THE MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No. 113/2005/TT-BTC
Hanoi, December 15, 2005
  CIRCULAR
GUIDING THE IMPLEMENTATION OF THE IMPORT TAX AND EXPORT TAX LAW
 
Pursuant to Law No. 45/2005/QH11 on Import Tax and Export Tax; the Government’s Decree No. 149/2005/ND-CP of December 8, 2005, detailing the implementation of the Import Tax and Export Tax Law;
Pursuant to June 29, 2001 Law No. 29/2001/QH10 on Customs; June 14, 2005 Law No. 42/2005/QH11 Amending and Supplementing a Number of Articles of the Customs Law; the Government’s Decree No. 154/2005/ND-CP of December 15, 2005, detailing a number of articles of the Customs Law on customs procedures, inspection and supervision;
Pursuant to the Government’s Decree No. 155/2005/ND-CP of December 15, 2005, providing for the customs valuation of imports and exports;
Pursuant to the Government’s Decree No. 66/2002/ND-CP of July 1, 2002, providing for luggage quotas for people on entry or exit, and imported gifts and presents entitled to tax exemption;
The Finance Ministry hereby guides the implementation of import tax and export tax as follows:
PART A

>> See also:  Goods under the temprorary import, re-Export have to declare dutiable value

GENERAL PROVISIONS
I. TAXABLE OBJECTS:
Except for those specified in Section II, Part A of this Circular, goods in the following cases shall be liable to import tax or export tax.
1. Goods exported or imported through Vietnamese border gates or border, including goods exported or imported through border gates on land, rivers, at seaports, airports, transnational railways, international posts and other customs procedure clearance venues established under decisions of competent state agencies.
2. Goods brought from the domestic market into non-tariff zones and vice versa.
3. Other traded or exchanged goods that are considered imports or exports.
II. NON-TAXABLE OBJECTS:
Goods in the following cases shall not be liable to export or import tax:
1. Goods transited and transported by mode of border-gate transshipment through Vietnam’s border gates or border under the provisions of customs law.
2.Humanitarian aid goods, non-refundable aid goods provided by foreign governments, United Nations organizations, inter-governmental organizations, international organizations, foreign non-governmental organizations (NGOs), foreign economic organizations or individuals to Vietnam and vice versa, for socio-economic development or other humanitarian purposes, under official documents between the two parties which are approved by competent authorities; humanitarian aid and emergency relief for overcoming consequences of wars, natural calamities or epidemics.

>> See also:  Official Dispatch No. 1744/TCHQ-GSQL dated April 22, 2011 of the Ministry of Customs on C/O form D for on-spot import and export

