Circular Providing Guidelines For Implementation of Import and Export Duties

Subscription 56 (2/2004-2005) 30 June 2005
MINISTRY OF FINANCE SOCIALIST REPUBLIC OF VIETNAM

Independence - Freedom - Happiness
No. 87-2004-TT-BTC
Hanoi, 31 August 2004
CIRCULAR
PROVIDING GUIDELINES
FOR IMPLEMENTATION OF
IMPORT AND EXPORT DUTIES
Pursuant to the Law on Import and Export Duties dated 26 December 1991 and
the laws on amendment of and addition to the Law on Import and Export Duties
dated 5 July 1993 and 20 May 1998; Decree 54-CP of the Government dated 28
August 1993 and Decree 94-1998-ND-CP of the Government dated 17 November
1998 making detailed provisions for implementation of the Law on Import and
Export Duties and the laws on amendment of and addition to the Law on Import
and Export Duties;
Pursuant to Decree 101-2001-ND-CP of the Government dated 31 December

2001 making detailed provisions for implementation of a number of articles of
the Law on Customs with respect to customs procedures, customs inspection and
control;
Pursuant to Decree 60-2002-ND-CP of the Government dated 6 June 2002 on

determination of dutiable value of imported goods in conformity with the
principles of the Agreement on Implementation of Article 7 of the General
Agreement on Tariffs and Trade;
Pursuant to Decree 57-1998-ND-CP of the Government dated 31 July 1998

making detailed provisions for implementation of the Commercial Law with
respect to importation, exportation, processing and sale and purchase agency
involving foreign parties and Decree 44-2001-ND-CP of the Government dated 2
August 2001 on amendment of and addition to a number of articles of Decree 57-
1998-ND-CP of the Government dated 31 July 1998;

providing detailed regulations on implementation of the Law on Foreign
Investment in Vietnam and Decree 27-2003-ND-CP of the Government dated 19
March 2003 on amendment of and addition to a number of articles of Decree 24-
2000-ND-CP dated 31 July 2000;

making detailed provisions for implementation of the Law on Promotion of
Domestic Investment (Amended) and Decree 35-2002-ND-CP of the Government
© Ministry of Planning and Investment

and
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dated 29 March 2002 amending and adding to Lists A, B and C in the Appendix
attached to Decree 51-1999-ND-CP of the Government dated 8 July 1999;
Pursuant to Decree 66-2002-ND-CP of the Government dated 1 July 2002 on

quantities of duty-free baggage of persons exiting and entering Vietnam and
quantities of gifts and donations entitled to duty exemption;
The Ministry of Finance hereby provides the following guidelines for

implementation of import and export duties:
A. SCOPE OF APPLICATION
I. Dutiable goods and taxpayers
1. Dutiable goods:
All goods permitted to be exported or imported as stipulated in article 1 of

Decree 54-CP of the Government dated 28 August 1993 shall be subject to
export and import duties; except as provided for in Section II of Part A of
this Circular.
2. Taxpayers:
Organizations and individuals importing or exporting, or undertaking the

authorization of a principal to import or export, goods which are subject to
export or import duties as stipulated in clause 1 of Section I of Part A of
this Circular shall pay export or import duties.
II. Goods which are not subject to export and import duties
Imported or exported goods which are not subject to export and import duties
upon completion of all customs procedures shall include the following:
1. Goods in transit or goods transported on roads which cross the territory of

Vietnam.
2. Goods in transit for the purpose of business.
3. Goods imported from foreign countries into export processing zones,

export processing enterprises, bonded warehouses or customs bond
warehouses; goods exported from export processing zones, export
processing enterprises, bonded warehouses or customs bond warehouses to
foreign countries; goods transported from export processing zones, export
processing enterprises, bonded warehouses or customs bond warehouses to
other export processing zones, export processing enterprises, bonded
warehouses or customs bond warehouses within the territory of Vietnam;

and
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goods imported into or exported from areas entitled to duty exemption as

stipulated by the Government.
4. Goods categorized as humanitarian aid.
B. BASES FOR CALCULATION OF DUTY

The bases for calculating export and import duties payable are the quantity of
goods, the dutiable value and the duty rate applicable to the item of imported or
exported goods.
I. Quantity of imported or exported goods
The quantity of imported or exported goods used as the basis for calculating
duties shall be the quantity of each item of goods actually imported or exported.
II. Dutiable value, exchange rate used to calculate duties and currency for
duty payment
1. Dutiable value shall be calculated in Vietnamese Dong and determined as

follows:
1.1 With respect to goods imported or exported pursuant to a contract

for sale and purchase of goods:
1.1.1 In respect of exports: the selling price for the customer at the
exporting bordergate (FOB), excluding insurance costs (I)
and transportation costs (F). The basis for determining the
selling price for the customer shall be the contract for sale
and purchase of goods containing all principal contents of a
contract as stipulated in the Commercial Law which
conforms with lawful and proper documents relating to the
purchase or sale of goods;
1.1.2 In respect of imports:
1.1.2.1 With respect to goods which are imported under a

contract for sale and purchase of goods and are
subject to Circular 118-2003-TT-BTC of the
Ministry of Finance dated 8 December 2003
providing guidelines on Decree 60-2002-ND-CP of
the Government dated 6 June 2002 on
determination of dutiable value of imported goods
in conformity with the principles of the Agreement
on Implementation of Article 7 of the General
Agreement on Tariffs and Trade, the dutiable value
shall be determined in accordance with the

and
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guidelines provided in Circular 118-2003-TT-BTC

above.
1.1.2.2 With respect to goods which are imported under a

contract for sale and purchase of goods but are not
subject to Circular 118-2003-TT-BTC of the
Ministry of Finance dated 8 December 2003, the
dutiable value shall be the actual price payable
which the purchaser has paid or will pay to the
seller for imports. The General Department of
Customs shall provide specific guidelines on
determination of dutiable value referred to in this
paragraph.
1.1.2.3 A number of special cases shall be subject to the

following further guidelines:
1.1.2.3.1 In respect of leased machinery,

equipment and means of transportation,
the dutiable price shall be the rent of
machinery, equipment and means of
transportation actually paid under the
signed contract with the foreign party
and conforming with the lawful and
proper documents relating to the lease of
machinery, equipment and means of
transportation.
1.1.2.3.2 In respect of machinery, equipment and

means of transportation exported to a
foreign country for repair, upon re-
import into Vietnam, the dutiable value
shall be the cost of repair actually paid
under the signed contract with the
foreign party and conforming with the
lawful and proper documents relating to
the repair of machinery, equipment and
means of transportation.
Where the rent actually paid or cost of

repair actually paid as referred to in
clauses 1.1.2.3.1 and 1.1.2.3.2 above
excludes transportation costs (F) and
insurance costs (I), the transportation
costs and insurance costs shall be
included in order to determine the
dutiable value. Where enterprises
operating in Vietnam provide insurance
services and cargo transport services for

and
the imports, the dutiable value shall

exclude value added tax payable on
insurance costs (I) and transportation
costs (F).
1.1.2.3.3 In respect of imports including goods

under warranty as stipulated in a contract
for sale and purchase of goods (including
goods for delivery at a later time), where
the payment for the goods under
warranty is not separately calculated in
the price stipulated in the contract for
sale and purchase of goods, the dutiable
value shall be the value in the contract,
inclusive of the value of the goods under
warranty.
1.1.2.3.4 Where imported goods are entitled to

duty exemption or temporary duty
exemption and have been used in
Vietnam but subsequently duties are
payable because the authorized State
body permits their assignment or change
of their previous purpose for which duty
was exempted or temporarily exempted,
the dutiable value shall be determined on
the basis of the remaining value of the
goods which is calculated on the basis of
the period of use and stay in Vietnam
(calculated from the date of import to the
date of calculation of duties) and shall be
calculated as follows:
• Upon import, such goods are brand-

new (they have not yet been used):
Period of use and Dutiable value
stay in Vietnam equal to (%) of
price of brand-
new goods at
time of
calculation of
duties
Six months or less 90%
(rounded up to 183
days)
Over six months up 80%
to one year (rounded
up to 365 days)
Over one year up to 70%
two years

and
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Over two years up to 60%

three years
Over three years up 50%
to five years
Over five years 40%
• Upon import, such goods are used

goods:
Period of use and Dutiable value
stay in Vietnam equal to (%) of
price of brand-
new goods at
time of
calculation of
duties
Six months or less 60%
Over six months up 50%
to one year
Over one year up to 40%
two years
Over two years up to 35%
three years
Over three years up 30%
to five years
Over five years 20%
1.2 Where goods are imported or exported without a contract for sale
or purchase of goods or where the contract does not comply with
the provisions of the Commercial Law, the dutiable price shall be
as provided by the local Customs Departments. The General
Department of Customs shall provide specific guidelines on
methods of determining dutiable value on the principle of
compliance with the market price in transactions in order to prevent
trade fraud by way of prices.
2. Exchange rate used to calculate duties:
The exchange rate used as the basis for determining the dutiable value in
respect of imported or exported goods shall be the average inter-bank rate
quoted by the State Bank of Vietnam in the daily People's Newspaper. On
days when the daily People's Newspaper is not published (or is published
but does not display such rate) or such information is not able to reach the
bordergate during the day, the exchange rate used to calculate duties shall
be the exchange rate used to calculate duties on the preceding day.
In respect of foreign currencies for which no transaction is conducted on

the foreign currency inter-bank market, it shall be determined on the basis
of the foreign currency cross-rate between the average inter-bank rate of
the United States dollar for Vietnamese dong and the rate of the United

and
States dollar for other foreign currencies on the international market

quoted by the State Bank of Vietnam.
3. Currency used to pay duties:
Import and export duties shall be paid in Vietnamese dong. Taxpayers

wishing to pay duties in foreign currency shall pay duties in a freely
convertible foreign currency as published by the State Bank of Vietnam.
III. Duty tariff
1. Export duty rates:
The specific export duty rate applicable to each item of goods shall be
provided for in the export tariff.
2. Import duty rates:
Import duty rates shall comprise the preferential rate, the special
preferential rate and the standard rate which are provided for as follows:
2.1 The preferential duty rate is the duty rate applicable to imports
originating from countries or groups of countries which have
signed an agreement with Vietnam on "Most Favoured Nation"
status in trade relations. The preferential duty rate is specified for
each item of goods listed in the preferential import tariff.
Conditions for application of the preferential duty rate:
• Imports must be supported by a Certificate of Origin (C/O)

from a country or a group of countries which has signed an
agreement with Vietnam on "Most Favoured Nation" status in
trade relations. That country or group of countries must be
included in the list of countries or groups of countries which
have signed an agreement on "Most Favoured Nation" status
in trade relations with Vietnam published by the Ministry of
Trade.
• The Certificate of Origin of goods must comply with the

applicable laws.
2.2 The special preferential duty rate is the duty rate applicable to
imports originating from countries or groups of countries which
have signed an agreement with Vietnam on special preferential
import duties on the basis of free trade regions or customs duties
unions or for the purpose of creating favourable conditions for
border trade relations and in other special preferential cases. The

