Law No. 107/2016/QH13

LAW

ON EXPORT DUTY AND IMPORT DUTY

Pursuant to the Constitution of the Socialist Republic of Vietnam;

The National Assembly hereby promulgates the Law on Export Duty and Import Duty.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Law provides for dutiable subjects, duty payers, bases for duty calculation, time of duty calculation, tariffs, anti-dumping duty, countervailing duty and safeguard duty applicable to exported and imported goods; and exemption, reduction and refund of export duty and import duty.

Article 2. Dutiable subjects

1. Goods exported or imported through Vietnam's border gates and borders.

2. Goods exported from the domestic market into non-tariff zones and goods imported from non-tariff zones into the domestic market.

3. Goods exported or imported on the spot, and goods exported or imported by enterprises exercising export rights, import rights and distribution rights.

4. The dutiable subjects of export duty and import duty do not apply to the following cases:

a) Goods in transit, in re-export transit or in transshipment;

b) Humanitarian aid goods and non-refundable aid goods;

c) Goods exported from non-tariff zones abroad; goods imported from abroad into non-tariff zones and used only in non-tariff zones; goods moved from one non-tariff zone to another;

d) The portion of oil and gas used to pay resource tax to the State when exported.

5. The Government shall detail this Article.

Article 3. Duty payers

1. Owners of exported or imported goods.

2. Organisations receiving entrustment for export or import.

3. Persons who exit or enter the country with exported or imported goods, or who send or receive goods through Vietnam's border gates and borders.

4. Persons authorised, guaranteeing and paying duty on behalf of duty payers, including:

a) Customs procedure agents authorised by duty payers to pay export duty and import duty;

b) Enterprises providing postal services and international express delivery services that pay duty on behalf of duty payers;

c) Credit institutions or other organisations operating under the Law on Credit Institutions that guarantee and pay duty on behalf of duty payers;

d) Persons authorised by goods owners in cases where the goods are gifts or presents of individuals, or baggage sent before or after the trip of persons exiting or entering the country;

dd) Branches of enterprises authorised to pay duty on behalf of the enterprises;

e) Other persons authorised to pay duty on behalf of duty payers under law.

5. Persons who purchase and transport goods within the duty-exempt norms of border residents but do not use them for production or consumption and instead sell them on the domestic market, and foreign traders permitted to trade in exported and imported goods at border markets under law.

6. Persons with exported or imported goods that are non-dutiable or duty-exempt but are subsequently changed to dutiable subjects under law.

7. Other cases as prescribed by law.

Article 4. Interpretation of terms

In this Law, the following terms are construed as follows:

1. A non-tariff zone is an economic area within the territory of Vietnam, established under law, with a defined geographical boundary, separated from the outside area by a solid fence, ensuring conditions for customs inspection, supervision and control activities by the customs authority and relevant agencies over exported and imported goods and over means of transport and passengers exiting or entering; the purchase, sale and exchange of goods between a non-tariff zone and the outside is an export-import relationship.

2. The mixed duty calculation method is the simultaneous application of the percentage duty calculation method and the absolute duty calculation method.

3. The percentage duty calculation method is the determination of duty as a percentage (%) of the dutiable value of exported or imported goods.

4. The absolute duty calculation method is the fixing of a certain duty amount per unit of exported or imported goods.

5. Anti-dumping duty is additional import duty applied where goods dumped and imported into Vietnam cause or threaten to cause material injury to the domestic production industry or prevent the formation of a domestic production industry.

6. Countervailing duty is additional import duty applied where subsidised goods imported into Vietnam cause or threaten to cause material injury to the domestic production industry or prevent the formation of a domestic production industry.

7. Safeguard duty is additional import duty applied where excessive imports of goods into Vietnam cause or threaten to cause serious injury to the domestic production industry or prevent the formation of a domestic production industry.

