Whilst processing customs procedures and tax policies, the Binh Phuoc Customs encountered problems. According to the General Department of Vietnam Customs, the Law on Import Tax and Export Tax (No. 107 /2016/QH13) has stipulated tax refunds for cases where the taxpayer has paid export tax. However, the exported goods must be re-imported and the export tax later refunded. Import taxes are exempted.

Decree 134/2016/ND-CP, amended and supplemented in Decree 18/2021/ND-CP, also stipulates cases where tax was not collected for goods that were not subject to import and export tax.

Binh Phuoc Customs officers check imported and exported goods. Photo: N.H

Article 47 of Decree 08/2015/ND-CP stipulates: Forms of re-importation of goods that are already exported but returned (hereinafter referred to as re-importation for short) include: Re-importing returned goods for repair, reprocessing (referred to as recycling) and then re-exporting, re-importing returned goods for domestic consumption, re-importing goods returned for destruction in Vietnam (not applicable for processed goods of foreign traders); re-importing returned goods to export to other foreign partners.

Article 47 of Decree 08/2015/ND-CP also clearly stipulates that the customs authority does not levy taxes on re-imported goods, as specified in Clause 1 of this Article, as long as customs declarants submit sufficient documents proving that tax exemption is applicable to these commodities at the time of completing required re-import customs formalities.

According to the General Department of Vietnam Customs, based on the above provisions, tax processing for exported goods of type B11 (for business export) that must be re-imported, will be implemented too.

For example, if an enterprise exports goods purchased domestically under type B11, and has declared and paid export tax, when re-importing under type A31 (importation of exported goods) the customs authority has grounds to determine that re-imported goods are previously exported. For goods that have not been used or processed abroad, export tax shall be refunded and import tax shall not be paid. In cases when the customs authority has no basis to determine that the re-imported goods are previously exported goods, they must pay import tax upon re-import, and at the same time, the paid export tax shall not be refunded.

For cases when an enterprise exports goods originating from import (and has fully fulfilled tax obligations upon import), but fails to carry out the procedures for exempting export tax or import tax refund, they shall use export declaration code of type B11. When re-importing for repair and then re-exporting or for domestic consumption, according to type A31, if the customs authority has grounds to determine that the re-imported goods are previously exported and the goods have not been used or processed in foreign countries, it will be refunded as export tax and import tax won’t be paid.

In cases when the customs authority has no basis to determine that the imported goods are previously exported goods, they must pay import tax upon re-import, and at the same time, the paid export tax will not be refunded. Enterprises are not required to declare changes of purpose in cases where goods are re-imported for recycling but not re-exported.

For type code G13 (temporary tax-free import), import declarations have not yet arisen, the General Department of Vietnam Customs requested the Binh Phuoc Customs Department to follow the instructions in Official Dispatch No. 432/TCHQ-QLRR, dated 5 August 2021.

For cases when goods are exported and then re-imported, but there is no certification from the customs authority that the goods have not been used or processed abroad, the customs authority will not have enough basis to collect import tax or

refund export tax upon re-import, in accordance with the provisions of Article 33 of Decree 134/2016/ND-CP.

The General Department of Vietnam Customs emphasized that, in order to identify waste of export processing enterprises to be sold inland, it is requested that the Binh Phuoc Customs Department study the provisions of the Law on Environmental Protection and Clause 3, Article 1 of Decree 38. /2015/NDCP of the Government for implementation.