Công văn 4138/TCHQ-TXNK

To: Provincial Departments of Customs

General Department of Customs has received enquiries from Provincial Departments of Customs about tax on goods imported for further processing and production prior to export as indirect export. Below are opinions of the General Department of Customs.

Pursuant to Clauses 1 and 3 Article 2 of Law on Export and Import duties No. 107/2016/QH13, goods exported and imported through Vietnam’s border and border checkpoints are taxable;

Pursuant to Clause 3 Article 2 Decree No.134/2016/ND-CP dated September 01 2016 by the Government, in-country exports specified in clause 3 article 2 of Law on Export and Import duties and Decree No. 08/2015/ND-CP dated January 21 2015 by the Government are taxable;

Pursuant to Articles 10 and 12 of Decree No.134/2016/ND-CP dated September 01 2016 by the Government, goods imported for further processing and production of domestic exports are exempted from tax ;

Pursuant to Clause 1 Article 35 Decree No.08/2015/ND-CP dated January 21 2015 by the Government providing details and guidance on customs procedures for in-country exports;

Pursuant to Clause 5 Article 86 of Circular No.38/2015/TT-BTC, which is amended by clause 58 Article 1 of Circular No.39/2018/TT-BTC dated April 20 2018 by the Ministry of Finance providing details and guidance on customs procedures for in-country exports;

An enterprise which imports materials and/or supplies for further processing of goods under a contract with a foreign partner and then delivers the finished goods to a local enterprise at the request of the foreign partner (in-country export) shall be granted exemption from import duty on such imported materials and/or supplies.

This dispatch replaces the point 2 of Dispatch No. 5826/TCHQ-TXNK dated October 5 2018 by the General Department of Customs.

For your reference and compliance.