Tax Exemption on Imported Raw Materials and Supplies for Export Production
The General Department of Customs said that Clauses 1 and 2, Article 70 of Circular No. 38/2015/TT-BTC, amended and supplemented by Clause 48, Article 1 of Circular No. 39/2018/TT-BTC of the Ministry of Finance, stipulate customs procedures when importing raw materials for the production of export goods, in cases where raw materials are hired by other organizations or individuals to process a part of the process, and in cases where declarations are registered under the type of export production.
Accordingly, in cases where other organizations or individuals process a part of the process in the production process, the organization or individual importing raw materials and supplies for export production is responsible for notifying the reprocessing contract and, before delivering raw materials and supplies to the reprocessing partner, must keep documents related to the delivery of raw materials, supplies, and products according to regulations.
Export products managed according to the type of export production include: products produced from all imported raw materials and supplies according to the type of export production; products produced by combining the following sources: imported raw materials and supplies according to the type of export production; imported raw materials and supplies according to the type of business import; raw materials and supplies of domestic origin; products produced from all imported raw materials and supplies according to the type of business import. Regarding import tax policy, the General Department of Customs guides, in Clause 7, Article 16 of the Law on Export Tax and Import Tax and Clause 1, Article 12 of Decree No. 134/2016/ND-CP amended and supplemented in Clause 6, Article 1 of Decree No. 18/2021/ND-CP, which stipulates that imported raw materials, supplies and components for the production of export goods are exempt from tax. The basis for determining tax-exempt goods is implemented according to the provisions of Clause 2, Article 12 of Decree No. 134/2016/ND-CP, amended and supplemented in Clause 6, Article 1 of Decree No. 18/2021/ND-CP of the Government.
