Are components and parts imported for repairing exports under warranty in Vietnam subject to import duty refund?

Are components and parts imported for repairing exports under warranty in Vietnam subject to import duty refund?

Under Article 36 of Decree No. 134/2016/ND-CP stipulating the refund of duties on goods initially imported for business operation but eventually used for the manufacture of domestic exports:

Refund of duties on goods initially imported for business operation but eventually used for manufacture of domestic exports

1. Paid import duties on goods that are initially imported for business operation but eventually used for manufacture of goods that have been exported into a foreign country or a free trade zone shall be refunded.

2. Import duties on the following imports are refundable:

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.

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The components and parts imported for repairing exports under warranty in Vietnam are subject to import duty refund.

Are components and parts imported for repairing exports under warranty in Vietnam subject to import duty refund? (Image from Internet)

Which entities are the import and export duty payers in Vietnam?

Under Article 3 of the Law on Export and Import Duties 2016, the import and export duty payers include:

- Owners of exports and imports.

- Entrusted exporters and importers.

- People entering and leaving Vietnam carrying exports or imports, sending or receiving goods through Vietnam’s border and border checkpoints.

- Taxpayers’ guarantors and other entities authorized to pay tax on behalf of taxpayers, including:

+ Customs brokerage agents in case authorized by the taxpayer to pay export and import duties;

+ Providers of postal services or international express mail services paying tax on behalf of taxpayers;

+ Credit institutions or other organizations operating under the Law on credit institutions that provide guarantee or pay tax on behalf of taxpayers;

+ People authorized by goods owners in case goods are gifts of individuals; any luggage sent before or after its owner’s arrival or departure;

+ Any branch of an enterprise authorized to pay tax on its behalf;

+ Other people authorized to pay tax on behalf of taxpayers as prescribed by law.

- Any person who purchases or transports goods within the tax-free allowance applied to border residents which are sold domestically instead of being consumed or used for manufacture; foreign traders permitted to deal in exports and imports at bordering markets as prescribed by law.

- Owners of exports or imports that are initially tax-free but then taxed.

- Other cases prescribed by law.

What is the deadline for paying import duty in Vietnam?

According to Article 9 of Law on Export and Import Duties 2016:

Tax payment deadline

1. Duties on exports and imports have to be paid before customs clearance or release as prescribed by the Law on Customs, except for the case in Clause 2 hereof.

Where a credit institution provides guarantee for the amount of tax payable, customs clearance or release shall be granted. However, late payment interest shall be paid for the period from the date of customs clearance or release to the tax payment date in accordance with the Law on Tax administration. The guarantee period shall not exceed 30 days from the day on which the customs declaration is registered.

If the taxpayer fails to pay tax and late payment interest by the end of the guarantee period, the guarantor shall fully pay tax and late payment interest on behalf of the taxpayer.

2. The taxpayer given priority as prescribed by the Law on Customs shall pay tax on the customs declarations granted customs clearance or release in the month by the 10th of the next month. If the taxpayer fails to pay tax by the aforesaid deadline, the taxpayer shall fully pay outstanding tax and late payment interest as prescribed by the Law on Tax administration.

Thus, the deadline for paying import duty is before customs clearance or release of goods according to the Law on Customs 2014.

However, if the taxpayer is given priority as prescribed by the Law on Customs, it/she/he shall pay tax on the customs declarations granted customs clearance or release in the month by the 10th of the next month.