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special preferential duty rate shall be specified for each specific

item of goods under the agreement.
Conditions for application of the special preferential duty rate:
• Imports must be supported by a Certificate of Origin (C/O)

from a country or a group of countries which has signed an
agreement with Vietnam on special preferential import duties.
The Certificate of Origin of goods must comply with the
applicable laws.
• Imports must be goods which are specified in the list of goods

entitled to the special preferential duty rate in respect of each
country or group of countries published by the Government or
bodies under authorization of the Government.
• Other conditions (if any) for application of the special

preferential duty rate shall be subject to the specific provisions
of legal instruments providing separate guidelines for each
country or group of countries with which Vietnam has an
undertaking on special preferential import duties.
In the case of failure to produce a Certificate of Origin (C/O) as

stipulated upon performance of the customs procedures, the
customs office shall calculate duties at the preferential duty rate or
special preferential duty rate under the undertaking and declaration
of the taxpayer. Within a period of sixty (60) days from the date of
registration of the declaration for imported goods, the taxpayer
must produce a Certificate of Origin as stipulated to the customs
office. Where the taxpayer fails to produce a Certificate of Origin
(C/O) as stipulated, the customs office shall re-calculate duties and
penalize the breach in accordance with applicable regulations.
2.3 The standard duty rate is the duty rate applicable to imports
originating from countries which have not signed an agreement
with Vietnam on "Most Favoured Nation" status or special
preferential import duties.
The standard duty rate shall be fifty (50) per cent higher than the
preferential duty rate for each item of goods provided for in the
preferential import tariff and shall be calculated as follows:
Standard duty rate = Preferential duty rate + (Preferential duty rate x 50%)
2.4 In several cases, imported goods shall be subject to an additional

duty (in accordance with article 1 of the Law on Amendment of and
Addition to a Number of Articles of the Law on Import and Export
Duties dated 20 May 1998).

and
Additional duties, duty rates subject to quota of customs duties, and

absolute duties shall be subject to a legal instrument providing
separate guidelines.
C. REGISTRATION AND DECLARATION FOR

IMPORTED OR EXPORTED GOODS AND
PAYMENT OF DUTY
I. Declaration for imported or exported goods
Organizations and individuals with imported or exported goods shall declare fully
and accurately information stipulated by law, submit declarations for imported or
exported goods, and submit or produce related documents to the customs office
which performs the procedures for import or export of goods.
II. Time of calculation of duty and time-limit for notification of duty
1. The time of calculation of import or export duties shall be the date on

which a taxpayer submits a declaration for imported or exported goods at
the customs office in accordance with the Law on Customs. Where a
taxpayer makes an electronic declaration, the time of calculation of duties
shall be the date on which the customs office issues a serial number for the
automatic declaration from its system (hereinafter referred to as the date of
registration of the declaration for imported or exported goods).
Import or export duties shall be calculated on the basis of the duty rate, the
dutiable value and the exchange rate used to calculate duties on the date of
registration of the declaration for imported or exported goods. Where no
goods are actually imported or exported within fifteen (15) days from the
date of registration of the declaration for imported or exported goods, the
declaration for imported or exported goods which has been registered shall
no longer be valid for performing the customs procedures for import or
export of the goods. Upon actual import or export of goods, the taxpayer
shall re-perform the procedures for declaration and registration of the
declaration for imported or exported goods. The time of calculation of
duties shall be the date on which the declaration is re-registered.
Where a taxpayer makes a declaration prior to the date of registration of

the declaration for imported or exported goods, the exchange rate used to
calculate duties shall be applied on the basis of the exchange rate at the
date on which the taxpayer made the declaration but such date must fall
within three days immediately preceding the date of registration of the
declaration for imported or exported goods.

and
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2. The time-limit for duty notification shall be provided for as follows:
Within eight working hours of the registration of a declaration for

imported or exported goods by the taxpayer, the customs office shall
notify the taxpayer of the amount of duties payable.
Where an inspection in terms of technical specifications, quality standards,

quantity or type is required for the purpose of ensuring the accuracy of
duty calculation (such as determination of names of items of goods, tax
codes pursuant to the tariff, quality, quantity, technical specifications,
whether the imported goods are brand-new or second-hand, and so forth),
the customs office shall notify the taxpayer of the amount of duties
payable on the basis of its declaration within eight working hours of the
registration of the declaration for imported or exported goods by the
taxpayer; at the same time as notifying the taxpayer of the reasons for
inspection and that, if the result of inspection is different from the
declaration of the taxpayer resulting in a change of the amount of duties
payable, the taxpayer shall be liable to pay duties in accordance with the
result of inspection.
Upon obtaining the result of inspection, if there is any change of the

amount of duties payable, the customs office shall issue a notice to adjust
the original notice within eight working hours of the receipt of the result of
inspection. Any expenses relating to the inspection shall be borne by the
customs office in the case where the customs office requests the inspection
or by the taxpayer in the case where the taxpayer requests the inspection.
III. Time-limit for payment of import and export duties
1. In respect of exported goods, fifteen (15) days from the date on which the
taxpayer receives the duty notice of the amount payable from the customs
office.
2. In respect of goods being supplies and raw materials imported for direct
production of goods for export, nine months (rounded to two hundred and
seventy five (275) days) from the date on which the taxpayer receives the
duty notice of the amount payable from the customs office.
2.1 Requirements for application of the time-limit of nine months for

payment of duties in respect of supplies and raw materials imported
for direct production of goods for export shall be as follows:
• The registration of supplies and raw materials imported for

direct production of goods for export;
• The taxpayer does not have any overdue debts of duties (at the
time of import) in accordance with the Law on Import and
Export Duties; except for cases of overdue debts of duties

and
payable on the consignments of supplies and raw materials

imported for direct production of goods for export in which
products have been actually exported and the taxpayer has
submitted a complete application file for a refund of duties
within a stipulated period (including cases where the customs
office has not yet performed the procedures for tax
finalization).
Based on the documentation as stipulated, the customs office

performing the import procedures shall notify the taxpayer of the
time-limit of nine months for payment of duties at the same time as
monitoring the debt of duties of the taxpayer for the purpose of tax
finalization upon actual export of products.
In special cases where the cycle of production or storage of

supplies and raw materials of enterprises is longer than nine
months, such as shipbuilding and manufacture of machinery or
mechanical equipment, the time-limit for payment of duties may be
longer than nine months. The taxpayer shall submit an explanatory
statement to the local Customs Department for consideration and
decision on a case-by-case basis.
2.2 A taxpayer must carry out the procedures for tax finalization for the
debt of duties with the customs office no later than the expiry of the
time-limit for payment of duties being nine months or longer.
Where the taxpayer exports goods after the deadline for payment of
duties or fails to export goods under the contract for export of
goods which has been registered with the customs office, it shall be
subject to fines for late payment of duties which are provided for as
follows:
• With respect to the share of imported raw materials and

supplies used for production of products under a contract for
export of goods which has been registered with the customs
office where the products have not yet been exported, a fine
for late payment of duties shall be calculated from the thirty
first day from the date of receipt of the duty notice from the
customs office to the date of actual payment of duties.
• With respect to the share of imported raw materials and

supplies which have been used for production of products
which are actually exported after the deadline for payment of
duties, a fine for late payment of duties shall be calculated
from the date after the deadline for payment of duties stated in
the duty notice from the customs office to the date of actual
payment of duties.

and
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Where a taxpayer is entitled to the time-limit for payment of duties

being nine months or longer but fails to export goods or actually
exports goods after the deadline for payment of duties, such
taxpayer must pay duties (in the case of export of goods after the
deadline for payment of duties, must pay duties upon expiry of the
applicable time-limit for payment of duties and shall be entitled to
refund of the paid amount of duties upon actual export of products)
and shall be subject to a fine referred to above. In addition, it shall
also be subject to penalties for administrative offences in relation to
taxation in accordance with applicable regulations.
The taxpayer shall not enjoy the time-limit of nine months (or
longer) for duty payment in respect of subsequent consignments of
goods if it has any debt of duties, debt of fine for late payment and
debt of fine for an administrative offence; upon full payment of
duties, fines for late payment and fines for administrative offence
stated in the notices from the duty collecting body, it shall continue
to enjoy the time-limit of nine months (or longer) for duty payment
in respect of subsequent consignments of raw materials and supplies
imported for direct production of goods for export.
3. In cases of goods temporarily exported for re-import or goods temporarily

imported for re-export, the time-limit for payment of duties shall be fifteen
(15) days from the date of expiry of the time-limit for temporary export for
re-import or temporary import for re-export (including any authorized
extension thereof) permitted by the authorized body in accordance with the
regulations of the Ministry of Trade.
4. In respect of consumer goods, import duties must be paid in full prior to

receipt of the goods (a list of consumer goods shall be provided by the
Ministry of Trade) except in the following specific cases:
4.1 In cases where the taxpayer has a guarantee in respect of the

amount of duties payable, the time-limit for payment of duties shall
be thirty (30) days from the date on which the taxpayer receives the
duty notice of the amount payable from the customs office
provided that:
• The guarantor must be a credit institution or another

organization authorized to conduct banking operations in
accordance with the provisions of the Law on Credit
Institutions and the Law on Amendment of and Addition to a
Number of Articles of the Law on Credit Institutions.
• The guarantee must specify the name of the guarantor, the

name of the enterprise being the principal, the guaranteed
amount of duties, the period of guarantee and the undertaking
of the guarantor.

and
Based on the written guarantee issued by the guarantor, the customs

office completing the import procedures shall notify the taxpayer of
the time-limit of thirty (30) days for payment of the guaranteed
amount of duties.
If the taxpayer fails to pay the import duties payable within the
time-limit for payment of duties stated in the duty notice of the
customs office, the customs office shall request the guarantor to
pay the amount of duties on behalf of the taxpayer to the State
Budget in accordance with the Law on Credit Institutions, the Law
on Amendment of and Addition to a Number of Articles of the Law
on Credit Institutions, and legal instruments providing guidelines
for implementation. At the same time, the guarantor shall also be
liable to pay a fine for late payment of duties calculated from the
date on which the taxpayer receives the duty notice of the amount
of duties payable from the custom office. If the guarantor fails to
pay the duties to the State Budget within the time-limit of ninety
(90) days for payment of duties, the customs office shall have the
right to request the body directly responsible for management of
the guarantor to freeze the account of the guarantor until collection
of the duties and fine in full.
4.2 In respect of consumer goods which are imported for direct use for
purposes of security, national defence, scientific research and
education and training and entitled to consideration for exemption
from import duties, the time-limit for payment of duties shall be
thirty (30) days from the date on which the taxpayer receives the
duty notice of the amount of duties payable from the customs
office.
4.3 Where imported goods are included in the list of consumer goods
provided by the Ministry of Trade but they are imported supplies
and raw materials to be used directly for production, the applicable
time-limit for payment of duties shall be thirty (30) days or two
hundred and seventy five (275) days (in the case of goods being
supplies and raw materials imported for direct production of goods
for export) from the date on which the taxpayer receives the duty
notice of the amount of duties payable from the customs office.
Based on the documentation, on the result of inspection of the
consignment of actually imported goods and the written
commitment of the taxpayer regarding direct utilization of imported
supplies and raw materials for production, the local customs
department shall issue a duty notice as stipulated. Where any fraud
is identified, in addition to a fine for late payment of duties on the
basis of the time-limit for payment of duties in respect of imported
consumer goods, the taxpayer shall be dealt with in accordance
with law.