Chapter II

BASES FOR DUTY CALCULATION, TIME OF DUTY CALCULATION AND TARIFFS

Article 5. Bases for calculating export duty and import duty for goods subject to the percentage duty calculation method

1. The amount of export duty or import duty is determined on the basis of the dutiable value and the percentage (%) duty rate of each item at the time of duty calculation.

2. Duty rates for exported goods are specified for each item in the export tariff.

Where goods are exported to a country, group of countries or territory that has an agreement on export duty preferences in trade relations with Vietnam, those agreements shall apply.

3. Duty rates for imported goods include the preferential duty rate, the special preferential duty rate and the ordinary duty rate, and are applied as follows:

a) The preferential duty rate applies to imported goods originating from a country, group of countries or territory that applies most-favoured-nation treatment in trade relations with Vietnam; and goods imported from a non-tariff zone into the domestic market that meet the origin requirement of originating from a country, group of countries or territory that applies most-favoured-nation treatment in trade relations with Vietnam;

b) The special preferential duty rate applies to imported goods originating from a country, group of countries or territory that has an agreement on special preferential import duty in trade relations with Vietnam; and goods imported from a non-tariff zone into the domestic market that meet the origin requirement of originating from a country, group of countries or territory that has an agreement on special preferential import duty in trade relations with Vietnam;

c) The ordinary duty rate applies to imported goods not falling within the cases prescribed in Points a and b of this Clause. The ordinary duty rate is set at 150% of the preferential duty rate of the corresponding item. Where the preferential duty rate is 0%, the Prime Minister shall, based on Article 10 of this Law, decide on the application of the ordinary duty rate.

Article 6. Bases for calculating export duty and import duty for goods subject to the absolute duty calculation method and the mixed duty calculation method

1. The duty amount under the absolute duty calculation method for exported and imported goods is determined on the basis of the actual quantity of goods exported or imported and the absolute duty rate prescribed per unit of goods at the time of duty calculation.

2. The duty amount under the mixed duty calculation method for exported and imported goods is determined as the sum of the percentage-based duty amount and the absolute duty amount under Clause 1, Article 5 and Clause 1, Article 6 of this Law.

Article 7. Duty on imported goods subject to tariff quotas

1. Imported goods within the tariff quota are subject to the duty rates and absolute duty rates prescribed in Clause 3, Article 5 and Article 6 of this Law.

2. Imported goods outside the tariff quota are subject to the out-of-quota duty rates and absolute duty rates prescribed by the competent authority in Clause 1, Article 11 of this Law.

Article 8. Dutiable value and time of duty calculation

1. The dutiable value of export duty and import duty is the customs value under the Law on Customs.

2. The time of calculating export duty and import duty is the time of registering the customs declaration.

For exported and imported goods that are non-dutiable or exempt from export duty or import duty, or that are subject to in-quota duty rates or absolute duty rates, but for which there is a change in the non-dutiable or duty-exempt status or in the application of in-quota duty rates or absolute duty rates under law, the time of duty calculation is the time of registering the new customs declaration.

The time of registering the customs declaration complies with the law on customs.

Article 9. Duty payment deadline

1. Dutiable exported and imported goods must have duty paid before customs clearance or release of the goods under the Law on Customs, except for the case specified in Clause 2 of this Article.

Where a credit institution guarantees the duty payable, the goods may be cleared or released, but late-payment interest shall be paid under the Law on Tax Administration from the date of clearance or release until the date of duty payment. The maximum guarantee period is 30 days from the date of registering the customs declaration.

Where a credit institution has provided a guarantee but, when the guarantee period expires, the duty payer has not paid the duty and late-payment interest, the guarantor is responsible for paying the full duty and late-payment interest on behalf of the duty payer.

2. Duty payers applying the priority regime under the Law on Customs shall pay duty for the customs declarations cleared or released in a month no later than the tenth day of the following month. After this deadline, if the duty payer has not paid duty, he or she must pay the full duty debt and late-payment interest under the Law on Tax Administration.

Article 10. Principles for issuing tariffs and duty rates

1. To encourage the import of raw materials and supplies, giving priority to those that the domestic market cannot yet meet; to pay attention to developing high technology, source technology, energy saving and environmental protection.

