DECISION

ON PROMULGATION OF PROCEDURES FOR DUTY EXEMPTION, DUTY REDUCTION, DUTY REFUND, DUTY CANCELLATION, HANDLING OF OVERPAID DUTIES, LATE PAYMENT INTERESTS, AND FINES FOR EXPORTED AND IMPORTED GOODS

THE DIRECTOR OF THE GENERAL DEPARTMENT OF CUSTOMS

Pursuant to the Law on Customs dated June 23, 2014;

Pursuant to the Law on Import and Export Duties dated April 6, 2016;

Pursuant to the Law on Tax Administration dated June 13, 2019;

Pursuant to Decree No. 108/2015/ND-CP dated October 28, 2015 of the Government on guidelines for the Law on Special Excise Duty and the Law on amendments to the Law on Special Excise Duty;

Pursuant to Decree No. 134/2016/ND-CP dated September 1, 2016 of the Government on guidelines for the Law on Import and Export Duties; Decree No. 18/2021/ND-CP dated March 11, 2021 of the Government on amendments to the Government's Decree No. 134/2016/ND-CP dated September 1, 2016 on guidelines for the Law on Import Tax and Export Duties;

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Pursuant to Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government on elaboration of the Law on Tax Administration;

Pursuant to the Circular No. 19/2014/TT-BTC dated February 11, 2014 of the Minister of Finance regulating the procedures for temporary import for re-export, destruction and transfer for cars and motorcycles of the persons entitled to privileges and immunities in Vietnam; Circular No. 27/2021/ TT-BTC dated April 19, 2021 of the Minister of Finance on amendment to Circular No. 19/2014/TT-BTC dated February 11, 2014 of Minister of Finance on procedures for temporary import, re-export, disposal and transfer of automobiles and mopeds of beneficiaries of privileges and immunities in Vietnam;

Pursuant to Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Minister of Finance on customs procedures, customs supervision and inspection, export duty, import duty, and tax administration applied to exports and imports; Circular No. 39/2018/TT-BTC dated April 20, 2018 of the Minister of Finance on amendments to Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Minister of Finance on customs procedures, customs supervision and inspection, export duty, import duty, and tax administration applied to exports and imports;

Pursuant to Circular No. 174/2015/TT-BTC dated November 10, 2015 of the Minister of Finance on guidelines for the accounting operations of tax and other revenues for imported and exported goods; Circular No. 112/2018/TT-BTC dated November 15, 2018 of the Minister of Finance on amendments to the Minister's Circular No. 174/2015/TT-BTC dated November 10, 2015 of the Minister of Finance on guidelines for the accounting operations of tax and other revenues for imported and exported goods;

Pursuant to Circular No. 77/2017/TT-BTC dated July 28, 2017 of the Minister of Finance on guidelines for the state budget accounting regime and professional activities of the state treasury; Circular No. 19/2020/TT-BTC dated March 31, 2020 of the Minister of Finance on amendments to the Circular No. 77/2017/TT-BTC dated July 28, 2017 of the Minister of Finance on guidelines for the state budget accounting regime and professional activities of the state treasury;

Pursuant to Circular No. 80/2019/TT-BTC dated November 15, 2019 of the Minister of Finance on guidelines for customs procedures, management of taxes, fees and charges for exported and imported goods under Decree No. Decree No. 14/2018/ND-CP dated January 23, 2018 of the Government on elaboration of border trade activities.

Pursuant to Circular No. 81/2019/TT-BTC dated November 15, 2019 of the Minister of Finance regulating risk management in customs operations;

Pursuant to Circular No. 06/2021/TT-BTC dated January 22, 2021 of the Minister of Finance on guidelines for the Law on Tax Administration dated June 13, 2019 on tax administration for exported and imported goods;

Pursuant to Decision No. 65/2015/QD-TTg dated December 17, 2015 of the Prime Minister defining the functions, tasks, powers and organizational structure of the General Department of Customs affiliated to the Ministry of Finance;

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HEREBY DECIDES:

Article 1. Promulgate together with this Decision the Procedures for duty exemption, duty reduction, duty refund, duty cancellation, handling of overpaid duties, late payment interests, and fines for exported and imported goods and forms appended hereto.

The tax exemption procedures enclosed with this Decision does not apply to specialized duty-free imported goods directly serving security and national defense purpose; duty-free exported and imported goods under international treaties; duty-free goods which are luggage of people on exit or entry.

Article 2. Regulated entities of the Procedures issued together with this Decision are the customs authorities and officers involved in the implementation of this Decision in connection with the performance of procedures for tax exemption, tax reduction, tax refund, tax cancellation, handling of overpaid taxes, late payment interests, and fines for exported and imported goods.

Article 3. This Decision comes into force as of the date of signing, supersedes Decision No. 1919/QD-TCHQ dated June 28, 2018 of the Director of the General Department of Customs on promulgating the Procedures for duty exemption, duty reduction, duty refund, duty cancellation, handling of overpaid duties.

During the implementation process, in case the documents referred to in the Procedures attached hereto are amended, supplemented or replaced, the new documents shall prevail. Difficulties which may arise in connection with the implementation should be reported to the General Department of Customs for consideration.

Article 4. Heads of units affiliated to the General Department of Customs shall implement this Decision./.

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PROCEDURES

ON DUTY EXEMPTION, DUTY REDUCTION, DUTY REFUND, DUTY CANCELLATION, HANDLING OF OVERPAID DUTIES, LATE PAYMENT INTERESTS, AND FINES FOR EXPORTED AND IMPORTED GOODS
(Issued together with Decision No. 3394/QD-TCHQ dated December 31, 2021 of the General Director of Customs)

Chapter I

EXEMPTION OF DUTIES ON EXPORTED OR IMPORTED GOODS

Section 1. RECEIPT OF DUTY-FREE LIST REGISTRATION APPLICATION

Article 1. Receipt and assignment of processing duty-free list registration application

1. The cases in which the duty-free list must be notified shall comply with Clause 1, Article 30; Clause 9 Article 28c of Decree No. 134/2016/ND-CP dated September 1, 2016 of the Government on guidelines for the Law on Import and Export Duties as amended and supplemented at Clause 9 Article 1 of Decree No. 134/2016/ND-CP dated September 1, 2016 of the Government on guidelines for the Law on Import and Export Duties; Decree No. 18/2021/ND-CP dated March 11, 2021 of the Government on amendments to the Government's Decree No. 134/2016/ND-CP dated September 1, 2016 on guidelines for the Law on Import Tax and Export Duties, including:

a) Imported fixed assets of entities eligible for investment incentives as prescribed in Clause 11 Article 16 of the Law on Import Tax and Export Duties and Article 14 of Decree No. 134/2016/ND-CP amended and supplemented in Clause 7 Article 1 of Decree No. 18/2021/ND-CP;

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c) Imports serving petroleum activities are exempt from import duties as prescribed in Clause 15 Article 16 of the Law on Export and Import Duties and Article 16 of the Decree No. 134/2016/ND-CP;

d) Imports serving ship building and sea-going vessels for export as prescribed in Clause 16 Article 16 of the Law on Export and Import Duties and Article 17 of the Decree No. 134/2016/ND-CP;

dd) Plant varieties, animal breeds, fertilizers and plant protection substances as prescribed in Clause 12 Article 16 of the Law on Export and Import Duties and Article 18 of the Decree No. 134/2016/ND-CP;

e) Raw materials, supplies and components that cannot be domestically manufactured and are imported for manufacture or assembly of medical equipment of an investment project given priority are exempt from import duties for 05 years from the manufacture commencement date as prescribed in Clause 14 Article 16 of the Law on Export and Import Duties and Article 13 of the Decree No. 134/2016/ND-CP;

g) Raw materials, supplies and components imported for manufacture or information technology products, digital contents or software are exempt from import duties as prescribed in Clause 18 Article 16 of the Law on Export and Import Duties and Article 24 of the Decree No. 134/2016/ND-CP;

h) Unprocessed agricultural products on the List in Appendix VIII issued together with the Decree No. 134/2016/ND-CP, amended at clause 9 Article 1 of Decree No. 18/2021/ ND-CP that are invested in, grown by Vietnamese enterprises, households, household businesses and individuals in provinces of Cambodia that border to Vietnam and imported through border checkpoints of within customs areas as materials for production in Vietnam are exempt from import duties as prescribed in Point d, Clause 1, Article 28 of Decree No. 134/2016/ND-CP, supplemented in Clause 9 Article 1 of Decree No. 18/2021/ND-CP.

2. Duty-free list registration application

Duty-free list registration application shall comply with Clause 3, Article 30 of Decree No. 134/2016/ND-CP as amended and supplemented in Clause 13, Article 1 of Decree No. 18/2021/ND-CP, in specific:

a) In case of electronic duty-free list registration application sent through VNACCS

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a.2) The electronic duty-free list registration application according to the entries in the Form No. 31 of Appendix II issued together with Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Minister of Finance on customs procedures, customs supervision and inspection, export duty, import duty, and tax administration applied to exports and imports, amended and supplemented in Appendix I issued together with Circular No. 39/2018/TT-BTC dated April 20, 2018 of the Minister of Finance on amendments to Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Minister of Finance on customs procedures, customs supervision and inspection, export duty, import duty, and tax administration applied to exports and imports.

a.3) Investment registration certificate, enterprise registration certificate or equivalent document, except for duty exemption cases specified in Clause 15, Article 16 of the Law on Import and Export Duties: 01 photocopy;

a.4) The extract of the economic and technical evaluation or the technical document or the project description: 01 photocopy;

a.5) Certificate of high-tech enterprise or science and technology enterprise or science and technology organization issued by a competent authority if the applicant is a high-tech enterprise or science and technology enterprise or science and technology organization: 01 photocopy;

a.6) Certificate of eligibility for manufacture of medical equipment or an equivalent document in the case of duty exemption specified in Clause 14 Article 16 of the Law on Export and Import Duties: 01 photocopy;

a.7) The petroleum contracts or decision on assignment of petroleum tasks issued by the authority entitled to approve the annual program and budget in the case of duty exemption specified in Clause 15 Article 16 of the Law on Import Tax and Export Duties: 01 photocopy;

a.8) The shipbuilding contract or ship export contract in the case of duty exemption specified in Point b or Point c Clause 16 Article 16 of the Law on Export and Import Duties: 01 photocopy;

a.9) The description of the information technology product, digital content or software production in the case of duty exemption specified in Clause 18 Article 16 of the Law on Export and Import Duties: 01 photocopy;

a.10) The sale contract or goods supply contract according to the bidding result, export or import mandate contract or finance lease contract if the importer and the person that registers the duty-free list are not the same: 01 photocopy;

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If the documents specified in this Clause are sent electronically by a specialized state management agency through the National Single Window Portal, the project owner is not required to submit then when register the duty-free list to the customs authority.

b) In case of submission of a paper duty-free list

The customs authority shall receive a paper duty-free list in case the VNACCS encounters a problem and import of machinery and equipment that must be divided into multiple shipments, thus goods quantity cannot be deducted at the time of importation (hereinafter referred to as combination or assembly line).

b.1) The paper duty-free list (02 originals) according to form No. 06 attached with the monitoring sheet of deduction (01 original) according to form No. 07 Appendix VII issued together with Decree No. 134/2016/ND- CP, as amended and supplemented in Decree No. 18/2021/ND-CP in case the System has problems;

The paper duty-free list (02 originals) according to form No. 06 Appendix VII issued together with Decree No. 134/2016/ND- CP, as amended and supplemented in Decree No. 18/2021/ND-CP in case of import of duty-free goods in combination or assembly line.

b.2) Other documents specified at Point a of this Clause.

3. The project owner shall send the application for registration of the duty-free list before the first declaration of duty-free imports is registered as specified at Point a, Clause 4, Article 30 of Decree No. 134/2016/ND-CP.

4. Receipt and assignment of processing duty-free list registration application

The Customs Department of the province where the project or the applicant’s headquarters is located, the supervisory Customs Department of the project if the project is located in more than one province or the Customs Department of the province where the combination or assembly line is located if the goods are imported as a combination or assembly line shall receive the duty-free list registration application according to the provisions of Point b, Clause 4, Article 30 of Decree No. 134/2016/ND-CP, in specific:

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a.1) Electronic duty-free list registration application sent through VNACCS

The system automatically receives and issues the electronic duty-free list number and sends it to the project owner. The clerical department or the single window division of the Customs Department of the province or city shall receive the paper copies of the remaining documents in the duty-free list registration application, and carry out procedures for registration of incoming documents, keep records in the monitoring book, report to the head of unit to transfer the application to the division in charge.

a.2) Paper duty-free list registration application

The clerical department or the single window division of the Customs Department of the province or city shall receive the paper copies in the duty-free list registration application, and carry out procedures for registration of incoming documents, keep records in the monitoring book, report to the head of unit to transfer the application to the division in charge.

b) Assignment of processing application

Immediately after receiving the electronic duty-free list sent through the VNACCS or receiving paper copies from the clerical department, the head of unit or the head of division assigns officers to process the application.

Article 2. Checking application

Officers assigned to process applications (including the electronic duty-free list and paper duty-free list) shall do the following:

1. Check the completeness and validity of the application

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a) Check the completeness of the documents in the duty-free list registration application;

b) Check the validity of original, photocopy.

2. Check the details of the duty-free list registration application and compare with relevant law provisions

a) Check the contents in the duty-free list registration application

a.1) Information about the enterprise: Name, address, TIN of the enterprise, business lines and fields;

a.2) Information about the project: Project name, objectives, scale and capacity of the project, field and area of ​​implementation of the investment project, time limit for disbursement of the project, number of employees of the project (if any), economic and technical evaluation, technical documents of the project;

a.3) Information about duty-free imported goods: Name, quality specification, quantity, type, unit, expected value/value, and corresponding duty-free code on the duty-free list;

a.4) Information in relevant documents specified in Clause 3, Article 30 of Decree No. 134/2016/ND-CP, as amended and supplemented in Clause 13, Article 1 of Decree No. 18/2021/ND-CP;

a.5) Electronic data on the data processing system of the customs authority, other relevant documents and data collected by the customs authority (if any).

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b.1) Check if the goods on the duty-free list are eligible for investment incentives, tax incentives and eligible for duty-free list registration;

b.2) Check if the goods on the duty-free list are eligible for the investment business lines, objectives, scale and capacity of the project, production facilities, and use of duty-free goods; consistent with the technical and economic evaluation, the project's technical documents and other relevant documents (if any); has corresponding quantities, categories and value of the agricultural products to be harvested stated in the contract or agreement with the Cambodian party on investment assistance, farming and receiving agricultural products;

b.3) Check the goods on the duty-free list, if they are eligible for duty exemption because they meet the condition that they cannot be produced domestically, they must not be on the list of goods that can be produced domestically according to regulations and on guidelines for documents of the Ministry of Planning and Investment;

b.4) Compare with the grounds for determining duty-free imported goods according to regulations of relevant ministries and central authorities;

b.5) ​​Compare with guiding documents of the Ministry of Finance and the General Department of Customs (if any).

Article 3. Actions after checking application

1. For the electronic duty-free list sent through the VNACCS

a) In case of requesting the project owner to supplement, explain

a.1) The processing officer shall make a Report form No. 01/TT-TXNK issued together with this Procedure together with the application and report to the head of division and submit it to the head of unit for approval.

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a.2.1) In case the project owner makes supplementation and explanation

In case the project owner or the person authorized by the project owner explains in person to the customs authority, the processing officer shall make a working record using form No. 12/TXNK Appendix I issued with Circular No. 06/2021/TT-BTC dated January 22, 2021 of the Minister of Finance on guidelines for the Law on Tax Administration dated June 13, 2019 on tax administration for exported and imported goods.

