Tax exemption for goods imported for processing and processed products for export

Goods imported for processing and processed products exported under processing contracts are exempt from export tax and import tax, including:– Raw materials, semi-finished products, supplies (including packaging materials or packaging for exporting products), imported components that directly constitute exported products or directly participate in the export process. The process of processing exported goods but not directly converting them into goods, including cases where the processing party imports raw materials, supplies and components to perform the processing contract;– Imported goods are not used for purchase, sale, exchange or consumption but are only used as samples;– Imported machinery and equipment agreed in the processing contract to perform the processing;– Finished products imported to be attached to processed products or packed together with processed products into uniform items and exported abroad are shown in the processing contract or processing contract appendix and are management such as imported raw materials and supplies for processing;– Components and spare parts imported for warranty purposes for exported processed products are shown in the processing contract or processing contract appendix and are managed like raw materials and supplies imported for processing;– Goods imported for processing but allowed to be destroyed in Vietnam and actually destroyed.In case goods imported for processing are used as gifts or gifts, tax exemption will be implemented according to the provisions of Article 8 of Decree 134/2016/ND-CP.At the end of the processing contract term, goods imported for processing that are not used must be re-exported. In case of non-re-export, tax must be declared and paid according to regulations.– Processed products for export.In case export processed products are produced from domestic raw materials and supplies with export tax, when exported, tax must be paid on the value of domestic raw materials and supplies constituting the exported product according to the law. Tax rates of raw materials and supplies.Conditions for businesses to be exempt from export and import tax for this type of goods are as follows:– Enterprises have processing contracts according to the provisions of Article 39 of Decree 69/2018/ND-CP. Taxpayers declare on the customs declaration information about the number and date of the processing contract and the name of the outsourcing partner.– Taxpayers or businesses that reprocess for taxpayers have facilities for processing and producing exported goods in the territory of Vietnam and notify the processing and production facilities according to the provisions of law. on customs and notify processing contracts to customs authorities.– Imported raw materials, supplies and components are used to process and produce exported products.The value or amount of imported raw materials, supplies, and components exempt from tax is the value or amount of imported raw materials, supplies, and components actually used to produce processed products actually exported, Determine when finalizing the management and use of imported raw materials and supplies to process export products according to the provisions of customs law.When making final settlement, taxpayers are responsible for accurately and truthfully declaring the value or quantity of actual exported raw materials, supplies and components used to produce imported processed products that have been exempted from tax. when going through customs procedures.Tax exemption documents:1. Customs documents for imported goods (applied to imported goods) or customs documents for exported goods (applied to exported goods).2. In addition to the above documents, depending on each case, the enterprise must submit one of the following documents:– Entrustment contract in case of entrusted import or export of goods: photocopy stamped as a copy of the original by the agency.Refer to the sample: Goods import entrustment contract and Goods export entrustment contract.– Goods supply contract according to the winning bid document or contractor appointment document in case of bidding, the contract must clearly state that the supply of goods does not include import tax in case the enterprise wins the bid. Imported goods: photocopy with agency stamp as true copy.– Financial leasing contract in case of financial leasing for import of goods provided to subjects entitled to tax exemption incentives, clearly stating the price of goods supply does not include import tax: copy with stamp attached. copy of the agency’s original copy.– Goods transfer documents in case of transfer of goods subject to tax exemption to other subjects of tax exemption, the document clearly states the transfer price of goods does not include import tax: photocopy with star stamp. original copy of the agency.Time limit for processing documents:– Time limit for completing customs dossier inspection: no more than 02 working hours from the time the customs authority receives complete customs dossiers.– Time limit for completing the physical inspection of goods: no more than 08 working hours from the time the customs declarant fully presents the goods to the customs authority. In case the goods are subject to specialized inspection in terms of quality, health, culture, animal and plant quarantine, and food safety according to relevant laws, the time limit for completing the physical inspection is The validity of goods is calculated from the time of receiving specialized inspection results according to regulations.For shipments with large quantities, many types or complex inspection, the head of the customs office where customs procedures are carried out shall decide to extend the time for physical inspection of goods, the maximum extension time. no more than 02 days.Within a maximum period of no more than 15 (fifteen) days from the date of receipt of complete documents, the customs authority shall exempt tax or notify the taxpayer of the reason for not being eligible for tax exemption.Note:– Equipment, machinery, raw materials, supplies, components, and processed products paid by foreign parties in lieu of processing fees must pay import tax according to regulations.– Scrap, defective products and surplus raw materials and supplies imported for processing not exceeding 3% of the total amount of each raw material and supply actually imported under a processing contract are exempt from import tax when consumed internally. locality, but must declare and pay value added tax, special consumption tax, environmental protection tax (if any) to the customs authority.– In case of tax-free import in a combination or chain, it must be imported in multiple shipments to assemble into a complete combination or line, and deduction cannot be made according to the quantity of goods at the time of import. Within 15 days from the end of importing the last batch of goods of each combination, line, organization or individual, they are responsible for synthesizing imported declarations and finalizing with the customs authority according to provisions of law on tax administration.