I am from the Republic of Korea (RoK) and currently residing in Hanoi. I have ordered lingzhi fungus and red ginseng with a total value of USD 100 from RoK to Vietnam, and the goods will be shipped via express mail service. Upon receipt at the Vietnamese customs, what procedures must I carry out and will my goods be taxed? What are the taxes, if any, and tax rates?
Under Vietnamese law, goods valued at VND 1 million or under will be exempted from import duty and value-added tax. Meanwhile, imports shipped via express mail services with a value of over VND 1 million will be taxed in accordance with law.
In your case, you have to pay import duty and value-added tax as your import goods' value is over VND 1 million.
You will have to declare and pay the following taxes at the border-gate customs office:
1. Import duty: 15 percent of the import value; and,
2. Value-added tax:
- For processed lingzhi, you will have to pay a tax equal to 10 percent of the price that is exclusive of value-added tax but inclusive of import duty;
- For unprocessed lingzhi, you will have to pay a tax equal to 5 percent of the price that is exclusive of value-added tax but inclusive of import duty.
Specific tax amounts:
1. Import duty: USD 200 * 15 percent = USD 30.
2. Value-added tax:
- For processed lingzhi: (USD 200 + USD 30) * 10 percent = USD 23.
- For unprocessed lingzhi: (USD 200 + USD 30) * 5 percent = USD 11.5.
Regarding import procedures:
Procedures for imports and exports delivered via the international airway express mail services must be carried out at border-gate customs offices or customs branches outside border gates.
However, enterprises may carry out the customs procedures for exports and imports (except for mails, diplomatic bags and consular bags) on behalf of goods owners, and have the responsibility to implement policies on management of exports and imports, policies on duties, charges and other revenues, and exercise the rights and perform the obligations of goods owners in accordance with law.
When you use the international airway express mail services, the service providers will have to carry out the customs procedures for your goods and you will only have to make goods receipt dossier with them.- (VLLF)