Is a bonded warehouse considered a tax-suspension warehouse in Vietnam? What are conditions for establishing a bonded warehouse in Vietnam?

Is a bonded warehouse considered a tax-suspension warehouse in Vietnam?

Based on Article 4 of the Customs Law 2014, the regulations are as follows:

Interpretation of terms

In this Law, the following terms are understood as follows:

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9. A tax-suspension warehouse is a warehouse used to store imported materials and supplies that have been cleared but not yet taxed for the production of export goods of the tax-suspension warehouse owner.

10. A bonded warehouse is an area of warehouse, yard for storing goods that have cleared customs procedures, waiting for export; goods from abroad sent in waiting for export abroad or import into Vietnam.

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In comparison to the above regulations, a bonded warehouse is an area of warehouse, yard for storing goods that have cleared customs procedures, waiting for export, while a tax-suspension warehouse is used to store imported materials and supplies that have been cleared but not yet taxed.

Thus, based on the defined concepts, a bonded warehouse and a tax-suspension warehouse are different.

Is a bonded warehouse considered a tax-suspension warehouse in Vietnam? What are conditions for establishing a bonded warehouse in Vietnam? (Image from the Internet)

What are conditions for establishing a tax-suspension warehouse in Vietnam?

Based on Clause 2, Article 62 of the Customs Law 2014, the regulations are as follows:

Conditions for establishing a bonded warehouse, tax-suspension warehouse, and location for assembling goods

1. Bonded warehouses and locations for assembling goods are established in locations where the following areas are present:

a) Seaports, international civil airports, export, and import ports established inland, land border gates, international railway stations;

b) Industrial zones, hi-tech zones, non-tariff zones, and other areas as prescribed by law.

2. A tax-suspension warehouse is established within the factory area of an enterprise producing export goods.

3. The Director General of the General Department of Customs decides on the establishment, extension of operational time, suspension, and termination of the operation of bonded warehouses, tax-suspension warehouses, and locations for assembling goods.

4. The Government of Vietnam regulates in detail the establishment and operation of bonded warehouses, tax-suspension warehouses, and locations for assembling goods.

A tax-suspension warehouse is established within the factory area of an enterprise producing export goods.

What are regulations on the rights and responsibilities of the owner of a tax-suspension warehouse in Vietnam?

Based on Article 63 of the Customs Law 2014, the regulations are as follows:

Rights and responsibilities of bonded warehouse operators, operators at locations for assembling goods, logistics service providers, goods owners, tax-suspension warehouse owners

1. Bonded warehouse operators and goods owners sending goods to bonded warehouses have the following rights and responsibilities:

a) Bonded warehouse operators can execute contracts for receiving goods sent to bonded warehouses; goods can be moved within bonded warehouses as agreed with the goods owner.

Bonded warehouse operators are responsible for fulfilling the customs authority's requirements for goods inspection. Every 3 months, bonded warehouse operators must report in writing to the Customs Department managing the bonded warehouse about the status of goods and the operating conditions of the bonded warehouse;

b) Goods owners can reinforce packaging, classify goods, take samples, and perform other tasks under the supervision of customs officials; goods ownership transfer is permitted. Transferring goods from one bonded warehouse to another requires prior written consent from the Head of the Customs Department managing the bonded warehouse where those goods are stored.

2. tax-suspension warehouse owners have the following rights and responsibilities:

a) Store goods that are imported materials and supplies for the production of export goods;

b) Arrange, repack, and move goods within the tax-suspension warehouse;

c) Notify customs authorities in advance of the planned usage of materials and supplies from the tax-suspension warehouse for production;

d) Every 3 months, notify in writing the Customs Department managing the tax-suspension warehouse about the status of goods and the operating conditions of the tax-suspension warehouse;

đ) No later than January 31 each year, compile a summary of import customs declarations and quantities of materials and supplies brought into the tax-suspension warehouse, and a summary of export customs declarations and quantities of goods exported in the previous year and send to the Customs Department managing the tax-suspension warehouse.

3. Goods owners, operators at locations for assembling goods, and logistics service providers have the following rights and responsibilities:

a) Goods owners can transfer ownership, pack, repack, reinforce, repair, preserve goods;

b) Logistics service providers can split and recombine shipments from multiple goods owners transported in one container, arrange, and rearrange stored goods;

c) Every 3 months, operators at locations for assembling goods must notify in writing the Customs Department managing the assembling location about the status of goods and the operating conditions of the business at the assembling location.

4. Bonded warehouse operators, operators at locations for assembling goods, tax-suspension warehouse owners must adhere to accounting, statistical procedures, equip facilities, technical equipment to manage goods electronically connected to customs authorities to perform customs inspection and supervision according to this Law's regulations.

5. Bonded warehouse operators, operators at locations for assembling goods, logistics service providers, tax-suspension warehouse owners, and goods owners must comply with legal provisions regarding the operation of bonded warehouses, tax-suspension warehouses, and locations for assembling goods.

Thus, the rights and responsibilities of the tax-suspension warehouse owner are as follows:

*Regarding rights

- Store goods that are imported materials and supplies for the production of export goods;

- Arrange, repack, and move goods within the tax-suspension warehouse;

*Regarding responsibilities

- Notify customs authorities in advance of the planned usage of materials and supplies from the tax-suspension warehouse for production;

- Every 3 months, notify in writing the Customs Department managing the tax-suspension warehouse about the status of goods and the operating conditions of the tax-suspension warehouse;

- No later than January 31 each year, compile a summary of import customs declarations and quantities of materials and supplies brought into the tax-suspension warehouse, and a summary of export customs declarations and quantities of goods exported in the previous year and send to the Customs Department managing the tax-suspension warehouse.