What are the instructions for paying a deposit equivalent to duties on commercial goods temporarily imported for re-export in Vietnam?

What is the temporary import of goods for re-export in Vietnam?

According to Article 29 of the Commercial Law 2005 abolished by Clause 3 Article 112 of the Foreign Trade Management Law 2017:

Temporary import for re-export and temporary export for re-import of goods

1. Temporary import of goods for re-export means the bringing of goods into Vietnam from foreign countries or special zones locating in the Vietnamese territory, which are regarded as exclusive customs zones according to the provisions of law, with the completion of the procedures for importing such goods into Vietnam, then procedures for exporting the same goods out of Vietnam.

2. Temporary export of goods for re-import means the bringing of goods overseas or into special zones in the Vietnamese territory which are regarded as exclusive customs zones according to the provisions of law, with the completion of procedures for exporting such goods out of Vietnam, then procedures for importing the same goods back into Vietnam.

Thus, temporary import of goods for re-export means the bringing of goods into Vietnam from foreign countries or special zones located in the Vietnamese territory, which are regarded as exclusive customs zones according to the provisions of law, with the completion of the procedures for importing such goods into Vietnam, then procedures for exporting the same goods out of Vietnam.

What are the instructions for paying a deposit equivalent to duties on commercial goods temporarily imported for re-export in Vietnam? (Image from the Internet)

Are commercial goods temporarily imported for re-export in Vietnam subject to duty exemption in case a deposit has been paid?

According to Clause 9, Article 16 of the Export and Import Duty Law 2016:

Tax exemption

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9. Goods temporarily imported for re-export or goods temporarily exported for re-import within a certain period of time, including:

a) Goods temporarily imported or exported to participate in fairs, exhibitions, product introduction, sports or art events, or other events; machinery and equipment temporarily imported for re-export for testing, research and development; machinery and equipment, tools temporarily imported or exported to be used for certain period of time or serve overseas processing, except for machinery, equipment, tools, vehicles permitted to be temporarily imported too serve investment projects, construction, installation, or manufacture;

b) Machinery, equipment, components, spare parts temporarily imported for replacement or repair of foreign ships or airplanes, or temporarily exported for replacement or repair of Vietnamese ships or airplanes overseas; goods temporarily imported to supply for foreign ships or airplanes in Vietnam's ports;

c) Goods temporarily imported or exported for warranty, repair, or replacement;

d) Vehicles temporarily imported or exported to carry exports or imports;

dd) Goods that are temporarily imported for re-export by the deadline or extended deadline and a credit institution provides a guarantee or a deposit equivalent to import duties on the temporarily imported goods has been paid.

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Thus, if goods that are temporarily imported for re-export by the deadline or extended deadline and a deposit equivalent to import duties on the temporarily imported goods has been paid, they are subject to duty exemption.

What are the instructions for paying a deposit equivalent to duties on commercial goods temporarily imported for re-export in Vietnam?

According to Clause 3, Section 11 of Official Dispatch 12166/BTC-TCHQ 2016:

XI. Tax payment deadline, provision of guarantee and payment of deposit for the tax amount payable

1. Tax payment deadline referred to in Article 9 of the Law on Export and Import Duty shall be imposed on exported and imported goods subject to taxes in accordance with legislative regulations.

2. Provision of guarantee for the amount of tax imposed on exported and imported goods shall be subject to applicable regulations (notwithstanding guarantee terms and conditions).

3. Where it is necessary to make a deposit for the amount of import duty imposed on commercial goods temporarily imported for re-export by the deadline (inclusive of the extended period of time), taxpayers must make a payment of an amount equal to the amount of import duty levied on temporary imports into a deposit account of a customs authority at the State Treasury.

Return of such deposit shall be subject to regulations on return of tax amounts, late payment fees or excess fines which are set out in legislation on tax administration.

If an enterprise has not yet re-exported its commercial goods which are temporarily imported and exported after the specified period of time during which temporary import and re-export are allowed out of Vietnam, the customs authority shall transfer the amount of deposit from a deposit account of that customs authority to the state budget in accordance with applicable laws and regulations.

Thus, where it is necessary to make a deposit for the amount of import duty imposed on commercial goods temporarily imported for re-export by the deadline (inclusive of the extended period), taxpayers must make a payment of an amount equal to the amount of import duty levied on temporary imports into a deposit account of a customs authority at the State Treasury.

Return of such deposit shall be subject to regulations on return of tax amounts, late payment fees or excess fines which are set out in legislation on tax administration.

If an enterprise has not yet re-exported its commercial goods which are temporarily imported and exported after the specified period during which temporary import and re-export are allowed out of Vietnam, the customs authority shall transfer the amount of deposit from a deposit account of that customs authority to the state budget under applicable laws and regulations.