Importing goods to sell to export processing enterprises is a model widely applied in import-export business. In this case, the law stipulates the following procedures for importing goods:
1. Determine objects subject to import tax
First, businesses need to determine whether the goods are subject to the tax or not. Pursuant to Article 2, Law on Export Tax and Import Tax 2016, “Goods exported and imported through Vietnam’s border gates and borders”,… And not subject to tax exemption in Clause 4, this Article is determined to be a taxable subject.
If an enterprise has paid import tax but needs to re-export the goods, the enterprise will not liable for export tax and will be eligible to receive a refund of the import tax paid.
In order to be eligible for a tax refund, the original importer or an authorized person must re-export the goods, ensuring that they have not used, processed, or altered them. Decree 18/2021/ND-CP specifically stipulates the re-exportation of goods in the given cases:
– Export and return the goods owner;
– Exporting imported goods abroad;
– And exported to the non-tariff zone for use in the non-tariff zone.
Note: Non-tariff zones include export processing enterprises. (Pursuant to Clause 20, Article 4, Circular 219/2013/TT-BTC)
2. Determine the subject subject to VAT
In addition to the import tax, enterprises need to determine whether the goods are subject to VAT or not. Pursuant to Articles 3 and 5 of the Law on Value Added Tax 2008 to determine taxable objects.
3. Import type code
In Official Dispatch 1684/TCHQ-TXNK, the General Department of Customs guides import declarations to use type code A11. Accordingly, Decision 1357/QD-TCHQ stipulates that Code A11 is a type of import for business and consumption. Code A11 used in case enterprises import for business or consumption, including:
– Importing goods from abroad;
– Importing from non-tariff zones, export processing enterprises;
– And imported locally.
Particularly for enterprises with foreign investment capital, etc. And enterprises that import according to the certificate of registration of import rights, use code A41.
4. Procedures for importing goods to sell to export processing enterprises
Based on the information in the above items, in case of import for sale to export processing enterprises… Enterprises must declare and pay full import tax, VAT, etc. Use the corresponding import type code (A11 or A41 depending on case). If the enterprise meets the tax refund conditions, it will receive a refund of the paid import tax for the goods brought into and exclusively used in the export processing enterprise.
Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn Email: miller@hmlf.vn
