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EXPORT – IMPORT
TAX
(CUSTOMS DUTY)
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EIT - legislation framework

➢ Law on Ex – Im Duties 107/2016/QH13 April 06, 2016

➢ Decision 36/2016/QĐ-TTg September 01, 2016
➢ Decree 134/2016/NĐ-CP September 01, 2016
➢ Document 12166/BTC-TCHQ August 31, 2016
➢ Document 12167/BTC-TCHQ August 31, 2016

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MAIN CONTENT

I. Overview : conception, characteristic, roles

of export and import duties.
II. Scope of regulation: Objects not liable to
import duty and export duty Goods
III. Caculating method
IV. Exemption, Tax refund

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Part 1.

GENERAL GUIDANCE

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I. General

1. Concept
Import and export tax is a tax on
goods permitted to import and export
in a country.

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I. General

2. Characteristics
✓An indirect tax

✓Depending on trade policy

✓Only one time

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I. General

3. Roles
❖ Setting up tariff barriers to protect domestic
goods.
❖ Controlling imports.
❖ To add tax revenue for the state budget.

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Part 2.

Scope of Regulation

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II. Scope

1. Taxed goods
➢Goods exported and imported through
Vietnam’s border and border checkpoints
➢ Goods exported from the domestic market
into free trade zones; goods imported from
free trade zones into the domestic market
➢Other traded or exchanged goods that are
considered imported or exported

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Model

Vietnam Foreign
non-tariff
zone A

non-tariff
zone B

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II. Scopes
2. The following goods do not incur export and import
duties ( non-dutiable objects)
➢Goods in transit;
➢Goods that are humanitarian aid or grant aid;
➢Goods exported from a free trade zone to
abroad; goods imported from abroad to a free
trade zone and used within such free trade
zone; goods transported from one free trade
zone to another;
➢Amounts of petroleum used as severance tax
paid to the State upon its exportation.
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II. Scopes
3. Taxpayers
➢ Owners of exports and imports.
➢ Entrusted exporters and importers.
➢ People entering and leaving Vietnam
carrying exports or imports, sending or
receiving goods through Vietnam’s border
and border checkpoints.
➢ Taxpayers’ guarantors and other entities
authorized to pay tax on behalf of taxpayers

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PART III.

Basis for tax calculation

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III. Tax calculating methods

tax rate
Calculating methods
unit tax

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III. Tax calculating methods
1. Tax calculating method for Exports

The Duty
taxable
amount of
export
= value
X rate
(%)
duty

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III. Tax calculating methods
a. The number of goods: the actual amount of
each commodity exports.
b. Taxable value: FOB
c. Export duty rate: to be specified in the
export duty schedule.

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❖ Example:

Goods The amount Price I&F

T-shirt 2.000 units FOB = 175.000

Jewelry box 500 boxes CIF = 268.800 10%

CIF
Gift 250 boxes CIF = 98.600 10%FO
B

To determine the amount of payable tax, tax rate is 1%

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III. Tax calculating methods
2. Tax calculating method for imports

The Duty
taxable
amount of
import
= value
X rate
(%)
duty (CIF)

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III. Tax calculating methods
a. The number of goods: the actual amount of each
commodity imports.
b. Taxable value: CIF
c. Import duty rates include preferential rates,
special preferential rates, and ordinary rates.
Note: The ordinary rate is 150% of the
preferential rate applied to the corresponding
article. In case preferential rate is 0%, the
Prime Minister shall decide the application of
ordinary rate

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III. Tax calculating methods

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III. Calculating method
Method 1: Transaction value
Method 2: Transaction value of identical
goods
Method 3: Transaction value of similar goods
Method 4: Deductive value
Method 5: Computed value
Method 6: Fall – back method

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III. Tax calculating methods
c. Import duty rates include preferential rates,
special preferential rates, and ordinary rates.
Preferential tax rates: are applicable to imported
goods originating in countries or groups of
countries or territories which implement the
most favored nation treatment in trade
relations with Vietnam

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Example
Determine the import tax calculation value in the
following cases:
1. Import shipment A from India at CIF 500 million,
in which I+F= 5%CIF. Tax rate: 10%
2. Import shipment B from India with price FOB
Bombay 720 million, shipping cost 20 million,
insurance premium 45 million. Tax rate: 15%
3. Import shipment C from Japan FOB 200 million,
F=10 million. Tax rate: 10%
4. Import 1000 wine bottles from France, FOB=
270000 VND/bottle/750ml, I and F = 10% CIF. Tax
rate: 20%
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III. Tax calculating methods
Special preferential tax rates: are applicable to
imported goods originating in countries, groups of
countries or territories which implement specially
preferential treatment concerning import tax rates
with VN under the regime of free trade areas, tariff
alliance, or aiming to facilitate border trade flows
and other cases of special preferential treatment.
The Quantity of Special rate
amount of
import or
= imports
and
X per unit of
goods
export duty exports

