Decree 18/2021/ND-CP

DECREE Amending and supplementing a number of articles of the Government’s Decree No. 134/2016/ND-CP of September 1, 2016, detailing a number of articles of, and measures to implement, the Law on Import Duty and Export Duty Pursuant to the June 19, 2015 Law on Organization of the Government and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration; Pursuant to the April 6, 2016 Law on Import Duty and Export Duty; Pursuant to the June 23, 2014 Law on Customs; Pursuant to the June 17, 2020 Law on Investment; Pursuant to the June 13, 2019 Law on Tax Administration; Pursuant to the June 12, 2017 Law on Foreign Trade Management; At the proposal of the Minister of Finance; The Government promulgates the Decree amending and supplementing a number of articles of the Government’s Decree No. 134/2016/ND-CP of September 1, 2016, detailing a number of articles of, and measures to implement, the Law on Import Duty and Export Duty. Article 1. To amend and supplement a number of articles of the Government’s Decree No. 134/2016/ND-CP of September 1, 2016, detailing a number of articles of, and measures to implement, the Law on Import Duty and Export Duty 1. To amend and supplement Clause 1 of, and add Clause 3 to, Article 3 as follows: “Article 3. Application of duty rates to imported and exported goods 1. Duty rates for goods imported or exported via a border gate or across the border of Vietnam and goods imported or exported on spot must comply with Articles 5, 6 and 7 of the Law on Import Duty and Export Duty. The application of duty rates to goods imported or exported on spot must comply with Clause 3 of this Article. 3. Application of duty rates to goods imported or exported on spot a/ Goods exported on spot are subject to the export duty rates specified in the Government’s Decree No. 122/2016/ND-CP of September 1, 2016, on the Export Tariff, the Preferential Import Tariff and the list of commodity items and their specific duty rates, compound duty rates and out-of-quota import duty rates (below referred to as Decree No. 122/2016/ND-CP), the Government’s Decree No. 57/2020/ND-CP of May 25, 2020, amending and supplementing a number of articles of Decree No. 122/2016/ND-CP, and the Government’s Decree No. 125/2017/ND-CP of November 16, 2017, amending and supplementing a number of articles of Decree No. 122/2016/ND-CP (below referred to as Decree No. 57/2020/ND-CP) and documents revising or replacing these Decrees (if any). b/ Goods imported on spot (excluding goods imported on spot from non-tariff zones specified at Point c of this Clause) are eligible for preferential import duty rates specified in Decree No. 125/2017/ND-CP, Decree No. 57/2020/ND-CP and documents revising or replacing these Decrees (if any). c/ Goods that originate from countries, groups of countries or territories applying the most-favored nation treatment in trade relations with Vietnam and are imported on spot from non-tariff zones into the domestic market; and goods that are produced, processed, recycled or assembled in non-tariff zones but do not meet conditions for entitlement to special preferential import duty rates and are imported on spot from non-tariff zones into the domestic market are eligible for preferential import duty rates specified in Decree No. 125/2017/ND-CP, Decree No. 57/2020/ND-CP and documents revising or replacing these Decrees (if any). Goods that originate from countries, groups of countries or territories having reached agreements on special preferential import duty in trade relations with Vietnam, are imported on spot from non-tariff zones into the domestic market and meet other conditions for entitlement to special preferential import duty rates; and goods that are produced, processed, recycled or assembled in non-tariff zones, meet conditions for application of special preferential import duty rates, and are imported on spot from a non-tariff zone into the domestic market will be eligible for special preferential import duty rates specified in the Government’s Decrees on the Special Preferential Import Tariff for implementation of treaties to which the Socialist Republic of Vietnam is a contracting party. Goods that neither originate from countries, groups of countries or territories applying the most-favored nation treatment nor meet conditions for entitlement to special preferential import duty rates, and are imported on spot from non-tariff zones into the domestic market will be subject to ordinary import duty rates specified at Point c, Clause 3, Article 5 of Law No. 107/2016/QH13 on Import Duty and Export Duty and the Prime Minister’s Decisions on the application of ordinary duty rates to imported goods. d/ On-spot imported goods on the list of commodity items subject to tariff-rate quotas must comply with provisions on the list of commodity items subject to tariff-rate quotas and their import duty rates in Decree No. 125/2017/ND-CP, Decree No. 57/2020/ND-CP and documents revising or replacing these Decrees (if any).” 