Customs procedures and tax policies for exported goods designated for delivery

VCN - In cases where export processing enterprises sell goods to a foreign company but deliver the goods to another export processing enterprise as designated by the foreign company, how to carry out customs procedures and tax policies? This question has been answered clearly by the General Department of Customs.
customs procedures and tax policies for exported goods designated for delivery HCM City: More than 42,000 enterprises implement procedures via HCM City ports
customs procedures and tax policies for exported goods designated for delivery US - funded program launched to improve Vietnam’s customs procedures
customs procedures and tax policies for exported goods designated for delivery New points about list of import goods must be carried out procedures at entry gate
customs procedures and tax policies for exported goods designated for delivery
Inspecting goods at Thai Nguyen Customs Branch, Bac Ninh Customs Department. Photo: T.Trang

About customs procedures

The General Department of Customs said that Clause 1, Article 15 of Decree No. 69/2018 / ND-CP dated May 15, 2018 of the Government stipulates that except for goods prohibited from export or import; goods suspended from export or import, a trader may temporarily import goods to Vietnam under a contract concluded with a foreign party for the purposes of the warranty and maintenance, lease, borrowing, use or other purposes for a specified period and then re-export them out of Vietnam.

Article 41 of Decree No. 69/2018 / ND-CP specifies: The processor is entitled to lease or borrow machinery of the ordering party to perform the processing contract. The leasing, borrowing or giving of such machinery and equipment shall be agreed in the processing contract.

Besides, Article 50 of Decree No. 08/2015 / ND-CP dated January 21, 2015 (amended and supplemented in Clause 23, Article 1 of Decree No. 59/2018 / ND-CP dated April 20, 2018 ) stipulates Customs procedures for temporary import – re-export, temporary export – re-import of equipment, machinery, moulds or models for production, construction, project execution or experimentation and Clause 2 Article 61 Circular No. 38/2015 / TT-BTC dated March 25, 2015 (amended and supplemented in Clause 40 Article 1 of Circular 39/2015 / TT-BTC dated April 20, 2018) of the Ministry of Finance stipulate customs procedures for hired and borrowed machinery and equipment serving processing contracts.

According to the General Department of Customs, for hired or borrowed goods as agreed in the processing contract, the enterprise designated to receive goods shall carry out the procedures for temporary import and re-export prescribed in clause 2 of Article 61 of Circular 38/2015/TT-BTC (amended and supplemented at clause 40, Article 1 of Circular 39/2015/TT-BTC).

In the case of goods being a model of temporary import for re-export under a borrowing contract, the enterprise designated to receive goods shall base it on actual goods in accordance with the provisions of Article 15 of Decree No. 69/2018 / ND-CP, customs procedures according to Article 50 of Decree No. 08/2015 / ND-CP (amended and supplemented in Clause 23, Article 1 of Government’s Decree No. 59/2018 / ND-CP).

About tax policy

Guiding tax policy in this case, the General Department of Customs analysed, according to Clause 1, Article 4 of the Law on Import and Export Duties No. 107/2016 / QH13, non-tariff area means an economic zone located within Vietnam’s territory, established in accordance with law, having a definite geographic boundary, and separated from the outer area by hard fences in order to facilitate customs inspection and customs control by the customs authority and relevant agencies with regard to exports and imports, inbound and outbound vehicles and passengers; the trading relationship between the non-tariff area and the outside area is considered exportation and importation.

Specifically, Point c, Clause 4, Article 2 of the Law on Import and Export Duties No. 107/2016 / QH13, clarifies that goods exported from a non-tariff area to abroad; goods imported from abroad to a non-tariff area and used within such non-tariff area and goods transported from one non-tariff area to another are not subject to import or export duty

While Clause 2, Article 2 of Decree No. 134/2016 / ND-CP regulates that goods exported from the domestic market into export processing enterprises, export processing zones, tax-suspension warehouses, bonded warehouses and other non-tariff areas defined in Clause 1 Article 4 of the Law on Import and Export duties; goods imported from export processing enterprises, export processing zones, tax-suspension warehouses, bonded warehouses and other non-tariff areas defined in Clause 1 Article 4 of the Law on Export and import duties to the domestic market, are subject to import and export duties.

