In case a domestic enterprise imports materials on the spot for export production, if the materials are bought from an export processing enterprise (EPE) or from a foreign country and received from an EPE under designation, concurrently the goods meet the conditions at clause 6 Article 1 of Decree No. 18/2021/ND-CP, the import duty and value added tax (VAT) shall be exempt. The customs declaration uses customs procedure code E31 - import of raw materials for export production.
However, if such materials imported on the spot are bought from a foreign country and they are designated to receive from another domestic enterprise in Vietnam, they shall not be exempt from import duty. The domestic enterprise has to register customs declaration according to the customs procedure code A11 (import for sale) or customs procedure code A12 (import for business and production operation) and have to pay import duty. After the goods are exported, the enterprise shall be entitled to receive the duty refund according to Article 36 of Decree No. 134/2016/ND-CP .