Amendment of regulations on customs valuation for clarifying calculation methods and exchange rates

VCN - The issue of customs valuation will be amended to ensure objectivity and to balance the content of legal documents.
Da Nang Customs officials guides enterprise to implement procedures. Photo: Hồng Vi
Da Nang Customs officials guides enterprise to implement procedures. Photo: Hồng Vi

The contents of customs valuation specified in Article 20 to Article 22a of Decree No. 08/2015/ND-CP are changed in Clause 8, Clause 9, Clause 10, Article 1 of Decree No. 59/2018/ND-CP.

According to the General Department of Vietnam Customs (GDVC), current regulations have problems that need to be removed. In Article 20 of the decree, the principles and methods for identifying customs valuation of exported goods are specified. However, for imported goods, it only regulates the principles while the methods are not specified.

On inspection and determination of valuation, Article 21 of this decree stipulates that when rejecting the value, the customs authority must wait for customs declarant to make an additional declaration within five working days. If they do not submit an additional declaration or the additional declaration is not applicable with the notice on customs valuation, the customs authority will impose tax.

Therefore, the Customs authority must arrange staff to regularly monitor the additional declaration for each customs declaration to handle. On the other hand, the provision is not consistent with Points đ and h, Clause 1, Article 52 of the Law on Tax Administration stipulating tax assessment for export and import goods, when the declared value is rejected, the right of determining the price shall belong to the customs authority.

Regarding the exchange rate, according to Clause 5, Article 21 of the decree, the use of exchange rate for tax calculation is the exchange rate provided by the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and sent to the GDVC.

Although exchange rate for tax calculation of foreign currencies are announced by the State Bank. When monitoring exchange rate fluctuations in the past time, the exchange rate announced by Vietcombank is not much different from the tax rate announced by the State Bank. On the other hand, Vietcombank is a joint stock commercial bank and is not the only bank operating in foreign exchange.

Therefore, the GDVC intends to amend and supplement Article 20 by adding names of methods of identifying customs valuation for import goods (name of similar method will comply with the Article 5 of Circular No. 39/2015/TT-BTC amending Clause 4, Article 1 of Circular 60/2019/TT-BTC), and restructured to stipulate the first checkpoint of export and import into a separate clause.

To amend Article 21 for in terms of inspection and determination of value, if the customs authority has sufficient grounds to reject the declared value after consultation, customs value shall be determined and imposed tax in accordance with the provisions of Law on Tax Administration for cargo clearance. If there are not enough grounds for rejection, the customs authority shall implement cargo clearance base on the declared value.

Regarding the use of exchange rates for tax calculation, to ensure objectivity, the drafting board proposes using the exchange rate announced by the State Bank for tax calculation. Specifically, the draft decree stipulates: "The exchange rate between Vietnam Dong and foreign currency used to determine the valuation for tax declaration is the cross-calculation rate of Vietnam Dong with a number of foreign currencies to determine the taxable value (only the US dollar is the buying rate at the State Bank of Vietnam's Exchange) announced by the State Bank of Vietnam on its website on the Thursday of the preceding week or is the exchange rate at the end of the day of the working day preceding the Thursday in case the Thursday is a holiday. This rate is used to determine the taxable rate for customs declarations registered the following week.

By N.Linh/Thanh Thuy

Related News

Proactive in dealing with exchange rate pressure

Proactive in dealing with exchange rate pressure

VCN - Recently, the State of Bank (SBV) withdrew VND 30,000 billion through the T-bills channel, contributing to reducing exchange rate pressure. This is just one of the moves of the monetary policy management agency to stabilize the foreign exchange market, contributing to supporting the macro economy as well as import-export business activities of enterprises.
Cotrol smuggling of gold and foreign currency across border gates

Cotrol smuggling of gold and foreign currency across border gates

VCN- From the beggining of the year, gold and foreign currency prices have fluctuated strongly due to the smuggling and tax evasion cases across the border with sophisicated tricks, causing serious impacts on the gold and foreign currency markets.
The exchange rate is heated up: Need flexible regulation to control inflation

The exchange rate is heated up: Need flexible regulation to control inflation

The exchange rate has been increasing sharply since the beginning of the year until now, despite the context that foreign currency liquidity is still abundant thanks to positive indicators of trade and investment. However, the impact on the entire market and inflation control is not great.
Mong Cai: More than 1,000 tons of shipments firstly exported through the exit gate of Km3+4 Hai Yen pontoon bridge right after Tet Holiday

Mong Cai: More than 1,000 tons of shipments firstly exported through the exit gate of Km3+4 Hai Yen pontoon bridge right after Tet Holiday

VCN - Right after the Tet Holiday 2024, on February 18, 123 vehicles carrying 1,078 tons of fresh and frozen seafood and fruits were exported through the Km3+4 Hai Yen Pontoon Bridge, Mong Cai City, Quang Ninh quickly and conveniently.

