Customs responds to information about tax arrears of some enterprises in Binh Duong

VCN - The General Department of Vietnam Customs has recently responded to information in the press about difficulties of enterprises in Binh Duong province related to tax arrears.
A company was fined and collected tax arrears of nearly VND 50 billion A company was fined and collected tax arrears of nearly VND 50 billion
Make false declaration for tax fraud of billion VND Make false declaration for tax fraud of billion VND
What is included in the tax relief dossiers for each case? What is included in the tax relief dossiers for each case?
2141 2217 5 2939 img 4552 baohaiquan
Binh Duong Customs Department’s officers instruct enterprises to register customs declarations. Photo: T.D.

It is known that Chutex International Co., Ltd., PungKook Saigon II Co., Ltd (hereinafter referred to as enterprises) signed a processing contract with a foreign trader but hired an enterprise in the non-tariff area to process products (outsourcing service). In which, these enterprises provide all raw materials and components to the outsourcing enterprise in the non-tariff area for processing and then receive processed goods for export abroad.

The above enterprises petitioned against the tax arrears by the Customs for goodsprocessed by the outsourcing enterprise in the non-tariff area upon exporting to the domestic market.

Facing the problems of the enterprises, the General Department of Customs said that the current tax policy for goods manufactured, processed, recycled and assembled in the non-tariff area has been clearly specified in the Law on Export and Import Duties No. 107/2016 / QH13, Decree 134/2016 / ND-CP.

Specifically, in Clause 1, Article 4 of the Law on Export and Import Duties No. 107/2016 / QH13,the non-tariff area means an economic zone located within Vietnam’s territory, established in accordance with the 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 free trade zone and the outside area is considered exportation and importation.

Also, Clause 8, Article 16 of the Law on Export and Import No. 107/2016 / QH13 stipulates that if products produced, processed, recycled and assembled in the non-tariff area do not use imported raw materials and components, they will be exempt from import duty upon importing to the domestic market.

Article 22 of Decree No. 134/2016 / ND-CP of the Government detailing a number of articles and measures to implement the Law on Export and Import Duties stipulates: “1. Goods manufactured, processed, recycled and assembled in a non-tariff area without using imported raw materials and components importedare exempt from import duty when they are imported to the domestic market as prescribed in Clause 8, Article 16 of the Law on Export and Export Duties.

2. Where goods manufactured, processed, recycled or assembled in the non-tariff area use imported raw materials or components, they shall be dutiable when they are imported into the domestic market according to the duty rates and their dutiable values”.

According to the above regulations, in order to deal with problems of the enterprises, the General Department of Customs has issued an official dispatch No. 5864 / TCHQ-TXNK dated September 4, 2020 instructing the provincial and municipal customs departments to inspect the import and export dossiers, accounting books, payment documents and relevant documents for the case where the enterprises sign processing contracts with foreign traders but hire anotherenterprise in the non-tariff area to process (outsourcing) and to handle as follows:

If the outsourcing enterprises in the non-tariff area do not use raw materials and components imported from abroad (domestic enterprises provide all raw materials and components to the outsourcing enterprises in the non-tariff area), the processed goods will be exempt from import duty when they are imported to the domestic market according to the provisions of Clause 8, Article 16 of the Law on Export and Import Duties No. 107/2016 / QH13, Clause 1 of Article 22 of Decree No. 134/2016 / ND-CP and Official Dispatch No. 6519 / BTC-TCHQ dated May 19, 2017 by the Ministry of Finance.

If the outsourcing enterprises in the non-tariff area use raw materials and components imported from abroad, the processed goods, must declare and pay tax when they are imported into the domestic market, according to the provisions of Clause 2, Article 22 of Decree 134/2016 / ND-CP and Point 2 of Official Dispatch No. 3018 / TCHQ-TXNK dated May 11, 2020 by the General Department of Customs.

