Are goods imported on-spot for export production eligible for tax refund?

Accordingly, at Point d, Clause 1, Article 19 of the Law on Export and Import Duties, it is stipulated that a duty payer has paid a duty for goods imported for production and business activities but later uses goods for export production and exports such products, duty payer shall be refunded.

In addition, at Point h, Clause 2, Article 12 and Clauses 1, 2, 3, Article 36 of Decree 134/2016/ND-CP stipulate the basis for determining goods subjected to tax exemption as well as the taxpayer who has paid the export duty and imported goods are refunded tax...

Customs officers of Binh Duong port Customs Branch (Binh Duong Customs Department) supervise goods. Photo: T.D

Based on current regulations, according to the General Department of Vietnam Customs, in cases where enterprises importing raw materials for production and business have paid taxes on these goods, then put them into production for export and have exported the products out of Vietnam territory or entering a non-tariff zone will be refunded the paid import tax.

The Law on Export and Import Duties and its guiding documents do not have regulations on import tax refunds for cases where enterprises import raw materials, supplies, and components on the spot and then transfer them to other enterprises to process, complete, and receive back the finished product for export abroad.

In case, businesses need to explain the law, and propose amendments and supplements to legal documents, Binh Duong Customs Department is requested to guide businesses to send a written proposal to the Department of Tax and Fees Policy Management and Supervision (Ministry of Finance) for guidance and answers according to authority.