After the project owner makes supplementation and explanation, the processing officer shall follow the instructions in Articles 2 and 3 of this Procedure.

a.2.2) In case the project owner fails to make supplementation or explanation

After 05 working days from the date the customs authority responds through the VNACCS, if the project owner fails to make any supplementation or explanation, the customs authority shall notify the project owner of the ineligibility for receiving the duty-free list.

b) Eligibility for receiving the duty-free list

b.1) The processing officer shall make a report form No. 01/TT-TXNK issued together with this Procedure together with the application and report to the head of division and submit it to the head of unit for approval.

b.2) Issue a general management code according to the following structure: Code of applicant for registration of duty-free list-year of registration-ordinal number (Example: 34CC-2015-001).

General management code is the code assigned to each duty-free project. Each project can have multiple electronic duty-free lists. The issuance of the general management code is monitored by an external register of the VNACCS and updated in the "General management code" entry when approving the electronic duty-free list.

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b.4) In case it is important to note that the customs authority where the import procedures are carried out to check details (Example: Checking the eligibility requirements pertaining to creating fixed assets; the goods that have not been produced domestically; ...) The processing officer shall:

- In the report made according to form No. 01/TT-TXNK issued together with this Procedure, the processing officer shall report to the head of unit the contents that need to be noticed by the customs authority where customs procedures are carried out in order to check details;

- In the notes section of the customs authority on the duty-free list, the processing officer shall clearly specify the contents to be noted for the customs authority where the import procedures are carried out to check details.

c) In case the duty-free list is not accepted

c.1) The processing officer shall make a Report form No. 01/TT-TXNK issued together with this Procedure together with the application and report to the head of division and submit it to the head of unit for approval.

c.2) Input information into the VNACCS about non-receipt of the duty-free list (goods not eligible for duty exemption) and respond to the project owner via CTL (code N).

The processing officer transfers all the documents attached to the duty-free list registration application to the clerical department to send back to the project owner.

2. For the paper duty-free list

a) In case of requesting the project owner to supplement, explain

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a.2) The processing officer shall transfer the notice of supplementation and explanation of the duty-free list registration application to the clerical department to send to the project owner.

a.2.1) In case the project owner makes supplementation and explanation

In case the project owner or the person authorized by the project owner explains in person to the customs authority, the processing officer shall make a working record using form No. 12/TXNK Appendix I issued with Circular No. 06/2021/TT-BTC.

After the project owner has supplemented and explained the duty-free list registration application, the processing officer shall perform the tasks sequentially according to the instructions in Articles 2 and 3 of this Procedure.

a.2.2) In case the project owner fails to make supplementation and explanation

After 05 working days from the date the project owner receives the paper notification from the customs authority about the supplementation and explanation of the application, but the project owner does not make the supplementation or explanation, the customs authority shall notify the project owner of insufficient grounds to receive the duty-free list.

b) Eligibility for receiving the duty-free list

b.1) The processing officer shall make a Report form No. 01/TT-TXNK issued together with this Procedure together with the application and report to the head of division and submit it to the head of unit for approval.

After the head of unit approves 02 duty-free lists and 01 original of the deduction monitoring sheet, the officer shall input the monitoring book of the duty-free list, the deduction monitoring sheet and transfer the clerical department to stamp, issue and return to the project owner 01 original of the duty-free list, 01 original of the deduction monitoring sheet; save 01 original of the duty-free list.

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b.2) In case it is important to note that the customs authority where the import procedures are carried out to check details (Example: Checking the eligibility requirements pertaining to creating fixed assets; the goods that have not been produced domestically; ...) The processing officer shall:

- In the report made according to form No. 01/TT-TXNK issued together with this Procedure, the processing officer shall report to the head of unit the contents that need to be noticed by the customs office where customs procedures are carried out in order to check details;

- In the notes section of the customs authority on the duty-free list, the processing officer shall clearly specify the contents to be noted for the customs authority where the import procedures are carried out to check details.

c) In case the duty-free list is not accepted

The processing officer shall make a report according to form No. 01/TT-TXNK issued together with the Process, a draft notice to send to the project owner about non-receipt of the duty-free list, made according to the form No. 06/ TXNK Appendix I promulgated together with Circular No. 06/2021/TT-BTC with the application and report to head of division for submission to the head of unit for approval.

After the head of unit approves, the processing officer will transfer the notice with the entire duty-free list registration application to the clerical department to send to the project owner.

Article 4. Amendment to the duty-free list

1. Cases in which the duty-free list is amended

a) The project owner has notified the duty-free list to the customs authority but discovered that: there are errors or entries need to be amended according to the provisions of Clause 5, Article 30 of Decree No. 134/2016/ND-CP;

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2. The time for amendment to the duty-free list must be made before the time of importing goods as prescribed in Clause 5, Article 30 of Decree No. 134/2016/ND-CP.

3. Application for amending the duty-free list shall comply with Clause 5, Article 30 of Decree No. 134/2016/ND-CP, including relevant documents to prove that the amendment is appropriate for the needs of the project.

4. Procedure for receipt, examination, handling and amendment to the duty-free list

The procedure for receipt, examination, handling and amendment to the duty-free list shall comply with Articles 1, 2 and 3 of this Procedure. In case of being eligible for amendment to the duty-free list, the following procedures shall be done:

a) For the electronic duty-free list sent through the VNACCS

The customs authority records the processing results into the System and gives feedback to the project owner on accepting amendments to the duty-free list through the CTL (Code I).

b) For the paper duty-free list

b.1) The customs authority shall receive the original of the duty-free list with the original notice of deduction monitoring sheet, 02 originals of the amended duty-free list and 01 original of the amended deduction monitoring sheet and other relevant documents. relevant documents to prove that the amendment is suitable for the project (the amended duty-free list and the amended deduction monitoring sheet are built on the basis of the remaining quantity of goods on the duty-free list), the original notice of deduction monitoring sheet and the contents that need to be amended).

b.2) The head of unit approves the acceptance of amendments to the duty-free list, confirms in the original of duty-free list and deduction monitoring sheet that were initially notified of the cessation of duty-free import.

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b.3) The clerical department sends to the project owner 01 original of the amended duty-free list with the amended deduction monitoring sheet and the original of the duty-free list with 01 copy of the original notice of deduction monitoring sheet (noted the cessation of duty-free import).

b.4) The processing officer that amends the duty-free list shall keep 01 original of the amended duty-free list; 01 copy of the duty-free list registered initially (noted the cessation of duty-free import) with the original of the deduction monitoring sheet.

b.5) ​​In case only the entry "Estimated time to finish exporting and importing duty-free goods" is amended, the customs authority shall receive the original of the duty-free list together with the original deduction monitoring sheet, relevant documents to substantiate the amendment and do as follows:

b.5.1) The processing officer who handles the draft document shall notify the project owner of the confirmation of the amendment to the import and export termination time on the duty-free list, clearly stating that the contents of this official letter is an integral part of the duty-free list No... date ... and the deduction monitoring sheet previously issued, and submit them to the head of unit for confirmation;

b.5.2) The clerical department returns to the project owner the original of the official letter certifying the amendment contents on the duty-free list, enclosed with the original of the duty-free list and the original deduction monitoring sheet;

b.5.3) The department that receives the duty-free list registration application shall keep a photocopy of the duty-free list together with the original deduction monitoring sheet and the original of the official letter certifying the amendment contents on the duty-free list together with the original duty-free list registration application.

Notes: In case of receiving the duty-free list registration application by combination or assembly line, only the duty-free list is required, the deduction monitoring sheet is not required.

Article 5. Stop using the duty-free list

1. Stop using the duty-free list

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a.1) An investment project has its investment certificate revoked by a competent authority, and operations of the investment project are amended (such as adjustment of scale, objectives, location, etc. investment incentives) or the operations of the investment project are terminated;

a.2) An investment project that transfers all or part of a project eligible for investment incentives to other organizations or individuals as prescribed in Point d Clause 5 Article 31 of Decree No. 134/2016/ND- The CP is amended and supplemented in Clause 14, Article 1 of Decree No. 18/2021/ND-CP.

b) Time to stop using the duty-free list

b.1) As soon as practicable after the customs authority receives information from the investment authority or the competent authority or the project owner about the revocation of the investment certificate, adjustment of the operation of the investment project or termination the operation of the investment project;

b.2) As soon as practicable after the customs authority carries out the inspection and detects that the project has had its investment certificate revoked, its operation has been amended, or its operation has been terminated in accordance with the laws on investment and tax.

c) Procedure for stopping the use of the duty-free list

c.1) The processing officer file shall make a report according to form No. 01/TT-TXNK issued together with this Procedure, the draft notification to the project owner about stopping the use of the duty-free list and withdrawing the deduction monitoring sheet for the case of the paper duty-free list, report to the head of division and submit it to the head of unit for approval. After the head approves, the processing officer shall do the following:

c.1.1) For the electronic duty-free list, the processing officer shall review and check the duty-free list, stop using the duty-free list through CTL (P-Code) and respond information to the project owner through the VNACCS.

c.1.2) For the paper duty-free list, the processing officer shall notify the project owner of the stop using the duty-free list and request the re-presentation of the original of the duty-free list enclosed with the attached deduction monitoring sheet for customs authorities.

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c.2) The Customs Department that receives the duty-free list shall send a written notice to the affiliated Customs Sub-Departments and the Customs Department of the province or city of the stop using the duty-free list.

c.3) The customs authority where duty exemption has been processed according to the duty-free list shall collect tax and late payment interest in full, handle violations according to regulations (if any) in accordance with the terminated or adjusted project, notify handling results to the Customs Department where the duty-free list is received.

2. Regarding the investment project with capital of at least 6.000 billion VND, but at least 6.000 billion VND has not been disbursed within 03 days from the issuance date of the Certificate of Investment Registration or written approval for investment guidelines; or at least 6.000 billion VND has been disbursed within 03 days from the issuance date of the Certificate of Investment Registration or written approval for investment guidelines but the criterion for total revenue or employees is not satisfied with regulations of investment law, the customs authority shall do as follows:

a) The Customs Department that receives the duty-free list shall send a written notice to the affiliated Customs Sub-Departments and the Customs Department of the province or city that the duty exemption has not been processed according to the duty-free list.

b) The customs authority where duty exemption has been processed according to the duty-free list shall collect tax and late payment interest in full, handle violations according to regulations (if any) and notify handling results to the Customs Department where the duty-free list is received.

Article 6. Time limit for receiving and processing duty-free list registration applications, amendments to duty-free lists

1. Time limit for receiving and processing duty-free list registration application

Within 03 working days from the date of receipt of the application, the customs authority shall notify the project owner the following:

a) The duty-free list has been received;

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c) Ineligibility for duty exemption.

2. The time limit for receiving and processing applications of amendment to the duty-free list shall comply with the regulations on the time-limit for receipt and processing of the duty-free list registration application specified in Clause 1 of this Article.

Section 2. PROCEDURES FOR EXEMPTION OF DUTIES ON EXPORTED OR IMPORTED GOODS

Article 7. Checking duty exemption application

The processing officer shall check duty exemption applications as follows:

1. Check the completeness and validity of the application

Check the documents in the duty exemption application according to Articles 5, 7, from Article 8 to Article 19, Article 21 to Article 28, Article 29, Article 31 of Decree No. 134/2016/ND-CP (amended by Article 1 of Decree No. 18/2021/ND-CP), Clause 1, Article 14 of Circular No. 06/2021/TT-BTC, in specific:

a) Check the completeness of the documents in the duty exemption application;

b) Check the validity of original and photocopy documents.

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a) Check the duty exemption application (generally applicable to duty-exempt subjects)

a.1) Check information of the exporter and importer: Name, address, TIN of the enterprise, business lines and fields, law observance process of the enterprise (if necessary);

a.2) Check information about export and import contracts, entrustment contracts, financial leasing contracts, manufacturing contracts, winning contracts...;

a.3) Check information about duty-free imported and exported goods: a.3) Check information about duty-free imported and exported goods: Name, quantity, unit, specification, type, symbol, code, origin, unit price, total value price, duty exemption code, duty-free quota book, exempt duty amount;

a.4) Check the guarantee documents of the credit institution, deposit payment documents for the case of goods traded in the form of temporary import for re-export;

a.5) Check the document requesting delivery of goods in Vietnam of the foreign entity, customs declaration of the goods imported within the country that have completed import procedures for in-country import and export according to Article 10, Article 12 of Decree No. 134/2016/ND-CP, amended and supplemented in Clauses 4 and 6, Article 1 of Decree No. 18/2021/ND-CP;

a.6) Check the information in the duty exemption application against the Ministry of Planning and Investment's List of domestically produced goods, the List or criteria for determining duty-free imported goods of the Ministries, central authorities, guiding documents of the Ministry of Finance, the General Department of Customs, the relevant management ministries;

a.7) Check the document of the superior governing agency on the permission to receive gifts given by a foreign organization or individual to a Vietnamese organization whose operating cost is covered by state budget as prescribed in Article 8 of Decree No. 134/2016/ND-CP, as amended at Clauses 3 and 20, Article 1 of Decree No. 18/2021/ND-CP;

a.8) Checking the temporary import license for automobiles, motorcycles, and relevant documents (if any) for goods being automobiles and motorbikes of the entities eligible for privileges and immunities in Vietnam according to the Circular No. 19/2014/TT-BTC dated February 11, 2014 of the Minister of Finance regulating the procedures for temporary import for re-export, destruction and transfer for cars and motorcycles of the persons entitled to privileges and immunities in Vietnam; Circular No. 27/2021/ TT-BTC dated April 19, 2021 of the Minister of Finance on amendment to Circular No. 19/2014/TT-BTC dated February 11, 2014 of Minister of Finance on procedures for temporary import, re-export, disposal and transfer of automobiles and mopeds of beneficiaries of privileges and immunities in Vietnam;

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a.10) Check the border ID card or entry and exit permit or citizen identification card or other entry-exit valuable papers issued in accordance with the law;

a.11) Check other relevant documents in accordance with the laws on customs and taxes.

b) In case the duty-free list must be registered, in addition to the requirements at Point a of this Clause, the processing officer shall do the following:

b.1) Check the goods information on the declaration with the goods on the duty-free list, ordinal number of goods on the duty-free list, import deadline on the duty-free list;

b.2) Check the information of the customs authority where the duty-free list is received as noted on the duty-free list;

b.3) Check the information in the duty exemption application with the provisions of the law on investment, the law on tax.

3. Compare with other relevant information

a) Information about the manufacturing facility, re-processing facility, and the storage facility of goods imported for processing or manufacturing for export, information on inspection results of the production facility, re-processing facility, or storage facility of goods imported for processing or manufacturing for export according to the law on customs;

b) Information on the processing contract, the re-processing contract, the processing contract appendix, the re-processing contract appendix, for goods imported for processing;

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Article 8. Processing duty exemption applications

1. Electronic customs declaration

a) Application that must be supplemented or explained

a.1) The processing officer proposes to the head of unit on the request of the taxpayer to supplement and explain the application (specify documents to be supplemented and explained) in the box “Updated results and opinions of processing officer” on the System;

a.2) After the head of unit approves in the box "Head’s opinion", the processing officer shall notify the taxpayer through the IDA01/EDA01 (Code A).

The explanation and supplementation of duty exemption applications shall comply with the customs procedures generally applicable to exported and imported goods, which are effective at the time of customs clearance.

In case the taxpayer explains in person to the customs authority, the processing officer shall make a working record using form No. 12/TXNK Appendix I issued with Circular No. 06/2021/TT-BTC.

After the taxpayer explains and supplements the duty exemption application, the customs authority shall continue to examine and handle it according to Articles 7, Article 8 of this Procedure.

b) Application eligible for duty exemption

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b.1.1) The processing officer proposes the head of unit to grant duty exemption in the box "Updated results and opinions of the processing officer" on the System.

b.1.2) After the head of unit approves in the box "Head’s opinion", then accept the declaration and move on to the next tasks of the customs procedure. The grant of duty exemption shall be done right in the customs clearance.

b.2) If the duty-free list registration application is required

b.2.1) For electronic duty-free list sent through the VNACCS

b.2.1.1) Follow the provisions in Item b.1.1 and b.1.2 of this point.

b.2.1.2) The system automatically deducts the quantity of duty-free goods corresponding to the quantity of goods in the duty-free list.

b.2.2) For the paper duty-free list:

b.2.2.1) Follow the provisions in Item b.1.1 and b.1.2 of this point.

b.2.2.2) The processing officer shall check the declaration of the license code and the number of the duty-free list in entry 1.38 "Import license" on the import customs declaration in Box 1: "DMTL", Box 2: Number of the paper duty-free list registered with the customs authority.

