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Question:
The company is a Vietnamese company, specializing in the production and sales of medical equipment, including rubber gloves. Our company is importing machinery to serve the production of medical gloves at the above factory. Besides, we have orders to process gloves from factories in Malaysia, Thailand, Indonesia, ... according to our own standards. After that, we import semi-finished products to Vietnam and complete the remaining steps such as quality, quantity inspection, sterilization, classification and packaging of our brands before exporting. other country. The origin of goods is from the countries we place the processing, which is clearly shown on the package of goods. Now we make this official letter, please advise your consulting agency, guide us the form and the process of implementing the appropriate import and export procedures, in accordance with the law and tax obligations towards the state. like the benefits that our company enjoys

Reply:

1. Regarding the procedures for exporting raw materials and supplies to order and import finished products:

Pursuant to Article 67 of Circular 38/2015 / TT-BTC dated March 25, 2015 of the Ministry of Finance, as amended and supplemented in Circular 39/2018 / TT-BTC dated April 20, 2018 of the Ministry of Finance main regulations on procedures for the export of raw materials and supplies to order and import processed products:

“Article 67. Procedures for exporting raw materials and supplies for ordering and importing processed products

1. Procedures for exporting raw materials and supplies

a) Customs procedures are carried out at the Sub-department of Customs where the processing contract has been notified;

b) The customs dossier is the same as the customs dossier for exported goods specified in Chapter II of this Circular. Depending on each case, customs declarants must additionally submit the following documents:

... c) In case of transitional processing overseas, organizations and individuals in Vietnam are not required to carry out the procedures for transitional processing with the customs authority.

2. Procedures for the import of products ordered to be processed overseas

a) Customs procedures are carried out at the Sub-department of Customs where the processing contract is notified;

b) The customs dossier and customs procedures are the same as those specified in Chapter II of this Circular… ”

Pursuant to the above provisions, customs procedures for imported or exported goods that are raw materials and processed products are requested to refer to Article 16 and Article 18 of Circular 38/2015 / TT- BTC is amended and supplemented in Clause 5 and Clause 1 Article 1 of Circular 39/2018 / TT-BTC dated April 20, 2018 of the Ministry of Finance to implement.

2. Regarding the import and export tax policy:

Pursuant to Article 11 of the Government's Decree No. 134/2016 / ND-CP dated September 1, 2016 stipulating:

“Article 11. Duty exemption for goods exported for processing, for processed products for import

1. Goods exported for processing and processed products imported under processing contracts are exempt from import tax or export tax according to the provisions of Clause 6, Article 16 of the Law on Import Tax and Export Tax, including:

a) Exported raw materials, supplies and components.

The value or quantity of exported raw materials, supplies and components corresponding to processed products not re-imported are subject to export tax at the rate of exported raw materials, supplies and components.

... b) Exported goods are not for sale, purchase, exchange or consumption, but only as samples;

c) Machinery and equipment exported as agreed in the processing contract for processing;

d) Products ordered to be processed overseas, when imported back into Vietnam, are exempt from import tax on the value of exported raw materials, supplies and components constituting the processed product and must be taxable for the residual value of the product is based on the import tax rate of the imported processed product.

...

3. Tax exemption dossiers and procedures shall comply with the provisions of Article 31 of this Decree.

The taxpayer shall declare on the customs declaration the number and date of the processing contract; number and date of the document notifying the customs authority of the exported product with the total value of natural resources and minerals plus energy costs less than 51% of the product cost ”.

According to the above provisions, the company is exempt from export tax on raw materials and supplies exported for processing overseas corresponding to the processed products imported back into Vietnam. Products ordered to be processed overseas, when imported back into Vietnam, are exempt from import tax on the value of exported raw materials, supplies and components constituting the processed product and shall be subject to tax on the value part. the remaining price of the product is based on the import tax rate of the imported processed product.
3. Regarding the origin of exported finished products:

- Pursuant to Articles 6, 7 and 8 of the Government's Decree 31/2018 / ND-CP dated March 8, 2018 detailing the Law on Foreign Trade Management regarding the origin of goods, goods are considered to have origin when falling into one of the following cases:

“-Goods of pure origin or wholly produced in a country, group of countries, or territory as prescribed in Article 7 of this Decree; or

- Goods originating not purely or not being produced entirely in a country, group of countries, or territory, but meeting the provisions of Article 8 of this Decree ... "

Accordingly, exported goods have origin and are declared to be of Vietnamese origin in case they satisfy the rules of origin of preferential goods specified above.

The case of the Company as described will import semi-finished products after ordering overseas, then only carry out quality inspection, sterilization, classification and packaging, ... Only through simple processing and assembly stages under Article 9 of Decree 31/2018 / ND-CP, the exported goods do not meet the declaration conditions as well as show the origin of Vietnam.