Guidelines on reimbursement of gifts attached to export products

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Imported products attached or joined with products for export must be registered in the form of manufacturing products for export (E62). Photo: T.Trang

In terms of tax policy, as stipulated in paragraph 7 of Article 16 of the Law on export & import duty, imported raw materials, supplies and components for production of export goods are exempt from import duty. Under the provisions of paragraph 1 of Article 12 of Decree 134/2016/ND-CP: Raw materials, supplies, components and semi-finished products, finished products imported to produce goods for export are exempt from import duty under the provisions Clause 7 of Article 16 of the Law on export & import duty, which include: finished imported products which are mounted and assembled to export products or packed as synchronized items with products for export.

Besides, under the provisions of paragraph 5 of article 114 point b.3 Circular 38/2015/TT-BTC regulations: Finished products imported by individuals and organizations to be attached or joined with products for export attract VAT. (Those which are packaged together with the export products, manufactured from raw imported materials or attached to export products manufactured from raw materials and supplies purchased in the country)

Along with that, as stated in the provisions of Clause 8 of Article 114 38/2015/TT-BTC: Goods imported to be re-exported to foreign owners or re-exported to third countries or re-exported to the non-tariff area ( for use in non-tariff areas or exports abroad, except for cases of specialized economic and trade areas, trade - industrial and other economic areas following specific guidance of the Ministry of Finance) are considered for reimbursement of import duty equivalent to the actual quantity of re-exported goods and subjected to non-payment of export duty. Under the above provisions, in dealing with the case of Yangming international shipping Co., the General Department of Vietnam Customs has delivered some guidelines as follows:

For declarations registered with the Customs authorities before the date 1-9-2016 and fully meeting the requirements specified in paragraph 5 of article 114 point b.3 Circular 38/2015/TT-BTC shall be considered for reimbursement when exporting products abroad. However, if the companies do not pay taxes within the 275 days grace period, they are free from paying taxes as regulated by the Customs authorities.

For declarations registered with the Customs authorities after the date 1-9-2016 and also meetingt he requirements specified in paragraph 7 of Article 16 of the Law export & import duty and paragraph 1 of Article 12 of Decree 134/2016/ND CP, the Customs authorities do not consider taxation of raw materials, materials for export production, companies do not pay tax revenue as prescribed by the Customs authorities.

Regarding Customs procedures, the General Administration of Customs said, the type of imported goods such as porcelain cups attaching to complete goods for export in particular, must be registered in the form of manufacturing products for export (E62) as defined in Article 54 of Circular 38/2015/TT-BTC.

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In detail, Yangming international shipping Ltd. Co. needs to provide a detailed written report to the Customs branches. After that, the General Administration of Customs shall consider and deliver guidelines for handling misstated type declarations forms.