What is the time limit for tax exemption for importation of raw materials, supplies, and components for manufacturing and assembling medical equipment in Vietnam?

In which cases are export and import duties exempted in Vietnam?

According to Article 16 of the Export and Import Duties Law 2016, cases eligible for export and import duties exemptions include:

(1). Goods exported, imported by foreign organizations or individuals entitled to privileges and immunities in Vietnam within the limits in accordance with international treaties to which the Socialist Republic of Vietnam is a signatory; goods within the tax-free baggage allowance of outbound and inbound passengers; goods imported for sale at duty-free shops.

(2). Moving assets, gifts within the limits given by foreign organizations and individuals to Vietnamese organizations and individuals or vice versa.

Moving assets, gifts exceeding the tax-free limit must pay tax on the exceeding part, except in cases where the recipient unit is an agency or organization financed by the state budget and is authorized to accept, or in cases for humanitarian or charitable purposes.

(3). Goods traded or exchanged across borders by border residents within the list and limits for production and consumption by border residents.

Goods purchased or transported within the limit but not used for production or consumption by border residents, and goods exported and imported by foreign traders permitted to do business in border markets must pay tax.

(4). Goods exempted from export and import duties according to international treaties to which the Socialist Republic of Vietnam is a signatory.

(5). Goods with value or tax amount payable below the minimum threshold.

(6). Imported raw materials, supplies, and components for the processing of export products; finished products imported for incorporation into processed products; processed products for export.

Processed export products made from domestically sourced raw materials subject to export tax are not exempt from tax on the value of domestically sourced raw materials.

Goods exported for processing and then re-imported are exempt from export and import duties on the value of the exported raw materials constituting the processed products. However, goods exported for processing and then re-imported are not exempt if they are natural resources or minerals, or products whose total value of natural resources and minerals plus energy costs account for 51% or more of the product cost.

(7). Raw materials, supplies, components imported for the production of export goods.

(8). Goods produced, processed, recycled, or assembled in free trade zones not using imported raw materials or components from abroad when imported into the domestic market.

(9). Goods temporarily imported for re-export or temporarily exported for re-import within a certain period, including:

- Goods temporarily imported for re-export, temporarily exported for re-import for organizing or participating in fairs, exhibitions, product launches, sports, cultural, artistic events, or other events; machinery, equipment temporarily imported for re-export for testing, research, and development of products; machinery, equipment, professional tools temporarily imported for re-export, temporarily exported for re-import to serve specific work within a certain period or serve processing for foreign traders, except for machinery, equipment, tools, transport means of organizations and individuals allowed to temporarily import for re-export to implement investment projects, construction, installation works, and production service;

- Machinery, equipment, components, and spare parts temporarily imported for replacing, repairing foreign ships and aircraft or temporarily exported for replacing, repairing Vietnamese ships and aircraft abroad; goods temporarily imported for re-export to supply foreign ships and aircraft anchored at Vietnamese ports;

- Goods temporarily imported for re-export or temporarily exported for re-import for warranty, repair, and replacement;

- Rotating means temporarily imported for re-export or temporarily exported for re-import for containing export and import goods;

- Goods for temporary import for re-export trading within the temporary import period (including the extension period) guaranteed by credit institutions or paid a deposit equivalent to the import tax amount of the temporarily imported goods.

(10). Non-commercial goods in the following cases: samples; photographs, films, models replacing samples; small quantity advertising brochures.

(11). Imported goods to create fixed assets for investment incentive beneficiaries under the Investment Law, including:

- Machinery, equipment; components, details, detachable parts, spare parts for complete assembly or combined use with machinery and equipment; raw materials, supplies used to manufacture machinery, equipment or manufacture components, details, detachable parts, spare parts of machinery and equipment;

- Special-use transport vehicles in technology lines used directly for production activities of projects;

- Construction materials unavailable domestically.

Import tax exemption for goods imported as prescribed in this clause applies to both newly investing projects and expanding investment projects.

(12). Plant varieties; animal breeds; fertilizers, pesticides not produced domestically, necessary for import as regulated by competent state management agencies.

(13). Raw materials, supplies, and components not produced domestically imported for production projects on the list of industries, special investment incentives, or areas with special socio-economic conditions according to investment law, high-tech enterprises, science and technology enterprises, science and technology organizations eligible for import tax exemption for a period of five years from the start of production.

Import tax exemption as prescribed in this clause does not apply to mineral exploitation projects; projects that produce products where the total value of natural resources and minerals plus energy costs accounts for 51% or more of product cost; projects producing, trading in goods, and services subject to special consumption tax.

(14). Raw materials, supplies, and components not produced domestically imported for production, assembly of prioritized medical equipment research, and manufacture projects are exempted from import tax for a period of five years from the start of production.

