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blue-check Regarding handling of duties on goods which are manufactured for export are destroyed

Official letter No. 4783/TCHQ-TXNK dated October 8th, 2021 of the General Department of Vietnam Customs regarding handling of duties on goods which are manufactured for export are destroyed
Posted: 12/10/2021 11:41:17 AM | Latest updated: 2/11/2021 11:03:46 AM (GMT+7) | LuatVietnam: 5315 | Vietlaw: 533
VietlawOnline

According to clause 6 Article 1 of Decree No. 18/2021/ND-CP, with regard to imported materials, supplies, scrap and refuses obtained from export production, etc. if they are allowable to be destroyed and have been destroyed in reality, import duty shall be still exempt.

However, if after the destruction, other products are obtained and they are sold domestically, the enterprise has to declare and pay excise tax (if any), environmental protection tax (if any), value added tax to tax authority.

In addition, it should note that, applicable laws do not regulate import duty exemption given to the case of preliminary destruction of raw materials, supplies, finished products, semi-finished manufactured for export. Upon selling the preliminarily-destroyed products in the domestic market, the enterprise has to open a new customs declaration, fully pay taxes on the imported materials composing the preliminarily-destroyed products.

Ms Phuong Thao (VietlawOnline.com)
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Published Vietlaw's Newsletter No. 533
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