Proposals by Customs on used machinery not applicable to adjustment of Circular No.23/2015/TT-BKHCN

The photo. Source: Internet

The General Administration of Customs had proposed this interpretation in dealing with obstacles in the operation of Vietnamese processing enterprises under outsourcing contracts with foreign partners. According to enterprises, usually all machinery, equipment and technological lines under outsourcing contracts are provided by foreign hiring parties.

When the processing contract is completed or expires, the declarant (foreign companies) must complete Customs procedures for handling such equipment for another processing contract in Vietnam, or donating or giving away in Vietnam.

As stipulated in Article 64 of Circular 38/2015 / TT-BTC, in such cases, the processing enterprises in Vietnam must register a new Customs declaration for temporary importation or new import of the equipment. At the same time, management and tax policies on export and import goods must be complied in the new Customs declaration in the time of declaration unless they are fully paid by the hiring entities.

From July 1, 2016, the importation of used machinery, equipment and technological lines must be adjusted by Article 1 of Circular No 23/2015/TT-BKHCN. Accordingly, enterprises must submit certification on the production year and manufacturing specifications of the equipment.

However, it is oftrn impossible to do that because the purchase between the manufactures and the hiring enterprises took place a long time. On the other hand, the domestic inspection agencies are also unable to confirm such parameters of the equipment because they are not manufactured in accordance with the National Technical Regulations or the National Standard.

According to the General Administration of Customs, these items, basically, had been imported and used in a specific period of time in Vietnam under outsourcing contracts. Besides, the transfer of equipment from outsourcing contracts to other processing contracts or from foreign partners in the form of donations, gifts only operates within the territory of Vietnam.

Therefore, to facilitate businesses, the General Department of Customs is asking the Ministry of Science and Technology to perform inspections and apply standard regulations on used equipment only for their first import in Vietnam.

Used machinery, equipment, technological lines which are only transferred from one domestic enterprise to another (i.e. used machinery which is delivered for another processing contract, or donated or given away in Vietnam or bought from the sale of domestic enterprises) or temporarily imported for re-export goods, are not required to comply with the provisions of Circular 23/2015 / TT BKHCN.