(15). Imported goods to serve petroleum activities include:

- Machinery, equipment, spare parts, special-use transport vehicles necessary for petroleum activities, including temporary import for re-export;

- Components, details, detachable parts, spare parts for complete assembly or combined use with machinery, equipment; raw materials, supplies used to manufacture machinery and equipment or manufacture components, details, detachable parts, spare parts of machinery and equipment necessary for petroleum activities;

- Supplies necessary for petroleum activities not produced domestically.

(16). Shipbuilding projects on the list of industries, subject to investment incentives according to investment law, are duty-free for:

- Imported goods to create fixed assets of the shipbuilding facility, including: machinery, equipment; components, details, detachable parts, and spare parts for complete assembly or combined use with machinery and equipment; raw materials, supplies used to manufacture machinery and equipment or manufacture components, details, detachable parts, spare parts of machinery and equipment; transport vehicles in technology lines directly serving the shipbuilding activity; construction materials unavailable domestically;

- Imported goods are machinery, equipment, raw materials, supplies, components, semi-finished products not produced domestically for shipbuilding;

- Exported ships.

(17). Machinery, equipment, raw materials, supplies, components, detachable parts, and spare parts imported for printing and minting money activities.

(18). Imported goods are raw materials, supplies, components not produced domestically serving directly for producing information technology products, digital content, software.

(19). Exported and imported goods to protect the environment, including:

- Machinery, equipment, means, tools, and specialized supplies imported domestically not produced to collect, transport, treat, process wastewater, waste, exhaust gases, environmental monitoring, and analysis; renewable energy production; environmental pollution treatment, responding to environmental incidents;

- Exported products produced from waste recycling and processing activities.

(20). Specialized imported goods from abroad not produced domestically serving directly for education.

(21). Imported goods are machinery, equipment, spare parts, specialized supplies not produced domestically, documents, scientific journals used directly for scientific research, technology development, technological incubation, science and technology enterprise incubation, and technological innovation.

(22). Specialized imported goods serving directly for security and defense, including special-use transport vehicles not produced domestically.

(23). Exported and imported goods to ensure social security, overcome consequences of natural disasters, catastrophes, epidemics, and other special cases.

What is the time limit for tax exemption for importation of raw materials, supplies, and components for manufacturing and assembling medical equipment in Vietnam?​ (Image from the Internet)

What is the time limit for tax exemption for importation of raw materials, supplies, and components for manufacturing and assembling medical equipment in Vietnam?

According to Article 23 of Decree 134/2016/ND-CP guiding the Export and Import Duties Law:

Tax exemption for importation of raw materials, supplies, and components for manufacturing and assembling medical equipment

1. Raw materials, supplies, and components not produced domestically imported for producing and assembling medical equipment of prioritized research and manufacturing projects are exempted from import tax for five years from the beginning of production according to Clause 14, Article 16 of the Export and Import Duties Law.

The list of medical equipment prioritized for research and manufacture is specified in Appendix VI issued with this Decree.

2. The start of production, used as the basis for the five-year import tax exemption period stipulated in Clause 1 of this Article, is the actual date of officially commencing production activities (excluding trial production time).

The taxpayer self-declares and takes responsibility for the actual date of official production commencement and notifies the customs authority before processing customs procedures at the customs office receiving the tax exemption notification list.

3. The basis for determining goods not produced domestically is according to the regulations of the Ministry of Planning and Investment.

4. The tax exemption dossier and procedures are implemented according to the provisions of Article 30 and Article 31 of this Decree.

The time limit for tax exemption for importation of raw materials, supplies, and components for manufacturing and assembling medical equipment of prioritized research and manufacturing projects in Vietnam is five years.

What documents are included in the application for tax exemption for importation of raw materials, supplies, and components for manufacturing and assembling medical equipment in Vietnam?

According to Clause 6, Article 5 of Decree 134/2016/ND-CP (amended by Clause 2, Article 1 of Decree 18/2021/ND-CP), the application for tax exemption for importation of raw materials, supplies, and components for manufacturing and assembling medical equipment in Vietnam includes:

[1] Customs dossier according to customs law regulations, except in cases of purchasing duty-free goods at duty-free shops;

[2] The tax exemption norm book according to Clause 8, Article 5 of Decree 134/2016/ND-CP: 01 photocopy, except where the tax exemption norm book has been updated into the National Single Window Portal;

[3] Documents proving completion of re-export, destruction, or transfer in cases specified in Clause 5, Article 5 of Decree 134/2016/ND-CP: 01 photocopy;

[4] Certification from the Ministry of Foreign Affairs in case of importing goods specified in Clause 2, Clause 3, Article 5 of Decree 134/2016/ND-CP: 01 photocopy;

[5] Decision on tax exemption by the Prime Minister for goods import as specified in Clause 4, Article 5 of Decree 134/2016/ND-CP: 01 photocopy.