Deductible value method 2024

Deductible value method 2024

2.4.1. Where to apply: If the customs value cannot be determined according to the methods stated in sections 2.1, 2.2 and 2.3 above, the customs value of imported goods is determined according to the deductible value method, based on Based on the unit selling price of imported goods, identical imported goods or similar imported goods on the domestic market of Vietnam as prescribed in subsection 2.4.2 below and minus (-) reasonable costs. management, profits earned after selling imported goods.

Do not apply this method if the goods selected to determine the unit selling price fall into one of the following cases:

a) Not yet sold on the domestic market of Vietnam or the sale of goods has not been accounted for on documents and accounting books according to the provisions of Vietnamese accounting law;

b) In connection with assistance provided by any person under the regulations on assistance.

2.4.2. Selling price of goods import in the Vietnamese market is determined according to the following principles:

a) The selling price of imported goods is the actual selling price of those goods in the Vietnamese market. In case there is no actual selling price of the imported goods that need to be determined by customs value, the actual selling price of identical imported goods or similar imported goods in the same condition as when imported and sold on the market shall be taken. Vietnamese market to determine the actual selling price.

Imported goods that are in the same condition as when imported are goods that after import have not been affected by any impact that changes the shape, characteristics, properties, or uses of the goods or increases or decreases their value. of imported goods.

b) Importer and domestic buyers do not have a special relationship according to regulations;

c) The selling price is calculated based on the largest sold quantity and is sufficient to form the unit price. The selling price calculated on the largest sold quantity is the price at which the goods have been sold in the largest total quantity in the first commercial sales transactions immediately after import;

d) Goods are sold (wholesale or retail) on the earliest date immediately after import, but not later than 90 days (calendar days) after the date of import of that batch of goods. The earliest date immediately after import is the date when the goods are sold in a quantity sufficient to form a unit price (at least equal to 10% of the quantity of goods of that item in the imported goods lot).

2.4.3. Conditions for selecting unit selling price in the Vietnamese market:

a) The selling price on the Vietnamese market must be the selling price of imported goods being determined by customs value, identical imported goods or similar imported goods, sold in the same state as when imported. password;

b) The selected selling price is the unit price corresponding to the quantity of goods sold with the largest accumulated quantity sufficient to form the unit price; the goods are sold immediately after importation, but not later than 90 days after the date of importation of the goods being valued by customs; Domestic buyers and sellers do not have a special relationship.

For example: Shipment A includes many items, of which item B must have its customs value determined by the deduction method. Lot A was imported on January 1, 2014. A shipment containing items identical to previously imported item B and sold to many domestic buyers at different prices and times as follows:

In the example above, the unit selling price selected for deduction is 800 VND/unit, corresponding to the largest sold quantity (450 units), at a level sufficient to form the unit price. This unit price satisfies the conditions for selecting the selling unit price, which are:

– Has the largest cumulative quantity (450 units) among imported goods sold immediately after import.

– Sales time is within 90 days from the date of import.

2.4.4. Deduction principles:

Determination of deductions must be based on accounting data, legal documents, available and recorded and reflected according to Vietnamese accounting regulations and standards. Deductible amounts must be amounts allowed to be accounted for as reasonable expenses of the enterprise according to the Vietnamese Accounting Law.

2.4.5. Amounts deducted from the sales price:

Amounts deducted from the unit sales price are reasonable costs and profits earned after selling goods in the Vietnamese market, including:

a) Transportation costs, insurance fees and costs for other activities related to the transportation of goods after import, specifically:

a.1) Transportation costs, insurance fees and other costs related to the transportation of goods arising from the first border gate of import to the importer's warehouse or delivery location within Vietnam ;

a.2) Transportation costs, insurance fees and other costs related to transportation from the importer's warehouse in domestic Vietnam to the sales location, if the importer must bear these expenses .

b) Taxes, fees and charges payable in Vietnam when importing and selling imported goods on the Vietnamese domestic market;

c) Commissions or general expenses and profits related to activities of selling imported goods in Vietnam:

c.1) In case the importer is a sales agent for a foreign trader, the commission will be deducted. If the commission already includes the expenses mentioned in Points a and b of this Clause, these expenses cannot be further deducted;

c.2) In case of import by the method of outright purchase and sale, deduct general costs and profits: General costs and profits must be considered as a whole when determining the deductible value. The determination and allocation of general costs and profits for imported shipments must be done in accordance with Vietnamese accounting regulations and standards.

General costs include direct costs and indirect costs serving the import and sale of goods on the domestic market, such as: Costs of marketing goods, costs of storing and preserving goods. pre-sale goods, costs of management activities serving import and sales.

The basis for determining deductions is data recorded and reflected on documents and accounting books of the importer, in accordance with Vietnamese accounting regulations and standards. This data must correspond to data obtained from trading activities of imported goods of the same class or type in Vietnam.

2.4.6. Imported goods that undergo further processing and processing in the country have their customs value determined according to the principles specified in subsection 2.4.1 and minus the processing and processing costs that add value. of goods. The customs valuation method specified in this Article does not apply to the following cases:

a) Imported goods after processing are no longer in the same state as when imported and the added value due to the processing cannot be accurately determined;

b) Imported goods, after processing, still retain the same characteristics, properties, and uses as when imported but are only a part of the goods sold on the Vietnamese market.

2.4.7. Documents to determine customs value according to this method include:

a) Sales invoice or value-added invoice according to regulations;

b) Sales agency contract if the importer is the exporter's sales agent. This contract must specifically stipulate the commission fee that the agent is entitled to and the types of expenses that the agent must pay;

c) Explanation of sales revenue and documents and accounting books reflecting the expenses mentioned in subsection 2.4.5 above;

d) Customs declaration and customs value declaration of the shipment selected for deduction;

d) Other necessary documents for inspection and customs valuation.