Answer many questions about the dutiable value for European enterprises

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From the beginning of 2018, HCMC Customs has taken the initiative in talking with US enterprises. Photo: Mr. Dinh Ngoc Thang, Deputy Director of HCMC Customs Department, is discussing with Mr. Mark Gillin, Vice President of American Chamber of Commerce (AMCHAM), on 24thJanuary 2018. Photo: T.H.

When are charges added to the transaction value?

According to the HCMC Customs Department, many European enterprises are still confused in the transaction value declaration. The Department has guided and answered many questions from enterprises. Regarding charges to be added to the taxable value, enterprises said that according to the provisions in Circular 39/2015 / TT-BTC dated 25th March 2015 of the Ministry of Finance, charges arising at Vietnam’s border gates before clearance relating to Local charges (local charges are paid at port of loading) which must be paid to shipping agents, the T.H.C (Terminal Handling Charge) is not a charge to be added to the dutiable value, but the C.I.C (Container Imbalance Charge), which must be paid to the shipping agent must be added to the dutiable value.

Enterprises asked the HCM City Customs Department to explain the addition. These two charges arise at the same time and are paid together by enterprises. Whether or not enterprises continue to add the C.I.C to the dutiable value, because some shipping lines collect this charge but some do not.

Nguyen Quoc Toan, Deputy Director of Department of Import-Export Duties Division under HCMC Customs Department answered that the above charges are only added to the transaction value when the buyer (importer) carries out the direct payment. If the importer buys the goods on condition CIF and does not pay any other charges such as C.I.C or T.H.C, the Customs shall not add these charges to the transaction value.

Enterprises asked some questions: whether the risk management list of imports is for reference or applied to the dutiable value calculation? During the consultation process, the enterprises have proved the actual value purchased from suppliers, but Customs officers still have not accepted, is the reason that the actual purchasing value is much different from the value on the list? The Customs database is internal information which is not publicized, which leads to unclear and transparent valuation for enterprises. Could the Customs consider the transparency of this database?

Responding to the last question, HCMC Customs Department said that according to Circular No. 12/2002 / TT-BCA dated 13th September 2002 by the Ministry of Public Security and Circular 161/2014 / TT-BTC dated 13thSeptember 2014 by the Ministry of Finance regulating the protection of State secrets of the Finance sector, HCMC Customs Department is forbidden to provide information in the form of "confidential" documents.

The determination of the dutiable value of HCMC Customs Department always complies with the law and GATT Valuation Agreement. That is through consultation and post-customs clearance between Customs and enterprises. The Customs determines the dutiable value according to the actual value which has been already paid or will be paid under normal trading conditions and unrestricted competitiveness. Enterprises can reflect HCMC Customs Department on cases that are not transparent and clear in the valuation, so that the Customs authority shall provide specific guidance.

Enterprises said that the importer can buy online with the discount price and if the discount value can be considered as the Customs declared value? According to Circular No. 39/2015 / TT-BTC, transaction value is the actual payment, so the discount value which is the actual payment can be considered as the declared value?

In response to this question, HCMC Customs Department noted that online purchase and purchase of promotional goods is an international practice and is a normal international trading activity. Customs always respects the declaration of the enterprise. However, the declared value is acceptable or unacceptable to the Customs depending on whether or not the shipment is eligible or satisfies the regulations.

Database of taxable valuation

Regarding the database of taxable valuation, HCMC Customs Department answered that according to Circular 39/2015 / TT-BTC, the dutiable valuation database is collected from a variety of information sources such as: the declared value of business community carrying out Customs procedures in the whole country, that has been accepted by the Customs for duty calculation according to the transaction value; the offer price of manufacturers, exporters, distributors in the exporting country, in foreign exporting countries or in Vietnam; Information provided by the Vietnamese Chambers of Commerce or Consulate in the countries or the Chambers of Commerce of the countries or Consulates of countries in Vietnam; Information provided by the Anti-Smuggling and Investigation Department under General Department of Customs; and Information provided by Ministry of Industry and Trade or relevant ministries.

HCMC Customs Department confirmed that the duty calculation database is only used to determine the base for first suspicion when enterprises import. The General Department of Customs does not allow to use this database to adjust the dutiable price. If the goods are not eligible for duty calculation according to the transaction value, the Customs will apply sequentially the methods and stop immediately at the method which satisfies the valuation. Using internet prices, deducting 20% to adjust the dutiable price is not in accordance with Circular 39/2015 / TT-BTC because after processing, the internet prices are only database and only used for reference.

Answering the questions from enterprises on procedures for the development of Customs value for non-commercial goods, HCMC Customs Department said that Article 17 of Circular 39/2015 / TT-BTC stipulates that goods as gifts (non-commercial goods) will be calculated according to the declared price without Customs suspicion.

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In the cases where the Customs suspects declared prices are untruthful or lower than prices of similar goods that have been updated to the Customs system, the Customs shall adjust the dutiable price of the non-commercial goods (gifts) at dutiable prices available in the data system but not the database. Time to valuation of non-commercial goods complies with Circular No. 38/2015 / TT-BTC by the Ministry of Finance dated 25th March 2015 on goods clearance, but is not more than 8 working hours.