Can export processing enterprises liquidate assets in the form of scrap metal?

Businesses carrying out procedures at Nhon Trach Customs Branch Illustration photo: N.Hien

Dong Nai Customs Department said, based on Circular No. 04/2007/TT-BTM dated 4-4-2007 of the Ministry of Trade (now the Ministry of Industry and Trade), the Olympus Company is allowed to liquidate machinery into the domestic market due to transforming operational objectives.

In case of disposal and sale of scrap in the domestic market, the company must comply with the provisions of the Environmental Protection Law 2014, Decree No.38/2015/ND-CP of the Government dated 24-4-2015 on management of waste and scrap and guidance in Dispatches 18195/BTC-TCHQ dated 8-12-2015 of the Ministry of Finance. The Ministry of Finance issued guidance in Dispatches No.18195. Accordingly, procedures for liquidation sale in the domestic market stipulate that the company must comply with the provisions of Article 79 or Article 86 of Circular No. 38/2015-TT-BTC dated 25-3-2015 of the Ministry of Finance. Specifically, complying with Article 79 of Circular 38. To sell on the domestic market, processing enterprises must make contact with the local tax authorities to be granted one single VAT invoice. Export processing enterprises use that VAT invoice to sell machinery and equipment and means of transport identified by the amount of VAT invoiced on liquidation of machinery, equipment and means of transport, minus the VAT which was submitted at import on the equipment to be used as intended. To comply with Article 86 of Circular 38, enterprises must clearly state in the required documents the reasons for liquidation, liquidation form, measures of liquidation, and the number of goods liquidated, and send to the Customs Branch of Enterprise Management for registration processing in the form of declarations. Domestic enterprises will make import procedures and payment of taxes in accordance with regulations.

Commodities which are sold or liquidated into the domestic market, are not applied under the policies of management of imports and exports, except for goods for specialized inspections with some specific conditions and criteria, which must be permitted in writing to import goods by the competent authorities.