Where is a tax-suspension warehouse established in Vietnam?

Where is a tax-suspension warehouse established?

A tax-suspension warehouse is a warehouse used to store imported materials and supplies that have been cleared through customs but for which taxes have not yet been paid, for the production of export goods of the tax-suspension warehouse owner. (Clause 9, Article 4 of the Customs Law 2014).

Based on Article 62 of the Customs Law 2014 stipulating the conditions for establishing tax-suspension warehouses, tax-suspension warehouses, and locations for gathering loose goods, as follows:

Conditions for establishing tax-suspension warehouses, tax-suspension warehouses, and locations for gathering loose goods

*1. tax-suspension warehouses and locations for gathering loose goods are established in areas with the following:

a) Seaports, international civil airports, inland cargo export and import ports, overland border gates, international intermodal railway terminals;

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

2. tax-suspension warehouses are established within the premises of factories producing export goods.

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

4. The Government of Vietnam stipulates in detail the establishment and operation of tax-suspension warehouses, tax-suspension warehouses, and locations for gathering loose goods.

Thus, according to the above regulation, it can be seen that a tax-suspension warehouse is established within the premises of a factory producing export goods.

Where is a tax-suspension warehouse established in Vietnam? (Image from the Internet)

Can a tax-suspension warehouse be used as a location for customs inspection in Vietnam?

Based on Clause 3, Article 22 of the Customs Law 2014 stipulating the locations for customs procedures as follows:

Locations for customs procedures

*1. Locations for customs procedures are where the customs authority receives, registers, and inspects customs dossiers, and physically inspects goods and means of transport.

2. The locations for receiving, registering, and inspecting customs dossiers are the headquarters of the Customs Department and the headquarters of the Customs Branch.

3. The locations for physical inspection of goods include:

a) Inspection spots at overland border gates, international intermodal railway terminals, international civil airports; international post offices; seaports, inland waterway ports with export, import, exit, entry, transit activities; inland cargo export and import ports;

b) Headquarters of the Customs Branch;

c) Centralized inspection locations decided by the Director-General of the General Department of Customs;

d) Inspection spots at production facilities, construction sites; locations of fairs, exhibitions;

dd) Inspection spots at the locations of tax-suspension warehouses, tax-suspension warehouses, locations for gathering loose goods;

e) Joint inspection spots between Vietnam Customs and neighboring country customs at overland border gates;

g) Other locations decided by the Director-General of the General Department of Customs in necessary cases.

...

Thus, it can be seen that one of the locations for the physical inspection of goods can entirely use a tax-suspension warehouse as a location for customs inspection.

How long can goods be stored in a tax-suspension warehouse in Vietnam?

Based on Article 61 of the Customs Law 2014 stipulating the storage duration of goods in tax-suspension warehouses, tax-suspension warehouses, and locations for gathering loose goods as follows:

Storage duration of goods in tax-suspension warehouses, tax-suspension warehouses, and locations for gathering loose goods

*1. Goods stored in a tax-suspension warehouse are kept for no more than 12 months from the date they are brought into the warehouse; in case of a legitimate reason, the head of the Customs Department managing the tax-suspension warehouse may extend the period once for no more than 12 months.

2. Materials and supplies stored in a tax-suspension warehouse for the production of export goods are kept for no more than 12 months from the date they are brought into the warehouse; in case of a legitimate reason according to the production cycle requirement, the head of the Customs Branch managing the tax-suspension warehouse may extend. The extension period shall align with the production cycle.

3. Goods brought into the location for gathering loose goods include imported goods that have not undergone customs procedures, exported goods that have completed customs procedures, or those that have registered customs declarations but the physical inspection of goods will be carried out at the location for gathering loose goods.

Goods are kept at the location for gathering loose goods for no more than 90 days from the date they are brought into the location; in case of a legitimate reason, the head of the Customs Branch managing the location for gathering loose goods may extend the period once for no more than 90 days.

Thus, according to the above regulation, goods stored in a tax-suspension warehouse can be kept for no longer than 12 months.

In the case of materials and supplies stored in a tax-suspension warehouse for the production of export goods for no longer than 12 months from the date they are brought into the warehouse;

In case of a legitimate reason according to the production cycle requirement, the head of the Customs Branch managing the tax-suspension warehouse may extend. The extension period shall align with the production cycle.