Removing obstacles for export processing enterprises

	Goods imported from export processing enterprises must pay tax
	Chơn Thanh Customs Branch classifies and applies technology in management of export processing enterprises
	Strengthen management for outsourced warehouses by export processing enterprises

Enterprises raise questions at the conference. Photo: T.H

Resolve problems related to on-site import and export Regarding on-site import and export, the representative of Deloitte Vietnam Tax Consulting Company Limited Branch raised a questions that when will new regulations on on-site import and export be issued? and requested the Ho Chi Minh City Customs Department to promptly give guidance on on-site import and export. Representative of Ho Chi Minh City Customs Department said that they are currently carrying out customs procedures for on-site export and import goods according to the provisions of Article 35 of Decree No. 08/2015/ND-CP dated January 21, 2015 of the Government. If a foreign trader is present in Vietnam, it is not subject to on-site import and export. Also related to this type, an export processing enterprise raised a question that when importing raw materials from abroad, the company declare HS code A and gets customs clearance for those goods. However, when the company buy that goods from a local market, the local seller declares HS code B, and they say that they have been using that HS code B for that goods. Thus, the seller request the company make corresponding import declarations with HS code B. In this case, does the same type of raw material have two different HS codes? Answering this questions, a representative of Ho Chi Minh City Customs Department said that based on current regulations and Article 4 of Circular No. 14/2015/TT-BTC dated January 30, 2015 of the Ministry of Finance on the principle of goods classification: an item only has a single code according to Vietnam's List of Exported and Imported Goods; the classification of exported and imported goods, must comply with: Article 26 of Customs Law No. 54/2014/QH13 dated June 23, 2014; Article 16 of Decree No. 08/2015/ND-CP dated January 15, 2015 of the Government detailing and implementing measures of the Customs Law on customs procedures, inspection, supervision and customs control; the guiding contents in this Circular. Ho Chi Minh City Customs Department requests businesses to study the regulations on goods classification mentioned above, based on the actual imported goods, technical documents and other information related to the goods to determine, declare the appropriate code. In case of necessity, the company should contact directly the Customs office where procedures are carried out for specific instructions. There are no regulations on “average materials” Many businesses encounter problems in determining type and product codes. Some export processing enterprises said that the enterprise produces many products, including electric inflatable products with many different voltages and capacities, to facilitate management and how is the declaration made? The representative of the Customs Control and Supervision Division, Ho Chi Minh City Customs Department said that Clause 1, Article 18 of Circular 38/2018/TT-BTC, amended and supplemented in Circular 39/2018/TT-BTC stipulates: If the enterprise imports raw materials and supplies for export processing and production, and exports processed and manufactured products, the enterprise must declare code of the export product, imported materials and supplies in accordance with the actual management and production at the goods description criteria according to the instructions in Appendix II issued with this Circular on the customs declaration when carrying out import and export procedures; Declaration indicator No. 1.78, Appendix 2, Circular 39/2018/TT-BTC stipulates: If imported goods are raw materials, supplies for processing, export production, the enterprise declares: Code of raw materials, supplies, components, name of goods, specifications, quality. If the goods are processed products by a foreign company, the enterprises declare: product code, name of goods, specifications, quality. Point a Clause 2 Article 60 Circular 38/2015/TT-BTC, 39/2018/TT-BTC stipulates: “In cases where a manufacturing unit uses a code of raw materials, supplies, or a product code different from the code declared on the customs declaration when importing raw materials, supplies, or exporting products, that unit must make and keep the equivalent conversion table between these codes and present them at inspection and request by the Customs. Currently, there are no regulations on "average materials", so businesses study the above regulations to build appropriate raw material codes and product codes to facilitate tax declaration and calculation, change of the purpose of use. Renesas Vietnam Design Co., Ltd. requests to be guided on customs procedures to change the import type from temporary import - re-export to donation type. Ho Chi Minh City Customs Department guides that the company should base on Clause 5, Article 25 of Decree No. 08/2015/ND-CP dated January 21, 2015 of the Government, amended and supplemented in Clause 12, Article 1 of Decree No. 59/ 2018/ND-CP dated April 20, 2018 of the Government stipulates: For exported and imported goods that are not subject to export tax, import tax, special consumption tax, value added tax, environmental protection tax or tax exemption or application of tax rate and fixed tax rates according to the tariff quota and have been released or cleared from customs but then there is a change in the goods not subject to tax or the purpose of tax exemption; apply tax rates and fixed tax rates according to tariff quotas; Goods are raw materials, supplies, and components imported for export processing and production, and temporarily imported- re-exported goods that have been released or cleared through customs but then their purpose of use are changed or goods are changed into domestic consumption, a new customs declaration must be filed. Policy on management of exported and imported goods; tax policies for exported and imported goods are implemented at the time of registration of new customs declarations, unless the policy on management of exported and imported goods has been fully implemented at the time of registration of the initial declaration.