2. To conform to the State's socio-economic development orientation and to commitments on export duty and import duty in international treaties to which the Socialist Republic of Vietnam is a party.

3. To contribute to market stabilisation and state budget revenue.

4. To be simple and transparent, facilitating duty payers and implementing the reform of administrative procedures on tax.

5. To apply uniform duty rates to goods of the same nature, composition and use and with similar technical features; import duty rates decrease from finished products to raw materials; export duty rates increase from finished products to raw materials.

Article 11. Competence to issue tariffs and duty rates

1. The Government shall, based on Article 10 of this Law, the Export Tariff according to the List of dutiable commodity groups and the export duty rate brackets for each dutiable commodity group issued together with this Law, the Preferential Tariff committed under the Protocol of Accession to the World Trade Organization (WTO) ratified by the National Assembly, and other international treaties to which the Socialist Republic of Vietnam is a party, issue:

a) The Export Tariff and the Preferential Export Tariff;

b) The Preferential Import Tariff and the Special Preferential Import Tariff;

c) The List of goods and the absolute duty rates, mixed duty rates and out-of-quota import duty rates.

2. Where necessary, the Government shall submit to the Standing Committee of the National Assembly for amendment and supplementation of the Export Tariff according to the List of dutiable commodity groups and the export duty rate brackets for each dutiable commodity group issued together with this Law.

3. The competence to apply anti-dumping duty, countervailing duty and safeguard duty complies with Chapter III of this Law.

Chapter III

ANTI-DUMPING DUTY, COUNTERVAILING DUTY AND SAFEGUARD DUTY

Article 12. Anti-dumping duty

1. Conditions for applying anti-dumping duty:

a) Imported goods are dumped in Vietnam and the dumping margin must be specifically determined;

b) The dumping of goods is the cause of, or threatens to cause, material injury to the domestic production industry or prevents the formation of a domestic production industry.

2. Principles for applying anti-dumping duty:

a) Anti-dumping duty is applied only to the extent necessary and reasonable to prevent or limit material injury to the domestic production industry;

b) Anti-dumping duty is applied after an investigation has been conducted and must be based on the investigation conclusion under law;

c) Anti-dumping duty is applied to goods dumped into Vietnam;

d) The application of anti-dumping duty must not harm domestic socio-economic interests.

3. The period of application of anti-dumping duty shall not exceed 05 years from the date the decision on application takes effect. Where necessary, the decision on application of anti-dumping duty may be extended.

Article 13. Countervailing duty

1. Conditions for applying countervailing duty:

a) Imported goods are determined to be subsidised under law;

b) The imported goods are the cause of, or threaten to cause, material injury to the domestic production industry or prevent the formation of a domestic production industry.

2. Principles for applying countervailing duty:

a) Countervailing duty is applied only to the extent necessary and reasonable to prevent or limit material injury to the domestic production industry;

b) Countervailing duty is applied after an investigation has been conducted and must be based on the investigation conclusion under law;

c) Countervailing duty is applied to subsidised goods imported into Vietnam;

d) The application of countervailing duty must not harm domestic socio-economic interests.

3. The period of application of countervailing duty shall not exceed 05 years from the date the decision on application takes effect. Where necessary, the decision on application of countervailing duty may be extended.

Article 14. Safeguard duty

1. Conditions for applying safeguard duty:

a) The volume, quantity or value of imported goods increases sharply, in absolute terms or relative to the volume, quantity or value of like or directly competitive goods produced domestically;

b) The increase in the volume, quantity or value of imported goods specified in Point a of this Clause causes or threatens to cause serious injury to the domestic industry producing like or directly competitive goods or prevents the formation of a domestic production industry.

2. Principles for applying safeguard duty:

a) Safeguard duty is applied within the scope and to the extent necessary to prevent or limit serious injury to the domestic production industry and to create conditions for that industry to improve its competitiveness;

b) The application of safeguard duty must be based on the investigation conclusion, except in the case of applying provisional safeguard duty;

c) Safeguard duty is applied on a non-discriminatory basis and irrespective of the origin of the goods.

