b) The source of information that relates to transactional values of identical or similar goods which are either determined by the customs authority or additionally declared by enterprises upon the request of the customs authority, and is not classified as the source of information showing suspicious signs as prescribed by Point b Clause 2 Article 55 of the Decision No. 1966/QD-TCHQ.

With respect to the source of information referred to in paragraph a and b, where there is none of the identical or similar goods, definition of the identical or similar goods must be broadened in accordance with Point b Clause 2 Article 55 of the Decision No. 1966/QD-TCHQ.  

c) The source of information that is derived from export prices of goods identical or similar to imported goods available online for sale at the manufacturers’ webpages or those linked to these webpages, and from transactional prices in the global market (of the same origin).    With respect to this source of information, information about price levels shall be collected according to the following descending priority order:

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- In the absence of the dealer-invoice price, if there is only the retail price available, the retail price shall be converted into the wholesale price.

e) The source of information derived from foreign organizations, customs authorities of other countries, Ministries, sectoral regulatory authorities, associations or individuals;

g) Other information sources (where available).

1.2. Conversion and information verification method:

a) With respect to the sources of information referred to in paragraph a and b Point 1.1, it is necessary to check purchase and sale conditions in terms of quantity, commercial grade, mode of transportation, etc. If it is determined that there is any difference with the shipments currently under customs inspection and valuation process, conversion must proceed.   

b) With respect to the source of information referred to in paragraph c Point 1.1, upon conversion into the import price, tax amounts arising within the territory of an exporting country are deductible only when each of the tax amounts arising within the territory of an exporting country is clearly specified in the export prices of identical or similar goods.   Where taxes imposed by an exporting country are not specified in the prices offered within the territory of an exporting country, these taxes shall not be deductible as prescribed at b.2.6 Clause 1 Article 5 of the Decision No. 2344/QD-TCHQ.

c) With respect to the source of information referred to in paragraph d Point 1.1, upon conversion into the import prices, it is necessary to verify authenticity of pieces of information about selling prices of imported goods in local markets available on webpages through independent surveys on prices quoted in local markets or comparison with prices quoted from 02 different websites.

d) With respect to the sources of information referred to in paragraph e and g Point 1.1, it is necessary to verify authenticity and origin of collected information sources and carry out conversion into import prices.

2. Collected information sources and conversion method with respect to imported motor vehicles:

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a) The source of information that is derived from export prices of goods identical or similar to imported goods available online for sale at the manufacturers’ webpages or those linked to these webpages, and from transactional prices in the global market (of the same origin).    Example: Information about Audi cars shall be available at the address http://audi.de. If there is none of the manufacturer’s official website, information will be collected from other websites such as http://msn.com, http://truecar.com, http://cars.com, etc.   With respect to this source of information, information about price levels shall be collected according to the following descending priority order:

- Dealer-invoice price is the selling price printed on the seller’s invoice.

- MSRP price defined as the manufacturer’s suggested retail price which is converted into the wholesale price.

- Ex works price.

b) The source of information that is derived from the local market prices of import goods sold on websites of manufacturers offering prices of these goods for sale (of the same origin). Example: Information about Toyota cars shall be available at the address www.toyota.com.vn. If there is none of the manufacturer’s official website, information will be collected from other websites such ashttp://banxehoi.com, http://xehoigiatot.vn, http://giaxeoto.vn, http://bonbanh.com, etc. 

With respect to the source of information that is derived from local market prices, it is necessary to verify authenticity of pieces of information about prices of imported goods sold in local markets available on webpages through independent surveys on prices quoted in local markets or comparison with prices quoted from 02 different websites. The reality indicates that application of different deduction rates will have a significant effect on the dutiable value. Therefore, upon being converted from the selling prices in the local market into the import prices, general costs and income shall be deductible as follows:

- As for a motor vehicle sold at the price of VND 1 billion or less, the deduction rate is less than 15% of the selling price.

- As for a motor vehicle sold at the price of more than VND 1 billion to VND 3 billion, the deduction rate is less than 10% of the selling price.

- As for a motor vehicle sold at the price of more than VND 3 billion to VND 5 billion, the deduction rate is less than 5% of the selling price.

