To: Departments of Customs of provinces and cities

During the implementation of Decree No. 18/2021/ND-CP dated March 11, 2021 of the Government of Vietnam on amendments to Decree No. 134/2016/ND-CP dated September 1, 2016 of the Government of Vietnam elaborating several Articles and measures to implement the Law on Export and Import Duties, the General Department of Vietnam Customs has received reports of Customs Departments of provinces and cities and enterprises on difficulties in implementing customs procedures, handling import duties and value-added tax regarding goods originating from importation for machining and export production sent to bonded warehouses and conducting procedures for importation to the inland afterward.

Pursuant to the Law on Customs 2014; the Law on Import and Export Duties No. 107/2016/QH13; the Law on Foreign Trade Management No. 05/2017/QH14; The Commercial Law No. 36/2005/QH11 and Decree No. 08/2015/ND-CP dated January 21, 2015 amended by Decree No. 59/2018/ND-CP dated April 20, 2018, Decree No. 67/2020/ND-CP dated June 15, 2020 on amendments to Decree No. 68/2016/ND-CP dated July 1, 2016 of the Government of Vietnam; the General Department of Vietnam Customs provides guidelines on customs procedures and tax policies on goods imported to the inland originating from exported goods whose customs procedures have been completed to be sent to bonded warehouses as follows:

1. Regarding customs procedures for goods imported to the inland originating from exported goods whose customs procedures have been completed to be sent to bonded warehouses:

According to Article 85 and Article 88 of Decree No. 08/2015/ND-CP dated January 21, 2015 of the Government of Vietnam, goods from Vietnam whose customs procedures have been completed for export, goods from foreign countries pending customs procedures for import to Vietnam or pending export to a third country of entities licensed to hire bonded warehouses shall be put into storage in bonded warehouses. In the case of importation to the Vietnamese market, customs procedures must be carried out, as for goods imported from foreign countries, according to the respective importation type; the actual importation time of goods is the time customs agencies confirm that goods have been taken out of bonded warehouses. Therefore, regarding exported goods whose customs procedures have been completed to be sent to bonded warehouses pending exportation, during the storage time in bonded warehouses, enterprises may transfer the ownership of goods. If owners of such goods wish to import them back to the inland, apply for importation according to the respective importation type and perform import procedures according to Article 91 of Circular No. 38/2015/TT-BTC dated March 25, 2015 amended by Clause 59 Article 1 of Circular No. 39/2018/TT-BTC dated April 20, 2018 of the Ministry of Finance of Vietnam.

2. Regarding tax policies:

According to Article 4 of the Law on Import and Export Duties No. 107/2016/QH13, Article 3 of the Law on Foreign Trade Management No. 05/2017/QH14, Article 28 of the Commercial Law No. 36/2005/QH11, Article 12 of Decree No. 134/2016/ND-CP dated September 1, 2016 amended by Clause 6 Article 1 of Decree No. 18/2021/ND-CP dated March 11, 2021 Article 10 of Decree No. 68/2016/ND-CP dated July 1, 2016, amended by Clause 6 Article 1 of Decree No. 67/2020/ND-CP dated June 15, 2020 on conditions for recognition of bonded warehouses and Clause 20 Article 4 of Circular No. 219/2013/TT-BTC dated December 18, 2013 on entities eligible for tax exemption, regarding goods imported to the inland originating from exported goods whose customs procedures have been completed to be sent to bonded warehouses, enterprises shall conduct customs procedures and tax policies according to the respective type. Goods imported from bonded warehouses to the inland for export production that satisfy conditions prescribed in Article 12 of Decree No. 134/2016/ND-CP dated September 1, 2016 amended by Clause 6 Article 1 of Decree No. 18/2021/ND-CP dated March 11, 2021 are exempted from import duties and value-added tax as per regulation.

Customs Departments of provinces and cities shall implement the suggestions mentioned above of the General Department of Vietnam Customs./.

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ON BE HALF OF THE GENERAL DICRECTOR
PP. DIRECTOR OF THE CUSTOMS CONTROL AND SUPERVISION DEPARMENT
DEPUTY DIRECTOR




Dao Duy Tam