On February 05, 2007, the Ministry of Finance of Vietnam issued Circular 10/2007/TT-BTC providing guidance on financial policies and customs procedures applicable to Phu Quoc Island and the Nam An Thoi island cluster under Kien Giang Province.
03 goods imported from the Phu Quoc free trade zone into the Vietnam market apply import duty (Illustrative image)
According to Circular 10/2007/TT-BTC, the application of import duty on goods imported from the Phu Quoc free trade zone into the Vietnam market is specified as follows:
- Import duty on goods originating from foreign countries shall comply with prevailing regulations.
- Import duty on goods produced, processed, recycled, or assembled in the free trade zone and meeting the current conditions for preferential import duty stipulated by the Agreement on the Common Effective Preferential Tariff Scheme (CEPT) of ASEAN countries shall comply with the current regulations.
- For goods produced, processed, recycled, or assembled in the Phu Quoc free trade zone by using materials or components directly imported from foreign countries (excluding goods imported from the Vietnam market that use materials or components imported from foreign countries) when imported into the Vietnam market, only import duty on the foreign-origin materials or components incorporated into those goods is required.
The basis for determining the import duty payable on foreign-origin materials or components incorporated in goods imported into the Vietnam market is: Taxable value determined according to current regulations; quantity of goods imported into the Vietnam market; import duty rate for each type of material or component. The taxable value and tax rate shall follow them upon customs declaration for import into the Vietnam market. Business entities are responsible for registering with the Customs authority the list of goods as materials imported for producing goods imported into the Vietnam market and the norms of materials and components used for producing imported goods before importing them into the Vietnam market.
The value of imported materials and components incorporated into each unit of goods imported into the Vietnam market is determined according to the regulations on taxable value for imported goods upon import into the Vietnam market.
More details may be found in Circular 10/2007/TT-BTC effective on March 7, 2007.
Ty Na
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