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Principles of customs valuation applicable to exported goods
Clause 3, Article 1, Circular No. 60/2019/TT-BTC prescribing principles and methods of customs valuation applicable to exported goods with the principles as follows:
- Customs value is the selling price of goods at the border gate of exportation, exclusive of international insurance cost (I) and international freight (F) and shall be determined by applying the methods provided in Clauses 2, 3, 4 and 5 of this Article (other methods shall be listed in the next part) one after another until a custom value is identified.
- Customs valuation must be based on objective and quantifiable documents and data.
- Cost distribution principle:
The costs prescribed in Clause 2 of this Article shall be calculated for exported goods of each category. In case a goods shipment contains goods of different categories but costs are not yet detailed for each category of goods, they shall be distributed by:
+ Selling price of goods of each category;
+ Weight or volume or quantity of goods of each category.
Methods of customs valuation applicable to exported goods
Pursuant to Clause 3, Article 1, Circular No. 60/2019/TT-BTC, the methods of determining the selling price of goods of exportation including:
1. The methods of determining the selling price of goods at the border gate of exportation
The selling price of goods at the border gate of exportation is a selling price written in the goods purchase and sale contract or commercial invoice plus costs related to exported goods at the border gate of exportation in conformity with relevant documents, provided that such costs are not yet included in the selling price of goods.
- Method of determination:
+ In case exported goods are delivered at the border gate of exportation: The selling price of goods at the border gate of exportation is a selling price written in the goods purchase and sale contract or commercial invoice plus costs related to exported goods at the border gate of exportation in conformity with relevant documents, provided that such costs are not yet included in the selling price of goods.
+ In case exported goods are not delivered at the border gate of exportation:
- If the place of goods delivery is outside the Vietnamese territory, selling price of goods at the border gate of exportation shall be determined on the basis of the selling price written in the goods purchase and sale contract or commercial invoice minus international insurance cost (I, if any) and international freight (F) for the distance from the border gate of exportation to the place of goods delivery;
- If the place of goods delivery is within the Vietnamese territory, selling price of goods at the border gate of exportation shall be determined on the basis of the selling price written in the purchase and sale contract or commercial invoice, plus the following costs:
- Domestic freight and other costs related to the transport of exported goods from the place of goods delivery to the border gate of exportation, including also costs of gathering goods, hiring warehouses, loading and unloading goods to and from carrying vehicles, and transporting goods to the border of exportation;
- Insurance cost of exported goods for the stretch of road from the place of goods delivery to the border gate of exportation (if any);
- Other costs related to exported goods occurred an route from the place of goods delivery to the border gate of exportation.
- Documents used for customs valuation by this method include (one copy for each document):
+ Goods sale and purchase contract or commercial invoice;
+ Documents relating to costs of exported goods at the border gate of exportation (if any);
Other documents relating to selling price of goods at the border gate of exportation (if any);
2. The method of using selling price of identical or similar exported goods stated in the customs value database
- If applying this method, customs value of exported goods shall be determined based on selling price of identical or similar exported goods stated in the customs value database after being converted into selling price of goods at the border gate of exportation at the time nearest to the date of registration of the export declaration of the shipment subject to customs declaration.
- Cases where conversion is required:
+ There is a difference in the stretch of road;
+ There is a difference in the mode of transport.
- Conditions for application:
+ Customs value of exported goods may be determined by this method on conditions that selling price of identical or similar exported goods determined and declared by enterprises by the method prescribed in Clause 2 of this Circular has been accepted by customs offices or is determined by customs offices by one of the methods prescribed in Clause 8, Article 1 of Decree No. 59/2018/ND-CP;
+ The conversion required upon occurrence of a difference in the stretch of road or mode of transport may be made only when there are objective and quantifiable documents according to this method;
+ In case two or more values of identical or similar exported goods can be determined at a time, customs value shall be the lowest among these values; customs values of identical or similar exported goods shipments of which declared values are doubted may not be used.
- Documents used for customs valuation by this method include (one copy for each document):
+ Export customs declarations of identical or similar exported goods;
+ Transport contracts or documents showing transport freight of identical or similar exported goods;
+ Other documents relating to selling prices of identical or similar exported goods contained in the customs value database.
3. The method of using selling price of identical or similar goods in the Vietnamese market
- If this method is applied, customs value of goods shall be determined based on selling price of identical or similar goods in the Vietnamese market stated in goods sale invoices at the time nearest to date of registration of the export declaration of the goods shipment subject to customs valuation plus domestic freight and other related costs for transporting the goods to the border gate of exportation.
- Selling price of identical or similar goods in the Vietnamese market must be expressed in accounting books and documents and recorded in accordance with Vietnam’s accounting law. In case there exists more than one selling price at a time, the selling price with the highest cumulative sales shall be used.
- Domestic freight and other related costs for transporting goods to the border gate of exportation shall be added to the customs value only when there are objective and quantifiable documents;
- Documents used for customs valuation by this method include (one copy for each document):
+ Goods sale invoices under regulations of the Ministry of Finance;
+ Documents on domestic freight and costs used for customs valuation under Point a of this Clause.
4. The method of using selling price of exported goods collected, summarized and classified by customs offices
- Customs value of exported goods shall be determined by using selling price of goods summarized from different sources of information under Article 25 of this Circular after being converted into selling price at the border gate of the exported goods subject to customs valuation.
- In case there are more than one customs value after being converted, the lowest value shall be used; customs values of identical or similar goods shipments which are doubted under regulations may not be used.
- Documents used for customs valuation by this method include documents relating to the selling price of goods collected from different sources of information and converted into selling price at the border gate of exportation (1 copy for each document).
Note: Customs valuation of exported goods in special cases
For exported goods without goods sale and purchase contracts and commercial invoices, customs value is declared value. In case there are grounds to believe that the declared price is inappropriate, customs offices shall carry out customs valuation according to the principles and methods prescribed in this Article.
Here are the regulations on methods of customs valuation applicable to exported goods.
