Dutiable Value of exports and imports might be imposed by Customs
Decree no 59/2018/ND-CP was issued on 20th April 2018 amended and supplemented some regulation relating to the customs procedures, examination, supervision and control procedures. From the time Decree no 59/2018/NĐ-CP comes into effect on 5th June 2018, enterprises will have to pay attention to some key changes about customs procedures as following:
Firstly, about examining and defining dutiable value
According to current regulation, when Customs have enough basis to reject the dutiable value reported by the importer, Customs will notice the importer for amending and supplementing in case of having the agreement of the importer. If importers do not agree, the value consultation will be closed at importation and transferred to customs audit. However, the authority of Customs will be strengthened by Decree no 59/2018/ND-CP. This new decree stipulated that “If there have enough basis to reject the reported dutiable value, Customs will notice, propose importer to amend within 5 business days maximum from the date of notification and release goods as regulated. If the importer made the supplement, Customs will release the goods as regulated. But if importers do not make the supplement at the end of the time-limit, Customs will start defining the dutiable value in accordance with Law on tax Administration to release the goods”. As the result, importers whether agree or not will have to make the supplement if Customs have enough basis to reject the reported dutiable value. Customs will define the dutiable value in case importers do not make the amendment.
Secondly, supplement the regulations about the method to define dutiable value
Decree no 59 provided that dutiable values will be determined in the order of 4 methods:
(i) Selling price of goods to the export border gate
(ii) Selling price of exactly the same or similar exports in the dutiable value data base after converting to selling price of goods to the export border gate at the latest time compared with the date of registration of export declarations of the goods being valued;
(iii) Selling price of exactly the same or similar exports in Viet Nam market after converting to selling price of goods to the export border gate at the latest time compared with the date of registration of export declarations of the goods being valued;
(iv) Selling price of exports collected, summarized and classified by Customs
Moreover, Decree no 59 also supplements the regulation on determining the export border gate. Specifically, for sea transport, air transport; rail transport; road transport, inland waterway, export border gate is loading port where goods are loaded onto means of transport stated in customs declaration; loading place at international rail border gate stated in customs declaration; border gate exporting goods out of Viet Nam territory stated in sale of goods contract or other relating receipt, respectively.
Thirdly, amending, supplementing cases needed to have the production plant, capacity checks of export production or processing manufacturers
Manufactures needed to be checked according to Decree no 59 are:
- Organizations, individuals importing goods to process, produce exports for the first time;
- Changes of business information on address, product, size, production capacity without notification to Customs;
- Organization, Individual importing goods for export processing with foreign party but sub-contracting the whole processing contract to other parties;
- Storage of materials, supplies, imported components and exported products at places other than those notified to Customs;
- Check based on Customs’ risk management.
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