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Where enterprises prove that their general costs and income have been entered into expenses and verified by local tax authorities, they shall be deductible at the actual percentage.

IV. Update of results on the GTT02 system:

1. Update of the customs value inspection results: Customs officers shall give their update by selecting one of the following contents:

a) Select “không nghi vấn” (“no suspicious sign detected”) if there is none of signs of suspiciously declared prices found at the function 1.04; 

b) Select “có nghi vấn - chuyển Cục tham vấn”/ “có nghi vấn - chuyển Chi cục tham vấn” (“suspicious sign detected – forwarded to the General Department/ Department of Customs for its consultation”) in the event that customs valuation documentation shows any sign of suspiciously declared price and requires customs consultation carried out at the function 1.04; 

c) Select “có nghi vấn - chuyển kiểm tra STQ” (“suspicious sign detected – forwarded to the customs post-clearance inspection”) in the event that customs valuation documentation shows any sign of suspiciously declared price and requires customs post-clearance inspection carried out at the function 1.04; 

d) Where customs valuation is subject to provisions laid down in Clause 3 Article 3 and Clause 5 Article 17 of the Circular 39/2015/TT-BTC of the Ministry of Finance, the method for customs valuation and determined price must be updated at the function 1.04.

In case customs value inspection is completed with multiple customs declarations, update of inspection results shall be carried out at the function 1.12.

2. Update of the customs consultation results:

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a) Select “chấp nhận trị giá khai báo” (“accept the declared customs value”) when accepting the customs value which has been declared;

b) Select “Bác bỏ trị giá khai báo, Doanh nghiệp dồng ý” (“Reject the declared customs value and the declaring enterprise agrees”) in the event of the customs declarant’s agreement with the bases for rejection of the declared customs value and additionally declared customs value, and clearly specify the customs consultation results (including rejection bases, proposed methods and prices included in the customs consultation meeting minutes).   When the declaring enterprise makes additional declaration, customs officers must check declaration contents and prices with the customs consultation meeting minutes to update contents of the additional declaration sheet as prescribed.

* Note: With regard to tax imposition carried out after completion of a customs consultation, while the GTT02 system has not been upgraded yet, the following instructions must be obeyed:

- Status of suspicion (suspicious sign detected – forwarded to the next stage) shall be updated at the function 1.04. In the note section, “thực hiện ấn dịnh thuế trong thông quan” (“in-clearance tax imposition”) must be clearly stated.

- At the function 1.07 (inspection conducted at the customs authority’s office): Update the results of determination of customs value (specify the number and date of the decision on tax imposition).   In the note section, “thực hiện ấn dịnh thuế trong thông quan” (“in-clearance tax imposition”) must be clearly stated.

3. Update of the customs post-clearance inspection results: (Including inspections conducted at the customs authority’s office and the enterprise’s office)

At the function 1.07 “Cập nhật kết quả kiểm tra sau thông quan” (“Update of the customs post-clearance inspection results”), customs officers shall specify the date of inspection, the number of the decision on customs inspection, the entity in charge of customs post-clearance inspection and inspection method. At the part of customs inspection results, the following contents must be selected:

a) Select “Chấp nhận trị giá khai báo” (“Accept the declared customs value”) when accepting the customs value which has been declared;

b) Select “Xác dịnh giá” (“Pricing”), update methods and price levels as the basis for pricing purposes in case of the customs authority’s customs valuation.

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4. Update of the customs audit results:

At the function 1.08 “Cập nhật kết quả thanh tra, kiểm tra” (“Update of the customs audit results”), customs officers are required to specify the date and number of the customs audit decision. At the part of customs audit results, the following contents must be selected:

a) Select “chấp nhận trị giá khai báo” (“accept the declared customs value”) when accepting the customs value which has been declared;

b) Select “Xác dịnh giá” (“Pricing”), update methods and price levels as the basis for pricing purposes in case of the customs authority’s customs valuation.

c) At the section “nội dung khác” (“Other contents”), the following contents shall be updated, including customs audit conclusion in which bases for rejection of the declared customs values and customs audit conclusion in relation to customs values and the number of the decision on tax imposition, etc. must be clearly stated;

5. Update of the complaint settlement results:

At the function 1.09 “Cập nhật kết quả giải quyết khiếu nại” (“Update of the complaint settlement results”), customs officers must specify the date and number of the decision on settlement of complaints on customs values and the frequency of complaint settlement. At the part of complaint settlement results, the following contents must be selected:

a) Select “chấp nhận trị giá khai báo” (“accept the declared customs value”) when accepting the customs value which has been declared;

b) Select “Xác dịnh giá” (“Pricing”), update methods and price levels as the basis for pricing purposes in case of the customs authority’s customs valuation.