Pursuant to Clause 9, Article 16 of the Law on Import and Export Duties No. 107/2016 / QH13, machinery and equipment, tools temporarily imported for re-export or temporarily exported for re-import to be used for a certain period of time or serve overseas processing, except for machinery, equipment, tools, vehicles permitted to be temporarily imported for re-export to serve investment projects, construction, installation, or manufacture, are subject to import and export tax exemption.

With the above regulations, the General Department of Customs said, in the case where an export processing enterprise sells goods to a foreign company but delivers those goods to another export processing enterprise as designated by the foreign company, if the enterprise designated to receive meets provisions of Clause 1, Article 4 of the Law Import and Export Duties No. 107/2016 / QH13, such goods will not be subject to import tax.

If the enterprise designated to receive goods is a domestic enterprise signing a processing contract with the foreign company and goods is a model temporarily imported for reported as agreed in the processing contract, such goods shall be exempt from import tax according to the provisions of Clause 9 Article 16 Law on Import and Export Duties No. 107/2016 / QH13.

customs procedures and tax policies for exported goods designated for delivery Discussion "Tax policies and customs procedures when implementing CPTPP"

VCN - To discusses and provide more information on tax policies and customs procedures when implementing the ...

If the enterprise designated to receive goods is a domestic enterprise but not signing a processing contract with the foreign company and goods is a model under the borrowing contract (without payment), such goods shall not be exempt from import tax according to the provisions of Clause. 9 Article 16 of Law on Import and Export Duties No. 107/2016 / QH13, the enterprise designated to receive goods must declare and pay import tax according to regulations and shall be refunded the paid import tax. The refund tax will be determinate on the basis of remaining use value of the goods upon reporting according to point đ, clause 1 of Article 19 of Law on Import and Export Duties No. 107/2016/QH13.

By T. Trang/ Huyen Trang

Related News

Hai Phong Customs sets out 15 tasks to achieve the revenue target of VND 72,000 billion

Hai Phong Customs sets out 15 tasks to achieve the revenue target of VND 72,000 billion

VCN – Hai Phong Customs Department has issued Directive No. 624/CT-HQHP dated January 21, 2025 on drastically implementing solutions to facilitate trade, improve the effectiveness of state management, and strive to achieve the revenue target of 2025.
Over 1,500 customs declarations processed by Hai Phong Customs during Tet

Over 1,500 customs declarations processed by Hai Phong Customs during Tet

VCN - Hai Phong Customs Department processed 1,547 customs declarations during the Tet holiday period
Numerous FDI enterprises face suspension of customs procedures due to tax debt

Numerous FDI enterprises face suspension of customs procedures due to tax debt

VCN - Several foreign direct investment (FDI) enterprises in HCM City have been subjected to coercive measures, including the suspension of customs procedures, for overdue import-export and domestic tax liabilities.
Review of VAT exemptions for imported machinery and equipment

Review of VAT exemptions for imported machinery and equipment

VCN - The General Department of Vietnam Customs has directed provincial and municipal customs departments to review, inspect, and address issues related to the implementation of VAT exemption policies for specialized machinery and equipment used in agricultural production.

Latest News

Consulting on customs control for e-commerce imports and exports

Consulting on customs control for e-commerce imports and exports

VCN- The General Department of Vietnam Customs (GDVC) consults widely on the draft Decree regulating customs control for e-commerce imports and exports.
Flexible tax policy to propel Việt Nam’s economic growth in 2025

Flexible tax policy to propel Việt Nam’s economic growth in 2025

The Vietnamese government has extended and enhanced tax relief for 2025, offering reductions and deferrals to boost economic growth.
Brandnew e-commerce law to address policy gaps

Brandnew e-commerce law to address policy gaps

The proposed law seeks to address gaps in existing regulations and keep pace with technological advancements and evolving business models.
From January 1, 2025: 13 product codes increase export tax to 20%

From January 1, 2025: 13 product codes increase export tax to 20%

VCN - According to the Export Tariff (XK) issued with Decree 26/2023/ND-CP, from January 1, 2025, there will be 13 commodity codes with an export tax rate of 20%.

