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THE
GENERAL DEPARTMENT OF CUSTOM
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No.
640/QD-TCHQ
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Hanoi,
April 03, 2006
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DECISION
ON PROMULGATING PROCEDURES ON VERIFICATION AND DETERMINATION
OF TAXABLE VALUE FOR IMPORT, EXPORT GOODS
HEAD OF CUSTOMS GENERAL DEPARTMENT
Pursuant to Law on Customs
No. 29/2001/QH10 dated June, 2001 and Law on Amending to and Supplementing of number
of Articles of Law on Customs No. 42/2005QH11 date June 14, 2005;
Pursuant to Decree No. 96/2002/ND-CP dated November 19, 2002 of the Government
on Functions, Duties, Powers and Structural Organization of the Customs General
Department;
Pursuant to Decree No. 155/2005/ND-CP dated December 15, 2005 of the Government
15, 2005 on determination of customary value for import, export goods;
Pursuant to Circular No. 113/2005/TT-BTC dated December 15, 2005 of the
Ministry of Finance Providing guidelines on the Implementation of Import,
Export Taxes;
At the recommendations of the Chief of Import, Export Taxes Collection Agency.
DECIDES
Article 1.
To promulgate in conjunction with this Decision a procedures on verification
and determination of taxable value of import and export goods.
Article 2.
This Decision shall take its effect 15 days following the date the same is
execute and have its validity of replacement of Decision No. 733/TCHQ/QD/KTTT
dated July 19, 2004 of the Head of Customs General Department; Decision No.
1361/TCHQ/QD/KTTT dated November 25, 2004 of the Head of Customs General
Department; other previous implementing instruments of the Customs General
Department regarding the consultation of taxable value.
Article 3.
The heads of agency under the management of Customs General Department; Head of
Customs Department at the provinces, cities shall be responsible for the
implementation hereof.
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ON BEHALF OF THE HEAD
DEPUTY HEAD
Dang Thi Binh An
PROCEDURES ON
I/ GENERAL
PROVISIONS:
This procedures provide guidelines
for stages of verification of declared taxable value and consulting of taxable
value, allocation of assignment and duties of each departments in relation to
verifications and determination of taxable value.
1/ Verification of declarations
of taxable value is aim at legal compliance in declaring of taxable value of
the declarer and to ensure a proper and full collection of tax for the State
Treasury.
2/ Principle for verification
and determination of taxable value: To comply with provisions on verification,
determination of taxable value provided in Decree 155/2005/ND-CP of the
Government dated December 15, 2005 on verification and determination of import,
export goods; Circular No. 113/2005/TT-BTC of the Ministry of Finance dated
December 15, 2005 providing guidelines for implementation of import, export
taxes; other legal instruments on taxable value.
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- To give instructions and be
responsible for supervision of verification and determination of taxable value,
settlement of appeals on taxable value, and ensure unanimous performance of the
determination of taxable value at such department. To regularly and timely
inspect, enhance and correct the activities of verifications and determinations
of taxable values at the department.
- To assign its officers to
directly assist sub-department in is verification, consultation and
determination taxable value for essential shipments.
- To implement the
exploitation and update to taxable value data program (GTT22) information on
taxable value of goods in accordance with GTT22’s criteria. To assign its
officer to inspect and supervise taxable value in accordance with the heading,
groups so that they can set up special team for taxable value of each goods
line.
- To regularly
implement the verification of pricing data of GTT22 net, and timely discover
doubtfull prices for proper settlement.
Basing upon the
results of pricing verification results, analysis of status and capability of
pricing fraud, from time to time to introduce list of essential goods that may
be subject to trade fraud in term of prices and report to the general
department for prcing management through a system of risk management.
- To manage the
update and exploiation of taxable value data system, transfer of data to the
upper level and sharing data to subjected levels, timely provide information on
taxable price for the verification of value through out the unit.
4/
Responsibilities of sub-departments: To implement the declaration of taxable
value of customs declareres, to carry out taxable value consultation for cases
the are required to be consulted and to determine taxable value for cases laid
under customs authority as provided by the prevaling laws.
II/ PROCEDURES FOR VERIFICATION AND DETERMINATION OF TAXABLE VALUE:
1/ For dossier of green line:
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Subject to
shipment documents and basing upon the prevailing regulations on verification
and determination of taxable value and contents that shall pay attentions to
during the verification as set out at item 2.1, stage 1 Point 2 below, the
customs officers shall verify the legal compliance with respect to the
determination of taxable value of the declarer, re-inspect the declared value
on the available information at the customs department.