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* Note: The updating time referred to paragraphs 1, 2, 3, 4, 5 mentioned above shall conform to instructions given in the Decision No. 2344/QD-TCHQ.

V. Provision of information used as the basis for requesting formulation, revision, modification or improvement of the Schedule:

1. The Directors of the Customs Departments of cities and/or provinces and the Director of the Customs Post-clearance Inspection Department shall make a request for formulation, revision, modification or improvement of the Schedule as follows:

a) In the course of customs value inspection, customs consultation, customs post-clearance inspection, customs valuation and settlement of complaints from the customs-declaring enterprise, if it is determined that reference prices included in the Schedule is unreasonable (at least 10% higher or less than reference prices specified in the Schedule within the variation range) or reference prices have not been set in the Schedule but all criteria for formulation of the Schedule, referred to in Article 24 of the Circular No. 39/2015/TT-BTC, have been satisfied, the Directors of the Customs Departments of cities and/or provinces and the Director of the Customs Post-clearance Inspection must send the request for any revision or modification of the reference prices on a timely manner  to the General Department of Vietnam Customs (Customs Duty Department) within a permitted period of 05 working days from the date on which these issues arise by adopting the Form No.1 enclosed herewith (applicable to the request for modification or improvement of the Schedule), the Form No.2 enclosed herewith (applicable to the request for revision) and take responsibility for authenticity of collected information sources and recommended price levels.

b) The request for revision, modification or improvement of the reference prices set in the Schedule must meet the following requirements:

- Fill out the Form No.1 (in case of modification or improvement) or the Form No.2 (in case of revision) with commodity names and other required information in full, in detail and accurately.   In the section of commodity name, product codes, brandnames of ingredients, types, composition, uses and functions, etc. must be clearly specified to meet requirements concerning determination of factors influencing or relating to customs valuation; unit of measurement used must clearly define quantities of products in the event that it is unlikely to clearly define such quantity (for instance, with respect to boxes/cartons or bottles, etc. how many packs/bags per a box/carton, how many kilograms per a pack/bag, or how many milliliters per a bottle, etc. must be clearly defined).  In case of the request for modification or revision of the reference prices of commodities referred to in the Appendix 3 hereof, the commodity name must include details under the instructions of this Appendix.

- Information about the price levels which are revised or modified upon the said request must be collected from the sources of information which are of high reliability and are definitely established; Each of the revised or modified prices must be based on the sources of intra or extra-customs sectoral information (at least two sources of information accepted, exclusive of the source of information which has already been determined in advance), the sources of information shall be collected according to the following descending priority order: 

+ The source of information declared by the enterprise;

+ The source of information derived from the customs authority’s determination of customs value or the enterprise's additional declaration upon the request of the customs authority;

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+ The source of information derived from selling prices in the local market;

+ The source of information derived from foreign organizations, customs authorities of other countries, Ministries, sectoral regulatory authorities, associations or individuals;

+ Other information sources (where available).

After being collected from sources of information derived from exporting countries or selling prices in the local market, prices shall be converted into exporting prices under the instructions given in the section III hereof. 

