How to consider the price of material overages that passed through domestic consumption?

HCM City Customs officials inspected imported materials of fabric materials. Photo: Thu Hòa

Vietnam Textile and Apparel Association said that: for the imported raw materials and accessories for export production or export processing that are out of date and reject products passed through domestic consumption, the customs authorities would apply tax based on the price as listed in the import declarations although the value of goods were negligible. The Vietnam Textile and Apparel Association also proposed to be taxed at the actual selling price as written on the sale invoice.

According to the General Department of Vietnam Customs, pursuant to Clause 2, Article 17 of the Circular No. 39/2015/TT-BTC of Ministry of Finance dated 25/3/2015, the case of imported goods used in Vietnam that changed the using purpose compared with the purpose determined already to be not subject to tax, duty free, tax exemption consideration, customs valuation as actual value which has already been paid or will be paid at the time of changing using purpose. It will be determined by following the principle and customs valuation methods as prescribed in this Circular.

Hence, according to these regulations, the General Department of Vietnam Customs thought that for the case of materials and accessories after export production if changing the use purpose, the dutiable value would be determined based on the actual sale prices in accordance with the method of determination of taxable value as stipulated in Clause 2, Article 17 of Circular No. 39/2015/TT-BTC.

With the material overage after export production, if the using purpose is changed with the quality, and commercial value is no longer the same, the dutiable value will be determined based on the actual price at the time of changing using purpose in accordance with the Clause 2, Article 17 of Circular No. 39/2015/TT-BTC

The General Department of Vietnam Customs stressed that the Customs authorities would conduct inspection and handle inspection results in accordance with the provisions of the Customs Law and Decree No. 08/2015/ND-CP, which was amended and supplemented in the Decree No. 59 / 2018/ND-CP and the Circular 39/2018/TT-BTC amending and supplementing a number of articles of the Circular 38/2015/TT-BTC and the Circular No. 39/2015/TT-BTC of Ministry of Finance.