Verification at
the department. The duration for the verification shall be exended to the
collection and completion of documents as provided by the laws.
Results of
Inspection:
1.1/ Where there
is no breach to the prevailing regulations on determination of taxable value or
doubtfullness on violation or declared value, the documents shall be transfered
to the next stages ofthe current progress.
1.2/ Where there
are breaches to prevailing regulations on determination of taxable value, the
officer shall report to the Head of Department to reject the declared
information and re-calculate taxable value in line with stages 3 of this item
2. The results thereof must be updated to the GTT22 program.
1.3/ In cases the
verification shows that there may be certain threanten of violation of taxablu
value (as provided at Item 2 Section III below), the officer shall report to
the Head of Dpeartment all doubtfullness and bases thereof for the purposes of
verification after the clearance. Following the agreement of the Head of
Department to transfer the case to department responsible for verification
after clearance, such transfer must be make in accordance with form 3 attached
herewith.
2/ For Dossier of yellow and red lines:
Stages 1:
Verification on details of taxable value declaration:
2.1/ Scope of verification:
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a/ For cases declarers determine
taxable value by way of transaction value, followings issues must be verified:
- Conditions of application: to
reconcile these issues to provisions of Circular 113/2005 of the Ministry of
Finance dated 15, 2005 in order to verify commercial contract and import
dossier. For cases where special relation is declared, verification of
effectiveness of such special relations to transaction value must be conducted
prior to a rejection of transaction value, such verification may be performed
by comparing declared value to information available at the customs office.
- Uniformity of commercial
invoice and supported documents ( contract, purchase order, insurance policy,
etc.)
- Uniformity of adjustments made
under provisions of Section VII Schedule 1 of Circular No. 113/2005/TT-BTC of
the Ministry of Finance dated 15, 2005 to relevant documents.
b/ For cases declarers determine
taxable value by way of transaction value of similar or identical goods,
following issues must be verified:
- Reconciliation of number of
declaration of identical or similar goods to data stored at customs office.
- Whether actual import goods
(as stated on the dossier, a physical inspection may be conducted subject to
the Head’s decision) and sample goods are satisfied requirements applicable for
identical or similar goods.
- Whether the applied method for
determination of taxable value of identical or similar goods is transaction
value.
- Condition on schedule for
export of the shipments.
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c/ For cases declarers determine
taxable value by way of deduction method, following issues must be verified:
- Whether actual import goods
(as stated on the dossier, physical inspection may be conducted in accordance
with the Head’s decision) and sample goods are satisfied all requirements
applicable for identical or similar goods.
- Legality and appropriation of
invoices, transportation documents, insurance for matters arising in domestic
market.
- Applied unit prices.
- Suitability of deducted
expenses to the prevailing accounting regulations.
- Sale duration after the
import.
- Whether relationship between
the imported and purchaser affect the re-sale prices?
d/ For cases declarers determine
the taxable value by way of computing value, following issues must be verified:
- suitability between original
documents and submitted copies (certified true copy).
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e/ For cases declarers determine
taxable value by way of reasoning, following issues must be verified:
- suitability between applicable
method and principles provided in Decree No. 155/2005/ND-CP and Circular No.
113/2005/TT-BTC.
- Accuracy, objectiveness of
supporting documents and data used for determination of taxable value.
2.2/ Dealing with verification
results:
a/ Should the verification do
not reveal any violation of prevailing rules and provisions concerning the
determination of taxable value and there is doubtfulness of declared taxable
value, such declared taxable value must be accepted and dossier thereof shall
be transferred following stages of applicable procedures.
b/ Should the verification
reveal any violation of prevailing rules and principles concerning the
determination of taxable value, customs officer shall report to the head of
customs department to reject declared taxable value and determined taxable
value during the clearance as provided at stage 3 hereof.
c/ Should the verification
reveal any doubtfulness of declared taxable value (in accordance with item 2
Section II below), customs officer shall report to the head of customs
department such doubtfulness and basis thereof for his decision on consultation
for such doubtfulness. Where there is approval on consultation, customs officer
shall inform declarers of temporary acceptance of declared taxable value and
consultation thereof shall be made so that they can explain and submit further
supporting documents for clarification at the latest of 30 days (working days)
as from the date of clearance. Noticed information must be expressly provided
at item 37 of declaration form.
d/ For e-customs, works of point
b and c of item 2.2 shall be carried out as follows: if the verification process
must include with determination of taxable value (point b) or with consultation
and determination (point c), dossier must be transfer to ex-clearance
inspection team under e-customs for its consultation, determination of taxable
value in accordance with prevailing procedures for determination of taxable
value.
