxes (if applicable), and have been subject to a Decision by the competent state agency to confiscate such goods shall be refunded the amount of export tax or import tax and other taxes (if applicable) already paid. The refund procedure documentation includes:

- A letter requesting the refund of export tax, import tax, and other taxes already paid;

- Export declaration or import declaration with payment confirmation from the Customs authority;

- Certificates of export tax or import tax and other taxes (if applicable) paid;

- Sales invoice according to the purchase and sale contract for goods;

- Violation handling record;

- Decision on confiscating contraband goods issued by the competent state agency.

1.14. Goods under customs supervision that have declared export or import, received tax notifications but were found to be in violation during customs clearance inspection and subsequently destroyed shall not be required to pay export or import taxes (if applicable). Penalties for violations of export or import regulations, requiring destruction, shall be carried out in accordance with current laws. The customs office responsible for declaring export or import must retain the destruction records and coordinate with relevant agencies to supervise the destruction process in accordance with current laws.

1.15. Payment documents through banks in the refund tax application (or non-payment) file shall be implemented in accordance with Circular No. 120/2003/TT-BTC dated December 12, 2003, of the Ministry of Finance and subsequent amendments (if any). For re-exported fuel oil, the currency for payment must be USD (US dollars).

2. The procedure for refunding tax is carried out as follows:

- For cases 1.1, 1.2, 1.3, 1.4, 1.5, and 1.13, Point 1, Section I, Part E of this Circular, the export and import goods inspection department confirms, the tax calculation department of the Customs authority reviews and processes the refund. The local Customs Bureau examines and issues a decision to refund the tax. The refunded import tax will be deducted from the tax payable in the next period by the entity entitled to the refund. If the entity entitled to the refund does not engage in export or import activities in the next period or does not generate tax payable in the next period and requests a direct refund, the local Customs Bureau shall request the Ministry of Finance (State Budget Department) to directly refund the tax amount to the entity entitled to the refund based on the Customs Bureau's refund decision.

- For cases 1.6 (1.6.2.1, 1.6.2.3), 1.7, and 1.11, Point 1, Section I, Part E of this Circular, when collecting tax, the Customs authority deposits it into a separate account at the Treasury of the local Customs Bureau. Upon receiving a letter requesting a tax refund from the entity entitled to the refund, the local Customs Bureau bases its review and examination on the prescribed documentation to issue a decision to refund the tax (or not collect the tax) and implements the refund from the aforementioned deposit account at the Treasury. For cases 1.6.2.2, 1.6.2.4, 1.6.2.5, 1.6.2.6, the local Customs Bureau bases its review and examination on the prescribed documentation to issue a decision to refund the tax (or not collect the tax) and processes the refund of import tax in accordance with the current regulations of the Ministry of Finance.

- For cases 1.8 and 1.9, Point 1, Section I, Part E of this Circular, the local Customs Bureau bases its review and examination on the prescribed documentation to issue a decision to refund the tax (or not collect the tax) for the entities.

The local Customs Bureau monitors the deduction of the tax refund amount from the tax payable in the next period by the entity entitled to the refund. If the tax refund amount exceeds the tax payable in the next period or if the entity entitled to the refund does not engage in export or import activities in the next period, the local Customs Bureau shall request the Ministry of Finance (State Budget Department) to directly refund the tax to the entity entitled to the refund based on the refund decision.

- The refund tax procedure for case "1.12" shall be implemented in accordance with the guidance provided in Circulars No. 68/2001/TT-BTC dated August 24, 2001, and No. 91/2002/TT-BTC dated October 11, 2002, of the Ministry of Finance, guiding the refund of amounts already paid into the State budget.

When processing tax refunds according to refund decisions, the local Customs Bureau must confirm the tax refund amount on each export or import declaration and clearly note: "Tax refunded... VND, pursuant to Decision No... dated... month... year... of... ".

If the tax refund amount is deducted from the tax payable in the next period by the entity entitled to the refund, the export or import declaration must clearly note "The tax deduction amount... VND, pursuant to Refund Decision No... dated... month... year... of..."; At the same time, the tax deduction amount and the number, date, month, and year of the export or import declaration being deducted should be recorded on the original refund decision for the Customs authority to monitor.

3. Time limit for submitting documents and time limit for considering tax refunds:

3.1. Time limit for submitting documents:

Within sixty days from the actual date of export (for cases where goods are raw materials or components imported for production of exported goods and temporarily imported-reexported goods) and within sixty days from the actual date of import (for cases of temporarily exported-reimported goods), entities eligible for consideration of tax refunds on export or import taxes must complete and submit the required documentation to the competent authority for consideration and processing of the tax refund as stipulated.

In cases where the payment term specified in the export contract is longer than sixty days from the actual date of export of goods, the enterprise must provide a commitment to present the payment certificate within fifteen days from the end of the payment term stated in the contract.

3.2. Time limit for considering tax refunds:

Within thirty days from the date of receiving complete tax refund application files in accordance with the provisions, the competent authority shall be responsible for issuing a decision to refund taxes for the entities entitled to tax refunds. In cases where the required documents are not fully provided or do not comply with the regulations, within five working days from the date of receipt of the tax refund application file, the competent authority examining the tax refund must issue a written response to the entity requesting the refund, clearly stating the reasons.

