Goods imported from export processing enterprises must pay tax

	Modernizing management of processed and manufactured goods for export and export processing enterprises
	Tax policy for re-imported goods of export processing enterprises
	Answering import duty refund procedure for export processing enterprise

Customs officers of Ha Nam Ninh Customs Department conduct post-clearance audit for imported fabrics. Photo of Van Ta

In response to the question of WITS VINA CO., LTD related to tax policy for goods imported from export processing enterprises, according to the provisions of Article 2 of the Law on Import and Export Taxes, goods imported from the non-tariff zone into the domestic market are taxable and goods imported from abroad into the non-tariff zone and used only in the non-tariff zone are non-taxable.

Also in Clause 1, Article 4 of the Law on Import and Export Duties, “Non-tariff zone Free trade zone means an economic zone located within Vietnam’s territory, established in accordance with the law, having a definite geographic boundary, and separated from the outer area by hard fences in order to facilitate customs inspection and customs control by the customs authority and relevant agencies for exports and imports, inbound and entry and exit vehicles and passengers; the trading relationship between the free trade zone and the outside area is considered exportation and importation”.

In addition, Clause 20, Article 2 of Decree No. 35/2022/ND-CP of the Government stipulates: "Export processing refers to a specialized act of manufacturing of exported commodities and provision of services for the production of exported products and exportation”.

Clause 11 Article 26 of Decree No. 35/2022/ND-CP stipulates: Export processing enterprises may sell goods into the domestic market. Goods imported from export processing enterprises or export processing zones into the domestic market shall be subject to taxes in accordance with the law on customs duties.

Reviewing current regulations, according to the General Department of Customs, goods imported from abroad into export processing enterprises (meeting the condition that they are non-tariff zones as prescribed in Article 4 of the Law on Import and Export Duties) are non-taxable.

However, if domestic enterprises import products of export processing enterprises, they must pay tax according to the Law on Import and Export Duties provisions.

Over 1,600 export processing enterprises meet customs inspection and control conditions

The Law on Import and Export Duties and current guiding documents do not stipulate the import tax exemption for imported raw materials for the production of products sold into the domestic market of export processing enterprises. Therefore, the General Department of Customs suggested that WITS VINA Co., Ltd. study the current regulations or contact the customs office where the declaration is registered for guidance.