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Example
Pep Co. declared to import 100 second hand
cars of which the engine capacity is 1,200 cc. The
CIF price for each car stated in the custom
declaration form as well as in the contract and
invoice is $3,000.
Determine the import duty payable on the above
imports, give that:
- Second hand car is subject to specific import tax
- The specific rate for this kind of car is $ 8,000
per unit
- The exchange rate for tax purpose is 23.000
VND/USD
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Part IV.

TAX EXEMPTION AND

REFUND

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Tax Exemption
➢ Exported or imported goods of foreign entities
granted diplomatic immunity and privileges in
Vietnam within the allowance under an international
treaty to which Socialist Republic of Vietnam is a
signatory; luggage within the tax-free allowance of
inbound and outbound passengers; imports to be
sold at duty-free shops
❖Personal belongings, gifts from foreign entities to
Vietnamese entities and vice versa within the tax-free
allowance.
❖Goods exempt from export and import duties under
international treaties to which Socialist Republic of
Vietnam is a signatory.
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Tax Exemption
➢ Goods whose value or tax payable is below the
minimum level.
➢ Materials, supplies, components imported for
manufacture of export products.
➢ Goods temporarily imported for re-export or goods
temporarily exported for re-import within a certain
period of time: 90 days

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Tax exemption
- Persons entering with a passport or a replacement passport
(except for a passport used for entry and exit), issued by a
competent Vietnamese or foreign state agency, with luggage
to carry with them. Baggage sent before or after the trip is
exempt from import tax for each entry according to the
following norms:
+ Wine from 22 degrees or more 1.5 L
+ Wine under 22 degrees 2.0 L
+ Alcoholic drinks, beer 3.0 L
+ Cigarettes 200 cigarettes
+ Cigars 20 cigars
+ Cigarettes 250 grams
+ Personal belongings suitable for the trip
+ Other items: not exceeding 10 million VND
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Tax refund
➢ Any taxpayer who has paid export duty or import duty
but has no exports or imports, or the quantity of
exports or imports is smaller than the quantity on
which duty is paid;
➢ Any taxpayer who has paid export duty but the
exports has to be re-imported shall receive a refund of
export duty and does not have to pay import duty;
➢ Any taxpayer who has paid tax on goods imported to
serve manufacture or business operation and they
have been used for manufacture of exports and the
products are already exported;

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Tax refund
➢ Any taxpayer who has paid export duty or import duty
but has no exports or imports, or the quantity of
exports or imports is smaller than the quantity on
which duty is paid;
➢ Any taxpayer who has paid export duty but the
exports has to be re-imported shall receive a refund of
export duty and does not have to pay import duty;
➢ Any taxpayer who has paid tax on goods imported to
serve manufacture or business operation and they
have been used for manufacture of exports and the
products are already exported;

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Tax refund
❖Any taxpayer who has paid tax on machinery,
equipment, tools, vehicles of organizations and
individuals that are permitted to be temporarily
imported for re-export, except for those rented to
execute investment projects, construction and
installation, manufacture, when they are re-exported
to abroad or exported to a free trade zone.
❖The amount of import duty refunded depends on the
remaining value of goods when they are re-exported
according to the period of time over which they are
used or stay in Vietnam. If the goods are no longer
usable, import duty shall not be refunded.

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Tax payment deadline
➢ Duties on exports and imports have to be paid before
customs clearance or release as prescribed by the
Law on Customs
➢ Where a credit institution provides guarantee for the
amount of tax payable, customs clearance or release
shall be granted. However, late payment interest shall
be paid for the period from the date of customs
clearance or release to the tax payment date in
accordance with the Law on Tax administration. The
guarantee period shall not exceed 30 days from the
day on which the customs declaration is registered.

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Tax reduction
➢ Imported or exported goods which are damaged or
lost in the course of customs supervision and certified
by a competent authority are considered for tax
reduction in proportion to their actual damage or loss.
Local Customs Department are responsible for
considering and making decisions on tax reduction
based on the surveyed quantity of actually lost and
damaged goods.

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