Thus, in the case where an enterprise signs a processing contract with a foreign trader but hires an enterprise in a non-tariff zone to process products (outsourcing) and that enterprise provides all raw materials and components to the enterprise in the non-tariff area for processing and then receives the processed goods for export abroad is exempt from import duty.

HCM City Tax Department: Collecting tax arrears and reducing losses of more than VND 2,000 billion via inspection and checking HCM City Tax Department: Collecting tax arrears and reducing losses of more than VND 2,000 billion via inspection and checking

VCN – Through inspection and checking in the first two months of 2020, HCM City Tax Department ...

The General Department of Customs recommends enterprises to contact the customs office where import procedures are carried out to enjoy tax exemption according to the above guidance.

By Nu Bui/ Huyen Trang

Related News

Many "big enterprises" pay taxes after enforcement

Many "big enterprises" pay taxes after enforcement

VCN - Many enterprises with large tax debts ranging from several billion to tens of billions of VND have paid taxes to the state budget after being forced by the Customs.
Kien Giang Customs’ revenue reaches over 190% of target

Kien Giang Customs’ revenue reaches over 190% of target

VCN – As of October 15, Kien Giang Customs Department collected VND 116.34 billion, reaching 193.89% of the target, the department reports.
Revise regulations on implementing administrative procedures under the National Single Window

Revise regulations on implementing administrative procedures under the National Single Window

VCN - On October 29, 2024, Deputy Director General of the General Department of Vietnam Customs Au Anh Tuan chaired a meeting to discuss, exchange and develop a plan to amend Decree 85/2019/ND-CP regulating the implementation of administrative procedures under the National Single Window, ASEAN Single Window and specialized inspection of imports and exports.

Latest News

Director of Dong Nai Customs engages monthly with enterprises

Director of Dong Nai Customs engages monthly with enterprises

VCN - On November 1, Dong Nai Customs held an online Customs-Business Dialogue Conference attended by representatives from the Taiwanese (China), Korean, Japanese, and European business associations in Vietnam, alongside 83 import-export enterprises operating in Dong Nai province.
Ha Nam Ninh Customs gathers feedback from the business community

Ha Nam Ninh Customs gathers feedback from the business community

VCN – According to Ha Nam Ninh Customs Department, considering enterprises as cooperative partners not only facilitates import and export activities but also contributes to improving the investment and business environment, meeting integration requirements.
Facilitating trade and bolstering customs enforcement at Vinh Xuong border crossing

Facilitating trade and bolstering customs enforcement at Vinh Xuong border crossing

VCN - With the characteristics of managing international border gates with both waterways and roads, Vinh Xuong International Border Gate Customs Branch (An Giang Customs Department) always has flexible solutions to ensure both convenience and strict control of import and export goods.
3 items have a big impact on the budget revenue of Ho Chi Minh City Customs

3 items have a big impact on the budget revenue of Ho Chi Minh City Customs

VCN - Automobiles, petroleum, and steel are three items that account for nearly 35% of the total state budget revenue of Ho Chi Minh City Customs Department. Therefore, fluctuations in these revenue sources will greatly impact the state budget revenue of the entire Department.

More News

Quang Ninh Customs collects 85.75% of the budget revenue through the seaport area

Quang Ninh Customs collects 85.75% of the budget revenue through the seaport area

VCN - In the first 9 months of 2024, Quang Ninh Customs Department collected VND 13,885.23 billion in revenue collection, reaching 111.08% of the assigned estimate (VND 12,500 billion), reaching 106.81% of the target assigned by Quang Ninh province (VND 13,000 billion), an increase of 8.67% over the same period in 2023
Regulating goods across Huu Nghi International Border Gate during peak times

Regulating goods across Huu Nghi International Border Gate during peak times

VCN – In order to reduce the pressure on customs clearance of import and export goods for the international border gate pair during peak times, the management agency of Lang Son (Vietnam) has just discussed with the management authority of Pingxiang (China) to strengthen coordination in regulating the means of transporting goods of enterprises on both sides.
Quang Ninh Customs seeks solutions to promote import and export

