Official letter No. 3487/TCHQ-TXNK dated July 12th, 2021 of the General Department of Vietnam Customs regarding tax policy applicable to raw materials imported on the spot for manufacture of goods for export

The General Department of Vietnam Customs assumes that depending on each case, goods imported on the spot for manufacture of goods for export shall be exempt from import duty or not.

Accordingly, with regard to goods imported on the spot are goods bought by a domestic enterprise that signed a contract with an export processing enterprise (EPE) or goods delivered from the EPE under designation of the foreign trader, it is allowable to register the import declaration according to the customs procedure code E31 (import for export production) and shall be exempt from import duty, value added tax (VAT) according to Article 12 of Decree No. 134/2016/ND-CP .

However, in case the domestic enterprise received the goods from another domestic enterprise under designation of the foreign trader, it is required to open the import declaration according to the customs procedure code A11 (import for sale) or A12 (import for business and production operation) and pay import duty before request for duty refund (when the goods have been put into production of goods for export and the products have been exported) according to Article 36 of Decree No. 134/2016/ND-CP .