On October 8, 2024, the General Department of Customs (GDC) issued Official Letter No. 4855/TCHQ-TXNK to provide guidance on tax refunds for imported goods intended for production and business but subsequently used in the manufacturing of exported goods.
The GDC has the following opinions:
Guidance on the basis for determining tax-exempt imported goods:
- Export production facility: The enterprise must have a production facility in Vietnam and possess ownership or usage rights over machinery and equipment suitable for the imported raw materials.
- Scope of tax refund: The value or quantity of imported raw materials eligible for a tax refund must correspond to the actual amount used in the production of exported products.
- Customs procedures: The exported goods must undergo customs clearance under the export-production classification.
- Export method: This can be either through direct exportation or via entrusted import and export of goods and products.
(According to Clause 3, Article 36 of Decree No. 134/2016/ND-CP)
Guidance on Tax Refund Information Declaration:
Enterprises must provide complete information on the customs declaration for imported raw materials used in the production of exported products according to Form No. 10 – “Report on Tax Calculation of Raw Materials and Supplies Requested for Import Tax Refund” (Appendix VII of Decree No. 18/2021/ND-CP).
When carrying out export procedures, the taxpayer must declare on the export declaration that the products were produced from previously imported goods.
- Specifically, in the “Notes” section of the electronic customs declaration or the “Other Notes” section of the paper customs declaration, the enterprise must state: “The exported product was manufactured from imported goods.”
- Customs declarants are not required to provide detailed lists of import declarations on the export declaration of products.
(According to the guidance in Official Letter No. 5644/TCHQ-TXNK)
When carrying out tax refund procedures, the enterprise must provide detailed declarations regarding the imported raw materials for which the tax refund is requested.
Important information includes: import declaration, quantity of raw materials used, actual usage rates (BOM), and other relevant details in Form No. 10 of Appendix VII of Decree No. 18/2021/ND-CP
The enterprise must submit supporting documents related to the above information for Customs to assess the tax refund eligibility.
(According to Official Letter No. 4855/TCHQ-TXNK dated October 8, 2024)
Read more Instructions for preparing the import tax refund dossier and Notes on declaring information for tax refund here: Guidelines on Tax Refunds of Imported Goods for Export Production 2024.
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