3.Goods exported from non-tariff zones to abroad; goods imported from abroad into non-tariff zones and only used therein; goods brought from one non-tariff zone to another.
4. Exported petroleum belonging to the State’s natural resources.
III. TAXPAYERS; SUBJECTS AUTHORIZED TO PAY TAX OR ALLOWED TO PAY TAX ON BEHALF OF OTHERS OR TO GUARANTEE TAX PAYMENT:
1. Taxpayers specified in Article 4 of the Import Tax and Export Tax Law, including:
1.1. Owners of imports or exports.
1.2. Organizations undertaking consignment of goods export or import.
1.3. Individuals having imports or exports upon entry or exit; sending or receiving goods through Vietnamese border gates or border.
2. Subjects authorized to pay tax or allowed to pay tax on behalf of others or to guarantee tax payment, including:
2.1. Customs procedure clearance agents, for cases where they are authorized by taxpayers to pay import or export tax.
2.2. Enterprises providing international postal or express mail services, for cases where they pay taxes on behalf of taxpayers.
2.3. Credit institutions or other organizations operating under the Law on Credit Institutions, for cases of providing guarantee for, or paying tax on behalf of, taxpayers under the provisions of Section III, Part C of this Circular.
IV. APPLICATION OF TREATIES
Where a treaty to which the Socialist Republic of Vietnam is a contracting party contains provisions on import tax or export tax different from those of this Circular, the provisions of such treaty shall apply.
V. TAX ON GOODS BOUGHT, SOLD OR EXCHANGED BY BORDER RESIDENTS:
Goods bought, sold or exchanged by border residents within certain quotas shall be tax-free, their quantities in excess of such quotas shall be taxed.
Tax-free quotas of goods bought, sold or exchanged by border residents shall comply with the Prime Minister’s decisions.     
VI. CUSTOMS VALUATION:
1. The customs valuation provided for in this Circular is aimed to calculate taxes and make statistics on exports and imports.
1.1. Customs value used for the taxation purpose (hereinafter referred to as dutiable value) shall be determined on the principles and by the method provided for at Point 1.2, Section I, Part B of this Circular.
1.2. Customs value used for the statistical purpose (hereinafter referred to as statistical value) shall be determined on the following principles:
1.2.1. For taxable goods, their statistical value shall be their dutiable value already determined on the principle and by the method stated at Point 1.2, Section I, Part B of this Circular.
1.2.2. For goods which are not liable to tax, tax-free, are considered for tax exemption or the dutiable value of which cannot be determined under the provisions of Point 1.2, Section I, Part B of this Circular, their statistical value shall be the value declared by customs declarants.
Statistical value data shall be collected, preserved and used under current regulations on customs statistics.
2. The determination of dutiable value shall be based on information and documents recorded and reflected on accounting principles laid down in Vietnam’s Accounting Law and general accounting principles accepted by concerned countries.
VII. EXCHANGE RATES FOR THE DUTIABLE VALUE DETERMINATION, TAX PAYMENT CURRENCY:
1. The rate of exchange between Vietnam dong and a foreign currency used for the dutiable value determination shall be the average transaction exchange rate on the interbank foreign currency market publicized by the State Bank of Vietnam at the time of tax calculation, published on Nhan Dan (People) daily and the website of the State Bank of Vietnam; on a day when Nhan Dan daily is not published or is published without exchange rate information or no exchange rate information is put on the website or reaches the border gate, the preceding day’s exchange rate already used for determination of the dutiable value shall be used.
Where a taxpayer makes declaration before the date of registration of the customs declaration, the exchange rate used on the date of declaration shall be used, provided that such date is no more three days earlier than the date of registration of the customs declaration.
For a foreign currency for which the average exchange rate of transactions on the interbank foreign currency market has not yet been publicized by the State Bank of Vietnam, its exchange rate shall be determined on the basis of the USD-VND exchange rate and the exchange rate between the USD and such foreign currency publicized by the State Bank of Vietnam at the time of tax calculation.
2. Tax payment currency: Import tax and export tax may be paid in Vietnam dong or a freely convertible foreign currency. Such foreign currency shall be converted into Vietnam dong at the average transaction exchange rate on the interbank foreign currency market publicized by the State Bank of Vietnam at the time of tax calculation. 
VIII. INTERPRETATION OF TERMS:
The terms used in this Circular shall be interpreted as follows:
1. Goods sale and purchase contract means an agreement in the written form on goods sale and purchase for importing goods into Vietnam, whereby the seller is obliged to deliver goods and transfer the ownership thereof to the buyer and receive a sum of money; the buyer is obliged to pay a sum of money to the seller and receives the goods. Telegraphs, telexes, faxes, e-mails and other electronic communication forms printed on paper shall also be considered to be in written form.
2. Buying commission means a sum of money paid by the buyer to his/her representing agent for buying imports at the most reasonable price.
3. Sale commission means a sum of money paid by the seller to his/her representing agent for selling exports to the buyer.
4. Brokerage charge means a sum of money paid by the buyer or seller or both buyer and seller to the broker who assumes the intermediate role in the transaction of buying imports.
5. Royalties and license fee mean sums of money paid directly or indirectly by the buyer to the copyright holder or licenser for using a product for which intellectual property rights have been registered. For example, money paid for patents, design copyrights, trademarks, trademark use rights, authorship or production permits.
6. Goods shall be regarded to be of approximate values if the difference of these values is affected by the following objective factors:
- The nature of goods, characteristics of goods-manufacturing industries;
- The seasonability of goods;
- Insignificant commercial difference.
In considering the approximation of two values, they must be put under the same sale and purchase conditions.
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