Official letter No. 4249/TCHQ-TXNK dated August 30th, 2021 of the General Department of Vietnam Customs regarding handling of duties on imported materials, supplies, components

According to Clause 13 Article 16 of the Law on Import and Export Duties No. 107/2016/QH13, projects invested in areas facing extreme socio-economic difficulties shall be entitled to exemption from import duty for 5 years with regard to materials, supplies, components that cannot be domestically manufactured. However, this policy does not apply to projects on manufacture of, trading in goods, services subject to excise tax.

Accordingly, in case an enterprise executes a project on manufacture of automobiles which are subject to excise tax, it shall not be entitled to import duty exemption for 5 years with regard to materials, supplies, components that cannot be domestically manufactured even the project is executed in an area facing extreme socio-economic difficulties.