Stage 2: Consultation
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Stage 3: Determination of
taxable value
Taxable value shall be determined
by customs department for cases as provided in Stage 1, item 2 hereof.
Taxable value determination
shall be conducted in accordance with provisions of Circular No.
113/2005/TT-BTC of the Ministry of Finance dated December 15, 2005 basing upon
available information of customs office. Applied bases and method must be
expressly noticed.
Customs officer must submit the
dossiers for head of customs department approval of results of the
determination of taxable value with respect to cases subject to be determined
of taxable value, send a notice of the same to declarers for their
implementation (form 2 attached hereof), such notice must be filed together
with import dossier.
Stage 4: Updating of results
to GTT22
All data processed during the
clearance must be timely updated to GTT22 program of such declaration.
III/ REGULATIONS ON TAXABLE VALUE CONSULTATION:
1/ Purposes of consultation :
Taxable value
consultation is a skills of customary professional process. Consultation aims
at determination of truthfullness of declared taxable value as the same may be
doubted by the customs and give the declarers a chance to submit further
supporting documents for proving of such truthfulness or let them acknowledge
the correctness of customs doubts, or their violation during the declarations.
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For the purposes of ensuring of
efficiency of consultation and keep the entities harmless, consultation shall
only be conducted to shipments subject to the two following conditions:
2.1/ Should customs find any
doubtfulness concerning truthfulness of any submitted document of declared data
concerning the determination of taxable value during the verification of
taxable value, but the customs do not have sufficient basis for conclusion of
the same;
2.2/ Declared taxable value of
import goods is 90% lower than transaction value (which is undoubted and
accepted to be taxable value), or value determined by method 2 – 6 applicable
for identical or similar goods export on the same date or within 60 days
(calendar days) before or after the date the shipment in question is exported
available in customs taxable value system (GTT22).
Notes:
- Should there be any identical
shipment of the same company owning shipment in question, consultations thereof
should be conduct at the same time.
- For shipment that is identical
to shipments of the same company which are subject to be consulted previously
but declared taxable values thereof have yet be rejected and are undergone with
ex-clearance inspection procedures, dossiers and doubtfulness thereof shall be
transferred ex-clearance inspection team to monitor together with previous
shipments
- For shipment identical to
shipments of the same companies which have undergone consultations but yet be
rejected due to lack of bases and taxable value thereof have been accepted, no
transfer for ex-clearance were made, consultation shall not be made, should
there be no new information in comparison with previous shipments,
3/ Mode of
consultation and timeline:
3.1/ Consultation must be
conducted directly and the customs must request the companies to come for
direct consultation.
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A written request for
clarification may be sent prior to the consultation where the same is so
required; however in all case timeline must be complied.
3.2/ Consultation must be
conducted within 30 days (working days) after the clearance. Consultation must
be conducted at the earliest as the case may be and shall only prolong for 30
days at the maximum for complicated case or for companies that subject to many
consultations.
4/
Conducting of Consultation:
Stage 1: Approval and
assignment
- Should the officer in charge
with dossier verification discover any doubtful issues as provided in item 2 of
this section, he shall report to the head of customs department for his
approval of consultation.
- For e-customs department,
officer in charge with dossier verification discover any doubtful issues as
provided in item 2 of this section, he shall input his verification results to
the system and transfer the dossier included with the doubtfulness (if any) to
ex-clearance inspection team for reporting to the head of customs department
for his approval and carrying out following necessary stages of consultation.
- Head of customs department
shall approve the initiation of consultation, issues required to e clarified;
assignment for consultation must be include with 2 individuals. Head of
department shall approve the consultation during the clearance time.
Stage 2:
Preparation for Consultation
Officer assigned for
consultation must studies the files and submit to the department head for his
execution of consultation notice and send the same to declarer requesting for
consultation in accordance with form 1 attached hereto. Timetable for consultation
shall be decided on case by case basis in accordance with timetable for
consultation as provided herein and in conformity with the study and
preparation of relevant files.
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*
Documentation preparation for consultation:
Documentation shall be prepared
separately for each shipment and must be filed together with import dossier.
Documents to be filed must include with all files relating to the consultation
of such shipment.
* Preparation of relevant file
and information:
- Files, data that are related
to price of imported goods subject to be consulted and company’s import
activities.
