Decree No. 18/2021/ND-CP amending the Decree No. 134/2016/ND-CP on import and export duties

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^[1]

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 exporters notify customs offices of information on the customs declarations of the on-spot imported products for which import procedures have been completed within 15 days after products exported on spot are cleared from customs procedures; such a notice shall be made according to Form No. 22 provided in Appendix VII to this Decree.

Past the above-said time limit, if on-spot exporters fail to notify customs offices of information on the customs declarations of the products imported on spot for which import procedures have been completed, on-sport exporters shall register a new customs declaration, declare and pay duty for imported goods that have already been used to process products exported on spot according to the duty rates applicable to and the dutiable value of imported goods at the time of registration of the new customs declaration.

After paying duty and notifying customs offices of information on the customs declarations of the products imported on spot for which import procedures have been completed, their overpaid duty amounts shall be handled the in accordance with the law on tax administration’s provisions on handling of overpaid tax amounts.

h/ Products imported on spot for which customs declarations are registered by the mode of import for processing will be entitled to exemption from import duty if on-spot importers satisfy the conditions specified at Points a and b of this Clause. For products imported on spot for which customs declaration are registered by other modes, on-spot importers shall declare and pay duty according to the duty rates applicable to and dutiable value of products imported on spot at the time of registration of the on-spot import customs declarations.

In case on-spot importers have paid import duty for goods used for production, business or used goods imported on spot for export processing and have actually exported products overseas or to non-tariff zones, their paid import duty shall be refunded in accordance with Article 36 of this Decree.

4. In case scraps and discarded products that are generated during processing and sold to the domestic market will be entitled to import duty exemption and duty payers shall not be required to carry out customs procedures but shall declare and pay value-added tax, excise tax and environmental protection tax (if any) to tax offices in accordance with the tax laws.

5. Duty exemption dossiers and procedures must comply with Article 31 of this Decree.

When performing on-spot export procedures for the goods specified in this Article, in addition to duty exemption dossiers specified in Article 31 of this Article, on-spot exporters shall produce concerned foreign organizations’ or individuals’ documents assigning the delivery of goods in Vietnam: 1 copy”.

5. To amend and supplement Point a, Clause 1, Article 11 as follows:

“Article 11. Duty exemption for goods exported for processing, and for processed products imported

1. Goods exported for processing and processed products imported 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:

a/ Exported raw materials, supplies and components.

The value or quantity of raw materials, supplies and components actually exported corresponding to the quantity of processed products that are not imported back to the country are subject to export duty at the rate applicable to such raw materials, supplies and components.

Goods exported for processing which are natural resources or minerals, and products with a total value of natural resources or minerals plus energy cost accounting for 51% or more of production costs, and goods (excluding scraps generated from imported goods during export production or processing) exported for processing which are subject to export duty, are not entitled to export duty exemption.

The identification of products with a total value of natural resources or minerals plus energy cost accounting for 51% or more of production costs must comply with the Government’s Decree No. 100/2016/ND-CP of July 1, 2016, detailing and guiding the implementation of a number of articles of the Law Amending and Supplementing a Number of Articles of the Law on Value-Added Tax, the Law on Excise Tax and the Law on Tax Administration, and the Government’s Decree No.146/2017/ND-CP of December 15, 2017, amending and supplementing a number of articles of Decree No. 100/2016/ND-CP.”

6. To amend and supplement Article 12 as follows:

“Article 12. Duty exemption for goods imported for export production

1. Goods imported for export production entitled to import duty exemption under Clause 7, Article 16 of the Law on Import Duty and Export Duty include:

a/ Imported raw materials, supplies (including also supplies for production of packaging or for packaging of exported products), components, and semi-finished products which directly constitute exported products or are directly used in export production but are not directly transformed into goods;

b/ Finished products which are imported for packaging or labeling of, or for being attached or assembled with, exported products or packed together with exported products into goods in complete sets;

c/ Components and spare parts which are imported for provision of warranty for exported products;

d/ Imported goods which are used as samples only but not for trading, barter or consumption;

dd/ Goods imported for export production which are permitted to be destroyed in Vietnam and have actually been destroyed.

2. Grounds for determining goods’ eligibility for duty exemption:

a/ Duty payers own or have the right to use export production facilities or machinery and equipment at production facilities in Vietnam’s territory. Duty payers shall notify customs offices of their production facilities and machinery and equipment at such facilities; or notify customs offices of production and processing facilities of those subcontracted by duty payers for export production or processing and subcontractor agreements in accordance with the customs law. In case duty payers fail to notify customs offices of those subcontracted by duty payers for export production or processing and subcontractor agreements within the time limit specified by the customs law, they shall only be subject to sanctions for customs-related administrative violations according to regulations.

Duty payers shall hand over imported goods specified in Clause 1 of this Article to subcontract export production or processing to other organizations and individuals that own or have the right to use production facilities or machinery and equipment at production facilities in the following cases:

a.1/ In case duty payers hand over part or the whole of the quantity of imported goods to subcontract one or several stage(s) of production or processing to other organizations and individuals in Vietnam’s territory and then receive back semi-finished products for further production of exported products, they will be entitled to exemption from import duty on goods imported and handed over to subcontractors.

a.2/ In case duty payers hand over part or the whole of the quantity of semi-finished products they produce from imported goods to subcontract one or several stage(s) of production or processing to other organizations and individuals in Vietnam’s territory and then receive back semi-finished products for further production of exported products or receive back finished products for export, they will be entitled to exemption from export duty on goods imported for production of semi-finished products handed over to subcontractors.

a.3/ In case duty payers hand over part of the quantity of imported goods to subcontract all stages of production or processing to other organizations and individuals in Vietnam’s territory and then receive back finished products for export, they will be entitled to exemption from import duty on goods imported and handed over to subcontractors.

a.4/ In case duty payers hand over imported goods and semi-finished products produced wholly from imported goods to subcontract the production or processing to other organizations or individuals in non-tariff zones or in foreign countries in the case specified at Point a.1, a.2 or a.3 of this Clause, they will be entitled to exemption from export duty on imported goods and semi-finished products produced wholly from imported goods handed over to subcontractors. Duty payers shall pay import duty according to Point d, Clause 1, Article 11 of this Decree when importing back to Vietnam products produced or processed overseas by subcontractors; and according to Clause 2, Article 22 of this Decree when importing into Vietnam’s inland products produced or processed by subcontractors in non-tariff zones.

b/ In case duty payers import goods under Clause 1 of this Article and hand over the whole quantity of imported goods to organizations which own more than 50% of charter capital or ordinary shares of the former for the latter to produce or process products and then receive back products for export, the duty payers will be entitled to exemption from import duty on goods imported and handed over for production and processing (including also cases in which the organizations undertaking the production of goods subcontract one or several stage(s) of export production or processing to other units). The organizations undertaking production or processing must own or have the right to use production and processing facilities or machinery and equipment at production facilities in Vietnam’s territory. Duty payers shall notify customs offices of production and processing facilities of organizations undertaking the production or processing or of production and processing facilities of subcontractors and subcontractor agreements in accordance with the customs law. In case duty payers fail to notify customs offices of information on production and processing facilities of subcontractors and subcontractor agreements within the time limit specified by the customs law, they shall only be subject to sanctions for customs-related administrative violations according to regulations.

Duty payers shall additionally submit the following documents to customs offices when notifying production facilities of the organizations subcontracted to carry out the production:

Enterprise registration certificates or audited latest financial statements of the organizations undertaking the production and the duty payers: 1 certified copy each;

Organization and operation charters of organizations undertaking the production and the duty payers: 1 certified copy each;

Shareholder registers, for joint-stock companies, or member registers, for limited liability companies with two or more members, of the organizations undertaking the production and the duty payers: 1 certified copy each.