Latest News

Removing difficulties in tax exemption and refund policies for export processing enterprises

Removing difficulties in tax exemption and refund policies for export processing enterprises

VCN - The Customs agency has received many proposals from businesses about answering and guiding policies on tax exemption, import tax and VAT refund for export processing enterprises. The General Department of Customs has responded and provided instructions for each specific case.
Reviewing the list of scrap that is temporarily suspended from temporary import and re-export business

Reviewing the list of scrap that is temporarily suspended from temporary import and re-export business

VCN - Scrap is a sensitive item with many potential risks of environmental pollution, directly affecting human health and the ecosystem. Therefore, strict management measures are needed to avoid the risk that Vietnam become a scrap gathering country in the world.
New law expected to boost financial leasing

New law expected to boost financial leasing

The law, which will take effect from July 1 this year, allows financial leasing companies to establish subsidiaries to handle and exploit bad debt assets. It also states that small financial leasing deals with value under VNĐ100 million do not need to control the purpose of capital use.
5% VAT on fertilisers to create fairer market: domestic producers

5% VAT on fertilisers to create fairer market: domestic producers

The absence of VAT on fertilisers has prevented domestic producers from declaring and deducting input VAT, which leads to higher cost of domestically produced fertilisers, by an estimated 5-8 per cent, and makes them vulnerable in competition from imported fertilisers.

More News

Why not reduce export tax on fertilizer products to 0%?

Why not reduce export tax on fertilizer products to 0%?

VCN - Clarifying a number of contents related to the draft Decree amending and supplementing a number of articles of Decree No. 26/2023/ND-CP on Preferential Export Tariffs, Import Tariffs, List of Goods and Rates Absolute tax, mixed tax, import tax outside the tariff quota regarding the export tax rate for some types of fertilizers, the Ministry of Finance has clarified the reason why it does not adjust the export tax rate for this product.
Ho Chi Minh City Customs proposed to reduce VAT

Ho Chi Minh City Customs proposed to reduce VAT

VCN - Ho Chi Minh City Customs Department proposed that the Ministry of Finance advise the Government to apply a reduction in the Value Added Tax (VAT) rate of 2% for all groups of goods and services which currently subject to the 10% VAT rate, uniform at the stages of import, production and consumption.
Limiting the "power" of major shareholders under the Law on Credit Institutions (amended)

Limiting the "power" of major shareholders under the Law on Credit Institutions (amended)

VCN - The Law on Credit Institutions (amended) has tightened the maximum ownership ratio and lending ratio to limit the influence of shareholder groups as well as minimize risks from credit concentration for banks.
VCCI proposes zero tax rate to be maintained for exported services

VCCI proposes zero tax rate to be maintained for exported services

The Vietnam Chamber of Commerce and Industry (VCCI) has proposed a zero-value added tax (VAT) rate to be maintained for exported services, over worries that tax hikes would undermine the competitiveness of Vietnamese providers against foreign rivals.
Ministry of Finance anwser voters about on-spot imports and exports

Ministry of Finance anwser voters about on-spot imports and exports

VCN - The Ministry of Finance has been collecting comments from related ministries and branches to aggregate and submit options to the government for abolishing Article 35 of Decree 08/2015/NĐ-CP. It aims to ensure the consistency and synchronism between the legal system and the reality.
Customs instructs C/O submission for imported cane sugar products

Customs instructs C/O submission for imported cane sugar products

VCN – Sugar products are allowed to apply tariff quotas when joining the WTO. The sugar products imported from ASEAN member states under Circular No. 23/2019/TT-BCT dated November 13, 2019, are required the Certificate of Origin form D.
SBV drafts regulations on a testing mechanism for Fintech

SBV drafts regulations on a testing mechanism for Fintech

VCN - To prevent risks and promote new products, services, and business models, the State Bank of Vietnam (SBV) has developed a draft Government decree stipulating a controlled testing mechanism in the banking sector.
Finance sector abolishes 40 administrative procedures

Finance sector abolishes 40 administrative procedures

VCN - The Ministry of Finance said that in the first two months of 2024, the Ministry of Finance issued four decisions announcing amendments and supplements and replacement of 21 administrative procedures; abolishing of 40 administrative procedures and issuing 10 new administrative procedures in the fields of tax and insurance.
Automate the registration fee management process

Automate the registration fee management process

VCN - The General Department of Taxation is reviewing and completing the Draft of the procedure to replace the Registration Fee Management Process for other assets subject to registration fee (except houses and land).
Read More

Your care

Latest Most read
Removing difficulties in tax exemption and refund policies for export processing enterprises

Removing difficulties in tax exemption and refund policies for export processing enterprises

VCN - The Customs agency has received many proposals from businesses about answering and guiding policies on tax exemption, import tax and VAT refund for export processing enterprises. The General Department of Customs has responded and provided instructi
Reviewing the list of scrap that is temporarily suspended from temporary import and re-export business

Reviewing the list of scrap that is temporarily suspended from temporary import and re-export business

VCN - Scrap is a sensitive item with many potential risks of environmental pollution, directly affecting human health and the ecosystem. Therefore, strict management measures are needed to avoid the risk that Vietnam become a scrap gathering country in th
New law expected to boost financial leasing

New law expected to boost financial leasing

The law, which will take effect from July 1 this year, allows financial leasing companies to establish subsidiaries to handle and exploit bad debt assets. It also states that small financial leasing deals with value under VNĐ100 million do not need to control the purpose of capital use.
5% VAT on fertilisers to create fairer market: domestic producers

5% VAT on fertilisers to create fairer market: domestic producers

The absence of VAT on fertilisers has prevented domestic producers from declaring and deducting input VAT, which leads to higher cost of domestically produced fertilisers, by an estimated 5-8 per cent, and makes them vulnerable in competition from imported fertilisers.
Why not reduce export tax on fertilizer products to 0%?

Why not reduce export tax on fertilizer products to 0%?

VCN - Carry out assigned tasks in Resolution No. 58/NQ-CP dated April 21, 2023, to promptly meet practical requirements, remove difficulties for production and business, and contribute to promoting the innovation of administrative procedures and preventin
Mobile Version