Vietnam customs guiding on policy of duties on goods manufacturing or processing for export but must be re-imported

General Department of Vietnam Customs issued letter no. 3514/TCHQ-TXNK dated 30 May 2019 on handling tax for goods manufacturing or processing for export but must be re-imported.

The content is as below:

Replying to Official Letter No. 789 / HQHCM-TXNK dated April 1, 2019, Official Letter No. 538 / HQHCM-TXNK dated 11/3/2019, Official Letter No. 140 / HQHCM-TXNK dated 14/01/2019 of the Customs Department City Ho Chi Minh on the handling of tax on exported manufactured goods (SXXK) but must be re-imported, the General Department of Customs has the following opinions:

Pursuant to Point b, Clause 1, Article 19 of the Law on Export Tax and Import Tax No. 107/2016 / QH13, Article 33 of Decree No. 134/2016 / ND-CP dated September 1, 2016 of the Government stipulating : “Any taxpayer who has paid export duty but the exports has to be re-imported shall receive a refund of export duty and does not have to pay import duty”.

Pursuant to Article 3 of the Law on Special Consumption Tax No. 27/2008 / QH12, Article 3 of Decree No. 108/2015 / ND-CP dated October 28, 2018 of the Government stipulating Goods exported for re-import which are not subject to Excise Tax.

Pursuant to Clause 4, Article 47 of Decree No. 08/2015 / ND-CP of January 21, 2015 of the Government  stipulate : “Customs authorities shall not levy taxes on re-imported commodities as stipulated in Clause 1 of this Article if customs declarants submit sufficient documents proving that tax exemption is applicable to these commodities at the time of completing required re-import customs formalities in accordance with legal regulations;”.

Pursuant to Point b, Clause 2, Article 1 of Decree No. 14/2019 / ND-CP of February 1, 2019 of the Government stipulating Documents and procedures for refund of special excise tax on materials imported for manufacturing or processing of goods for export 

Pursuant to Clause 39, Article 1 of Circular No. 39/2018 / TT-BTC of April 20, 2018 (amending and supplementing Article 60 of Circular No. 38/2015 / TT-BTC of March 25, 2015) of the Ministry of Finance stipulates the regulation that final reports on the situation of using imported raw materials, supplies and exported goods.

Based on the above provisions, the handling tax for goods manufacturing or processing for export but must be re-imported as follows:

  1. Import tax and export tax

When re-importing goods manufacturing for export for waiting for re-export, the customs offices shall handle the non-collection of import tax at the time of carrying out the re-import procedures, the customs declarers shall submit the full set of non-collection dossiers as prescribed; enterprises shall be refunded the paid export tax amounts (if any).

The enterprise shows the amount of re-imported products in the settlement report at criteria 26.10 (The volume of products imported in the period), and the number of re-imported declarations at the criteria 26.13 (Note) form no. 26 Appendix I issued together with Circular 39/2018 / TT-BTC. In case of paper records, enterprises show the amount of re-imported products in the final settlement report in column 6 (The volume of products imported in the period), the number of re-imported declarations in column 11 (Note) form No. 15a / BCQTSP-GSQL Appendix II issued with Circular 39/2018 / TT-BTC.

If the enterprise was refunded export tax (if any) for the re-imported products then re-exported, the enterprise must pay export tax (if any) as same as the first export.

The enterprise shows the quantity of exported products in criteria 26.11.2 (Production of export products), writes the number of re-exported declarations to the criteria 26.13 (Note), Form No. 26 Appendix I issued with Circular 39 / 2018 / TT-BTC. In case of a paper form, the enterprise shows the quantity of re-exported products in the settlement report in column 8 (The volume of exported products), and inscribes the number of re-exported declarations in column 11 (Note), form No. 15a / BCQTSP- GSQL Appendix II is issued with Circular 39/2018 / TT-BTC.

  1. Excise tax

When re-importing goods manufacturing for export for waiting for re-export, enterprises must declare excise tax on re-import declarations. ; customs authorities shall not collect tax if at the time of carrying out procedures for re-importing if declarant submit full sets of dossiers of non-collection of  excise tax . The order and procedures of non-collection of excise tax shall be similar to the order and procedures for non-collection of import tax specified in Article 27 issued together with Decision No. 1919 / QD-TCHQ of June 28, 2018. (This content replaces the guidance at Point 2 of Official Dispatch No. 7465 / TCHQ-TXNK dated December 19, 2018 regard that enterprises do not have to declare excise tax on re-import declaration..)

If  the enterprise has been refunded excise tax for imported raw materials and supplies used for production of exported goods in accordance with the provisions of Point b, Clause 2, Article 1 of Decree No. 14/2019 / ND-CP dated 01 February  2019, the enterprise must return the refunded excise tax amount corresponding to the amount of imported materials and supplies used to produce the exported goods but must be re-imported.

Re-imported products for re-export shall be refunded excise tax for imported raw material used to produce exported products according to the provisions of Point b, Clause 2, Article 1 of Decree No. 14/2019 / ND-CP

  1. Changing into domestic consumption after re-import

If Goods re-imported but not re-export which is changed to domestic one, Taxpayers declare declarations of changes in the use purposes for imported raw materials and supplies used for production of export goods but for domestic consumption under the provisions of Clause 12, Article 1 of the Decree 59/2018 / ND-CP dated April 20, 2018 (amending and supplementing Article 25 of Decree No. 08/2015 / ND-CP dated January 21, 2015) of the Government.

General Department of Customs announces to HCM Department of Customs for acknowledge and action.

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