- Enclose evidencing documents and materials related to price levels of which revision or modification is recommended (with a fan stamp affixed by the Customs Department) and give an explanation for reference prices in the Schedule which are unreasonable and for prices of which modification or revision is recommended.

c) Send the request for such revision, modification or improvement along with evidencing documents or materials in writing to the General Department of Vietnam Customs (Customs Duty Department), and simultaneously send it to the email address rrtg@customs.gov.vn in order to give timely feedbacks.

d) On a monthly basis (at the last date of a month), prepare a synthesis report on all of the commodities of which modification or revision is requested within a month by using the Form No. 02/DMBS/2015 (in case of modification or improvement), and the Form No. 03/DMSD/2015 (in case of revision) in the Appendix II of the Circular No. 39/2015/TT-BTC, for submission to the General Department of Vietnam Customs (Customs Duty Department).

e) Create an email address and assign an entity to act as a focal point to carry out monitoring activities to give any additional information or explanation, where necessary, upon the request of the General Department of Vietnam Customs within the duration of 03 working days upon receipt of the request for supplementation of information or materials (where applicable).

a) Have authority to use prices to be modified as requested in the Schedule to identify any suspicious sign, carry out customs consultation, customs post-clearance inspection, customs valuation and complaint settlement within the period during which the General Department of Vietnam Customs has yet to issue its decision to modify reference prices. Prices of which modification is requested in the Schedule shall be applied when the General Department of Vietnam Customs releases revised prices in order to ensure consistency between them.

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a) Based on their specific functions and duties, when obtaining information about customs inspection, valuation, information about investigation, information about settlement of complaints made by customs declaring enterprises or relevant entities, they are obliged to send a synthesis report to the Customs Duty Department within the duration of 05 business days from the date of collection or processing of information, and give specific recommendations.  

b) Ensure that provided information must be definite, accurate and verified and include relevant evidencing documents and materials by completing and sending the Form No. 3 (hereto appended) to the Customs Duty Department by means of a written document, and forwarding that document to the email address rrtg@customs.gov.vn for any timely feedback.

3. Customs Duty Department

a) Receive and evaluate the reports prepared by using the Form No. 1, Form No.2 and Form No.3 which are sent by these authorities and process these reports as follows:

- Resend these reports to the senders in case any request for revision or modification made by using the Form No.1, Form No.2 and Form No.3 does not include all required information in accordance with the instructions given in Point b Clause 1 which are applied to the Form No.1, Form No.2, those in Point 2 which are applied to the Form No.3 mentioned above, or include all required information but lack attached data, within the permitted duration of 03 business days from the date of receipt of such written request.    

- Request its affiliated entities to send modification or explanation within a period of 03 business days from the date of receipt of its request for such modification or explanation in the event that there is a requirement that the issue must be further clarified.

- Resend the reports sent by its affiliated entities and request them to clarify responsibilities for the case in which attached information enclosed in their reports is not accurate, and there are sufficient grounds for their request for revision or modification in accordance with Point b Clause 1 Section V mentioned above within the duration of 10 business days of receipt of the written request.

b) Collect, assess, analyse and consolidate reports on revision or modification and conduct a survey attended by relevant entities on the release of the Schedule.

c) Send a consolidated report to the leadership of the General Department of Vietnam Customs which serves as the basis for its release of the decision on revision and modification of the Schedule.

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VI. Disciplinary actions imposed on officers or leaders of entities and related departments:

1. With regard to provision of information and request for revision or modification of the Schedule, the disciplinary actions shall be imposed:

In the event that, after the duration mentioned above, there is no information provided and no request for revision or modification of the Schedule or there is any false or inaccurate information causing such request which has been made to be incorrect, which prevents the General Department of Vietnam Customs from obtaining timely information for its formulation, revision or modification of the Schedule as well as affects its customs value administration.

The disciplinary actions imposed on the said violations include reprimand and pay grade reduction prescribed by subparagraph 1.1.2, paragraph 1.1; subparagraph 1.2.2 paragraph 1.2 and subparagraph 1.3.2, paragraph 1.3, Clause 1 Article 6 and subparagraph 1.1.3, paragraph 1.1; subparagraph 1.2.3, paragraph 1.2 and subparagraph 1.3.3, paragraph 1.3, Clause 1 Article 7 of the Decision No. 2435/QD-TCHQ of the Director General of the General Department of Vietnam Customs dated August 19, 2015. 