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When the project owner imports all the goods specified in the deduction monitoring sheet, the customs authority where the final procedures are carried out shall certify in the original copy of the deduction monitoring sheet of the taxpayer, keep 01 photocopy, give the taxpayer 01 photocopy, send the original to the customs authority where the deduction monitoring sheet is issued. If the customs authority where the duty-free list is registered is the customs authority where the final procedures are carried out, the original shall be kept for inspection of the import and use of duty-free goods and shall be returned to the taxpayer 01 photocopy of deduction monitoring sheet.

c) Application ineligible for duty exemption

c.1) The processing officer proposes the head of unit not to grant duty exemption in the box "Updated results and opinions of the processing officer" on the System;

c.2) After the head of unit approves in the box "Head’s opinion", the processing officer shall notify the taxpayer through IDA01/EDA01 (Code A), perform relevant procedures to collect taxes, take further actions according to regulations and move on to the next tasks of the Customs Procedures.

2. Paper customs declaration

a) Application that must be supplemented and explained

a.1) The processing officer shall make a report according to form No. 01/TT-TXNK issued together with the Process, a draft notice about the supplementation and explanation of the application, made according to the form No. 05/ TXNK Appendix I promulgated together with Circular No. 06/2021/TT-BTC with the application and report to head of division for submission to the head of unit for approval.

a.2) After the head of unit approves, the processing officer shall save the declaration in the duty exemption application, transfer the clerical department to send a notice to the taxpayer.

The explanation and supplementation of duty exemption applications shall comply with the customs procedures generally applicable to exported and imported goods, which are effective at the time of customs clearance.

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After the taxpayer explains and supplements the duty exemption application, the customs authority shall continue to examine and handle it according to Articles 7, Article 8 of this Procedure.

b) Application eligible for duty exemption

b.1) If the duty-free list registration application is not required

b.1.1) The processing officer shall make a report form No. 01/TT-TXNK issued together with this Procedure regarding the eligibility of the duty-free goods and report to the head of division and submit it to the head of unit for approval;

b.1.2) After obtaining approval from the head of unit, the processing officer shall save the report in the duty exemption application, grant the duty exemption right in the customs clearance, sign and stamp and move on to the next tasks of the Customs procedure.

As soon as practicable after the declaration has been cleared, the processing officer synchronizes the duty-free import declaration data from the E-customs system to the Exemption, reduction and refund system to manage duty-free data.

b.2) If the duty-free list registration application is required

b.2.1) For electronic duty-free list sent through the VNACCS

b.2.1.1) The processing officer shall perform the following tasks:

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- Update information in the monitoring book for duty exemption cases according to paper customs declarations;

- Guide the taxpayer (in case the taxpayer is project owner) or instruct the taxpayer to notify project owner (in case the taxpayer is not project owner) to make adjustments of the quota of used goods on the duty-free list corresponding to the quantity of the actual imported goods line which has been granted duty exemption;

- Request to the head of unit to sign a notice and send it to the customs authority where the duty-free list is received about the duty exemption has been granted according to the paper customs declaration.

b.2.1.2) The customs authority of the place of where the duty-free list is registered shall urge the project owner to adjust the duty-free list; inspect, review and accept the amendment to the duty-free list if it is suitable with the actual imported goods.

b.2.2) For the paper duty-free list

The processing officer checks the number and date of the duty-free list in the box "Description of goods" on the customs declaration; check information on goods in the duty-free list.

Update and deduct the quantity of duty-free goods in the original project owner's deduction monitoring sheet, sign for confirmation on the deduction monitoring sheet, save 1 copy of the duty-free list, the deduction monitoring sheet, clearly stating the names of goods, quantity of imported duty-free goods, together with the import application (including the case where goods of duty-exempt subjects are transferred to other duty-exempt subjects), return to the taxpayer the original of the duty-free list and the deduction monitoring sheet.

When the project owner imports all the goods specified in the deduction monitoring sheet, the customs authority where the final procedures are carried out shall certify in the original copy of the deduction monitoring sheet of the taxpayer, keep 01 photocopy, give the taxpayer 01 photocopy, send the original to the customs authority where the deduction monitoring sheet is issued. If the customs authority where the duty-free list is registered is the customs authority where the final procedures are carried out, the original shall be kept for inspection of the import and use of duty-free goods and shall be returned to the taxpayer 01 photocopy of deduction monitoring sheet.

b.3) Duty exemption for imported and exported goods of border residents

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c) Application ineligible for duty exemption

c.1) The processing officer shall make a report according to form No. 01/TT-TXNK issued together with the Process, a draft notice about the ineligibility for duty exemption, made according to the form No. 06/ TXNK Appendix I to Circular No. 06/2021/TT-BTC with the application and report to head of division for submission to the head of unit for approval.

c.2) After the head of unit approves, the processing officer shall save the report in the duty exemption application, transfer the clerical department to send a notice to the taxpayer and move on to the next tasks of the Customs procedure.

For applications ineligible for duty exemption, the officer shall carry out relevant procedures to collect tax and handle violations according to regulations (if any).

Article 9. Inspection of the use of duty-free goods for goods subject to a duty-free list registration

1. Inspect the use of duty-free imported goods in accordance with Article 31a of Decree No. 134/2016/ND-CP, as supplemented in Clause 15, Article 1 of Decree No. 18/2021/ND-CP, in specific:

a) In case the project is in the process of capital construction

a.1) Regarding goods being raw materials and supplies used to manufacture machinery and equipment specified at Point a, Clause 11, Point b, Clause 15, Point a, Clause 16, Article 16 of the Law on Import and Export Duties, and the inspection shall be carried out within 60 days from the date of receipt of the project owner's notice on the completion of machinery and equipment manufacturing.

a.2) Regarding imported goods on the list of duty-free goods by combination or assembly line, the inspection shall be carried out within 60 days from the date of receipt of the project owner's notice on the completion of the installation of combination or assembly line.

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2. Authority to inspect

a) The Director of the Customs Department of the province or city where the list of duty-free goods is received shall inspect the use of duty-free goods at the head office of the project owner for the cases mentioned at Point a, Clause 1 of this Article.

b) The Director of the Customs Department of the province or city where the list of duty-free goods is received shall inspect the use of duty-free goods according to the principle of risk management for the cases specified at Point b, Clause 1 of this Article.

3. Procedures for inspection

Procedures for inspection shall comply with the procedures for post-customs clearance inspection in accordance with the law on customs.

4. Matters to be inspected

a) Inspect the duty-free list registration application; duty-free list; notify the use of duty-free imported goods and relevant documents;

b) Inspect the customs application of duty-free imported goods; check the name, quantity and type of duty-exempt imported goods, record the results of actual inspection of goods on the customs declaration and other relevant documents;

c) Inspect the actual use of duty-free imported goods and goods in stock;

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dd) Inspect the quantity and type of damaged or lost goods or destroyed goods;

e) Inspect the production process, actual consumption rates for manufacturing in projects of importing duty-free goods as prescribed in Article 15 of Decree No. 134/2016/ND-CP as amended and supplemented in Clause 8, Article 1 of Decree No. 18/2021/ND-CP, Article 23 Decree No. 134/2016/ND-CP;

g) Inspect accounting books and vouchers, payment vouchers; the accounting for duty-free imported goods;

h) Inspect the production facility, production process, design drawings, actual consumption rates for manufacturing in case raw materials and supplies used for manufacturing are exempt from duty as prescribed at Point a, Clause 11, Point b, Clause 15, Point a, Clause 16, Article 16 of the Law on Import and Export Duties;

i) Check design drawings, technical documents, installation diagrams, synchronously inspect machinery and equipment that must be divided into multiple shipments without deduction according to the quantity of goods at the time of registration of the customs declaration;

k) Check relevant vouchers, documents and data (where necessary).

5. Priority criteria for customs authorities to select for inspection according to the principles of risk management, applied in succession as follows:

a) Criterion pertaining to the duty-exempt amount

Applying the principle of duty-exempt amount from high to low is as follows:

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a.2) Investment projects with a duty-exempt amount of over VND 5 billion to VND 10 billion;

a.3) Investment projects with a duty-exempt amount of over VND 1 billion to VND 5 billion;

a.4) Investment projects with a duty-exempt amount from VND 100 million to VND 1 billion;

a.5) Investment projects with a duty-exempt amount of less than VND 100 million.

b) Criterion pertaining to the enterprise's law observance process

Complying with the enterprise evaluation criteria issued together with Decision No. 623/QD-TCHQ dated December 31, 2020 on the promulgation of a set of indicators of risk management criteria in customs operations.

c) Criterion pertaining to project

c.1) Investment projects in rural areas employing 500 or more employees (excluding part-time workers and employees with less than 12-month labor contracts);

c.2) Projects with duty-free imported goods subject to special excise duty;

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c.4) A project that shows signs of using duty-free goods for improper purposes;

c.5) Projects detected by competent authorities that show signs of violation of tax laws, customs laws, and investment laws.

6. Actions against inspection results

The customs authority shall collect duties, late payment interest and fines (if any) in the following cases:

a) Goods that are not exempt from duties according to the Law on Import and Export Duties but declared to be exempt from duties and have been cleared according to the taxpayer's declaration;

b) Goods which have been exempted from duties but the project owner uses them for improper purposes of duty exemption, transfers or sold domestically instead of being re-exported without declaring to the customs authority or declaring to the customs authority after the transfer is made or the goods are sold domestically;

c) Goods being materials and supplies that are imported more than 5 years from the date of commencement of production as prescribed in Article 15 of Decree No. 134/2016/ND-CP as amended and supplemented in Clause 8 of Article 2. 1 Decree No. 18/2021/ND-CP, Article 23 Decree No. 134/2016/ND-CP;

d) Imported goods do not conform to the duty-free list registered with the customs authority;

dd) Goods imported in other cases that violate the provisions of law on tax, tax administration, and law on customs.

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a) Documents of inspection of the use of duty-free goods and results of handling of inspection results shall be kept together with the duty-free list registration applications at the unit.

b) In case the inspection results determine that the project owner has violated the provisions of the law on tax, tax administration, and the law on customs, the Customs Department of the province or city must report the inspection results and the results of handling inspection to the General Department of Customs within 15 days from the date of obtaining results.

Chapter II

REDUCTION OF DUTIES ON EXPORTED OR IMPORTED GOODS

Article 10. Receipt and verification of duty reduction applications

1. Receipt of duty reduction applications

a) Duty reduction cases shall comply with Article 32 of Decree No. 134/2016/ND-CP as amended and supplemented in Clause 16, Article 1 of Decree No. 18/2021/ND-CP, including:

a.1) Duty reduction applications submitted at the time of customs procedures;

a.2) Duty reduction applications submitted after the time of customs procedures.

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Duty reduction applications comply with Clause 1, Article 15 of Circular No. 06/2021/TT-BTC.

The Sub-department of Customs where the import and export declaration that generates the reduced duty amount proposed by the taxpayer is registered, is responsible for receiving the duty reduction application.

b.1) Application sent through the Duty exemption, reduction and refund system (hereinafter referred to as electronic application)

The taxpayer's application for duty reduction is sent through the Duty exemption, reduction and refund system of the customs authority according to the items in form No. 7 Appendix II to Circular No. 06/2021/TT-BTC.

The Duty exemption, reduction and refund system automatically receives the duty reduction application and automatically responds that the duty reduction application of the taxpayer has been sent to the customs authority.

b.2) Paper application

If there is a problem with the Duty exemption, reduction and refund system, the taxpayer shall send an application for duty reduction by post or send it in person to the customs authority using form No. 15/TXNK Appendix I issued with Circular No. 06/2021/TT-BTC.

c) Assignment of processing applications

c.1) Electronic application

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c.2) Paper application

The clerical department receives, stamps "Incoming document", enters the official document book as in the case of receiving incoming document, and transfers it to the head of Customs Sub-Department to assign duty reduction applications to relevant entities.

d) Determining the time to submit the duty reduction application

d.1) Electronic application

The processing officer shall update information on the Duty exemption, reduction and refund system to the time of submission of the duty reduction application as follows:

- Duty reduction applications submitted at the time of customs procedures;

- Duty reduction applications submitted after the time of customs procedures.

The head of division, the head of unit confirms the time to submit duty reduction applications on the Duty exemption, reduction and refund system.

d.2) Paper application

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- Duty reduction applications submitted at the time of customs procedures;

- Duty reduction applications submitted after the time of customs procedures.

2. Inspecting duty reduction application

a) Electronic application

a.1) Preliminary inspection

a.1.1) In case the taxpayer sends the application to the wrong address of the competent customs authority, the processing officer shall make a report using the Form No. 01/TT-TXNK attached to this Procedure, draft notice to the taxpayer not to receive their duty reduction application according to form No. 04/TXNK Appendix I issued together with Circular No. 06/2021/TT-BTC, submit to the Head of division, Head of Sub-department for approval. After the head of Customs Sub-Department approves, the processing officer will transfer the application to the clerical department for stamping and send it to the taxpayer.

a.1.2) In case the application is determined ineligible for duty reduction

- For the case that the duty reduction application is submitted at the time of customs clearance, the processing officer shall input the reason for notifying the application is ineligible for duty reduction on the Duty exemption, reduction and refund system, and then transfer it to the head of division, head of Customs Sub-Department for approval. After the head of Customs Sub-Department approves, the processing officer shall give feedback to the taxpayer on the Duty exemption, reduction and refund system.

- For duty reduction applications submitted after the time of customs clearance, the processing officer shall input the information in the report to transfer the application to the superior customs authority, then transfer them to the head of division, head of Sub-department for approval. After the head of Sub-department approves, the Duty exemption, reduction and refund system will transfer the application to the superior customs authority. Customs Departments of provinces and cities shall process duty reduction applications according to Item c.1 point c, Clause 1, Article 12 of this Procedure.

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The processing officer shall check if the duty reduction application is complete and valid according to Clause 1, Article 15 of Circular No. 06/2021/TT-BTC.

a.2.1) If the duty reduction application is complete and valid

- For duty reduction applications submitted at the time of customs clearance, the processing officer shall take the next steps in Clause 1, Article 11 of this Process.

- For duty reduction applications submitted after the time of customs clearance, the processing officer shall input the information in the report to transfer the application to the superior customs authority, then transfer them to the head of division, head of Sub-department for approval. After the head of Sub-department approves, the Duty exemption, reduction and refund system will transfer the application to the superior customs authority. Customs Departments of provinces and cities shall process duty reduction applications according to Item c.2 point c, Clause 1, Article 12 of this Procedure.

a.2.2) If the duty reduction application is incomplete and invalid

The processing officer shall input the taxpayer's information that needs to be added to the Duty exemption, reduction and refund system, and then transfer it to the head of division, the head of Customs Sub-Department for approval. After being approved, the processing officer shall give feedback to the taxpayer. Within 03 working days from the date of receipt of the application, the customs authority must notify the taxpayer of the supplementation needed.

a.2.2.1) In case the taxpayer provides sufficient information, the processing officer shall comply with Item a.2.1, Point a of this Clause.

a.2.2.2) After 05 working days from the date the customs authority responds through the Duty exemption, reduction and refund system, if the taxpayer fails to provide additional information, the Sub-department of Customs shall:

- For the case that the duty reduction application is submitted at the time of customs clearance, the processing officer shall input the reason for notifying that the application is ineligible for duty reduction on the Duty exemption, reduction and refund system, and then transfer it to the head of division, head of Customs Sub-Department for approval. After the head of Customs Sub-Department approves, the processing officer gives feedback to the taxpayer on the Duty exemption, reduction and refund system.

