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

Scrutinizing taxable price, HCM City Customs raises nearly VND 100 billion

Scrutinizing taxable price, HCM City Customs raises nearly VND 100 billion

VCN - Many imported goods have very low taxable value declared by enterprises. Customs officers of the Ho Chi Minh City Customs Department consulted and rejected the declared value, increasing the taxable value dozens of times.
Lao Cai Customs clears 454 durian trucks during 4-day holiday

Lao Cai Customs clears 454 durian trucks during 4-day holiday

VCN - During the 4-day National Day holiday in 2024 (from August 31 to September 3, 2024), Lao Cai Border Gate Customs Branch (Lao Cai Customs Department) cleared 454 durian trucks for export.
Pressure on exchange rate plunges

Pressure on exchange rate plunges

VCN – The State Bank of Vietnam (SBV) has taken measures including intervening in the foreign exchange market and tightening liquidity to reduce pressure on the Vietnamese dong exchange rate.
HCM City Customs processes clearance procedure for nearly 1.6 million of import – export declaration

HCM City Customs processes clearance procedure for nearly 1.6 million of import – export declaration

VCN - In the first half of 2024, HCM City Customs Department has carried out clearance procedure for nearly 1.6 million of import – export declaration, an increase of 5.59% compared to the same period of 2023.

Latest News

New regulations on foreign indirect investment in Vietnam drafted

New regulations on foreign indirect investment in Vietnam drafted

The State Bank of Vietnam (SBV) is drafting a circular to better manage foreign investment protocols and hopefully make them speedier.
Considering amending regulations on suspension from exit due to tax arrears

Considering amending regulations on suspension from exit due to tax arrears

VCN - To facilitate the implementation of suspension from exit, the General Department of Taxation directs specialized units to study and amend and supplement current regulations to ensure both improving the efficiency of tax debt collection and creating conditions for enterprises and taxpayers to develop stable production and business as well as facilitate travel and trade activities.
How to handle export processing enterprises forgetting to open a corresponding import declaration

How to handle export processing enterprises forgetting to open a corresponding import declaration

VCN - From 2014 to 2019, Dragonjet Vietnam Co., Ltd. (headquartered in Que Vo Industrial Park, Bac Ninh) opened 17 on-site export declarations of domestic enterprises, however, the company “forgot” to open a corresponding import declaration. Dragonjet Vietnam Co., Ltd proposed the Customs authority to instruct tax procedures and policies and whether failure to register a corresponding declaration will result in tax imposition?
Food safety rules relaxed for emergency imports

Food safety rules relaxed for emergency imports

VCN - Products and goods provided by foreign governments and international organizations for emergency relief to people recovering from storm No. 3 are exempt from state inspection of food safety and quality.

More News

Checking and reviewing the classification of exported copper

Checking and reviewing the classification of exported copper

VCN - In order to ensure that the classification is consistent with the declared code, the General Department of Vietnam Customs requests the customs departments of provinces and cities to strengthen the inspection and review of the classification of exported copper goods.
Amendment of Special Preferential Import and Export Tariff Schedule to Implement CPTPP Agreement for the 2022-2027 Period

Amendment of Special Preferential Import and Export Tariff Schedule to Implement CPTPP Agreement for the 2022-2027 Period

VCN - The Ministry of Finance is drafting a decree amending and supplementing a number of articles of Decree No. 115/2022/ND-CP dated December 30, 2022 of the Government promulgating Vietnam's preferential export tariff schedule and special preferential import tariff schedule to implement the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) for the 2022-2027 period. The Decree is expected to take effect from the date of signing.
Must strictly manage duty-free goods

Must strictly manage duty-free goods

VCN - The General Department of Customs has just responded to the Binh Phuoc Customs Department to guide Binh Duong Water and Environment Corporation to implement regulations on the management of tax-free imported goods.
Amend the law to protect the rights of accountants

Amend the law to protect the rights of accountants

VCN - Promoting decentralization, delegation of authority, improving state management capacity in the field of accounting, enhancing the responsibility of leaders, etc will ensure the legitimate rights of accountants, prevent corruption and waste.
Simplification is not enough, enterprises need stronger administrative reform

Simplification is not enough, enterprises need stronger administrative reform

VCN - Commenting on the Draft Report on improving business regulations to support productivity growth in Vietnam, the Vietnam Chamber of Commerce and Industry (VCCI) said that regulations on administrative procedures need stronger reform.
Propose a 15-30% reduction in land rents in 2024 for people affected by typhoon Yagi

Propose a 15-30% reduction in land rents in 2024 for people affected by typhoon Yagi

VCN - To support people and businesses with more resources to cope with difficulties and challenges in production and business due to the impact of typhoon No. 3 (Yagi), the Ministry of Finance proposed a 15-30% reduction in land rents in 2024.
Amending 3 important policies in the Law on State Budget

Amending 3 important policies in the Law on State Budget

VCN - The Ministry of Finance proposed regulations allowing local budgets to invest in the construction of central infrastructure works in the locality and support other localities to invest in the construction of regional and inter-regional infrastructure projects, contributing to mobilizing resources from the budgets of financially capable localities for inter-regional projects to be completed soon, helping localities in the region promote socio-economic development.
MoF proposes to abolish Article 35 on “on-the-spot import and export” in Decree No.08/2015/ND-CP

MoF proposes to abolish Article 35 on “on-the-spot import and export” in Decree No.08/2015/ND-CP

VCN - The Ministry of Finance (the General Department of Vietnam Customs) has received comments on the draft Decree amending and supplementing a number of articles of Decree No. 08/2015/ND-CP providing specific provisions and guidance on enforcement of the customs law on customs procedures, examination, supervision and control procedures. In addition to revision related to on-the-spot import and export activities, the draft also proposes to supplement new regulations to meet requirements of implementing digital customs, ensuring compliance with practical situations and promoting customs modernization.
Revised Law on Special Consumption Tax to reduce consumption rate of products harmful to health

Revised Law on Special Consumption Tax to reduce consumption rate of products harmful to health

VCN – According to the assessment, the increase in the Law on Special Consumption Tax not only aims to regulate the consumption of products harmful to the health and the environment, improve the health of the population and enhance labor productivity and boost sustainable development, but also raise the State revenue.
Read More

Your care

Latest Most read
New regulations on foreign indirect investment in Vietnam drafted

New regulations on foreign indirect investment in Vietnam drafted

The State Bank of Vietnam (SBV) is drafting a circular to better manage foreign investment protocols and hopefully make them speedier.
Considering amending regulations on suspension from exit due to tax arrears

Considering amending regulations on suspension from exit due to tax arrears

VCN - To facilitate the implementation of suspension from exit, the General Department of Taxation directs specialized units to study and amend and supplement current regulations to ensure both improving the efficiency of tax debt collection and creating
How to handle export processing enterprises forgetting to open a corresponding import declaration

How to handle export processing enterprises forgetting to open a corresponding import declaration

VCN - From 2014 to 2019, Dragonjet Vietnam Co., Ltd. (headquartered in Que Vo Industrial Park, Bac Ninh) opened 17 on-site export declarations of domestic enterprises, however, the company “forgot” to open a corresponding import declaration. Dragonjet Vie
Food safety rules relaxed for emergency imports

Food safety rules relaxed for emergency imports

Products and goods provided by foreign governments and international organizations for emergency relief to people recovering from storm No. 3 are exempt from state inspection of food safety and quality.
Checking and reviewing the classification of exported copper

Checking and reviewing the classification of exported copper

General Department of Vietnam Customs requests the customs departments of provinces and cities to strengthen the inspection and review of the classification of exported copper.
Mobile Version