2. To amend and supplement Clauses 3, 6, 7 and 8 of Article 5 as follows: “Article 5. Duty exemption for goods of foreign organizations and individuals entitled to privileges and immunities 3. In addition to the commodity items specified in Appendices I, II and III to this Decree, the subjects specified at Points a and b, Clause 1 of this Article may import free of duty other essentials to serve their work. Categories and limits of duty-free goods must comply with the Ministry of Foreign Affairs’ certification. 6. A dossier of request for duty exemption must comprise: a/ A customs dossier as prescribed by the customs law, except duty-free goods purchased at duty-free shops; b/ Quota books for duty-free goods for the duty-free goods specified in Clause 8 of this Article: 1 copy each, unless books have been updated on the Vietnam National Single Window; c/ Documents proving the completion of the re-export, destruction or transfer, for the cases specified in Clause 5 of this Article: 1 copy each; d/ The Ministry of Foreign Affairs’ written certification, for the cases specified in Clauses 2 and 3 of this Article: 1 copy; dd/ The Prime Minister’s decision on duty exemption, for the case specified in Clause 4 of this Article: 1 copy. 7. Duty exemption procedures must comply with Article 31 of this Decree. a/ For the case specified in Clause 2 of this Article: A foreign organization shall send to the Ministry of Foreign Affairs a written request for certification of duty exemption for liquor, beer and cigarettes imported in excess of duty-free allowances, made according to Form No. 02a provided in Appendix VII to this Decree. Within 5 working days after receiving such request, the Ministry of Foreign Affairs shall issue a written certification of the list of liquor, beer and cigarettes imported in excess of duty-free allownces, made according to Form No. 02b provided in Appendix VII to this Decree, or a notice of refusal, clearly stating the reason for refusal. Customs offices shall base on the dossier specified in Clause 6 of this Article to effect duty exemption. b/ For the case specified in Clause 3 of this Article: A foreign organization or individual shall send to the Ministry of Foreign Affairs a written request for certification of categories and limits of goods imported free of duty to serve its/his/her work, made according to Form No. 02c provided in Appendix VII to this Decree. Within 5 working days after receiving such request, the Ministry of Foreign Affairs shall send a written certification of categories and limits of essentials imported free of duty to serve its/his/her work, made according to Form No. 02d provided in Appendix VII to this Decree, or a notice of refusal, clearly stating the reason for refusal. Customs offices shall base on the dossier specified in Clause 6 of this Article to effect duty exemption. c/ For the case specified in Clause 4 of this Article A foreign organization or individual shall send to the Ministry of Finance a written request for certification of categories and limits of goods imported free of duty under a treaty or an agreement between the Government of Vietnam and a foreign non-governmental organization, made according to Form No. 02e provided in Appendix VII to this Decree. Within 10 days after receiving such request, the Ministry of Finance shall reach agreement with the Ministry of Foreign Affairs on the categories and limits of goods imported free of duty under the treaty or agreement between the Government of Vietnam and the foreign non-governmental organization. Within 10 days after receiving the Ministry of Foreign Affairs’ document, the Ministry of Finance shall report to the Prime Minister for decision on the categories and limits of duty-free goods. The Prime Minister shall consider and issue a decision on import duty exemption, made according to Form No. 02g provided in Appendix VII to this Decree, to the concerned foreign organization or individual. Customs offices shall base on the dossier specified in Clause 6 of this Article to effect duty exemption. Customs offices which carry out customs procedures shall monitor the import and export of goods within duty-free allowances by electronic mode. In case a customs office cannot do so, duty payers shall submit 1 copy and produce the original quota book for duty-free goods to the customs office for monitoring and reconciliation. 