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5. In respect of non-trade imports or exports and imports or exports of

residents in border areas, the taxpayers must pay duties in full prior to
import of goods into Vietnam or export of goods to a foreign country.
6. In respect of imported goods which are not subject to the time-limits for
payment of duties provided for in sub-clauses 2, 3, 4 and 5 above, the
time-limit for payment of duties shall be thirty (30) days from the date on
which the taxpayer receives the duty notice of the amount of duties
payable from the customs office.
7. Where imported goods are subject to different time-limits for payment of

duties, declarations for imported goods shall be made separately on the
basis of each time-limit for payment of duties.
8. Where imported or exported goods remain under the supervision of the

customs office but are temporarily withheld by the authorized State body
for investigation or dealing with, the time-limit for payment of duties in
respect of each type of goods shall be subject to the Law on Import and
Export Duties and shall be calculated from the date on which the
authorized State body issues a document to release the temporarily
withheld goods.
D. DUTY EXEMPTION, CONSIDERATION OF DUTY

EXEMPTION AND TAX REDUCTION
I. Duty exemption
Cases in which organizations or individuals importing or exporting goods are

exempted from payment of duties as provided for in article 12 of Decree 54-CP
dated 28 August 1993 of the Government shall include the following:
1. Goods which are non-refundable aid in accordance with an assistance

project or a treaty between the Vietnamese Government and foreign
organizations, a written assistance agreement or a notification of assistance
(including cases of goods which are non-refundable aid imported by the
winning tenderers for projects).
2. Goods which are temporarily imported for re-export or temporarily

exported for re-import for participation in trade fairs and exhibitions.
3. Goods which are moveable assets and entitled to duty exemption in

accordance with the following stipulations:
• In respect of moveable assets of foreign organizations or

individuals permitted to undertake business or work in Vietnam,
application shall be made in accordance with the guidelines
provided in Interministerial Circulars 04-TTLB dated 12 February
1996 and 04-BS-TTLB dated 20 October 1996 of the Ministry of
and
Trade, the Ministry of Foreign Affairs, the Ministry of Finance and

the General Department of Customs.
• In respect of moveable assets of Vietnamese organizations or

individuals which are permitted to be exported to a foreign country
for business and working purposes and brought back to Vietnam
upon expiry of the term, only assets which have been exported to a
foreign country and brought back to Vietnam shall be exempt from
duties.
• In respect of a number of consumer goods (such as used cars,

motorbikes, televisions sets, refrigerators, airconditioners and
sound systems) of Vietnamese or foreign individuals and their
families who are permitted to reside in Vietnam, each family (or
individual) shall be entitled to exemption from import duties in
respect of one item of each type.
4. In respect of imported or exported goods carried within the stipulated

quantity of duty-free baggage of individuals upon exit or entry through
bordergates of Vietnam, application shall be made in accordance with
Decree 66-2002-ND-CP of the Government dated 1 July 2002 on
quantities of duty-free baggage of persons exiting or entering Vietnam and
quantities of gifts and donations entitled to duty exemption.
5. In respect of imported or exported goods of foreign organizations and

individuals enjoying rights to privileges and immunities in Vietnam in
accordance with the law of Vietnam and in compliance with international
treaties to which Vietnam is a signatory or participant, application shall be
made in accordance with the Ordinance on Immunity and Privileges for
Diplomatic Representative Offices, Consulates and Representative Offices
of International Organizations in Vietnam and the guidelines provided in
Interministerial Circulars 04-TTLB dated 12 February 1996 and 04-BS-
TTLB dated 20 October 1996 of the Ministry of Trade, the Ministry of
Foreign Affairs, the Ministry of Finance and the General Department of
Customs.
6. In respect of goods imported or exported for processing for export to a

foreign party pursuant to a signed processing contract (processing
contracts shall be subject to Decree 57-1998-ND-CP of the Government
dated 31 July 1998 making detailed provisions for implementation of the
Commercial Law with respect to importation, exportation, processing and
sale and purchase agency involving foreign parties), the following goods
shall be exempted from duties:
• Raw materials imported for processing;
• Supplies used as part of the process of production or processing

(such as paper, chalk, brushes, tailor's chalk, pins, paint, clothes

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brushes, glue, priming brushes, and so forth) provided that the

enterprise must stipulate the levels of use;
• Goods as samples used for processing;
• Imported machinery and equipment used directly for processing as

agreed in the processing contract. Upon expiry of the processing
contract, re-export must occur; otherwise a declaration for payment
of duties must be made;
• Processed products exported (if such products are subject to export

duties);
• Faulty products and scraps which are destroyed under the

supervision of the customs office;
• Finished products supplied by the supplier which are attached to

processed products or put into packages together with processed
products to constitute complete goods for export to a foreign
country shall be exempt from duties as raw materials and supplies
imported for processing if they satisfy the following requirements:
(i) they are stated in the processing contract or addendum to the
processing contract; (ii) the level of such finished products is
included in the list of levels of use of imported supplies and raw
materials for the purpose of processing; (iii) they are managed as
supplies and raw materials imported for processing.
Directors of processors shall be responsible for utilization of imported raw

materials and supplies in accordance with the purpose of processing;
actual levels of consumption of imported raw materials and supplies for
processing. Any breach shall be dealt with in accordance with law.
Imported machinery, equipment, raw materials, supplies and processed

products used by the foreign party as payment of processing fees shall be
subject to payment of import duties.
The process of management and customs clearance in respect of imported

raw materials and supplies for processing of products for export shall be
subject to a separate legal instrument issued by the Ministry of Finance in
relation to customs procedures for imported goods pursuant to processing
contracts with foreign parties.
7. Machinery, equipment and means of transportation brought by foreign

contractors into Vietnam by way of temporary import for re-export for
construction of works and projects funded by Official Development Aid
(ODA) shall be exempted from import duties and export duties upon re-
export. Upon expiry of the period of construction of the works or projects,
the foreign contractor must re-export the above goods. Where re-export
does not occur, any liquidation or disposal in Vietnam must be subject to

and
the permission from the authorized State body and a declaration for
payment of import duties must be made as stipulated.
Automobiles of twenty four (24) seats and automobiles designed for

transporting both people and cargo being equivalent to automobiles of
twenty four (24) seats are not able to be imported temporarily for re-
export. Foreign contractors wishing to import into Vietnam for use shall
be liable to pay import duties as stipulated. Upon completion of the
construction of the works, the foreign contract must re-export such
imported automobiles to a foreign country and shall be refunded the
amount of import duties paid. The rate of refund of duty and procedures
for refund of duty shall be subject to the provisions in clause 1.11 of
Section I of Part E of this Circular.
The local customs departments shall, on the basis of the above provisions, deal
with duty exemption on a case-by-case basis. When dealing with duty exemption
in the cases referred to in clauses 1, 2, 3, 5 and 7, the customs office must issue a
decision on duty exemption and retain documentation as stipulated. On the basis
of the decision on duty exemption, the customs office shall carry out customs
clearance in respect of the amount of import duties exempted and state clearly in
the customs declaration for imported or exported goods: Item class of goods
exempted from payment of duties in accordance with Decision ... of ... dated ....
II. Consideration of duty exemption
Organizations or individuals importing or exporting goods in cases which are

exempted from payment of duties must submit the following documents as
stipulated:
1. Goods which are imported for specialized use for purposes of security,
national defence, scientific research and education and training:
1.1 Goods which are imported for specialized use for purposes of
security and national defence:
• Official letter of the line ministry requesting a duty

exemption;
• Detailed list of the item class and quantity of goods to be

imported for specialized use for purposes of security or
national defence which has been approved by the head of the
line ministry after being registered and mutually agreed with
the Ministry of Finance at the beginning of the relevant year
(no later than the thirty first day of March every year, the line
ministry must register a plan for import);
• Customs declaration for imported goods for which customs

procedures are completed;

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• Duty notice from the customs office;
• Import contract or contract for import authorization (in the

case of goods imported by authorized dealers) or notification
of award attached to a contract for supply of goods (in the
case of goods imported by way of tender, the price for
payment shall exclude import duties).
1.2 Goods which are imported for specialized use for scientific
research:
• Official letter of the entity undertaking the scientific research

program requesting a duty exemption;
• Documents relating to the scientific research program

consisting of:
- Decision of approval of the program issued by the

authorized State body;
- List of goods to be imported for implementation of the

program approved by the authority approving the
program;
• Customs declaration for imported goods for which customs

procedures are completed;

1.3 Goods which are imported for specialized use in education and
training:
• Official letter of the entity undertaking the education and

training work requesting a duty exemption;
• Decision on approval of the project of investment in

equipment and supplies for education and training issued by
the authorized State body;
• List of equipment and supplies for the project approved by the

authority approving the project;
• Customs declaration for imported goods for which the

customs procedures are completed;

and

Based on the documents as stipulated, the General Department of

Customs shall consider and determine any duty exemption for cases
stipulated in clause 1.1; local customs departments shall consider
and determine any duty exemption for cases stipulated in clauses
1.2 and 1.3. The customs office completing the import procedures
shall, on the basis of the decision of the General Department of
Customs or the local customs department on duty exemption, carry
out the inspection and verification on the basis of the original
documents of the consignment of imported goods in order to
conduct customs clearance in respect of the amount of import
duties exempted and state clearly in the customs declaration for
imported goods: Item class of goods exempted from payment of
duties in accordance with Decision ... of ... dated .….
2. Imported goods of enterprises with foreign owned capital and foreign

parties to business co-operation contracts under the Law on Foreign
Investment in Vietnam shall be subject to the provisions of Decree 24-
2000-ND-CP of the Government dated 31 July 2000 providing detailed
regulations on implementation of the Law on Foreign Investment in
Vietnam and Decree 27-2003-ND-CP of the Government dated 19 March
2003 on amendment of and addition to a number of articles of Decree 24-
2000-ND-CP dated 31 July 2000 and applicable legal instruments
providing guidelines.
Where an enterprise is entitled to exemption from import duties and does

not import goods from foreign countries but purchases goods which have
been exempt from import duties from enterprises with foreign owned
capital or foreign parties to business co-operation contracts which are
allowed to so assign in Vietnam, such enterprise shall be allowed to
receive such goods to form its fixed assets which shall be exempt from
import duties in accordance with the Law on Foreign Investment in
Vietnam and applicable legal instruments providing guidelines; at the same
time, the enterprises which are allowed to assign such goods shall not be
subject to re-collection of import duties. These goods must be deducted
(in terms of quantity and value) from the list of goods entitled to duty
exemption of the enterprise approved by the authorized State body.
3. Imported goods of domestic investors under the Law on Promotion of

