Goods Subject and Entities Liable for Payment of Duty

Article 1
Goods permitted to be exported or imported across the borders of Vietnam, and goods passing between the domestic market and an export processing zone, shall be subject to export and import duty.

Article 2
The following goods shall not be subject to export or import duty provided that customs procedures are carried out:

• Goods in transit including those being transported on roads which cross the borders of Vietnam and goods transported in accordance with the provisions of the Government.

• Humanitarian goods which are the subject of an aid programme or project.

Article 3
Organizations and individuals shall pay export or import duty on goods which are subject to export or import duty (hereinafter called dutiable goods) when exporting and importing such goods.

Article 4
Goods which are exported or imported pursuant to an international treaty to which Vietnam is a signatory or in respect of which it is a participant shall be subject to duty under the international treaty where the treaty makes provisions for export or import duty which provisions differ from those provided in this Law.

Article 5
Pursuant to this Law, and pursuant to the regulations on export and import duties and taking into account the characteristics of each separate border area the Government shall stipulate the rates of the export and import duty to apply to goods passing across the border.

Basis on which Duty shall be Calculated 

Article 6
The basis for calculating the amount of export or import duty payable is as follows:

• The quantity of each item of goods listed in the declaration of the goods to be exported or imported

• Dutiable value

• Rates of duty applicable to each item of goods

Article 7
The basis for determining dutiable value shall be:

• For exports: the contract selling price at the border gate

• For imports: the contract purchasing price, including transport and insurance costs, at the border gate

Where contract prices are specified in another way, or are low in comparison with market prices at the border gates, the dutiable value shall be that stipulated by the Government.
 
The exchange rates between Vietnamese and foreign currency used to determine dutiable value shall be the purchase rates published by the State Bank of Vietnam at the time when the calculation of duty is made.

Tariff

Article 8
The Standing Committee of the National Assembly shall stipulate in a tariff the rates of duty applicable to each separate group of goods.

Based on the tariff issued by the Standing Committee of the National Assembly, the Government shall stipulate in a specific tariff the rates of duty applicable for each separate item of goods.

Article 9
There shall be a preferential and standard rate of duty for exports and imports:

• The standard rate of duty shall be stipulated in the tariff

• The preferential rate of duty is the rate applied in respect of imports from and exports to countries which have signed terms for preferential trading relations with Vietnam and in other cases stipulated by the Government

A preferential rate of duty shall not be more than fifty (50) per cent of the standard rate. The Government shall determine the specific preferential rate of duty in respect of each item of goods in relation to each country.

Exemption From, Reduction of and Refund of Duty

Article 10
The following goods shall be exempt from export or import duty: 

• Non-refundable aid

• Temporary imports and re-exports, temporary exports for exhibitions and re-imports

• Goods in transit

• Exports and imports of foreign organizations which and individuals who, pursuant to international treaties to which Vietnam is a signatory or in relation to which it is a participant, enjoy immunities stipulated by the Government

• Materials and raw materials imported for processing and re-export in accordance with a contract entered into with a foreign party

Article 11
The following goods shall be subject to a reduction of applicable duty:

• Imports for specialized use for security, national defence, scientific, educational, training or research purposes

• Exports and imports of an enterprise with foreign owned capital and of the foreign parties to a business co-operation in each special case where it is necessary to encourage investment

• Gifts of foreign organizations and individuals given to Vietnamese organizations and individuals and vice versa in accordance with a level as provided by the Government

Article 12
Where goods are genuinely damaged or lost in the process of transportation, loading or unloading as certified by the State export and import control body, duty may be reduced in proportion to the damage to the goods.  

Article 13
The exemptions from and reductions of duty provided for in articles 10,11 and 12 of this Law are exhaustive and full export and import duty shall be collected in all other cases.

 
The Government shall stipulate the procedures to obtain authorization for exemption from or reduction of duty and for the full collection of duty as provided fro in articles 10,11,12 and 13 of this Law.  

Article 14
Export and import duty paid shall be refunded in the following cases:

• Where imported goods in respect of which duty has already been paid have remained at the border entry, in a warehouse or on the ground, and are to be re-exported

• Where goods in respect of which export duty has been paid are no longer to be exported

• Where the quantity of goods actually exported or imported is smaller than that stated in the declaration form and in respect of which duty has been paid

• Where materials are imported for the manufacture of exports

• Temporary imports shall be exempted from export duty at the time of re-export and temporary exports shall be exempted from import duty at the time of re-import

Organization of Implementation

Article 15
The Government shall make uniform the management of the collection of export and import duty throughout the country.

