In international trade, sellers often grant buyers trade discounts and price reductions — volume discounts, trade-level discounts, early-payment discounts, year-end rebates. A practical question for importers: can these amounts be deducted from the dutiable value in customs valuation? The answer: yes, but only a “discount” satisfying all 5 conditions in Article 15(2)(d) of Circular 39/2015/TT-BTC qualifies. This article explains the conditions, the procedure, and the common traps that get businesses refused.
General principles for deductible adjustments
Under Article 15(1) of Circular 39/2015/TT-BTC (consolidated document 21/VBHN-BTC dated 23 April 2020; amended by Circular 60/2019/TT-BTC), an amount may only be deducted from the transaction value if all 3 conditions are met:
- (a) Based on objective, quantifiable data consistent with related lawful documents and available at the time of valuation;
- (b) Already included in the actual price paid or payable;
- (c) Consistent with Vietnamese accounting law.
For discounts specifically, Article 15(2)(d) imposes 5 additional mandatory conditions — missing even one means no deduction.
The 5 mandatory conditions for a deductible discount
(d.1.1) Belonging to one of 3 discount types
The discount must be one of three types: discount by trade level of the transaction; discount by quantity of goods; or discount by payment form and timing. Other “discounts” — e.g., payment discounts outside these three types, post-sale discounts, cumulative year-end rebates — are not automatically deductible.
(d.1.2) Documented in writing before loading
The discount must be set out in writing before the goods are loaded onto the means of transport in the exporting country. A discount agreed after loading is one of the most common reasons for refusal.
(d.1.3) Objective data filed with the declaration
There must be objective, quantifiable data; documents separating the discount from the transaction value must be filed together with the customs declaration.
(d.1.4) Bank payment by L/C or TTR
Payment must be made through a bank by L/C or TTR for all goods under the sale contract. Other payment forms (cash, set-off, etc.) breach this condition.
(d.1.5) Consistent with the seller’s published discount schedule
The declared value, actual quantity, trade level, and payment form/timing must be consistent with the seller’s published discount schedule. The absence of such a schedule is the third most common ground for refusal.
The 3-step procedure to claim a discount deduction
Under Article 15(2)(d.3), businesses follow three steps:
- Step 1: Declare the discount under “valuation details” on the import/customs value declaration, but do not yet apply the deduction;
- Step 2: Calculate and pay tax on the undeducted value;
- Step 3: After completing importation and paying for all goods under the contract, submit the dossier requesting discount consideration: the written request (01 original); the sale contract (01 copy); the import tracking statement on Form 01/GG/2015 (for multiple shipments); the seller’s published discount schedule; and full payment documents.
Who decides? How long does it take?
Authority (d.3.2.3): the Director of the provincial/municipal Customs Department decides where the discount is below 5% of the consignment’s total value and the declared value is not lower than the reference price of identical goods in the List of imported goods at risk in terms of value; other cases are decided by the higher competent customs authority. (Note: the original text uses titles from the former organizational structure; the General Department of Customs became the Customs Department on 1 March 2025 under Decree 29/2025/ND-CP, so the current structure should be checked when applying.)
Processing time: customs examines and processes the discount within 05 working days from receipt of a complete dossier (Article 3(5) of Circular 39/2015). Any resulting tax difference is handled under the rules on overpaid tax — the Law on Tax Administration 108/2025/QH15 (effective 1 July 2026, replacing Law 38/2019).
Three common traps
- Trap 1: Discount agreed after the goods were loaded — breaches the pre-loading written-document condition;
- Trap 2: Payment not via L/C or TTR — breaches the bank-payment condition;
- Trap 3: No published discount schedule from the seller — breaches the schedule-consistency condition.
Discounts earned after the valuation point (e.g., year-end rebates) also fail the “in writing before loading” condition and cannot be deducted.
Frequently asked questions
Is an early-payment discount deductible?
Only if it falls within one of the three types in (d.1.1) (discount by payment form and timing is one of the three) and satisfies the other four conditions. Payment discounts outside the three types are not deductible.
Are year-end volume rebates deductible?
No. Rebates earned after the valuation point do not satisfy the “set out in writing before loading onto the means of transport in the exporting country” condition.
What if tax was paid on the undeducted value and the discount is later approved?
The resulting tax difference is handled under the overpaid-tax rules of the Law on Tax Administration 108/2025/QH15.
Legal basis
- Circular 39/2015/TT-BTC on customs valuation (consolidated document 21/VBHN-BTC dated 23 April 2020; amended by Circular 60/2019/TT-BTC, effective 15 October 2019);
- Law on Tax Administration 108/2025/QH15 (effective 1 July 2026, replacing Law 38/2019/QH14).
This article is for reference only and does not constitute legal advice; consult a lawyer for your specific situation.
Does your business receive discounts from foreign suppliers and want to lawfully optimize the dutiable value? Contact FLAT Law Firm for advice on dossiers and discount-deduction procedures.
Legal content reviewed by the FLAW AI Legal Council and submitted to the owner for approval; not a practicing lawyer’s opinion, not a substitute for legal advice on a specific matter.