Quang Ninh Customs seeks solutions to promote import and export

VCN - Quang Ninh Customs Department has made efforts to synchronously deploy solutions to accompany, support and resolve difficulties for businesses, contributing to improving import and export activities through the area.
Businesses get a fair hearing under Customs

Businesses get a fair hearing under Customs' new 'three no' rule

VCN - The General Department of Vietnam Customs requires units to implement the 3 no principles: "don't say no, don't say difficult, and don't say yes but don't do it" when businesses have recommendations and proposals.
Khanh Hoa Customs reaches revenue target 1 quarter early

Khanh Hoa Customs reaches revenue target 1 quarter early

VCN - Many key import items increased sharply, along with efforts in trade facilitation, tax debt collection, so in just 9 months of 2024, Khanh Hoa Customs Department completed the state budget revenue target.
WCO Permanent Technical Committee Meeting in Belgium: The managerial mark of the Vietnamese customs representative

WCO Permanent Technical Committee Meeting in Belgium: The managerial mark of the Vietnamese customs representative

VCN - For 3 days (from 23-25/10/2024), at the headquarters of the World Customs Organization (WCO) in Brussels (Belgium), the 245th/246th meeting of the Permanent Technical Committee (PTC) was successfully held under the chairmanship of Ms. Nguyen Thi Vinh Hoai, Counselor, Embassy of Vietnam in Belgium, representative of Vietnam Customs, Chairwoman of PTC.
Launch of the “Proud of 80 years of construction and development of Vietnam Customs” contest

Launch of the “Proud of 80 years of construction and development of Vietnam Customs” contest

VCN - Towards the 80th anniversary of Vietnam Customs' tradition (September 10, 1945 - September 10, 2025), the General Department of Vietnam Customs (GDVC) launches the “Proud of 80 years of construction and development of Vietnam Customs” contest.
Cat Lai Port sees over 1,000 export shipments cleared by customs each day

Cat Lai Port sees over 1,000 export shipments cleared by customs each day

VCN - The volume of goods exported through Cat Lai port is showing signs of increasing sharply in the last months of 2024.
Quang Ninh Customs: Innovation in developing Customs-Business partnership

Quang Ninh Customs: Innovation in developing Customs-Business partnership

VCN - Quang Ninh Customs Department is determined to improve the quality of Customs-Business partnership, with practical actions in supporting and accompanying businesses.
Read More

Your care

Latest Most read
Director of Dong Nai Customs engages monthly with enterprises

Director of Dong Nai Customs engages monthly with enterprises

Dong Nai Customs held an online Customs-Business Dialogue Conference attended by representatives from the Taiwanese (China), Korean, Japanese, and European business associations in Vietnam on November 1
Ha Nam Ninh Customs gathers feedback from the business community

Ha Nam Ninh Customs gathers feedback from the business community

VCN - Ha Nam Ninh Customs Department has provided many policies and solutions to create favorable conditions for enterprises towards the goal of building Digital Customs, Smart Customs, thereby reducing customs clearance time, saving costs for enterprises
Facilitating trade and bolstering customs enforcement at Vinh Xuong border crossing

Facilitating trade and bolstering customs enforcement at Vinh Xuong border crossing

Vinh Xuong International Border Gate Customs Branch (An Giang Customs Department) always has flexible solutions to ensure both convenience and strict control of import and export goods.
3 items have a big impact on the budget revenue of Ho Chi Minh City Customs

3 items have a big impact on the budget revenue of Ho Chi Minh City Customs

VCN - Automobiles, petroleum, and steel are three items that account for nearly 35% of the total state budget revenue of Ho Chi Minh City Customs Department. Therefore, fluctuations in these revenue sources will greatly impact the state budget revenue of
Quang Ninh Customs collects 85.75% of the budget revenue through the seaport area

Quang Ninh Customs collects 85.75% of the budget revenue through the seaport area

In the first 9 months of 2024, Quang Ninh Customs Department collected VND 13,885.23 billion in revenue collection
Mobile Version