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b) Paper application

b.1) Preliminary inspection

b.1.1) In case the taxpayer sends the application to the wrong address of the competent customs authority, the processing officer shall make a report using the Form No. 01/TT-TXNK attached to this Procedure, draft notice to the taxpayer not to receive their duty reduction application according to form No. 04/TXNK Appendix I issued together with Circular No. 06/2021/TT-BTC, submit to the Head of division, Head of Sub-department for approval. After the head of Customs Sub-Department approves, the processing officer will transfer the application to the clerical department for stamping and send it to the taxpayer.

b.1.2) In case the application is determined ineligible for duty reduction

- For the case that the duty reduction application is submitted at the time of customs clearance, the processing officer shall make a report using form No. 01/TT-TXNK issued hereto, a draft notice stating that the application is ineligible for duty reduction, and then transfer them to the head of division, head of Customs Sub-Department for approval. After the head of Customs Sub-Department approves, the processing officer gives feedback to the taxpayer on the Duty exemption, reduction and refund system.

- For the case that the duty reduction application is submitted after the time of customs clearance, the processing officer shall make a report using form No. 01/TT-TXNK issued hereto, a draft notice, and then transfer them to the superior customs authority, head of division, head of Customs Sub-Department for approval. After the head of Sub-department approves, the Duty exemption, reduction and refund system will transfer the application to the superior customs authority. Customs Departments of provinces and cities shall process duty reduction applications according to Item c.1 point c, Clause 2, Article 12 of this Procedure.

b.2) Check the completeness and validity of the application

The processing officer shall check if the documents in the duty reduction application are complete and valid according to Clause 1, Article 15 of Circular No. 06/2021/TT-BTC.

b.2.1) If the duty reduction application is complete and valid

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b.2.1.2) After notifying the receipt of duty reduction applications, the Sub-department of Customs shall:

- For duty reduction applications submitted at the time of customs clearance, the processing officer shall take the next steps in Clause 2, Article 11 of this Process.

- For the case that the duty reduction application is submitted after the time of customs clearance, the processing officer shall make a report using form No. 01/TT-TXNK issued hereto, a draft notice, and then transfer them to the superior customs authority, head of division, head of Customs Sub-Department for approval. After the head of Sub-department approves, the Duty exemption, reduction and refund system will transfer the application to the superior customs authority. Customs Departments of provinces and cities shall process duty reduction applications according to Item c.2 point c, Clause 2, Article 12 of this Procedure.

b.2.2) If the duty reduction application is incomplete and invalid

The processing officer shall make a report according to form No. 01/TT-TXNK issued together with the Process, a draft notice about the supplementation of the application, made according to the form No. 05/ TXNK Appendix I promulgated together with Circular No. 06/2021/TT-BTC with the application and report to the head of division, the head of Customs Sub-department for approval. After being approved, the processing officer will transfer the application to the clerical department for stamping and send it to the taxpayer. Within 03 working days from the date of receipt of the application, the customs authority must notify the taxpayer of the supplementation needed.

b.2.2.1) In case the taxpayer provides sufficient information, the processing officer shall comply with Item b.2.1, Point b of this Clause.

b.2.2.2) After 05 working days from the date the taxpayer receives the notice of supplementation needed, if the taxpayer fails to supplement information, the Sub-department of Customs shall:

- For the case that the duty reduction application is submitted at the time of customs clearance, the processing officer shall make a report using form No. 01/TT-TXNK issued hereto, a draft notice stating that the application is ineligible for duty reduction, using form No. 06/TXNK issued together with Circular No. 06/2021/TT-BTC, clearly stating that the application is incomplete and invalid, and then transfer them to the head of division, head of Customs Sub-Department for approval. After the head of Customs Sub-Department approves, the processing officer will transfer the application to the clerical department for stamping and send it to the taxpayer.

- For the case that the duty reduction application is submitted after the time of customs clearance, the processing officer shall make a report using form No. 01/TT-TXNK issued hereto, a draft notice, and then transfer them to the superior customs authority, head of division, head of Customs Sub-Department for approval. After the head of Sub-department approves, the Duty exemption, reduction and refund system will transfer the application to the superior customs authority. Customs Departments of provinces and cities shall process duty reduction applications according to Item c.1 point c, Clause 2, Article 12 of this Procedure.

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1. Electronic application

a) Carry out physical inspection of damaged goods

a.1) In case of complete application, the processing officer proposes a physical inspection of damaged goods on the Duty exemption, reduction and refund system, and then transfer it to the head of division or the head of Customs Sub-Department for approval. After the head of Customs Sub-Department approves and assigns the physical inspection of the damaged goods, the Duty exemption, reduction and refund system shall notify the officer assigned to inspect, the head of division and the taxpayer.

The physical inspection of damaged goods shall be carried out in cases where it is necessary and there are conditions for inspection, except for cases where the damaged goods cannot be inspected, such as petrol, oil, liquids, and combustible substances; if the goods are completely damaged due to natural disaster or fire, the Confirmation of loss or damage of goods issued by the assessment service provider shall be prevail as per the law.

a.2) A physical inspection of damaged goods shall:

In addition to the checklist of physical inspection of goods in accordance with the law on customs, the physical inspection of goods shall conduct additional inspection of the following matters:

- Check the documents of export and import consignments that have damage;

- heck the confirmation of damage cause issued by the competent authority in the locality where the damage occurred (the fire certification of the local fire police agency where the fire occurred; the certification issued by one of the following relevant agencies or organizations: police offices of communes, wards and townships; People's Committees of communes, wards and townships; Management boards of industrial parks, Management boards of export processing zones; Economic zone management boards; Border checkpoint management boards; Airport authorities; Port Authorities where force majeure events occurred such as natural disasters, catastrophes, epidemics, unexpected accidents that cause damage to imported materials, machinery and equipment);

- Check the Confirmation of loss or damage of goods issued by an assessment service provider in accordance with the law on the quantity of damaged goods or the actual loss rate of the goods;

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a.3) After physically inspecting the damaged goods, the inspecting officer shall update the information in the draft inspection conclusion on the Duty exemption, reduction and refund system and then save it.

b) Compare results of physical inspection of damaged goods to process the duty reduction application.

b.1) The processing officer compares the results of the physical inspection of the damaged goods with the duty reduction application, checks the entire duty reduction application; insurance documents and other relevant documents to determine the extent of damage.

b.2) Check information about damaged goods (description, code, origin, quantity, type and specification of damaged goods) stored on the inspection conclusion.

b.3) Compare information about the proposed duty-reduced amount with data on VNACCS, VCIS, E-Customs System and related management programs.

c) If the application is eligible for duty reduction

The processing officer proposes grant of duty reduction and input the information in the draft duty reduction decision, then transfers it to the head of division, the head of Customs Sub-Department for approval.

After approval by the head of Customs Sub-Department, the Duty exemption, reduction and refund system will issue a customs management code with a structure consisting of 9 digits: the first two digits are the last two digits of the year in which the decision is issued, and 02 the next digits are the code of the Customs Department of the province or city where the decision is issued, the next 5 digits are the sequence of numbers that increase in each year. The processing officer shall print the draft duty reduction decision according to form No. 12, Appendix VII issued together with Decree No. 134/2016/ND-CP as amended and supplemented in Decree No. 18/2021/ND-CP, transfer it to the head of Customs Sub-Department to sign, then transfer to the clerical department to get the number, stamp and issue.

After the clerical department issues the decision, the officer scans and updates the duty reduction decision number (paper copy) attached to the application, the Duty exemption, reduction and refund system responds to the taxpayer, gives information to relevant divisions to grant the duty reduction.

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The processing officer shall update the information that the goods in the application are not eligible for duty reduction or the application is ineligible for duty reduction, propose not to grant duty reduction, and transfer it to the head of division, the head of Customs Sub-Department for approval.

After the head of Customs Sub-Department approves, the processing officer gives feedback to the taxpayer the reason for not being eligible for duty reduction, and requires the taxpayer to declare and pay enough duty according to regulations.

2. Paper application

a) Carry out physical verification of damaged goods

If the application is complete, the processing officer shall make a report according to form 01/TT-TXNK issued together with this Procedure, propose a physical inspection of the damaged goods, and then transfer it to the head of division, the head of Customs Sub-department for approval. After the head of Customs Sub-Department approves and assigns the physical inspection of damaged goods, the processing officer shall transfer the duty reduction application to the division in charge for physical inspection of goods.

Inspection checklists and inspection records shall comply with Item a.2 point a, Clause 1 of this Article.

After the physical inspection of damaged goods, the division in charge of physical inspection of damaged goods shall hand over the entire application to the officer processing the duty reduction application.

b) Compare results of physical inspection of damaged goods to process the duty reduction application

Compare results of physical inspection of damaged goods with the duty reduction application in accordance with Point b, Clause 1 of this Article.

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The processing officer shall make a report according to form No. 01/TT-TXNK issued together with the Process, a draft duty reduction decision, made according to the form No. 12/ TXNK Appendix VII promulgated together with Decree No. 134/2016/ND-CP, as amended and supplemented in Decree No. 18/2021/ND-CP, and then submit them to the head of division, the head of Customs Sub-department for approval.

After the head of Customs Sub-Department signs the decision on duty reduction, the processing officer shall issue a customs management code according to a structure consisting of 10 digits: 02 first digits are the code of the Customs Sub-department, 02 following digits are the last 02 digits of the year of issuance of the decision, the next 02 digits are the ordinal numbers according to the sequence of natural numbers calculated for each year, the next 04 digits are the duty reduction code for the case that the taxpayer submits duty reduction application at the time of customs clearance (GT01).

After issuing the customs management code, the processing officer will transfer it to the clerical department to get the number, stamp, and send the decision on duty reduction to the taxpayer and the Sub-department of Customs where the proposed duty reduction arises to grant duty reduction.

d) In case the goods in the application are not eligible for duty reduction or the application is ineligible for duty reduction

The processing officer shall make a report according to form No. 01/TT-TXNK issued together with the Process, a draft notice that the goods of the application is ineligible for duty reduction or the application is ineligible for duty exemption, made according to the form No. 06/ TXNK Appendix I to Circular No. 06/2021/TT-BTC, and then report to the head of division, the head of Customs Sub-department for approval.

After the head of Customs Sub-Department approves, signs the notice, the processing officer transfers it to the clerical department to stamp, then sends it to the taxpayer and requires the taxpayer to declare and pay enough duty according to regulations.

Article 12. Procedures for processing duty reduction applications in case taxpayers submit applications after the time of customs clearance

In case the Sub-department of Customs receives, checks and determines that a duty reduction application is complete and valid, it shall transfer the application to the superior customs authority for processing according to Point c, Clause 3 of this Article. 32 Decree No. 134/2016/ND-CP, as amended and supplemented in Clause 16, Article 1 of Decree No. 18/2021/ND-CP. The procedures for processing the duty reduction application are as follows:

1. Electronic application

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b) Heads of Customs Departments of provinces and cities shall assign the processing of duty reduction applications.

c) Verifying application

c.1) In case the application is ineligible for duty reduction or the application is incomplete or incorrect, but within 05 working days from the date the Customs Sub-department responds through the Duty exemption, reduction and refund system, if the taxpayer does not provide additional information, the Customs Department of the province or city shall do as follows:

c.1.1) The processing officer shall update the draft notice stating that the application it is ineligible for duty reduction, clearly stating the reason that the application is ineligible for duty reduction or the application is incomplete or incorrect, and propose the head of division, the head of the Customs Department of the province and city for approval.

c.1.2) After the head of the Customs Department of the province or city approves, the processing officer shall update it into the Duty exemption, reduction and refund system, give feedback to the taxpayer and the Customs Sub-department that has received the duty reduction application.

In case the goods eligible for duty reduction in the customs declaration are also exempt from duty, and there is no data on the payable duty amount (E.g.: Goods imported for outward processing), the Sub-department of Customs that received the duty reduction application shall notify that the application is ineligible for duty reduction or the taxpayer is ineligible for duty reduction, and require the taxpayer to declare and pay the full duty amount corresponding to the quantity of damaged goods not eligible for duty reduction as prescribed. After receiving such a notice, if the taxpayer fails to declare and pay duty as prescribed, the customs authority shall impose a fixed duty amount according to Clause 4, Article 17 of Decree No. 126/ 2020/ND-CP dated October 19, 2020 of the Government on elaboration of the Law on Tax Administration.

c.2) Where it is necessary to carry out physical inspection of goods that have passed the customs supervision area to have sufficient grounds for duty reduction according to Clause 3, Article 32 of Decree No. 134/2016/ND-CP, as amended and supplemented in Clause 16, Article 1 of Decree No. 18/2021/ND-CP, the Customs Department of province/city shall do the following:

c.2.1) The processing officer proposes a physical inspection, inputs information on the decision on post-clearance inspection at the taxpayer's office, and sends it to the head of division, the head of the Customs Department of the province or city for approval. After the head of the Customs Department of the province or city approves, the system automatically sends a notice to the taxpayer.

c.2.2) The physical inspection of goods that have passed the customs supervision area shall comply with Clause 3, Article 32 of Decree No. 134/2016/ND-CP, as amended and supplemented in Clause 16, Article 1 of Decree No. 18/2021/ND-CP.

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c.2.3.1) Check all documents related to the damaged goods such as the confirmation of damage cause issued by the competent authority in the locality where the damage occurred (the fire certification of the local fire police agency where the fire occurred; the certification issued by one of the following relevant agencies or organizations: police offices of communes, wards and townships; People's Committees of communes, wards and townships; Management boards of industrial parks, Management boards of export processing zones; Economic zone management boards; Border checkpoint management boards; Airport authorities; Port Authorities where force majeure events occurred such as natural disasters, catastrophes, epidemics, unexpected accidents that cause damage to imported materials, machinery and equipment);

c.2.3.2) Check details and compare information on damaged goods declared by the taxpayer, the proposed duty-reduced amount with the description, code, origin, and quantity, types, specifications, unit prices and total value of damaged goods recorded in books, accounting vouchers and payment vouchers.

c.2.3.3) The physical inspection of damaged goods shall be carried out in cases where it is necessary and there are conditions for inspection, except for cases where the damaged goods cannot be inspected, such as petrol, oil, liquids, and combustible substances; if the goods are completely damaged due to natural disaster or fire, the Confirmation of loss or damage of goods issued by an assessment service provider shall prevail.

c.2.3.4) In case the goods are imported raw materials, supplies, components, machinery and equipment eligible for duty reduction, but the export and import documents, accounting books and vouchers are completely damaged, the actual damage data cannot be determined, the Customs Department of the province or city where the duty reduction application is received shall request the tax authority of local government in writing to provide data from the tax authority's archival data system. After receiving the documents provided by the tax authority, the customs authority shall compare with the records and data on the system of the customs authority, the Confirmation of loss or damage of goods issued by an assessment service provider, and relevant documents to determine the amount of duty to be reduced.

c.2.4) After the result of inspection visit to the taxpayer's office is available, the processing officer inputs information about the inspection conclusion into the Duty exemption, reduction and refund system.

c.2.5) Actions against inspection result

After the result of inspection visit to the taxpayer's office is available, the processing officer shall:

- Check the entire duty reduction application; insurance documents and other relevant documents to determine the extent of damage;

- Check the actual data of damaged goods recorded in the minutes of the official who inspects the actual goods that have passed the customs supervision area;

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c.2.5.1) If the application is eligible for duty reduction

The processing officer proposes grant of duty reduction and input the information in the draft duty reduction decision, then transfers it to the head of division, the head of Customs Department of province/city for approval.

After the head of Customs Department of province/city approves the draft duty reduction decision, the Duty exemption, reduction and refund system will issue a customs management code with a structure consisting of 9 digits: the first two digits are the last two digits of the year in which the decision is issued, and 02 the next digits are the code of the Customs Department of the province or city where the decision is issued, the next 5 digits are the sequence of numbers that increase in each year. The processing officer shall print the draft duty reduction decision according to form No. 12, Appendix VII issued together with Decree No. 134/2016/ND-CP as amended and supplemented in Decree No. 18/2021/ND-CP, transfer it to the head of Customs Department of province/city to sign, then transfer to the clerical department to get the number, stamp and issue.

