Question:
Our company is an export-oriented manufacturing enterprise. We specialize in contract manufacturing for export. Currently, we wish to expand our production and engage in domestic trade. Do we need to go through customs procedures when selling goods in the domestic market? If so, do both the seller and the buyer need to complete these procedures, or is it only the seller’s responsibility? If we are allowed to sell domestically, are we also allowed to import goods for sale in the domestic market like domestic enterprises?
Answer:
We suggest that the company follow the regulations in Clause 5, Article 25 of Decree No. 08/2015/ND-CP. Customs procedures should be carried out in accordance with the provisions of Article 21, Section 5 of Circular No. 38/2015/TT-BTC. Specifically:
“Article 21. Change of purpose, transfer for domestic consumption
Implementation principles:
a) Goods for export or import transferred for domestic consumption or for a change of purpose must comply with the provisions of Clause 5, Article 25 of Decree No. 08/2015/ND-CP.
b) The transfer for domestic consumption or change of purpose for goods that have undergone export or import procedures may only be carried out after the customs declarant has completed customs procedures for the new customs declaration.
c) For goods that require export or import licenses when conducting export or import procedures, they must also be approved in writing by the issuing authority for export or import licenses when transferred for domestic consumption or a change of purpose.
d) Goods undergoing a change of purpose or transferred for domestic consumption must be declared, and taxes and fines (if any) must be paid in accordance with the regulations.
Responsibilities of the customs declarant:
a) Submit a customs dossier including:
• Customs declaration as regulated in Article 16 of this Circular;
• Licenses issued by the Ministry or sector for a change of purpose or export/import for goods that require licenses: 01 original copy;
• A written agreement with foreign parties regarding the change of purpose of goods or a commercial invoice for cases involving the transfer of ownership of goods for processing, leasing from foreign organizations or individuals, or contracts for tax-exempt goods, non-taxable goods, temporary export for re-import, or temporary export for re-import: 01 photocopy.
b) Declare and pay the full tax amount in accordance with the new customs declaration form, indicating the customs declaration number of the original imported goods in the ‘Remarks’ section of the electronic customs declaration form or the ‘Other notes’ section of the paper customs declaration form.
In cases where the customs declarant changes the purpose or transfers goods for domestic consumption but fails to voluntarily declare and pay taxes to customs authorities, if customs authorities or other relevant authorities discover this, the customs declarant shall be liable for the tax amount based on the customs declaration of the originally imported goods and subject to penalties in accordance with current regulations. The customs declarant is responsible for paying the outstanding tax amount, late payment interest, and fines (if any) as determined by the customs authorities.”
Based on Article 7 of the Law on Investment 2020, which regulates investment business lines with conditions. In Appendix 4, serial number 57, it lists the activities of buying and selling goods and directly related activities to the buying and selling of goods by foreign service providers in Vietnam (included in Appendix 4, business lines with conditions).
