Regulations on Import-Export Tax Payment for Goods from Phu Quoc Free Trade Zone Imported into the Domestic Market

03 Goods from the Phu Quoc Free Trade Zone entering domestic territory are subject to import tax (Illustrative image)

According to Circular 10/2007/TT-BTC, goods from the Free Trade Zone entering domestic territory of Vietnam are subject to import tax as follows:

- Goods originating from foreign countries are subject to import tax according to prevailing regulations.- Goods produced, processed, recycled, or assembled in the Free Trade Zone that meet the current conditions for preferential import tax policy as stipulated by the Agreement on the Common Effective Preferential Tariff Scheme (CEPT) of ASEAN countries shall be applied according to current regulations.- Goods produced, processed, recycled, or assembled in the Free Trade Zone on Phu Quoc Island that use materials or components directly imported from foreign countries (excluding goods imported from domestic Vietnam that use materials or components imported from foreign countries) when imported into domestic Vietnam are only subject to import tax on the foreign-origin materials or components incorporated into those goods.

The basis for determining the import tax payable for foreign-origin materials or components incorporated in goods imported into domestic Vietnam is: Taxable value determined according to current regulations; quantity of goods imported into domestic Vietnam; import tax rates for each type of material or component. The taxable value and tax rate are applied at the time of customs declaration for domestic import. Business organizations and individuals are responsible for registering with the Customs authority the list of goods imported to be used as materials for producing goods imported into domestic territory and the norms of materials and components used for producing imported goods before importing them into domestic Vietnam.

The value of materials and components imported incorporated into each unit of goods imported into the domestic territory is determined according to the regulations on taxable value for imported goods at the time of importing into domestic Vietnam.

For details, see Circular 10/2007/TT-BTC which became effective on March 7, 2007.

Ty Na

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