Through the system of receiving and responding recommendations of businesses, the Nha Be Garment Corporation - Joint Stock Company proposed to consider amendments and supplements to the Decree No. 134/2016 / ND-CP on import tax policy for imported goods to produce export goods that be destroyed.

According to the business's reflection, the local customs authorities are now applying the tax calculation price of the surplus, damaged, and fashionable materials of the raw material import contract to produce export goods as well as raw materials are waste materials and faulty products in both processing and export production at the initial import price or proposed for price consultation (if in doubt).

According to the company, this is a calculation method that damages businesses because the value of these materials is very small, the availability of raw materials is almost 5% -10%.

Therefore, the business proposes to apply the tax policy for the surplus and damaged materials of the E31 import declarations such as imported materials and materials for processing E21 when carrying out the destruction.

In addition, for the surplus raw and auxiliary materials converted to domestic consumption (including E31 or E21 type), the business will only declare and pay tax according to the price that the business actually sells in the domestic market. Value-added invoices issued by the tax authorities after liquidation or when settling the situation of using raw materials and accessories with the customs offices.

With the above difficulties and obstacles, the Nha Be Garment Corporation proposed to competent agencies to consider and adopt reasonable and open policies to create favorable conditions for production and business activities, especially with businesses mainly producing garments for export as the Company.

Regarding this issue, The General Department of Customs has the following opinions:

In the immediate future, regarding import duties on imported goods according to types of export production, being destroyed, the General Department of Customs proposes the Nha Be Garment Corporation - Joint Stock Company to comply with the contents of the Official Letter. No. 8127 / TCHQ-TXNK dated December 13, 2017 of the General Department of Customs.

At the same time, the General Department of Customs noted the recommendation of the Nha Be Garment Corporation - a joint stock company on the import tax policy for imported goods to be destroyed.

In the coming time, the General Department of Customs will have an overall assessment to propose competent agencies to consider amending and supplementing tax policies on the basis of businesses' recommendations, suitable to the actual situation and ensure equality between the type of export production and the type of processing.

Regarding tax calculation values ​​for discarded materials, faulty products, raw materials and supplies, faulty fads, damaged domestic consumption transfer, based on Clause 2, Article 17 of the Circular No. 39/2015 / TT-BTC dated October 25, 3 2015 of the Ministry of Finance. Whereby:

- For discarded materials and faulty products after being exported, if the use purpose is changed (domestic consumption), the tax calculation value shall be determined according to the actual purchase and sale prices that be suitable to the time ofuse purpose change as stipulated in Clause 2, Article 17 of Circular No. 39/2015 / TT-BTC.

- For excess raw materials and supplies after the export production process, if the use purpose is changed (domestic consumption) with commercial quality and value is no longer as the original, the tax calculation value is determined according to the actual purchase and sale price at the time of changing the purpose of use in accordance with Clause 2, Article 17 of Circular No. 39/2015 / TT-BTC.

- When changing the purpose of use, the Customs Office shall inspect and handle the inspection results in accordance with the Customs Law, the Decree No. 08/2015 / ND-CP dated January 21, 2015 of the Government. Government, the Circular No. 38/2015 / TT-BTC and the Circular No. 39/2015 / TT-BTC dated March 25, 2015 of the Ministry of Finance.

We recommend the Nha Be Garment Corporation - Joint Stock Company to send a number of cases of waste, defective products, raw materials and surplus materials for domestic consumption at the Customs Department of Ho Chi Minh City. Ho Chi Minh City has been determined that the value is not true to the actual price of domestic consumption to the General Department of Customs for specific handling.