Where does an export processing enterprise exercising the right to export register a customs declaration and how to carry out customs procedures?

What rights and obligations do businesses as customs declarants have?

According to Clause 1, Article 2 of Circular 38/2015/TT-BTC regulating the rights and obligations of businesses: customs declarant as follows:

In addition to the rights and obligations prescribed in Article 18 of the Customs Law; Article 6, Article 7, Article 30 of Law on Tax Administration 78/2006/QH11 are amended and supplemented in Clause 3, Clause 4, Article 1 of the Law amending and supplementing a number of articles of Law on Tax Administration 21/2012/QH13; Article 5 of Decree 83/2013/ND-CP, customs declarants are responsible for customs declaration, additional declaration and use of goods according to the declared purpose as follows:

– Self-declar fully, accurately, and truthfully the criteria on the customs declaration and documents to be submitted and presented according to the provisions of law, factors as a basis, related to tax calculation or tax exemption, tax exemption consideration, tax reduction consideration, tax refund consideration, not collecting export tax, import tax, special consumption tax, value added tax, environmental protection tax (except for declaring tax rate, tax amount payable for goods that are not subject to tax);

– Self-determine and take responsibility before the law for declaring the tax amount payable; The tax amount is exempted from tax, considered for tax exemption, considered for tax reduction, tax refund or no collection of export tax, import tax, special consumption tax, value added tax, environmental protection tax in accordance with the provisions of law; Declare the tax amount payable on the payment slip according to regulations of the Ministry of Finance on tax collection and payment and other revenues for exported and imported goods;

– For exported and imported goods declared as not subject to export tax, import tax, special consumption tax, value added tax, environmental protection tax or exempted from tax, considered for exemption from export tax, import tax or applied preferential tax rates, special incentives, tax rates according to tariff quotas and have been processed according to declaration but then there is a change in non-taxable subjects or purpose of tax exemption, consider tax exemption, apply preferential tax rates, special incentives. In particular, tax rates according to tariff quotas; For goods that are raw materials and supplies imported to produce exported goods and temporarily imported – re-exported goods for domestic consumption, taxpayers must make customs declaration for goods that change their use purpose or are transferred for domestic consumption according to the provisions of Article 21 of this Circular;

– Appoint a representative when carrying out customs procedures and other administrative procedures with customs authorities.

How must the enterprise’s goods when exporting or importing be subject to customs inspection?

The enterprise’s goods when exporting and importing must be subject to customs inspection according to the provisions of Article 10 of Circular 38/2015/TT-BTC as follows: after:

– General principles:

+ Determining goods subject to physical inspection is based on risk management through the System’s channeling; The Director of the Customs Branch carries out inspection decisions according to the System’s channeling notice and randomly checks to assess the compliance of customs declarants according to the regulations and instructions of the Director General of the General Department of Customs; On that basis, carry out the actual inspection of goods according to the provisions of Article 29 of this Circular.

+ Inspection of goods under specialized management is carried out in accordance with specialized laws; Carry out physical inspection of the entire shipment in case of signs of violation of customs laws.

– Customs inspection of exported, imported and transited goods of priority enterprises is carried out according to a separate Circular of the Ministry of Finance.

– Customs inspection of exported, imported, and transited goods of compliant enterprises is carried out as follows:

+ Directly check documents in the following cases:

++ There are signs of violation of customs laws;

++ Select no more than 5% of the total customs declaration of exported and imported goods on the basis of analysis and risk assessment;

++ Goods according to specialized laws must have their records directly inspected.

+ Physical inspection of goods in the following cases:

++ There are signs of violation of customs laws;

++ Select no more than 1% of the total customs declaration of exported and imported goods on the basis of analysis and risk assessment;

++ According to specialized laws, physical inspection of goods is required.

+ Customs authorities carry out compliance inspection and assessment for enterprises complying with Clause 2, Article 11 of this Circular.

