Customs procedures, tax policies for processed goods between head office and its branch

In July 10, 2019, The General Department of Customs issued official letter no. 4490/TCHQ-TXNK regarding customs procedures, tax policies for processed goods as questioned by Branch of Fujikin Vietnam Limited Company VWL Hanoi .

Content is as follow:

The General Department of Customs received the official letter No. XNK2019 / 01-1 dated 28/01/2019 of the Branch of FUJIKIN VIETNAM CO., LTD VWL HANOI.. on customs procedures and tax policies among the branches of companies in the same group with dependent accounting in Vietnam. In this regard, the General Department of Customs has the following opinions:

In the opinion of the Ministry of Industry and Trade in Official Letter No. 4337 / BCT-KH dated 18/6/2019 (attached photocopy):

 “1.About the legal status and scope of operations of the Branch

a) According to Article 84 of the Civil Code: “Branches and representative offices are dependent units of legal entities.It is  not legal entities.”

b) Under the provisions of Clause 1, Article 45 of the 2014 Enterprise Law: “A branch is a dependent unit of an enterprise, having the duty to perform all or part of the functions of an enterprise, including its representative representative functions. right. The branch’s business must be in line with the business lines of the business.

Therefore, the Branch of Fujikin Vietnam Co., Ltd. is only allowed to perform the functions of the Company in accordance with the scope of tasks assigned / authorized by the Company, on the basis of the registered business lines of the Company in accordance with  Enterprise Law, Investment Law.

c) Contents of business registration of Fujikin Vietnam Co., Ltd. under Business Registration Certificate No. 0101264760 on the National Business Registration Portal has no content related to  hire / outsource.

In Decision No. 02 / QD-FVN-VNWLHN dated October 22, 2018 of Fujikin Vietnam Co., Ltd., there is no content to authorize Fujikin Vietnam Co., Ltd. – VWL Hanoi to be hired / outsourced.

At Certificate No. 666388/18 regarding the change of the content of branch operation registration issued by Hanoi Business Planning and Investment Department on October 26, 2018, there is no related content about the Branch of Fujikin Vietnam Co., Ltd. – VWL Hanoi, is hired / outsourced.

Therefore, the branch of Fujikin Vietnam Co., Ltd. VWL Hanoi implements the import of goods from abroad into Vietnam under the right of import and then to the Branch of Fujikin Vietnam Co., Ltd. – Bac Ninh Factory to carry out Product processing, then receiving the product is not consistent with the above regulations. “

Therefore, the General Department of Customs has no basis to guide customs procedures and tax policies for the proposal of the Branch of FUJIKIN VIETNAM CO., LTD VWL HANOI.

The General Department of Customs announces to Fujikin Vietnam Co., Ltd. Branch of VWL Hanoi for knowledge /. 

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