- Prices of identical or similar
shipments that are exported to Vietnam on the same date or within 60 days
(calendar day) before or after the export date of consulted shipment, in GTT22
system.
- Status of onshore and offshore
market relating to consulted goods during a period closed to the imported time
of consulted shipment, selling prices on domestic market (whole sales, retail
sales,...), consumption of consulted goods.
- To collect, prepare other
relevant information and files: by searching internet, domestic and
international pricing magazines, domestic data, etc. Such information (if any)
must be printed out for filing together with the consultation documentation. In
addition, information relating to company profile shall also be collected for
the purposes of facilitating the consultations.
Apart from the above factors, to
ensure the accuracy, objectiveness, and efficiency of the consultation, studies
and analysis of information directly related to the declaration: essential
goods that are subject to high tax obligations, big value which are easily
subject to pricing fraud, regularly breached by big companies; goods that
originate from countries, territories containing high risk, or are of seasonal
nature or containing technology development factors, common variety of
international market, etc
* Questionnaire preparation for
particular shipment: Specific doubtful issues affecting declared value must be
determined for preparation of questionnaire. On the cases by case basis,
questions must focus on clarifying certain following fundamental issues: issues
on operation of companies, companies’ clients, mode of contract execution
concerning the prices, payments, merchandise characters, sale following the
import, etc.
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- Officer conducting the
consultation must have his behavior of a politeness and courteousness manner,
clearly explain to the declarers their right and obligations in connection with
the consultation for their advance co-operation with the customs with regard to
the clarification f declared value. Such explanation must provide a benefit of
consultation in connection with anti-pricing fraud for the purposes of avoiding
losses to the State Treasury, maintaining the fairness among the companies;
inform the companies of right and obligations of customs during the
consultation, and notice of legal proceedings that may be applicable where the
companies intentionally commits tax evasion (through ex-clearance inspection,
anti-smuggling, coordinate among Vietnamese customs and customs or other forces
of relevant countries, etc.).
- Questioning and listening to
companies’ answers, forcing shall be avoided, focusing on question for
clarifying doubtful issues and making comparison to discover contradictories
between information provided by the companies (answers and import dossier and
available information verified by the customs). Unreasonable issues of declared
information must be pointed out in comparison with identical or similar
shipment or with market information in connection with international and
domestic pricing data. Unreasonableness of declared value due to composition of
cost of production must also be pointed.
Notes: During the consultation,
it is not necessary to introduce all the question or be limited in prepared
questions, appropriate measures during the process may be applied as the case
may be.
- Minutes of consultation must
be made at the end of each consultation, consulted issues, regulations
citations, basis for acceptance or rejection, opinion of customs office on
acceptance or rejection must be provided. Minutes must includes with parties’
signatures.
- Reporting to department head
of consultations results and recommendation on dealing measures.
Stage 4: Dealing with
consultation results
a/ Declared value shall not be
accepted in the following cases:
* Customs office shall nor
accept declared value due to following specific reasons:
- Upon the expiry of
consultation time limit, declarers still refuse to join the consultation, do
not explain, furnish relevant documents to the customs office for verification
of declared value.
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- Answers by declarers are
conflict to the dossier.
- Declarers fail to inform or
inaccurately inform of actual price that are paid or obliged to be paid as
provided in Circular No. 113/2005/TT-BTC of the Ministry of Finance dated
December 15, 2005.
- Information furnished by
declarers is verified to be inaccurate, supporting documents are fake or
inappropriate or illegal.
- Declarers or their authorized
persons acknowledge that declared values are not in line with actual
transaction.
- Information collected by the
customs through its professional skills reveal declared value is untrue.
* For cases that declared values
are not accepted, proposal for determination of taxable value shall be
conducted in line with Stage 3 of point 2 section 2 hereof.
Where there is approval of
department head on dealing with consultation results, customs office shall
inform the declarers of rejection of declared value (together with basis
thereof) and newly determined taxable value for their implementation. Notice
shall be made in form 2 attached hereto.
Time limit for determination of
taxable value and informing to declarers shall be limited at the maximum of 5
days (working days) as from the date the minutes of consultation is signed.
b/ Acceptance of declared value:
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c/ After the consultation,
should the customs cannot reject declared values in accordance with point (a)
as provided above, but there are still certain doubtfulness, customs office
shall report to the head of customs department fro transfer all doubtful
information and basis thereof to ex-clearance inspection team for next
inspection. Transfer shall be made in form 3 attached hereto following the
department head’s approval.
d/ All documents, files relate
to the consultation must be filed together with dossier of such shipment.