In case duty payers hand over the whole quantity of imported goods to subcontract production or processing to organizations in non-tariff zones or in foreign countries, they will be entitled to exemption from export duty on imported goods handed over to subcontractors. Duty payers shall pay import duty according to Point d, Clause 1, Article 11 of this Decree when importing back to Vietnam products produced or processed by subcontractors in foreign countries and according to Clause 2, Article 22 of this Decree when importing into Vietnam’s inland products produced or processed by subcontractors in non-tariff zones.

c/ Duty payers shall conduct final settlement of the use of duty-free goods in accordance with the customs law.

d/ The quantity of goods imported for production of products for export to foreign countries or non-tariff zones and exempt from duty is the quantity of imported goods actually used for production of products already exported.

Goods imported for production of products exported on spot to organizations and individuals in Vietnam’s inland (outside non-tariff zones) and products imported or exported on spot must comply with Points e, g and h of this Clause.  

dd/ Goods imported for production, produced products, scraps and discarded products turned out during production which are permitted to be destroyed and have been actually destroyed in accordance with the customs law will be exempt from import duty.

In case duty payers import goods for export production but do not use such goods or have actually used the imported goods for export production but fail to export products, they will not be entitled to exemption from import duty; duty payers shall register new customs declarations and declare and pay duty according to the duty rates applicable to and the dutiable value of the imported goods at the time of registration of new customs declarations, except cases in which such imported goods are used as presents or gifts according to Article 8 of this Decree.

e/ The quantity of imported goods which are used for production of products for on-spot export and exempt from import duty is the quantity of goods actually used for production of products actually exported on spot, provided the on-spot exporters notify customs offices of information on the customs declarations of the relevant products imported on spot for which import procedures have been completed within 15 days after the products exported on spot are cleared from customs procedures; such a notice shall be made according to Form No. 22 provided in Appendix VII to this Decree.

Past the above-said time limit, if the on-spot exporters fail to notify customs offices of information on the customs declarations of the relevant products imported on spot for which import procedures have been completed, they shall register new customs declarations and declare and pay duty for imported goods actually used for production of products exported on spot according to the duty rates applicable to and the dutiable value of the imported goods at the time of registering the new customs declarations.

After paying duty, if on-spot exporters notify customs offices of information on the customs declarations of the relevant products imported on spot for which import procedures have been completed, their paid duty amounts shall be handled according the tax administration law’s provisions on handling of overpaid tax amounts.

g/ Products exported on spot are not exempt from export duty. On-spot exporters shall register on-spot export declarations and declare and pay export duty according to the duty rates applicable to and the dutiable value of the products exported on spot at the time of registering the on-spot export declarations.

h/ Products imported on spot for which customs declarations are registered under the mode of import for processing will be exempt from import duty if the on-spot importers meet the requirements specified at Points a and b, Clause 2, Article 10 of this Decree. For products imported on spot for which customs declarations are registered under other modes, on-spot importers shall declare and pay duty according to the duty rates applicable to and the dutiable value of the imported products at the time of registering customs declarations.

In case on-spot importers have actually paid import duty for goods used for their production and business, have actually used products imported on spot for export production and exported these products to foreign countries or non-tariff zones, they will be entitled to refund of paid import duty amounts according to Article 36 of this Decree.

3. Dossiers and procedures for duty exemption must comply with Article 31 of this Decree.

When carrying out procedures for on-spot export for goods specified in this Article, in addition to the duty exemption dossiers specified in Article 31 of this Decree, on-spot exporters shall submit the order on delivery of goods in Vietnam, made by foreign organizations or individuals: 1 copy.

4. Scraps and discarded products turned out in the process of export production which are sold to the domestic market will be exempt from import duty; duty payers are not required to carry out customs procedures but shall declare and pay value-added tax, excise tax and environmental protection tax (if any) to tax offices in accordance with the tax laws.”

7. To amend and supplement Clause 4 of, and add Clause 6 to, Article 14 as follows:

“Article 14. Duty exemption for goods imported to create fixed assets of subjects entitled to investment incentives

4. Grounds for identification of domestically unavailable building materials must comply with the Ministry of Planning and Investment’s regulations.

Grounds for identification of special-use vehicles in technology lines directly used for production activities of investment projects must comply with the Ministry of Science and Technology’s list or criteria for identification of imported goods exempted from duty or the Ministry of Science and Technology’s written certification of imported special-use vehicles in technology lines directly used for production activities of investment projects.

6. Grounds for identification of eligibility for duty exemption

a/ For investment projects in sectors and trades eligible for investment incentives or special investment incentives; investment projects in geographical areas meeting with difficult socio-economic conditions or extremely difficult socio-economic conditions: To comply with Appendices I and II to the Government’s Decree No. 118/2015/ND-CP of November 12, 2015, detailing and guiding a number of articles of the Law on Investment (below referred to as Decree No. 118/2015/ND-CP) and documents revising or replacing such Decree (if any).

b/ Investment projects which have an investment capital level of VND 6 trillion or higher, have disbursed at least VND 6 trillion in 3 years after obtaining investment registration certificates or investment policy approval documents and concurrently meet one of the following conditions: earning a total turnover of at least VND 10 trillion  per year in no later than 3 years after generating incomes or employing more than 3,000 workers as specified at Point c, Clause 2, Article 15 of Law No. 61/2020/QH14 on Investment, will be entitled to import duty exemption under Clause 1 of this Article based on project owners’ declarations.

Customs offices which receive project owners’ lists of duty-free goods shall inspect the disbursement of investment capital and satisfaction of criteria on total turnover and number of employed workers at the project owners’ head offices according to the order and procedures for post-customs clearance inspection. In case investment projects fail to disburse at least VND 6 trillion in 3 years after obtaining investment registration certificates or investment policy approval documents or have disbursed at least VND 6 trillion in 3 years after obtaining investment registration certificates or investment policy approval documents but fail to meet the criterion on total turnover or number of employed workers under the law on investment, the project owners will not be eligible for import duty incentives under Clause 1 of this Article and shall declare and fully pay the duty amounts already exempted and late-payment interests in accordance with the law on tax administration.

c/ For investment projects in rural areas that employ 500 workers or more (excluding part-time workers and workers under labor contracts of a term shorter than 12 months): The time for determining the number of workers of investment projects is after 12 months from the date the projects are officially put into operation. Project owners shall declare, take responsibility for their declaration, send to customs offices a notice of the date of commencement of operation, made according to Form No. 21 provided in Appendix VII to this Decree, and must meet the criterion on employment of 500 workers or more throughout the projects’ operation period. After the projects are officially put into operation, customs offices receiving the lists of duty-free goods shall inspect the number of workers of investment projects.

At the time of determining an investment project’s satisfaction of the criterion on number of employed workers, if the number of workers employed by the project has not yet reached 500, the project will not be eligible for import duty incentives under Clause 1 of this Article. The duty payer shall declare and fully pay duty amounts already exempt and late-payment interests in accordance with the law on tax administration.

For an investment project employing 500 workers or more and implemented in both rural and non-rural areas, the project’s satisfaction of the criterion on number of employed workers shall be determined based on the number of workers working at the project’s works and work items in rural areas while the number of workers working at project’s works and work items in non-rural areas will be excluded.

d/ For hi-tech enterprises, science and technology enterprises and science and technology organizations, the law on high technologies and the law on science and technology shall apply.

dd/ Grounds for identification of eligibility for duty exemption for other subjects entitled to investment incentives specified in Law No. 61/2020/QH14 on Investment must comply with the law on investment and relevant specialized laws.

e/ The import duty incentives specified in Clause 1 of this Article shall not apply to the investment projects specified in Clause 5, Article 15 of Law No. 61/2020/QH14 on Investment.”

