Customs procedure code for import is A41 - Import for business; upon the export, it is B11 - Export for sale (if the exported goods are not derived from the import) or B13 - Export of imported goods.
In case the EPE has to re-export goods which are derived from the import under the import right, if such goods have not been used or undergone working or processing in Vietnam, import duty shall be refunded and export duty thereon shall be exempt according to Clause 1 Article 34 of Decree No. 134/2016/ND-CP.
According to opinions of the Department of Import and Export Duties, in case an enterprise does not directly manufacture the whole exports but it transfers part of or the whole imported goods to another enterprise for processing or manufacturing of one or some phases, it fails to meet the conditions for exemption from duty on such raw materials.
With regard to the raw materials which are processed/produced by hiring other enterprise, it is required to open a new customs declaration for change of use purpose and apply the goods management policy, tax policy at the time when the new customs declaration is registered (except for the case in which the policies have been fully implemented at the time when the initial customs declaration is registered).
In case the enterprise fail to open a customs declaration for change of use purpose, customs authority shall impose duty, calculate late payment interests and handle administrative violations (if any) with regard to such raw materials.
According to this Official letter, if goods exported on the spot are the goods manufactured by a domestic enterprise then they are sold to an export processing enterprise (EPE) (the EPE is not located in an export processing zone but it meets the regulations provided for non-tariff zones according to Clause 1 Article 4 of the Law on import and export duties), such goods shall be still entitled to apply the policies on exemption or refund of import duty on raw materials.
However, with regard to goods exported on the spot which are goods manufactured by a Vietnamese enterprise for a foreign trader but they are designated to be delivered in Vietnam, import duty on raw materials shall not be exempted or refunded.
Cases in which import duty on raw materials used for export production has been exempted but then the products are exported in the form of export on the spot under designation of foreign trader shall be imposed duty, subject to late payment interest and handling of administrative violations.
“Processing” under Article 178 of the Commercial Law means a commercial activity whereby a processor part or whole of raw materials and materials supplied by the hirer to perform one or several stages of the production process at the latter’s request and receives a payment in return.
“Temporary importation – re-exportation” as prescribed in Clause 1 Article 41 of the Law on foreign trade management means the temporary importation of goods for the purposes of ion maintenance, renting, lending or use these products for another purposes for a certain period of time and re-export these products from Vietnam.
- By the end of 2019, at least 80% of administrative procedures that have a large volume of transactions and have great effects on enterprises, organizations or people out of total administrative procedures for exports, imports and goods in transit; persons and means upon exit, entry and in transit, will be implemented through the national single-window system.
- Continue to hold the rank equal to the top four ASEAN countries in terms of the time of customs clearance and release of goods, people and facilities
- By 2020, fees and charges for implementation of all administrative procedures through the single-window system will be collected online
- Electronic evidencing documents (e.g. electronic licenses, electronic certificates and other equivalent electronic documents) issued through the national single-window system shall be used in carrying out other relevant administrative procedures
- Carry out the exchange and mutual recognition of commercial documents issued in an electronic form with ASEAN countries
- Complete the mechanism for management of electronic cross-border trades
- From 2018 onwards, continue to reduce and simplify the list of imported goods subject to pre-clearance specialized management and inspection; comprehensively reform specialized inspection over imported and exported goods, reduce the number of import shipments subject to the specialized border-gate inspection to less than 10%.
- In 2019, submit to the National Assembly the scheme for pilot implementation of the mechanism of the bond for customs clearance of a number of imports and exports subject to the specialized inspection
This Decision takes effect from the date of its singing.
These List are enclosed with this Decision
1. List of administrative procedures implemented through the national single-window system for the period 2018 – 2020;
2. List of legislative documents on specialized management and inspection to which amendments and supplements are required;
3. Groups of goods of ministries and sectoral administrations for which specialized inspection standards and regulations must be promulgated;
4. List of exports and imports subject to specialized management and inspection of which HS codes must be designated.
Accordingly, it is not allowed to calculate import duty on freight for transportation of goods paid for activities arisen after the goods have been imported to the first importing checkpoint or failing to concurrently meet the conditions specified in Clause 1 Article 13 of Circular No. 39/2015/TT-BTC.
Accordingly, in cases where exports and imports are suspected of any fraud on the customs valuation and posing high customs valuation risks and the customs declarants are judged or classified as enterprises that do not comply with the regulations, it is required to give explanations and proofs for the customs value declared within the duration of completion of customs procedures.
With regard to a shipment of which declared customs value is rejected, if the customs declarant makes supplementary declaration according to the value of customs authority within 05 days, the customs clearance shall be settled immediately. However, if the customs declarant does not make supplementary declaration or make supplementary declaration which does not conform to the requirements set out in the notification of customs valuation, the customs authority shall determine value regardless of whether the enterprise agrees or disagrees.
Currently, there have not been amended regulations on exemption from import duty on raw materials which are imported for manufacturing of domestic exports through outsourcing the processing service.
Import duty on raw materials used for manufacture of goods exported on the spot is not exempt. The exemption from import duty on raw materials is only given to goods exported abroad or exported to non-tariff zones.
Duration for storing goods in bonded warehouses shall be counted from the date on which goods are sent to the bonded warehouses. The extension of such time limit shall be counted according to time of each declaration for sending goods into the bonded warehouses.