Question:
Please provide information on the preferential export-import tax rate for washing machines with HS code: 84502000 imported from South Korea. What percentage of tax applies?
Answer:
Based on Decree No. 131/2016/ND-CP, the preferential import tax rate for goods with HS code 84502000 imported from South Korea to Vietnam is 20%. For more detailed information, please visit the Ho Chi Minh City Customs Department’s electronic portal at (http://www.haiquan.hochiminhcity.gov.vn/). Go to the section for tax rate inquiry under HS code to check the applicable tax rate and the section for Legal Documents to view relevant regulations.
Question:
We use all imported raw materials entirely to manufacture export products. If the exported products fall under the category of exportable goods, can we be exempt from export taxes and have our export goods cleared without paying export taxes?
Answer:
According to Article 7 of the Law On Export and Import Duties No. 107/2016/QH13 dated April 6, 2016, and Articles 12 and 36 of Government Decree No. 134/2016/ND-CP dated September 1, 2016, goods exported as part of the production for export activities are not eligible for export tax exemption or refund.
Question:
Our company specializes in recycling metal scrap purchased domestically from the production process or used packaging waste. Our headquarters are located in the Le Minh Xuan Industrial Park, Binh Chanh District. The products after recycling are aluminum ingots and zinc ingots. Subsequently, we export aluminum ingots and zinc ingots for processing abroad and receive finished products, which are aluminum-zinc alloy boxes, to supply to domestic manufacturing plants. According to Official Letter No. 12166/BTC-TCHQ dated August 31, 2016, which regulates tax exemptions for exported goods for processing, it states: “Goods exported for processing are resources, minerals, and products with a total value of resources and minerals plus energy costs accounting for 51% or more of the product’s price shall not be eligible for export tax exemption.” We would like to inquire whether aluminum ingots, zinc ingots, and aluminum scrap, zinc scrap fall under this product group. If they do, how is the 51% value determined? Is it based on the value of the products exported for processing or the value of the products after processing is returned? After the processed products are re-imported and consumed in Vietnam, does this incur import taxes for the processing work?
Answer:
According to Article 1.a of Article 11 of Decree No. 134/2016/ND-CP dated September 1, 2016, “… goods exported for processing that are subject to export tax shall not be eligible for export tax exemption.”
Therefore, in cases where exported goods are for processing abroad by enterprises subject to export tax based on the current Export Tax Schedule, they are not eligible for export tax exemption.