8. To amend and supplement Clause 1, Article 15 as follows:

“Article 15. Import duty exemption for raw materials, supplies and components for a 5-year period

1. Domestically unavailable raw materials, supplies and components which are imported to serve production activities of investment specified at Points a, b and c of this Clause are entitled to import duty exemption for 5 years from the date of commencement of production under Clause 13, Article 16 of the Law on Import Duty and Export Duty.

a/ Investment projects on the list of sectors and trades eligible for special investment incentives specified in Appendix I to Decree No. 118/2015/ND-CP and documents revising or replacing such Decree (if any).

b/ Investment projects on the list of geographical areas with extremely difficult socio-economic conditions specified in Appendix II to Decree No. 118/2015/ND-CP and documents revising or replacing such Decree (if any) or investment projects specified at Points a and c, Clause 2, Article 16 of Decree No. 118/2015/ND-CP and documents revising or replacing such Decree (if any).

c/ Investment projects of hi-tech enterprises, science and technology enterprises, or science and technology organizations in accordance with the law on high technologies and the law on science and technology.

The time of commencement of production is the time when production activities are officially started, excluding the trial production period. Duty payers shall make and take responsibility for their declaration of the date of actual commencement of production and notify such to the customs office which receives their dossiers of notification of the list of duty-free goods before carrying out customs procedures.

Past the 5-year duty exemption period, duty payers shall declare and fully pay duty under regulations for the unused volume of imported duty-free raw materials, supplies and components.”

9. To amend and supplement Clauses 1 and 5 of, and add Clauses 7, 8 and 9 to, Article 28 as follows:

“Article 28. Duty exemption for goods imported or exported to serve social security, overcoming of consequences of natural disasters, catastrophes and epidemics, and in other special cases

1. Goods imported or exported to serve social security, overcoming of consequences of natural disasters, catastrophes and epidemics, and in other special cases are entitled to import duty or export duty exemption under Clause 23, Article 16 of the Law on Import Duty and Export Duty, specifically as follows:

a/ Domestically unavailable goods which need to be imported for direct use in projects under the Government’s social security programs are entitled to import duty exemption;

b/ Domestically unavailable goods to be imported for overcoming consequences of natural disasters, catastrophes and epidemics are entitled to import duty exemption;

c/ Agarwood items produced from planted Aquilaria crassna trees and python skins originated from bred pythons are entitled to export duty exemption;

d/ Unprocessed products of agricultural trees on the list specified in Appendix VIII to this Decree which are planted in Cambodian provinces bordering Vietnam with investment and support provided by Vietnamese enterprises, households, business households or individuals and imported into Vietnam via border gates in customs operation areas for use as materials for production of goods in Vietnam are entitled to import duty exemption.

Those only purchasing these agricultural products or invest in the planting of these products in Cambodian provinces not bordering Vietnam are not entitled to import duty exemption under this Point; 

dd/ The Prime Minister shall decide on import duty or export duty exemption for goods imported or exported in other special cases on a case-by-case basis at the request of the Ministry of Finance.

5. A dossier of request for duty exemption for imported and exported goods in other special cases must comprise:

a/ An official request for exemption from import duty or export duty, made by the concerned ministry, ministerial-level agency, provincial-level People Committee or organization or individual and clearly stating the reason for the request, quantity, category and value of goods, the duty amount requested to be exempted: 1 original;

b/ A list of imported goods or exported goods requested for exemption from import duty or export duty, made according to Form No. 04 provided in Appendix VII to this Decree: 1 original.

7. Procedures for duty exemption for goods imported or exported to serve social security, overcoming of consequences of natural disasters, catastrophes and epidemics, and in other special cases: 

Duty payers shall submit a dossier of request for duty exemption specified in Clause 3, 4, or 5 of this Article to the Ministry of Finance. Within 30 days after receiving a complete and valid dossier, the Ministry of Finance shall appraise the dossier and report the case, enclosed with the list of goods for which duty exemption is requested, to the Prime Minister for decision. In other special cases that require opinions of related ministries and sectors, the time limit for appraisal of dossiers may be prolonged but must not exceed 40 days after receiving a complete and valid dossier. Within 15 days after receiving the Ministry of Finance’s appraisal document, the Prime Minister shall issue a decision on import duty or export duty exemption, made according to Form No. 23 provided in Appendix VII to this Decree, or issue a document on refusal to grant duty exemption to the requester.

Based on the Prime Minister’s duty exemption decision, the customs office which performs import or export procedures for goods shall effect import or export duty exemption.

8. Dossiers and procedures for export duty exemption for agarwood items produced from planted Aquilaria crassna trees and python skins originated from bred pythons     

Duty exemption dossiers and procedures must comply with Article 31 of this Decree. Particularly for python skins originated from bred pythons, duty payers shall additionally submit the following documents:

a/ Certificate of registration of wildlife breeding farms issued by a local forest protection agency or an agency designated by the Ministry of Agriculture and Rural Development: 1 copy together with the original upon the first exportation for comparison;

b/ Written certification of the quantity of slaughtered pythons, made by a local forest protection agency upon each exportation: 1 copy together with the original for comparison.

9. Duty exemption procedures applicable to unprocessed products of agricultural trees planted in Cambodia with funds provided or invested by Vietnamese partners and imported back to Vietnam:

a/ Annually, duty payers shall notify Customs Departments of provinces bordering Cambodia of the lists of imported goods eligible for duty exemption via the e-data processing system. In case of sending hardcopies of such lists, duty payers shall notify Customs Departments of provinces bordering Cambodia according to Article 30 of this Decree.

In addition to the dossier of notification of the list of imported goods eligible for duty exemption specified in Clause 3, Article 30 of this Decree, duty payers that are enterprises shall additionally submit the following documents:

Written permission for investment made by a competent Cambodian authority of the locality where the Vietnamese enterprise makes investment: 1 copy enclosed with 1 Vietnamese translation containing the enterprise’s seal;

The contract or agreement signed with Cambodia partners on provision of investment support for planting agricultural trees and redemption of agricultural products, clearly stating the amounts of investment in cash and in kind in each field and the equivalent quantity, category and value of each type of agricultural products: 1 copy together with the original for comparison;

Documents related to provision of investment support for planting agricultural trees in Cambodian provinces bordering Vietnam (if any): one copy each together with the original upon the first importation for comparison.

b/ On the basis of the list of imported goods eligible for duty exemption already notified to customs offices, duty payers shall carry out procedures for duty exemption for imported goods according to Article 31 of this Decree.

Customs offices shall base on dossiers of notification of lists of goods eligible for duty exemption, lists of households, business households and individuals providing support or investing in planting agricultural trees in Cambodian provinces bordering Vietnam publicized annually by provincial-level People’s Committees of the localities where such households, business households and individuals reside, examine and compare such lists with actually imported goods for effecting import duty exemption for each imported goods shipment.

People’s Committees of provinces bordering Cambodia shall publicize on their websites lists of households, business households and individuals residing in and providing support or investing in planting agricultural trees in such provinces, made according Form No. 11 provided in Appendix VII to this Decree, and concurrently send such lists to provincial-level Customs Departments and Customs Branches managing border gates in provinces bordering Cambodia. In case there are any changes in the criteria in the publicized lists, it is required to issue adjusting documents as appropriate.” 

   10. To add Article 28a as follows:

“Article 28a. Conditions for customs inspection and supervision of and application of duty policies to export processing enterprises being non-tariff zones

1. Conditions for an export processing enterprise being a non-tariff zone to be subject to customs inspection and supervision:

a/ Having hard fences separating it from outside areas; having entrances/gates to ensure that goods are delivered in and out through such entrances/gates.

b/ Being fitted with a CCTV system that can check all positions at entrances/gates and positions where goods are stored around the clock (including weekends and public holidays); ensuring that surveillance footages are directly connected to the customs office managing it; and retaining surveillance footages for at least 12 months.

The Director General of Customs shall promulgate the format of data messages exchanged between customs offices and enterprises via the CCTV system as specified at Point b of this Clause.

c/ Having a software for managing its imported goods that are not liable to duties in order to make reports on accounting balance of imported goods brought in, taken out and in stock in accordance with the customs law.

