According to Resolution No. 24/NQ-CP dated February 26, 2021 of the Government, the Ministry of Finance has studied and developed a Decree regulating on the management of exported and imported goods transacted through e-commerce (hereinafter referred to as “Decree”).
This article includes some of the latest and notable regulations promulgated by the Ministry of Finance in this Decree.
Places of customs formalities
For exported goods, the customs declaration can be registered at: the Sub-department of Customs where the customs declarants headquarter is located or the place has a production facilities; or the Sub-department of Customs where exported goods are gathered; or the Sub-department of Customs at the border checkpoint of exportation.
For imported goods, the customs declarations are registered at: the Sub-Department of Customs at the border checkpoint of importation or the Sub-department of Customs managing the gathering place, centralized inspection for postal and express goods in case of imported goods transacted through e-commerce sent via postal or express delivery services.
In addition, the Sub-department of Customs can also manage the bonded warehouse in case of goods transacted through e-commerce imported from the bonded warehouse.
E-customs data processing system for imported and exported goods transacted through e-commerce
Currently, customs procedures for imported and exported goods are carried out on the VNACSS system. However, for imported and exported goods transacted through e-commerce, which mainly are small goods, time and date of buying mostly at discount time, the goods are directly delivered to the buyer, the implementation of customs procedures on the VNACSS system has many shortcomings. Therefore, the Decree specifically stipulates the e-customs data processing system for imported and exported goods transacted through e-commerce and this system will connect with the smart customs system in order to receive, integrate, share information about orders from sellers or e-commerce trading floors, e-commerce websites units authorized by the sellers, integrating with national databases on population, enterprises, national one-stop-shop system.
Specifically, this system implements customs procedures for exported and imported goods transacted through e-commerce; receives; responds; stores order information and related information and identifies the digital signature of the sender. In addition, this system also connects, exchanges and updates information on e-commerce activities with the systems of commercial trading floors, credit institutions, shipping companies, and customs brokers,… to carry out customs procedures.
Regulations on tax administration
The Ministry of Finance pointed out that the regulations on tax administration aim to prevent organizations and individuals from exploiting of the tax exemption policy to divide and separate goods for tax evasion purposes when trading goods through e-commerce.
Accordingly, the Decree specifically stipulates tax administration as follows: Each purchaser is only entitled to tax exemption for imported goods with no more than one order/day and no more than four orders/month specified at the following 2 points:
Firstly, imported goods have a customs value less than 1,000,000 VND per order;
Secondly, imported goods have a customs value more than 1,000,000 VND per order but the total amount of payable import tax is less than 100,000 VND.
In case imported goods transacted through e-commerce have a customs value more than VND 1,000,000 per order and the total payable import tax is more than VND 100,000, they must pay import tax for the total value of imported goods. The buyers must pay: Import/ export tax, additional taxes (such as anti-dumping tax, anti-subsidy tax, safeguarding tax), excise tax, environmental protection tax, added value tax.
Risk management for import and export through e-commerce
Customs authorities apply risk management to decide on customs inspection and supervision and other professional measures in the management of import and export activities of goods transacted through e-commerce.
The assessment of the compliance with the customs law and the classification of risks in import and export activities of the customs declarant shall comply with the provisions of Articles 14 and 15 of the Decree No. 08/2015/NĐ-CP dated 21 February, 2015 of the Government.
The Decree is expected to take effect from 2023, affecting e-commerce platforms, logistics enterprises, payment intermediaries, customs brokers, organizations and businesses related to e-commerce in Vietnam