Dispatch No. 5529/TCHQ-TXNK dated November 24th, 2021 of the General Department of Vietnam Customs regarding resolving issues regarding Decree No. 18/2021/ND-CP of the Government

This Dispatch attaches the schedule on problem resolutions of the General Department of Vietnam Customs regarding amendments to regulations on import and export duties at Decree No. 18/2021/ND-CP which takes effect from April 25th, 2021, including:

- Preferential import duty rate applicable to in-country imports

- Policies on tax exemption for goods imported for processing and processed exports

- How to calculate tax in case a domestic enterprise receives the products it hires an export-processing enterprise for reprocessing;

- Declaration of repurposing processed goods, residual materials and supplies retained in storage

- Declaration of tax on goods imported for processing and later used as gifts;

...

Accordingly, with regard to goods imported for processing, if the enterprise announces reprocessing facility/reprocessing contract after the prescribed time limit, it shall be still exempt from import duty and shall be only subject to penalties for administrative violations. In case the enterprise fails to announce, it shall be subject to penalties for administrative violations and shall not be exempt from import duty.

If goods which are imported for processing and export whose products are not exported or goods that are residual materials and supplies and retained in storage by the enterprise have not been repurposed, the enterprise is not required to produce a new customs declaration. The current regulations do not restrict the maximum storage time or the maximum time limit for declaration for repurposing.