Domestic Investment (Amended) shall be subject to the provisions of
Decree 51-1999-ND-CP of the Government dated 8 July 1999 making

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detailed provisions for implementation of the Law on Promotion of

Domestic Investment (Amended) and Decree 35-2002-ND-CP of the
Government dated 29 March 2002 amending and adding to Lists A, B and
C in the Appendix attached to Decree 51-1999-ND-CP dated 8 July 1999
and applicable legal instruments providing guidelines.
Where an enterprise is entitled to exemption from import duties and does

not import goods from foreign countries but purchases goods which have
been exempt from import duties from domestic enterprises which are
allowed to so assign in Vietnam, such enterprise shall be allowed to
receive such goods to form its fixed assets which shall be exempt from
import duties in accordance with the Law on Promotion of Domestic
Investment (Amended) and applicable legal instruments providing
guidelines; at the same time, the enterprises which are allowed to assign
goods shall not be subject to re-collection of import duties. These goods
must be deducted (in terms of quantity and value) from the list of goods
entitled to duty exemption of the enterprise approved by the authorized
State body.
4. With respect to goods being gifts or donations:
Goods being gifts or donations entitled to duty exemption are goods which
are allowed to be exported or imported, including the following specific
cases and quantities of gifts entitled to duty exemption:
4.1 With respect to exported goods:
• Goods being gifts or donations of organizations and

individuals which are allowed to be exported from Vietnam to
organizations or individuals overseas;
• Goods of foreign individuals or organizations which are gifts

or donations from Vietnamese organizations or individuals
during a business trip, tour or visit to relatives in Vietnam and
are allowed to be exported to a foreign country;
• Goods of Vietnamese organizations which are allowed to be

exported to a foreign country for participation in fairs or
exhibitions or for the purpose of advertising; and which
thereafter will be used as gifts or donations to organizations or
individuals overseas;
• With respect to organizations and individuals being sent by

the State to go on a business trip or study overseas or
Vietnamese individuals who go on a tour overseas, in addition
to the quantity of baggage of individuals upon exit, if they
bring goods to be used as gifts or donations to foreign
organizations or individuals, they shall also be entitled to the

and
quantities of gifts or donations which are exempt from export

duties.
Quantities of goods being gifts or donations entitled to exemption

from export duties: the value of the goods package shall not exceed
thirty (30) million Vietnamese dong in the case of organizations
and one million Vietnamese dong in the case of individuals.
4.2 With respect to imported goods:
4.2.1 Goods being gifts or donations from organizations and

individuals overseas to Vietnamese organizations with a
value of thirty (30) million Vietnamese dong or less shall be
entitled to duty exemption.
4.2.2 Goods being gifts or donations from organizations and

individuals overseas to Vietnamese individuals with a value
of one million Vietnamese dong or less or a value of over
one million Vietnamese dong but total amount of duties
payable is less than fifty thousand (50,000) Vietnamese
dong shall be entitled to duty exemption. Where goods
being gifts are sent to a recipient being an individual but in
practice are gifts to an organization (with a written
certification by such organization) and such goods are
managed and used by such organization, the value limit
entitled to duty exemption shall be subject to the value limit
of goods being gifts or donations from foreign organizations
or individuals to Vietnamese organizations.
4.2.3 Goods of foreign organizations or individuals which are

allowed to be imported temporarily into Vietnam for
participation in fairs or exhibitions or imported into Vietnam
as sample goods or for advertising and which subsequently
are not re-exported but are used as gifts, donations or
souvenirs to Vietnam organizations or individuals shall be
entitled to duty exemption in the following specific cases:
• Goods used as gifts or souvenirs to visitors to the fair

or exhibition having a low value of fifty thousand
(50,000) Vietnamese dong or less per gift and the total
value of the goods package used as gifts does not
exceed ten (10) million Vietnamese dong;
• Goods being a single item of equipment or separate

products, such as gifts or donations from the owner to
domestic organizations to be used as samples for
research or production, irrespective of whether their
value is high or low.

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4.2.4 Goods of foreign organizations or individuals which are

allowed to be imported into Vietnam for the purpose of use
as prizes for sport, cultural or art competitions shall be
entitled to duty exemption in the case where the goods to be
used as prizes have a value of two million Vietnamese dong
or less per prize (for individuals) and thirty (30) million
Vietnamese dong per prize (for organizations) and the total
value of the consignment of imported goods used as prizes
does not exceed the total value of prizes in kind.
4.2.5 With respect to foreign individuals who are allowed to enter

Vietnam, in addition to the quantity of baggage of
individuals, goods brought with them being gifts, donations
or souvenirs to Vietnamese organizations or individuals and
having a value of one million Vietnamese dong or less shall
be entitled to duty exemption.
4.2.6 With respect to goods of subjects which are temporarily

exempted from duties and are not re-exported but are used
as gifts or donations to Vietnamese organizations and
individuals with permission of the authorized State body, the
limit of goods being gifts or donations entitled to duty
exemption shall not exceed thirty (30) million Vietnamese
dong in the case of organizations and one million
Vietnamese dong in the case of individuals.
4.2.7 Sample goods sent from foreign organizations or individuals

to Vietnamese organizations or individuals and vice versa
shall be subject to the limit of goods being gifts or donations
entitled to duty exemption that shall not exceed thirty (30)
million Vietnamese dong in the case of organizations and
one million Vietnamese dong in the case of individuals.
4.3 With respect to goods being gifts or donations the value of which
exceeds the limit entitled to duty exemption in accordance with the
above provisions, a duty payment shall be made in respect of the
excessive value, except in the following cases where the whole of
the value of the consignment of goods shall be entitled to duty
exemption:
4.3.1 Where recipients of gifts or donations are administrative

bodies or social mass organizations having their budget for
operations provided from the State Budget and being
allowed by their superior authority to so receive for use, the
duty exemption shall be considered on a case-by-case basis.
In this case, the entity must account for an increase in its
asset funded by the State Budget, including duties and value

and
of the consignment of gifts and must manage and use them

in accordance with applicable regulations on management of
assets funded from the State Budget.
4.3.2 Consignments of gifts of a humanitarian or charitable nature

or for the purposes of scientific research.
4.3.3 Curative medicines sent by Vietnamese residing in foreign

countries to their relatives in Vietnam being families who
have rendered services to the Revolution, families of fallen
combatants or war invalids and old persons with no family
support as certified by the local government.
4.4 Value of goods being gifts or donations shall be determined as

follows:
4.4.1 With respect to exported goods: being the value stated in the
invoice in accordance with applicable regulations. Where
there is no invoice, the local customs department shall
determine a value of goods on the basis of the declaration of
the sender in conformity with the market value in
transactions.
4.4.2 With respect to imported goods: being the value of imported

goods excluding import duties which is determined in
accordance with the guidelines provided in Part B of this
Circular.
4.5 Procedures and documents for duty exemption:
Procedures and documents for duty exemption in respect of goods

being gifts, donations and samples shall include the following:
• Official letter of an organization or individual requesting a

duty exemption;
• Notification, decision or agreement for donation of goods;

notification or agreement for delivery of samples;
• Customs declaration for imported or exported goods for which

the customs procedures are completed;
• Written certification of the local government (in the case

stipulated in clause 4.3.3 above).
Where an enterprise engaged in forwarding and transportation undertakes

the transportation and carries out the customs procedures for goods being

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gifts, donations or samples, in addition to the above procedures and

documents, it shall be required to obtain a letter of attorney from the
organization or individual being the recipient of gifts, donations or
samples to transport and carry out customs procedures.
Where goods of subjects are temporarily exempted from duties and are not
re-exported but are used as gifts or donations to Vietnamese organizations
and individuals with permission of the authorized State body, the
procedures and documents for duty exemption shall include (i) official
letter requesting a duty exemption; (ii) invoice or ex-warehouse order for
the consignment of gifts; (iii) minutes of delivery of the consignment of
gifts between the donor and donee.
On the basis of the documents and the provisions referred to above, local
customs departments shall consider and issue a decision on duty
exemption in respect of consignments of goods being gifts from foreign
organizations and individuals to Vietnamese individuals and vice versa.
The General Department of Customs shall consider and deal with the cases
stipulated in clauses 4.3.1 and 4.3.2 above.
The customs office performing the procedures for import of goods shall,
on the basis of the decision on duty exemption, carry out customs
clearance in respect of the amount of import duties exempted and state
clearly in the customs declaration for imported or exported goods: Item
class of goods exempted from payment of duties in accordance with
Decision ... of …. dated .…..
5. With respect to goods imported for sale at duty-free shops: goods imported
for sale at duty-free shops shall be subject to the control of the customs
office in accordance with the regime of control and supervision of goods
imported for sale as duty-free goods provided for in the Regulations on
Duty-Free Shops issued with Decision 205-1998-QD-TTg dated 19
October 1998 and Decision 206-2003-QD-TTG dated 7 October 2003 of
the Prime Minister of the Government.
Where the foreign party supplies goods for trade promotion or trial
without charge to duty-free shops for sale together with goods sold at such
duty-free shops, the above goods for trade promotion or trial shall not be
subject to import duties. The goods for trade promotion or trial shall be
subject to the supervision and control of the customs office in the same
manner as goods imported for sale at duty-free shops.
Local customs departments shall implement duty exemption and control

duty-free goods as stipulated in this sub-clause.

and
III. Consideration of duty reduction
In respect of imported goods which are damaged or lost for valid reasons in the
process of transportation, loading or unloading (provided that the goods are still
under the supervision and control of the customs office in accordance with the
Law on Customs and legal instruments providing guidelines for implementation
of the Law on Customs), the local customs department shall, on the basis of the
level of damage or loss which has been appraised and related documents,
consider and issue a decision on a duty reduction.
E. REFUND OF DUTY AND RE-COLLECTION OF DUTY

I. Refund of duty
1. Cases entitled to refund of duty:
In respect of cases in which duties have already been paid and which are
entitled to refund of duty as stipulated in article 16 of Decree 54-CP of the
Government dated 28 August 1993, organizations and individuals must
submit all of the following documents:
1.1 In respect of imported goods for which duties have already been
paid and which remain in storage in the bordergate area under the
supervision of the customs office, but which are now permitted to
be re-exported, the following documents shall be required:
• Official letter requesting a refund of import duties paid;
• Customs declarations for imported goods for which the

customs office has calculated duties;
• Customs declarations for exported goods for which customs

procedures are completed, with confirmation from the
customs office that the goods which were stated in the
particular customs declaration for imported goods and remain
in storage in the bordergate area or under the supervision of
the customs office are actually exported;
• Duty notice, receipts for payment of duties.
1.2 In respect of exported goods for which duties have already been
paid but which are no longer to be exported, the following
documents shall be required:
• Official letter requesting a refund of export duties paid;
• Customs declarations for exported goods with confirmation

from the customs office that goods are no longer to be
exported;

