Cases That Require Registration of Duty-Free Import and Export Goods Lists

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The editorial board of LAW SECRETARY responds to this issue as follows:

According to the provisions of Clause 1, Article 104 of Circular 38/2015/TT-BTC, the cases that must register the List of Export and Import Tax-Free Goods include:

1. Imported goods to create fixed assets of investment projects in the border-gate economic zone (except for non-tariff zones) that are exempt from import duties, including:

- Equipment, machinery;- Special-use transportation means in the technological line not yet produced domestically; transportation means for picking up workers, including cars with 24 seats or more and watercraft;- Components, parts, spare parts, jigs, molds, and accompanying accessories to assemble synchronously with the said equipment, machinery, and special-use transportation means;- Raw materials and supplies that are not yet produced domestically are used to manufacture equipment and machinery in the technological line or to manufacture components, details, spare parts, jigs, molds, and accompanying accessories to assemble synchronously with the said equipment and machinery;- Construction materials that are not yet produced domestically.

2. Goods are construction materials from within Vietnam or from other functional areas in the border-gate economic zone brought into the non-tariff area within the border-gate economic zone to construct, repair, and maintain technical and social infrastructure in the non-tariff area that are exempt from export duties. For goods and services originating from within Vietnam that are exported into and only used in the Lao Bao special economic-commerce zone, Quang Tri Province, and the Cau Treo international border-gate economic zone, Ha Tinh Province, export duties are exempted.

3. Raw materials, supplies, and components that are not yet produced domestically and imported for production in investment projects in the border-gate economic zone (except for projects producing products subject to special consumption tax, electronic products, electric refrigeration products, and other items as decided by the Prime Minister) are exempt from import duties for 5 years from the start of production.

4. Imported goods to create fixed assets of investment projects in areas eligible for import duty incentives as stipulated in Appendix I issued under Decree 87/2010/ND-CP or areas eligible for import duty incentives as provided in relevant laws stipulated in the List of areas eligible for corporate income tax incentives issued under Decree 218/2013/ND-CP, Decree 91/2014/ND-CP amending and supplementing some articles of decrees on taxes and Decree 53/2010/ND-CP.

5. Plant seeds and livestock breeds permitted to be imported for investment projects in agriculture, forestry, and fisheries.

6. Imported goods are equipment specified in Appendix II issued under Decree 87/2010/ND-CP to create fixed assets of projects eligible for import duty incentives, projects funded by official development assistance (ODA) for investment in hotels, offices, rental apartments, houses, shopping centers, technical services, supermarkets, golf courses, tourist areas, sports, amusement parks, medical treatment facilities, education, culture, finance, banking, insurance, auditing, consulting services.

7. Imported goods for petroleum activities.

8. Goods of shipbuilding facilities are exempted from export duties on exported ships and import duties on:

- Machinery and equipment to create fixed assets meeting the conditions stated in Point a, Clause 7, Article 103 of Circular 38;- Transportation means in the technological line to create fixed assets.- Raw materials, supplies, and semi-finished products for shipbuilding that are not yet produced domestically.

9. Imported raw materials and supplies directly serving the production of software products that are not yet produced domestically.

10. Imported goods for direct use in scientific research and technology development activities, including machinery, equipment, spare parts, supplies, transportation means that are not yet produced domestically, technology not yet created domestically; documentation, books, newspapers, scientific journals, and electronic science and technology information sources.

11. Raw materials, supplies, and components that are not yet produced domestically and imported for the production of investment projects in:

- Areas of special investment encouragement (except for projects producing and assembling automobiles, motorcycles, air conditioners, heaters, refrigerators, washing machines, electric fans, dishwashers, recorders, sound systems, electric irons, kettles, hair dryers, hand dryers, alcohol, beer, tobacco, and items as decided by the Prime Minister that are not eligible for import duty exemption);- Areas of particularly difficult socio-economic conditions (except for projects producing and assembling automobiles, motorcycles, air conditioners, heaters, refrigerators, washing machines, electric fans, dishwashers, recorders, sound systems, electric irons, kettles, hair dryers, hand dryers, alcohol, beer, tobacco, and items as decided by the Prime Minister that are not eligible for import duty exemption).

12. Goods produced, processed, reprocessed, and assembled in the non-tariff zone using no imported raw materials or components from abroad when imported into the domestic market are exempt from import duties. If imported raw materials or components from abroad are used, import duties must be paid when imported into the domestic market, and the basis and method of calculating import duties shall follow the instructions in Clause 2, Article 40 of Circular 38.

13. Goods that are raw materials, supplies, and components not yet produced domestically, imported to serve the production of investment projects in the border-gate economic zone are exempt from duties as stipulated by the Prime Minister regarding financial policies for the border-gate economic zone and guiding documents.

14. Goods exempt from import duties under international treaties.

Note: According to the current regulations, the List of Export and Import Tax-Free Goods must match the industry, investment field, goals, scale, and capacity of the project, and must be created once for the entire project, or created for each project phase, each construction item of the project (if the Investment Certificate issued by the competent authority, or the investment feasibility study, technical-economic documents, etc., state that the project is implemented in phases or by construction items), or created for each system, production line if the goods are a system of combined production lines of equipment and machinery.

In case the registered List for the entire project, each phase, each item, each construction, each system, or production line is incorrect or needs changes, the customs declarant is allowed to amend it on condition of submitting documents and papers to the customs office before importing goods to prove that the additions or adjustments match the project's needs.

Nguyen Trinh

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