What is a bonded warehouse in Vietnam? Are imports from a bonded warehouse subject to import-export duties?

What is a bonded warehouse in Vietnam?

Based on Article 4 of the Customs Law 2014 as stipulated:

Terminology Explanation

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 raw materials and materials that have been cleared but have not yet paid duties for the production of export goods of the tax-suspension warehouse owner.

10. A bonded warehouse is an area, yard, or warehouse where goods that have completed customs procedures are stored for future export; goods sent from overseas for storage pending export abroad or import into Vietnam.

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Accordingly, by the above regulation, a bonded warehouse is an area, yard, or warehouse where goods that have completed customs procedures are stored pending export;

Additionally, a bonded warehouse is also used to store goods sent from overseas for storage pending export abroad or import into Vietnam.

What is a bonded warehouse in Vietnam? Are imports from a bonded warehouse subject to import-export duties? (Image from the Internet)

Are imports from a bonded warehouse subject to import-export duties in Vietnam?

Based on Article 2 of Decree 134/2016/ND-CP, stipulating on taxable objects as follows:

Taxable Objects

1. Exported and imports through Vietnamese border gates, borders.

2. Goods exported from the domestic market to export processing enterprises, export processing zones, tax-suspension warehouses, bonded warehouses, and other tax-free zones compliant with the provisions at Clause 1, Article 4 of the Export and Import Tax Law; imports from export processing enterprises, export processing zones, tax-suspension warehouses, bonded warehouses and other tax-free zones compliant with the provisions at Clause 1, Article 4 of the Export and Import Tax Law into the domestic market.

3. Goods exported, imported on the spot as regulated in Clause 3, Article 2 of the Export and Import Tax Law, implemented according to the regulation in Decree No. 08/2015/ND-CP dated January 21, 2015, of the Government of Vietnam providing detailed regulations and measures to implement the Customs Law on customs procedures, inspection, supervision, and control.

4. Goods of export processing enterprises exercising export rights, import rights, and distribution rights as stipulated in Clause 3, Article 2 of the Export and Import Tax Law, are goods that export processing enterprises export and import to exercise export, import rights as stipulated by commercial law, investment law.

imports from a bonded warehouse that complies with the provision at Clause 1, Article 4 of the Export and Import Tax Law 2016 into the domestic market will be subject to import-export duties.

To be specific: Clause 1, Article 4 of the Export and Import Tax Law 2016 stipulates as follows:

- A non-tariff zone is an economic area within the territory of Vietnam, established under the law, having defined geographical boundaries, separated from the outside area by hard barriers, ensuring conditions for customs inspection, supervision, control by customs authorities, and other related agencies to the export and import of goods and means, passengers exiting and entering; the trade, exchange of goods between the non-tariff zone and the outside is an export-import relationship.

What are the rights and obligations of enterprises operating bonded warehouses in Vietnam?

Based on Article 63 of the Customs Law 2014 stipulating the rights and obligations of enterprises operating bonded warehouses as follows:

- Enterprises operating bonded warehouses and owners of goods sent to bonded warehouses have the following rights and obligations:

[1] Enterprises operating bonded warehouses are entitled to enter into contracts for receiving goods sent to bonded warehouses; allowed to move goods within the bonded warehouse as agreed with the goods owner.

Enterprises operating bonded warehouses are responsible for complying with the requirement for goods inspection by customs authorities. Every three months, enterprises operating bonded warehouses must notify in writing to the Customs Department managing the bonded warehouse about the status of goods and the operational situation of the bonded warehouse;

[2] Goods owners are allowed to strengthen packaging, categorize goods, take samples, and perform other tasks under the supervision of customs officials; are allowed to transfer ownership of goods. Transfer of goods from one bonded warehouse to another must be approved in writing by the head of the Customs Department managing the bonded warehouse where the goods are stored.

- Enterprises operating bonded warehouses, enterprises operating consolidated cargo stations, tax-suspension warehouse owners, are responsible for complying with policies for accounting, statistics, equipping means, and technical equipment to manage goods electronically and connecting with customs authorities to conduct customs inspection and supervision as stipulated by this Law.

- Enterprises operating bonded warehouses, enterprises operating consolidated cargo stations, service enterprises providing consolidated cargo services, tax-suspension warehouse owners, goods owners are responsible for complying with the regulations of law regarding the operation of bonded warehouses, tax-suspension warehouses, consolidated cargo stations.