Managing Trade & Customs in Vietnam

Transcription

1 Managing Trade & Customs in Vietnam

2 1 Managing Trade & Customs in Vietnam Preface Multinational businesses must deal with a host of customs-related challenges regarding their crossborder operations. Customs rules can present complex challenges in any jurisdiction. However, if these rules are understood and managed, they can enable organizations to reduce operational risks, manage costs, yield savings and improve bottom line. As Vietnam s customs regulatory framework evolves, it becomes increasingly important for organizations to manage their customs strategies in a coordinated manner that is aligned with their overall business objectives. A proactive and cost-effective customs management plan involves opportunity planning and risk management, including compliance assurance.

3 Managing Trade & Customs in Vietnam 2 KPMG s Trade & Customs Services Team Skillfully managing the customs-related elements of international trade requires special knowledge. To assist our clients in dealing with trade and customs issues, KPMG Vietnam has a dedicated and specialized Trade & Customs Services Team of professionals who are able to assist clients from all sectors with a broad range of trade and customs services. Our professionals come from a variety of backgrounds with well established credentials, who are able to present the right mix of local and international experience in ensuring that the quality of our services meets the right quality standards. Our team has extensive hands-on experience in handling various customs projects, and can leverage on its broad regional and global resources and experience. Our team is part of the KPMG Asia-Pacific Trade & Customs Services practice, which is built upon a broad network of customs professionals in all key markets throughout the region. We coordinate closely with other key service lines within the KPMG network, such as Transfer Pricing, Corporate Tax and Advisory. As a result, we are able to offer comprehensive trade and customs services, and to provide you with an integrated service package to meet your needs.

4 3 Managing Trade & Customs in Vietnam How can KPMG help? We assist our clients to reduce customs-related costs and expenses and to enhance trade processes and strategies. We provide in-depth customs guidance and support, tailored to your needs for customs planning as well as compliance with regulatory requirements. A few of our fundamental service offerings include: Ad-hoc or Project-based Customs Advisory Services Evaluating Free Trade Agreements ( FTAs ) There are over one hundred regional and bilateral free trade agreements offering preferential duty rates for companies doing business in Asia. Exploring the FTA landscape can reveal significant reductions in duties and import-related costs, and even if a company is already claiming FTA benefits, closer examination of practices and procedures may reveal that critical compliance requirements are not met. We can advise you on how to qualify and benefit from the available FTAs to save your customs duty costs, and/or review your current practices to identify noncompliance before advising you on the necessary changes to help avoid costly customs penalties.

5 Managing Trade & Customs in Vietnam 4 We offer holistic, regional customs solutions. We understand your business. We live and breathe the regulatory environment. Customs valuation planning Under WTO Customs Valuation Agreement, the final price actually paid or payable by an importer is the value that must be declared to Customs. This includes universal additions to the price as well as legal deductions. However, certain cost elements included in the final price can be stripped out, thus lowering duty costs, and potentially other indirect tax costs. We can help you to identify and unbundle the underlying non-dutiable costs in accordance with Vietnam s domestic customs law and GATT/WTO Customs Valuation Rules in optimizing import duty savings. Tariff engineering Tariff classification, based on the physical form of the goods, determines the rate at which duty is payable on import. It is often possible to change the tariff classification by changing the state in which the goods are imported. We will not only help you to classify your products compliantly but also to do so smartly to reduce import duty rates where possible. Tax Efficient Supply Chain Management (TESCM) Services In conjunction with the increasing complexity of supply chains, the transfer pricing environment globally and, in particular, in Asia has become very challenging. In response to the fast growth in global trade, modern techniques and innovation, businesses are changing and so must their operating models. To meet this need, we offer TESCM services which integrate supply chain design with tax optimization in achieving significant increases in profits. It is based on the premise that incorporating tax arbitrage into supply chain structures (typically by optimizing the location of the key supply chain functions, assets and risks) realizes benefits well beyond conventional operational savings on their own, TESCM is especially topical as tax authorities are challenging traditional tax planning structures and products.

6 5 Managing Trade & Customs in Vietnam

7 Managing Trade & Customs in Vietnam 6 Customs Health-Check and Due Diligence Services Vietnam s customs regulations are complex and often subject to different interpretations which may lead to uncertainty and exposures. To help you mitigate the risks and exposures, therefore, we have designed Customs Health Check and Due Diligence services to help clients identifying potential risks, estimating duty exposure, and suggest appropriate rectification actions. Customs Dispute Resolution & Controversy Pre-Customs Audit Assistance Our customs professionals review the customs authorities requests of records and information required for their customs audit, we then advise and assist you in the preparation and presentation of such records and information to the customs auditors in the best possible form which can minimize scrutiny and risks of noncompliance and penalties. In the event of a customs audit, we may also participate in presenting the requested information to the customs auditors and advise the appropriate responses to any queries raised by the customs auditors. Post-Customs Audit Assistance Upon completion of a customs audit, the customs auditors often release a report colloquially referred to as Customs Audit Minutes, in which compliance issues are recorded and customs duty adjustments are made. Our professionals will review and comment on these findings, recommend the appropriate responses to protect your positions and reserve our rights for further appeal and/or legal proceedings. Customs Controversy Customs rulings - where there are areas of uncertainty in the application or interpretation of customs laws and regulations, we can assist in making a request to the relevant customs authorities for their clarification or confirmation of a certain customs treatment or position in respect of past or contemplated transactions. Customs appeal - where customs issues remain unresolved, we can assist in addressing such issues through the customs administrative appeal hierarchy beginning with the local provincial customs department, or escalating to the national General Department of Customs (GDC) and/or the Ministry of Finance. Customs Manual and In-house Trade & Customs Training Many companies rely heavily on third parties such as customs brokers and freight forwarders for the facilitation of shipments. As such, much has been entrusted to these third parties, particularly involving functions that could have administrative, risk management or strategic ramifications on corporate operations. It may be more cost effective to turn these responsibilities over to in-house resources. Based on our understanding of your business, we can conduct in-house Trade & Customs trainings, and/or help you to tailor a customized Customs Manual which explains in detail the required customs procedures, requirements, planning opportunities and Best Practices in Vietnam that your in-house customs-responsible personnel can follow to ensure compliance and efficiency. Customs Retainer Services A retainer offers you the flexibility of being able to contact us for routine advice on a regular basis for a pre-determined fixed fee, and access to our staff and resources, when needed.

8 For more information on our Trade & Customs Services in Vietnam, please contact: Hoang Thuy Duong Partner Tax & Corporate Services T: E: dthoang@kpmg.com.vn Nhan Huynh Head of Trade & Customs Director Tax & Corporate Services T: E: nnhuynh@kpmg.com.vn KPMG Limited Ho Chi Minh City 10th Floor, Sun Wah Tower 115 Nguyen Hue Street District 1, Vietnam T: F: E: kpmghcmc@kpmg.com.vn Hanoi 16th Floor, Pacific Place 83B Ly Thuong Kiet Street Hoan Kiem District, Vietnam T: F: E: kpmghanoi@kpmg.com.vn kpmg.com.vn About KPMG KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 150 countries and have 138,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation KPMG Limited, a Vietnamese limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International. All rights reserved. TAXTCS