Application of policies in case of a new declaration for goods transferred to domestic consumption
The General Department of Viet Nam Customs sent an official document to reply to the proposal of Thien Long Long Thanh Manufacturing & Trading Co., Ltd relating to obstacles of tax assessment based on the case of transferring goods for domestic consumption, particularly materials imported in the form of importation for export production and taxes paid at the time of registration of the initial declaration.
Customs authorities shall just consider special incentives on taxes of shipments with valid C/O. Picture: M.Phuong |
Regarding the basis of tax assessment, the General Department of Customs said, in Item 5, Article 25 of Government Decree No. 08/2015 / ND-CP guiding detailed regulations and measures to implement the Customs Law on Customs procedures, inspection, supervision and control: "... goods are raw materials and supplies imported for processing or manufacturing goods for export and importation and re-exportation of goods which had been released or cleared but the initial purpose of importation changed and the goods were moved to domestic consumption. For these cases, a new declaration must be made.
Management policies of imports and exports; tax policies of exports and imports were applied at the time of registration of the new Customs declaration, except for certain cases that fully implemented the management policy of exports and imports at the time of the initial declaration registration"
According to the above provision, if the Company had completed the tax liability for materials imported to produce goods for export at the time of registration of the initial declaration, when shifting for domestic consumption on new declarations and tax policies it would be implemented at the time of registration of the new Customs declarations.
Regarding the validity of C/O, the General Department of Customs said that because the content in the documents of the company did not specify under which Free Trade Agreements the C/O was issued, the General Department of Customs has no basis for detailed guidance.
However, in principle, under the provisions of the Free Trade Agreement which Vietnam is enforcing, Customs authorities will consider special incentives of taxes for shipments with valid C/O.
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