Our Vietnam Legal Update #176 would lead you on 03 legal issues:
I. Establishment of a domestic advisory group (DAG) in Vietnam
On 17 August 2021, the Ministry of Industry and Trade issued Decision No. 1972/QD-BCT on the establishment of a domestic advisory group (DAG) in Vietnam (“DAG Vietnam”) under Article 13.15 Trade and Sustainable Development chapter in the EVFTA Agreement. Some of the contents of the decision are as follows:
- The list of members of DAG Vietnam is issued in the Appendix of this Decision.
- DAG Vietnam operates as a forum, without legal status, without its own seal and account.
- The task of the group is to gather, present views and give recommendations, advice, and suggestions on the implementation of the Trade and Sustainable Development chapter in the EVFTA Agreement. The views and recommendations of DAG Vietnam will be submitted to the government authorities and are for reference only.
- DAG Vietnam has a maximum of 15 members who fully meet the conditions of the Decision, divided equally into 3 subgroups corresponding to 3 fields (Economics, Society, Environment). The term of office of the members is 3 years and can serve for many terms.
- The head of DAG Vietnam is the Board of Presidents, consisting of 1 President and 2 Vice Presidents, which include representatives from the subgroups.
- The work of the DAG Vietnam will be supported by a Secretariat established by the Ministry of Industry and Trade. In addition, the Secretariat also ensures publicity and transparency in the activities of DAG Vietnam.
- DAG Vietnam makes decisions on the basis of consensus. If consensus cannot be reached, decisions are made based on a majority vote. If the number of votes is equal, the President shall decide.
- The working mechanism and regulations of DAG Vietnam are specified in this Decision.
- DAG Vietnam is responsible for its operating expenses.
II. The declaration of goods after 30 days
The General Department of Customs issued the Official Letter No. 3461/TCHQ-PC dated 09 July 2021 on the declaration of goods after 30 days with the following contents:
- Regarding the imported goods, the customs declarations shall be submitted before goods arrive at border checkpoints or within 30 days after goods arrive at border checkpoints. Customs declarants shall have obligations to make customs declarations and follow customs formalities in accordance with the law. In case the customs declarant fails to strictly comply with the regulations on the time limit for customs declaration, he/she will be considered and sanctioned for administrative violations in the field of customs.
- According to regulations on administrative sanctions in the field of customs, a force majeure event is one of the cases that are not sanctioned. However, the consideration of not sanctioning administrative violations due to the impact of the Covid-19 epidemic must be based on the provisions of law and specific case files. Accordingly, individuals and organizations must prove that they have applied all necessary and permissible measures but cannot prevent violations from occurring.
III. VAT when transferring part of the project
Binh Duong Tax Department issued Official Letter No. 12482/CTBDU-TTHT dated 12 August 2021 on VAT when transferring part of the project with the following contents:
- An investor has the right to transfer all or part of an investment project to another investor when the conditions are satisfied as regulated by the law. In case of transferring a project subject to the issuance of an Investment Registration Certificate, the investor shall submit a dossier enclosed with the investment project transfer contract to adjust the investor to the project implementation.
- Conditions for transferring of all or part of a real estate project:
- Real estate projects to be transferred must meet statutory conditions;
- The transferee must be a real estate enterprise, acquire financial competence and commit to keeping conducting the business as prescribed in regulations of law, and ensure that the project is conducted under proper progress and plan.
- The transferor has a Certificate of the land regarding all or a portion of the transferred project.
- Organizations and individuals will not have to declare, calculate, and pay VAT when transferring investment projects for the production and trading of goods and services subject to VAT to enterprises and cooperatives.
- Enterprises are not required to declare, calculate and pay VAT for the transfer of part of the investment project to another company that continues to implement the project meeting the conditions (1) the transfer complied with the law; (2) meets the conditions for the investment project under the Law on Investment and the Law on Real Estate Business; and (3) to serve the production and business of goods and services subject to VAT when conducting the transfer.
- If the above conditions are not satisfied, the enterprise must declare, calculate, and pay VAT according to regulations.
Maybe you are interested in reading other Legal Update of BLawyers Vietnam: August 2021 (Part 3) | August 2021 (Part 2) | August 2021 (Part 1) | July 2021 (Part 5) | July 2021 (Part 4) | July 2021 (Part 3) | July 2021 (Part 2) | July 2021 (Part 1) | June 2021 (Part 4) | June 2021 (Part 3) | June 2021 (Part 2)