2. Procedures for inspection and certification of capacity to satisfy conditions for customs inspection and supervision of export processing enterprises and export processing enterprise project investors:

a/ In case an investor applies for an investment registration certificate for a new investment project or requests a written certification by a competent investment registration agency, for cases not requiring investment registration certificates:

The investor shall submit a written commitment of capacity to satisfy conditions for customs inspection and supervision specified in Clause 1 of this Article, made according to Form No. 24 provided in Appendix VII to this Decree, to the investment registration agency, enclosed with a dossier of application for an investment registration certificate or a dossier of request for a written certification by the competent investment registration agency, for cases not requiring investment registration certificates.

The investment registration agency shall send a written request to a competent customs office for collecting opinions on capacity to satisfy conditions for customs inspection and supervision specified in Clause 1, Article 30 of the Government’s Decree No. 82/2018/ND-CP of May 22, 2018, providing the management of industrial parks and economic zones (below referred to as Decree No. 82/2018/ND-CP), documents revising or superseding it (if any) and this Decree, enclosed with a dossier of application for an investment registration certificate or a dossier of request for a written certification by the competent investment registration agency (1 copy), for cases not requiring investment registration certificates, and the enterprise’s written commitment (the original).

Within 3 working days after receiving the written request of the investment registration agency, based on the dossier of application for an investment registration certificate or a dossier of request for a written certification by the competent investment registration agency, for cases not requiring investment registration certificates, and the enterprise’s written commitment, the customs office shall issue a certification of capacity to satisfy conditions for customs inspection and supervision according to the enterprise’s commitment as stated in Form No. 24 provided in Appendix VII to this Decree, and send it to the investment registration agency.

b/ In case an investor applies for an investment registration certificate or requests for modification of an investment registration certificate (if any) or a written certification by the competent investment registration agency, for cases not requiring investment registration certificates for an expanded investment project:

The investor shall submit a written commitment of capacity to satisfy conditions for customs inspection and supervision specified in Clause 1 of this Article, made according to Form No. 24 provided in Appendix VII to this Decree, for the expanded part of the investment project to the investment registration agency, enclosed with a dossier of application for an investment registration certificate or request for modification of an investment registration certificate (if any), or a dossier of request for a written certification issued by the competent investment registration agency, for cases not requiring investment registration certificates.

The investment registration agency shall send a written request to a competent customs office for collecting opinions on capacity to satisfy conditions for customs inspection and supervision specified in Clause 1, Article 30 of Decree No. 82/2018/ND-CP of May 22, 2018, documents revising or superseding it (if any) and this Decree for the expended part of the investment project, enclosed with a dossier of application for an investment registration certificate or a dossier of request for a written certification by the competent investment registration agency (1 copy), for cases not requiring investment registration certificates, and the enterprise’s written commitment (the original).

Within 3 working days after receiving the written request of the investment registration agency, based on the dossier of application for an investment registration certificate or a dossier of request for a written certification by the competent investment registration agency, for cases not requiring investment registration certificates, and the enterprise’s written commitment, the customs office shall issue a written certification of capacity to satisfy conditions for customs inspection and supervision according to the enterprise’s written commitment as stated in Form No. 24 provided in Appendix VII to this Decree, and send it to the investment registration agency.

c/ In case of registration for transformation from a non-export processing enterprise to an export processing enterprise:

Based on the investor’s request, the investment registration agency shall send a written request to a competent customs office for collecting opinions on capacity to satisfy conditions for customs inspection and supervision specified in Clause 1, Article 30 of Decree No. 82/2018/ND-CP of May 22, 2018, documents revising or superseding it (if any) and this Decree.

Within 10 working days after receiving the written request of the investment registration agency, the customs office shall carry out physical inspection of the conditions for customs inspection and supervision specified in Clause 1 of this Article and send a written certification of satisfaction or unsatisfaction of conditions for customs inspection and supervision, made according to Form No. 26 provided in Appendix VII to this Decree, to the investment registration agency.

3. Investors implementing investment projects (including new investment projects and expanded investment projects) are entitled to duty policies applicable to non-tariff zones in accordance with the Law on Import Duty and Export Duty from the time their status as export processing enterprises is stated in their investment registration certificates, modified investment registration certificates or written certifications by competent investment registration agencies, for cases not requiring investment registration certificates.

Physical inspection of conditions for customs inspection and supervision for application of duty policies to non-tariff zones must comply with Clauses 4, 5 and 6 of this Article.

4. Physical inspection of conditions for customs inspection and supervision of export processing enterprises (including enterprises having new investment projects and expanded investment projects):

a/ At least 30 days before an export processing enterprise officially commences its operation as stated in its investment registration certificate or modified investment registration certificate (if any) or written certification by the competent investment registration agency, for cases not requiring investment registration certificates, or the investment registration agency’s written certification of time of the export processing enterprise’s official commencement of operation that is behind the schedule stated in the above-mentioned documents, the export processing enterprise shall send a notice of satisfaction of the conditions for customs inspection and supervision specified in Clause 1 of this Article, made according to Form No. 25 provided in Appendix VII to this Decree, to the Customs Branch managing the enterprise.

In case the investment registration certificate or modified investment registration certificate or written certification by the competent investment registration agency, for cases not requiring investment registration certificates, does not specify time of the export processing enterprise’s official commencement of operation, that time shall be the time the enterprise’s official commencement of production as notified to the customs office.

b/ Within 10 working days after receiving the notice from the export processing enterprise, the Customs Branch managing the enterprise shall complete the inspection of the conditions for customs inspection and supervision specified in Clause 1 of this Article, and send a written certification of satisfaction or unsatisfaction of the conditions for customs inspection and supervision specified in Clause 1 of this Article, made according to Form No. 26 provided in Appendix VII to this Decree, to the export processing enterprise. In case the export processing enterprise receives a written certification of unsatisfaction of conditions for customs inspection and supervision, it shall further improve so as to satisfy the conditions for customs inspection and supervision specified in Clause 1 of this Article within 1 year after the Customs Branch managing the enterprise issues the certification for the first time.

c/ When completely satisfying the conditions for customs inspection and supervision specified in Clause 1 of this Article, the export processing enterprise shall send a written request, made according to Form No. 25 provided in Appendix VII to this Decree, to the Customs Branch of the locality where it is managed for re-inspection of conditions for customs inspection and supervision specified in Clause 1 of this Article. Within 10 working days after receiving the export processing enterprise’s written request, the Customs Branch managing the enterprise  shall complete the re-inspection of conditions for customs inspection and supervision, and send a written certification of satisfaction or unsatisfaction of the conditions for customs inspection and supervision specified in Clause 1 of this Article, made according to Form No. 26 provided in Appendix VII to this Decree, to the export processing enterprise.

The export processing enterprise may fulfill the conditions for customs inspection and supervision specified in Clause 1 of this Article for many times within 1 year after the Customs Branch managing the enterprise issues the certification for the first time.

d/ Past 1 year after the Customs Branch managing the enterprise issues the certification for the first time, if the export processing enterprise fails to notify the Customs Branch managing the enterprise or fails to satisfy the conditions for customs inspection and supervision specified in Clause 1 of this Article, it is not entitled to duty policies applicable to non-tariff zones. It shall make full payment of duties, late-payment interests and fines for imported goods for which duty policies applicable to non-tariff zones have been applied from the date of grant of the investment registration certificate or modified investment registration certificate or issuing the written certification by the competent investment registration agency for cases not requiring investment registration certificates, corresponding to the new investment project or expanded part of the investment project which fails to satisfy the conditions for customs inspection and supervision specified in Clause 1 of this Article.

In case the enterprise subsequently satisfies the conditions for customs inspection and supervision specified in Clause 1 of this Article and sends a notice to the Customs Branch managing the enterprise for re-inspection of conditions for customs inspection and supervision under Point c of this Clause, it is entitled to the duty policies applicable to non-tariff zones from the date the Customs Branch managing the enterprise issues a written certification of satisfaction of the conditions for customs inspection and supervision specified in Clause 1 of this Article.

