(Chinhphu.vn) - Mr. Nguyen Chanh (HCMC) asked, can a foreign-invested company supply all raw materials to produce processed goods for foreign traders?

Mr. Chanh also wants to know, after processing, if his company does not export and return the goods to the processing party but has the right to sell these goods in Vietnam, what customs procedures must be carried out?

Regarding this issue, the Ministry of Finance has the following comments:

Pursuant to Article 181 of the Commercial Law No. 36/2005/QH11:

"Article 181. Rights and obligations of the ordering party

1. Deliver part or all of the raw materials and materials for processing in accordance with the processing contract or pay money to purchase materials according to the agreed quantity, quality and price.

2. Receive back all processed products, leased or lent machinery and equipment, raw materials, accessories, supplies and scrap after the processing contract is liquidated, unless otherwise agreed.

3. Sell, destroy or donate on-site processed products, leased or lent machinery and equipment, surplus raw materials, accessories, supplies, waste and scrap according to the agreement and in accordance with the provisions of law.

4. Appoint a representative to inspect and supervise the processing at the place of processing, and assign experts to provide technical guidance Manufacture and inspect the quality of processed products according to the agreement in the processing contract.

5. Be responsible for the legality of intellectual property rights of processed goods, raw materials, materials, machinery and equipment used for processing transferred to the processing party".

Pursuant to Article 182 of the Commercial Law No. 36/2005/QH11:

"Article 182. Rights and obligations of the processing party

1. Supply part or all of the raw materials and materials for processing according to the agreement with the ordering party on quantity, quality, technical standards and price.

2. Receive processing remuneration and other reasonable expenses.

3. In case of processing for foreign organizations and individuals, the processing party is allowed to export on-site processed products, rented or borrowed machinery and equipment, raw materials, accessories, surplus supplies, waste and scrap under the authorization of the ordering party.

4. In case of processing for foreign organizations and individuals, the processing party is exempted from import tax on machinery, equipment, raw materials, accessories and supplies temporarily imported according to the norms to perform the processing contract in accordance with the provisions of the law on tax.

5. Be responsible for the legality of the processing activities goods in the case of processed goods that are prohibited from trading, prohibited from exporting, prohibited from importing".

In addition, the company studies the provisions of Decree No. 09/2018/ND-CP dated January 15, 2018 of the Government; Decree No. 69/2018/ND-CP dated May 15, 2018 detailing a number of articles of the Law on Foreign Trade Management and the provisions in Chapter III of Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Minister of Finance amended and supplemented by Circular No. 39/2018/TT-BTC dated April 20, 2018 of the Minister of Finance regulating customs procedures; customs inspection and supervision of processed goods for foreign traders.

It is recommended that your company base on the above provisions, compare with actual operations to comply with the regulations.

In case of any problems, the company should contact the customs office where the declaration is registered for guidance.