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• Duty notice, receipts for payment of duties.
1.3 In respect of goods for which import or export duties have already
been paid but a lesser amount of goods is actually imported or
exported, the following documents shall be required:
• Official letter requesting a refund of the excess amount of

import or export duties paid;

the customs procedures are completed;
• Duty notice, receipts for payment of duties;
• Invoices for sale or purchase of goods under a contract for

purchase and sale of goods.
1.4 In respect of imported goods which are inconsistent in quality,

specifications or type with the signed contract for purchase and sale
of goods with an overseas sender due to the fault of the overseas
sender as verified in writing by evaluation of an authorized State
body and confirmed by the overseas sender, local customs
departments shall, on the basis of results of inspection of actually
imported goods and the State regulations currently in force,
consider and permit the importation of goods or compel re-export
of goods, at the same time as re-calculating the amount of import
duties payable for the purpose of proper collection of duties in
respect of the goods actually imported in the case where there is a
change in duty rates and dutiable value. Where an enterprise has
paid import duties but the amount of duties paid exceeds the
amount payable in respect of the goods actually imported as re-
calculated by the customs office, the excessive amount of duties
shall be refunded to the enterprise.
The application file for a refund of duties shall include the

following:
• Official letter requesting a refund of the excessive amount of

import duties paid;
• Results of evaluation of imported goods by the authorized

State body;
• Confirmation by the overseas sender of the delivery of goods

inconsistent with the contract;
• Customs declaration for imported goods, specifying the

results of inspection, and other documents relating to the
import of the consignment of goods;
and
• Duty notice, receipts for payment of duties;
• Source document for payment made through a bank for the

consignment of imported goods.
1.5 In the case of errors in a declaration (made by either taxpayers and

customs office), any excess amount of duties paid in the preceding
year (from the date of registration of the declaration for imported or
exported goods to the date of discovery of the error) shall be
refunded; the file for a refund of duties shall include the following:
• Official letter requesting a refund of the excess amount of

import or export duties paid;
• Customs declaration for imported or exported goods

(accompanied by other relevant import-export documents);
• Duty notices; receipts for payment of duties.
1.6 Supplies and raw materials imported for production of goods for
export shall be entitled to refund of duty corresponding to the ratio
of export of finished products which shall be determined as
follows:
1.6.1 Supplies and raw materials entitled to refund of duty shall

include the following:
• Imported raw materials and supplies (including

components for assembly, semi-finished products and
packages) directly constituting products for export;
• Supplies and raw materials used as part of the process

of production of goods for export, but not directly
constituting products, such as paper, chalk, brushes,
tailor's chalk, pins, paint, clothes brushes, glue,
priming brushes, and so forth.
1.6.2 A refund of duty shall be considered in the following cases:
1.6.2.1 Enterprises importing raw materials and supplies,

producing goods for export or sub-contracting for
the purpose of domestic processing (including sub-
contracting export processing enterprises,
enterprises in export processing zones and other
zones entitled to duty exemption in accordance
with the regulations of the Government for the
propose of processing; for processing abroad; or in
the case of co-operation, for production of goods

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for export), and receiving products for export; the

procedures and documents shall include the
following:
• Official letter requesting a refund of import

duties in respect of supplies and raw materials
imported for production of goods for export
by the enterprise with a statement detailing the
quantity and value of supplies and raw
materials imported and used for production of
products for export; the amount of import
duties paid; amount of goods exported; the
amount of import duties for which a refund is
sought;
• List of the actual levels of use of imported raw

materials and supplies for a product;
• Customs declaration for imported raw

materials and supplies for which the customs
procedures have been completed; import
contract;
• Duty notices; receipts for payment of duties;
• Customs declaration for exported goods for

which customs procedures have been
completed; export contract;
• Contract for export or import authorization if

goods are imported or exported by authorized
dealers;
• Source document for payment made through a

bank for the consignments of exported goods;
• Co-operation contract for production of goods

for export, in the case of co-operation for
production of goods for export.
Where an enterprise delivers raw materials and

supplies to an export processing enterprise or
abroad for processing and subsequently it receives
products for production and/or export, in addition
to the above documents, the following documents
shall be added:
• Customs declaration for exported supplies and

raw materials for processing; customs

and
declaration for products imported from the

export processing enterprise or abroad;
• Receipts for payment of duties (for processed

products imported);
• Processing contract with the export processing

or foreign enterprise.
1.6.2.2 Enterprises importing raw materials and supplies

for production of goods for sale in the domestic
market, but subsequently seeking export markets
(in a permissible maximum period of two years
from the date of registration of the customs
declaration for imported supplies and raw
materials) and using such raw materials and
supplies for production of goods for export and
actually exporting them to a foreign country; the
procedures and documents for a refund of duties
shall be similar to the case stipulated in clause
1.6.2.1.
1.6.2.3 With respect to imported supplies and raw

materials for implementation of a processing
contract (which are not supplied by the foreign
supplier but are imported by the processor for
implementation of the signed processing contract
with the foreign customer), upon actual export, the
products shall be entitled to refund of import duties
as raw materials and supplies imported for
production of goods for export. The procedures
and documents for a refund of import duties shall
comprise the following:

duties in respect of supplies and raw materials
imported for processing of goods for export
with a statement detailing the items of goods,
quantity and value of supplies and raw
materials imported; the amount of import
duties paid; amount of products exported; the
amount of import duties for which a refund is
sought;

materials and supplies for production of a
product for export;

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materials and supplies; import contract;
• Receipts for payment of import duties;
• Customs declaration for exported goods (by

way of processing) for which customs
procedures have been completed (photocopy
certified by the enterprise being the exporter
as a true copy of the original copy);
• Signed processing contract with the foreign

customer, specifying items of goods, types
and quantity of supplies and raw materials
imported by the processor;

bank for the consignment of exported goods;
• Contract for export or import authorization (if

dealers).
1.6.2.4 With respect to enterprises importing raw materials

and supplies for production of products, but
subsequently using such products for processing of
goods for export under a processing contract with a
foreign party, the procedures and documents for a
refund of duty shall be the same as the case
stipulated in clause 1.6.2.1 above with the
exception that:
• Contract for export of products shall be

replaced by the signed processing contract for
goods for export with a foreign customer; the
contract for purchase of products to be used
for the processing contract and the processing
contract for products for export with the
foreign customer may be combined in a
contract;

materials and supplies for production of
products to be used for production of a
processed product and the actual levels of use
of raw materials for production of products for
export under the signed processing contract;
• Statement on quantity of products actually

used by the producing enterprise for
and
production of goods for export which is

signed by the director of the enterprise who is
responsible before the law.
1.6.2.5 With respect to enterprises importing raw materials

and supplies for production of products for sale to
another enterprise which directly produces or
processes goods for export, after the enterprise
producing or processing goods for export has
already exported products to a foreign country, the
enterprise importing raw materials and supplies
shall be entitled to refund of import duties
corresponding to the share used by the latter for
production of products which are actually exported.
Where an enterprise imports raw materials and

supplies for production of products for sale to other
enterprises which are included in sets of
components for direct export, it shall be entitled to
refund of duty corresponding to the proportion of
the product (the set of components) exported,
provided that (i) such product which is produced
from the imported raw materials and supplies of the
enterprise is one of the details or components of the
sets of components for export; (ii) the enterprise
purchases the products for combination of the
details or components manufactured by it in order
to make up a set of components for export.
The file requesting a refund of duty shall include

the following:

duties with a statement detailing the quantity
and value of imported supplies and raw
materials used for production of goods sold to
enterprises producing goods for export;
quantity of produced goods sold, quantity of
products exported; the amount of import
duties paid; the amount of import duties for
which a refund is sought;

product sold to enterprises producing goods
for export or processing goods for export;

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contract;
• Duty notice; receipts for payment of import

duties;
• Customs declaration for goods actually

exported by the exporter as certified by the
customs office (photocopy certified by the
exporter as a true copy of the original copy);
• Invoices for the purchase and sale of goods

between the two entities;
• Economic contract for purchase and sale of

goods between the enterprise being the
importer and enterprise producing or
processing goods for export, specifying that
such goods will be used for production or
processing of goods for export (or for export
together with the sets of components); source
document for payment for goods;
• Signed processing or production contract with

the foreign customer (photocopy certified by
the enterprise as a true copy of the original
copy);
• Statement of the enterprise exporting products

on quantity and actual levels of use of
purchased products to produce directly a
product for export; list of source documents
for payment for consignment of exports made
by foreign customers which is signed and on
which a seal is affixed by the director of the
enterprise who is responsible before the law
for the accuracy of the data declared;

dealers).
1.6.2.6 Where an enterprise imports raw materials and

supplies to produce products for sale to other
enterprises which directly export such products to
foreign countries, after the enterprises purchasing
products from the former exports such products to
foreign countries, the enterprise importing raw
materials and supplies shall be entitled to refund of

and
import duties corresponding to the quantity of

actually exported products.
The procedures and documents requesting a refund

of import duties shall include the following:

duties with a statement detailing the quantity
and value of imported supplies and raw
materials; the amount of import duties paid;
the amount of produced products sold to
exporters; the amount of products exported;
and the amount of import duties for which a
refund is sought;

product sold to other enterprises for export;

contract;
• Duty notice; receipts for payment of import

duties;
• Purchase and sale contract; invoices issued by

the enterprise being the seller to the enterprise
being the exporter; list of source documents
for payment for goods;
• Customs declaration for exported goods for

which customs procedures have been
completed (photocopy certified by the
exporter as a true copy of the original copy);
• Contract for export of goods with the foreign

customer (photocopy certified by the exporter
as a true copy of the original copy);

bank for the consignment of exported goods;

dealers).
In the cases of refund of duty stipulated in clauses

1.6.2.5 and 1.6.2.6 above, raw materials and
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supplies imported for production of goods for

export shall only be entitled to refund of import
duties if the following conditions are satisfied:
• The enterprise being the seller or purchaser

pays value added tax by the tax credit method
(the enterprise presents a photocopy certified
by it as a true copy of the original copy); the
enterprise has registered for and been issued
with a tax code; and invoices in respect of the
purchase and sale of goods between the two
entities must be available;
• Payments for exported goods are made

through a bank and in foreign currency in
accordance with the regulations of the State
Bank of Vietnam;
• The maximum period from the date of import

of raw materials and supplies (as the date of
registration of the customs declaration for
imported goods at the customs office) to the
date of actual export of products is one year
(rounded up to 365 days).
1.6.2.7 Cases of enterprises importing raw materials and

supplies in order to produce goods for sale to
foreign business entities but which goods are
delivered to another manufacturing enterprise in
Vietnam on the instructions of the foreign business
entity in order to continue manufacturing or
processing export goods shall be subject to the
guidelines provided in Circular 90-2000-TT-BTC
of the Ministry of Finance dated 10 October 2002.
1.6.3 Where raw materials and supplies have been imported for
production of goods which are actually exported within the
period for duty payment provided for in Section III of Part C
of this Circular, such raw materials and supplies shall be
exempt from import duties corresponding to the quantity of
goods actually exported. The file for duty exemption shall
be the same as the file for refund of duty, with the exception
that the receipt for payment of duties shall be replaced by
the duty notice of the customs office.