II. COLLECTION OF EXPORT TAXES AND IMPORT TAXES:

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

1.1. In cases where exemptions, temporary exemptions, reductions, or refunds of taxes have been granted according to this Circular, if such goods are subsequently used for purposes other than those originally exempted, temporarily exempted, reduced, or refunded, then the full amount of tax that was exempted, temporarily exempted, reduced, or refunded must be collected back, except in cases where the transfer of such exemptions, temporary exemptions, reductions, or refunds has been permitted by authorized state agencies in accordance with current regulations.

1.2. In cases where taxpayers make errors in declaring exported or imported goods, the tax must be collected back within one year from the date of registration of the export/import declaration form until the date when the error is discovered. Errors in declarations include computational errors, correct naming of goods but incorrect application of tariff codes due to objective factors (such as changes in tax policies, unclear policies, complex classification of import/export goods, etc.).

1.3. In cases of fraud or tax evasion, the tax and penalties must be collected back within five years from the date of discovery of the fraud or tax evasion during inspection. Fraud and tax evasion include all cases requiring collection of tax (excluding the two cases specified in 1.1 and 1.2 above).

2. The basis for calculating the collection of export taxes and import taxes is the taxable value, tax rate, and exchange rate applied according to the regulations at the time the state agency authorized to change the purpose of previously exempted, temporarily exempted, reduced, or refunded taxes now requires payment of tax for case 1.1, and at the time of registration of the export/import declaration form for cases 1.2 and 1.3.

3. The deadline for declaring and paying back taxes is two working days from the date the state agency authorized to change the purpose of previously exempted, temporarily exempted, reduced, or refunded taxes now requires payment of tax for case 1.1, and from the date the error is discovered for case 1.2, or from the date of discovery of fraud or tax evasion for case 1.3.

4. The deadline for paying the collected tax is within ten days from the date the state agency issues the decision to collect back taxes. If the taxpayer fails to pay within the prescribed period, they will be subject to administrative penalties for tax violations according to current regulations.

5. The inspection agency discovering errors, fraud, or tax evasion (customs agency, tax agency) has the authority to issue a decision to collect back taxes for each specific case and immediately notify the taxpayer.

G. COMPLAINTS AND VIOLATION HANDLING:

I. COMPLAINTS AND COMPLAINT RESOLUTION:

1. Organizations and individuals have the right to complain about decisions of state agencies related to export taxes and import taxes according to the law. The complaint document must clearly state the grounds and reasons for the complaint. During the complaint resolution process, organizations and individuals must still pay the full amount of tax and penalties according to the notification or decision of the state agency within the prescribed deadlines.

2. The procedure for resolving complaints about export taxes and import taxes shall be carried out in accordance with the Law on Complaints and Petitions dated December 2, 1998, and the Law Amending and Supplementing Certain Provisions of the Law on Complaints and Petitions dated June 15, 2004.

3. Complaint resolution bodies at various levels have the right to refuse and inform the complainant of complaints without grounds, unclear reasons for complaints, or complaints exceeding jurisdiction.

4. In cases where complaints are not resolved, the complaint resolution body must clearly state the reasons and notify the complainant in writing within the time limit prescribed by law.

5. The time limit, procedures for complaints and complaint resolution, and the authority to resolve complaints shall be implemented in accordance with the laws on complaints and other relevant laws.

II. VIOLATION HANDLING:

Organizations and individuals violating export taxes and import taxes shall be handled in accordance with the Law on Export Taxes and Import Taxes and amendments and supplements to certain provisions of the Law on Export Taxes and Import Taxes; Decree No. 100/2004/ND-CP dated February 25, 2004 of the Government on administrative penalties in the field of taxation and guiding documents.

H. IMPLEMENTATION:

This Circular takes effect fifteen days after its publication in the Official Gazette. Decisions No. 164/2000/QĐ-BTC dated October 10, 2000, Decision No. 198/2000/QĐ-BTC dated December 11, 2000, Decision No. 136/2001/QĐ-BTC dated December 18, 2001, Decision No. 164/2002/QĐ-BTC dated December 27, 2002, Decision No. 72/2003/QĐ-BTC dated May 20, 2003, Decision No. 80/2003/QĐ-BTC dated June 9, 2003 of the Minister of Finance, Circular No. 172/1998/TT-BTC dated December 22, 1998, Circular No. 151/1999/TT-BTC dated December 30, 1999, Circular No. 28 TC/TCT dated July 17, 1992, Circular No. 08/2002/TT-BTC dated January 23, 2002, and other guiding documents of the Ministry of Finance and General Department of Customs on export taxes and import taxes issued prior to this Circular are hereby abolished.

For export declaration forms, import declaration forms, re-exportation (for temporary import-reexport), and re-importation (for temporary export-reimport), if registered with the customs agency before the effective date of this Circular, they shall continue to be implemented according to previous regulations.

During the implementation of this Circular, if there are difficulties or obstacles, organizations and individuals are requested to report them to the Ministry of Finance for consideration and resolution.