Guidance on In-place Import Tax Refund (A12) for Production of Export Goods
General Department of Customs' Opinion on the Refund of Locally Imported Raw Materials (A12) for Export Production
According to Official Dispatch No. 3193/TCHQ-TXNK in 2023, the General Department of Customs has the following opinion on the refund of locally imported raw materials (A12) for export production:
In the case where enterprises locally import raw materials for production and have paid taxes on the goods that have been put into the production of export goods and have actually exported the products overseas or to the non-tariff areas, a refund of the paid import tax will be granted according to the regulations in Article 36 of Decree No. 134/2016/ND-CP. There are no regulations for a tax refund in cases where enterprises locally import raw materials to produce semi-finished products, deliver semi-finished products to other enterprises for processing, finishing, and then receive the complete products for export overseas.
Guidance on the refund of locally imported raw materials (A12) for export production
On What Basis is the Refundable Goods Determined?
Based on the provisions of Clause 3, Article 36 of Decree No. 134/2016/ND-CP, the regulations are as follows:
Refund of Tax for Imported Goods Used for Production and Business but the Products Have Been Exported
1. Taxpayers who have paid import tax on goods imported for production and business but have put them into the production of export goods and have exported the products overseas or to the non-tariff areas, will be refunded the paid import tax.
2. Imported goods eligible for tax refund include:
a) Raw materials, supplies (including materials for packaging or packaging for export products), components, semi-finished products directly imported to constitute export products or directly involved in the production process of export goods but not directly transformed into goods;
b) Finished products imported to be assembled into export products or to be packed together into a synchronized commodity with export products;
c) Components, spare parts imported for warranty of export products.
3. Basis for determining refundable goods:
a) Organizations and individuals producing export goods must have an export goods production facility in the territory of Vietnam; have ownership or use rights over machinery and equipment at the production facility that correspond to the imported raw materials, supplies, and components used for the production of export goods;
b) The value or quantity of imported raw materials, supplies, and components eligible for tax refund is the actual value or quantity of imported raw materials, supplies, and components used to produce the actual exported products;
c) Exported products must undergo customs procedures under the export production type;
d) Organizations and individuals directly or entrusted with the import of goods and the export of products.
Taxpayers are responsible for accurately and honestly declaring in the customs declaration about the export products produced from previously imported goods.
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Based on the following criteria to determine the refundable goods:
- Organizations and individuals producing export goods must have an export production facility in the territory of Vietnam; possess ownership or use rights over machinery and equipment at the production facility appropriate for the imported raw materials, supplies, and components used for export product production.
- The value or quantity of imported raw materials, supplies, and components eligible for tax refund is the actual value or quantity of imported raw materials, supplies, and components used to produce the actual exported products.
- Exported products must undergo customs procedures under the export production type.
- Organizations and individuals directly or entrusted with the import of goods and the export of products.
Taxpayers are responsible for accurately and honestly declaring in the customs declaration about the export products produced from previously imported goods.
What Does the Tax Refund Dossier for Imported Goods Include?
Based on the provisions of Clause 5, Article 36 of Decree No. 134/2016/ND-CP as amended by Clause 18, Article 1 of Decree No. 18/2021/ND-CP and point d, Clause 20, Article 1 of Decree No. 18/2021/ND-CP, the tax refund dossier for imported goods includes:
- Official Dispatch requesting export tax refund, import tax refund for exported or imported goods sent via the electronic data processing system of customs authorities according to the information criteria in Form No. 01 Annex VIIa of Decree No. 18/2021/ND-CP or the official dispatch requesting export, import tax refund in Form No. 09 Annex VII issued together with Decree No. 18/2021/ND-CP: 01 original.
- Payment certificate for exported, imported goods in case of payment: 01 copy.
- Export, import contract and invoice under the export, import contract for purchase and sale of goods; entrusted export, import contract if it is an entrusted export, import form: 01 copy.
Taxpayers declare on the export customs declaration information about the contract number, date, and partner name of the goods buyer.
- Report on the tax calculation of imported raw materials, supplies, and components (according to Form No. 10 in the Annex VII issued with the Decree).
The amount of import tax on raw materials, supplies, and components eligible for tax refund must correspond to the quantity and type of raw materials, supplies, and components actually used for the production of actual exported products.
- Processing contract signed with foreign customers (in case of importing raw materials, supplies, and components for the production of products, then using these products for processing of export goods under a processing contract with foreign customers): submit 01 copy.
- Documents proving the existence of a production facility in the territory of Vietnam; ownership or use rights over machinery and equipment at the production facility appropriate for the imported raw materials, supplies, and components used for the production of export goods: 01 copy.
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