Hanoi Customs resolves tax policy queries for enterprises

Professional activities at Gia Thuy Customs Branch (Hanoi Customs Department). Photo: N. Linh

Customs Valuation Consultation

One business inquired whether it was possible to conduct a one-time customs valuation consultation for imported goods, particularly for alcoholic beverages, to streamline administrative procedures and save time.

In response, Hanoi Customs cited Clause 6, Article 25 of Circular 39/2018/TT-BTC, which amends Circular 38/2015/TT-BTC, allowing for one-time consultation results to be used multiple times. The conditions for such application include the information and data for checking and determining the customs value of exported or imported goods during the one-time consultation must remain consistent with those of identical or similar goods previously consulted.

Declarants must request customs authorities to apply previous consultation results to subsequent export or import declarations either through the electronic system or via notifications regarding declared values.

The procedures for issuing and applying one-time consultation results are outlined in the annex attached to Decision 1304/QĐ-TCHQ, dated April 29, 2020, by the General Department of Vietnam Customs. According to point d, clause 2, section II of Decision 1304/QD-TCHQ of General Department of Vietnam Customs and guidance documents, key criteria for using consultation results multiple times include: the customs declaration consulted must have been cleared within 30 days of the application date; documentation for customs and consultation processes must comply with legal regulations, ensuring no contradictions among submitted documents; the consultation procedure, outcomes, and customs valuation of the goods must adhere strictly to legal standards; the enterprise should be rated a risk level between 1 and 4 by customs authorities and must not have committed any valuation-related violations resulting in fines exceeding VND 10 million within six months since the day of registering a customs declaration.

At the time of registering a customs declaration, the following criteria must be met to utilize one-time consultation results multiple times: the notification on the use of one-time consultation results must still be valid (no more than six months (180 days) from the issuance date). The following details on the customs declaration must be identical to those listed in the notification: Goods description, HS code, unit of measurement, origin, name of the exporting/importing partner, payment method. The declared customs value on the customs declaration must be equal to or higher than the customs value indicated in the notification on the use of one-time consultation results.

Tax refunds for price reduction clauses

A business also queried the procedure for tax refunds in cases where price reductions are granted based on purchase volumes, yet taxes have already been declared during customs procedures.

Hanoi Customs clarified that under Article 15 of Circular 39/2015/TT-BTC, local customs department directors have the authority to decide on adjustments for price reductions under certain conditions. If the price reduction is below 5% of the total consignment value and the declared value is not lower than the reference price for identical goods listed in the risk valuation directory. For other cases, the Director General of Vietnam Customs has decision-making authority.

The process for handling tax differentials resulting from price adjustments follows existing regulations. According to Clause 1, Article 60 of the Law on Tax Administration No. 38/2019/QH14 dated June 13, 2019, states: "1. Taxpayers who have paid amounts in excess of their tax liabilities, late payment interest, or fines are entitled to offset the overpaid amounts against outstanding tax liabilities, late payment interest, or fines, or apply them toward future tax obligations. If the taxpayer has no outstanding liabilities, they are entitled to a refund of the overpaid amounts."

Clause 5 of Article 60 empowers the Minister of Finance to stipulate procedures and authority for handling overpaid amounts.

Additionally, Clause 2 and Clause 3 of Article 10 of Circular 06/2021/TT-BTC dated January 22, 2021, provide additional guidance of Law on Tax Administration: 2. Authority to handle overpaid amounts: a) The Director General of Vietnam Customs, the Directors of Provincial or Municipal Customs Departments, the Directors of the Post-Clearance Audit Department, and the Directors of the Anti-Smuggling and Investigation Department are authorized to handle cases involving tax assessment decisions or penalty decisions.

b) The Managers of Customs Branches and Post-Clearance Audit Units where overpaid amounts were collected are responsible for handling overpayments.

3 - Procedures for handling overpaid amounts: procedures must adhere to Clauses 2, 3, and 4 of Article 131 as outlined in Clause 64, Article 1 of Circular No. 39/2018/TT-BTC.

Furthermore, clause 2, article 131 of Circular No. 38/2015/TT-BTC, dated March 25, 2015, amended by Clause 64, Article 1 of Circular No. 39/2018/TT-BTC, dated April 20, 2018, specifies taxpayer responsibilities:

Taxpayers must submit complete and accurate information as required in Form No. 03 of Appendix IIa, issued alongside this Circular, through the Customs Electronic Data Processing System.

For paper submissions, taxpayers must use Form No. 27/CVĐNHNT/TXNK in Appendix VI of the Circular.

Therefore, for cases where price reductions are applied to imported or exported goods, companies must submit their applications for handling overpaid taxes to the customs office where the procedures were conducted. This ensures that overpaid amounts are processed in accordance with the outlined regulations.