Duties on goods imported for manufacture of domestic exports

1. Raw materials, supplies, components, semi-finished products and finished products import for manufacture of domestic exports exempt from import duties specified in Clause 7 Article 16 of the Law on Export and import duties comprise:

a) Raw materials, supplies (including those for manufacture of packages of exports), components, semi-finished products imported incorporated into the exports or used during the manufacture of exports without being incorporated into the exports;

b) Imported finished products that are attached on exports or packed with exports as a whole;

c) Components and parts imported for repair of exports under warranty;

d) Goods imported as samples that are not traded or used.

2. Basis for determination of eligibility for duty exemption:

a) The manufacturer of exports has a factory where exports are manufactured in Vietnam; owns or has the right to use machinery and equipment at the factory which is suitable for the raw materials, supplies and components imported for manufacture of exports and has notified the customs authority of the factory;

b) The imported raw materials, supplies and components are used for manufacture of the exported products.

The value or quantity of imported raw materials, supplies and components exempt from duty is the actual value or quantity of raw materials, supplies and components used for manufacture of the products that are exported in reality and is determined when making a statement of raw materials, supplies and components imported for manufacture of exports in accordance with customs laws.

The taxpayer shall truthfully declare the value or quantity of raw materials, supplies and components that are used for manufacture of products that are imported in reality and granted duty exemption while following customs procedures.

3. Procedures for granting duty exemption are specified in Article 31 of this Decree.

Article 13. Exemption of duties on temporarily imported goods and temporarily exported goods

1. Goods that are temporarily imported and re-exported or temporarily exported and re-imported within a certain period of time shall be exempt from duties as prescribed in Clause 9 Article 16 of the Law on Export and import duties.

2. Goods that are temporarily imported or temporarily exported for repair or replacement as specified in Point c Clause 9 Article 16 of the Law on Export and import duties must not change the shape, functions and basic features of the temporarily imported goods and must not be used to create other goods.

In case of goods replacement under warranty, the replacing item must have the same shape, functions and basic features of the replaced item.

3. Reusable equipment that are temporarily imported and re-exported or temporarily exported and re-imported to carry exports and imports comprise:

a) Empty containers, with or without hooks;

b) Flex tanks inside containers for storage of liquids;

c) Other reusable equipment for storage of exports and imports.

4. Procedures for granting duty exemption are specified in Article 31 of this Decree.

In case of temporary import of goods, the taxpayer shall submit a guarantee letter issued by a credit institution or a document proving payment of deposit into the deposit account of the customs authority at a State Treasury if the guarantee letter has not been updated on the customs electronic data processing system.

Provisions of Article 4 of this Decree shall apply to provision of guarantee or depositing of import duties on temporarily imported goods.

Article 14. Exemption of duties on imported fixed assets of entities eligible for investment incentives

1. Imported fixed assets of an entity eligible for investment incentives are exempt from import duties as prescribed in Clause 11 Article 16 of the Law on Export and import duties.

2. Regarding an investment project a part of which is eligible for investment incentives, import fixed assets that are exclusively used for such part are exempt from import duties.

3. Regarding an investment project located in an administrative division provided with investment incentives but the project is not eligible, goods that are imported as fixed assets serving manufacturing activities of the project shall be exempt from import duties.

4. The Ministry of Planning and Investment shall establish criteria for identification of supplies that cannot be domestically manufactured.

The Ministry of Science and Technology shall establish criteria for identification of specialized vehicles used in technological line directly serving manufacturing activities of investment projects.

5. Procedures for granting duty exemption are specified in Article 30 and Article 31 of this Decree.