and
1.6.4 Levels of use of imported raw materials and supplies for the
purpose of refund of duty:
1.6.4.1 Enterprises shall themselves stipulate levels of use

of imported raw materials and supplies for
production of goods for export and declare and
register them with the customs office where the raw
materials and supplies are imported prior to export
of products. Where other types of imported raw
materials and supplies not covered by the levels of
use which have been registered with the customs
office are required due to any change of models or
categories of goods for export, no later than fifteen
(15) days from the date of the above change, the
enterprise shall make a declaration and re-register
levels of use of imported raw materials and supplies
for production of goods for export with the customs
office before carrying out procedures for export of
products.
The levels of use of raw materials and supplies

shall include wastage rates of raw materials and
supplies during the process of production (if any).
The actual maximum wastage rates of raw
materials and supplies for the purpose of refund of
duty shall not exceed three per cent of the value (or
amount) of relevant imported raw materials and
supplies used for production of goods for export;
with respect to a number of products for which the
authorized State body provides wastage rates of
raw materials and supplies of over three per cent,
such wastage rates shall apply and such authorized
State body shall be responsible before the law for
those wastage rates.
With respect to processing of goods for foreign

business entities, the levels of use and wastage rates
of raw materials and supplies shall be agreed by the
parties in processing contracts. Directors of
enterprises being processors shall be responsible
that imported raw materials and supplies are used
solely for the purpose of processing.
Where there is doubt about any level of use of

supplies and raw materials for production of
products for export, the body determining the
refund of duty may seek the opinion of the body
responsible for the specialized management of such

and
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item or has the main responsibility to co-ordinate

with the local tax office (where the enterprise has
make a declaration for a tax code) to carry out an
examination at the enterprise which shall be used as
a basis for determination of a refund of duties to the
enterprise. The General Department of Customs
shall direct local customs offices to co-ordinate
with the local tax office to examine actual levels of
use of supplies and raw materials for production of
products for export relating to determination of
refund of import duties.
1.6.4.2 Where a type of raw material or supply is imported

for production of two or more different types of
products (for example, an enterprise imports wheat
for production of flour but acquires flour and bran
or an enterprise imports condensate for refinery of
oil but acquires petrol and diesel) but only one type
of product is exported, the enterprise shall be
responsible for making a declaration with the
customs office. The import duties to be refunded
shall be calculated in accordance with the following
formula of allocation:
Amount of import Value of Amount of

duties to be = exported x import
refunded products duties on
(corresponding to Total value imported
products actually of products raw
exported) acquired materials
• Value of exported products shall be calculated

by multiplying the amount of actually
exported products and FOB;
• Total value of products acquired shall be the

total amount or total value of exported
products and proceeds from sale of products
(including recoverable faulty products and
scraps and excluding value added tax on the
proceeds from sales) for domestic sale.
1.7 Goods which are temporarily imported for re-export or temporarily

exported for re-import shall be entitled to refund of import or
export duties and shall be exempted from import duties upon re-
import or export duties upon re-export in the following cases:
1.7.1 Goods temporarily imported for re-export or goods

temporarily exported for re-import in accordance with the

and
method of trading goods temporarily imported for re-export

or goods temporarily exported for re-import; and goods
imported by authorized dealers for foreign parties,
subsequently re-exported. The file for a refund of duty shall
include the following:
• Official letter requesting a refund of export or import

duties paid;
• Customs declaration for imported and exported goods

for which customs procedures are completed;
• Contract for purchase and sale of goods signed by both

the seller and the purchaser or the contract for import
authorization signed with the foreign party;
• Duty notice; receipts for payment of import duties;
• Contract for export or import authorization (if goods

are imported or exported by authorized dealers);
• Source document for payment made through a bank for

the consignment of exported goods.
1.7.2 Where goods are imported by a Vietnamese enterprise in its

capacity of an agent for delivery or sale to overseas buyers;
goods are imported for sale to foreign carriers on
international routes through ports of Vietnam and
Vietnamese carriers on international routes stipulated by the
Government; the following shall be required:
• Official letter requesting a refund of import duties;
• Official letter of the Ministry of Trade permitting

import (with respect to items of goods subject to an
import permit issued by the Ministry of Trade);
• Customs declaration for imported goods;
• Sales invoices;
• Customs declaration for exported goods for which

customs procedures are completed;
• Goods sales agency contract and contract or agreement

for supply of goods;
• Source document for payment made through a bank for

the consignment of exported goods.
and
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1.7.3 In respect of imported goods being drinks served on

international flights, the file shall comprise the following:
• Official letter of the Ministry of Trade permitting

import (with respect to items of goods subject to an
import permit issued by the Ministry of Trade);
• Customs declaration for imported goods;
• Delivery form certified by the customs office of the

bordergate at the airport.
1.7.4 Where enterprises being a principal for import of goods (for

example, oil, petrol, and so forth) are permitted to sell such
goods to ship chandler enterprises for sale of such goods to
foreign sea-going vessels, after selling the goods to foreign
sea-going vessels, the enterprise being the importer shall be
entitled to refund of import duties. The file for a refund of
import duties as stipulated in clause 1.7.2 above shall be
submitted to the customs office performing the procedures
for import of the consignment of goods. In addition to the
above documents, the enterprise shall submit the following:
• Contract and invoices for sale of goods to the ship

chandler enterprise;
• Statements of the ship chandler enterprise on quantity

and value of goods purchased from the enterprise being
the principal for import and actually supplied to
foreign sea-going vessels; list of source documents for
payment by foreign shipping companies. The director
of the enterprise shall be responsible before the law for
such statements.
1.7.5 Where goods temporarily imported for re-export or goods

temporarily exported for re-import are actually re-exported
or re-imported, as the case may be, within the period for
duty payment provided for in Section III of Part C of this
Circular, they shall be exempted from payment of an
amount of import or export duties corresponding to the
quantity of goods actually re-imported or re-exported. The
file for duty exemption shall be the same as the file for
refund of duty (with the exception that the receipt for
payment of duties shall be replaced by the duty notice of the
customs office).

and
1.8 Goods which have been exported but, for a particular reason, are
imported back into Vietnam shall be entitled to refund of export
duties already paid and exempted from import duties.
1.8.1 Conditions for refund of export duties already paid and

exemption from import duties:
• Such goods are actually imported back into Vietnam

within a maximum period of one year (rounded up to
365 days) from the date of actual export;
• Such goods have not been subject to the process of

manufacture, repair or use abroad;
• Such goods are imported back into Vietnam and

customs procedures are performed by [the customs
office 1 ] which performed the customs procedures for
export of such goods.
1.8.2 The file for a refund of export duties and exemption from
import duties shall include the following:
• Official letter requesting a refund of export duties and

exemption from import duties which clearly states the
reasons for import back into Vietnam and guaranteeing
that such goods have not been subject to the process of
manufacture, repair or use abroad;
• Notification of the foreign customer or agreement with

the foreign customer for return of goods, which clearly
states the reasons and quantity and types of goods
returned;
• Customs declaration for exported goods and set of

documentation on the consignment of exported goods;
• Receipts for payment of export duties;
• Customs declaration for the goods imported back,

which clearly states that these goods were exported in
accordance with the particular set of documentation on
exported goods, and detailed results of inspection of
the customs office at the bordergate certifying that the
goods being imported back into Vietnam are the
previously exported goods of the enterprise. Where the
previously exported goods were entitled to exemption
1 Phillips Fox Note: Inserted to aid comprehension.

and
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from actual inspection of goods on the basis of the

opinion of the authorized State body or inspection
body in accordance with the provisions of the Law on
Customs, the customs office shall verify the results of
inspection of goods actually imported back on the basis
of the file of the consignment of exported goods in
order to certify whether or not the goods imported back
are precisely the consignment of goods previously
exported;
• Source documents for payment for imported or

exported goods;
• Contract for export or import authorization (if goods

are imported or exported by authorized dealers).
1.8.3 Where the exported goods are imported back into Vietnam
within the time-limit for payment of export duties provided
for in Section III of Part C of this Circular, they shall be
exempted from payment of an amount of export duties
corresponding to the quantity of goods actually imported
back. The file for exemption from import or export duties
shall be the same as the file for refund of duty (with the
exception that the receipt for payment of duties shall be
replaced by the duty notice of the customs office).
1.8.4 Where the exported goods are goods which a Vietnamese

enterprise has processed for foreign parties and have been
made from raw materials already exempted from imported
duties, and then the goods have to be re-imported for repair
or re-processing and subsequently re-exported to the foreign
parties, the customs office which controlled and finalized
the initial processing contract shall continue to monitor and
control such goods until such goods are re-processed and re-
exported in full and also carry out clearance for the import
declaration for imported goods re-processed. If the goods
are not exported, the duties shall be dealt with as follows:
• In the case of domestic sale, the declaration for tax

payment shall be the same as processed products
imported or exported on-the-spot;
• In the case of permission for destruction in Vietnam

and the destruction is carried out under the supervision
of the customs office, the exemption from duties shall
be the same as in the case of destroyed scraps or faulty
products.

and
1.8.5 Where the exported goods have been produced from

imported raw materials; or goods are temporarily imported
for re-export (and therefore are entitled to refund of duty
upon export) and have to be re-imported back into Vietnam,
the enterprise must repay the initial import duties which
were refunded, or shall not be eligible for a refund (if not yet
in fact refunded), corresponding to the quantity of goods
which have had to be re-imported into Vietnam. When the
goods re-imported back into Vietnam are actually exported
again, the enterprise shall make a declaration for payment of
export duties (assuming the goods are subject to export
duties) and may be considered for an import duty refund in
accordance with clauses 1.6 or 1.7 of Section I of Part E of
this Circular.
1.9 Imported goods which for a particular reason must be exported

back to an overseas sender or re-exported to a third country on the
instruction of the overseas sender shall be entitled to refund of
import duties already paid corresponding to the quantity of re-
exported goods and an exemption from export duties.
1.9.1 Conditions for refund of import duties already paid and

exemption from export duties:
• Such goods are re-exported to the foreign country

within a period of one year (rounded to 365 days) from
the date of actual import of the goods;
• Such goods have not been subject to the process of

manufacture, repair or use in Vietnam;
• Such goods are re-exported to the foreign country and

customs procedures are performed by [the customs
office] which performed the customs procedures for
import of such goods.
1.9.2 The file for a refund of import duties already paid and
exemption from export duties shall include the following:
• Official letter requesting a refund of import duties and

exemption from export duties which clearly states the
reasons for re-export to the overseas sender (specifying
quantity, types and value of re-exported goods, and so
forth);
• Customs declaration for imported goods which have

been inspected by the customs office, specifying
quantity, quality and types of imported goods;

and
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• Duty notice; receipts for payment of duties;
• Written agreement for return of goods to the overseas

sender which clearly states reasons or quantity, quality,
types and origin of the consignment of goods;
• Customs declaration for the exported goods, which

specifies results of inspection and certification of
actual export by the customs office and which clearly
states quantity, quality, types of exported goods and
that these goods were exported in accordance with the
particular set of documentation on imported goods and
the attached set of documentation on the consignment
of exported goods. Where the previously imported
goods were entitled to exemption from actual
inspection of goods on the basis of the opinion of the
authorized State body or inspection body in accordance
with the provisions of the Law on Customs, the
customs office shall verify the results of inspection of
goods actually exported on the basis of the file of the
consignment of imported goods in order to certify
whether or not the re-exported goods are precisely the
consignment of imported goods;
• Invoices which have the effect of ex-warehouse orders;
• Import contract and contract for import authorization