2. With regard to marking of suspicious signs, customs consultation, post-clearance inspection and customs valuation, the disciplinary actions shall be imposed if:

a) they fail to detect suspicious signs shown in the line of products having the declared prices lower than the reference prices of identical or similar products referred to in the Schedule of imported/exported commodities exposed to customs value risk and the customs value database;   

b) they accept declared customs values after customs consultation or post-clearance inspection when there is sufficient grounds for rejection of declared customs values;

c) they determine customs values in contravention of legislative documents and instructional documents on customs valuation;

The violations referred to in a, b and c shall be subject to the following disciplinary actions: Depending on the seriousness of each violation, the disciplinary action imposed may vary from reprimand to dismissal in accordance with Article 6, 7, 8 of the Decision No. 2435/QD-TCHQ.  In addition to disciplinary actions, other forms of disciplinary actions, including compensation, evaluation and ranking, etc. shall also be applied under the provisions of Article 9 of the Decision No. 2435/QD-TCHQ.

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- Customs post-clearance inspection must be carried out within a period of 30 days under the instructions of the General Department of Vietnam Customs;

- Customs post-clearance inspection must be carried out within a period of 60 days as prescribed;

e) They fail to determine customs values when they are assigned to conduct customs valuation.

When committing the violations referred to in d and e, they shall be subject to the following disciplinary actions: Reprimand prescribed in Clause 2, Article 9 of the Decree No. 34/2011/ND-CP dated May 17, 2011 (failure to perform assigned tasks without giving any proper reason).   In addition to disciplinary actions, other forms of disciplinary actions, including compensation, evaluation and ranking, etc. shall also be applied under the provisions of Article 9 of the Decision No. 2435/QD-TCHQ.

f) With regard to update of customs value data on the GTT02 system, the disciplinary actions shall be imposed if:

They fail to update, or exceed the stated deadline for update of, the results of inspection of prices, results of price check, customs consultation, post-clearance inspection, and settlement of complaints, on the price database.

The disciplinary actions imposed on the said violations include reprimand and pay grade reduction prescribed by subparagraph 1.1.2, paragraph 1.1; subparagraph 1.2.2 paragraph 1.2 and subparagraph 1.3.2, paragraph 1.3, Clause 1 Article 6 and subparagraph 1.1.3, paragraph 1.1; subparagraph 1.2.3, paragraph 1.2 and subparagraph 1.3.3, paragraph 1.3, Clause 1 Article 7 of the Decision No. 2435/QD-TCHQ. 

VII. Implementation:

1. The Directors of the Customs Departments of cities or provinces shall assume the following responsibilities:

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- Appoint or assign their employees who are trained in customs values, acquire skills and hands-on experiences after carrying out customs consultations or post-clearance inspections at significant locations or over customs declaration documentation which may pose a risk of commercial fraud in order to improve effectiveness in customs inspection or valuation activities. Hold practical training sessions to train officers and public employees performing price-related tasks to improve their skills in assessment of suspicious signs, rejection of customs values and taxable value determination; publish instruction manuals for customs inspection and valuation as well as update of results thereof on the system.

- Periodically or irregularly check or evaluate risks of customs inspection and valuation activities in all departments, and promptly detect defects or errors to have them corrected and impose disciplinary actions on officials, public servants, leaderships and related divisions who violate specified regulations.

2. Contents in this document shall replace those in the Official Dispatch No. 239/TCHQ-TXNK dated January 11, 2017, No. 12137/TCHQ-TXNK dated December 29, 2016, 11625/TCHQ-TXNK dated December 9, 2016, No. 12089/TCHQ-TXNK dated December 28, 2016, No. 11911/TCHQ-TXNK dated December 21, 2016, No. 328/TCHQ-TXNK dated December 13, 2016, No. 10773/TCHQ-TXNK dated November 15, 2016, No. 10482/TCHQ-TXNK dated November 4, 2016, No. 167/TCHQ-TXNK dated July 26, 2016 and No. 10922/TCHQ-TXNK dated November 18, 2016.

The General Department of Vietnam Customs hereby informs the Customs Departments of cities and/or provinces and affiliates of the General Department of Vietnam Customs for implementation of these contents. If there is any difficulty arising during implementation, they are advised to send a necessary report and their recommendations to the General Department of Vietnam Customs (the Customs Duty Department) for its instructions./.

PP. DIRECTOR GENERAL
DEPUTY DIRECTOR GENERAL




Nguyen Duong Thai

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