8. Procedures for issuance of quota books for duty-free goods or addition of duty free allowances to quota books for duty-free goods a/ A dossier of request for issuance of a quota book for duty-free goods or addition of duty free allowances to the duty free allowance book of an agency or organization: A request for issuance of a quota book for duty-free goods or addition of duty-free allowances to the quota book for duty-free goods, made according to Form No. 01 or Form No. 01a provided in Appendix VII to this Decree; A notice of the establishment of a representative agency in Vietnam in case of requesting the issuance of a quota book for duty-free goods for the first time: 1 copy; Documents proving the completion of the re-export, destruction or transfer in case the subject specified at Point a or b, Clause 1 of this Article requests addition of automobiles or motorcycles to the quota book for duty-free goods: 1 copy; The relevant treaty or agreement between the Vietnamese Government and the concerned foreign non-governmental organization that contains provisions on categories and limits of duty-free allowances: 1 copy; The Prime Minister’s decision on duty exemption in case the relevant treaty or agreement between the Vietnamese Government and the concerned foreign non-government organization does not specify categories and limits of duty-free allowances (for the subjects specified at Points c and d, Clause 1 of this Article): 1 copy. b/ A dossier of request for issuance of a quota book for duty-free goods or addition of duty free allowances to the quota book for duty-free goods of an individual must comprise: The original request for issuance of a quota book for duty-free goods or addition of duty-free allowances to the quota book for duty-free goods, made according to Form No. 02 or Form No. 02i provided in Appendix VII to this Decree: 1 original; The identity card issued by the Ministry of Foreign Affairs, for the subjects specified at Points a and b, Clause 1 of this Article: 1 copy; Documents proving the completion of the re-export, destruction or transfer in case the subject specified at Point a or b, Clause 1 of this Article requests the addition of automobiles or motorcycles to the quota book for duty-free goods: 1 copy; The work permit or another paper of equivalent validity, issued by a competent agency, for staff members of international organizations and non-government organizations (for the subjects specified at Points c and d, Clause 1 of this Article): 1 copy; The relevant treaty or agreement between the Vietnamese Government and the concerned foreign non-governmental organization that contains provisions on categories and limits of duty-free allowances: 1 copy; The Prime Minister’s decision on duty exemption in case the relevant treaty or agreement between the Vietnamese Government and the concerned foreign non-government organization does not specify categories and limits of duty-free allowances (for the subjects specified at Points c and d, Clause 1 of this Article): 1 copy. c/ Competence to issue quota books for duty-free goods and add duty-free allowances to quota books for duty-free goods The Directorate of State Protocol - the Ministry of Foreign Affairs or an agency authorized by the Ministry of Foreign Affairs shall grant quota books for duty-free goods, made according to Form No. 02h1, Form No. 02h2 or Form No. 02h3 provided in Appendix VII to this Decree, to the organizations and individuals specified at Points a and b, Clause 1 of this Article within 5 working days after receiving a complete dossier. Customs Departments of provinces, inter-provincial regions, or centrally run cities (below referred to as provincial-level Customs Departments) where the agencies and organizations specified at Points c and d, Clause 1 of this Article are headquartered shall issue quota books for duty-free goods, made according to Form No. 02h4 or Form No. 02h5 provided in Appendix VII to this Decree, to the organizations and individuals specified at Points c and d, Clause 1 of this Article within 5 working days after receiving a complete dossier. The Ministry of Foreign Affairs shall continue to monitor and issue quota books for duty-free goods to the subjects entitled to privileges and immunities specified at Point c, Clause 1 of this Article that have been granted such books by the Ministry of Foreign Affairs before the effective date of this Decree. After issuing quota books for duty-free goods, the issuing agencies specified at this Point shall update information on such books to the General Department of Vietnam Customs via the Vietnam National Single Window.” 3. To amend and supplement Point b, Clause 2 of Article 8 as follows: “Article 8. Duty exemption for presents and gifts 2. Duty-free limits b/ The duty-free limits for presents and gifts given by foreign organizations or individuals to Vietnamese agencies and organizations which have their operating expenses covered by the state budget in accordance with the law on the state budget and are permitted by competent agencies to receive presents and gifts given for humanitarian or charity purposes are the whole value of such presents and gifts and do not exceed 4 times per year.” 4. To amend and supplement Point g of Clause 1, and Clauses 2, 4 and 5 of Article 10 as follows: “Article 10. Duty exemption for goods imported for export processing and for processed products for export 1. Goods imported for export processing and