New decree on trading in duty-free goods

Decree 167/2016/ND-CP, dated December 27, 2016 on trading in duty-free goods (Decree 167) stipulates new regulations on subjects and conditions for buying duty-free goods, tax policy on goods at duty-free shops, and quality of duty-free goods.

Question: What are the new regulations of Decree 167?

Answer: Decree 167 specifies key points as follows:

1. Subjects and conditions for buying duty-free goods

Under Decree 167, the conditions for buying duty-free goods are prescribed for each subject as follows:

People who have finished the procedures for exit or transit, passengers on international flights leaving Viet Nam or people who are awaiting exit are eligible to buy duty-free goods, including:

· People who are going to exit or transit through international road border gates; international railway border gates, seaports type 1 and international civil airports are eligible to buy duty-free goods from duty-free shops in the designated area; passengers on international flights leaving Viet Nam are allowed to buy duty-free goods on the aircraft;

· People who are awaiting exit are eligible to buy duty-free goods from inland duty-free shops. Duty-free goods are received at the delivery stall in the isolated area of the international border gate, where passengers are waiting for exit; and

· Foreign tourists who travel in groups by sea, have passports, boarding passes or shore passes of immigration passengers as prescribed buy do not have visas and immigration declaration forms are eligible to buy duty-free goods at seaports type 1 or from inland duty-free shops. Duty-free goods are to be received at the exit border gate when tourists have finished the exit procedures.

Passengers on international flights to Viet Nam are eligible to buy duty-free goods on the aircraft.

People on entry are eligible to buy duty-free goods from duty-free shops situated at the restricted areas of international civil airports right after they have finished the entry procedures and are not allowed to buy duty-free goods after leaving the restricted areas of international civil airports;

People who enjoy privileges and immunities in Viet Nam are eligible to buy duty-free goods from inland duty-free shops; and

Crew members who work on vessels running international lines are eligible to buy duty-free goods at seaports type 1, from inland duty-free shops to serve their personal and living needs on board during the time their vessels are berthed at Vietnamese seaports and for use on board after the vessel exits Vietnamese waters.

2. Tax policy at duty-free shops

Decree 167 regulates that goods with different origins shall be subjected to different types of duties at duty-free shops, specifically as follows:

Goods which are imported temporarily to be sold at a duty-free shops are exempt from import duties, special consumption tax and value added tax;

Goods which are manufactured in Viet Nam and sold at duty-free shops shall enjoy the same tax policies with temporarily exported goods; and

Imported goods of which import duties have been paid and which are sold at duty-free shops shall have their amounts of duties in excess dealt with in accordance with the law on tax management.

3. Goods at duty-free shops

Decree 167 regulates that goods sold at duty-free shops will include (i) goods temporarily imported into Viet Nam; (ii) goods manufactured in Viet Nam; (iii) goods of which the import procedure has been finished and which are allowed to circulate in accordance with the Vietnamese law.

Especially, cigarettes, cigars, wine, and beer which are sold at duty-free shops must affix the stamp “VIET NAM DUTY NOT PAID” issued by Ministry of Finance. The stamp must be applied before the goods are displayed for sale at duty-free shops or delivered to customers in case the goods are transferred directly from the duty-free stock to customers.

For temporarily imported goods which are sold at duty-free shops and offered for sale in the domestic market, the policy for management of imported goods and the tax policy for imported goods shall be implemented at the time the new customs declaration form is prepared to bring the goods into the domestic market, except for cases where the policy for management of imported, exported goods has been fully satisfied at the time of the first declaration form.

4. Quantity of duty-free goods

Decree 167 supplements some regulations on specifying the quantity of duty-free goods:

People who are exiting or in transit, passengers on international flights leaving Viet Nam or people who are waiting to exit are allowed to buy duty-free goods with unlimited quantities and values but have to be responsible for the procedures and quantity limits to be imported to the destination country;

Cree members are allowed to buy duty-free goods to serve their personal and living needs on vessels running international lines for the time the vessels are berthed at Vietnamese seaports.

Crew members are eligible to buy duty-free goods with unlimited quantities and values for use after their vessels exits Vietnamese waters.

Decree 167 took effect from February 15, 2017./.

VGP
 

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