5. Physical inspection of conditions for customs inspection and supervision of export processing enterprises that are granted investment registration certificates, modified investment registration certificates (if any) or written certifications by competent investment registration agencies, for cases not requiring investment registration certificates, before the effective date of this Decree and are in operation, including those that have their conditions for customs inspection and supervision certified by customs offices before the effective date of this Decree, is as follows:

a/ Within 1 year from the effective date of this Decree, an export processing enterprise shall fulfill the conditions for customs inspection and supervision specified in Clause 1 of this Article. When it fulfills the conditions for customs inspection and supervision specified in Clause 1 of this Article, it shall send a notice to the Customs Branch managing the enterprise, made according Form No. 25 provided in Appendix VII to this Decree.

b/ Within 10 working days after receiving the notice from the export processing enterprise, the Customs Branch managing the enterprise shall complete the inspection of the conditions for customs inspection and supervision specified in Clause 1 of this Article, and send a written certification of satisfaction or unsatisfaction of the conditions for customs inspection and supervision specified in Clause 1 of this Article, made according to Form No. 26 provided in Appendix VII to this Decree, to the export processing enterprise. In case the export processing enterprise receives a written certification of unsatisfaction of conditions for customs inspection and supervision, it shall further improve so as to satisfy the conditions for customs inspection and supervision specified in Clause 1 of this Article within 1 year after the Customs Branch managing the enterprise issues the certification for the first time.

c/ When the export processing enterprise fulfills conditions for customs inspection and supervision specified in Clause 1 of this Article, it shall send a written request, made according to Form No. 25 provided in Appendix VII to this Decree, to the Customs Branch managing the enterprise for re-inspection of conditions for customs inspection and supervision specified in Clause 1 of this Article. Within 10 working days after receiving the export processing enterprise’s written request, the Customs Branch managing the enterprise  shall complete the re-inspection of conditions for customs inspection and supervision, and send a written certification of satisfaction or unsatisfaction of the conditions for customs inspection and supervision specified in Clause 1 of this Article, made according to Form No. 26 provided in Appendix VII to this Decree, to the export processing enterprise.

The export processing enterprise may fulfill conditions for customs inspection and supervision specified in Clause 1 of this Article for many times within 1 year after the Customs Branch managing the enterprise issues the certification for the first time.

d/ Past 1 year from the effective date of this Decree, if the export processing enterprise specified in this Clause fails to send a notice, made according to Form No. 25 provided in Appendix VII to this Decree, or fails to satisfy conditions for customs inspection and supervision specified in Clause 1 of this Article, it is not entitled to duty policies applicable to non-tariff zones from the expiry date of the above-mentioned 1-year time limit.

In case the enterprise subsequently satisfies the conditions for customs inspection and supervision specified in Clause 1 of this Article and sends a notice to the Customs Branch managing the enterprise for re-inspection of conditions for customs inspection and supervision under Point c of this Clause, it is entitled to duty policies applicable to non-tariff zones from the date the Customs Branch of the locality where it is managed issues a written certification of satisfaction of conditions for customs inspection and supervision conditions specified in Clause 1 of this Article.

6. Export processing enterprises that are granted investment registration certificates, modified investment registration certificates (if any) or written certifications by competent investment registration agencies, for cases not requiring investment registration certificates and are in operation, including those that have their conditions for customs inspection and supervision certified by customs offices, before the effective date of this Decree (if any) shall carry out physical inspection of conditions for customs inspection and supervision conditions under Clause 4 of this Article.

7. For the cases specified in Clauses 5 and 6 of this Article in which duty policies applicable to non-tariff zones have not yet been applied from the time of grant of investment registration certificates, modified investment registration certificates (if any) or written certifications by competent investment registration agencies, for cases not requiring investment registration certificates, until the time customs offices issue written certifications of capacity to satisfy the conditions for customs inspection and supervision specified in Clause 1, Article 30 of Decree No. 82/2018/ND-CP and this Decree, when enterprises satisfy the conditions for customs inspection and supervision specified in Clause 1 of this Article, its overpaid duty amounts (if any) shall be handled in accordance with the law on tax administration.”

11. To amend and supplement Clauses 2, 3 and 4, Article 29 as follows:

“Article 29. Duty exemption for goods with a minimal value, goods sent via postal service or express mail service

2. Imports sent via postal service or express mail service and having a customs value of up to VND 1,000,000, or a payable duty amount of up to VND 100,000 are entitled to import duty exemption.

For goods having a customs value of over VND 1,000,000 or a payable duty amount of over VND 100,000, import duty shall be paid for the whole shipment of such goods.

3. Goods having a customs value of up to VND 500,000, or a payable import or export duty amount of up to VND 50,000 for each importation or exportation are entitled to import or export duty exemption.

This Clause does not apply to goods being gifts or presents, goods purchased, sold or bartered between border inhabitants and goods sent via postal service or express mail service.

4. Duty exemption dossier: The customs dossier as specified by the customs law.”

12. To add Article 29a as follows:

 “Article 29a. Duty exemption for goods imported or exported under treaties

1. Imports or exports are entitled to import or export duty exemption in accordance with treaties to which the Socialist Republic of Vietnam is a contracting party.

2. Grounds for identifying goods entitled to import or export duty exemption

a/ Categories and limits of duty-free goods specified in treaties;

b/ Written certifications by agencies proposing the conclusion or accession to treaties, or specialized management agencies in case treaties do not specify categories and limits of goods entitled to duty exemption.

In case an agency proposing the conclusion of or accession to a treaty is not a specialized management agency, such agency’s written certification shall be used as a ground.

3. Procedures for certification in case a treaty does not specify categories and limits of goods entitled to duty exemption

a/ An organization or individual who uses duty-free goods shall send to the agency proposing the conclusion or accession to the treaty or  a specialized management agency an official letter requesting certification of categories and limits of goods entitled to import or export duty exemption, made according to Form No. 13 provided in Appendix VII to this Decree.

b/ Within 15 days after receiving the official letter, the agency proposing the conclusion or accession to the treaty or specialized management agency shall send to the requester a written certification of categories and limits of goods entitled to import or export duty exemption, made according to Form No. 14 provided in Appendix VII to this Decree, or a written refusal if goods for which duty exemption is requested do not comply with the treaty.

4. Notification of duty-free goods lists

Before registering the first customs declaration of duty-free imports or exports, an organization or individual shall notify a customs office of a list of goods entitled to import or export duty exemption (below referred to as duty-free goods list).

a/ A dossier of notification of a duty-free goods list must comprise:

- A notice of a duty-free goods list, made according to Form No. 05 provided in Appendix VII to this Decree: 1 original;

- The duty-free goods list to be sent via the customs office’s e-data processing system. In case the system experiences a technical breakdown, the project owner shall submit 2 originals of the duty-free goods list (in paper form), made according to Form No. 06 provided in Appendix VII to this Decree and 1 original of the reconciliation monitoring slip, made according Form No. 07 provided in Appendix VII to this Decree.

In case machinery or equipment has to be imported in various shipments at different times and for which reconciliation of quantity of goods at the time of importation cannot be done (below referred to as group or line), the project owner shall submit 2 original of the duty-free goods list (in paper form), made according to Form No. 06 provided in Appendix VII to this Decree;

The duty-free goods list shall be made in conformity with the treaty or the document certifying the duty-free goods categories and quotas issued by the agency proposing the conclusion or accession to the treaty or specialized management agency;

- The treaty in case the treaty specifies duty-free goods categories and quotas: 1 copy;

- A document certifying categories and quotas of goods entitled to import or export duty exemption specified at Point b, Clause 3 of this Article: 1 copy together with the original for checking.

b/ Place for duty-free goods list notification, modifications to duty-free goods lists; responsibilities of customs office receiving duty-free goods lists; and responsibilities of organizations or individuals notifying duty-free goods lists must comply with Clauses 4, 5, 6 and 7, Article 30 of this Decree.

c/ In case the organization or individual does not directly import or export duty-free goods but a principal contractor, subcontractor or financial leasing company does so, such contractor or company shall use the duty-free goods list notified by the organization or individual to the customs office.