The clerical department sends the duty reduction decision to the taxpayer and the Sub-department of Customs where the proposed duty-reduced amount arises for granting duty reduction according to Article 13 of this Procedure.

After the duty reduction decision is issued, the processing officer scans document and updates the duty reduction decision number (paper copy) attached to the application, the Duty exemption, reduction and refund system gives feedback to the taxpayer and the Customs Sub-Department where the proposed duty-reduce amount arises.

c.2.5.2) In case the application is determined ineligible for duty reduction

Customs Departments of provinces and cities shall process duty reduction applications according to Item c.1 point c, of this Clause 1.

2. Paper application

a) Customs Departments of provinces and cities shall receive duty reduction applications transferred by Customs Sub-departments by post or in person.

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c) Verifying application

c.1) In case the application is ineligible for duty reduction or the application is incomplete or incorrect, but within 05 working days from the date the taxpayer receives the notice of the Customs Sub-department, if the taxpayer does not provide additional information, the Customs Department of the province or city shall do as follows:

The processing officer shall make a report according to form No. 01/TT-TXNK issued together with the Process, a draft notice that the goods of the application is not eligible for duty reduction, clearly stating that the application is ineligible or incomplete/invalid, made according to the form No. 06/ TXNK Appendix I to Circular No. 06/2021/TT-BTC, and then report to the head of division, the head of Customs Department of province/city for approval.

After the head of the Customs Department of the province or city approves and signs the notice, the processing officer will transfer the notice to the clerical department to get the number, stamp, send it to the taxpayer, and the Customs Sub-Department that received the duty reduction application.

In case the goods eligible for duty reduction in the customs declaration are also exempt from duty, and there is no data on the payable duty amount (E.g.: Goods imported for outward processing), the Sub-department of Customs that received the duty reduction application shall notify that the application is ineligible for duty reduction or the taxpayer is ineligible for duty reduction, and require the taxpayer to declare and pay the full duty amount corresponding to the quantity of damaged goods not eligible for duty reduction as prescribed. After receiving such a notice, if the taxpayer fails to declare and pay duty as prescribed, the customs authority shall impose a fixed duty amount according to Clause 4, Article 17 of Decree No. 126/ 2020/ND-CP.

c.2) Where it is necessary to carry out physical inspection of goods that have passed the customs supervision area to have sufficient grounds for duty reduction according to Clause 3, Article 32 of Decree No. 134/2016/ND-CP, as amended and supplemented in Clause 16, Article 1 of Decree No. 18/2021/ND-CP, the Customs Department of province/city shall do the following:

c.2.1) The processing officer makes a draft report according to the Form No. 01/TT-TXNK issued together with this Procedure, a draft decision on post-clearance inspection at the taxpayer's office according to the form No. 07/ TXNK Appendix I promulgated together with Circular No. 06/2021/TT-BTC, and then submit them to the head of department, head of Customs Department of province/city for approval. After the head of Customs Department of province/city approves, the processing officer will transfer the application to the clerical department for stamping and send it to the taxpayer.

c.2.2) The physical inspection of goods that have passed the customs supervision area shall comply with Clause 3, Article 32 of Decree No. 134/2016/ND-CP, as amended and supplemented in Clause 16, Article 1 of Decree No. 18/2021/ND-CP.

c.2.3) Checklists of physical inspection for goods that have passed the customs supervision area shall comply with Item c.2.3, point c, Clause 1 of this Article.

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c.2.5) Actions against inspection result

After the result of inspection visit to the taxpayer's office is available, the processing officer shall:

- Check the entire duty reduction application; insurance documents and other relevant documents to determine the extent of damage;

- Check the actual data of damaged goods recorded in the minutes of the official who inspects the actual goods that have passed the customs supervision area;

- Compare information about the proposed duty-reduced amount with data on VNACCS, VCIS, E-Customs System and related management programs.

c.2.5.1) If the application is eligible for duty reduction

The processing officer shall make a report according to form No. 01/TT-TXNK issued together with the Process, a draft export or import duty reduction decision, made according to the form No. 12/ TXNK Appendix VII promulgated together with Decree No. 134/2016/ND-CP, as amended and supplemented in Decree No. 18/2021/ND-CP, and then submit them to the head of department, the head of Customs Department of province/city for approval.

After the head of Customs Department of province/city signs the decision on duty reduction, the processing officer shall issue a customs management code according to a structure consisting of 10 digits: 02 first digits are the code of the Customs Department of province/city, 02 following digits are the last 02 digits of the year of issuance of the decision, the next 02 digits are the ordinal numbers according to the sequence of natural numbers calculated for each year, the next 04 digits are the duty reduction code for the case that the taxpayer submits duty reduction application at the time of customs clearance (GT02).

After issuing the customs management code, the processing officer will transfer it to the clerical department to get the number, stamp, and send the decision on duty reduction to the taxpayer and the Sub-department of Customs where the proposed duty reduction arises to grant duty reduction as prescribed in Article 13 of this Procedure.

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Customs Departments of provinces and cities shall process duty reduction applications according to Item c.1 point c, of this Clause 1.

Article 13. Handling of duty amounts after the issuance of a decision on duty reduction or a notice of ineligibility for duty reduction

1. Where taxpayers submit duty reduction applications at the time of customs clearance.

a) The processing officer shall transfer the decision on duty reduction to the relevant specialized division to update the decision on duty reduction into the centralized tax accounting system.

b) If the taxpayer declares an electronic customs declaration, the customs authority shall guide the taxpayer to make additional declaration of the duty-reduced amount in the entry 1.93 “the import duty-reduced amount” on the customs declaration according to Appendix II of Circular No. 38/2015/TT-BTC as amended and supplemented in Appendix I of Circular No. 39/2018/TT-BTC.

c) In case the taxpayer submits a paper customs declaration, in addition to updating duty reduction information into the centralized tax accounting system, the processing officer shall specify the duty-reduced amount according to Decision No. /date, affix the officer’s stamp on the customs declaration submitted by the taxpayer, take 01 copy for the duty reduction application for keeping, and return the original customs declaration to the taxpayer.

d) If the taxpayer has already paid the duty, the customs authority shall refund the paid duty at the request of the taxpayer as prescribed in Clause 2 of this Article.

2. Where taxpayers submit duty reduction applications after the time of customs clearance.

In case the taxpayer has paid duty on the quantity of damaged goods, the Sub-department of Customs shall refund the paid duty at the request of the taxpayer as follows:

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a.1) Where the taxpayer incurs no debt of taxes, late payment interest, fines and other payable amounts, including outstanding fees and charges (except for fees and charges incurred on declarations declared in the month until the 10th of the following month, the guaranteed duty amounts, which are gradually paid and other undue taxes and revenues of the state budget):

a.1.1) In case the taxpayer requests a refund, the customs authority shall, based on the refund decision, make a payment order and send it to the State Treasury to refund the taxpayer;

a.1.2) In case the taxpayer requests to offset the refunded duty amount against the payable duty amount of the following declarations: When the taxpayer makes a written request for tax-offset, the customs authority shall, based on the refund decision and written request of the taxpayer, do as follows:

Prepare a written request for adjustment of state budget revenue according to form C1-07a/NS of Circular No. 77/2017/TT-BTC dated July 28, 2017 of the Minister of Finance on guidelines for the state budget accounting regime and professional activities of the state treasury; amended by Circular No. 19/2020/TT-BTC dated March 31, 2020 of the Minister of Finance on amendments to the Circular No. 77/2017/TT-BTC dated July 28, 2017 of the Minister of Finance on guidelines for the state budget accounting regime and professional activities of the state treasury; in order to adjust the refunded duty amount to the payable duty amount if they have the same code of the collection agency and the treasury account code, accounting according to regulations.

Make a payment order and send it to the State Treasury for tax-offset if the payable duty amount and the refunded duty amount have different code of the collection agency code or the treasury account.

After offsetting the duty, if there is any excess, the provisions of Item a.1.1, Point a of this Clause shall apply.

a.2) Where the taxpayer incurs debt of taxes, late payment interest, fines and other payable amounts, including outstanding fees and charges (except for fees and charges incurred on declarations declared in the month until the 10th of the following month, the guaranteed duty amounts, which are gradually paid and other undue taxes and revenues of the state budget) payable to the state budget:

a.2.1) Where the taxpayer requests tax-offset, the customs authority shall comply with Item a.1.2. point a of this clause.

a.2.2) In case the taxpayer does not request tax-offset but the customs authority finds that the taxpayer is still obliged to pay taxes, late payment interest, fines and other payables, including money arrears and fees: The customs authority shall make tax-offset according to Point a.1.2, Point a of this Clause and notify the taxpayer that the refunded amount has been offset against payable amounts according to Form No. 28/TBBT/TXNK Annex 28/TBBT/TXNK Appendix VI issued together with Circular 38/2015/TT-BTC as amended and supplemented in Appendix III issued together with Circular No. 39/2018/TT-BTC.

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b) Refund the duty-reduced amount from the state budget (including amounts already paid to the state budget, tax paid to the deposit account that has been transferred to the state budget) with the following procedures:

b.1) Where the taxpayer incurs no debt of taxes, late payment interest, fines and other payable amounts, including outstanding fees and charges (except for fees and charges incurred on declarations declared in the month until the 10th of the following month, the guaranteed duty amounts, which are gradually paid and other undue taxes and revenues of the state budget):

b.1.1) In case the taxpayer requests a refund, the customs authority shall, based on the refund decision, issue a refund order made according to form C1-04/NS specified in Circular No. 77/2017/TT-BTC dated July 28, 2017 as amended and supplemented in Circular No. 19/2020/TT-BTC dated March 31, 2020 of the Minister of Finance on guidelines for the state budget accounting regime and professional activities of the State Treasury, and send it to the State Treasury to refund the taxpayer;

b.1.2) In case the taxpayer requests to offset the refunded duty amount against the payable duty amount of subsequent declarations, the customs authority shall, based on the refund decision and written request of the taxpayer, do as follows:

Prepare a document for adjustment of state budget revenues according to form C1-07a/NS specified in Circular No. 19/2020/TT-BTC on amendments to Circular No. 77/2017/TT-BTC to adjust the refunded duty amount to the payable duty amount if they have the same collection agency code and treasury account code, the same subsection for accounting according to regulations.

Prepare a refund-cum-offset order according to Form No. C1-05/NS specified in Circular No. 77/2017/TT-BTC, as amended in Circular No. 19/2020/TT-BTC to make tax-offset if the payable duty amount and the refunded duty amount have different the collection agency code or the treasury account code.

After offsetting the duty, if there is any excess, the provisions of Item b.1.1, Point b of this Clause shall apply.

b.2) Where the taxpayer incurs debt of taxes, late payment interest, fines and other payable amounts, including outstanding fees and charges (except for fees and charges incurred on declarations declared in the month until the 10th of the following month, the guaranteed duty amounts, which are gradually paid and other undue taxes and revenues of the state budget) payable to the state budget:

b.2.1) Where the taxpayer requests tax-offset, the customs authority shall comply with Item b.1.2. point b of this clause.

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After offsetting the duty, if there is any excess, the provisions of Item b.1.1, Point b of this Clause shall apply.

c) Settling and updating information

c.1) The processing officer shall update duty refund information into the centralized tax accounting system.

c.2) In case of using a paper declaration, the officer shall write on the taxpayer's declaration "Duty refunded... VND, according to Decision No. ... dated… of ... with the officer’s signature and stamp on the declaration; take 01 copy of the declaration to save in the duty refund application, and then return the original customs declaration to the taxpayer.

c.3) Update information into the centralized tax accounting system according to regulations.

Article 14. Time limit for processing duty reduction applications

1. Duty reduction applications submitted at the time of customs procedures

At the time of carrying out customs clearance, if the taxpayer submits sufficient application as prescribed, the Sub-department of Customs shall check the application, conduct physical inspection of goods, check duty reduction eligibility and grant duty reduction within the period specified in Article 23 of the Customs Law.

2. Duty reduction applications submitted after the time of customs clearance

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In case it is necessary to carry out physical inspection of goods that have passed the customs supervision area to have sufficient grounds for duty reduction, the Customs Department of the province or city shall issue a decision on post-clearance inspection at the taxpayer's office shall be issued, or a decision on duty reduction or a decision on duty reduction, or notify the taxpayer of the reasons for ineligible for duty reduction within a maximum of 40 days from the date of receipt of a complete application.

Article 15. Keeping duty reduction applications and information

1. Duty reduction applications (paper copies) shall be kept at the customs authority that issues duty reduction decisions.

The processing officer shall transfer them to the record-keeping department for keeping in accordance with regulations.

2. Duty reduction applications on the Duty exemption, reduction and refund system: The Department of Information Technology and Customs Statistics, the Customs Departments of provinces and cities and the Customs Sub-Departments are responsible for storing duty reduction information on the electronic data processing systems, ensuring safety in accordance with the confidentiality regime, providing relevant departments in accordance with the information provision regime of the customs industry.

Chapter III

PROCEDURES FOR DUTY REFUND, DUTY CANCELLATION

Section 1. REFUND OF DUTIES ON EXPORTED OR IMPORTED GOODS

Article 16. Receipt and assignment of processing duty refund applications

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a) Duty refund applications comply with Article 33, Article 34, Article 35, Article 36, Article 37 of Decree No. 134/2016/ND-CP as amended and supplemented in Clauses 17 and 18, Article 1. Decree No. 18/2021/ND-CP.

b) The receipt of duty refund applications shall comply with Clause 1, Article 12 of Circular No. 06/2021/TT-BTC.

b.1) Electronic application

The customs authority shall receive the application form for duty refund on the Duty exemption, reduction and refund system using Form No. 2, Appendix II issued with Circular No. 06/2021/TT-BTC together with relevant documents specified in Article 33, Article 34, Article 35, Article 36, Article 37 of Decree No. 134/2016/ND-CP, as amended and supplemented in Clause 17, Clause 18, Article 1 of Decree No. 18/2021/ND-CP. The system automatically receives the application, issues the application number, and gives feedback to the taxpayer on the receipt of the application.

b.2) Paper application

b.2.1) In case there is a problem with the Duty exemption, reduction and refund system, the customs authority shall receive the paper application for duty refund using Form No. 03/TXNK, Appendix I issued with Circular No. 06/2021/TT-BTC together with relevant documents specified in Article 33, Article 34, Article 35, Article 36, Article 37 of Decree No. 134/2016/ND-CP, as amended and supplemented in Clause 17, Clause 18, Article 1 of Decree No. 18/2021/ND-CP submitted by post or in person. The clerical department receives, stamps "Incoming document", enters the monitoring book, and transfers it to the duty refund department after being approved by the head of unit.

b.2.2) Duty refund department opens a separate monitoring book for duty refund applications.

b.3) The duty refund application for a case where the taxpayer requests a duty refund for multiple import declarations but the goods are exported on only one declaration shall be received by the Sub-department of Customs where the expected duty refund amount arises.

b.4) The duty refund application in a case where the taxpayer requests a duty refund for a shipment that incurs a duty amount according to the customs declaration, and also a duty-refunded amount arises under a decision on tax imposition shall be received by the Sub-department of Customs where the duty refund declaration is generated.

