Export production goods will not eligible for tax exemption if they are in-country imported between two domestic enterprises

Pouchen Group proposed to amend import duty policy for in-country imports for export production as prescribed in Clause 6, Article 1, Decree 18/2021/NĐ-CP, similar to the tax policy applied to in-country imports to process.

Production of high-tech goods in export processing enterprises. Photo: H.Nụ

Pouchen Group said that the regulation on tax policy for export production goods as stated in Clause 6, Articles 1, Decree 18/2021/NĐ-CP is not appropriate with provisions in Clause 7, Article 16 of Law on Import and Export Duties.

Regarding this issue, according to the General Department of Vietnam Customs, Clause 3, Article 2 of the Law on Import and Export Duties stipulated that “in-country imports and exports” are subject to import and export duties.

Clause 7, Article 16 of the Law on Import and Export Duties also states that “raw materials, supplies and components importing for export production” are subject to tax exemption.

With the current regulations, the General Department of Vietnam Customs said article 16 of the Law on Import and Export Duties only stipulates that tax exemption will be applied for raw materials, supplies, and components imported for export production. It does not regulate that export production goods imported in-country between two domestic enterprises are subject to tax exemption.

The competence for granting regulations on tax exemption as stipulated in Clause 24, Article 16 of Law on Import and Export Duties is assigned to the Government by the National Assembly in order to regulate cases of tax exemption in detail.

Therefore, the regulation in Clause 6, Articles 1, Decree 18/2021/NĐ-CP is appropriate to the provisions in Clause 7, Articles 16 of Law on Import and Export Duties and appropriate to the competence of the Government.