5. Duty exemption dossiers and procedures must comply with Article 31 of this Decree.”

13. To amend and supplement Points b and k, Clause 3 and Point dd, Clause 7, Article 30 as follows:

“Article 30. Notification of lists of duty-free goods to be imported in cases duty-free goods lists are notified

3. A notification dossier of a duty-free goods list must comprise:

b/ The duty-free goods list to be sent via the customs office’s e-data processing system. In case the system experiences a technical breakdown, the project owner shall submit 2 originals of the duty-free goods list (in paper form), made according to Form No. 06 provided in Appendix VII to this Decree, and 1 original of the reconciliation monitoring slip, made according Form No. 07 provided in Appendix VII to this Decree.

In case machinery or equipment has to be imported in various shipments at different times and for which reconciliation of quantity of goods at the time of importation cannot be done (below referred to as group or line), the project owner shall submit 2 original of the duty-free goods list (in paper form), made according to Form No. 06 provided in Appendix VII to this Decree;

k/ The contract on lease of manufacturing machinery or equipment or manufacturing components, details, parts and spare parts of machinery and equipment, for goods specified at Point a, Clause 11; Point b, Clause 15; and Point a, Clause 16, Article 16 of the Law on Import Duty and Export Duty: 1 copy.

In case documents specified in this Clause are sent in electronic form by specialized state management agencies via the Vietnam National Single–Window , project owners are not required to submit them when notifying duty-free goods lists to customs offices.

7. Responsibilities of a project owner:

dd/ To notify the use of free-duty imports under Article 31a of this Decree.”

14. To amend Point e of and add Point h to Clause 2, supplement Point c, Clause 3, and add Clause 5 to Article 31 as follows:

“Article 31. Duty exemption dossiers and procedures upon customs clearance

2. In addition to the dossier specified in Clause 1 of this Article, depending on each case, a duty payer shall submit one of the following documents:

e/ For a vehicle specified in Clauses 11, 15 and 16, Article 16 of the Law on Import Duty and Export Duty, the Ministry of Science and Technology’s written certification: 1 original;

h/ For the cases specified at Points a, b and dd, Clause 1, Article 28 of this Decree, the Prime Minister’s decision on duty exemption: 1 copy together with the original for comparison.

3. Duty exemption procedures:

c/ The e-data processing system automatically reconciles the quantity of imported goods or exported goods corresponding to the quantity of goods stated in the list of duty-free goods.

In case of a paper notice of the list of duty-free goods, the customs office shall update and reconcile the quantity of imported or exported goods corresponding to the quantity of goods stated in the list of duty-free goods.

In case of group- or line-based import of duty-free goods, a duty payer shall carry out customs procedures at the customs office of the place where machinery and equipment are installed. At the time of registration of customs declaration, the duty payer shall make detailed declarations of goods on the customs declaration. If unable to make detailed declarations on the customs declaration, the duty payer shall make a detailed list of goods imported in groups or lines according to Form No. 04 provided in Appendix VIIa to this Decree through the e-data processing system or according to Form No. 15 provided in Appendix VII to this Decree and enclose it with the customs declaration. Within 15 days after completing the import of the last shipment of each group or line of goods, the duty payer shall send a notice of completion of group- or line-based import of goods, made according to Form No. 05 provided in Appendix VIIa to this Decree, to the customs office of the place where the list of duty-free goods is notified through the e-data processing system or according to Form No. 16 provided in Appendix VII to this Decree.

5. Procedures for import duty exemption in special cases

a/ In case a duty payer is exempt from import duty on goods imported to create fixed assets for the projects under Article 16 of the Law on Import Duty and Export Duty but does not import goods and is allowed to receive import duty-exempt goods transferred by another organization or individual in Vietnam, it/he/she shall register a new customs declaration for the transferred goods and be exempt from import duty provided that the transfer price is exclusive of import duty. The goods transferor is not required to refund the exempted import duty amount.

b/ Organizations or individuals that carry out entrusted import or win contracts to import goods for supply to the subjects specified in Article 16 of the Law on Import Duty and Export Duty are entitled to import duty exemption for goods imported in the form of entrustment or contract winning provided that the goods price under the entrustment contract or the contract winning price under the contract winning decision is exclusive of import duty.

c/ Financial leasing companies that import goods for supply to the subjects specified in Articles 14, 16, 17, 19 and 25 of this Decree for financial leasing are entitled to import duty exemption provided that the lease price is exclusive of import duty. In case goods imported for financial leasing are not used for the purpose of duty exemption, the financial leasing companies shall register a new customs declaration and make duty payment at the time of registration. In case a new customs declaration is not registered, customs offices shall make duty assessment under regulations.

d/ In case of transfer of the whole or part of a project eligible for investment incentives to another organization or individual, the project owner shall, before transferring the project, send a project transfer notice, made according to Form No. 06 provided in Appendix VIIa to this Decree, through the e-data processing system or according to Form No. 17 provided in Appendix VII to this Decree, to the customs office which receives the notice of the list of duty-free goods, and is not required to refund the exempted import duty amount for the transferred goods. The project transferee shall register a new customs declaration for the transferred goods and be entitled to import duty exemption if fully satisfying the following conditions: At the time of transfer, the project is still eligible for investment incentives; the transfer price is exclusive of import duty; the transferee is owner of the transferred project as written in the adjusted investment certificate or a document of equivalent validity.

The customs office which receives the list of duty-free goods from the owner of the transferred project shall stop using such list on the System or withdraw the paper list of duty-free goods and the reconciliation monitoring slip of the owner of the transferred project; and receive the list of duty-free goods for the quantity of goods not fully imported by this owner.

In case of transfer of the whole of a project but the project owner has not yet fully imported goods according to the list of duty-free goods or in case of transfer of part of a project but the project owner has not yet fully imported goods according to the list of duty-free goods of the transferred project, the transferee shall notify the list of duty-free goods for goods not yet fully imported and belonging to the transferred project or part of the project.

In case of transfer of part of a project but the project owner has not yet fully imported goods according to the list of duty-free goods of the to-be-implemented part of the project, the owner of the transferred project shall notify the list of duty-free goods for the quantity of goods not yet fully imported and belonging to the to-be-implemented part of the project.

dd/ In case imported goods already exempt from import duty to create fixed assets of a project eligible for investment incentives are used for another project eligible for investment incentives of the same project owner, such project owner shall register a new customs declaration for the transferred goods and is entitled to import duty exemption if satisfying the following conditions: The price of transferred goods is exclusive of import duty; the goods are suitable to the field and size of the receiving project eligible for investment incentives is ensured; the goods comply with regulations on fixed assets; and the goods are named in the list of duty-free goods of the receiving project already notified to the customs office.

The received goods are reconciled on the list of duty-free goods of the receiving project already notified to the customs office. The owner of the transferred project may import an additional quantity of goods to replace the transferred goods, and shall notify the supplemented list of duty-free goods under Clause 5, Article 30 of this Decree.

e/ Imported goods falling into the cases specified in Article 16 of the Law on Import Duty and Export Duty (except the cases specified in Clauses 6 and 7, Article 16) that are subject to destruction and have actually been destroyed under regulations will be entitled to import duty exemption. The destruction must comply with relevant regulations and be carried out under the direct supervision of customs officers. Before the destruction, the duty payer shall send a notice to the customs office, clearly stating the reason for destruction, names of goods to be destroyed, and time and place of destruction (1 original); written permission for destruction issued by the specialized management agency or provincial-level Department of Natural Resources and Environment (1 copy together with the original for comparison).

Within 30 days from the date of destruction, the duty payer shall submit to the customs office where the import declaration is registered the following documents: the written certification of destruction results bearing the full name, signature and seal of the director of the enterprise that has goods destroyed; full name(s) and signature(s) of the customs officer supervising the destruction, and of persons assigned by the enterprise’s director to carry out and supervise the destruction; signature of the representative of the related state agency (if any) (1 copy together with the original for comparison).”