3. The period of application of safeguard duty shall not exceed 04 years, including the period of application of provisional safeguard duty. The period of application of safeguard duty may be extended for no more than the following 06 years, provided that serious injury or a threat of serious injury to the domestic production industry still exists and there is evidence proving that the industry is adjusting to improve its competitiveness.

Article 15. Application of anti-dumping duty, countervailing duty and safeguard duty

1. The application, modification and abolition of anti-dumping duty, countervailing duty and safeguard duty comply with this Law and the law on anti-dumping, the law on countervailing measures and the law on safeguards.

2. Based on the duty rate and the quantity or value of goods subject to anti-dumping duty, countervailing duty or safeguard duty, customs declarants are responsible for declaring and paying duty under the law on tax administration.

3. The Ministry of Industry and Trade shall decide on the application of anti-dumping duty, countervailing duty and safeguard duty.

4. The Ministry of Finance shall prescribe the declaration, collection, payment and refund of anti-dumping duty, countervailing duty and safeguard duty.

5. Where the interests of the Socialist Republic of Vietnam are harmed or violated, the Government shall, based on international treaties, report to the National Assembly for a decision on applying other appropriate trade remedy duty measures.

Chapter IV

DUTY EXEMPTION, REDUCTION AND REFUND

Article 16. Duty exemption

1. Exported and imported goods of foreign organisations and individuals entitled to privileges and immunities in Vietnam, within norms consistent with international treaties to which the Socialist Republic of Vietnam is a party; goods within the standard of duty-free baggage of persons exiting or entering the country; goods imported for sale at duty-free shops.

2. Relocated property, and gifts and presents within norms, from foreign organisations and individuals to Vietnamese organisations and individuals or vice versa.

Relocated property, gifts and presents exceeding the duty-exempt norms in quantity or value shall be subject to duty on the excess portion, except where the receiving unit is an agency or organisation funded by the state budget and permitted by a competent authority to receive them, or in cases for humanitarian or charitable purposes.

3. Goods traded and exchanged across the border by border residents, on the List of goods and within the norms, to serve the production and consumption of border residents.

Where goods within the norms are purchased and transported but not used for the production and consumption of border residents, and exported and imported goods of foreign traders permitted to trade at border markets, duty must be paid.

4. Goods exempt from export duty and import duty under international treaties to which the Socialist Republic of Vietnam is a party.

5. Goods whose value, or the amount of duty payable, is below the minimum level.

6. Raw materials, supplies and components imported for processing export products; finished products imported to be attached to processed products; processed export products.

Processed export products made from domestic raw materials and supplies that are subject to export duty are not exempt from duty on the portion of the value of the domestic raw materials and supplies correspondingly constituting the export products.

Goods exported for processing and then imported are exempt from export duty and import duty calculated on the value of the exported materials constituting the processed product. For goods exported for processing and then imported that are natural resources or minerals, or products in which the total value of natural resources and minerals plus energy cost accounts for 51% or more of the product cost, no exemption is granted.

7. Raw materials, supplies and components imported for producing export goods.

8. Goods produced, processed, recycled or assembled in a non-tariff zone without using raw materials or components imported from abroad, when imported into the domestic market.

9. Goods temporarily imported for re-export or temporarily exported for re-import within a specified period, including:

a) Goods temporarily imported for re-export or temporarily exported for re-import to organise or attend fairs, exhibitions, product introductions, and sports, cultural, artistic or other events; machinery and equipment temporarily imported for re-export for testing and product research and development; machinery, equipment and professional tools temporarily imported for re-export or temporarily exported for re-import to serve work for a specified period or to serve processing for foreign traders, except machinery, equipment, tools and means of transport of organisations and individuals permitted to be temporarily imported for re-export to carry out investment projects, construction, installation of works, or to serve production;

