Importers are entitled to tax refund when re-exporting unprocessed or processed goods

VCN - The customs authority shall inspect 100% of re-exported goods and determine that if re-exported goods are previously imported goods, unused, processed and re-exported by the importers, the importers will receive a refund of the paid import tax.
Strengthen the review of dossiers, cases of tax refund, handling of overpaid tax Strengthen the review of dossiers, cases of tax refund, handling of overpaid tax
US importers interested in made-in-Vietnam furniture US importers interested in made-in-Vietnam furniture
Pig importers investigated for evading quarantine Pig importers investigated for evading quarantine
An officer of the Customs Branch of Hoa Khanh - Lien Chieu Industrial Park guides customs procedures for businesses.
An officer of the Customs Branch of Hoa Khanh - Lien Chieu Industrial Park guides customs procedures for businesses.

CJ Vina Agri Co., Ltd. proposed the Customs agency provide specific guidance on tax refunds for imported goods of the company.

In this regard, according to the General Department of Customs, Clause 3, Article 2 of the Law on Import and Export Duties stipulates: "On-spot import and export goods and import-export goods by enterprises exercising their right to export, import, or distribute the goods are subject to import and export duties”.

Also in Point c, Clause 1, Clause 2, Article 19 of the Law on Import and Export Duties, any taxpayer who has paid import duty but the imports have to be re-exported shall receive a refund of import duty and does not have to pay export duty.

Paid import duties on the following imports that have to be re-exported shall be refunded and export duties thereon shall be canceled: Imports that have to be re-exported and returned to their owners; Imports that have to be exported to a foreign country or exported into a free trade zone for consumption therein. The re-export of goods must be done by the initial importer or a person authorized by the initial importer. The taxpayer shall be responsible for accurately and trustfully declaring re-exported goods that are previously imported goods, information about contract number, date, and buyer. The customs authority shall check the declared information and state the inspection results to serve the tax refund settlement.

Articles 3 and 7 of Decree 09/2018/ND-CP also clearly stipulate the right to import and export; carry out the trading of goods and activities directly related to the trading of goods.

Accordingly, the General Department of Customs said that CJ Vina Agri Co., Ltd. registers an export declaration B11, the declaration does not show information on the import declaration of previous imports, the inspection channelization for re-exported goods under the customs regime B11 is carried out according to the principle of risk management.

Therefore, the customs authority does not have enough grounds to consider tax refund under the provisions of the Law on Import and Export Duties and Decree 134/2016/ND-CP for imported goods that are re-exported according to the declarations of customs regime B11.

Developing a new tax refund process Developing a new tax refund process

VCN – The General Department of Taxation held a virtual conference to collect opinions on a draft ...

However, according to the General Department of Customs, if CJ Vina Agri Co., Ltd. registers an export declaration with the customs regime B13, the taxpayer declared on the customs declaration that the re-exported goods are imported goods belonging to the previous import declaration, the customs authority performed channelization, physical inspection of 100% of the consignment and has a basis to determine that the re-exported goods are previously imported goods, unused or processed goods and re-exported by the initial importer according to the provisions of Article 19 of the Law on Import and Export Duties and Article 34 of Decree 134/2016/ND-CP, the company will receive the paid import tax.
By Nu Bui/ Huyen Trang

Related News

Preliminary assessment of Vietnam international merchandise trade performance in the first 9 months of 2024

Preliminary assessment of Vietnam international merchandise trade performance in the first 9 months of 2024

Highlights 1. According to trade statistics of Vietnam Customs, in September of 2024, a 8.0% downwards in total external merchandise turnover of Vietnam was recorded as compared to the result of August 2024. Exports went down 9.8 %, to USD 34.08 billion and imports decreased 5.9%, to USD 31.76 billion in terms of month-on-month basis. As a result, there was a USD 2.32 billion surplus in Vietnam’s trade balance in this month.
Preliminary assessment of Vietnam international merchandise trade performance in the second half of September, 2024

Preliminary assessment of Vietnam international merchandise trade performance in the second half of September, 2024

The Vietnam Customs Statistics announced that in the second half of September, 2024 the total Vietnam’s exports of US dollars 19.71 billion and imports of nearly US dollars 16.74 billion resulted in a trade surplus of US dollars 2.97 billion.

Latest News

Hanoi Customs resolves tax policy queries for enterprises

Hanoi Customs resolves tax policy queries for enterprises

VCN - Queries regarding customs consultation procedures and tax refunds due to price reduction clauses were addressed by the Hanoi Customs Department, providing clarity for businesses.
Regularly check tax obligations to avoid temporary exit suspension

Regularly check tax obligations to avoid temporary exit suspension

VCN - In order to avoid the situation of arriving at the airport or border gate and only finding out that you owe taxes and being temporarily suspended from leaving the country by the Tax Authority, the Tax Authority recommends that taxpayers regularly look up their tax obligations to have a plan to pay taxes on time, not letting the tax debt situation drag on and drag on.
Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

VCN - In June 2005, the World Customs Organization (WCO) developed and adopted the SAFE Framework of Standards to Secure and Facilitate Global Trade. The SAFE Framework plays a crucial role in encouraging countries to modernize, enhance security, and facilitate trade within global supply chain management and Authorized Economic Operator (AEO) programs. This approach introduces a comprehensive method for cross-border goods management and promotes closer cooperation between Customs, businesses, and stakeholders. The Customs News presents a two-part series on implementing the SAFE Framework in Vietnam.
Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

VCN - In the draft revised Law on Tax Administration, the Ministry of Finance proposed amending regulations on measures to enforce administrative decisions on tax administration to remove obstacles in policy mechanism and improve the effectiveness of tax administration.