15. To add the following Article 31a:

“Article 31a. Notification and inspection of the use of goods eligible for import duty exemption

1. Notification of the use of goods eligible for import duty exemption

a/ Notifying subjects:

Project owners shall send a notice of the use of goods eligible for import duty exemption according to Form No. 07 provided in Appendix VIIa to this Decree through the e-data processing system or according to Form No. 18 provided in Appendix VII to this Decree, to the customs office which receives the list of duty-free goods, for cases subject to notification of the list of the duty-free goods to the customs office.

b/ Time and time limit for notification:

Within 90 days from the end of a fiscal year, organizations or individuals shall notify the use of duty-free goods in the fiscal year to the customs office which receives the list of duty-free goods until the whole project terminates its operation or the goods have been re-exported out of Vietnam or when the use purpose of duty-free goods is changed, the goods are used for domestic sale or have been destroyed.

For the cases of import duty exemption specified in Articles 15 and 23 of this Decree, the notification of the use of duty-free goods must be made on an annual basis within 5 years from the date of official operation of a project. Within 30 days from the end of the 5-year period, the project owner shall register a new customs declaration and declare and pay duty on imported raw materials, supplies and components exempt from duty but not yet used up within this period.

2. In case of import of raw materials and supplies for manufacturing as specified at Point a, Clause 11, Point b, Clause 15, and Point a, Clause 16, Article 16 of the Law on Import Duty and Export Duty:

a/ Within 30 days after completing the manufacture of machinery, equipment or components, details, parts and accessories of machinery and equipment, the project owner shall send to the customs office which receives the list of duty-free goods a notice of the completion of manufacture of machinery and equipment, made according to Form No. 08 provided in Appendix VIIa to this Decree through the e-data processing system or according to Form No. 19 provided in Appendix VII to this Decree. If having not used up the goods, within 30 days after completing the manufacture, the project owner shall register a new customs declaration and declare and pay duty at the time of registration.

b/ Within 60 days after receiving the notice from the project owner as specified at Point a of this Clause, the customs office which receives the notice of the list of duty-free goods shall conduct an inspection at the project owner’s head office to determine the quantity of duty-free imported goods that have been used for the purpose of manufacturing machinery, equipment or components, details, parts and accessories of machinery and equipment. In case the customs office detects that the project owner has not used up duty-free goods or changed the use purpose of duty-free goods without registering a new customs declaration, it shall make tax assessment under regulations.

c/ The project owner shall notify the use of imported goods for manufacturing as specified in Clause 1 of this Article. From the year of completing the manufacture, the project owner shall make a notice of the use of manufactured products.

3. In case of group- or line-based import of duty-free goods in multiple shipments without reconciliation of the quantity of goods at the time of registration of the customs declaration, in addition to Clause 1 of this Article, the project owner shall:

a/ Send to the customs office which receives the list of duty-free goods a notice of completion of the installation of goods in groups or lines, made according to Form No. 09 provided in Appendix VIIa to this Decree through the e-data processing system or according to Form No. 20 provided in Appendix VII to this Decree, within 30 days after completing the installation. If having not used up the goods, within 30 days after completing the installation of goods in groups or lines, the project owner shall register a new customs declaration and declare and pay duty at the time of registration.

b/ Within 60 days after receiving the project owner’s notice of completion of the installation of goods in groups or lines, the customs office which receives the notice of the list of duty-free goods shall conduct an inspection at the head office of the project owner to check whether the duty-free imported goods have been used for the purpose of being installed in group- or line-based duty-free goods. In case the customs office detects that the project owner has not used up goods or changed the use purpose of group- or line-based duty-free goods without registering a new customs declaration, the customs office shall make tax assessment under regulations.

c/ The project owner shall notify the use of imported goods to complete the installation of goods in groups or lines as specified in Clause 1 of this Article. From the year of completing the installation of goods in groups or lines, the project owner shall notify the use of installed products.

4. Inspection of the use of duty-free goods

a/ The customs office which receives the notice of the list of duty-free goods shall inspect the use of duty-free goods at the project owner’s head office on the risk management principles.

b/ The inspection is conducted according to the order and procedures for post-customs clearance inspection.”

16. To amend and supplement Clause 2, and Point c, Clause 3, Article 32 as follows:

“Article 32. Import duty or export duty reduction

 2. A dossier of request for duty reduction must comprise:

a/ A duty payer’s written request for duty reduction sent via the customs office’s e-data processing system made according to Form No. 3 provided in Appendix VIIa or written request for duty reduction made according to Form No. 08 provided in Appendix VII to this Decree: 1 original;

b/ The insurance contract, the insurer’s notice of indemnity payment (if any), the insurer’s certification if the insurance contract does not cover tax-related indemnity; contract or agreement on compensation by the carrier if the loss is caused by the carrier (if any): 1 copy;

c/ The record identifying the cause of the damage, made by a competent agency in the locality where such damage arises (a record of fire made by the fire prevention and fighting police office of the locality where the fire occurs; written certification of the commune-level police office; commune-level People’s Committee; industrial park management board; export-processing management board; economic zone management board; border gate management board; maritime administration of the locality where a force majeure event such as disaster, catastrophe, epidemic or accident occurs, causing damage to imported raw materials, machinery or equipment): 1 original.

d/ An assessment service provider’s assessment certificate of the quantity of lost goods or the actual loss rate of goods: 1 original.

3. Procedures and competence for tax reduction:

c/ In case the duty payer submits a dossier after carrying out customs procedures:

Within 30 days after receiving a complete dossier, the provincial-level Customs Department shall make a dossier, check information, appraise the accuracy and completeness of the dossier and issue a decision on duty reduction according to Form No. 12 provided in Appendix VII to this Decree or notify the duty payer of the reason for its/his/her ineligibility for duty reduction and the payable duty amount. If the dossier is incomplete, the customs office shall notify such to the duty payer within 3 working days after receiving the dossier.

In case it is required to conduct physical inspection of goods which have gone through the customs inspection area in order to obtain sufficient grounds for duty reduction, the customs office shall issue a decision on post-customs clearance inspection at the duty payer’s head office and perform the jobs specified at this Point within 40 days after receiving a complete dossier.”

17. To amend and supplement Point a, Clause 1 and Point b, Clause 2, Article 34 as follows:

“Article 34. Duty refund for imported goods subject to re-export

1. Imported goods for which the import duty has been paid and which are subject to re-export are eligible for import duty refund and not subject to export duty, including:

a/ Imported goods subject to re-export to foreign countries, including goods to be exported back to the goods owners, goods already imported to be exported to foreign countries, or goods exported to non-tariff areas for use therein.

Goods shall be re-exported by the initial importer or a party authorized or entrusted by the initial importer;

2. A dossier of request for duty refund must comprise:

b/ The value-added invoice or sale invoice as prescribed by the law on invoices or the commercial invoice: 1 copy.”

18. To amend and supplement Point a, Clause 2, Article 33, Point a, Clause 2, Article 34, Point a, Clause 2, Article 35, Point a, Clause 5, Article 36, and Clause 3, Article 37, as follows:

“a/ A written request for export duty or import duty refund for imported goods or exported goods, sent via the custom office’s e-data processing system, made according to Form No. 01 provided in Appendix VIIa or a written request for export duty or import duty refund, made according to Form No. 09 provided in Appendix VII to this Decree: 1 original.”

19. To add the following Article 37a:

“Article 37a. Non-collection of import duty or export duty

1. Cases of non-collection of duty

a/ Duty shall not be collected for goods that are eligible for duty refund but for which duty has not been paid as specified in Articles 33 thru 37 of this Decree.

b/ Duty shall not be collected for goods that are not subject to import duty or export duty as specified in Articles 33 and 34 of this Decree.