More News

Export tax rates of 13 commodity codes to increase to 20% from January 1, 2025

Export tax rates of 13 commodity codes to increase to 20% from January 1, 2025

VCN – According to the Export Tariff issued with Decree 26/2023/ND-CP, the tax rates of 13 commodity codes will increase to 20% from January 1, 2025.
Proposal to reduce 30% of land rent in 2024

Proposal to reduce 30% of land rent in 2024

VCN - The Ministry of Finance has finalized a draft Government Decree outlining the reduction of land rent for 2024. The draft is currently under review by the Ministry of Justice before being submitted to the Government for approval.
Resolve problems related to tax procedures and policies for businesses

Resolve problems related to tax procedures and policies for businesses

VCN - Immediately after the end of the Dialogue Conference between the Ministry of Finance and enterprises on tax and customs policies and administrative procedures in 2024, the General Department of Customs proactively removed obstacles related to tax procedures and policies for the business community.
New regulations on procurement, exploitation, and leasing of public assets

New regulations on procurement, exploitation, and leasing of public assets

VCN - Decree No. 114/2024/ND-CP, which amends and supplements certain articles of Decree No. 151/2017/ND-CP detailing the implementation of the Law on Management and Use of Public Assets, introduces significant changes. These include updates on authority, methods of asset exploitation in agencies and units, plans for leasing, joint ventures, and partnerships in public service units, as well as centralized procurement procedures.
Actively listening to the voice of the business community

Actively listening to the voice of the business community

VCN - Recognizing the Customs-business relationship as a long-term partnership, the Customs authority has organized hundreds of dialogues with businesses since the beginning of the year. These efforts aim to promptly address challenges, resolve obstacles, and facilitate import-export activities. Such meetings offer an opportunity for the Customs authority and the business community to exchange, share insights, and find solutions to enhance operational quality and efficiency.
Step up negotiations on customs commitments within the FTA framework

Step up negotiations on customs commitments within the FTA framework

VCN - Promoting negotiations on customs commitments within the framework of free trade agreements (FTAs) plays an important role in facilitating import and export activities. These commitments not only help optimize the customs clearance process but also minimize costs and risks for businesses, opening up great opportunities for Vietnamese goods to access deeper into the international market.
Proposal to amend regulations on goods circulation

Proposal to amend regulations on goods circulation

VCN - To perfect the policy on customs procedures, inspection and supervision, enterprises and associations have contributed many ideas from practical activities. Thereby, the Drafting Committee (General Department of Customs) has more perspectives to build policies to meet the goal of facilitating trade and ensuring state management of customs.
Customs tightens oversight on e-commerce imports

Customs tightens oversight on e-commerce imports

VCN - The General Department of Vietnam Customs has issued new directives to enhance the management of imported goods transacted through e-commerce platforms, addressing ambiguities and ensuring consistent enforcement across provincial and municipal customs departments.
Businesses anticipate new policies on customs procedures and supervision

Businesses anticipate new policies on customs procedures and supervision

VCN - With this year’s import-export turnover estimated at nearly US$800 billion and forecasting to surpass this milestone next year, the business community holds high expectations for upcoming amendments and supplements to customs management, procedures, and supervision policies. These changes are expected not only to facilitate trade but also to enhance state management efficiency and support economic development.
Read More

Your care

Latest Most read
Consulting on customs control for e-commerce imports and exports

Consulting on customs control for e-commerce imports and exports

VCN - The Decree provides regulations on inspection and specialized management for e-commerce imports and exports; electronic customs data processing system for e-commerce imports and exports.
Flexible tax policy to propel Việt Nam’s economic growth in 2025

Flexible tax policy to propel Việt Nam’s economic growth in 2025

The Vietnamese government has extended and enhanced tax relief for 2025, offering reductions and deferrals to boost economic growth.
Brandnew e-commerce law to address policy gaps

Brandnew e-commerce law to address policy gaps

The proposed law seeks to address gaps in existing regulations and keep pace with technological advancements and evolving business models.
From January 1, 2025: 13 product codes increase export tax to 20%

From January 1, 2025: 13 product codes increase export tax to 20%

VCN - According to the Export Tariff (XK) issued with Decree 26/2023/ND-CP, from January 1, 2025, there will be 13 commodity codes with an export tax rate of 20%.
Export tax rates of 13 commodity codes to increase to 20% from January 1, 2025

Export tax rates of 13 commodity codes to increase to 20% from January 1, 2025

VCN - 13 commodity codes with export tax rates increased to 20% from January 2025 include:
Mobile Version