Goods of domestic enterprises hiring other enterprises for export processing must be declared

Regarding BHFLEX VINA Co., Ltd.'s problems with declaring and paying tax on goods that domestic enterprises hire export processing enterprises to re-process, according to the General Department of Vietnam Customs, BHFLEX VINA CO., LTD is a domestic enterprise with 100% foreign investment capital.

If they hire an export processing enterprise, the company must carry out customs procedures following the procedures for ordering goods to be processed from abroad as prescribed in Article 67 of Circular 38/2015/TT-BTC that is amended and supplemented in Clause 44, Article 1 of Circular 39/2018/TT-BTC.

Ho Chi Minh City Customs checks imported processing materials. Photo: T.H

Regarding the declaration and payment of tax when importing goods, in case a domestic enterprise imports goods for export production or export processing, then delivers the imported and semi-finished goods which are manufactured from all imported goods to hire a processing enterprise to manufacture or process. When imported goods back into the country, the enterprise must declare and pay import tax on processed products as prescribed in Clause 2, Article 22 of Decree 134/2016/ND-CP.

Furthermore, the import tax calculation value is the processing rent, the value of raw materials used in the processing provided by the export processing enterprise and the adjustments (if any) as prescribed in Clause 3, Article 17 of Circular 39/2015/TT-BTC.

The value of supplies and raw materials that domestic enterprises send for processing at export processing enterprises would not be included in the taxable value.