processed products for export under processing contracts which are entitled to import duty or export duty exemption under Clause 6, Article 16 of the Law on Import Duty and Export Duty include: g/ Processed products for export overseas or export to non-tariff zones or on spot to organizations or individuals in Vietnam under the assignment of the processing-ordering party. Processed products for export will exempted from export duty under this Point if such products are entirely processed from imported goods. When processed products which are made from domestic raw materials and supplies liable to export duty are exported, export duty on the value of the amount of domestic raw materials and supplies constituting the exported products shall be paid at the rate applicable to such raw materials and supplies. 2. Grounds for determining goods’ eligibility for duty exemption: a/ Duty payers have a processing contract as prescribed in the Government’s Decree No. 69/2018/ND-CP of May 15, 2018, detailing a number of articles of the Law on Foreign Trade Management. Duty payers shall declare on customs declarations the serial number of the processing contract or processing contract annexes. b/ Duty payers or organizations or individuals to which the duty payers subcontract the export processing own or have the right to use export processing facilities and machinery and equipment at such facilities in Vietnam’s territory and must notify customs offices of information on processing facilities, subtractors’ processing faciliites, processing contracts and subcontractor contracts, and processing contract and subcontractor contract annexes in accordance with the customs law. Duty payers that fail to notify customs offices of information on subcontractors and subcontractor contracts within the time limit specified by the customs law shall only be sanctioned for customs-related administrative violations according to regulations. c/ In case duty payers (having signed processing contracts) assign part or the whole of imported goods or semi-finished products processed from imported goods specified in Clause 1 of this Article to subcontract one or several stage(s) of export processing to other organizations or individuals meeting the conditions specified at Point b of this Clause and then receive semi-finished products for further processing or finished products for export, they shall be entitled to exemption from import duty on imported goods assigned to subcontractors. In case duty payers (having signed processing contracts) assign part or the whole of imported goods or semi-finished products processed from imported goods to subcontract the processing to other organizations or individuals in non-tariff zones or overseas, imported goods or semi-finished products assigned to subcontractors will be exempt from export duty. Duty payers shall pay import duty according to Point d, Clause 1, Article 11 of this Decree when importing back to Vietnam products processed by subcontractors overseas or according to Clause 2, Article 22 of this Decree when importing products processed by subcontractors in non-tariff zones to Vietnam’s inland. d/ Duty payers (having signed processing contracts) shall make finalization of the use of imported goods entitled to duty exemption specified by the customs law. dd/ The quantity of imported goods used to process products that have already been exported overseas or exported to non-tariff zones and are entitled to import duty exemption is the quantity of imported goods actually used in processing products that have already been exported. Imported goods used to process products that have already been exported on spot to organizations or individuals in the inland (outside non-tariff zones) and products processed for on-spot import must comply with Points g and h of this Clause. e/ Goods imported for export processing, scraps and discarded products generated during export processing which are returned to foreign processing-ordering parties will be exempted from import duty and export duty. Goods imported for export processing, processed products, and scraps and discarded products that are generated during processing and permitted to be destroyed and have actually been destroyed in accordance with the customs law will be exempted from import duty. In case goods are imported for export processing but products are not exported or goods are imported redundantly and not exported, duty payers shall register a new customs declaration, declare and pay duty to customs offices according to the duty rates and dutiable value of imported goods at the time of registration of the new customs declarations, except cases in which such goods used as presents or gifts under Article 8 of this Decree. g/ Imported goods that are used to process on-spot exported goods and entitled to duty exemption are goods actually used to process products that have already been exported on spot, provided that on-spot expor