b) Machinery, equipment, components and spare parts temporarily imported to replace or repair foreign seagoing vessels and aircraft, or temporarily exported to replace or repair Vietnamese seagoing vessels and aircraft abroad; goods temporarily imported for re-export to supply foreign seagoing vessels and aircraft anchored at Vietnamese ports;

c) Goods temporarily imported for re-export or temporarily exported for re-import for warranty, repair or replacement;

d) Rotating means temporarily imported for re-export or temporarily exported for re-import to contain exported and imported goods;

dd) Goods traded by temporary import for re-export within the temporary import and re-export period (including the extension period) that are guaranteed by a credit institution or for which a deposit equal to the import duty amount of the temporarily imported and re-exported goods has been made.

10. Non-commercial goods in the following cases: samples; photographs, films and models replacing samples; advertising publications in small quantities.

11. Goods imported to form fixed assets of subjects entitled to investment incentives under the law on investment, including:

a) Machinery and equipment; components, details, detachable parts and spare parts for synchronous assembly or synchronous use with machinery and equipment; raw materials and supplies used to manufacture machinery and equipment or to manufacture components, details, detachable parts and spare parts of machinery and equipment;

b) Specialised means of transport in the technological line directly used for the production activities of the project;

c) Construction materials that cannot yet be produced domestically.

The import duty exemption for imported goods under this Clause applies to both new investment projects and expansion investment projects.

12. Plant varieties; livestock breeds; fertilisers and plant protection drugs that cannot yet be produced domestically and need to be imported as prescribed by the competent state management agency.

13. Raw materials, supplies and components that cannot yet be produced domestically, imported for production of investment projects in the list of specially preferential investment sectors and trades or in areas with especially difficult socio-economic conditions under the law on investment, high-tech enterprises, science and technology enterprises and science and technology organisations, are exempt from import duty for 05 years from the start of production.

The import duty exemption under this Clause does not apply to mineral extraction investment projects; projects producing products in which the total value of natural resources and minerals plus energy cost accounts for 51% or more of the product cost; and projects producing and trading in goods and services subject to special consumption tax.

14. Raw materials, supplies and components that cannot yet be produced domestically, imported by investment projects to produce or assemble medical equipment prioritised for research and manufacture, are exempt from import duty for 05 years from the start of production.

15. Goods imported to serve oil and gas activities, including:

a) Machinery, equipment, spare parts and specialised means of transport necessary for oil and gas activities, including cases of temporary import for re-export;

b) Components, details, detachable parts and spare parts for synchronous assembly or synchronous use with machinery and equipment; raw materials and supplies used to manufacture machinery and equipment or to manufacture components, details, detachable parts and spare parts of machinery and equipment necessary for oil and gas activities;

c) Supplies necessary for oil and gas activities that cannot yet be produced domestically.

16. Shipbuilding projects and establishments in the list of preferential sectors and trades under the law on investment are exempt from duty on:

a) Goods imported to form fixed assets of the shipbuilding establishment, including: machinery and equipment; components, details, detachable parts and spare parts for synchronous assembly or synchronous use with machinery and equipment; raw materials and supplies used to manufacture machinery and equipment or to manufacture components, details, detachable parts and spare parts of machinery and equipment; means of transport in the technological line directly serving shipbuilding activities; construction materials that cannot yet be produced domestically;

b) Imported goods that are machinery, equipment, raw materials, supplies, components and semi-finished products that cannot yet be produced domestically, serving shipbuilding;

c) Exported seagoing vessels.

17. Machinery, equipment, raw materials, supplies, components, parts and spare parts imported to serve printing and minting of money.

18. Imported goods that are raw materials, supplies and components that cannot yet be produced domestically, directly serving the production of information technology products, digital content and software.

19. Goods exported and imported for environmental protection, including:

a) Specialised machinery, equipment, means, tools and supplies, imported because they cannot yet be produced domestically, for collecting, transporting, treating and processing wastewater, solid waste and exhaust gas, for environmental monitoring and analysis, for renewable energy production, for treating environmental pollution, and for responding to and handling environmental incidents;

b) Export products made from recycling and waste treatment activities.