2. Dossier of request for non-collection of duty

A written request for non-collection of import duty or export duty for imported goods or exported goods, sent via the office office’s e-data processing system, made according to Form No. 02 provided in Appendix VIIa or a written request for non-collection of import duty or export duty, made according to Form No. 09a provided in Appendix VII to this Decree: 1 original. For the case specified at Point a, Clause 1 of this Article, in addition to the written request for non-collection of duty, the duty payer shall submit a dossier similar to the dossier of request for duty refund.

3. Time for submitting dossier of request for non-collection of duty: The duty payer shall submit a dossier of request for non-collection of duty at the time of carrying out customs procedures or after the goods are cleared from customs procedures to the customs office where goods export or import procedures are carried out.

4. Procedures for submission, receipt and processing of dossiers of request for non-collection of duty

a/ For the case specified at Point a, Clause 1 of this Article, procedures for submission, receipt and processing of dossiers of request for non-collection of duty are the same as those for submission, receipt and processing of dossiers of request for duty refund.

b/ For the case specified at Point b, Clause 1 of this Article:

In case the declaration of first-time import or export of the goods shipment does not show any duty amount requested for refund and the duty payer submits the dossier of request for non-collection of duty at the time of carrying out customs procedures, the customs office shall issue a decision on non-collection of import duty for re-imported goods, or non-collection of export duty for re-exported goods within the time limit for carrying out customs procedures if having sufficient grounds to believe that the imported goods have been previously exported or the exported goods have been previously imported.

In case the declaration of first-time import or export of the goods shipment shows a duty amount requested for refund or the declaration of first-time import or export of the goods shipment does not show any duty amount requested for refund but the duty payer submits the dossier of request for non-collection of duty after the goods are cleared from customs procedures, procedures for submission, receipt and processing of dossiers of request for non-collection of duty are the same as those for submission, receipt and processing of dossiers of request for duty refund. The customs office shall issue a decision on non-collection of duty on the re-exported or re-imported goods shipment, together with a decision on duty refund for the goods shipment under first-time export or import. The paid duty amount for the re-exported or re-imported goods shipment shall be refunded to the duty payer in accordance with the law on tax administration.”

20. To replace the following words and phrases:

a/ To replace the word “or” at Point d, Clause 3, Article 8 with the word “and”;

b/ To replace the phrase “shall be determined when making finalization of the management and use of raw materials, supplies and components imported for export processing” at Point b, Clause 2, Article 11 with the phrase “shall be determined when making finalization of the management and use of raw materials, supplies and components exported for import processing”;

c/ To replace the phrase “Clause 2” at Point a, Clause 4, and Point a, Clause 6, Article 30 with the phrase “Clause 3”;

d/ To replace the phrase “1 copy bearing a true-copy mark of the concerned agency” in Clause 3, Article 7, Clause 3, Article 8, Clause 4, Article 19, Clause 3, Article 20, Clause 3, Article 26, Clause 3, Article 28, Clause 3, Article 30, Clause 2, Article 31, Clause 2, Article 32, Clause 2, Article 33, Clause 2, Article 34, Clause 2, Article 35, and Clause 5, Article 36, with the phrase “1 copy”;

dd/ To replace the phrase “for development of” at Point b, Clause 4, Article 19, and the phrase “serving” at Point c, Clause 4, Article 19, with the phrase “for direct use for”;

e/ To replace the phrase “Decision No. 219/2009/QD-TTg in Clause 2, Article 38 with the phrase “Decision No. 119/2009/QD-TTg.”

21. To amend and supplement Clauses 2 and 5, Article 40 as follows:

“Article 40. Implementation responsibility

2. The Ministry of Science and Technology shall promulgate a list of, or criteria for identifying, duty-free imported goods, or certify duty exemption under the Prime Minister’s decision for imported special-use vehicles specified in Clauses 11, 15 and 16, Article 16 of the Law on Import Duty and Export Duty and imported goods specified in Clause 21, Article 16 of the Law on Import Duty and Export Duty, except those specified in Clause 1 of this Article.

5. The Ministry of Information and Communications shall prescribe the identification of imported raw materials, supplies and components eligible for import duty exemption to directly serve the production of information technology products, digital content and software.”

Article 2. Organization of implementation

1. This Decree takes effect on April 25, 2021.

2. This Decree will:

a/ Annul a number of contents in Decree No. 134/2016/ND-CP as listed below:

Point c, Clause 3, Article 8, Point b, Clause 4, Article 20, and Clause 1, Article 29, of Decree No. 134/2016/ND-CP;

The phrase “(for cases of requesting duty exemption before customs procedures are carried out) or Form No. 03b provided in Appendix VII to this Decree (for cases of requesting duty exemption after customs procedures are carried out) at Point a, Clause 3, Article 20; the phrase “In case of requesting duty exemption before carrying out customs procedures” at Point a, Clause 4, Article 20; the phrase “Clause 2, Article 8” in Clause 4, Article 31; the phrase “For goods which are eligible for duty refund but for which duty has not been paid or which are not subject to duty under Article 19 of the Law on Import Duty and Export Duty, the dossier and procedures are the same as those for duty refund” in Clause 3, Article 33, Clause 3, Article 34, Clause 3, Article 35, Clause 6, Article 36, and Clause 4, Article 37.

b/ Annul the Ministry of Finance’s Circular No. 90/2011/TT-BTC of June 20, 2011, prescribing export duty exemption for agarwood produced from or made of planted Do bau (Aquilaria Crassna Pierre ex Lecomte); Circular No. 201/2012/TT-BTC of November 16, 2012, prescribing import duty exemption for unprocessed agricultural products grown in Cambodia with investment of Vietnamese partners and imported into Vietnam; Circular No. 81/2013/TT-BTC of June 19, 2013, amending and supplementing Circular No. 201/2012/TT-BTC; Circular No. 116/2013/TT-BTC of August 20, 2013, prescribing export duty exemption for bred python skin.

c/ Annul Article 5 of the Ministry of Finance’s Circular No. 83/2016/TT-BTC of June 17, 2016, guiding the application of investment incentives in accordance with Law No. 67/2014/QH13 on Investment, and the Government’s Decree No. 118/2015/ND-CP of November 12, 2015, detailing and guiding the implementation of a number of articles of the Law on Investment.

d/ Replace Appendix VII to Decree No. 134/2016/ND-CP with Appendix VII to this Decree.

dd/ Add Appendices VIIa and VIII to this Decree.

3. Transitional provisions on import duty incentives for subjects entitled to import duty exemption specified in Clause 9, Article 1 of this Decree:

For investment projects to grow agricultural products on the list specified in Appendix VIII to this Decree that are currently eligible for duty incentives in accordance with the law on import duty and export duty before the effective date of this Decree, the import duty exemption policies specified in Clause 9, Article 1 of this Decree shall continue to apply for the remaining validity period of offshore investment certificates granted by competent state agencies.         

In case Cambodia adjusts its administrative boundaries leading to the fact that its province named in the offshore investment certificate of the enterprise currently enjoying duty exemption incentives specified in Clause 9 Article 1 of this Decree is no longer the one adjacent to the Vietnamese border, the enterprise will continue to be entitled to such incentives for the remaining validity period of its offshore investment certificate granted by a competent state agency.

4. Transitional provisions on on-spot exported goods and on-spot imported goods:

The duty rates for on-spot exported goods and on-spot imported goods specified in Clause 1, Article 1 of this Decree shall be applied on the effective date of Law No. 107/2016/QH13 on Import Duty and Export Duty.

5. Transitional provisions on procedures for duty exemption:

a/ In case the list of duty-free goods is approved by the Prime Minister under Article 29 of Decree No. 134/2016/ND-CP before the effective date of this Decree, duty payers may continue to use such list until they have imported the whole quantity of goods on the list;

b/ Quota books for duty-free goods issued by a competent agency before the effective date of this Decree and remaining unexpired will be further used until the expiry date written therein or when there is an increase or a decrease in staff members (for organizations and agencies).

6. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related organizations and individuals shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC

* The appendices to this Decree are not translated