– Customs inspection of non-compliant exported, imported, and transited goods of enterprises is carried out as follows:

+ Directly check documents in the following cases:

++ There are signs of violation of customs laws;

++ Goods according to specialized laws must have their records directly inspected;

++ Choose to directly inspect documents of no more than 50% of the total customs declaration of exported and imported goods based on the results of analysis and risk assessment.

+ Physical inspection of goods in the following cases:

++ Regulations in Points b.1 and b.3, Clause 3 of this Article;

++ Choose to physically inspect at least 20% of the total customs declaration of exported and imported goods based on the results of analysis and risk assessment.

Where and how do enterprises importing goods from the inland carry out customs procedures?

Pursuant to Article 19 of Circular 38/2015/TT-BTC stipulating the location for registering customs declarations of enterprises as follows:

– Exported goods are registered with customs declarations at the Customs Sub-Department where the enterprise is headquartered or where the production facility is located or the Customs Sub-Department where the exported goods are gathered or the Customs Sub-Department at the export border gate;

– Imported goods must be declared at the headquarters of the Border Gate Customs Sub-Department where the goods storage location is managed, the destination port stated on the bill of lading, transport contract or the Customs Sub-Department outside the border gate where the enterprise is headquartered or where the goods are shipped;

– For exported and imported goods according to specific types, the location for registering declarations shall comply with each corresponding type specified in Decree 08/2015/ND-CP and instructions in this Circular.

And in Article 77 of Circular 38/2015/TT-BTC and Clause 53, Article 1 of Circular 39/2018/TT-BTC regulate customs procedures for exported goods according to export rights and import rights of export processing enterprises as follows:

– Export processing enterprises (EPDs) that are allowed to purchase and sell goods and activities directly related to the purchase and sale of goods in Vietnam according to the provisions of Decree 23/2007/ND-CP must perform separate accounting, not accounting together with production activities; Must arrange a separate area to store imported and exported goods according to import rights, export rights, and distribution rights.

– EPEs are responsible for fulfilling tax obligations and other financial obligations for the implementation of goods purchase and sale activities and activities directly related to goods purchase and sale according to the provisions of law. Investment incentives, tax incentives and other financial incentives applicable to the production for export of EPEs do not apply to the purchase and sale of goods and activities directly related to the purchase and sale of goods of EPEs.

– Customs procedures comply with the provisions of Chapter II of this Circular. In addition, the Ministry of Finance further guides the implementation of export and import rights of EPEs as follows:

Customs procedures for goods of EPEs exercising export rights:

+ Goods purchased from the domestic market for export, when purchased from domestic enterprises do not have to go through customs procedures, when exported, the procedures are as for goods exported for business;+ Goods purchased from other EPEs for export, when purchasing from EPEs, carry out the same procedures as domestic enterprises purchasing goods from EPEs, when exporting, follow the procedures as for goods exported for business; Carry out tax declaration and calculation (if any).

– Use invoices when buying and selling goods according to the export and import rights of the EPE

+ EPEs carry out tax registration with the domestic tax agency to declare and pay VAT for export and import activities according to export and import rights;

+ When an export processing company purchases goods from a domestic enterprise, the domestic enterprise actually issues a VAT invoice to the export processing company, clearly stating the VAT rate according to the provisions of law;

+ When exporting, EPEs issue invoices like other domestic enterprises with goods exported abroad and are entitled to a 0% VAT rate, and receive input VAT refunds if they meet the prescribed conditions for tax refunds.

Thus, if an export processing enterprise purchases goods from a domestic enterprise in Yen Bai to export goods under export rights, the export processing enterprise can register the customs declaration at the Yen Bai Customs Branch in case the Yen Bai Customs Branch is the border gate Customs Branch where the goods are stored, the destination port recorded on the bill of lading, the shipping contract, or the Customs Branch outside the border gate where the enterprise is headquartered or where the goods are shipped. Export processing enterprises exercising the right to export shall carry out customs procedures as prescribed in Article 77 of Circular 38/2015/TT-BTC and Clause 53, Article 1 of Circular 39/2018/TT-BTC.