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a) Electronic application

a.1) The head of unit assigns an application to the head of division on the Duty exemption, reduction and refund system. In the absence of the head of division, the head of unit shall directly assign the application to a processing officer.

a.2) The head of division assigns a duty refund application to a processing officer on the Duty exemption, reduction and refund system.

a.3) The assignment of processing the application shall be done within 08 working hours from the time the system receives such duty refund application.

a.4) In case the taxpayer sends the application to the wrong address, the customs authority shall, within 03 working days, notify the taxpayer of the refusal of the application according to Form No. 04/TXNK Appendix I issued together with Circular No. 06/2021/TT-BTC.

b) Paper application

b.1) The head of unit shall assign the application to relevant entities within 08 working hours after receiving such duty refund application from the taxpayer.

b.2) In case the application is complete, within 03 working days, the processing officer shall make a report according to Form No. 01/TT-TXNK enclosed with this Procedure and a draft notice of receipt of the application, the time limit for processing application according to Form No. 04/TXNK Appendix I issued together with Circular No. 06/2021/TT-BTC, and then submit them to the head of division, head of unit for approval. After the head of unit approves, the processing officer will transfer the notice to the clerical department for sending it to the taxpayer.

b.3) In case the taxpayer sends the application to the wrong address, the customs authority shall, within 03 working days, notify the taxpayer of the refusal of the application according to Form No. 04/TXNK Appendix I issued together with Circular No. 06/2021/TT-BTC.

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1. Electronic application

a) Classification of applications

a.1) Pursuant to the regulations on classification of duty refund applications in Article 73 of the Law on Tax Administration, Article 22 of Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government on elaboration of the Law on Tax Administration, Article 12 of Circular No. 06/2021/TT-BTC, the System automatically classifies applications into two categories: applications eligible for duty refund before inspection and applications subject to inspection before duty refund.

a.2) Within 03 working days from the date on which the System automatically receives the duty refund application, the processing officer shall double check the System's application classification results and compare them with regulations on classification of duty refund applications in Article 73 of the Law on Tax Administration, Article 22 of Decree No. 126/2020/ND-CP, Article 12 of Circular No. 06/2021/TT-BTC and do as follows:

a.2.1) If the classification done by the system is determined appropriate, the processing officer will record on the System about the acceptance of the classification results of the System, transfer it to the Head of division, Head of unit to approve classification results of duty refund applications and give application classification results to taxpayers.

a.2.2) In case the classification done by the System is not appropriate, the processing officer shall adjust the results of the classification of applications on the System, transfer them to the head of division, head of unit to approve and give the results to taxpayers.

a.2.3) In case a taxpayer requests a duty refund for a shipment that incurs a duty amount according to the customs declaration, and also has a duty-refunded amount under a tax imposition decision, but the System classified the application as eligible for duty refund before inspection, the processing officer shall change the application category on the System, and then transfer them to the head of division and the head of unit for approving that, and then notify the taxpayer that their application category is changed into subject to inspection before duty refund.

a.2.4) In case it is determined that the application is not eligible for duty refund, the processing officer shall make a notice of ineligibility for duty refund according to Form No. 5, Appendix II issued together with Circular No. 06/ 2021/TT-BTC, transfer it to the head of division, the head of unit for approval, then and notify the taxpayer after being approved by the head of unit.

b) Inspecting and processing applications

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b.1.1) Inspect application

Within 06 working days from the date of receipt of the application, the processing officer shall check if the duty refund application is eligible in accordance with the law on tax and tax administration, the duty amount the taxpayer requests for refund with the collected duty amount, tax debt status of the taxpayer on the centralized tax accounting system; compare the information in the duty refund application with the information on the VNACCS, VCIS, the E-customs system and other programs related to the import and export declarations with the taxpayer's expected duty refund amount.

b.1.2) Application with supplementation needed

In case the application needs explanation and additional information, the officer proposes the supplementation of the application according to Form No. 4, Appendix II issued together with Circular No. 06/2021/TT-BTC, and transfer it to the head of division, the head of unit for approval and sends it to the taxpayer. The time limit for supplementing the application is 05 working days from the date the taxpayer receives the notice from the customs authority. The system automatically receives and transfers the taxpayer's explanation to the processing officer.

In case the taxpayer explains in person to the customs authority, the processing officer shall make a working record using form No. 12/TXNK Appendix I issued with Circular No. 06/2021/TT-BTC. Working minutes and written explanations must be kept in the duty refund application.

b.1.2.1) After the taxpayer completes the application and the processing officer determines that the duty refund application is eligible, then comply with Point b.1.3 of this Clause.

b.1.2.2) In case the taxpayer has made an explanation or supplementation but the customs authority has not had enough grounds for duty refund or the time limit for explanation or supplementation has expired but the taxpayer fails to make an explanation or supplementation, the processing officer shall propose the change of application category on the System, and then request the head of division, the head of unit for approval, and notify the taxpayer that their application category is changed into subject to inspection before duty refund.

The time limit for changing category into application subject to inspection before duty refund is not more than 02 working days from the date the taxpayer explains or supplements the application to the customs authority.

b.1.2.3) If the taxpayer completes the application but the processing officer determines that the duty refund application is ineligible, then comply with Point b.1.4 of this Clause.

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The processing officer shall comply with the procedures and time limit for issuing the decision on duty refund according to Article 19 of this Procedure.

b.1.4) Application ineligible for duty refund

The processing officer proposes to notify the taxpayer that their application is ineligible for duty refund according to Form No. 5, Appendix II issued together with Circular No. 06/2021/TT-BTC on the Duty exemption, reduction and refund system, and transfer it to the head of division, the head of unit for approval. After the head of unit approves, the processing officer shall notify the taxpayer on the System that the application is ineligible for duty refund.

Within 06 working days from the date of receipt of the application, the customs authority must notify the taxpayer of the ineligibility of the duty refund application.

b.2) Application subject to inspection before duty refund

b.2.1) The inspection of duty refund applications shall comply with Item b.1.1, point b, Clause 1 of this Article.

The processing officer determines the checklists for inspection of the application at the taxpayer's office, prepare a draft decision on inspection at the taxpayer's office, using form No. 07/TXNK Appendix I issued together with Circular No. 06/2021/TT- BTC, and then transfer them to the head of division, the head of unit for approval. The decision on inspection at the taxpayer's office must be issued within 03 working days from the date of receipt of a complete application. The Head of Customs Sub-department where the application for duty refund is received shall issue a decision on inspection at the taxpayer's office as prescribed in Item b.1 point b Clause 3 Article 12 of Circular No. 06/2021/TT-BTC.

b.2.2) The inspection decision must be sent to the taxpayer on the System and 01 paper copy within 03 days from the date of issuance of the Decision.

b.2.3) The processing officer shall transfer 01 paper copy of the inspection decision to the head of the inspection team.

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a) Classification of applications

Within 03 working days from the date of receipt of the duty refund application, the processing officer shall check the information in the duty refund application and information related to the taxpayer on the relevant systems of the customs authority, compare with the regulations on classification of duty refund applications in Article 73 of the Law on Tax Administration, Article 22 of Decree No. 126/2020/ND-CP, Article 12 of Circular No. 06/2021/TT-BTC to classify the application into the suitable category: eligible for duty refund before inspection or subject to inspection before duty refund.

In case it is determined that the application is ineligible for duty refund during the process of classifying the application, the processing officer shall make a report according to Form No. 01/TT-TXNK issued together with this Procedure and the draft Notice of ineligibility for duty refund according to Form No. 06/TXNK Appendix I issued together with Circular No. 06/2021/TT-BTC to submit to head of division, the head of unit for approval, and then notify the taxpayer after approved by the head of the unit.

In case a taxpayer requests a duty refund for a shipment that incurs a duty amount according to the customs declaration, and also has a duty-refunded amount under a tax imposition decision, classify the application as subject to inspection before duty refund.

b) Inspecting and processing applications

b.1) Application eligible for duty refund before inspection

b.1.1) Inspect application

Within 06 working days from the date of receipt of the application, the processing officer shall check if the duty refund application is eligible in accordance with the law on tax and tax administration, the duty amount the taxpayer requests for refund with the collected duty amount, tax debt status of the taxpayer on the centralized tax accounting system; compare the information in the duty refund application with the information on the VNACCS, VCIS, the E-customs system and other programs related to the import and export declarations with the taxpayer's expected duty refund amount.

b.1.2) Application with supplementation needed

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In case the taxpayer explains in person to the customs authority, the processing officer shall make a working record using form No. 12/TXNK Appendix I issued with Circular No. 06/2021/TT-BTC. Working minutes and written explanations must be kept in the duty refund application.

b.1.2.1) After the taxpayer completes the application and the processing officer determines that the duty refund application is eligible, then comply with Point b.1.3 of this Clause.

b.1.2.2) In case the taxpayer has made an explanation or supplementation but the customs authority has not had enough grounds for duty refund or the time limit for explanation or supplementation has expired but the taxpayer fails to make an explanation or supplementation, the processing officer shall make a report using the Form No. 01/TT-TXNK issued together with this Procedure, the draft Notice on the change of application category making a report using the Form No. 01/TT-TXNK issued together with this Procedure, the draft Notice on, and then submit them to the head of division, the head of unit for approval, and notify the taxpayer that their application category is changed into subject to inspection before duty refund.

The time limit for changing category into application subject to inspection before duty refund is not more than 02 working days from the date the taxpayer explains or supplements the application to the customs authority.

b.1.2.3) If the taxpayer completes the application but the processing officer determines that the duty refund application is ineligible, then comply with Point b.1.4 of this Clause.

b.1.3) Application eligible for duty refund

The processing officer shall comply with the procedures and time limit for issuing the decision on duty refund according to Article 19 of this Procedure.

b.1.4) Application ineligible for duty refund

The processing officer shall make a report according to form No. 01/TT-TXNK issued together with the Process, a draft notice about the ineligibility for duty refund, made according to the form No. 06/ TXNK Appendix I to Circular No. 06/2021/TT-BTC, and then submit them to head of division, the head of unit for approval.

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b.2) Application subject to inspection before duty refund

b.2.1) The inspection of duty refund applications shall comply with Item b.1.1, point b, Clause 1 of this Article.

b.2.2) The processing officer determines the checklists for inspection of the application at the taxpayer's office, prepares a report using Form No. 01/TT-TXNK attached to this Procedure, prepare a draft decision on inspection at the taxpayer's office, using form No. 07/TXNK Appendix I issued together with Circular No. 06/2021/TT- BTC, and then submit them to the head of division, the head of unit for approval.

The decision on inspection at the taxpayer's office must be issued within 03 working days from the date of receipt of a complete application and sent to the taxpayer within 03 days from the date of issuance of the decision. The Head of Customs Sub-department where the application for duty refund is received shall issue a decision on inspection at the taxpayer's office as prescribed in Item b.1 point b Clause 3 Article 12 of Circular No. 06/2021 /TT-BTC.

The processing officer shall transfer 01 paper copy of the inspection decision to the head of the inspection team.

3. In case the expected duty refund amount belongs to many import declarations, but the goods are exported in one declaration

a) Where the import declarations are registered at multiple Customs Sub-Departments of the same Customs Department of province or city, but the goods are exported on one export declaration:

a.1) The inspection at the taxpayer's office shall be assigned by the Customs Department of the province or city to the Sub-department of Customs where the taxpayer's head office is located or the Customs Sub-department which is deemed convenient for conducting the inspection at the head office of the taxpayer. The inspection results are sent to the Customs Sub-departments where the duty refund amount proposed by the taxpayer arises.

a.2) Procedures

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a.2.2) The head of Customs Department of the province or city approves on the System or on the report on assignment of 01 Customs Sub-Department to conduct inspection at the taxpayer's office.

a.2.3) After being approved by the Department's head, the assigned Customs Sub-department shall issue a decision on inspection at the taxpayer's office according to Form No. 07/TXNK Appendix I issued together with the Circular. No. 06/2021/TT-BTC.

a.2.4) The inspection at the taxpayer's office shall comply with the instructions in Article 18 of this Procedure.

a.2.5) At the end of the inspection, the Customs Sub-department that has conducted the inspection at the taxpayer's office shall transfer the inspection results to the Customs Sub-Department where the expected duty refund amount arises as a basis for issuance of decision on duty refund to the taxpayer as prescribed in Article 19 of this Procedure.

b) In case the import declaration is registered at more than one Customs Sub-Department other than the Customs Department of the province or city, but the goods are exported on one export declaration, the Sub-department of Customs where the expected duty refund amount arises shall carry out the inspection at the taxpayer's office as prescribed in Article 18 of this Procedure.

Article 18. Inspection at the taxpayer's office

1. Procedures

The procedures for inspection at the taxpayer's office shall comply with Point b, Clause 3, Article 12 of Circular No. 06/2021/TT-BTC.

a) The customs authority shall send the decision on inspection at the taxpayer's office to the taxpayer within 03 working days from the date of issuance of the decision.

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Before the inspection, the head of the inspection team shall announce the inspection decision and make a record of the inspection decision announcement according to Form No. 08/TXNK Appendix I issued together with Circular No. 06/2021/TT-BTC to the authorized representative of the taxpayer.

c) The inspection time does not exceed 05 working days (at the production facility, the head office of the taxpayer). In case the taxpayer fails to comply with the inspection decision of the customs authority, the inspection team shall make a record as a basis for handling administrative violations in accordance with law.

d) Inspection scope:

d.1) The scope of inspection must be clearly stated in the inspection decision.

d.2) The head of the inspection team and members of the inspection team must not ask the taxpayer to provide information and documents unrelated to the inspection checklist.

dd) Matters to be inspected

dd.1) Check the customs dossier, duty refund application, accounting vouchers, books, payment vouchers, warehouse discharge and entry receipts; compare the expected duty refund amount with the collected duty amount on the centralized tax accounting system of the customs authority, compare the information in the duty refund application with information on other systems related to the tax export and import declarations with the duty refund amount proposed by the taxpayer.

In case the taxpayer performs accounting operations on a computer using accounting software, the inspection team shall request the provision of accounting books on electronic data with the same content as the printed version of the taxpayer for record keeping (the taxpayer is not required to print it out).

dd.2) In case of duty refund as prescribed in Article 35 of Decree No. 134/2016/ND-CP, check the taxpayer’s declaration of the depreciation rate and how they calculate the depreciation rate on the accounting books and vouchers, and allocation of good value while they are used and retained in Vietnam.

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Inspect materials, supplies, machines and equipment in the production line (if any); check the conformity of the finished product with imported materials and supplies (in case the finished product is of the same type as the product requested for duty refund, which is still kept at the taxpayer's warehouse); inspect unfinished products in the process of production (if any); check the quantity and type of finished products not yet exported (if any); inspect scraps, discarded products, raw materials and supplies in excess in the warehouse (if any);

Check the actual situation of using imported goods; goods that have been exported but have to be re-imported for proposed duty refund (if any).

dd.4) In case the taxpayer requests duty refund for many import declarations but the goods are exported on only one export declaration, the customs authority shall check according to Point dd.3 of this Clause to determine the amount of duty to be refunded according to each import declaration.

dd.5) In case a taxpayer requests a duty refund for a shipment that generates a duty refund according to the customs declaration, and another duty-refunded amount under a tax imposition decision arises, the customs authority shall carry out the inspection as prescribed at Point dd.3 of this Clause to determine the duty-refunded amount according to the customs declaration and the duty-refunded amount under the tax imposition decision.

dd.6) In case of duty refund for imported goods that must be re-exported, exported goods that must be re-imported, goods subject to special excise duty, the customs authority shall check the duty refund application and accounting books, payment vouchers, compare the expected duty refund amount  with the collected duty amount on the centralized tax accounting system of the customs authority; compare the information in the duty refund application with information on other systems related to the import and export declarations with the duty refund amount proposed by the taxpayer.

dd.7) Examine and verify transactions of taxpayers with other relevant organizations and individuals (for complicated cases, it is necessary to conduct an inspection to clarify).

dd.8) In case the taxpayer has paid import duty or export duty but has no imported, exported good or the actual quantity of imported or exported goods is less than the quantity of imported or exported goods that the duty on which has been paid:

Check the customs dossier, duty refund application; compare the expected duty refund amount with the collected duty amount on the centralized tax accounting system of the customs authority, compare the information in the duty refund application with information on other systems related to the tax export and import declarations with the duty refund amount proposed by the taxpayer.

Check transport documents, commercial invoices, packing lists, inspection certificates (if any).

