Preferential tariff for good of import and export on spot

According to letter no. 2316 / TCHQ-TXNK of General customs mentioned: imported goods eligible for the ATIGA tax rate must fully meet the following conditions: be under the Special Preferential Import Tariff; be imported into Vietnam from countries that are members of the ASEAN Trade in Goods Agreement, including the Socialist Republic of Vietnam (Goods from the non-tariff area imported into the domestic market); directly transported from exporting countries to Vietnam as stipulated by the Ministry of Industry and Trade; meeting the rules of origin of goods in the ASEAN Trade in Goods Agreement, having Certificate of Origin (C / O) Form D, in accordance with current provisions of law.

If goods imported and exported on the spot under normal commercial contracts, not imported from non-tariff areas into the domestic market, or not granted C / O as prescribed, special preferential import tax of ATIGA shall not applied.

Details of letter as below:

The General Department of Customs received Official Letter No. 146/218 / CV-TTC-BH dated March 22, 2018 of Thanh Thanh Cong – Bien Hoa Joint Stock Company on proposing legal policies for Vietnam’s sugar industry. In this regard, the General Department of Customs has the following opinions:

1.Regarding the application of special preferential import tax rates at ATIGA

Pursuant to Point b, Clause 3, Article 5 of the Law on Export Tax and Import Tax No. 107/2016 / QH13 :

3. Import duty rates include preferential rates, special preferential rates, and ordinary rates as follows:

b) Special preferential rates apply to imports originated in any country or group of countries or territories that have an agreement on special preferential import duties with Vietnam; goods that are imported from a free trade zone to the domestic market and originating in a country or group of countries or territories that have an agreement on special preferential import duties with Vietnam;

Pursuant to Article 4 of Decree 129/2016 / ND-CP of September 1, 2016 of the Government (now Article 4 of Decree No. 156/2017 / ND-CP of December 27, 2017 of the Government):

Article 4. Conditions for application of particularly preferential import tax rates

Imported goods eligible for the ATIGA tax rate must fully meet the following conditions:

1. Being on the Special Preferential Import Tariff promulgated together with this Decree.

2. Being imported into Vietnam from countries which are members of the ASEAN Trade in Goods Agreement, including the following countries:

a) Brunei Darussalam;

b) Kingdom of Cambodia;

c) The Republic of Indonesia;

d) Lao People’s Democratic Republic;

d)Malaysia;

e) The Federal Republic of Myanmar;

g) The Republic of the Philippines;

h) The Republic of Singapore;

i) Kingdom of Thailand;

k) The Socialist Republic of Vietnam (Goods from the free trade zone are imported into the domestic market).

3. Being transported directly from exporting countries according to Clause 2, Article 4 of this Decree to Vietnam as prescribed by the Ministry of Industry and Trade.

4. Satisfying the provisions on goods origin in the ASEAN Trade in Goods Agreement, having Certificate of Origin (C / O) Form D, according to the current provisions of law.

Pursuant to Article 35 of the Government’s Decree No. 08/2015 / ND-CP of January 21, 2015 :

“Article 35. Customs procedures that must be followed by on-the-spot exports and imports

1. On-the-spot exports and imports shall include:

a) Those produced in Vietnam under contract manufacturing arrangements and sold to Vietnamese organizations or individuals by overseas ones;

b) Those traded under the sale and purchase contract between domestic enterprises and exporting and processing enterprises or enterprises located in free trade zones;

c) Those traded under the sale or purchase contract between Vietnamese enterprises and overseas organizations or individuals that have no representative in Vietnam, and delivered or received under the designation arrangement between foreign merchants with other enterprises in Vietnam.

Pursuant to Article 15 of Decree 31/2018 / ND-CP dated March 8, 2018 of the Government, agencies and organizations that issue certificates of origin of goods consider granting certificates of origin for exported goods. import and export from export processing enterprises, export processing zones, non-tariff areas and other separate customs areas related to export and import on spot in case of satisfying the rules of origin;

Pursuant to Official Letter No. 3263 / VPCP-KTTH of April 10, 2018 of the Government Office on application of special preferential tax rates to on-spot export and import goods; Accordingly, from September 1, 2016 onwards, the Ministry of Finance complies with the provisions of the Law on Export Tax and Import Tax No. 107/2016 / QH13. If problems arise, the Ministry of Finance shall coordinate with concerned agencies about studying and proposing amendments and supplements as appropriate.

According to the above stipulations, imported goods eligible for the ATIGA tax rate must fully meet the following conditions: be under the Special Preferential Import Tariff; be imported into Vietnam from countries that are members of the ASEAN Trade in Goods Agreement, including the Socialist Republic of Vietnam (Goods from the non-tariff area imported into the domestic market); directly transported from exporting countries to Vietnam as stipulated by the Ministry of Industry and Trade; meeting the rules of origin of goods in the ASEAN Trade in Goods Agreement, having Certificate of Origin (C / O) Form D, in accordance with current provisions of law.

If goods imported and exported on the spot under normal commercial contracts, not imported from non-tariff areas into the domestic market, or not granted C / O as prescribed, special preferential import tax of ATIGA shall not applied.

Thanh Thanh Cong – Bien Hoa Joint Stock Company is kindly study and implement as above.  In case of any problems, please contact the Ministry of Industry and Trade for specific instructions.

2. Regarding refund of import tax

Pursuant to Article 36 of Decree No. 134/2016 / ND-CP of September 1, 2016 of the Government, taxpayer paid import duty on goods imported for production and business but have been put into production for export and exported to foreign countries or exported into non-tariff areas, the paid import tax shall be refunded.

According to the above provisions, in case the Company has paid import tax for goods imported for production but has been put into production of exported goods, it will be refunded the import tax paid if the products were exported to abroad or exported into non-tariff areas. Basis for determining goods eligible for tax refund complies with Clause 3, Article 36 of Decree No. 134/2016 / ND-CP

Thanh Thanh Cong – Bien Hoa Joint Stock Company is kindly requested to study and implement.

The General Department of Customs has above opinions to Thanh Thanh Cong – Bien Hoa Joint Stock Company for acknowledge.

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