On 13 July 2026, the Customs Department issued Official Letter No. 18762/CHQ-GSQL on the procedures and tax policy applicable to scrap materials arising during processing activities.
The details are as follows:
1. Regulations on customs procedures
The procedures for handling scrap materials of export processing enterprises may not be carried out arbitrarily but must strictly comply with current legal documents.
Specifically, the customs procedures for handling scrap and defective products of EPEs are provided for in Articles 75 and 76 of Circular No. 38/2015/TT-BTC and its amending documents, as follows:
“5. Handling of scrap and defective products of EPEs
- a) For scrap and defective products permitted to be sold on the domestic market: customs procedures are carried out under Clause 3 of this Article; the EPE completes export procedures and the domestic enterprise completes import procedures under the corresponding type;
- b) For scrap and defective products permitted to be exported abroad: the EPE completes export procedures under Chapter II of this Circular.
- The destruction of raw materials, supplies, semi-finished products, finished products, machinery, equipment, scrap and defective products of EPEs is carried out under Point d, Clause 3, Article 64 of this Circular.”
2. Tax policy on the sale of scrap materials by export processing enterprises
Non-taxable objects: goods exported from a non-tariff zone to a foreign country, or goods imported from a foreign country into a non-tariff zone and used solely within that zone.
Accordingly, goods (including scrap materials) exported from a non-tariff zone to a foreign country are not subject to export or import duties.
(According to the Law on Export and Import Duties No. 107/2016/QH13)
3. Compliance with specialized regulations & environmental protection
In addition to customs procedures, enterprises should note the regulations relating to scrap management. They should proactively review the Law on Foreign Trade Management, the Law on Environmental Protection and Decree No. 69/2018/ND-CP.
(According to Official Letter No. 18762/CHQ-GSQL dated 13 July 2026)
Related services: Customs clearance procedures
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