More News

Many shortcomings in process and manual book on handling administrative violations

Many shortcomings in process and manual book on handling administrative violations

VCN - Legal policies on handling administrative violations have effectively supported the technical work of the Customs sector. However, some legal bases and regulations have been amended, replaced, and supplemented, which have limited the efficiency of handling administrative violations of the customs sector.
Implementing the SAFE Framework in Vietnam: Lessons from practice

Implementing the SAFE Framework in Vietnam: Lessons from practice

VCN - The Framework of Standards to Secure and Facilitate Global Trade (SAFE Framework) is a strategic international instrument introduced by the World Customs Organization (WCO) to enhance security and trade facilitation in global supply chains. It contributes significantly to the economic development of the 21st century.
Implementing the SAFE Framework in Vietnam: Solutions and Recommendations

Implementing the SAFE Framework in Vietnam: Solutions and Recommendations

VCN - Recognizing the significance, impact, and benefits of the SAFE Framework in customs modernization and reform, Vietnam Customs is advancing the implementation of SAFE. This involves both capacity building and phased deployment aligned with Vietnam Customs’ development strategy and practical needs.
Abolishing regulations on tax exemption for small-value imported goods must comply with international practices

Abolishing regulations on tax exemption for small-value imported goods must comply with international practices

VCN - The Ministry of Finance said that the abolition of regulations on tax exemption for imported goods valued at less than VND1 million must comply with international practices in the context of the growing trend of cross-border e-commerce activities.
Policy adaptation and acceleration of digital transformation in tax and customs management

Policy adaptation and acceleration of digital transformation in tax and customs management

VCN - In order to contribute to economic growth, tax, customs and logistics management policies need to ensure high adaptability, stability and predictability so that they require little amendment or supplementation.
Implement regulations on special preferential import tariffs under VIFTA

Implement regulations on special preferential import tariffs under VIFTA

VCN - The General Department of Vietnam Customs (GDVC) requests provincial and municipal customs departments to implement Vietnam's special preferential import tariffs under the Free Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the State of Israel for the period 2024-2027 (referred to as the VIFTA) from October 15, 2024.
Perfecting tax policy for goods traded via e-commerce

Perfecting tax policy for goods traded via e-commerce

VCN - In order to ensure the goal of developing e-commerce activities without causing loss of state budget revenue, the Customs authority is actively coordinating with policy advisory units of the Ministry of Finance to research and review regulations on tax exemption for import and export goods transacted via e-commerce.
Are belongings of foreigners on business trip to Vietnam exempt from tax?

Are belongings of foreigners on business trip to Vietnam exempt from tax?

VCN - That is the question of Nhat Viet Relocation Company Limited, which has just been answered by the Customs Department and given specific instructions on providing a confirmation of residence of foreigners on business trip to Vietnam to follow tax exemption procedures for movable assets.
Amending regulations on enforcement measures in tax administration

Amending regulations on enforcement measures in tax administration

VCN - In draft of 1 law amending 7 laws in the financial sector, the Ministry of Finance proposed to amend the regulations on enforcement measures in tax administration in the Law on Tax Administration.
Read More

Your care

Latest Most read
Hanoi Customs resolves tax policy queries for enterprises

Hanoi Customs resolves tax policy queries for enterprises

Queries regarding customs consultation procedures and tax refunds due to price reduction clauses were addressed by the Hanoi Customs Department, providing clarity for businesses.
Regularly check tax obligations to avoid temporary exit suspension

Regularly check tax obligations to avoid temporary exit suspension

Tax Authority recommends that taxpayers regularly look up their tax obligations to have a plan to pay taxes on time, not letting the tax debt situation drag on and drag on.
Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

The SAFE Framework plays a crucial role in encouraging countries to modernize, enhance security, and facilitate trade within global supply chain management and Authorized Economic Operator (AEO) programs
Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

VCN - In the draft revised Law on Tax Administration, the Ministry of Finance proposed amending regulations on measures to enforce administrative decisions on tax administration to remove obstacles in policy mechanism and improve the effectiveness of tax
Many shortcomings in process and manual book on handling administrative violations

Many shortcomings in process and manual book on handling administrative violations

VCN - Legal policies on handling administrative violations have effectively supported the technical work of the Customs sector. However, some legal bases and regulations have been amended, replaced, and supplemented, which have limited the efficiency of h
Mobile Version