Quang Ngai Customs: Solving many problems for enterprises
Quang Ngai Customs officers instruct customs procedures to export processing enterprises. Photo: T.H |
At the conference, many export processing firms requested the customs authority to guide them on customs procedures and tax policies for the type of business related to export processing.
Answering difficulties of Sumida Electronic Quang Ngai Co., Ltd about the destruction of goods imported temporarily, Quang Ngai Customs Department said that, according to guidance in dispatch No. 1478/TCHQ-GSQL dated April 26, 2022 of General Department of Vietnam Customs, goods temporarily imported have only two forms of handling: re-export or domestic consumption if it fails to be re-exported. In case goods that are temporarily imported change the purpose of use (switching to other customs management regimes) but do not change to domestic consumption, the declaration of temporary import must be liquidated by making a declaration for re-export and then making an import declaration for a new use purpose in order for further supervision and management.
Procedures for liquidation, destruction and customs procedures shall comply with the provisions of Article 79 of Circular 38/2015/TT-BTC dated March 25, 2015 as amended and supplemented in Clause 55, Article 1 of Circular 39/2018/TT-BTC dated April 20, 2018 of the Ministry of Finance; Point d, Clause 3, Article 64 of Circular 38/2015/TT-BTC, as amended and supplemented in Clause 42, Article 1 of Circular 39/2018/TT-BTC, providing for the destruction of raw materials, supplies, machinery and equipment in Vietnam.
Regarding tax policy, Clause 4, Article 2 of the Law on Import Duty and Export Duty No. 107/2016/QH13 stipulates that goods imported from abroad into non-tariff zones and used only in non-tariff zones, or goods transported from one non-tariff area to another non-tariff zone, are not subject to import duty.
Clause 20, Article 5 of Law on Value Added Tax No. 13/2008/QH12 stipulates: "...goods and services are traded between foreign countries and non-tariff zones and between non-tariff zones" are not subject to value added tax. Therefore, export processing goods that are destroyed will not be subject to tax.
Answering problems of Foster Quang Ngai Company on how to handle final settlement of materials imported for production of samples, then changing the purpose, Quang Ngai Customs Department said that, to serve the production of samples for the new product code, the company imported materials and supplies following type E13 for the purpose of trial production.
However, in the process of producing samples that have met requirements, the company changed the purpose of export for sale and made payment. Then, the company does not need to carry out procedures to change the purpose of use for the number of raw materials constituting the product. The company only makes the final settlement report in accordance with current regulations.
In order to facilitate the import of goods and avoid errors, many businesses attending the conference asked the Customs authority to guide the procedures in advance.
Specifically, Maystar (Vietnam) Footwear Co., Ltd. asked that to enjoy preferential tariffs when importing goods, export processing enterprises (EPEs) need to meet the conditions for customs inspection and supervision for EPEs that are non-tariff zones as prescribed in Decree No. 18/2021/ND-CP. However, before that, the enterprise has to import machinery and equipment before the factory is completed (the EPE has not met the inspection and supervision conditions). In this case, if enterprises want to enjoy a preferential tariff policy for EPEs that are non-tariff zones when importing machinery, what procedures should enterprises carry out?
Leaders of Quang Ngai Customs Department answered, that based on the provisions of Article 28a of Decree 18/2021/ND-CP amending and supplementing Decree No. 134/2016/ND-CP, the investor implements the investment project (including new investment projects and expansion investment projects) may apply tax policies for non-tariff zones in accordance with the Law on Import Duty and Export Duty from the time of establishing EPEs as mentioned in the investment registration certificate, revised Investment Registration Certificate or a document issued by a competent investment registration authority in case the issuance of an Investment Registration Certificate is not required.
Kingmaker III (Vietnam) Footwear Co., Ltd. asked a question, in the near future, the company would have cases of import and export of raw materials and accessories between two EPEs, according to the provisions of Article 74 of Circular No. 38/2015/TT-BTC goods that were purchased, sold, rented or borrowed between two EPEs might choose not to carry out customs procedures. So how to track the data of the financial year settlements?
Answering the above question, Quang Ngai Customs Department said that, according to the provisions of Point a, Clause 1, Article 74 of Circular 38/2015/TT-BTC dated March 25, 2015 as amended and supplemented at Clause 50 Article 1 of Circular 39/2018/TT-BTC dated April 20, 2018 of the Ministry of Finance, enterprises can choose to carry out customs procedures or not.
In case of choosing not to carry out customs procedures, the EPEs shall prepare and store documents and detailed books on the monitoring of incoming and outgoing goods following the regulations of the Ministry of Finance on goods purchase and sale, accounting and auditing, which clearly defines the purpose and source of goods.
Enterprises still perform the final settlement report following the instructions in column 6, form No. 15/BCQT-NVL/GSQL, Appendix Circular No. 39/2018/TT-BTC amending and supplementing Circular No. 38/2015/TT- BTC.
In addition, at the conference, Quang Ngai Customs Department provided detailed instructions and answered 13 issues of enterprises related to customs procedures for the liquidation of machinery and equipment after converting into EPEs of domestic enterprises; settlement procedures for raw material; procedures for buying and selling, exchanging between EPEs and domestic enterprises.
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