(if any);
• Source documents for payment for the consignment of

goods exported back (except for cases where payment
has not yet been made).
Where the imported goods are not in conformity with the

contract, a notice of results of an evaluation of the goods by
the body or organization responsible for or authorized to
carry out evaluation of imported or exported goods shall be
required. In respect of the quantity of goods sent by the
overseas party to replace the quantity of goods which were
exported back, the enterprise shall declare and pay import
duties as stipulated.
1.9.3 Where the goods are re-exported within the period for
payment of import duties provided for in Section III of Part
C of this Circular, they shall be exempted from payment of
an amount of import duties corresponding to the quantity of
goods re-exported. The file for exemption from import
duties shall be the same as the file for refund of duty (with

and
the exception that the receipt for payment of duties shall be

replaced by the duty notice of the customs office).
1.10 Where an enterprise has exported goods but, for a particular reason,
must import back such goods into Vietnam (provided for in clause
1.8) or has imported goods but, for a particular reason, must export
such goods back or re-export them to a third country (provided for
in clause 1.9), and carries out customs procedures at different
places (not in the same bordergate), but all such places are under
the control of a local customs department, it shall be entitled to
refund of export duties (if any) and shall be exempt from import
duties in the case where the exported goods must be re-exported
back or shall be entitled to refund of import duties already paid and
shall be exempt from export duties in the case where the imported
goods must be re-exported.
1.11 Machinery, equipment, tools and means of transportation of

organizations and individuals which are permitted to be temporarily
imported (or borrowed) for re-export for the purpose of carrying
out investment projects, construction and installation of works or
used for production and other purposes must be declared for
payment of import duties upon import as stipulated and shall be
entitled to refund of import duties upon re-export from Vietnam. A
refund of import duties shall be determined on the basis of the
remaining use value of the machinery, equipment, tools and means
of transportation re-exported upon re-export which shall be
calculated on the basis of the duration of use and stay in Vietnam.
In the case where the remaining use value is nil, no duty shall be
refunded. Detailed provisions shall be applied as follows:
1.11.1 In cases where such goods are brand-new upon import (the
goods have not yet been used):
Duration of use Amount of import duties refunded
and stay in
Vietnam
Six months or less Ninety (90) per cent of the import duties
already paid
Over six months Eighty (80) per cent of the import duties
up to one year already paid
Over one year up Seventy (70) per cent of the import duties
to two years already paid
Over two years up Sixty (60) per cent of the import duties already
to three years paid
Over three years Fifty (50) per cent of the import duties already
up to five years paid
Over five years up Forty (40) per cent of the import duties already
to seven years paid
Over seven years No refund of import duties already paid

and
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1.11.2 In cases where such goods are used goods upon import:
Duration of use Amount of import duties refunded
and stay in
Vietnam
Six months or less Sixty (60) per cent of the import duties already
paid
Over six months Fifty (50) per cent of the import duties already
up to one year paid
Over one year up Forty (40) per cent of the import duties already
to two years paid
Over two years up Thirty five (35) per cent of the import duties
to three years already paid
Over three years Thirty (30) per cent of the import duties
up to five years already paid
Over five years No refund of import duties already paid
1.11.3 The file for a refund of import duties shall include the
following:
• Contract (or written agreement) for import or

borrowing of machinery, equipment, tools or means
of transportation;
• Customs declaration for imported or exported goods

for which the customs office has completed customs
clearance and certified the quantity and types of
goods actually imported or re-exported and a set of
documentation attached to the consignment of
exported or imported goods;
• Receipts for payment of duties; duty notice;
• Contract for import or export authorization (if goods

are imported or exported by authorized dealers).
Where organizations and individuals importing machinery,

equipment, tools and means of transportation for re-export
are not able tore-export upon expiry of the time-limit for
re-export, provided that they obtain the permission of the
Ministry of Trade (or another authorized State body) for
transfer to other users in Vietnam for continuing
management and use, upon transfer, they shall not be
treated as exported goods and shall not be entitled to
refund of import duties. The transferee or purchaser shall
not be liable to pay import duties. Upon actual re-export
from Vietnam, the original importer shall be entitled to
refund of import duties in accordance with this clause.
Upon request for a refund of duty, in addition to the

and
documents referred to above, an organization or individual

requesting a refund of duty shall submit the following
documents:
• Official letter of the Ministry of Finance (or another

authorized State body) permitting the transfer or
receipt of the temporarily imported machinery,
equipment, tools and means of transportation (in the
case where such official letter is required in
accordance with State regulations);
• Sale and purchase contract or minutes for handing

over or taking over the machinery, equipment, tools
and means of transportation between the two parties;
• Invoices which have the effect of an ex-warehouse

order or sales invoices issued by the organization or
individual being the importer to the purchaser or
transferee;
• Photocopy of the set of documentation on goods

temporarily imported on-the-spot certified by the
enterprise as the true copy of the original copy.
1.12 Imported or exported goods which are sent from overseas

organizations or individuals to organizations or individuals in
Vietnam or vice versa by way of postal services and courier
services for which the postal enterprise has paid duties shall be
entitled to refund of duties already paid in the cases stipulated in
Interministerial Circular 01-2004-TTLT-BBCVT-BTC of the
Ministry of Posts and Telecommunications and Ministry of Finance
dated 25 May 2004 providing guidelines on responsibilities and co-
ordination in customs inspection and supervision in respect of
imported or exported mail, items and parcels which are sent by way
of postal services and courier services.
The file for a refund of import duties shall include the following:
• File and source documents relating to imported or exported

goods;

the customs office has completed customs clearance and
certified the quantity, types and value of goods actually
imported or re-exported;
• Receipts for payment of duties; duty notice;

and
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1.13 Organizations and individuals having imported or exported goods

in breach of the regulations in relation to customs (hereinafter
referred to as goods in breach) for which customs procedures have
not yet been completed but export duties or import duties and other
taxes (if any) were paid and which are subject to a decision on
confiscation of goods issued by an authorized State body shall be
entitled to refund of export duties or import duties and other taxes
(if any) already paid. Procedures and documents for refund of duty
shall include the following:
• Official letter requesting a refund of import or export duties

and other taxes already paid;

the customs office has completed customs clearance;
• Receipts for payment of export or import duties and other

taxes (if any);
• Invoices pursuant to the contract for purchase and sale of

goods;
• Record of penalty for the breach;
• Decision on confiscation of the goods in breach issued by an

authorized State body.
1.14 Where imported or exported goods which remain under the

supervision of the customs office and for which a customs
declaration for imported or exported goods was registered and a
duty notice was issued but which are compelled to be destroyed due
to an offence which is discovered when the customs office
performs an inspection for customs clearance and the destruction
has already been carried out, a decision on duty exemption at the
importation or exportation stage (if any) shall be issued. The
penalty for the breach in relation to the import or export of goods
which do not comply with the regulations or which are compelled
to be destroyed shall be subject to the laws currently in force. The
customs office which has registered the customs declaration for
imported or exported goods must keep the file on the destroyed
goods and co-ordinate with relevant bodies to supervise the
destruction in accordance with the laws currently in force.
1.15 Source documents for payment made through a bank included in

the file for refund of duty (or exemption from duties) shall be
subject to the guidelines provided in Circular 120-2003-TT-BTC of
the Ministry of Finance dated 12 December 2003 and legal
instruments providing amendments and additions (if any). In the

and
case of oil and petrol re-exported, the currency for payment shall be
United States dollars.
2. Order for dealing with refunds of duty shall be as follows:
• In the cases in clauses 1.1, 1.2, 1.3, 1.4, 1.5 and 1.13 of Section I of
Part E of this Circular, the customs body responsible for inspection
of imported or exported goods shall certify and the customs officers
of the customs office responsible for calculation of duty shall re-
check and complete the procedures for refund of duty. The local
customs department shall consider and make a decision on refund
of duty. The amount of import duties refunded shall be credited
against the amount of duties to be paid by the taxpayer in the
following period. Where a taxpayer will not carry out import or
export activities or will not be liable to pay any duties payable in
the following period and requests a direct refund, the local customs
department shall request the Ministry of Finance (Department of
State Budget) to refund duties directly to the taxpayer in
accordance with the decision of the local customs department on
refund of duty.
• In the cases in clauses 1.6 (1.6.2.1 and 1.6.2.3), 1.7 and 1.11 of
Section I of Part E of this Circular, upon collection of any duties,
the customs office shall deposit such duties into a separate account
of the local customs department at the State Treasury. Upon
receipt of an official letter requesting a refund of duty from the
taxpayer entitled to a refund of duty, the local customs department
shall, on the basis of the file as stipulated, examine, consider and
sign a decision on refund of duty (or duty exemption) and refund
duties to the taxpayer from the above deposit account at the State
Treasury. In the cases in clauses 1.6.2.2, 1.6.2.4, 1.6.2.5 and
1.6.2.6, the local customs department shall, on the basis of the file
as stipulated, examine, consider and sign a decision on refund of
duty (or duty exemption) and refund import duties in accordance
with the applicable regulations of the Ministry of Finance.
• In the cases in clauses 1.8 and 1.9 of Section I of Part E of this

