Policy on imported goods for export processing without a processing facility

	Amending the Decree, defining the criteria clearly for tax exemption for imported goods for export processing
	Removing obstacles for export processing enterprises
	Bac Ninh Customs: Many difficulties in management of processed and manufactured goods for export

Point b, Clause 2, Article 10 of Decree 134/2016/ND-CP is amended and supplemented in Clause 4, Article 1 of Decree 18/2021/ND-CP stipulating: The taxpayer or processor hired by the taxpayer has the right to ownership or enjoyment of the processing facility in Vietnam and equipment in the facility and has submitted the facility notification, the processing contract, sub-processing contract and their appendices to the customs authority in accordance with customs law. In case these documents are not submitted on schedule, the taxpayer shall only incur administrative penalties for customs offences as per regulations. ​

Customs officers of Gia Thuy Customs Branch at work (Hanoi Customs Department). Photo: N.Linh

According to the regulation, conditions on processing facilities require that the "taxpayer" or "processors hired by the taxpayer" must have the right to own or use a processing facility; It is not required that both of the above subjects must have a facility for processing exported goods at the same time. In case both of the above subjects do not have the right to own or use a facility for processing export goods, they will not eligible for tax exemption.

The General Department of Customs emphasized that the delivery of all imported goods for outsourcing is exempt from tax according to the provisions of Clause 2, Article 10, Decree 134/2016/ND-CP, amended and supplemented in Clause 4, Article 1 of Decree 18/2021/ND-CP.

In particular, the notification of production facilities (including processing and reprocessing facilities, facilities for producing export goods and storage places of raw materials, supplies, machinery and equipment, and export products are stored) is carried out. according to the provisions of Clause 1, Article 56 of Circular 38/2015/TT-BTC amended and supplemented in Clause 36, Article 1 of Circular 39/2018/TT-BTC.

The General Department of Customs requests that the Hanoi Customs Department should follow the above regulations and the actual production and processing activities of enterprises to handle taxes.