Currently, the business of hand-carried goods is gradually becoming popular among Vietnamese people, even this form is popular in the market. However, from a legal perspective, whether the business of hand-carried goods is in accordance with the provisions of the law.

In the following article, Vo & Associates will give us an overview of the hand-carried business.

Basic concept

• What is hand-carried goods?

Current law does not specify the concept of “hand-carried goods”, this concept is implicitly understood by consumers as goods purchased directly from abroad and brought back to Vietnamese by air in different forms, such as bringing back from travel, studying abroad or flight attendants can also bring back after flights.

Hand-carried goods are often very popular, because, according to “advertising”, these are cheaper goods because they do not have to pay taxes and do not have to spend time doing customs declaration procedures.

• What is the business of hand-carried goods?

Trading in hand-carried goods is a form of trading in hand-carried goods from other countries to Vietnam. This form is considered legal when the hand-carried goods you trade have full information and meet the provisions of the law. Conversely, for items that do not meet the requirements as prescribed by law, they will be classified as contraband. And those who deal in contraband are the ones who break the law.

For carrying out business in hand-carried goods, business entities must apply for a business license in specific cases. According to the provisions of Clause 2, Article 79 of Decree No. 01/2021/ND-CP stipulating business cases without business registration, these cases only include street and roadside goods trading. For cases not falling under the above provisions, the law requires business owners to register their business.

Current regulations on business of hand-carried goods:

• Legal provisions on hand-carried goods permitted for business:

If “hand-carried goods” are guaranteed to meet all import conditions; stamps, papers; and pay all taxes and fees as prescribed, they will not be considered as selling smuggled goods; and not violate the law, specifically: the business of hand-carried goods must ensure the following criteria:

+ Goods you choose to trade have been cleared through customs according to the procedures for luggage of people on exit or entry, specified in Article 59 of Decree 08/2015/ND-CP.

+ Goods sold on the market need to ensure the correct quantity and type of goods when completing customs procedures with competent authorities.

+ Sources of hand-carried goods sold on the market are not on the list of goods banned from import or temporarily suspended as prescribed by law.

+ Goods you choose to carry on business must have invoices and documents attached and must meet the provisions of the law on invoice management.

+ Compulsory payment of taxes and fees as prescribed by law for goods imported from abroad, upon arrival in Vietnam such as import tax, customs clearance fee, value-added tax, some goods goods need to pay additional excise and environmental taxes.

Based on the above provisions, if you sell “hand-carried goods” and ensure that you meet all import conditions, stamps, papers and pay all taxes and fees as prescribed, you will not have to sell smuggled goods. and not penalized.

On the contrary, if your goods do not meet the above conditions, they will be classified as contraband, and the trader will be fined according to the provisions of law if trading in contraband.

• Laws on contraband goods.

The current law has very specific provisions on contraband, specifically based on Clause 6, Article 3 of Decree 98 in 2020, smuggled goods include:

“a) Imported goods are on the list of goods banned from import or temporarily suspended from import in accordance with law, except for cases where the Prime Minister decides to allow import; b) Goods imported under permits without import permits or goods imported under conditions that do not satisfy the conditions prescribed by law; c) Imported goods do not go through the prescribed border gate, do not go through customs procedures as prescribed by law or cheat on the quantity and type of goods when doing customs procedures; d) Imported goods circulated on the market without invoices or documents attached as prescribed by law or with invoices and vouchers but invoices and documents are illegal according to the provisions of law on import and export. Invoice Management; dd) Goods imported according to the provisions of law must be affixed with import stamps but do not have stamps on the goods as prescribed by law or have stickers but are fake stamps or used stamps.”

If according to the “advertisement” of the people dealing in portable goods, the portable products do not have to pay taxes, do not go through customs procedures, etc., then these goods are smuggled goods according to the provisions of the Decree. 98/ND-CP

However, not all hand-carried goods are smuggled goods. Hand-carried goods are not smuggled goods when they satisfy the conditions such as having clearly attached invoices and documents, not on the list of goods banned from import or temporarily suspended from import according to the provisions of law. affix import stamps and pay taxes in full according to regulations as analyzed in Section 2.

When trading in contraband, the trader will have to face legal sanctions.

Penalties for dealing in hand-carried goods in the form of smuggled goods.

As for the form of sanction, Decree 98/2020 specifically stipulates as follows:

The fine for the business of smuggled hand luggage will be based on the value of the goods:

“The value of smuggled goods is less than VND 3 million. Fine of 500,000 – 01 million VND

The value of smuggled goods is 03 – under 05 million VND. Penalty from 01 to 02 million VND

The value of smuggled goods is 05 – less than 10 million VND. Fine of 02 – 04 million VND

The value of smuggled goods is 10 – under 20 million VND. Fine of 04 – 06 million VND

The value of smuggled goods is 20 – under 30 million VND. Fine of 06 – 10 million VND

The value of smuggled goods is 30 – less than 50 million VND. Fine of 10 – 20 million VND

The value of smuggled goods is 50 – less than 70 million VND. Fine of 20 – 30 million VND

The value of smuggled goods is 70 – less than 100 million VND. Fine of 30-40 million VND

Value of smuggled goods Over 100 million VND. Fine of 40-50 million VND”

A fine of 2 times the above table for:

Violators who directly import smuggled goods valued at under VND 100 million or VND 100 million or more without being examined for penal liability; Smuggled goods on the list of goods banned from import or temporarily suspended from import; Smuggled goods are food, food additives, food processing aids, food preservatives, preventive and medicinal drugs, medicinal ingredients, cosmetics, medical equipment, chemicals, and preparations. insecticidal and germicidal products, etc. The above fines apply to individuals. The fine level for violating organizations is double the fine for individuals.

In addition, the business of “tax evasion” goods can also be criminally handled for the crime of smuggling according to Article 188 of the Penal Code 2015 supplemented and amended in 2017.

Risks when dealing in hand-carried goods

For the business of hand-carried goods, the appearance of risks is difficult to avoid, risks for both business people and buyers.

For hand-carried traders, if they do not comply with the provisions of the law, they will be subject to a large fine, affecting the business reputation.

For consumers, the risk will also be great, because hand-carried goods are an unofficial import group, not subject to state inspection and supervision, so it is difficult to know the origin of products clearly. Consumers easily buy fake goods, poor quality goods.

The above are the sharing of Lawyers, providing information for the purpose of not consulting and not consulting opinions, Vo & Associates is not responsible in all cases.

For each specific case, please contact Vo & Associates for detailed advice.

Lawyers for business legal advice: 0909 865 891 – 0901 476 391

Or send request via email: hello@voconsultants.vn

Office address: 8th floor, Callary Building, 123 Ly Chinh Thang, Vo Thi Sau Ward, District 3, Ho Chi Minh City.

Best regards./.