Circular, the local customs departments shall, on the basis of the
files as stipulated, examine, consider and sign decisions on refund
of duty (or duty exemption) to taxpayers.
The local customs department shall monitor duties in order to credit

against the amount of duties to be paid by the taxpayer in the
following period. Where the amount of duties to be refunded is
larger than the amount of duties payable in the following period or
a taxpayer will not carry out import or export activities in the
following period, the local customs department shall request the
Ministry of Finance (Department of State Budget) to refund duties

and
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directly to the taxpayer in accordance with the decision on refund

of duty.
• Procedures and documents and process of refund of duty in the

cases in clause 1.12 shall be subject to the guidelines provided in
Circular 68-2001-TT-BTC dated 24 August 2001 and Circular 91-
2002-TT-BTC dated 11 October 2002 of the Ministry of Finance
providing guidelines on refund of payments already made to the
State Budget.
When refunding duty in accordance with decisions on refund of duty, the

local customs department shall carry out customs clearance for the
purpose of refund of duties paid in respect of each customs declaration for
imported or exported goods and shall clearly state "..... dong of duty is
refunded in accordance with Decision ... of ... dated ...".
Where an amount of duties is refunded by way of credit against the

amount of duties to be paid by the taxpayer in the following period, it
must be clearly stated in the customs declaration for imported or exported
goods in respect of which duties are deducted: "..... dong of duty is
deducted in accordance with Decision ... of ... dated ..." at the same time
as stating the amount of duties deducted and the serial number and date of
the customs declaration for imported or exported goods in respect of
which duties are deducted in the original copy of the decision on refund of
duty for monitoring by the customs office.
3. Time-limit for submission of files and time-limit for consideration of

refund of duty:
3.1 Time-limit for submission of files:
No later than sixty (60) days from the date of actual export (in the
case of goods being raw materials and supplies imported for
production of goods for export and goods temporarily imported for
re-export) and no later than sixty (60) days from the date of actual
import (in the cases of goods temporarily exported for re-import),
taxpayers entitled to refund of import or export duties must
complete and submit a file as stipulated to the authorized body for
consideration and resolution of refund of duty in accordance with
applicable provisions.
Where the time-limit for payment stated in the export contract is

more than sixty (60) days from the date of actual export of goods,
the enterprise must make a written undertaking to present source
documents for payment within a period of fifteen (15) days from
the date of expiry of the time-limit for payment stated in the
contract.

and
3.2 Time-limit for consideration of refund of duty:
Within a time-limit of thirty (30) days from the date of receipt of

the complete file as stipulated, the authorized body shall be
responsible for signing and issuing a decision on refund of duty to
taxpayers entitled to the refund of duty. Where the file is
incomplete or fails to comply with the regulations, within five days
(working days) from the date of receipt of the file requesting a
refund of duty from the taxpayer entitled to the refund of duty, the
authorized body considering the refund of duty must notify the
taxpayer requesting the refund of duty in writing of the reasons.
II. Re-collection of import and export duties
1. Cases in which import or export duties shall be re-collected:
1.1 Where goods which are entitled to duty exemption or reduction or

refund of duty in accordance with this Circular are used for a
purpose other than the purpose for which duty is exempted, reduced
or refunded, the duty which has been exempted, reduced or
refunded shall be re-collected in full, unless the authorized State
body permits the enterprise to be entitled to exemption or
temporary exemption from, reduction of or refund of duty in
accordance with applicable regulations.
1.2 Where a taxpayer has made an error in declaration for imported or

exported goods, duty shall be re-collected for one year preceding
the date of registration of the customs declaration for imported or
exported goods to the date of discovery of such error. Errors in
declarations means errors in calculation or shall be the application
of wrong codes of tariffs due to objective causes (such as a change
in taxation policy, unclear policies, complex classification of
imported or exported goods, and so forth) despite declaring the
correct name of goods.
1.3 In the case of fraud or tax evasion, duty and fines shall be re-
collected for five years preceding the date on which the fraud or tax
evasion is discovered by an inspection. Fraud or tax evasion shall
include all cases subject to re-collection of duty (other than the two
cases referred to in clauses 1.1 and 1.2 above).
2. The applicable bases for calculation and re-collection of import or export

duties shall be the dutiable value, the duty rate and exchange rate
stipulated at the time when the authorized State body permits the change
in the purpose of use for which duty previously was exempted, reduced or
refunded to the purpose which is now subject to payment of duty in the
case in clause 1.1 and at the time of registration of the previous customs

and
Phillips Fox
V-300-251
declaration for imported or exported goods in the case of clauses 1.2 and
1.3.
3. The time-limit for declaration for re-collection of duty shall be two days
(working days) from the date on which the authorized State body permits
the change in the purpose of use for which duty previously was exempted,
reduced or refunded to the purpose which is now subject to payment of
duty in the case in clause 1.1 and from the date of discovery of the error in
the case of clause 1.2 or from the date on which fraud or tax evasion is
discovered by an inspection in the case of clause 1.3.
4. The time-limit for payment of duty re-collected shall be ten (10) days from
the date on which the authorized State body signs a decision on re-
collection of duty. Any taxpayer failing to pay duty within the above
time-limit shall be subject to a penalty for an administrative offence in
relation to taxation in accordance with the regulations currently in force.
5. Bodies (namely, customs offices and tax offices) which carry out
inspections and discover any error, fraud or tax evasion shall have the
power to make a decision on re-collection of duty on a case-by-case basis
and forward it to the relevant taxpayer.
G. COMPLAINTS AND DEALING WITH BREACHES

I. Complaints and resolution of complaints
1. Organizations and individuals shall have the right to lodge complaints

about decisions of the authorized State body relating to import and export
duties in accordance with the laws. The complaint shall specify grounds
and reasons. Pending resolution of the complaint, the organization or
individual being the complainant must pay duties and fines in full and on
time in accordance with the notice or penalty decision issued by the
authorized State body.
2. The order for resolution of complaints relating to import and export duties
shall be subject to the Law on Complaints and Denunciations dated 2
December 1998 and the Law on Amendment of and Addition to a Number
of Articles of the Law on Complaints and Denunciations dated 15 June
2004.
3. Bodies dealing with complaints at all levels shall have the right to refuse a
complaint and notify the complainant that its complaint is groundless, that
the reasons for the complaint are unclear or that the complaint was lodged
with the body at the improper level.
4. Where a complaint is not able to be dealt with, the body dealing with
complaints shall specify the reasons and give notification in writing to the
complainant within the time-limit stipulated by law.
and
5. The time-limit, procedures for lodging a complaint or resolution of

complaints and powers to deal with complaints shall be carried out in
accordance with the laws on complaints and other relevant laws.
II. Dealing with breaches
Organizations and individuals committing offences in relation to import and

export duties shall be dealt with in accordance with the Law on Import and
Export Duties and the Laws on Amendment of and Additions to a Number of
Articles of the Law on Import and Export Duties; Decree 100-2004-ND-CP of the
Government dated 25 February 2004 on Penalties for Administrative Offences in
Relation to Taxation and legal instruments providing guidelines for
implementation.
H. ORGANIZATION OF IMPLEMENTATION
This Circular shall be of full force and effect after fifteen (15) days from the date
of publication in the Official Gazette and shall replace Decision 164-2000-QD-
BTC dated 10 October 2000, Decision 198-2000-QD-BTC dated 11 December
2000, Decision 136-2001-QD-BTC dated 18 December 2001, Decision 164-
2002-QD-BTC dated 27 December 2002, Decision 72-2003-QD-BTC dated 20
May 2003, Decision 80-2003-QD-BTC dated 9 June 2003 of the Minister of
Finance; Circular 172-1998-TT-BTC dated 22 December 1998, Circular 151-
1999-TT-BTC dated 30 December 1999, Circular 28-TC-TCT dated 17 July
1992, Circular 08-2002-TT-BTC dated 23 January 2002 and previous legal
instruments of the Ministry of Finance and the General Department of Customs
providing guidelines for implementation of import and export duties which are
inconsistent with the guidelines provided in this Circular.
Where customs declarations for goods imported, exported, temporarily exported

(in the cases of temporary import for re-export) or temporarily imported (in the
cases of temporary export for re-import) have been registered prior to the date of
effectiveness of this Circular, they shall still be subject to the previous provisions.
If any problems arise during implementation, organizations and individuals are

requested to report to the Ministry of Finance for consideration and resolution.
For the Minister of Finance

Deputy Minister
TRUONG CHI TRUNG

and
Phillips Fox
V-300-253

Circular Providing Guidelines For Implementation of Import and Export Duties

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Subscription 56 (2/2004-2005) 30 June 2005

MINISTRY OF FINANCE SOCIALIST REPUBLIC OF VIETNAM

Pursuant to Decree 101-2001-ND-CP of the Government dated 31 December

Pursuant to Decree 60-2002-ND-CP of the Government dated 6 June 2002 on

Pursuant to Decree 57-1998-ND-CP of the Government dated 31 July 1998

Pursuant to Decree 24-2000-ND-CP of the Government dated 31 July 2000

Pursuant to Decree 51-1999-ND-CP of the Government dated 8 July 1999

© Ministry of Planning and Investment

Pursuant to Decree 66-2002-ND-CP of the Government dated 1 July 2002 on

The Ministry of Finance hereby provides the following guidelines for

All goods permitted to be exported or imported as stipulated in article 1 of

Organizations and individuals importing or exporting, or undertaking the

1. Goods in transit or goods transported on roads which cross the territory of

2. Goods in transit for the purpose of business.

3. Goods imported from foreign countries into export processing zones,

© Ministry of Planning and Investment

goods imported into or exported from areas entitled to duty exemption as

4. Goods categorized as humanitarian aid.

B. BASES FOR CALCULATION OF DUTY

I. Quantity of imported or exported goods

1. Dutiable value shall be calculated in Vietnamese Dong and determined as

1.1 With respect to goods imported or exported pursuant to a contract

1.1.2 In respect of imports:

1.1.2.1 With respect to goods which are imported under a

© Ministry of Planning and Investment

guidelines provided in Circular 118-2003-TT-BTC

1.1.2.2 With respect to goods which are imported under a

1.1.2.3 A number of special cases shall be subject to the

1.1.2.3.1 In respect of leased machinery,

1.1.2.3.2 In respect of machinery, equipment and

Where the rent actually paid or cost of

© Ministry of Planning and Investment

the imports, the dutiable value shall

1.1.2.3.3 In respect of imports including goods

1.1.2.3.4 Where imported goods are entitled to

• Upon import, such goods are brand-

© Ministry of Planning and Investment

Over two years up to 60%

• Upon import, such goods are used

2. Exchange rate used to calculate duties:

In respect of foreign currencies for which no transaction is conducted on

© Ministry of Planning and Investment

States dollar for other foreign currencies on the international market

3. Currency used to pay duties:

Import and export duties shall be paid in Vietnamese dong. Taxpayers

III. Duty tariff

1. Export duty rates:

2. Import duty rates:

Conditions for application of the preferential duty rate:

• Imports must be supported by a Certificate of Origin (C/O)

• The Certificate of Origin of goods must comply with the

© Ministry of Planning and Investment

special preferential duty rate shall be specified for each specific

Conditions for application of the special preferential duty rate:

• Imports must be supported by a Certificate of Origin (C/O)

• Imports must be goods which are specified in the list of goods

• Other conditions (if any) for application of the special

In the case of failure to produce a Certificate of Origin (C/O) as

2.4 In several cases, imported goods shall be subject to an additional

© Ministry of Planning and Investment

Additional duties, duty rates subject to quota of customs duties, and

C. REGISTRATION AND DECLARATION FOR