Import duties and export duties are important taxes of each country and sources of revenue for the state budget. So what are the import duties and export duties? Who are the taxable objects of import duties and export duties?
1. What are the import duties and export duties?
There are many normative legal documents that prescribe import duties and export duties in the Vietnamese legal system. However, there has been no specific definition of import duties and export duties.
Import duty and export duty have different definitions under different approach, especially:
Economic point of view: Import duties and export duties are paid to the state budget by organizations and individuals in accordance with the provisions of law when such organizations and individuals import or export goods through the border gate.
Legal point of view: IImport and export duties constitute the resulting legal relationship between the tax collector (the state) and the taxpayers (organizations and individuals), both parties have legal rights and obligations in the process of collection of import and export duties (taxpayers must pay taxes to the state in accordance with legal provisions).
2. Objects subject to import duties and export duties
Section 2 of the Import and Export Duties Act 2016 defines the objects of import duties and export duties as follows:
– Goods imported or exported via a border post or across the border of Vietnam
– Goods exported from the domestic market to a non-tariff zone, goods imported from a non-tariff zone to the domestic market.
Goods exported from the domestic market to export processing enterprises and to export processing zones, tax suspension warehouses, bonded warehouses or other non-tariff zones in accordance with Clause 1, Article 4 of the Law on import duties and export duties; goods imported into the domestic market from export processing enterprises, export processing zones, tax suspension warehouses, bonded warehouses or other non-tariff zones in accordance with clause 1, Section 4 of the Import and Export Duty Act.
– Goods imported or exported locally and goods imported or exported by companies exercising their right to import, export or distribute.
Goods of export processing enterprises exercising their import, export and distribution rights referred to in Article 2 of Clause 3 of the Import Duties and Export Duties Act, which are those imported or exported by export processing enterprises to exercise their import, export and distribution rights in accordance with trade and investment laws.
To note: The following items are not subject to import duties or export duties:
– Goods in transit, border transfer or transhipment;
– Goods donated as humanitarian aid or non-reimbursable aid;
– Goods exported abroad from a non-tariff zone; goods imported from abroad into a non-tariff zone and used only in that non-tariff zone; goods transported from one non-tariff zone to another;
– Oil volumes are paid in the form of royalties to the State on export.
3. What are the taxable objects of import duties and export duties?
According to Article 3 of the Law on Import Duties and Export Duties, the persons liable for import duties and export duties include:
– Owners of goods imported or exported.
– Agencies responsible for importing or exporting goods.
Persons entering or exiting who bring imported or exported goods or send or receive goods through a border gate or across the Vietnam border.
– Entities that are authorized to pay duties, guarantee the payment of duties or pay duties for taxpayers, including:
- Customs agents authorized by the taxpayers to pay import duties and export duties;
- Postal and international courier service providers who pay duties on behalf of taxpayers;
- Credit institutions or other bodies operating under the Credit Institutions Act that guarantee payment of fees or pay fees for those liable;
- Persons authorized by the owners of the goods, in the event that the goods are gifts or donations from individuals or are luggage sent before or after the departure or exit from the country of their owners;
- · Branches authorized to pay fees on behalf of their companies;
- Other persons authorized to pay fees on behalf of taxpayers according to law.
– Persons who purchase and transport goods within the limits of the duty-free quotas applicable to border residents but, instead of consuming these goods or using them for production, sell them on the domestic market, and authorized foreign traders to trade imported or exported goods in border markets in accordance with the law.
– Persons whose imported or exported goods are not dutiable or duty free but then become dutiable due to a change in accordance with the law.
– Other cases provided for by law.
This article helps readers answer the question: What is import duty? Which are the taxable objects and the taxable objects of the import duty and the export duty?