Are equipment imported for wastewater treatment from Japan exempt from duty in Vietnam?

Are equipment imported for wastewater treatment from Japan exempt from duty in Vietnam?

Pursuant to Clause 19, Article 16 of the Law on Import Tax and Export Tax 2016 provides for duty exemption as follows:

19. Exports and imports serving environmental protection, including:

a) Imported machinery, equipment, equipment, tools, supplies that cannot be domestically produced serving collection, transport, treatment wastewater, wastes, exhaust gases, environmental monitoring and analysis, production of renewable energy, treatment of environmental pollution, response to environmental emergencies;

b) Exports that are products of waste recycling and treatment.

Thus, in case the equipment and machinery that you import from Japan to treat wastewater in production activities, these equipment and machinery have not been produced domestically, they will be exempted from import tax upon importation in accordance with the above-mentioned provisions in Vietnam.

What are procedures for granting duty exemption on goods imported for environmental protection purposes in Vietnam?

Pursuant to Clause 4, Article 25 of Decree 134/2016/ND-CP stipulating exemption of duties on goods imported for environmental protection purposes as follows:

4. Procedures for granting duty exemption are specified in Article 31 of this Decree.

According to Clause 3, Article 31 of Decree 134/2016/ND-CP as amended by Clause 14, Article 1 of Decree 18/2021/ND-CP, the duty exemption procedures are as follows:

3. Procedures for granting duty exemption:

c) Electronic data processing system shall deduct the quantity of imports or exports written on the duty-free list.

In case of submission of a physical duty-free list, the customs authority shall update and deduct the quantity of goods exported/imported accordingly.

In case of import of a duty-free combination or assembly line, the taxpayer shall follow customs procedures at the customs authority responsible for the area where the equipment is installed. When registering the customs declaration, the taxpayer shall provide details about the goods on the declaration. If details about the goods cannot be provided, the taxpayer shall prepare a list of imports according to Form No. 04 in Appendix VIIa hereof via the electronic data processing system or according to Form No. 15 in Appendix VII hereof and enclose it with the customs declaration. Within 15 days from the day on which the last shipment of the combination or assembly line is imported, the taxpayer shall register the duty-free list with the customs authority according to Form No. 05 in Appendix VIIa hereof via the electronic data processing system or according to Form No. 16 of Appendix VII hereof.

Best Regards!