What is trade? COMPARE trade goods and non-trade goods

See now: What is trade and non-trade? Similarities and differences between trade and non-trade goods. Places for customs procedures (import and export procedures).

What is trade? What is non-trade?

Trade is the exchange, buying and selling of goods from one place to another, from one country to another, directly managed by the state.

Non-trade is the import, export and exchange of goods for non-commercial purposes between territories, countries or organizations for individuals/organizations of another territory or country. 

What are trade goods? What are non-trade goods?

➤ What are trade goods?

Trade goods are goods imported by businesses for production and business purposes. Normally, trade goods are not limited in import and export quantity.

Traded goods have clear contracts, signed documents, complete documents, procedures, VAT and other related taxes paid according to regulations of state agencies.

Reference:

>> Instructions on accounting, formulas and methods for calculating export tax;

>> Instructions on accounting and calculating import tax.

➤ What are non-commercial goods?

Non-commercial goods are imported and exported goods that are not for business or trading purposes but are used for aid, humanitarian purposes, gifts, or as samples, advertising goods, etc. Non-commercial goods do not require payment or a sales contract (the contract will be replaced by an agreement).

Types of goods considered non-commercial goods include:

• Humanitarian aid;
• Movable assets of individuals and organizations;
• Gifts and donations from organizations and individuals abroad to individuals and organizations in Vietnam or vice versa;
• Temporarily imported and exported goods under personal ownership are exempted from tax by the Vietnamese State;
• Samples without payment (in case of large quantity of samples, the business needs to import for trial use, not for sale);
• Working means and professional tools temporarily exported or imported for a limited period of time by agencies, organizations and individuals entering and exiting the country;
• Goods owned by competent authorities, international organizations in Vietnam and people working at these agencies and organizations;
• Personal luggage of entrants sent by single transport method or goods carried by entrants exceeding duty-free standards;
• Other non-commercial goods.

Comparison of trade and non-trade goods

1. Similarities between trade goods and non-trade goods

• All must pay international fees as prescribed and VAT to the state;
• All must be accompanied by an invoice (international fees, shipping fees, etc.) so that the competent authority can control the value and verify the accuracy of the goods.

2. The difference between non-traded goods and traded goods

Besides the similarities, there are also differences between commercial and non-commercial goods in terms of import and export purposes and the time of receiving goods. Specifically as follows:

Place of registration of customs declaration for commercial and non-commercial goods

1. What is a customs declaration?

Customs declaration, also known as import-export declaration, is a document in which the owner of goods (importer or exporter) declares full and detailed information about the shipment (quantity, name of each type of goods, etc.) when exporting abroad or importing into Vietnam.

Customs declaration is one of the mandatory procedures that must be carried out if an individual/organization wants to import or export a certain item. If there is no customs declaration or the declaration information is incorrect, all issues related to the import and export of that item will be stopped.

2. Place of customs declaration registration 

Pursuant to Article 19 of Circular 38/2015/TT/BTC, the location for registering customs declarations for non-commercial and commercial goods is specified as follows:

• For export goods: Individuals/organizations register customs declarations at one of the following three locations:
  • Customs Branch where the enterprise has its headquarters or production facility;
  • Customs Branch where export goods are gathered;
  • Customs Branch of export gate.
• For imported goods: Individuals/organizations register declarations at one of the following two locations:
  • Headquarters of the Customs Branch at the border gate where the goods are stored and the destination port are recorded on the bill of lading and transportation contract;
  • Customs branch outside the border gate where the enterprise is headquartered or where the goods are shipped to.
• For exported and imported goods under certain specific types, the place for declaration registration is implemented according to each corresponding type as prescribed in Decree No. 08/2015/ND-CP.

Customs clearance location for commercial and non-commercial goods

The location for customs procedures (import and export procedures) for commercial and non-commercial goods is specified as follows:

• For export goods: Individuals/organizations carry out customs procedures at the Customs Sub-Department under the customs department. In addition, depending on the type of goods, the place where the procedures are carried out may change according to the requirements of the competent authority;
• For imported goods: Individuals/organizations carry out procedures at the Customs Branch where the goods are received or at the Customs Branches under the Ministry of Customs according to regulations.

Frequently asked questions about commercial and non-commercial goods