IV/ RELATION
BEWTEEN EVALUATING SKILLS AND EX-CLEARANCE INSPECTION:
All customs
department must stipulate the coordinate between the evaluation unit and
ex-clearance inspection for the purposes of prevention for and fighting with
trade fraud through prices.
For cases of doubtfulness
on declared values transfered to ex-clearance inspection, evaluation unit must
prepare files compsoed of sufficient collected documents and clearly provide
all doubtful issues so that the ex-clearance can have their for appropriate
action.
Upon receipt of
files transfered from evaluation unit, ex-clearance inspection team must
analyse the documents to proceed with the ex-clreance inspection in accordance
with ex-clearance inspection, conclusion on taxable value must be inform to
evaluation unit for the latter update of comon data..
V/
IMPLEMENTATION:
- Head of Customs Department of
provinces and cities shall be responsible to Head of General Customs Department
in connection with their instruction in strictly implementation of the
aforementioned contents to prevent trade fraud through prices.
- Pursuant to the above
provisions, local customs department may based upon its conditions to issues
particular instruction for performance of professional skills and internal
reporting timeline in accordance with the general customs department.
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ON
BEHALF OF THE HEAD
DEPUTY HEAD OF GENERAL CUSTOMS DEPARTMENT
Dang Thi Binh An
FORM 1:
NOTICE OF CONSULTATION
Customs Department of ……
Sub- Department of
...............
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No. ......
[date]
NOTICE
Re:
Taxable Value Consultation
- Pursuant to Decree No.
155/2005/ND-CP of the Government dated December 15, 2005 on determination of
taxable value for import, export goods;
- Pursuant to Circular No.
113/2005/TT-BTC of the Ministry of Finance dated December 15, 2005 providing
guidelines for implementation of import, export tax;
- Basing upon the verification
of declared taxable value of declarer
Sub-Customs Department of
............................................. hereby notices
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Tax I.D.:
Address:
Phones:
FAX:
Imported goods:
Pursuant to declaration no. ……..
dated ….. at …….
To present at customs office for
consultation of declared taxable value (explanation and furnishing of relevant
documents to prove the truthfulness and accuracy of declared value).
Location of consultation …..
Time of Consultation …..
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It is hereby request the your
company to assign its duly representative to join the above consultation
timely.
Respectfully!
Recipients:
- As stated.
- Filling …
Head
of Sub Department
(signature and sealing)
FORM 2
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General Customs Department
Customs Department of ……
Sub
Customs Department of ……..
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No.
: ….
……,
[date]
Re:
Re-determination of Taxable Value for imported goods
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Pursuant to Decree No.
155/2005/ND-CP of the Government dated December 15, 2005 on determination of
taxable value for import, export goods;
Pursuant to Circular No.
113/2005/TT-BTC of the Ministry of Finance dated December 15, 2005 providing
guidelines for implementation of import, export tax;
Pursuant to the results of
verification and determination of taxable value at declaration no.
.................;
Basing upon consultation results
as set forth in minutes ............. (for cases of consultation)
Sub customs department of
............................................................. hereby notices:
1/ Not to accept declared value
of import shipment as stated in declaration no. ............. dated
............................ at ................. as follows:
Ord.
No.
Code
Goods
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Declared
Value
Basis
of Rejection
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Ord.
No.
Code
Goods
Unit
Declared
Value
Re-determined
Value
Basis
and Calculation Method
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3/ Basing upon taxable value determined
at point 2:
Total additional taxable amount
that your company is required to pay is:……(to be stated in particular for each
type of goods and in total amount )
Deadline for additional
payment:……..
Sub Customs Department of .........................
hereby advise your company for your information and timely implementation.
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Recipients:
- As stated
- Customs Department…(for
report)
- Filing to import dossier
- Filing …
Head
of Sub Department
(signature and sealing)
FORM 3:
TRANSFER NOTE TO EX-CLEARANCE INSPECTION TEAM
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SOCIALIST REPUBLIC OF
VIETNAM
Sub- Department of
...............
Independence –
Freedom - Happiness
TRANSFER NOTE
Case brief:
Name of Importer:
Declaration No.:
Imported Goods:
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Consultation results (minutes
attached, if any):
Available information relating
to import dossier:
It is requested to clarify the
aforementioned issues.
Should the inspection reveal any
differences between declared value and imported value, please kindly inform the
same to evaluation for update of pricing data system.
Recipients:
- As stated.
- Evaluation unit.
- Filing …
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