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For complicated cases that cannot finish the inspection within 05 working days, the inspection team needs to extend the time to verify and collect documents, no later than 01 working day before the end of the inspection period, the head of the inspection team must report in writing to the person who signed the inspection decision to issue a decision on extension of the inspection period according to Form No. 09/TXNK Appendix I issued together with Circular No. 06. 2021/TT-BTC.

The time limit for extension of inspection shall not exceed 05 working days. The head of the inspection team shall announce the decision on extension of the inspection time limit, make a record on the announcement of the decision on extension of the inspection time limit as prescribed in Clause 1 of this Article.

3. Make an inspection record

The inspection team shall make an inspection record according to Form No. 10/TXNK Appendix I issued together with Circular No. 06/2021/TT-BTC within 05 working days from the date of completion of the inspection at the taxpayer’s head office.

4. Inspection conclusion

a) Within 03 working days from the date of making the inspection record, the inspection team shall make a draft of the inspection conclusion according to Form No. 11/TXNK Appendix I issued together with Circular No. 06/2021/TT- BTC and send it to the taxpayer through the Duty exemption, reduction and refund system or send it by fax or certified mail or in person to the taxpayer.

a.1) In case the taxpayer disagrees with the draft inspection conclusion of the customs authority, within 05 (five) working days from the date of receipt of the draft inspection conclusion, the taxpayer shall must send a written explanation to the customs authority through the Duty exemption, reduction and refund system or send a written explanation to the customs authority.

In case the taxpayer explains in person to the customs authority, the customs authority shall make a working record using form No. 12/TXNK Appendix I issued with Circular No. 06/2021/TT-BTC.

a.2) Within 03 working days from the date on which the time limit for the taxpayer's explanation expires, the head of the customs authority that has issued the decision on inspection shall issue the inspection conclusion using the form No. 11/TXNK in the Appendix I promulgated together with Circular No. 06/2021/TT-BTC, and send it to the taxpayer through the System or in paper form by mail.

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c) In case a taxpayer requests a duty refund for a shipment that generates a duty refund according to the customs declaration, and another duty-refunded amount under a tax imposition decision arises, the inspection conclusion shall clearly state the duty-refunded amount according to the customs declaration and the duty-refunded amount under the tax imposition decision as the basis for issuing the decision on tax refund.

5. Actions against inspection result

a) Within 03 working days from the day on which the inspection conclusion is notified, the inspection team shall send 01 copy of the inspection conclusion to the duty refund division.

The duty refund division shall update the inspection results and do the following:

a.1) If the duty refund conditions are satisfied, a decision on duty refund shall be issued according to Article 19 of this Procedure.

a.2) If the duty refund conditions are not met, a notice shall be made through the System according to Form No. 5, Appendix II issued together with Circular No. 06/2021/TT-BTC, or a report shall be made using Form No. 01/TT- TXNK promulgated together with this Procedure, notifying that the taxpayer is ineligible for duty refund using Form No. 06/TXNK Appendix I issued together with Circular No. 06/2021/TT-BTC.

b) In case the taxpayer requests duty refund for many import declarations, but the goods are exported on only one declaration, and the inspection at the taxpayer's office is conducted by the Sub-department of Customs where the taxpayer's head office is located or the Customs Sub-department which is deemed convenient for inspection, within 03 working days from the date of notification of the inspection conclusion, the Sub-department of Customs conducting the inspection at the taxpayer's office shall send 01 copy of the inspection conclusion to the Sub-department of Customs where the expected duty refund amount arises.

The duty refund division at the Sub-department of Customs that generates the expected duty refund amount shall update the inspection conclusion as prescribed at Point a of this Clause.

c) In case the taxpayer requests a duty refund for a shipment that incurs a duty amount according to the customs declaration, and a duty-refunded amount also arises according to the decision on tax imposition, within 3 working days from the date of notification of inspection results, the Sub-department of Customs that inspects the taxpayer's office shall send 01 copy of the conclusion to the customs authority where the decision on tax imposition is issued.

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1. Making and approving the decision on duty refund

a) Processing officer

Based on the results of the inspection of the duty refund application in Article 17 and the inspection results at the taxpayer's office in Article 18 of this Procedure, the processing officer shall:

a.1) In case of electronic application, the processing officer shall make a decision on duty refund according to Form No. 13/TXNK Appendix I issued together with Circular No. 06/2021/TT-BTC on the System, transfer it to the head of division, the head of unit for approval.

a.2) In case of paper application, the processing officer shall make a report according to form No. 01/TT-TXNK issued together with the Process, a draft decision on duty refund, made according to the form No. 13/TXNK Appendix I to Circular No. 06/2021/TT-BTC with the application and report to head of division for submission to the head of unit for approval.

b) Head of division

Check all applications, contents of proposals on the System, processing officer's report, in case the head of division agrees with the proposal of the processing officer, write comments in the section "Opinions of the head of division” on the System, or a report to submit to the head of unit.

In case the head of division disagrees with the processing officer, write clearly in the section "Opinions of the head of division" on the System, or report, and then transfer it to the processing officer for further actions.

c) The head of unit

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c.2) In case the head of unit disagrees with the processing officer’s proposal, write clearly in the section "Opinions of the head of unit" on the System, or report, and then transfer it to the head of division and the processing officer for further actions.

2. Issuance of duty refund decision

a) The procedures for issuing a decision on duty refund shall comply with Point c, Clause 3, Article 12 of Circular No. 06/2021/TT-BTC.

b) Authority to issue a decision on duty refund

b.1) The head of the Sub-department of Customs where the customs declaration is registered shall issue a decision on duty refund for the duty paid by the taxpayer according to the customs declaration.

b.2) The head of the customs authority that issued the decision on tax imposition according to Clause 7 Article 17 of Decree No. 126/2020/ND-CP shall issue a decision on duty refund for the duty amount already paid under the decision on tax imposition.

3. Releasing duty refund decision

a) Processing officer

a.1) Electronic application

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After the clerical department issues the decision, the officer scans and updates the duty reduction decision number (paper copy) attached to the application, the Duty exemption, reduction and refund system sends the duty refund decision to the taxpayer and relevant divisions.

a.2) Paper application

After the head of unit signs the decision on duty refund, the processing officer shall issue a customs management code. The customs management code has a structure of 12 digits: 02 first digits are the code of the Customs Department of province/city, 02 following digits are the last 02 digits of the year of issuance of the decision, the next 04 digits are the ordinal numbers according to the sequence of natural numbers calculated for each year, the next 04 digits are the duty refund code for the application eligible for duty refund before inspection (HT01); or application subject to inspection before duty refund (HT02).

After the head of unit approves the decision, the processing officer transfers the decision to the clerical department for issuance, stamping and releasing.

b) Clerical department.

Issue 06 copies of the decision for refund of value-added tax that is mistakenly paid or overpaid; 05 copies of the decision for the remaining duty refund cases.

b.1) Send 01 copy of the decision on duty refund and related documents (if any) to the taxpayer by post.

In case the taxpayer receives the decision on duty refund in person, the clerical department will make a handover book, specifying the full name, address, identity card/passport number of the person receiving the decision and requesting the recipient to sign the handover book.

b.2) Send 01 copy of the decision on duty refund to the relevant divisions in the unit within a working day or at the beginning of the next working day at the latest.

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4. Time limit for issuance of duty refund decision

a) The time limit for issuing a decision on duty refund for an application eligible for duty refund before inspection is 6 days from the date the customs authority issues a notice of acceptance of the duty refund application, the time limit for processing such application shall comply with Clause 1, Article 75 of the Law on Tax Administration.

b) The time limit for issuing a decision on duty refund for an application subject to inspection before duty refund is 40 days from the date the customs authority issues a notice of acceptance of the duty refund application, the time limit for processing such application shall comply with Clause 2, Article 75 of the Law on Tax Administration.

5. For the case where the expected duty refund amount arises in the import declaration and also in the decision on tax imposition, the procedures for issuing the decision on duty refund are as follows:

After receiving the inspection conclusion at the taxpayer's office as prescribed at Point c, Clause 5, Article 18 of this Procedure, the customs authority where the decision on tax imposition is issued shall examine the tax imposition dossier, the imposed duty amount, documents of payment of imposed duty to the state budget, and compare them with the information transmitted by the Sub-department of Customs where the declaration of imported goods is registered.

If the inspection determines that the duty refund application is eligible, the customs authority that has issued the decision on tax imposition shall issue a decision on duty refund to the taxpayer. At the legal grounds, in addition to the bases according to current regulations, add the content "Duty refund at the request of Customs Sub-department.... in Official Dispatch No.... dated...".

Article 20. Handling of duty amount after issuing the decision on duty refund

The handling of the duty amount after the issuance of the decision on duty refund shall comply with Clause 2, Article 13 of this Procedure.

Article 21. Inspection after duty refund for applications eligible for duty refund before inspection

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a) Applications eligible for duty refund before inspection as prescribed in Article 73 of the Law on Tax Administration, Article 22 of Decree No. 126/2020/ND-CP, Clause 2, Article 12 of Circular No. 06/2021/TT-BTC;

b) Application for duty cancellation in the case of duty refund but the taxpayer has not yet paid duty as prescribed at Point a, Clause 1, Article 37a of Decree No. 18/2021/ND-CP (hereinafter referred to as the duty refund application).

2. Procedures for inspection after duty refund shall comply with the procedures for post-customs clearance inspection specified in Clause 63, Article 1 of Circular No. 39/2018/TT-BTC.

3. Matters to be inspected after duty refund

a) Check the declaration of imported and exported goods, the decision on tax imposition arising the expected duty refund amount;

b) Check payment documents for exported and imported goods, tax payment documents;

c) Check the relevant documents in the duty refund application, compare with the data stored on the VNACCS, the centralized tax accounting system of the customs authority;

d) Check the duty refund decision and the applied legal bases for the issuance of the duty refund decision;

dd) Check accounting books, vouchers, documents, data related to the duty-refunded amount, which are stored at the taxpayer's office;

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g) In case it is necessary to collect information from the tax authority to serve the inspection, the customs authority shall send a written request to the local tax authority where the enterprise is managed to provide information about the process of tax declaration, tax finalization report to serve the inspection.

4. Time limit for inspection after duty refund

a) Inspection after duty refund shall be carried out within 01 year from the date of issuance of the decision on duty refund for the following documents:

a.1) A duty refund application with a refunded or cancelled amount of between VND 2 billion and less than VND 5 billion (for a duty refund application of VND 5 billion or more belonging to a duty refund application with high risks on customs valuation, the customs authority shall conduct inspection before duty refund according to Point d, Clause 2, Article 73 of the Law on Tax Administration and Article 26 of Circular No. 81/2019/TT-BTC dated November 15, 2019 of the Minister of Finance on risk management in customs operations).

a.2) Applications after duty refund that customs authorities discover illegal documents used therein.

a.3) Duty refund application shows signs of violation of tax law, customs law, and law on commerce detected by agencies in the customs sector.

a.4) Duty refund applications with signs of law violation detected by competent agencies outside the customs sector.

b) Inspection after duty refund within 03 years from the date of issuance of the decision on duty refund for duty refund applications as prescribed in subsection H.2 section H part III of the set of risk management criteria in customs practices issued together with Decision No. 623/QD-TCHQ dated December 31, 2020 of the Director of the General Department of Customs.

c) Inspection after duty refund within 05 years from the date of issuance of the decision on duty refund, for applications not falling into the cases mentioned at Points a and b of this Clause.

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a) Monthly, the Sub-department of Customs that has issued the decision on duty refund shall make a list of documents to be inspected after duty refund as prescribed in Clause 4 of this Article and report to the Customs Department of the province or city.

b) The head of the Customs Department where the expected duty refund amount arises shall issue a decision on inspection after duty refund for applications eligible for duty refund in advance according to the procedures for post-clearance inspection at the taxpayer's office, and assign the Customs Sub-department that has issued the decision on duty refund to conduct post-refund inspection at the taxpayer's office.

6. Processing inspection results after duty refund

a) After receiving the inspection results after duty refund, if the inspection results determine that the taxpayer is eligible for duty refund, the duty refund division will input the inspection results into the Duty exemption, reduction and refund system for the electronic application, save the inspection conclusion after duty refund in the duty refund application.

b) In case it is determined that the duty-refunded amount is smaller than the duty-refundable amount, the customs authority shall issue a decision on duty refund according to Form No. 13/TXNK Appendix I issued together with Circular No. 06/2021/TT -BTC to supplement the duty-refundable amount according to the conclusion of the post-duty refund inspection.

c) In case the duty-refunded amount is larger than the duty-refundable amount or it is determined not to be eligible for duty refund, the customs authority that has issued the decision on duty refund shall issue a notice using Form No. 04/TXNK Appendix I promulgated together with Circular No. 06/2021/TT-BTC on the retrieval of the duty-refunded amount.

Article 22. Keeping duty reduction applications and information

1. Electronic application

The Department of Information Technology and Customs Statistics are responsible for processing duty refund and duty cancellation; storing information on the electronic data processing systems, ensuring safety in accordance with the confidentiality regime, providing relevant departments in accordance with the information provision regime of the customs industry.

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a) Duty refund applications are stored at the duty refund division of the customs authority where the expected duty refund amount arises. The accounting division is responsible for storing the original refund order certified by the State Treasury.

b) For applications subject to inspection before duty refund, within 01 (one) year from the date of issuance of the decision on duty refund, the applications shall be transferred to the archival division of the customs authority for keeping according to regulations.

c) For applications eligible for duty refund in advance, the division in charge of duty refund and cancellation applications is responsible for storing it separately for provision to the post-customs clearance inspection team for post-duty refund inspection at the taxpayer’s office as prescribed in Article 21 of this Procedure.

Section 2. CANCELLATION OF DUTIES ON EXPORTED OR IMPORTED GOODS

Article 23. Cancellation of duty on goods eligible for duty refund and duty unpaid as prescribed in Point a Clause 1 Article 37a Decree No. 134/2016/ND-CP supplemented at Clause 19, Article 1 of Decree No. 18/2021/ND-CP

1. Regulated entities

Goods eligible for duty refund and duty unpaid that obtain a decision on duty cancellation by the customs authority as prescribed in Point a Clause 1 Article 37a Decree No. 134/2016/ND-CP supplemented at Clause 19, Article 1 of Decree No. 18/2021/ND-CP, including the following:

a) Cancel the export duty on exported goods obtaining export duty guarantee from a credit institution but to be re-imported within the guarantee period specified in Article 33 of Decree No. 134/2016/ND-CP.

b) Cancel the import duty on imported goods obtaining import duty guarantee but to be re-exported within the guarantee period specified in Article 34 of Decree No. 134/2016/ND-CP.

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d) Cancel the duty on goods imported for business but exported within the guarantee period of the credit institution specified in Article 36 of Decree No. 134/2016/ND-CP.

dd) Cancel the duty on imported or exported goods guaranteed by a credit institution but the quantity of actual exported or imported goods is less than the quantity of the guaranteed imported or exported goods as prescribed in Article 37 of Decree No. 134/2016/ND-CP.

2. Procedures for receiving, assigning to process applications, classifying applications, verifying applications and inspecting at taxpayers' offices for duty cancellation applications eligible for duty refund but taxpayers have not paid them yet as specified in this Article shall comply with Articles 16, 17 and 18 of this Procedure.

3. The procedure for issuing a decision on duty cancellation is similar to the procedure for issuing a decision on duty refund specified in Article 19 of this Procedure. he decision on duty cancellation is made according to Form No. 13/TXNK Appendix I issued together with Circular No. 06/2021/TT-BTC.

For electronic applications, the Duty exemption, reduction and refund system automatically issues customs management codes with a structure consisting of 9 digits: the first two digits are the last two digits of the year in which the decision is issued, and 02 the next digits are the code of the Customs Department of the province or city where the decision is issued, the next 5 digits are the sequence of numbers that increase in each year.