20. Specialised imported goods that cannot yet be produced domestically, directly serving education.

21. Imported goods that are specialised machinery, equipment, spare parts and supplies that cannot yet be produced domestically, and specialised scientific documents and books and newspapers, directly used for scientific research, technology development, development of technology incubation and science and technology enterprise incubation, and technology innovation.

22. Specialised imported goods directly serving security and defence, in which specialised means of transport must be of a type that cannot yet be produced domestically.

23. Goods exported and imported to ensure social security, to remedy the consequences of natural calamities, disasters and epidemics, and in other special cases.

24. The Government shall detail this Article.

Article 17. Duty exemption procedures

1. In the cases specified in Clauses 11, 12, 13, 14, 15, 16 and 18, Article 16 of this Law, the duty payer shall notify the customs authority of the duty-exempt goods expected to be imported.

2. Duty exemption procedures comply with the law on tax administration.

Article 18. Duty reduction

1. Exported and imported goods under customs supervision that are damaged or lost, as certified by a competent appraisal agency or organisation, are entitled to duty reduction.

The duty reduction corresponds to the actual loss rate of the goods. Where exported or imported goods are entirely damaged or lost, no duty is payable.

2. Duty reduction procedures comply with the law on tax administration.

Article 19. Duty refund

1. Cases of duty refund:

a) The duty payer has paid import duty or export duty but there are no imported or exported goods, or fewer goods are imported or exported than the goods on which duty has been paid;

b) The duty payer has paid export duty but the exported goods must be re-imported: export duty is refunded and import duty is not payable;

c) The duty payer has paid import duty but the imported goods must be re-exported: import duty is refunded and export duty is not payable;

d) The duty payer has paid duty on goods imported for production and business but has put them into the production of export goods and has exported the products;

dd) The duty payer has paid duty on machinery, equipment, tools and means of transport of organisations and individuals permitted to be temporarily imported for re-export, except where leased to carry out investment projects, construction, installation of works, or to serve production, upon re-export abroad or export into a non-tariff zone.

The refundable import duty amount is determined on the basis of the remaining usable value of the goods at the time of re-export, calculated by the period of use and stay in Vietnam. Where the goods have exhausted their usable value, the import duty paid is not refunded.

No refund is made where the refundable duty amount is below the minimum level prescribed by the Government.

2. Goods specified in Points a, b and c of Clause 1 of this Article are entitled to refund when they have not been used, processed or manufactured.

3. Duty refund procedures comply with the law on tax administration.

Chapter V

IMPLEMENTATION PROVISIONS

Article 20. Effect

1. This Law takes effect on 01 September 2016.

2. The Law on Export Duty and Import Duty No. 45/2005/QH11 ceases to be effective from the date this Law takes effect.

Article 21. Transitional provisions

1. Projects enjoying export duty and import duty incentives at a rate higher than the incentives prescribed in this Law shall continue to enjoy that rate for the remaining incentive period of the project; where the export duty and import duty incentives are lower than, or the project has not yet enjoyed, the incentives prescribed in this Law, the project shall enjoy the incentives prescribed in this Law for the remaining incentive period of the project.

2. Raw materials, supplies and components imported for producing export goods for which the products have not yet been exported, and goods traded by temporary import for re-export that have not yet been re-exported, under customs declarations registered with the customs authority before this Law takes effect and for which duty has not been paid, shall be subject to this Law.

Article 22. Detailed provisions

The Government shall detail the articles and clauses assigned in the Law.

This Law was passed on 06 April 2016 by the 13th National Assembly of the Socialist Republic of Vietnam at its 11th session.

EXPORT TARIFF ACCORDING TO THE LIST OF DUTIABLE COMMODITY GROUPS AND EXPORT DUTY RATE BRACKETS FOR EACH DUTIABLE COMMODITY GROUP

(Issued together with the Law on Export Duty and Import Duty No. 107/2016/QH13)