The General Department of Customs shall be responsible for organizing the collection of export and import duty in respect of goods imported and exported through the border gates of Vietnam.
     

The people's committees of the border provinces shall, in accordance with the stipulations of the Government, co-ordinate with the tax and customs offices the organization of collection of duty in respect of goods exported and imported through border areas.  

Article 16
Organizations which, and individuals who, export or import goods shall make a declaration and pay duty in respect of each consignment.

The tax office shall examine the declaration, carry out the procedures for and collect the duty.

Article 17 

Export or import duty shall be calculated as at the date on which the declaration concerning the exports or imports is made.

Within eight hours after the lodging of a declaration concerning exports or imports, the tax office shall officially notify the person liable of the amount to be paid.

The time for payment of duty is as follows:

• Within fifteen (15) days after the person liable for the duty on trading exports receives the official notification from the tax office of the amount to be paid

• Where temporary exports, which are permitted to be re-imported by an authorized State body, are actually re-imported within the period of fifteen (15) days as stipulated in this point, there shall be exemption from export duty

• Within thirty (30) days after the person liable for the duty on trading imports receives the official notification from the tax office of the amount to be paid

• Where temporary imports, which are permitted to be re-exported by an authorized State body, are actually re-exported within the period of thirty (30) days as stipulated in this point, there shall be exemption from import duty

• Immediately upon non-trading or border trading goods being exported from or imported into Vietnam.

Article 18
Where a person liable for duty disagrees with the amount payable according to official notification, he shall make full payment of the duty and may at the same time lodge a claim for review with the central tax office. If the claim is rejected it may be lodged for review by the Minister of Finance whose decision shall be final.

Article 19 

Within thirty (30) days after receipt of a request for a refund of the duty paid from a person who has paid duty in respect of the exports or imports referred to in article 14 of this Law, the Ministry of Finance shall pay the refundable tax to that person.

If the payment deadline stipulated in clause 1 of this article is not met, the Ministry of Finance shall pay to the person who has paid duty both the refundable tax and interest thereon for the overdue period at the rate payable on bank deposits at the time the refund is made.

Dealing with Breaches

Article 20

Where the payment of duty stipulated in article 17 of this Law is overdue, the person liable for the duty shall pay a fine of one fifth (0.2) of one percent of the overdue amount in respect of each day of delay.

Where the person liable for payment of duty delays payment for more than nine days, the customs office shall suspend processing of the next consignment of that person and the Ministry of Commerce and Tourism shall suspend the issuing of licences for export or import of goods to that person until all outstanding duty is paid.

Any person liable for duty who is fraudulent in relation to payment of duty shall be fined an amount which is between two and five times the amount of duty which was the subject of the fraud.

 
The tax office shall have the power to apply the penalties referred to in clauses 1 and 3 of this article.

Article 21
Where a person liable for duty disagrees with a fine imposed by the tax office he shall pay the fine and may at the same time lodge a claim for review with the central tax office. If the claim is rejected it may be lodged for review with the Minister of Finance whose decisions shall be final.   

Article 22
Any tax officer or individual who takes advantage of his position and power to appropriate or embezzle duty paid on dutiable exports or imports, shall repay to the State the appropriated or embezzled amount, and depending on the seriousness of the breach be subject to administrative punishment or be prosecuted for criminal responsibility as provided by the law.

Any tax officer or individual who takes advantage of his position and ability to protect those who breach their export or import duty obligations, who deliberately breach this Law, or who are irresponsible in their implementation of it shall, depending on the seriousness of the breach be subject to administrative punishment, or be prosecuted for criminal responsibility in accordance with the provisions of the law.

Any tax officer who is irresponsible or intentionally deals with a case in an unlawful manner which results in damage being suffered by the taxpayer or person affected shall pay compensation to that person.

Final Provisions

Article 23
This Law replaces the Law on Export and Import Duties on Commercial Goods dated 29 December 1987 which is hereby repeated. Article 32 of the Law on Special Sales Tax dated 30 June 1990 is hereby repealed.

Article 24
This Law on Export and Import Duties shall be of full force and effect as of 1 March 19992.  

Article 25
The Council of Ministers shall make detailed provisions for the implementation of this Law.