Guiding the tax exemption and refund for some kinds of import and export duties


From 1st September 2016 policies on exemption, reduction, refund, non-collection of tax are implemented in accordance with the Law on Import and Export Duties No. 107/2016 / QH13 and Decree 134/2016 / ND-CP. The regulations on exemption, reduction, refund and non-collection of tax in Circular 38/2015 / TT-BTC will not be effective if they are not in compliance with the above documents.

Updated on : 29-05-2018

Guiding the tax exemption and refund for some kinds of import and export duties


This is the guidance of the General Department of Customs to the provincial, municipal Customs Departments in implementing the provisions of the Lă on Import and Export Duties No. 107/2016 / QH16, Decree No. 134/2016 / ND- CP and documents related to tax policies applicable to import and export goods.

It was known that in 2017, the General Department of Customs had inspected the exemption, reduction, refund, non-collection of tax at some provincial and municipal Customs departments. On the basis of the reports by the inspection teams, in order to overcome shortcomings and improve the effectiveness of tax policy implementation and tax administration, the General Department of Customs requested the provincial and municipal Customs Departments to carry out the following contents:

About tax exemption for import and export goods

Examining and reviewing duty-free import declarations at Customs branches to analyse and identify suspicious signs and risks in cases subject to the notification of the Duty- Free List to the Customs before importing the goods. Reviewing the cases of incorrect declaration of duty-free codes to guide the enterprises to make correct declarations according to regulations.

Looking back on duty exemption dossiers for goods used to produce fixed assets and goods on the List of domestically manufactured goods prescribed in the Law on Import and Export Duties No. 107/2016 / QH16 and Decree No. 134/2016 / ND-CP. Based on the import dossier, technical documents and relevant documents, the physical inspection of the use of duty-free goods at taxpayers' offices shall be conducted on the principle of risk management described in Point c, Clause 6, Article 30 of the Government's Decree No. 134/2016 / ND-CP dated 1st September 2016.

With regard to the import duty exemption for machinery and equipment chain as provided for in Clause 3, Article 31 of Decree No. 134/2016 / ND-CP, the provincial / municipal Customs Departments shall assign the Customs branches to guide the enterprises to make the Duty-Free List, paper tracking slip of backward deduction. In the case where the Customs has accepted the registration of Duty-Free List on the VNACCS, enterprises will be guided to declare the number, the registration date of the List into the box “Notes” not declare into the box “Import Duty-Free List” on the Customs Declaration . The Customs has to check and review the Customs dossiers to promptly request enterprises for an additional declaration or handle them according to regulations.

Customs officers in charge of checking the dossiers must request enterprises to declare in detail each import goods in the machinery and equipment chain which is imported many times but cannot be deducted in volume at the import time for use as a basis for comparison, examination and settlement after finishing the import of the chain.

In the case where goods fail to meet conditions on duty-free import but have registered on the Duty-Free List, the Customs shall notify the enterprise to declare the amendments to the List and collect fully the exempted duty amount for wrong subjects.

In the case where the Duty-Free List has been registered but not eligible for investment incentives, duty-free import, the Customs shall stop using the List on the system (for paper notification, the Customs shall send paper notification to the enterprises and revoke the List and the tracking slip of backward deduction), shall fully collect tax and late tax amounts and handle them according to regulations on goods which have been exempted from duties for wrong subjects.

When examining customs dossiers, Customs officers shall guide taxpayers to make supplements and amendments in compliance with import duty-free codes and amend the tax codes corresponding to the actual imported goods.

Inspecting the tax declaration and payment on export goods manufactured from imported raw materials, supplies and components, and export processed goods manufactured from domestic raw materials.

In the case where an enterprise does not declare in detail actual import goods and has suspicious signs in using goods for wrong subject and purpose of tax exemption, and other cases required to be inspected at taxpayer’s office, the provincial / municipal Customs Departments shall instruct the post-customs clearance audit right in 2018 to ensure the tax-free handling according to regulations.

About refund and non-collection of tax

To comply with the provisions on classification of tax refund dossiers according to the provisions of Law on tax administration, the tax refund process promulgated together with Decision No. 1780 / QD-TCHQ dated 17th June 2016 of the General Department of Customs and the guiding and revised documents.

Collecting and use of existing databases to determine the declarations which need to be inspected after tax refund according to the principle of risk management under the provisions of Clause 18, Article 1 of Law No. 21 / 2012 / QH13 Law amending and supplementing a number of Articles of the Law on Tax Administration to develop an inspection plan after tax refund at taxpayer’s office right in the first 6 months of 2018.

In the case of raising tax refund dossiers subject to tax inspection first or tax refund later (for example, goods imported under permits, the imported goods must satisfy the State management regulations on quarantine, food hygiene and safety, quality inspection of goods subject to inspection first, tax refund later according to Point i, Clause 2, Article 41 of Decree No. 83/2013 / ND-CP), but Customs has classified that these goods are subject to tax refund first and inspection later, the inspection shall be conducted at the taxpayer’s office for this case.

Reviewing cases subject to non-collection of import duty on export goods which are re-imported to Vietnam; non-collection of export duty on import goods which are re-exported to abroad or to non-tariff area in accordance with the provisions of Decree No. 134/2016 / ND-CP.

About environmental protection tax

Reviewing all items subject to environmental protection tax, especially petroleum products originated from fossil oil as described in Clause 1, Article 3 of the Law on Environmental Protection No. 57/2010 / QH12; Clause 1, Article 2 of Decree No. 67/2011 / ND-CP dated 8th August 2011; Clause 1, Article 1 of Circular No. 152/2011 / TT-BTC dated 11th November 2011; Item b.2 Point b, Clause 4 of Article 15 of Circular No. 156/2013 / TT-BTC of 06th November 2013 and relevant guiding documents of the Ministry of Finance.

About value added tax

The General Department of Customs requests the customs departments to examine and review the application of the VAT policy on imported goods, especially those items declared on the import declarations which are not subject to VAT, or 5% VAT rate, such as agricultural machinery and equipment; motorized marine engines to apply the VAT policy in accordance with the Law No. 71/2014 / QH13 amending and supplementing a number of articles of the tax law; Government’s Decree No. 12/2015 / ND-CP dated 12th February 2015; Circular No. 26/2015 / TT-BTC dated 27th February 2015 of the Ministry of Finance and the guiding documents of the Ministry of Finance on machinery and equipment used for agricultural; Official Letter No. 12848 / BTC-CST dated 15th September 2015; Official Letter No. 1677 / BTC-CST dated 29th January 2016, Official Letter No. 3233 / BTC-TCT dated 13th March 2017, Official Letter No. 16659 / BTC-CST dated 22nd November, 2016, Official Letter No. 5678 / BTC-CST dated 27th April 2016, Official Letter No. 15802 / BTC-CST dated 30 October 2015 and relevant documents.

In the case of suspecting and determination of the VAT policy applicable to imported goods but with lack of grounds to conclude the violations of enterprises, the Customs shall conduct post clearance audit.

In the case where taxpayers declare items which are not subject to VAT or 5% VAT rate in contravention of regulations, Customs declarants shall be requested to make additional declarations, fully pay tax or pay late tax amount and handle them according to regulations. . If the customs declarants fails to make additional declarations at the request of the customs office, the Customs shall impose tax, collect tax and late payment and fine, and fine according to regulations.

The results of tax settlement and information on Customs declarants and taxpayers must be transferred to the risk management section for analysis, evaluation and handling according to the regulation on risk management.

Source:  Customs News

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