Imports meeting Tax Incentive Program will have tax refunded

Strictly follow regulations in tax incentive programs

Quang Nam Customs officers at work. Photo: T.H

Clause 1, Article 7a supplemented in Clause 6, Article 1 of Decree 125/2017/ND-CP dated November 16, 2017 of the Government provides a preferential import tax rate of 0% for imported auto parts under Heading 98.49 in Section 2, Chapter 98 of Appendix 2 to this Decree.

Clause 1, Article 76 added to Clause 2, Article 1 of Decree 57/2020/ND-CP dated May 25, 2020 of the Government stipulates the preferential import tax rate of 0% for raw materials, supplies and components that cannot be produced domestically to manufacture, process products that are prioritized for development for the automobile manufacturing and assembling industry (referred to as automotive supporting industry products).

Clause 1, Article 36 of the Government Decree 134/2016/ND-CP dated September 1, 2016 provides that paid import duties on goods that are initially imported for business operation but eventually used for the manufacture of goods that have been exported into a foreign country or a free trade zone shall be refunded.

According to regulations, if importers that are eligible for the tax incentive program as prescribed in Article 7a of Decree 125/2017/ND-CP, Article 7 of Decree 57/2020/ND-CP and paid taxes, they will be refunded taxes under regulations on overpaid tax.

If imports do not satisfy regulations on the tax incentive program as prescribed in Article 7a of Decree 125/2017/ND-CP, Article 7 of Decree 57/2020/ND-CP, they will open the declaration under the regime of business importation or business importation for production (regime All, A12). When the importers export goods abroad, they will carry out procedures for a tax refund as per Article 36 of Decree 134/2016/ND-CP.

The GDVC requires the local customs departments to base on these regulations to instruct enterprises to declare in line with regulations and take responsibility for handling the paid taxes.