For paper applications, the customs management code of the decision on duty cancellation has a structure of 12 digits: the first 2 digits are the code of the Customs Department of the province or city, the next 2 digits are the last 2 digits of the year of issuance of the decision, the next 4 digits are the ordinal number according to the sequence of natural numbers calculated for each year, the next 2 digits are the duty cancellation code (KT01 - cancellation of duty on goods eligible for duty refund and duty unpaid as prescribed at point a, clause 1, Article 37a of Decree No. 134/2016/ND-CP supplemented at Clause 19, Article 1 of Decree No. 18/2021/ND-CP).

4. The keeping of duty cancellation applications and information is similar to Article 22 of this Procedure.

5. The inspection at the taxpayer's office after the issuance of the decision on duty cancellation is similar to Article 21 of this Procedure.

Article 24. Cancellation of duty on goods not subject to import or export duty as prescribed at Point b, Clause 1, Article 37a of Decree No. 134/2016/ND-CP added to Clause 19, Article 1 of the Decree. No. 18/2021/ND-CP

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Goods that are not subject to import or export duty shall be issued a decision on duty cancellation by the customs authority according to Point b, Clause 1, Article 37a of Decree No. 134/2016/ND-CP, supplemented in Clause 19 Article 1 of Decree No. 18/2021/ND-CP, including the following cases:

a) Cancel the export duty on goods imported but re-exported abroad, re-exported to a third country, re-exported into a free trade zone (for use in a free trade zone) specified in Article 34 of Decree No. 134/2016/ND-CP.

b) Cancel the import duty on exported goods that must be re-imported into Vietnam as prescribed in Article 34 of Decree No. 134/2016/ND-CP.

2. Application of duty cancellation

Applications of duty cancellation shall comply with Clause 2, Article 37a of Decree No. 134/2016/ND-CP, supplemented in Clause 19, Article 1 of Decree No. 18/2021/ND-CP and Article 13 of Circular No. 06/2021/TT-BTC.

3. Receiving, assigning to process applications

a) Receipt of application

The customs authority receives duty cancellation applications through the System or by post or in person at the customs authority.

The time of receipt of duty cancellation applications is done during the course of customs procedures or after the goods have been cleared from customs. The receipt of duty cancellation applications shall comply with Clause 1, Article 16 of this Procedure:

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a.2) If there is a problem with the Duty exemption, reduction and refund system, the customs authority shall receive a paper application for duty cancellation, made according to Form No. 14/TXNK Appendix I issued together with Circular No. 06/2021/ TT-BTC with relevant documents.

Within 03 working days from the date of receipt of the application for duty cancellation, the processing officer shall make a report according to form No. 01/TT-TXNK issued together with the Procedures, a draft notice about the application receiving, made according to the form No. 04/ TXNK Appendix I to Circular No. 06/2021/TT-BTC and submit them to the head of division, the head of unit for approval. After the head of unit approves, the processing officer will transfer the notice to the clerical department for sending it to the taxpayer.

b) Assignment of processing application

The assignment of processing applications is similar to Clause 2, Article 16 of this Procedure.

4. Inspection of duty cancellation application

a) Verifying application

The processing officer shall check the application, check the results of the physical inspection of goods in the customs application (except for enterprise eligible for customs and tax incentives), and check the duty cancellation eligibility according to the tax law, tax administration, the taxpayer’s expected duty cancellation amount; compare the information in the application of duty cancellation with the information on the VNACCS related to the import and export declaration with the taxpayer’s expected duty cancellation amount.

b) Application with supplementation needed

Within 03 working days from the date of receipt of the application for duty cancellation, the processing officer shall make a notice of supplementation of application according to the Form No. 4, Appendix II issued together with the Circular No. 06/2021/TT. -BTC (for electronic application) or make a report according to according to form No. 04/TT-TXNK issued together with the Procedures, a draft notice made according to the form No. 05/ TXNK Appendix I to Circular No. 06/2021/TT-BTC and submit them to the head of division, the head of unit for approval, and then send it to the taxpayer. The time limit for supplementing the application is 05 working days from the date the taxpayer receives the notice from the customs authority.

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b.1.1) If the duty cancellation application is eligible, the processing officer shall comply with point c of this Clause.

b.1.2) If the taxpayer completes the application but the processing officer determines that the duty cancellation application is ineligible, then comply with Point d of this Clause.

b.2) In case the time limit for supplementing the application expires, but the taxpayer fails to explain or supplement the application, the customs authority shall notify the taxpayer of insufficient grounds for duty cancellation according to the Form No. 5 Appendix II promulgated together with Circular No. 06/2021/TT-BTC on the Duty exemption, reduction and refund system (for electronic application) or make a report according to Form 01/TT-TXNK issued together with this Procedures, a draft notice according to Form 06/TXNK Appendix I issued together with Circular No. 06/2021/TT-BTC (for paper application).

c) Application eligible for duty cancellation

c.1) If the first import or export declaration of the re-imported or re-exported consignment does not generate the expected duty refund amount and the taxpayer submits an application for duty cancellation at the time of carrying out customs clearance:

The processing officer shall check the application as prescribed at Point a of this Clause. In case of being eligible for duty cancellation, they shall follow the procedure to issue a decision on duty cancellation within the time limit for carrying out customs clearance according to Point b, Clause 4, Article 37a of Decree No. 134/2016/ND-CP, as amended and supplemented in Clause 19, Article 1 of Decree No. 18/2021/ND-CP and guidance in Clause 5 of this Article.

c.2) In case the first import or export declaration of the re-imported or re-exported consignment has an expected duty refund amount:

c.2.1) Where the re-import and re-export declaration is not at the same border checkpoint as the first exported or imported goods, the taxpayer has already paid duty on re-imported and re-exported goods (goods that have been cleared through customs)

c.2.1.1) The customs authority where the customs declaration of re-imported or re-exported goods is registered shall issue a decision on cancellation of the duty on the re-imported or re-exported consignment immediately after the customs authority where the expected duty refund amount is determined eligible for the first exported or imported goods. The basis for determining that goods are eligible for duty refund is that the customs authority where the expected import or export duty refund amount arises has issued a decision on duty refund or has concluded that duty refund conditions are satisfied.

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c.2.1.3) The paid duty on re-imported and re-exported goods shall be handled as overpaid duty according to Chapter IV of this Procedure.

c.2.1.4) The time limit for processing an application of duty cancellation is 06 days in case the corresponding refund application is subject to duty refund in advance or 40 days in case the corresponding duty refund application is subject to inspection in advance.

c.2.2) Where the re-import and re-export declaration is not at the same border checkpoint as the first exported or imported goods and the taxpayer has not paid duty on re-imported and re-exported goods (goods that have not been cleared through customs)

c.2.2.1) The customs authority where the customs declaration of re-imported or re-exported goods is registered shall issue a decision on cancellation of the duty on the re-imported or re-exported consignment immediately after the customs authority where the expected duty refund amount is determined eligible for the first exported or imported goods.

c.2.2.2) After the customs authority handling the duty cancellation application issues a decision on cancellation of the duty on the re-import or re-export declaration, the customs authority shall issue a decision on duty refund for the original import and export declaration.

c.2.2.3) The time limit for processing an application of duty cancellation is 06 days in case the corresponding refund application is subject to duty refund in advance or 40 days in case the corresponding duty refund application is subject to inspection in advance.

c.2.3) In case goods are re-imported or re-exported at the same border checkpoint as goods when exporting or importing for the first time

c.2.3.1) The customs authority shall issue a decision on cancellation of the duty on re-imported and re-exported goods after completing the procedures for duty refund of first-time imports or exports.

c.2.3.2) In case the taxpayer has paid the duty on re-imported and re-exported goods (goods cleared), the paid duty on re-imported and re-exported goods shall be handled as overpaid duty according to Chapter IV of this Procedure.

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c.3) If the first-time export or import declaration does not generate an expected duty refund amount, the taxpayer has already paid duty on the declaration of re-import and re-export and submits an application for duty cancellation after the goods are re-imported or re-exported have been cleared:

c.3.1) The processing officer shall cancel the duty on re-imported or re-exported goods as prescribed in point c.1 of this Clause.

c.3.2) The paid duty on re-imported and re-exported goods shall be handled as overpaid duty according to regulations.

c.3.3) The time limit for processing duty cancellation applications is 05 days from the date of receipt of applications.

d) Application ineligible for duty cancellation

As soon as practicable after determining that the application is ineligible for duty cancellation, the processing officer shall propose sending a notice of the application’s ineligibility for duty exemption to the taxpayer according to Form No. 5, Appendix II enclosed with Circular No. 06/2021/TT-BTC on the Duty exemption, reduction and refund system (for electronic application) or make a report according to Form No. 01/TT-TXNK issued together with this Procedure, a draft notice of ineligibility for duty cancellation according to Form No. 06/TXNK Appendix I issued together with Circular No. 06/2021/TT-BTC (for paper application), and then transfer them to the head of division for submitting them to the head of unit for approval. After the head of unit approves, the processing officer shall notify the taxpayer that the application is ineligible for duty cancellation.

5. Issuing a decision on duty cancellation

a) In case of determining that the goods are eligible for duty cancellation, the Director of the Sub-department of Customs where the customs declaration of exported or imported goods is registered that generates the duty cancellation amount proposed by the taxpayer shall issue a decision on duty cancellation according to Form No. 13/TXNK Appendix I issued together with Circular No. 06/2021/TT-BTC, the issuance of the decision on duty cancellation is similar to the provisions in Article 19 of this Procedure.

The e-customs management code of the decision on duty cancellation issued by the System has a structure of 9 digits: the first two digits are the last two digits of the year in which the decision is issued, and 02 the next digits are the code of the Customs Department of the province or city where the decision is issued, the next 5 digits are the sequence of numbers that increase in each year.

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b) The head of the Sub-department of Customs where the customs declaration of imported and exported goods is registered that generates the duty cancellation amount proposed by the taxpayer has the authority to issue a decision on duty cancellation.

6. Record keeping

a) Electronic application: The Department of Information Technology and Customs Statistics, the Customs Departments of provinces and cities and the Customs Sub-Departments are responsible for storing duty reduction information on the electronic data processing systems, ensuring safety in accordance with the confidentiality regime, providing relevant departments in accordance with the information provision regime of the customs industry.

b) Paper application: The duty cancellation applications shall be kept at the customs authority that issues that duty reduction decision.

Chapter IV

PROCEDURES FOR HANDLING OVERPAID DUTIES, LATE PAYMENT INTERESTS OR FINES

Article 25. Receipt and assignment of processing applications

1. The authority to handle overpaid duties, late payment interests and fines (hereinafter referred to as overpaid duty) complies with Clause 2, Article 10 of Circular No. 06/2021/TT-BTC.

2. The customs authority shall receive the application for handling overpaid duty through the Duty exemption, reduction, and refund system or by post or submitted in person by the taxpayer at the customs authority. The receipt of application for handling overpaid duty is similar to the regulations on receipt and assignment of processing tax refund applications specified in Clause 1, Article 16 of this Procedure.

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4. Customs authorities are not required to classify applications for handling of overpaid duty.

Article 26. Checking application

1. Matters to be checked

The customs authority where the overpaid duty is incurred shall check the application on the Duty exemption, reduction or refund system or check the paper application.

a) Check the application form enclosed with relevant documents in the application for handling of overpaid duty.

b) Check the customs declaration of imported and exported goods, the decision on tax imposition, the decision on penalties for administrative violations which incurs overpaid duty;

c) Check the reason for requesting handling of overpaid duty;

d) Checking documents of overpaid duty;

dd) Check the data on VNACCS, centralized tax accounting system and related systems (if any);

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g) In case of refunding the overpaid value-added tax of the previous year but issuing a duty refund decision after March 31 of the following year, the customs authority needs to collect information from the local tax authority to serve the duty refund, the customs authority shall send a written request to the local tax office where the enterprise is managed to provide information and data on tax declaration and tax finalization report of the taxpayer to serve the purpose of duty refund.

2. Application with supplementation needed

Within 03 working days from the date of receipt of the application, the processing officer shall make a notice of supplementation of application according to the Form No. 4, Appendix II issued together with the Circular No. 06/2021/TT-BTC (for electronic application) or make a report according to the form No. 05/ TXNK Appendix I to Circular No. 06/2021/TT-BTC and submit them to the head of division, the head of unit for approval, and then send it to the taxpayer. The time limit for supplementing the application is 5 working days from the date the taxpayer receives the notice on the System (for electronic application) or the notice on paper (for paper application) from the customs authority.

a) After the taxpayer has supplemented and fully explained the application, the processing officer shall continue to inspect and handle it according to Clause 1 of this Article.

a.1) In case of eligibility to handle overpaid duty, the processing officer shall comply with Clause 3 of this Article.

a.2) In case the taxpayer has explained and supplemented the application but it is ineligible to handle the overpaid duty, the processing officer shall comply with Clause 4 of this Article.

b) In case the time limit for supplementing the application expires, but the taxpayer fails to explain or supplement the application, the customs authority shall notify the taxpayer of insufficient grounds for handling overpaid duty according to the Form No. 5 Appendix II promulgated together with Circular No. 06/2021/TT-BTC on the Duty exemption, reduction and refund system (for electronic application) or make a report according to Form 01/TT-TXNK issued together with this Procedure, a draft notice according to Form 06/TXNK Appendix I issued together with Circular No. 06/2021/TT-BTC (for paper application).

3. If the application is eligible for refund of overpaid duty, the customs authority shall issue a decision on refund of overpaid duty as prescribed in Article 27 of this Procedure.

4. In case the application is ineligible for handling overpaid duty, the customs authority shall notify the taxpayer of such ineligibility according to the Form No. 5 Appendix II promulgated together with Circular No. 06/2021/TT-BTC on the Duty exemption, reduction and refund system (for electronic application) or make a report according to Form 01/TT-TXNK issued together with this Procedure, a draft notice according to Form 06/TXNK Appendix I issued together with Circular No. 06/2021/TT-BTC (for paper application).

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Procedures for issuance of decisions on refund of overpaid duty are similar to those specified in Article 19 of this Procedure. The decision on refund of overpaid duty is made according to Form No. 09/QDHT/TXNK Appendix IV to Circular No. 38/2015/TT-BTC as amended and supplemented in Appendix III issued together according to Circular No. 39/2018/TT-BTC.

The e-customs management code of the decision on refund of overpaid duty automatically issued by the system has a structure of 9 digits: the first two digits are the last two digits of the year in which the decision is issued, and 02 the next digits are the code of the Customs Department of the province or city where the decision is issued, the next 5 digits are the sequence of numbers that increase in each year.

For paper application, the customs management code of the decision on refund of overpaid duty has a structure of 10 digits: 02 first digits are the code of the Customs Department of province/city, 02 following digits are the last 02 digits of the year of issuance of the decision, the next 04 digits are the ordinal numbers according to the sequence of natural numbers calculated for each year, the next 02 digits are the code for handling overpaid duty (NT).

Article 28. Handling of overpaid duty

The handling of overpaid duty after the issuance of the decision on refund of overpaid duty is similar to the duty-refunded amount specified in Clause 2 of this Article 13 of this Procedure.

Article 29. Time limit for issuance of decisions on refund of overpaid duty

Within 05 (five) working days from the date of receiving the taxpayer's application form for refund of overpaid duty, the customs authority shall issue a decision on refund of the overpaid duty or notify the taxpayer of non-handling of overpaid duty.

If, after issuing a decision on refund of overpaid duty, the customs authority determines that it is necessary to conduct an inspection at the taxpayer's office, it shall follow the procedures for post-customs clearance inspection at the taxpayer's office as similarly to the case of inspection after duty refund for applications eligible for duty refund in advance.

Article 30. Keeping applications for and information about refund of overpaid duty

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Quyết định 3394/QĐ-TCHQ năm 2021 về Quy trình miễn thuế, giảm thuế hoàn thuế không thu thuế, xử lý tiền thuế, tiền chậm nộp, tiền phạt nộp thừa đối với hàng hóa xuất khẩu, nhập khẩu do Tổng cục trưởng Tổng cục Hải quan ban hành